Utah House Bill HB0394 Latest Draft

                            Enrolled Copy	H.B. 394
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Statutory Intent Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jordan D. Teuscher
Senate Sponsor: Calvin R. Musselman
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LONG TITLE
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General Description:
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This bill modifies or removes provisions relating to legislative intent and statutory
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interpretation.
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Highlighted Provisions:
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This bill:
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▸ removes certain statements of legislative intent and statutory interpretation;
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▸ restates, modifies, replaces, or recharacterizes certain provisions that are stated in the
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form of legislative intent; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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7-17-1, as enacted by Laws of Utah 1979, Chapter 124
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17-19a-206, as last amended by Laws of Utah 2023, Chapter 178
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17B-2a-1002, as enacted by Laws of Utah 2007, Chapter 329
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19-3-302, as last amended by Laws of Utah 2011, Chapter 297
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19-3-318, as enacted by Laws of Utah 1999, Chapter 190
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26B-9-202, as last amended by Laws of Utah 2024, Chapter 366
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31A-22-305, as last amended by Laws of Utah 2024, Chapter 158
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31A-22-305.3, as last amended by Laws of Utah 2024, Chapter 158
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32B-14-101, as enacted by Laws of Utah 2010, Chapter 276
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35A-8-301, as last amended by Laws of Utah 2021, Chapter 339 H.B. 394	Enrolled Copy
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35A-8-310, as enacted by Laws of Utah 2021, Chapter 339 and further amended by
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Revisor Instructions, Laws of Utah 2021, Chapter 339
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35A-8-1602, as last amended by Laws of Utah 2013, Chapter 400
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35A-8-1703, as last amended by Laws of Utah 2019, Chapter 136
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35A-8-1704, as last amended by Laws of Utah 2019, Chapter 136
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53B-9-101, as last amended by Laws of Utah 2021, Chapter 203
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53E-4-301.5, as last amended by Laws of Utah 2019, Chapter 186
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54-5-1.5, as last amended by Laws of Utah 2023, Chapter 23
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59-12-202, as last amended by Laws of Utah 1994, Chapter 259
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59-12-701, as last amended by Laws of Utah 2020, Chapter 419
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59-12-1401, as last amended by Laws of Utah 2004, Chapter 317
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63A-3-104, as last amended by Laws of Utah 2016, Chapter 298
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63N-1a-305, as renumbered and amended by Laws of Utah 2021, Chapter 282
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64-9b-5, as last amended by Laws of Utah 1997, Chapter 158
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64-13a-2, as enacted by Laws of Utah 1985, Chapter 201
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72-5-201, as renumbered and amended by Laws of Utah 1998, Chapter 270
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73-10-1, as last amended by Laws of Utah 2020, Chapter 354
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77-37-1, as enacted by Laws of Utah 1987, Chapter 194
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78B-6-102, as last amended by Laws of Utah 2019, Chapter 335
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REPEALS:
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10-1-101, as enacted by Laws of Utah 1977, Chapter 48
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10-6-102, as enacted by Laws of Utah 1979, Chapter 26
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26B-5-502, as renumbered and amended by Laws of Utah 2023, Chapter 308
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26B-9-102, as renumbered and amended by Laws of Utah 2023, Chapter 305
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34A-6-102, as renumbered and amended by Laws of Utah 1997, Chapter 375
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35A-8-1701, as last amended by Laws of Utah 2019, Chapter 136
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53B-8a-114, as enacted by Laws of Utah 1996, Second Special Session, Chapters 4, 4
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63G-2-102, as renumbered and amended by Laws of Utah 2008, Chapter 382
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67-16-2, as last amended by Laws of Utah 1989, Chapter 147
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Be it enacted by the Legislature of the state of Utah:
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Section 1.  Section 7-17-1 is amended to read:
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7-17-1 . Effect of act.
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      [It is the intent of the Legislature that the] The provisions of this act govern the rights,
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duties and liabilities of borrowers and lenders with respect to reserve accounts established
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before and after the effective date of this act.
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Section 2.  Section 17-19a-206 is amended to read:
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17-19a-206 . Performance audit services.
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(1) In a county of the first class, the county auditor shall conduct a performance audit:
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(a) as the county auditor deems appropriate, taking into account:
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(i) the standards of the profession;
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(ii) the county auditor's professional judgment; and
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(iii) the county auditor's assessment of risk and materiality; or
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(b) as requested and engaged by the county legislative body or county executive, in
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accordance with the following:
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(i) the county legislative body or county executive shall establish the goals and nature
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of the performance audit;
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(ii) the county auditor shall conduct the audit in a manner consistent with the county
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auditor's professional judgment and statutory duties; and
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(iii) the county legislative body or county executive and the county auditor shall
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agree upon the prioritization and timing of the performance audit, with terms that
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are consistent with the county auditor's statutory duties and available resources.
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(2)(a) In a county of the second through sixth class, the county auditor shall conduct a
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performance audit under the direction and supervision of the county legislative body
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or county executive.
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(b) The county legislative body or county executive shall establish the goals and nature
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of a performance audit conducted under Subsection (2)(a).
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(3) A performance audit conducted under this section may include an assessment of the
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following:
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(a) the honesty and integrity of financial and other affairs;
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(b) the accuracy and reliability of financial and management reports;
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(c) the adequacy of financial controls to safeguard public funds;
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(d) the management and staff adherence to statute, ordinance, and policies[, and
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legislative intent];
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(e) the economy, efficiency, and effectiveness of operational performance;
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(f) the accomplishment of intended objectives; and
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(g) whether management, financial, and information systems are adequate and effective.
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Section 3.  Section 17B-2a-1002 is amended to read:
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17B-2a-1002 . Purpose of water conservancy districts.
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(1) It is the [intent of the Legislature and the ]policy of the state to:
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(a) provide for the conservation and development of the water and land resources of the
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state;
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(b) provide for the greatest beneficial use of water within the state;
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(c) control and make use of all unappropriated waters in the state and to apply those
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waters to direct and supplemental beneficial uses including domestic, manufacturing,
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irrigation, and power;
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(d) obtain from water in the state the highest duty for domestic uses and irrigation of
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lands in the state within the terms of applicable interstate compacts and other law;
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(e) cooperate with the United States and its agencies under federal reclamation or other
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laws and to construct, finance, operate, and maintain works in the state; and
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(f) promote the greater prosperity and general welfare of the people of the state by
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encouraging the organization of water conservancy districts.
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(2) The creation and operation of water conservancy districts are a public use to help
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accomplish the [intent and ]policy stated in Subsection (1) and will:
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(a) be essentially for the benefit and advantage of the people of the state;
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(b) indirectly benefit all industries of the state;
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(c) indirectly benefit the state by increasing the value of taxable property in the state;
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(d) directly benefit municipalities by providing adequate supplies of water for domestic
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use;
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(e) directly benefit lands to be irrigated or drained;
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(f) directly benefit lands now under irrigation by stabilizing the flow of water in streams
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and by increasing flow and return flow of water to those streams; and
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(g) promote the comfort, safety, and welfare of the people of the state.
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Section 4.  Section 19-3-302 is amended to read:
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19-3-302 . Legislative assertions and findings.
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(1)(a) The state[ enacts this part to prevent ] :
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(i) asserts a right and interest to prevent the placement of any high-level nuclear
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waste or greater than class C radioactive waste in Utah[.  The state also ] ; and
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(ii) recognizes that high-level nuclear waste or greater than class C radioactive waste
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may be placed within the exterior boundaries of the state, pursuant to a license
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from the federal government, or by the federal government itself, in violation of
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this state law.
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(b) Due to this possibility, the state also [enacts provisions in this part to regulate] asserts
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an interest in regulating transportation, transfer, storage, decay in storage, treatment,
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and disposal of any high-level nuclear waste and greater than class C radioactive
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waste in Utah, thereby asserting and protecting the state's interests in environmental
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and economic resources consistent with 42 U.S.C.A. Sec. 2011 et seq., Atomic
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Energy Act and 42 U.S.C.A. Sec. 10101 et seq., Nuclear Waste Policy Act, should
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the federal government decide to authorize any entity to operate, or operate itself, in
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violation of this state law.
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(2) [Neither] The state finds that the Atomic Energy Act nor the Nuclear Waste Policy Act
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provides for siting a large privately owned high-level nuclear waste transfer, storage,
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decay in storage, or treatment facility away from the vicinity of the reactors.  The
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Atomic Energy Act and the Nuclear Waste Policy Act specifically define authorized
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storage and disposal programs and activities.  The state in enacting this part is not
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preempted by federal law, since any proposed facilities that would be sited in Utah are
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not contemplated or authorized by federal law and, in any circumstance, this part is not
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contrary to or inconsistent with federal law or congressional intent.
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(3) The state has environmental and economic interests which do not involve nuclear safety
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regulation, and which shall be considered and complied with in siting a high-level
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nuclear waste or greater than class C radioactive waste transfer, storage, decay in
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storage, treatment, or disposal facility and in transporting these wastes in the state.
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(4) [An additional primary purpose of this part is to ensure protection of] The state also
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asserts an interest in protecting the state from nonradiological hazards associated with
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any waste transportation, transfer, storage, decay in storage, treatment, or disposal.
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(5) The state recognizes the sovereign rights of Indian tribes within the state.  However, any
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proposed transfer, storage, decay in storage, treatment, or disposal facility located on a
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reservation which directly affects and impacts state interests by creating off-reservation
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effects such as potential or actual degradation of soils and groundwater, potential or
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actual contamination of surface water, pollution of the ambient air, emergency planning
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costs, impacts on development, agriculture, and ranching, and increased transportation
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activity, is subject to state jurisdiction.
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(6) There is no tradition of regulation by the Indian tribes in Utah of high-level nuclear
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waste or higher than class C radioactive waste.  The state does have a long history of
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regulation of radioactive sources and natural resources and in the transfer, storage,
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treatment, and transportation of materials and wastes throughout the state.  The state
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finds that its interests are even greater when nonmembers of an Indian tribe propose to
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locate a facility on tribal trust lands primarily to avoid state regulation and state
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authorities under federal law.
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(7)(a) This part [is not intended to] does not modify existing state requirements for
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obtaining environmental approvals, permits, and licenses, including surface and
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groundwater permits and air quality permits, when the permits are necessary under
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state and federal law to construct and operate a high-level nuclear waste or greater
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than class C radioactive waste transfer, storage, decay in storage, treatment, or
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disposal facility.
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(b) Any source of air pollution proposed to be located within the state, including sources
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located within the boundaries of an Indian reservation, which will potentially or
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actually have a direct and significant impact on ambient air within the state, is
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required to obtain an approval order and permit from the state under Section 19-2-108.
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(c) Any facility which will potentially or actually have a significant impact on the state's
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surface or groundwater resources is required to obtain a permit under Section
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19-5-107 even if located within the boundaries of an Indian reservation.
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(8) The state finds that the transportation, transfer, storage, decay in storage, treatment, and
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disposal of high-level nuclear waste and greater than class C radioactive waste within
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the state is an ultra-hazardous activity which carries with it the risk that any release of
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waste may result in enormous economic and human injury.
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Section 5.  Section 19-3-318 is amended to read:
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19-3-318 . No limitation of liability regarding businesses involved in high level
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radioactive waste.
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(1) As used in this section:
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(a) "Controlling interest" means:
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(i) the direct or indirect possession of the power to direct or cause the direction of the
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management and policies of an organization, whether through the ownership of
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voting interests, by contract, or otherwise; or
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(ii) the direct or indirect possession of a 10% or greater equity interest in an
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organization.
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(b) "Equity interest holder" means a shareholder, member, partner, limited partner, trust
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beneficiary, or other person whose interest in an organization:
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(i) is in the nature of an ownership interest;
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(ii) entitles the person to participate in the profits and losses of the organization; or
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(iii) is otherwise of a type generally considered to be an equity interest.
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(c) "Organization" means a corporation, limited liability company, partnership, limited
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partnership, limited liability partnership, joint venture, consortium, association, trust,
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or other entity formed to undertake an enterprise or activity, whether or not for profit.
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(d) "Parent organization" means an organization with a controlling interest in another
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organization.
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(e)(i) "Subject activity" means:
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(A) to arrange for or engage in the transportation or transfer of high level nuclear
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waste or greater than class C radioactive waste to or from a storage facility in
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the state; or
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(B) to arrange for or engage in the operation or maintenance of a storage facility
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or a transfer facility for that waste.
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(ii) "Subject activity" does not include the transportation of high level nuclear waste
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or greater than class C radioactive waste by a class I railroad that was doing
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business in the state as a common or contract carrier by rail prior to January 1,
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1999.
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(f) "Subsidiary organization" means an organization in which a parent organization has a
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controlling interest.
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(2)(a) The Legislature enacts this section because of the state's compelling interest in the
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transportation, transfer, and storage of high level nuclear waste and greater than class
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C radioactive waste in this state.[ ] Legislative [intent] findings and assertions
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supporting this section [is] are further described in Section 19-3-302.
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(b) [Limited ] The state finds that:
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(i) liability for equity interest holders is a privilege, not a right, under the law and is
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meant to benefit the state and its citizens[.  An ] ;
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(ii) an organization engaging in subject activities has significant potential to affect
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the health, welfare, or best interests of the state and should not have limited
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liability for its equity interest holders[.  To shield] ; and
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(iii) shielding equity interest holders from the debts and obligations of an
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organization engaged in subject activities would have the effect of attracting
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capital to enterprises whose goals are contrary to the state's interests.
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(c) This section [has the intent of revoking ] revokes any and all statutory and common
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law grants of limited liability for an equity interest holder of an organization that
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chooses to engage in a subject activity in this state.
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[(d) This section shall be interpreted liberally to allow the greatest possible lawful
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recourse against an equity interest holder of an organization engaged in a subject
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activity in this state for the debts and liabilities of that organization.]
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[(e)] (d) This section does not reduce or affect any liability limitation otherwise granted
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to an organization by Utah law if that organization is not engaged in a subject activity
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in this state.
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(3) Notwithstanding any law to the contrary, if a domestic or foreign organization engages
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in a subject activity in this state, no equity interest holder of that organization enjoys any
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shield or limitation of liability for the acts, omissions, debts, and obligations of the
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organization incurred in this state.  Each equity interest holder of the organization is
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strictly and jointly and severally liable for all these obligations.
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(4) Notwithstanding any law to the contrary, each officer and director of an organization
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engaged in a subject activity in this state is individually liable for the acts, omissions,
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debts, and obligations of the organization incurred in this state.
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(5)(a) Notwithstanding any law to the contrary, if a subsidiary organization is engaged in
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a subject activity in this state, [then ]each parent organization of the subsidiary is also
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considered to be engaged in a subject activity in this state.  Each parent organization's
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equity interest holders and officers and directors are subject to this section to the
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same degree as the subsidiary's equity interest holders and officers and directors.
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(b) Subsection (5)(a) applies regardless of the number of parent organizations through
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which the controlling interest passes in the relationship between the subsidiary and
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the ultimate parent organization that controls the subsidiary.
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(6) This section does not excuse or modify the requirements imposed upon an applicant for
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a license by Subsection 19-3-306(9).
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Section 6.  Section 26B-9-202 is amended to read:
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26B-9-202 . Common-law and statutory remedies augmented by act.
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(1) The state of Utah, exercising its police and sovereign power, declares that the
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common-law and statutory remedies pertaining to family desertion and nonsupport of
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children shall be augmented by this part, which is directed to the real and personal
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property resources of the responsible parents.
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(2)  [In order to render resources more immediately available to meet the needs of children,
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it is the legislative intent that the] The remedies provided in this part are in addition to,
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and not in lieu of, existing law.
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[(3)  It is declared to be the public policy of this state that this part be liberally construed
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and administered to the end that children shall be maintained from the resources of
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responsible parents, thereby relieving or avoiding, at least in part, the burden often borne
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by the general citizenry through public assistance programs.]
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Section 7.  Section 31A-22-305 is amended to read:
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31A-22-305 . Uninsured motorist coverage.
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(1) As used in this section, "covered persons" includes:
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(a) the named insured;
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(b) for a claim arising on or after May 13, 2014, the named insured's dependent minor
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children;
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(c) persons related to the named insured by blood, marriage, adoption, or guardianship,
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who are residents of the named insured's household, including those who usually
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make their home in the same household but temporarily live elsewhere;
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(d) any person occupying or using a motor vehicle:
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(i) referred to in the policy; or
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(ii) owned by a self-insured; and
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(e) any person who is entitled to recover damages against the owner or operator of the
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uninsured or underinsured motor vehicle because of bodily injury to or death of
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persons under Subsection (1)(a), (b), (c), or (d).
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(2) As used in this section, "uninsured motor vehicle" includes:
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(a)(i) a motor vehicle, the operation, maintenance, or use of which is not covered
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under a liability policy at the time of an injury-causing occurrence; or
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(ii)(A) a motor vehicle covered with lower liability limits than required by Section
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31A-22-304; and
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(B) the motor vehicle described in Subsection (2)(a)(ii)(A) is uninsured to the
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extent of the deficiency;
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(b) an unidentified motor vehicle that left the scene of an accident proximately caused
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by the motor vehicle operator;
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(c) a motor vehicle covered by a liability policy, but coverage for an accident is disputed
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by the liability insurer for more than 60 days or continues to be disputed for more
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than 60 days; or
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(d)(i) an insured motor vehicle if, before or after the accident, the liability insurer of
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the motor vehicle is declared insolvent by a court of competent jurisdiction; and
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(ii) the motor vehicle described in Subsection (2)(d)(i) is uninsured only to the extent
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that the claim against the insolvent insurer is not paid by a guaranty association or
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fund.
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(3) Uninsured motorist coverage under Subsection 31A-22-302(1)(b) provides coverage for
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covered persons who are legally entitled to recover damages from owners or operators
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of uninsured motor vehicles because of bodily injury, sickness, disease, or death.
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(4)(a) For new policies written on or after January 1, 2001, the limits of uninsured
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motorist coverage shall be equal to the lesser of the limits of the named insured's
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motor vehicle liability coverage or the maximum uninsured motorist coverage limits
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available by the insurer under the named insured's motor vehicle policy, unless a
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named insured rejects or purchases coverage in a lesser amount by signing an
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acknowledgment form that:
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(i) is filed with the department;
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(ii) is provided by the insurer;
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(iii) waives the higher coverage;
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(iv) need only state in this or similar language that uninsured motorist coverage
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provides benefits or protection to you and other covered persons for bodily injury
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resulting from an accident caused by the fault of another party where the other
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party has no liability insurance; and
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(v) discloses the additional premiums required to purchase uninsured motorist
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coverage with limits equal to the lesser of the limits of the named insured's motor
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vehicle liability coverage or the maximum uninsured motorist coverage limits
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available by the insurer under the named insured's motor vehicle policy.
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(b) Any selection or rejection under this Subsection (4) continues for that issuer of the
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liability coverage until the insured requests, in writing, a change of uninsured
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motorist coverage from that liability insurer.
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(c)(i) Subsections (4)(a) and (b) apply retroactively to any claim arising on or after
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January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
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demand for arbitration or filed a complaint in a court of competent jurisdiction.
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(ii) The Legislature finds that the retroactive application of Subsections (4)(a) and (b)
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clarifies [legislative intent] the application of law and does not enlarge, eliminate,
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or destroy vested rights.
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(d) For purposes of this Subsection (4), "new policy" means:
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(i) any policy that is issued which does not include a renewal or reinstatement of an
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existing policy; or
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(ii) a change to an existing policy that results in:
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(A) a named insured being added to or deleted from the policy; or
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(B) a change in the limits of the named insured's motor vehicle liability coverage.
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(e)(i) As used in this Subsection (4)(e), "additional motor vehicle" means a change
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that increases the total number of vehicles insured by the policy, and does not
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include replacement, substitute, or temporary vehicles.
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(ii) The adding of an additional motor vehicle to an existing personal lines or
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commercial lines policy does not constitute a new policy for purposes of
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Subsection (4)(d).
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(iii) If an additional motor vehicle is added to a personal lines policy where uninsured
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motorist coverage has been rejected, or where uninsured motorist limits are lower
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than the named insured's motor vehicle liability limits, the insurer shall provide a
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notice to a named insured within 30 days that:
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(A) in the same manner as described in Subsection (4)(a)(iv), explains the purpose
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of uninsured motorist coverage; and
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(B) encourages the named insured to contact the insurance company or insurance
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producer for quotes as to the additional premiums required to purchase
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uninsured motorist coverage with limits equal to the lesser of the limits of the
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named insured's motor vehicle liability coverage or the maximum uninsured
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motorist coverage limits available by the insurer under the named insured's
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motor vehicle policy.
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(f) A change in policy number resulting from any policy change not identified under
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Subsection (4)(d)(ii) does not constitute a new policy.
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(g)(i) Subsection (4)(d) applies retroactively to any claim arising on or after January
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1, 2001, for which, as of May 1, 2012, an insured has not made a written demand
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for arbitration or filed a complaint in a court of competent jurisdiction.
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(ii) The Legislature finds that the retroactive application of Subsection (4):
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(A) does not enlarge, eliminate, or destroy vested rights; and
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(B) clarifies [legislative intent] the application of law.
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(h) A self-insured, including a governmental entity, may elect to provide uninsured
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motorist coverage in an amount that is less than its maximum self-insured retention
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under Subsections (4)(a) and (5)(a) by issuing a declaratory memorandum or policy
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statement from the chief financial officer or chief risk officer that declares the:
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(i) self-insured entity's coverage level; and
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(ii) process for filing an uninsured motorist claim.
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(i) Uninsured motorist coverage may not be sold with limits that are less than the
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minimum bodily injury limits for motor vehicle liability policies under Section
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31A-22-304.
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(j) The acknowledgment under Subsection (4)(a) continues for that issuer of the
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uninsured motorist coverage until the named insured requests, in writing, different
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uninsured motorist coverage from the insurer.
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(k)(i) In conjunction with the first two renewal notices sent after January 1, 2001, for
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policies existing on that date, the insurer shall disclose in the same medium as the
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premium renewal notice, an explanation of:
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(A) the purpose of uninsured motorist coverage in the same manner as described
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in Subsection (4)(a)(iv); and
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(B) a disclosure of the additional premiums required to purchase uninsured
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motorist coverage with limits equal to the lesser of the limits of the named
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insured's motor vehicle liability coverage or the maximum uninsured motorist
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coverage limits available by the insurer under the named insured's motor
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vehicle policy.
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(ii) The disclosure required under Subsection (4)(k)(i) shall be sent to all named
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insureds that carry uninsured motorist coverage limits in an amount less than the
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named insured's motor vehicle liability policy limits or the maximum uninsured
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motorist coverage limits available by the insurer under the named insured's motor
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vehicle policy.
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(l) For purposes of this Subsection (4), a notice or disclosure sent to a named insured in
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a household constitutes notice or disclosure to all insureds within the household.
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(5)(a)(i) Except as provided in Subsection (5)(b), the named insured may reject
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uninsured motorist coverage by an express writing to the insurer that provides
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liability coverage under Subsection 31A-22-302(1)(a).
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(ii) This rejection shall be on a form provided by the insurer that includes a
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reasonable explanation of the purpose of uninsured motorist coverage.
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(iii) This rejection continues for that issuer of the liability coverage until the insured
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in writing requests uninsured motorist coverage from that liability insurer.
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(b)(i) All persons, including governmental entities, that are engaged in the business
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of, or that accept payment for, transporting natural persons by motor vehicle, and
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all school districts that provide transportation services for their students, shall
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provide coverage for all motor vehicles used for that purpose, by purchase of a
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policy of insurance or by self-insurance, uninsured motorist coverage of at least
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$25,000 per person and $500,000 per accident.
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(ii) This coverage is secondary to any other insurance covering an injured covered
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person.
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(c) Uninsured motorist coverage:
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(i) in order to avoid double recovery, does not cover any benefit under Title 34A,
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Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
410 
Occupational Disease Act, provided by the workers' compensation insurance
411 
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
412 
34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702,
413 
except that:
414 
(A) the covered person is credited an amount described in Subsection
415 
34A-2-106(5); and
416 
(B) the benefits described in this Subsection (5)(c)(i) do not need to be paid before
417 
an uninsured motorist claim may be pursued and resolved;
418 
(ii) may not be subrogated by the workers' compensation insurance carrier,  uninsured
419 
employer, the Uninsured Employers' Fund created in Section 34A-2-704, or the
420 
Employers' Reinsurance Fund created in Section 34A-2-702;
421 
(iii) may not be reduced by any benefits provided by the workers' compensation
422 
insurance carrier, uninsured employer, the Uninsured Employers' Fund created in
423 
Section 34A-2-704, or the Employers' Reinsurance Fund created in Section
424 
34A-2-702;
425 
(iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health
426 
insurance subrogation only after the covered person has been made whole;
427 
(v) may not be collected for bodily injury or death sustained by a person:
428 
(A) while committing a violation of Section 41-1a-1314;
429 
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
430 
operated in violation of Section 41-1a-1314; or
431 
(C) while committing a felony; and
432 
(vi) notwithstanding Subsection (5)(c)(v), may be recovered:
433 
(A) for a person under 18 years old who is injured within the scope of Subsection
434 
(5)(c)(v) but limited to medical and funeral expenses; or
435 
(B) by a law enforcement officer as defined in Section 53-13-103, who is injured
436 
within the course and scope of the law enforcement officer's duties.
- 13 - H.B. 394	Enrolled Copy
437 
(d) As used in this Subsection (5), "motor vehicle" means the same as that term is
438 
defined in Section 41-1a-102.
439 
(6) When a covered person alleges that an uninsured motor vehicle under Subsection (2)(b)
440 
proximately caused an accident without touching the covered person or the motor
441 
vehicle occupied by the covered person, the covered person shall show the existence of
442 
the uninsured motor vehicle by clear and convincing evidence consisting of more than
443 
the covered person's testimony.
444 
(7)(a) The limit of liability for uninsured motorist coverage for two or more motor
445 
vehicles may not be added together, combined, or stacked to determine the limit of
446 
insurance coverage available to an injured person for any one accident.
447 
(b)(i) Subsection (7)(a) applies to all persons except a covered person as defined
448 
under Subsection (8)(b).
449 
(ii) A covered person as defined under Subsection (8)(b)(ii) is entitled to the highest
450 
limits of uninsured motorist coverage afforded for any one motor vehicle that the
451 
covered person is the named insured or an insured family member.
452 
(iii) This coverage shall be in addition to the coverage on the motor vehicle the
453 
covered person is occupying.
454 
(iv) Neither the primary nor the secondary coverage may be set off against the other.
455 
(c) Coverage on a motor vehicle occupied at the time of an accident shall be primary
456 
coverage, and the coverage elected by a person described under Subsections (1)(a)
457 
through (c) shall be secondary coverage.
458 
(8)(a) Uninsured motorist coverage under this section applies to bodily injury, sickness,
459 
disease, or death of covered persons while occupying or using a motor vehicle only if
460 
the motor vehicle is described in the policy under which a claim is made, or if the
461 
motor vehicle is a newly acquired or replacement motor vehicle covered under the
462 
terms of the policy.  Except as provided in Subsection (7) or this Subsection (8), a
463 
covered person injured in a motor vehicle described in a policy that includes
464 
uninsured motorist benefits may not elect to collect uninsured motorist coverage
465 
benefits from any other motor vehicle insurance policy under which the person is a
466 
covered person.
467 
(b) Each of the following persons may also recover uninsured motorist benefits under
468 
any one other policy in which they are described as a "covered person" as defined in
469 
Subsection (1):
470 
(i) a covered person injured as a pedestrian by an uninsured motor vehicle; and
- 14 - Enrolled Copy	H.B. 394
471 
(ii) except as provided in Subsection (8)(c), a covered person injured while
472 
occupying or using a motor vehicle that is not owned, leased, or furnished:
473 
(A) to the covered person;
474 
(B) to the covered person's spouse; or
475 
(C) to the covered person's resident parent or resident sibling.
476 
(c)(i) A covered person may recover benefits from no more than two additional
477 
policies, one additional policy from each parent's household if the covered person
478 
is:
479 
(A) a dependent minor of parents who reside in separate households; and
480 
(B) injured while occupying or using a motor vehicle that is not owned, leased, or
481 
furnished:
482 
(I) to the covered person;
483 
(II) to the covered person's resident parent; or
484 
(III) to the covered person's resident sibling.
485 
(ii) Each parent's policy under this Subsection (8)(c) is liable only for the percentage
486 
of the damages that the limit of liability of each parent's policy of uninsured
487 
motorist coverage bears to the total of both parents' uninsured coverage applicable
488 
to the accident.
489 
(d) A covered person's recovery under any available policies may not exceed the full
490 
amount of damages.
491 
(e) A covered person in Subsection (8)(b) is not barred against making subsequent
492 
elections if recovery is unavailable under previous elections.
493 
(f)(i) As used in this section, "interpolicy stacking" means recovering benefits for a
494 
single incident of loss under more than one insurance policy.
495 
(ii) Except to the extent permitted by Subsection (7) and this Subsection (8),
496 
interpolicy stacking is prohibited for uninsured motorist coverage.
497 
(9)(a) When a claim is brought by a named insured or a person described in Subsection
498 
(1) and is asserted against the covered person's uninsured motorist carrier, the
499 
claimant may elect to resolve the claim:
500 
(i) by submitting the claim to binding arbitration; or
501 
(ii) through litigation.
502 
(b) Unless otherwise provided in the policy under which uninsured benefits are claimed,
503 
the election provided in Subsection (9)(a) is available to the claimant only, except
504 
that if the policy under which insured benefits are claimed provides that either an
- 15 - H.B. 394	Enrolled Copy
505 
insured or the insurer may elect arbitration, the insured or the insurer may elect
506 
arbitration and that election to arbitrate shall stay the litigation of the claim under
507 
Subsection (9)(a)(ii).
508 
(c) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii), the
509 
claimant may not elect to resolve the claim through binding arbitration under this
510 
section without the written consent of the uninsured motorist carrier.
511 
(d) For purposes of the statute of limitations applicable to a claim described in
512 
Subsection (9)(a), if the claimant does not elect to resolve the claim through
513 
litigation, the claim is considered filed when the claimant submits the claim to
514 
binding arbitration in accordance with this Subsection (9).
515 
(e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
516 
binding arbitration under Subsection (9)(a)(i) shall be resolved by a single
517 
arbitrator.
518 
(ii) All parties shall agree on the single arbitrator selected under Subsection (9)(e)(i).
519 
(iii) If the parties are unable to agree on a single arbitrator as required under
520 
Subsection (9)(e)(ii), the parties shall select a panel of three arbitrators.
521 
(f) If the parties select a panel of three arbitrators under Subsection (9)(e)(iii):
522 
(i) each side shall select one arbitrator; and
523 
(ii) the arbitrators appointed under Subsection (9)(f)(i) shall select one additional
524 
arbitrator to be included in the panel.
525 
(g) Unless otherwise agreed to in writing:
526 
(i) each party shall pay an equal share of the fees and costs of the arbitrator selected
527 
under Subsection (9)(e)(i); or
528 
(ii) if an arbitration panel is selected under Subsection (9)(e)(iii):
529 
(A) each party shall pay the fees and costs of the arbitrator selected by that party;
530 
and
531 
(B) each party shall pay an equal share of the fees and costs of the arbitrator
532 
selected under Subsection (9)(f)(ii).
533 
(h) Except as otherwise provided in this section or unless otherwise agreed to in writing
534 
by the parties, an arbitration proceeding conducted under this section shall be
535 
governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.
536 
(i)(i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through
537 
(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
538 
requirements of Subsections (10)(a) through (c) are satisfied.
- 16 - Enrolled Copy	H.B. 394
539 
(ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
540 
Procedure shall be determined based on the claimant's specific monetary amount
541 
in the written demand for payment of uninsured motorist coverage benefits as
542 
required in Subsection (10)(a)(i)(A).
543 
(iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
544 
arbitration claims under this part.
545 
(j) All issues of discovery shall be resolved by the arbitrator or the arbitration panel.
546 
(k) A written decision by a single arbitrator or by a majority of the arbitration panel shall
547 
constitute a final decision.
548 
(l)(i) Except as provided in Subsection (10), the amount of an arbitration award may
549 
not exceed the uninsured motorist policy limits of all applicable uninsured
550 
motorist policies, including applicable uninsured motorist umbrella policies.
551 
(ii) If the initial arbitration award exceeds the uninsured motorist policy limits of all
552 
applicable uninsured motorist policies, the arbitration award shall be reduced to an
553 
amount equal to the combined uninsured motorist policy limits of all applicable
554 
uninsured motorist policies.
555 
(m) The arbitrator or arbitration panel may not decide the issues of coverage or
556 
extra-contractual damages, including:
557 
(i) whether the claimant is a covered person;
558 
(ii) whether the policy extends coverage to the loss; or
559 
(iii) any allegations or claims asserting consequential damages or bad faith liability.
560 
(n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
561 
class-representative basis.
562 
(o) If the arbitrator or arbitration panel finds that the action was not brought, pursued, or
563 
defended in good faith, the arbitrator or arbitration panel may award reasonable
564 
attorney fees and costs against the party that failed to bring, pursue, or defend the
565 
claim in good faith.
566 
(p) An arbitration award issued under this section shall be the final resolution of all
567 
claims not excluded by Subsection (9)(m) between the parties unless:
568 
(i) the award was procured by corruption, fraud, or other undue means; and
569 
(ii) within 20 days after service of the arbitration award, a party:
570 
(A) files a complaint requesting a trial de novo in a court with jurisdiction under
571 
Title 78A, Judiciary and Judicial Administration; and
572 
(B) serves the nonmoving party with a copy of the complaint requesting a trial de
- 17 - H.B. 394	Enrolled Copy
573 
novo under Subsection (9)(p)(ii)(A).
574 
(q)(i) Upon filing a complaint for a trial de novo under Subsection (9)(p), the claim
575 
shall proceed through litigation in accordance with the Utah Rules of Civil
576 
Procedure and Utah Rules of Evidence.
577 
(ii) In accordance with Rule 38, Utah Rules of Civil Procedure, a party may request a
578 
jury trial with a complaint requesting a trial de novo under Subsection (9)(p)(ii)(A).
579 
(r)(i) If the claimant, as the moving party in a trial de novo requested under
580 
Subsection (9)(p), does not obtain a verdict that is at least $5,000 and is at least
581 
20% greater than the arbitration award, the claimant is responsible for all of the
582 
nonmoving party's costs.
583 
(ii) If the uninsured motorist carrier, as the moving party in a trial de novo requested
584 
under Subsection (9)(p), does not obtain a verdict that is at least 20% less than the
585 
arbitration award, the uninsured motorist carrier is responsible for all of the
586 
nonmoving party's costs.
587 
(iii) Except as provided in Subsection (9)(r)(iv), the costs under this Subsection (9)(r)
588 
shall include:
589 
(A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
590 
(B) the costs of expert witnesses and depositions.
591 
(iv) An award of costs under this Subsection (9)(r) may not exceed $2,500 unless
592 
Subsection (10)(h)(iii) applies.
593 
(s) For purposes of determining whether a party's verdict is greater or less than the
594 
arbitration award under Subsection (9)(r), a court may not consider any recovery or
595 
other relief granted on a claim for damages if the claim for damages:
596 
(i) was not fully disclosed in writing prior to the arbitration proceeding; or
597 
(ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
598 
Procedure.
599 
(t) If a court determines, upon a motion of the nonmoving party, that the moving party's
600 
use of the trial de novo process was filed in bad faith in accordance with Section
601 
78B-5-825, the court may award reasonable attorney fees to the nonmoving party.
602 
(u) Nothing in this section is intended to limit any claim under any other portion of an
603 
applicable insurance policy.
604 
(v) If there are multiple uninsured motorist policies, as set forth in Subsection (8), the
605 
claimant may elect to arbitrate in one hearing the claims against all the uninsured
606 
motorist carriers.
- 18 - Enrolled Copy	H.B. 394
607 
(10)(a) Within 30 days after a covered person elects to submit a claim for uninsured
608 
motorist benefits to binding arbitration or files litigation, the covered person shall
609 
provide to the uninsured motorist carrier:
610 
(i) a written demand for payment of uninsured motorist coverage benefits, setting
611 
forth:
612 
(A) subject to Subsection (10)(l), the specific monetary amount of the demand,
613 
including a computation of the covered person's claimed past medical
614 
expenses, claimed past lost wages, and the other claimed past economic
615 
damages; and
616 
(B) the factual and legal basis and any supporting documentation for the demand;
617 
(ii) a written statement under oath disclosing:
618 
(A)(I) the names and last known addresses of all health care providers who
619 
have rendered health care services to the covered person that are material to
620 
the claims for which uninsured motorist benefits are sought for a period of
621 
five years preceding the date of the event giving rise to the claim for
622 
uninsured motorist benefits up to the time the election for arbitration or
623 
litigation has been exercised; and
624 
(II) the names and last known addresses of the health care providers who have
625 
rendered health care services to the covered person, which the covered
626 
person claims are immaterial to the claims for which uninsured motorist
627 
benefits are sought, for a period of five years preceding the date of the event
628 
giving rise to the claim for uninsured motorist benefits up to the time the
629 
election for arbitration or litigation has been exercised that have not been
630 
disclosed under Subsection (10)(a)(ii)(A)(I);
631 
(B)(I) the names and last known addresses of all health insurers or other
632 
entities to whom the covered person has submitted claims for health care
633 
services or benefits material to the claims for which uninsured motorist
634 
benefits are sought, for a period of five years preceding the date of the event
635 
giving rise to the claim for uninsured motorist benefits up to the time the
636 
election for arbitration or litigation has been exercised; and
637 
(II) the names and last known addresses of the health insurers or other entities
638 
to whom the covered person has submitted claims for health care services or
639 
benefits, which the covered person claims are immaterial to the claims for
640 
which uninsured motorist benefits are sought, for a period of five years
- 19 - H.B. 394	Enrolled Copy
641 
preceding the date of the event giving rise to the claim for uninsured
642 
motorist benefits up to the time the election for arbitration or litigation have
643 
not been disclosed;
644 
(C) if lost wages, diminished earning capacity, or similar damages are claimed, all
645 
employers of the covered person for a period of five years preceding the date
646 
of the event giving rise to the claim for uninsured motorist benefits up to the
647 
time the election for arbitration or litigation has been exercised;
648 
(D) other documents to reasonably support the claims being asserted; and
649 
(E) all state and federal statutory lienholders including a statement as to whether
650 
the covered person is a recipient of Medicare or Medicaid benefits or Utah
651 
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part
652 
9, Utah Children's Health Insurance Program, or if the claim is subject to any
653 
other state or federal statutory liens; and
654 
(iii) signed authorizations to allow the uninsured motorist carrier to only obtain
655 
records and billings from the individuals or entities disclosed under Subsections
656 
(10)(a)(ii)(A)(I), (B)(I), and (C).
657 
(b)(i) If the uninsured motorist carrier determines that the disclosure of undisclosed
658 
health care providers or health care insurers under Subsection (10)(a)(ii) is
659 
reasonably necessary, the uninsured motorist carrier may:
660 
(A) make a request for the disclosure of the identity of the health care providers or
661 
health care insurers; and
662 
(B) make a request for authorizations to allow the uninsured motorist carrier to
663 
only obtain records and billings from the individuals or entities not disclosed.
664 
(ii) If the covered person does not provide the requested information within 10 days:
665 
(A) the covered person shall disclose, in writing, the legal or factual basis for the
666 
failure to disclose the health care providers or health care insurers; and
667 
(B) either the covered person or the uninsured motorist carrier may request the
668 
arbitrator or arbitration panel to resolve the issue of whether the identities or
669 
records are to be provided if the covered person has elected arbitration.
670 
(iii) The time periods imposed by Subsection (10)(c)(i) are tolled pending resolution
671 
of the dispute concerning the disclosure and production of records of the health
672 
care providers or health care insurers.
673 
(c)(i) An uninsured motorist carrier that receives an election for arbitration or a notice
674 
of filing litigation and the demand for payment of uninsured motorist benefits
- 20 - Enrolled Copy	H.B. 394
675 
under Subsection (10)(a)(i) shall have a reasonable time, not to exceed 60 days
676 
from the date of the demand and receipt of the items specified in Subsections
677 
(10)(a)(i) through (iii), to:
678 
(A) provide a written response to the written demand for payment provided for in
679 
Subsection (10)(a)(i);
680 
(B) except as provided in Subsection (10)(c)(i)(C), tender the amount, if any, of
681 
the uninsured motorist carrier's determination of the amount owed to the
682 
covered person; and
683 
(C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
684 
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part
685 
9, Utah Children's Health Insurance Program, or if the claim is subject to any
686 
other state or federal statutory liens, tender the amount, if any, of the uninsured
687 
motorist carrier's determination of the amount owed to the covered person less:
688 
(I) if the amount of the state or federal statutory lien is established, the amount
689 
of the lien; or
690 
(II) if the amount of the state or federal statutory lien is not established, two
691 
times the amount of the medical expenses subject to the state or federal
692 
statutory lien until such time as the amount of the state or federal statutory
693 
lien is established.
694 
(ii) If the amount tendered by the uninsured motorist carrier under Subsection
695 
(10)(c)(i) is the total amount of the uninsured motorist policy limits, the tendered
696 
amount shall be accepted by the covered person.
697 
(d) A covered person who receives a written response from an uninsured motorist carrier
698 
as provided for in Subsection (10)(c)(i), may:
699 
(i) elect to accept the amount tendered in Subsection (10)(c)(i) as payment in full of
700 
all uninsured motorist claims; or
701 
(ii) elect to:
702 
(A) accept the amount tendered in Subsection (10)(c)(i) as partial payment of all
703 
uninsured motorist claims; and
704 
(B) continue to litigate or arbitrate the remaining claim in accordance with the
705 
election made under Subsections (9)(a) through (c).
706 
(e) If a covered person elects to accept the amount tendered under Subsection (10)(c)(i)
707 
as partial payment of all uninsured motorist claims, the final award obtained through
708 
arbitration, litigation, or later settlement shall be reduced by any payment made by
- 21 - H.B. 394	Enrolled Copy
709 
the uninsured motorist carrier under Subsection (10)(c)(i).
710 
(f) In an arbitration proceeding on the remaining uninsured claims:
711 
(i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
712 
under Subsection (10)(c)(i) until after the arbitration award has been rendered; and
713 
(ii) the parties may not disclose the amount of the limits of uninsured motorist
714 
benefits provided by the policy.
715 
(g) If the final award obtained through arbitration or litigation is greater than the average
716 
of the covered person's initial written demand for payment provided for in Subsection
717 
(10)(a)(i) and the uninsured motorist carrier's initial written response provided for in
718 
Subsection (10)(c)(i), the uninsured motorist carrier shall pay:
719 
(i) the final award obtained through arbitration or litigation, except that if the award
720 
exceeds the policy limits of the subject uninsured motorist policy by more than
721 
$15,000, the amount shall be reduced to an amount equal to the policy limits plus
722 
$15,000; and
723 
(ii) any of the following applicable costs:
724 
(A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
725 
(B) the arbitrator or arbitration panel's fee; and
726 
(C) the reasonable costs of expert witnesses and depositions used in the
727 
presentation of evidence during arbitration or litigation.
728 
(h)(i) The covered person shall provide an affidavit of costs within five days of an
729 
arbitration award.
730 
(ii)(A) Objection to the affidavit of costs shall specify with particularity the costs
731 
to which the uninsured motorist carrier objects.
732 
(B) The objection shall be resolved by the arbitrator or arbitration panel.
733 
(iii) The award of costs by the arbitrator or arbitration panel under Subsection
734 
(10)(g)(ii) may not exceed $5,000.
735 
(i)(i) A covered person shall disclose all material information, other than rebuttal
736 
evidence, within 30 days after a covered person elects to submit a claim for
737 
uninsured motorist coverage benefits to binding arbitration or files litigation as
738 
specified in Subsection (10)(a).
739 
(ii) If the information under Subsection (10)(i)(i) is not disclosed, the covered person
740 
may not recover costs or any amounts in excess of the policy under Subsection
741 
(10)(g).
742 
(j) This Subsection (10) does not limit any other cause of action that arose or may arise
- 22 - Enrolled Copy	H.B. 394
743 
against the uninsured motorist carrier from the same dispute.
744 
(k) The provisions of this Subsection (10) only apply to motor vehicle accidents that
745 
occur on or after March 30, 2010.
746 
(l)(i)(A) The written demand requirement in Subsection (10)(a)(i)(A) does not
747 
affect the covered person's requirement to provide a computation of any other
748 
economic damages claimed, and the one or more respondents shall have a
749 
reasonable time after the receipt of the computation of any other economic
750 
damages claimed to conduct fact and expert discovery as to any additional
751 
damages claimed.
752 (B) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and
753 
Chapter 300, Section 10, to this Subsection (10)(l) and Subsection (10)(a)(i)(A) apply to a
754 
claim submitted to binding arbitration or through litigation on or after May 13, 2014.
755 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 10, and Chapter
756 
300, Section 10, to Subsections (10)(a)(ii)(A)(II) and (B)(II) apply to any claim submitted
757 
to binding arbitration or through litigation on or after May 13, 2014.
758 
(11)(a) A person shall commence an action on a written policy or contract for uninsured
759 
motorist coverage within four years after the inception of loss.
760 
(b) Subsection (11)(a) shall apply to all claims that have not been time barred by
761 
Subsection 31A-21-313(1)(a) as of May 14, 2019.
762 
Section 8.  Section 31A-22-305.3 is amended to read:
763 
31A-22-305.3 . Underinsured motorist coverage.
764 
(1) As used in this section:
765 
(a) "Covered person" means the same as that term is defined in Section 31A-22-305.
766 
(b)(i) "Underinsured motor vehicle" includes a motor vehicle, the operation,
767 
maintenance, or use of which is covered under a liability policy at the time of an
768 
injury-causing occurrence, but which has insufficient liability coverage to
769 
compensate fully the injured party for all special and general damages.
770 
(ii) The term "underinsured motor vehicle" does not include:
771 
(A) a motor vehicle that is covered under the liability coverage of the same policy
772 
that also contains the underinsured motorist coverage;
773 
(B) an uninsured motor vehicle as defined in Subsection 31A-22-305(2); or
774 
(C) a motor vehicle owned or leased by:
775 
(I) a named insured;
776 
(II) a named insured's spouse; or
- 23 - H.B. 394	Enrolled Copy
777 
(III) a dependent of a named insured.
778 
(2)(a) Underinsured motorist coverage under Subsection 31A-22-302(1)(c) provides
779 
coverage for a covered person who is legally entitled to recover damages from an
780 
owner or operator of an underinsured motor vehicle because of bodily injury,
781 
sickness, disease, or death.
782 
(b) A covered person occupying or using a motor vehicle owned, leased, or furnished to
783 
the covered person, the covered person's spouse, or covered person's resident relative
784 
may recover underinsured benefits only if the motor vehicle is:
785 
(i) described in the policy under which a claim is made; or
786 
(ii) a newly acquired or replacement motor vehicle covered under the terms of the
787 
policy.
788 
(3)(a) For purposes of this Subsection (3), "new policy" means:
789 
(i) any policy that is issued that does not include a renewal or reinstatement of an
790 
existing policy; or
791 
(ii) a change to an existing policy that results in:
792 
(A) a named insured being added to or deleted from the policy; or
793 
(B) a change in the limits of the named insured's motor vehicle liability coverage.
794 
(b) For new policies written on or after January 1, 2001, the limits of underinsured
795 
motorist coverage shall be equal to the lesser of the limits of the named insured's
796 
motor vehicle liability coverage or the maximum underinsured motorist coverage
797 
limits available by the insurer under the named insured's motor vehicle policy, unless
798 
a named insured rejects or purchases coverage in a lesser amount by signing an
799 
acknowledgment form that:
800 
(i) is filed with the department;
801 
(ii) is provided by the insurer;
802 
(iii) waives the higher coverage;
803 
(iv) need only state in this or similar language that "underinsured motorist coverage
804 
provides benefits or protection to you and other covered persons for bodily injury
805 
resulting from an accident caused by the fault of another party where the other
806 
party has insufficient liability insurance"; and
807 
(v) discloses the additional premiums required to purchase underinsured motorist
808 
coverage with limits equal to the lesser of the limits of the named insured's motor
809 
vehicle liability coverage or the maximum underinsured motorist coverage limits
810 
available by the insurer under the named insured's motor vehicle policy.
- 24 - Enrolled Copy	H.B. 394
811 
(c) Any selection or rejection under Subsection (3)(b) continues for that issuer of the
812 
liability coverage until the insured requests, in writing, a change of underinsured
813 
motorist coverage from that liability insurer.
814 
(d)(i) Subsections (3)(b) and (c) apply retroactively to any claim arising on or after
815 
January 1, 2001, for which, as of May 14, 2013, an insured has not made a written
816 
demand for arbitration or filed a complaint in a court of competent jurisdiction.
817 
(ii) The Legislature finds that the retroactive application of Subsections (3)(b) and (c)
818 
clarifies [legislative intent] the application of law and does not enlarge, eliminate,
819 
or destroy vested rights.
820 
(e)(i) As used in this Subsection (3)(e), "additional motor vehicle" means a change
821 
that increases the total number of vehicles insured by the policy, and does not
822 
include replacement, substitute, or temporary vehicles.
823 
(ii) The adding of an additional motor vehicle to an existing personal lines or
824 
commercial lines policy does not constitute a new policy for purposes of
825 
Subsection (3)(a).
826 
(iii) If an additional motor vehicle is added to a personal lines policy where
827 
underinsured motorist coverage has been rejected, or where underinsured motorist
828 
limits are lower than the named insured's motor vehicle liability limits, the insurer
829 
shall provide a notice to a named insured within 30 days that:
830 
(A) in the same manner described in Subsection (3)(b)(iv), explains the purpose of
831 
underinsured motorist coverage; and
832 
(B) encourages the named insured to contact the insurance company or insurance
833 
producer for quotes as to the additional premiums required to purchase
834 
underinsured motorist coverage with limits equal to the lesser of the limits of
835 
the named insured's motor vehicle liability coverage or the maximum
836 
underinsured motorist coverage limits available by the insurer under the named
837 
insured's motor vehicle policy.
838 
(f) A change in policy number resulting from any policy change not identified under
839 
Subsection (3)(a)(ii) does not constitute a new policy.
840 
(g)(i) Subsection (3)(a) applies retroactively to any claim arising on or after January
841 
1, 2001 for which, as of May 1, 2012, an insured has not made a written demand
842 
for arbitration or filed a complaint in a court of competent jurisdiction.
843 
(ii) The Legislature finds that the retroactive application of Subsection (3)(a):
844 
(A) does not enlarge, eliminate, or destroy vested rights; and
- 25 - H.B. 394	Enrolled Copy
845 
(B) clarifies legislative intent.
846 
(h) A self-insured, including a governmental entity, may elect to provide underinsured
847 
motorist coverage in an amount that is less than its maximum self-insured retention
848 
under Subsections (3)(b) and (l) by issuing a declaratory memorandum or policy
849 
statement from the chief financial officer or chief risk officer that declares the:
850 
(i) self-insured entity's coverage level; and
851 
(ii) process for filing an underinsured motorist claim.
852 
(i) Underinsured motorist coverage may not be sold with limits that are less than:
853 
(i) $10,000 for one person in any one accident; and
854 
(ii) at least $20,000 for two or more persons in any one accident.
855 
(j) An acknowledgment under Subsection (3)(b) continues for that issuer of the
856 
underinsured motorist coverage until the named insured, in writing, requests different
857 
underinsured motorist coverage from the insurer.
858 
(k)(i) The named insured's underinsured motorist coverage, as described in
859 
Subsection (2), is secondary to the liability coverage of an owner or operator of an
860 
underinsured motor vehicle, as described in Subsection (1).
861 
(ii) Underinsured motorist coverage may not be set off against the liability coverage
862 
of the owner or operator of an underinsured motor vehicle, but shall be added to,
863 
combined with, or stacked upon the liability coverage of the owner or operator of
864 
the underinsured motor vehicle to determine the limit of coverage available to the
865 
injured person.
866 
(l)(i) In conjunction with the first two renewal notices sent after January 1, 2001, for
867 
policies existing on that date, the insurer shall disclose in the same medium as the
868 
premium renewal notice, an explanation of:
869 
(A) the purpose of underinsured motorist coverage in the same manner as
870 
described in Subsection (3)(b)(iv); and
871 
(B) a disclosure of the additional premiums required to purchase underinsured
872 
motorist coverage with limits equal to the lesser of the limits of the named
873 
insured's motor vehicle liability coverage or the maximum underinsured
874 
motorist coverage limits available by the insurer under the named insured's
875 
motor vehicle policy.
876 
(ii) The disclosure required under this Subsection (3)(l) shall be sent to all named
877 
insureds that carry underinsured motorist coverage limits in an amount less than
878 
the named insured's motor vehicle liability policy limits or the maximum
- 26 - Enrolled Copy	H.B. 394
879 
underinsured motorist coverage limits available by the insurer under the named
880 
insured's motor vehicle policy.
881 
(m) For purposes of this Subsection (3), a notice or disclosure sent to a named insured in
882 
a household constitutes notice or disclosure to all insureds within the household.
883 
(4)(a)(i) Except as provided in this Subsection (4), a covered person injured in a
884 
motor vehicle described in a policy that includes underinsured motorist benefits
885 
may not elect to collect underinsured motorist coverage benefits from another
886 
motor vehicle insurance policy.
887 
(ii) The limit of liability for underinsured motorist coverage for two or more motor
888 
vehicles may not be added together, combined, or stacked to determine the limit
889 
of insurance coverage available to an injured person for any one accident.
890 
(iii) Subsection (4)(a)(ii) applies to all persons except a covered person described
891 
under Subsections (4)(b)(i) and (ii).
892 
(b)(i) A covered person injured as a pedestrian by an underinsured motor vehicle may
893 
recover underinsured motorist benefits under any one other policy in which they
894 
are described as a covered person.
895 
(ii) Except as provided in Subsection (4)(b)(iii), a covered person injured while
896 
occupying, using, or maintaining a motor vehicle that is not owned, leased, or
897 
furnished to the covered person, the covered person's spouse, or the covered
898 
person's resident parent or resident sibling, may also recover benefits under any
899 
one other policy under which the covered person is also a covered person.
900 
(iii)(A) A covered person may recover benefits from no more than two additional
901 
policies, one additional policy from each parent's household if the covered
902 
person is:
903 
(I) a dependent minor of parents who reside in separate households; and
904 
(II) injured while occupying or using a motor vehicle that is not owned, leased,
905 
or furnished to the covered person, the covered person's resident parent, or
906 
the covered person's resident sibling.
907 
(B) Each parent's policy under this Subsection (4)(b)(iii) is liable only for the
908 
percentage of the damages that the limit of liability of each parent's policy of
909 
underinsured motorist coverage bears to the total of both parents' underinsured
910 
coverage applicable to the accident.
911 
(iv) A covered person's recovery under any available policies may not exceed the full
912 
amount of damages.
- 27 - H.B. 394	Enrolled Copy
913 
(v) Underinsured coverage on a motor vehicle occupied at the time of an accident is
914 
primary coverage, and the coverage elected by a person described under
915 
Subsections 31A-22-305(1)(a), (b), and (c) is secondary coverage.
916 
(vi) The primary and the secondary coverage may not be set off against the other.
917 
(vii) A covered person as described under Subsection (4)(b)(i) or is entitled to the
918 
highest limits of underinsured motorist coverage under only one additional policy
919 
per household applicable to that covered person as a named insured, spouse, or
920 
relative.
921 
(viii) A covered injured person is not barred against making subsequent elections if
922 
recovery is unavailable under previous elections.
923 
(ix)(A) As used in this section, "interpolicy stacking" means recovering benefits
924 
for a single incident of loss under more than one insurance policy.
925 
(B) Except to the extent permitted by this Subsection (4), interpolicy stacking is
926 
prohibited for underinsured motorist coverage.
927 
(c) Underinsured motorist coverage:
928 
(i) in order to avoid double recovery, does not cover any benefit under Title 34A,
929 
Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3, Utah
930 
Occupational Disease Act, provided by the workers' compensation insurance
931 
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
932 
34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702,
933 
except that:
934 
(A) the covered person is credited an amount described in Subsection
935 
34A-2-106(5); and
936 
(B) the benefits described in this Subsection (4)(c)(i) do not need to be paid before
937 
an underinsured motorist claim may be pursued and resolved.
938 
(ii) may not be subrogated by a workers' compensation insurance carrier, uninsured
939 
employer, the Uninsured Employers' Fund created in Section 34A-2-704, or the
940 
Employers' Reinsurance Fund created in Section 34A-2-702;
941 
(iii) may not be reduced by benefits provided by the workers' compensation insurance
942 
carrier, uninsured employer, the Uninsured Employers' Fund created in Section
943 
34A-2-704, or the Employers' Reinsurance Fund created in Section 34A-2-702;
944 
(iv) notwithstanding Subsection 31A-1-103(3)(f), may be reduced by health
945 
insurance subrogation only after the covered person is made whole;
946 
(v) may not be collected for bodily injury or death sustained by a person:
- 28 - Enrolled Copy	H.B. 394
947 
(A) while committing a violation of Section 41-1a-1314;
948 
(B) who, as a passenger in a vehicle, has knowledge that the vehicle is being
949 
operated in violation of Section 41-1a-1314; or
950 
(C) while committing a felony; and
951 
(vi) notwithstanding Subsection (4)(c)(v), may be recovered:
952 
(A) for a person younger than 18 years old who is injured within the scope of
953 
Subsection (4)(c)(v), but is limited to medical and funeral expenses; or
954 
(B) by a law enforcement officer as defined in Section 53-13-103, who is injured
955 
within the course and scope of the law enforcement officer's duties.
956 
(5)(a) Notwithstanding Section 31A-21-313, an action on a written policy or contract for
957 
underinsured motorist coverage shall be commenced within four years after the
958 
inception of loss.
959 
(b) The inception of the loss under Subsection 31A-21-313(1) for underinsured motorist
960 
claims occurs upon the date of the settlement check representing the last liability
961 
policy payment.
962 
(6) An underinsured motorist insurer does not have a right of reimbursement against a
963 
person liable for the damages resulting from an injury-causing occurrence if the person's
964 
liability insurer has tendered the policy limit and the limits have been accepted by the
965 
claimant.
966 
(7) Except as otherwise provided in this section, a covered person may seek, subject to the
967 
terms and conditions of the policy, additional coverage under any policy:
968 
(a) that provides coverage for damages resulting from motor vehicle accidents; and
969 
(b) that is not required to conform to Section 31A-22-302.
970 
(8)(a) When a claim is brought by a named insured or a person described in Subsection
971 
31A-22-305(1) and is asserted against the covered person's underinsured motorist
972 
carrier, the claimant may elect to resolve the claim:
973 
(i) by submitting the claim to binding arbitration; or
974 
(ii) through litigation.
975 
(b) Unless otherwise provided in the policy under which underinsured benefits are
976 
claimed, the election provided in Subsection (8)(a) is available to the claimant only,
977 
except that if the policy under which insured benefits are claimed provides that either
978 
an insured or the insurer may elect arbitration, the insured or the insurer may elect
979 
arbitration and that election to arbitrate shall stay the litigation of the claim under
980 
Subsection (8)(a)(ii).
- 29 - H.B. 394	Enrolled Copy
981 
(c) Once a claimant elects to commence litigation under Subsection (8)(a)(ii), the
982 
claimant may not elect to resolve the claim through binding arbitration under this
983 
section without the written consent of the underinsured motorist coverage carrier.
984 
(d) For purposes of the statute of limitations applicable to a claim described in
985 
Subsection (8)(a), if the claimant does not elect to resolve the claim through
986 
litigation, the claim is considered filed when the claimant submits the claim to
987 
binding arbitration in accordance with this Subsection (8).
988 
(e)(i) Unless otherwise agreed to in writing by the parties, a claim that is submitted to
989 
binding arbitration under Subsection (8)(a)(i) shall be resolved by a single
990 
arbitrator.
991 
(ii) All parties shall agree on the single arbitrator selected under Subsection (8)(e)(i).
992 
(iii) If the parties are unable to agree on a single arbitrator as required under
993 
Subsection (8)(e)(ii), the parties shall select a panel of three arbitrators.
994 
(f) If the parties select a panel of three arbitrators under Subsection (8)(e)(iii):
995 
(i) each side shall select one arbitrator; and
996 
(ii) the arbitrators appointed under Subsection (8)(f)(i) shall select one additional
997 
arbitrator to be included in the panel.
998 
(g) Unless otherwise agreed to in writing:
999 
(i) each party shall pay an equal share of the fees and costs of the arbitrator selected
1000 
under Subsection (8)(e)(i); or
1001 
(ii) if an arbitration panel is selected under Subsection (8)(e)(iii):
1002 
(A) each party shall pay the fees and costs of the arbitrator selected by that party;
1003 
and
1004 
(B) each party shall pay an equal share of the fees and costs of the arbitrator
1005 
selected under Subsection (8)(f)(ii).
1006 
(h) Except as otherwise provided in this section or unless otherwise agreed to in writing
1007 
by the parties, an arbitration proceeding conducted under this section is governed by
1008 
Title 78B, Chapter 11, Utah Uniform Arbitration Act.
1009 
(i)(i) The arbitration shall be conducted in accordance with Rules 26(a)(4) through
1010 
(f), 27 through 37, 54, and 68 of the Utah Rules of Civil Procedure, once the
1011 
requirements of Subsections (9)(a) through (c) are satisfied.
1012 
(ii) The specified tier as defined by Rule 26(c)(3) of the Utah Rules of Civil
1013 
Procedure shall be determined based on the claimant's specific monetary amount
1014 
in the written demand for payment of uninsured motorist coverage benefits as
- 30 - Enrolled Copy	H.B. 394
1015 
required in Subsection (9)(a)(i)(A).
1016 
(iii) Rules 26.1 and 26.2 of the Utah Rules of Civil Procedure do not apply to
1017 
arbitration claims under this part.
1018 
(j) An issue of discovery shall be resolved by the arbitrator or the arbitration panel.
1019 
(k) A written decision by a single arbitrator or by a majority of the arbitration panel
1020 
constitutes a final decision.
1021 
(l)(i) Except as provided in Subsection (9), the amount of an arbitration award may
1022 
not exceed the underinsured motorist policy limits of all applicable underinsured
1023 
motorist policies, including applicable underinsured motorist umbrella policies.
1024 
(ii) If the initial arbitration award exceeds the underinsured motorist policy limits of
1025 
all applicable underinsured motorist policies, the arbitration award shall be
1026 
reduced to an amount equal to the combined underinsured motorist policy limits
1027 
of all applicable underinsured motorist policies.
1028 
(m) The arbitrator or arbitration panel may not decide an issue of coverage or
1029 
extra-contractual damages, including:
1030 
(i) whether the claimant is a covered person;
1031 
(ii) whether the policy extends coverage to the loss; or
1032 
(iii) an allegation or claim asserting consequential damages or bad faith liability.
1033 
(n) The arbitrator or arbitration panel may not conduct arbitration on a class-wide or
1034 
class-representative basis.
1035 
(o) If the arbitrator or arbitration panel finds that the arbitration is not brought, pursued,
1036 
or defended in good faith, the arbitrator or arbitration panel may award reasonable
1037 
attorney fees and costs against the party that failed to bring, pursue, or defend the
1038 
arbitration in good faith.
1039 
(p) An arbitration award issued under this section shall be the final resolution of all
1040 
claims not excluded by Subsection (8)(m) between the parties unless:
1041 
(i) the award is procured by corruption, fraud, or other undue means; or
1042 
(ii) either party, within 20 days after service of the arbitration award:
1043 
(A) files a complaint requesting a trial de novo in the a court with jurisdiction
1044 
under Title 78A, Judiciary and Judicial Administration; and
1045 
(B) serves the nonmoving party with a copy of the complaint requesting a trial de
1046 
novo under Subsection (8)(p)(ii)(A).
1047 
(q)(i) Upon filing a complaint for a trial de novo under Subsection (8)(p), a claim
1048 
shall proceed through litigation in accordance with the Utah Rules of Civil
- 31 - H.B. 394	Enrolled Copy
1049 
Procedure and Utah Rules of Evidence.
1050 
(ii) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may
1051 
request a jury trial with a complaint requesting a trial de novo under Subsection
1052 
(8)(p)(ii)(A).
1053 
(r)(i) If the claimant, as the moving party in a trial de novo requested under
1054 
Subsection (8)(p), does not obtain a verdict that is at least $5,000 and is at least
1055 
20% greater than the arbitration award, the claimant is responsible for all of the
1056 
nonmoving party's costs.
1057 
(ii) If the underinsured motorist carrier, as the moving party in a trial de novo
1058 
requested under Subsection (8)(p), does not obtain a verdict that is at least 20%
1059 
less than the arbitration award, the underinsured motorist carrier is responsible for
1060 
all of the nonmoving party's costs.
1061 
(iii) Except as provided in Subsection (8)(r)(iv), the costs under this Subsection (8)(r)
1062 
shall include:
1063 
(A) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
1064 
(B) the costs of expert witnesses and depositions.
1065 
(iv) An award of costs under this Subsection (8)(r) may not exceed $2,500 unless
1066 
Subsection (9)(h)(iii) applies.
1067 
(s) For purposes of determining whether a party's verdict is greater or less than the
1068 
arbitration award under Subsection (8)(r), a court may not consider any recovery or
1069 
other relief granted on a claim for damages if the claim for damages:
1070 
(i) was not fully disclosed in writing prior to the arbitration proceeding; or
1071 
(ii) was not disclosed in response to discovery contrary to the Utah Rules of Civil
1072 
Procedure.
1073 
(t) If a court determines, upon a motion of the nonmoving party, that a moving party's
1074 
use of the trial de novo process is filed in bad faith in accordance with Section
1075 
78B-5-825, the court may award reasonable attorney fees to the nonmoving party.
1076 
(u) Nothing in this section is intended to limit a claim under another portion of an
1077 
applicable insurance policy.
1078 
(v) If there are multiple underinsured motorist policies, as set forth in Subsection (4), the
1079 
claimant may elect to arbitrate in one hearing the claims against all the underinsured
1080 
motorist carriers.
1081 
(9)(a) Within 30 days after a covered person elects to submit a claim for underinsured
1082 
motorist benefits to binding arbitration or files litigation, the covered person shall
- 32 - Enrolled Copy	H.B. 394
1083 
provide to the underinsured motorist carrier:
1084 
(i) a written demand for payment of underinsured motorist coverage benefits, setting
1085 
forth:
1086 
(A) subject to Subsection (9)(l), the specific monetary amount of the demand,
1087 
including a computation of the covered person's claimed past medical
1088 
expenses, claimed past lost wages, and all other claimed past economic
1089 
damages; and
1090 
(B) the factual and legal basis and any supporting documentation for the demand;
1091 
(ii) a written statement under oath disclosing:
1092 
(A)(I) the names and last known addresses of all health care providers who
1093 
have rendered health care services to the covered person that are material to
1094 
the claims for which the underinsured motorist benefits are sought for a
1095 
period of five years preceding the date of the event giving rise to the claim
1096 
for underinsured motorist benefits up to the time the election for arbitration
1097 
or litigation has been exercised; and
1098 
(II) the names and last known addresses of the health care providers who have
1099 
rendered health care services to the covered person, which the covered
1100 
person claims are immaterial to the claims for which underinsured motorist
1101 
benefits are sought, for a period of five years preceding the date of the event
1102 
giving rise to the claim for underinsured motorist benefits up to the time the
1103 
election for arbitration or litigation has been exercised that have not been
1104 
disclosed under Subsection (9)(a)(ii)(A)(I);
1105 
(B)(I) the names and last known addresses of all health insurers or other
1106 
entities to whom the covered person has submitted claims for health care
1107 
services or benefits material to the claims for which underinsured motorist
1108 
benefits are sought, for a period of five years preceding the date of the event
1109 
giving rise to the claim for underinsured motorist benefits up to the time the
1110 
election for arbitration or litigation has been exercised; and
1111 
(II) the names and last known addresses of the health insurers or other entities
1112 
to whom the covered person has submitted claims for health care services or
1113 
benefits, which the covered person claims are immaterial to the claims for
1114 
which underinsured motorist benefits are sought, for a period of five years
1115 
preceding the date of the event giving rise to the claim for underinsured
1116 
motorist benefits up to the time the election for arbitration or litigation have
- 33 - H.B. 394	Enrolled Copy
1117 
not been disclosed;
1118 
(C) if lost wages, diminished earning capacity, or similar damages are claimed, all
1119 
employers of the covered person for a period of five years preceding the date
1120 
of the event giving rise to the claim for underinsured motorist benefits up to the
1121 
time the election for arbitration or litigation has been exercised;
1122 
(D) other documents to reasonably support the claims being asserted; and
1123 
(E) all state and federal statutory lienholders including a statement as to whether
1124 
the covered person is a recipient of Medicare or Medicaid benefits or Utah
1125 
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part
1126 
9, Utah Children's Health Insurance Program, or if the claim is subject to any
1127 
other state or federal statutory liens; and
1128 
(iii) signed authorizations to allow the underinsured motorist carrier to only obtain
1129 
records and billings from the individuals or entities disclosed under Subsections
1130 
(9)(a)(ii)(A)(I), (B)(I), and (C).
1131 
(b)(i) If the underinsured motorist carrier determines that the disclosure of
1132 
undisclosed health care providers or health care insurers under Subsection
1133 
(9)(a)(ii) is reasonably necessary, the underinsured motorist carrier may:
1134 
(A) make a request for the disclosure of the identity of the health care providers or
1135 
health care insurers; and
1136 
(B) make a request for authorizations to allow the underinsured motorist carrier to
1137 
only obtain records and billings from the individuals or entities not disclosed.
1138 
(ii) If the covered person does not provide the requested information within 10 days:
1139 
(A) the covered person shall disclose, in writing, the legal or factual basis for the
1140 
failure to disclose the health care providers or health care insurers; and
1141 
(B) either the covered person or the underinsured motorist carrier may request the
1142 
arbitrator or arbitration panel to resolve the issue of whether the identities or
1143 
records are to be provided if the covered person has elected arbitration.
1144 
(iii) The time periods imposed by Subsection (9)(c)(i) are tolled pending resolution of
1145 
the dispute concerning the disclosure and production of records of the health care
1146 
providers or health care insurers.
1147 
(c)(i) An underinsured motorist carrier that receives an election for arbitration or a
1148 
notice of filing litigation and the demand for payment of underinsured motorist
1149 
benefits under Subsection (9)(a)(i) shall have a reasonable time, not to exceed 60
1150 
days from the date of the demand and receipt of the items specified in Subsections
- 34 - Enrolled Copy	H.B. 394
1151 
(9)(a)(i) through (iii), to:
1152 
(A) provide a written response to the written demand for payment provided for in
1153 
Subsection (9)(a)(i);
1154 
(B) except as provided in Subsection (9)(c)(i)(C), tender the amount, if any, of the
1155 
underinsured motorist carrier's determination of the amount owed to the
1156 
covered person; and
1157 
(C) if the covered person is a recipient of Medicare or Medicaid benefits or Utah
1158 
Children's Health Insurance Program benefits under Title 26B, Chapter 3, Part
1159 
9, Utah Children's Health Insurance Program, or if the claim is subject to any
1160 
other state or federal statutory liens, tender the amount, if any, of the
1161 
underinsured motorist carrier's determination of the amount owed to the
1162 
covered person less:
1163 
(I) if the amount of the state or federal statutory lien is established, the amount
1164 
of the lien; or
1165 
(II) if the amount of the state or federal statutory lien is not established, two
1166 
times the amount of the medical expenses subject to the state or federal
1167 
statutory lien until such time as the amount of the state or federal statutory
1168 
lien is established.
1169 
(ii) If the amount tendered by the underinsured motorist carrier under Subsection
1170 
(9)(c)(i) is the total amount of the underinsured motorist policy limits, the
1171 
tendered amount shall be accepted by the covered person.
1172 
(d) A covered person who receives a written response from an underinsured motorist
1173 
carrier as provided for in Subsection (9)(c)(i), may:
1174 
(i) elect to accept the amount tendered in Subsection (9)(c)(i) as payment in full of all
1175 
underinsured motorist claims; or
1176 
(ii) elect to:
1177 
(A) accept the amount tendered in Subsection (9)(c)(i) as partial payment of all
1178 
underinsured motorist claims; and
1179 
(B) continue to litigate or arbitrate the remaining claim in accordance with the
1180 
election made under Subsections (8)(a) through (c).
1181 
(e) If a covered person elects to accept the amount tendered under Subsection (9)(c)(i) as
1182 
partial payment of all underinsured motorist claims, the final award obtained through
1183 
arbitration, litigation, or later settlement shall be reduced by any payment made by
1184 
the underinsured motorist carrier under Subsection (9)(c)(i).
- 35 - H.B. 394	Enrolled Copy
1185 
(f) In an arbitration proceeding on the remaining underinsured claims:
1186 
(i) the parties may not disclose to the arbitrator or arbitration panel the amount paid
1187 
under Subsection (9)(c)(i) until after the arbitration award has been rendered; and
1188 
(ii) the parties may not disclose the amount of the limits of underinsured motorist
1189 
benefits provided by the policy.
1190 
(g) If the final award obtained through arbitration or litigation is greater than the average
1191 
of the covered person's initial written demand for payment provided for in Subsection
1192 
(9)(a)(i) and the underinsured motorist carrier's initial written response provided for
1193 
in Subsection (9)(c)(i), the underinsured motorist carrier shall pay:
1194 
(i) the final award obtained through arbitration or litigation, except that if the award
1195 
exceeds the policy limits of the subject underinsured motorist policy by more than
1196 
$15,000, the amount shall be reduced to an amount equal to the policy limits plus
1197 
$15,000; and
1198 
(ii) any of the following applicable costs:
1199 
(A) any costs as set forth in Rule 54(d), Utah Rules of Civil Procedure;
1200 
(B) the arbitrator or arbitration panel's fee; and
1201 
(C) the reasonable costs of expert witnesses and depositions used in the
1202 
presentation of evidence during arbitration or litigation.
1203 
(h)(i) The covered person shall provide an affidavit of costs within five days of an
1204 
arbitration award.
1205 
(ii)(A) Objection to the affidavit of costs shall specify with particularity the costs
1206 
to which the underinsured motorist carrier objects.
1207 
(B) The objection shall be resolved by the arbitrator or arbitration panel.
1208 
(iii) The award of costs by the arbitrator or arbitration panel under Subsection
1209 
(9)(g)(ii) may not exceed $5,000.
1210 
(i)(i) A covered person shall disclose all material information, other than rebuttal
1211 
evidence, within 30 days after a covered person elects to submit a claim for
1212 
underinsured motorist coverage benefits to binding arbitration or files litigation as
1213 
specified in Subsection (9)(a).
1214 
(ii) If the information under Subsection (9)(i)(i) is not disclosed, the covered person
1215 
may not recover costs or any amounts in excess of the policy under Subsection
1216 
(9)(g).
1217 
(j) This Subsection (9) does not limit any other cause of action that arose or may arise
1218 
against the underinsured motorist carrier from the same dispute.
- 36 - Enrolled Copy	H.B. 394
1219 
(k) The provisions of this Subsection (9) only apply to motor vehicle accidents that
1220 
occur on or after March 30, 2010.
1221 
(l)(i) The written demand requirement in Subsection (9)(a)(i)(A) does not affect the
1222 
covered person's requirement to provide a computation of any other economic
1223 
damages claimed, and the one or more respondents shall have a reasonable time
1224 
after the receipt of the computation of any other economic damages claimed to
1225 
conduct fact and expert discovery as to any additional damages claimed.  The
1226 
changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter 300,
1227 
Section 11, to this Subsection (9)(l) and Subsection (9)(a)(i)(A) apply to a claim
1228 
submitted to binding arbitration or through litigation on or after May 13, 2014.
1229 (ii) The changes made by Laws of Utah 2014, Chapter 290, Section 11, and Chapter
1230 
300, Section 11, under Subsections (9)(a)(ii)(A)(II) and (B)(II) apply to a claim submitted
1231 
to binding arbitration or through litigation on or after May 13, 2014.
1232 
Section 9.  Section 32B-14-101 is amended to read:
1233 
32B-14-101 . Legislative policy.
1234 
[(1) This chapter is known as the "Utah Beer Industry Distribution Act."]
1235 
[(2)(a)] It is the policy of the Legislature to regulate and control the importation, sale,
1236 
and distribution of beer within the state in the exercise of its powers under the
1237 
Twenty-first Amendment to the Constitution of the United States and pursuant to the
1238 
Utah Constitution.
1239 
[(b) In furtherance of the policy described in Subsection (2)(a), this chapter is enacted to:]
1240 
[(i) promote good faith and fair dealing in the business relationships between
1241 
suppliers, wholesalers, and retailers of beer; and]
1242 
[(ii) provide for the establishment and maintenance of an orderly system for the
1243 
distribution of beer in accordance with the laws of the state regulating the sale and
1244 
distribution of beer to the public.]
1245 
Section 10.  Section 35A-8-301 is amended to read:
1246 
35A-8-301 . Legislative policy.
1247 
(1) [It is the intent of the Legislature to make available funds ] Funds received by the state
1248 
from federal mineral lease revenues under Section 59-21-2, bonus payments on federal
1249 
oil shale lease tracts U-A and U-B, and all other bonus payments on federal mineral
1250 
leases are to be used for planning, construction and maintenance of public facilities, and
1251 
provision of public service, subject to the limitations provided for in Section 35 of the
1252 
Mineral Leasing Act of 1920 (41 Stat. 450, 30 U.S.C. Sec. 191).
- 37 - H.B. 394	Enrolled Copy
1253 
(2) To the extent allowed under the Mineral Leasing Act, any ambiguity as to whether a
1254 
particular use of the lease revenue and bonus payments described in Subsection (1) is a
1255 
permissible use under this part shall be resolved in favor of upholding the use.
1256 
(3) [The purpose of this part is to maximize the long term benefit of funds derived from
1257 
these lease revenues and bonus payments by fostering funding mechanisms which will,
1258 
consistent with sound financial practices, result in the greatest use of financial resources
1259 
for the greatest number of citizens of this state, with priority] Priority for the use of the
1260 
funds described in Subsection (1) shall be given to those communities designated as
1261 
impacted by the development of natural resources covered by the Mineral Leasing Act.
1262 
(4) The policy of this state is to promote cooperation and coordination between the state
1263 
and the state's agencies and political subdivisions with individuals, firms, and business
1264 
organizations engaged in the development of the natural resources of this state.
1265 
Section 11.  Section 35A-8-310 is amended to read:
1266 
35A-8-310 . Application -- Retroactivity.
1267 
(1) The provisions of Laws of Utah 2021, Chapter 339, apply to any claim for which a court
1268 
of competent jurisdiction has not issued a final unappealable judgment or order.
1269 
(2) The Legislature finds that the provisions of Laws of Utah 2021, Chapter 339:
1270 
(a) do not enlarge, eliminate, or destroy vested rights; and
1271 
(b) clarify [legislative intent] application of the law.
1272 
Section 12.  Section 35A-8-1602 is amended to read:
1273 
35A-8-1602 . Uintah Basin Revitalization Fund -- Deposits and contents.
1274 
(1) In order to maximize the long-term benefit of severance taxes derived from lands held
1275 
in trust by the United States for the Tribe and [its] the Tribe's members by fostering
1276 
funding mechanisms that will, consistent with sound financial practices, result in the
1277 
greatest use of financial resources for the greatest number of citizens of the Uintah
1278 
Basin, and in order to promote cooperation and coordination between the state, its
1279 
political subdivisions, Indian tribes, and individuals, firms, and business organizations
1280 
engaged in the development of oil and gas interests held in trust for the Tribe and [its] the
1281 
Tribe's members, there is created an expendable special revenue fund entitled the
1282 
"Uintah Basin Revitalization Fund."
1283 
(2) The fund consists of all money deposited to the Revitalization Fund under this part and
1284 
Section 59-5-116.
1285 
(3)(a) The Revitalization Fund shall earn interest.
1286 
(b) All interest earned on fund money shall be deposited into the fund.
- 38 - Enrolled Copy	H.B. 394
1287 
Section 13.  Section 35A-8-1703 is amended to read:
1288 
35A-8-1703 . Purpose.
1289 
[(1)] The purpose of this part is to:
1290 
[(a)] (1) maximize the long-term benefit of state severance taxes derived from lands in Utah
1291 
held in trust by the United States for the Navajo Nation and its members by fostering
1292 
funding mechanisms that will, consistent with sound financial practices, result in the
1293 
greatest use of financial resources for the greatest number of citizens of San Juan
1294 
County; and
1295 
[(b)] (2) promote cooperation and coordination between the state, its political subdivisions,
1296 
Indian tribes, and individuals, firms, and business organizations engaged in the
1297 
development of oil and gas interests in Utah held in trust by the United States for the
1298 
Navajo Nation and its members.
1299 
[(2) Notwithstanding Subsection (1), the fund:]
1300 
[(a) consists of state severance tax money to be spent at the discretion of the state; and]
1301 
[(b) does not constitute a trust fund.]
1302 
Section 14.  Section 35A-8-1704 is amended to read:
1303 
35A-8-1704 . Navajo Revitalization Fund.
1304 
(1)(a) There is created an expendable special revenue fund called the "Navajo
1305 
Revitalization Fund."
1306 
(b) The revitalization fund shall consist of:
1307 
(i) money deposited to the revitalization fund under this part;
1308 
(ii) money deposited to the revitalization fund under Section 59-5-119; and
1309 
(iii) any loan repayment or interest on a loan issued under this part.
1310 
(2)(a) The revitalization fund shall earn interest.
1311 
(b) The interest earned on revitalization fund money shall be deposited into the fund.
1312 
(3) Beginning for fiscal year 2010-11, the division may use revitalization fund money for
1313 
the administration of the revitalization fund, but this amount may not exceed 4% of the
1314 
annual receipts to the revitalization fund.
1315 
(4) The fund:
1316 
(a) consists of state severance tax money to be spent at the discretion of the state; and
1317 
(b) does not constitute a trust fund.
1318 
Section 15.  Section 53B-9-101 is amended to read:
1319 
53B-9-101 . Legislative findings on higher education for senior citizens and
1320 
veterans -- Tuition exemption -- Quarterly registration fee.
- 39 - H.B. 394	Enrolled Copy
1321 
(1) The Legislature finds that substantial benefits would accrue to the state, as well as those
1322 
directly involved, through making higher education more accessible to senior citizens
1323 
and veterans who generally find themselves with more time for learning but with less
1324 
funds for such purposes.
1325 
(2) [It is intended that an ] An institution of higher education shall allow Utah residents who
1326 
have reached 62 years [of age] old or are veterans as defined in Section 68-3-12.5 to
1327 
enroll at the institution, in classes for which they may be qualified, on the basis of
1328 
surplus space in regularly scheduled classes and in accordance with this chapter and
1329 
implementing rules. [ ]These persons are exempt from tuition and other charges, except
1330 
for a quarterly registration fee established by the board.
1331 
Section 16.  Section 53E-4-301.5 is amended to read:
1332 
53E-4-301.5 . Statewide assessment.
1333 
[(1) In enacting this part, the Legislature intends to determine the effectiveness of school
1334 
districts and schools in assisting students to master the fundamental educational skills
1335 
toward which instruction is directed.]
1336 
[(2)] The state board shall ensure that a statewide assessment provides the public, the
1337 
Legislature, the state board, school districts, public schools, and school teachers with:
1338 
[(a)] (1) evaluative information regarding the various levels of proficiency achieved by
1339 
students, so that they may have an additional tool to plan, measure, and evaluate the
1340 
effectiveness of programs in the public schools; and
1341 
[(b)] (2) information to recognize excellence and to identify the need for additional
1342 
resources or to reallocate educational resources in a manner to ensure educational
1343 
opportunities for all students and to improve existing programs.
1344 
Section 17.  Section 54-5-1.5 is amended to read:
1345 
54-5-1.5 . Special regulation fee -- Supplemental Levy Committee --
1346 
Supplemental fee -- Fee for electrical cooperatives.
1347 
(1) Legislative findings:
1348 
(a) A special fee to defray the cost of regulation is imposed upon all public utilities
1349 
subject to the jurisdiction of the Public Service Commission.
1350 
(b) The special fee is in addition to any charge now assessed, levied, or required by law.
1351 
(2)(a) The executive director of the Department of Commerce shall determine the
1352 
special fee for the Department of Commerce.
1353 
(b) The chair of the Public Service Commission shall determine the special fee for the
1354 
Public Service Commission.
- 40 - Enrolled Copy	H.B. 394
1355 
(c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
1356 
the preceding calendar year derived from each public utility's business and operations
1357 
during that period within this state, excluding income derived from interstate
1358 
business.  Gross operating revenue shall not include income to a wholesale electric
1359 
cooperative derived from the sale of power to a rural electric cooperative which
1360 
resells that power within the state.
1361 
(3)(a) The executive director of the Department of Commerce shall notify each public
1362 
utility subject to the provisions of this chapter of the amount of the fee.
1363 
(b) The fee is due and payable on or before July 1 of each year.
1364 
(4)(a) There is created a restricted account within the General Fund known as the Public
1365 
Utility Regulatory Restricted Account.
1366 
(b) Notwithstanding Subsection 13-1-2(3)(c), the Department of Commerce shall deposit
1367 
a fee assessed under this section into the Public Utility Regulatory Restricted
1368 
Account.
1369 
(c) Within appropriations by the Legislature:
1370 
(i) the Department of Commerce may use the funds in the Public Utility Regulatory
1371 
Restricted Account to administer:
1372 
(A) the Division of Public Utilities; and
1373 
(B) the Office of Consumer Services;
1374 
(ii) the Public Service Commission may use the funds in the Public Utility
1375 
Regulatory Restricted Account to administer the Public Service Commission; and
1376 
(iii) the Division of Public Utilities may use the funds in the Public Utility
1377 
Regulatory Restricted Account to administer the Utility Bill Assistance Program
1378 
created under Section 54-4-42.
1379 
(d) At the end of each fiscal year, the director of the Division of Finance shall transfer
1380 
into the General Fund any balance in the Public Utility Regulatory Restricted
1381 
Account in excess of $3,000,000.
1382 
(5)(a) [The Legislature intends that the public] Subject to Subsection (5)(b), public
1383 
utilities shall provide [all of the ]funds for the administration, support, and
1384 
maintenance of:
1385 
(i) the Public Service Commission;
1386 
(ii) state agencies within the Department of Commerce involved in the regulation of
1387 
public utilities; and
1388 
(iii) expenditures by the attorney general for utility regulation.
- 41 - H.B. 394	Enrolled Copy
1389 
(b) [Notwithstanding Subsection (5)(a), the ] The fee imposed by Subsection (1) [shall ] 
1390 
may not exceed the greater of:
1391 
(i)(A) for a public utility other than an electrical cooperative, .3% of the public
1392 
utility's gross operating revenues for the preceding calendar year; or
1393 
(B) for an electrical cooperative, .15% of the electrical cooperative's gross
1394 
operating revenues for the preceding calendar year; or
1395 
(ii) $50.
1396 
(6)(a) There is created a Supplemental Levy Committee to levy additional assessments
1397 
on public utilities when unanticipated costs of regulation occur in any fiscal year.
1398 
(b) The Supplemental Levy Committee shall consist of:
1399 
(i) one member selected by the executive director of the Department of Commerce;
1400 
(ii) one member selected by the chairman of the Public Service Commission;
1401 
(iii) two members selected by the three public utilities that paid the largest percent of
1402 
the current regulatory fee; and
1403 
(iv) one member selected by the four appointed members.
1404 
(c)(i) The members of the Supplemental Levy Committee shall be selected within 10
1405 
working days after the executive director of the Department of Commerce gives
1406 
written notice to the Public Service Commission and the public utilities that a
1407 
supplemental levy committee is needed.
1408 
(ii) If the members of the Supplemental Levy Committee have not been appointed
1409 
within the time prescribed, the governor shall appoint the members of the
1410 
Supplemental Levy Committee.
1411 
(d)(i) During any state fiscal year, the Supplemental Levy Committee, by a majority
1412 
vote and subject to audit by the state auditor, may impose a supplemental fee on
1413 
the regulated utilities for the purpose of defraying any increased cost of regulation.
1414 
(ii) The supplemental fee imposed upon the utilities shall equal a percentage of their
1415 
gross operating revenue for the preceding calendar year.
1416 
(iii) The aggregate of all fees, including any supplemental fees assessed, shall not
1417 
exceed .3% of the gross operating revenue of the utilities assessed for the
1418 
preceding calendar year.
1419 
(iv) Payment of the supplemental fee is due within 30 days after receipt of the
1420 
assessment.
1421 
(v) The utility may, within 10 days after receipt of assessment, request a hearing
1422 
before the Public Service Commission if it questions the need for, or the
- 42 - Enrolled Copy	H.B. 394
1423 
reasonableness of, the supplemental fee.
1424 
(e)(i) Any supplemental fee collected to defray the cost of regulation shall be
1425 
transferred to the state treasurer as a departmental collection.
1426 
(ii) Supplemental fees are excess collections, credited according to the procedures of
1427 
Section 63J-1-105.
1428 
(iii) Charges billed to the Department of Commerce by any other state department,
1429 
institution, or agency for services rendered in connection with regulation of a
1430 
utility shall be credited by the state treasurer from the special or supplemental fees
1431 
collected to the appropriations account of the entity providing that service
1432 
according to the procedures provided in Title 63J, Chapter 1, Budgetary
1433 
Procedures Act.
1434 
(7)(a) For purposes of this section, "electrical cooperative" means:
1435 
(i) a distribution electrical cooperative; or
1436 
(ii) a wholesale electrical cooperative.
1437 
(b) Subject to Subsection (7)(c), if the regulation of one or more electrical cooperatives
1438 
causes unanticipated costs of regulation in a fiscal year, the commission may impose
1439 
a supplemental fee on the one or more electrical cooperatives in this state responsible
1440 
for the increased cost of regulation.
1441 
(c) The aggregate of all fees imposed under this section on an electrical cooperative in a
1442 
calendar year shall not exceed the greater of:
1443 
(i) .3% of the electrical cooperative's gross operating revenues for the preceding
1444 
calendar year; or
1445 
(ii) $50.
1446 
Section 18.  Section 59-12-202 is amended to read:
1447 
59-12-202 . Legislative findings -- Commission authority.
1448 
[(1) It is the purpose of this part to provide the counties, cities, and towns of the state with
1449 
an added source of revenue and to thereby assist them to meet their growing financial
1450 
needs. It is the legislative intent that this added revenue be used to the greatest possible
1451 
extent by the counties, cities, and towns to finance their capital outlay requirements and
1452 
to service their bonded indebtedness.]
1453 
[(2)] (1) [It is the purpose of this part to provide an orderly and efficient system of
1454 
administering, operating, and enforcing the state and local option sales and use tax. ]
1455 
The Legislature finds that[ ] :
1456 
(a) intervention by counties, cities, and towns into the administration, operation, and
- 43 - H.B. 394	Enrolled Copy
1457 
enforcement of the local sales and use tax, particularly in the hearing and appeal
1458 
process, increases the cost of administering both the local option sales and use tax
1459 
and the state sales and use tax proceedings, and substantially delays the receipt of
1460 
revenues for counties, cities, towns, and the state[.  The Legislature finds that ] ; and
1461 
(b) the interests and concerns of counties, cities, and towns can be adequately protected
1462 
through the commission's enforcement efforts.[ It is therefore the Legislature's intent
1463 
to grant the commission ]
1464 
(2) The commission has exclusive authority to[ ] :
1465 
(a) administer, operate, and enforce the local option sales and use tax, without
1466 
interference from counties, cities, [and] or towns[ and to ] ; and
1467 
(b) allow intervention by [any] a county, city, or town only in the limited circumstances
1468 
where a particular hearing or appeal may result in a significant lessening of the
1469 
revenues of [any] a single county, city, or town.
1470 
Section 19.  Section 59-12-701 is amended to read:
1471 
59-12-701 . Legislative findings.
1472 
      The Utah Legislature finds and declares that:
1473 
(1) [Recreational ] recreational and zoological facilities and the botanical, cultural, and
1474 
zoological organizations of the state of Utah enhance the quality of life of Utah's
1475 
citizens, as well as the continuing growth of Utah's tourist, convention, and recreational
1476 
industries[.] ;
1477 
(2) Utah was the first state in this nation to create and financially support a state arts agency
1478 
and remains committed to the nurturing and growth of cultural pursuits[.] ;
1479 
(3) Utah has provided, and intends to continue, the financial support of recreational and
1480 
zoological facilities and the botanical, cultural, and zoological organizations of this state[.] ;
1481 
(4) [The ] the state's support of its recreational and zoological facilities and its botanical,
1482 
cultural, and zoological organizations has not been sufficient to assure the continuing
1483 
existence and growth of these facilities and organizations, and the Legislature believes
1484 
that local government may wish to play a greater role in the support of these
1485 
organizations[.] ; and
1486 
[(5) Without jeopardizing the state's ongoing support of its recreational and zoological
1487 
facilities and its botanical, cultural, and zoological organizations, the Legislature intends
1488 
to permit the counties of the state of Utah to enhance public financial support of Utah's
1489 
publicly owned or operated recreational and zoological facilities, and botanical, cultural,
1490 
and zoological organizations owned or operated by institutions or private nonprofit
- 44 - Enrolled Copy	H.B. 394
1491 
organizations, through the imposition of a county sales and use tax.]
1492 
[(6)] (5) [In ] in a county of the first class, it is necessary and appropriate to allocate a tax
1493 
imposed under this part in a manner that provides adequate predictable support to a fixed
1494 
number of botanical and cultural organizations and that gives the county legislative body
1495 
discretion to allocate the tax revenues to other botanical and cultural organizations.
1496 
Section 20.  Section 59-12-1401 is amended to read:
1497 
59-12-1401 . Purpose statement -- Definitions -- Scope of part.
1498 
(1) [The purpose of] In relation to the tax imposed by this part[ is the same for cities and
1499 
towns as is stated in Section 59-12-701 for counties] , the legislative findings described
1500 
in Section 59-12-701 apply similarly to cities and towns as the findings apply to counties.
1501 
(2) The definitions of Section 59-12-702 are incorporated into this part.
1502 
(3) This part applies only to a city or town that is located within a county of the second,
1503 
third, fourth, fifth, or sixth class as designated in Section 17-50-501.
1504 
Section 21.  Section 63A-3-104 is amended to read:
1505 
63A-3-104 . Appropriation for contingency purposes -- Procedure for allotment.
1506 
(1)(a) The Legislature shall determine the amount to be appropriated for contingency
1507 
purposes, as well as the limits on the amount of any one allotment or total allotments
1508 
to any one agency.
1509 
(b) In advance of making [any such] an allotment described in Subsection (1), the
1510 
governor shall notify the Legislature through the Office of the Legislative Fiscal
1511 
Analyst, of [his or her intent to do so] the governor's intent to make an allotment, of
1512 
the amount to be allotted, and the justification for the allotment.
1513 
(2) [It is the intent of the Legislature that such transfers] Allotments described in this section:
1514 
(a) shall be made only for unforeseeable emergencies[, and allotments shall ] ; and
1515 
(b) may not be made to correct poor budgetary practices or for purposes having no
1516 
existing appropriation or authorization.
1517 
Section 22.  Section 63N-1a-305 is amended to read:
1518 
63N-1a-305 . Incentive review process.
1519 
      The [Legislature intends that the office will] office shall develop an incentives review
1520 
process under the direction of the speaker of the House and the president of the Senate.
1521 
Section 23.  Section 64-9b-5 is amended to read:
1522 
64-9b-5 . Use of earnings from jobs.
1523 
      [It is the legislative intent, and inmates are encouraged, ] Inmates are encouraged to use
1524 
their personal earnings from jobs created under this chapter for the following:
- 45 - H.B. 394	Enrolled Copy
1525 
(1) for restitution to the victims of the inmate's criminal offense, where applicable;
1526 
(2) for support of the inmate's family, where applicable;
1527 
(3) for the inmate's personal use; and
1528 
(4) for reimbursement of security, operational, and other costs incurred by the Utah
1529 
Correctional Industries Division of the department in administering these projects.
1530 
Section 24.  Section 64-13a-2 is amended to read:
1531 
64-13a-2 . Division duties.
1532 
      [It is the intent of the Legislature in this chapter to:]
1533 
[(1) create a] The Division of Correctional Industries[ which]:
1534 
[(a)] (1) is a self-supporting organization;
1535 
[(b)] (2) is profit-oriented;
1536 
[(c)] (3) generates revenue for its operations and capital investment;[ and]
1537 
[(d)] (4) assumes responsibility for training offenders in general work habits, work skills,
1538 
and specific training skills that increase their employment prospects when released;
1539 
[(2)] (5) shall provide an environment for the operation of correctional industries that
1540 
closely resembles the environment for the business operations of a private corporate
1541 
entity; and
1542 
[(3)] (6) [make the Division of Correctional Industries] is responsible for and accountable to
1543 
the Legislature and to the governor for correctional industries programs in this state.
1544 
Section 25.  Section 72-5-201 is amended to read:
1545 
72-5-201 . Legislative finding -- Ensuring access.
1546 
(1)(a) The Legislature [recognizes] finds that highways provide tangible benefits to
1547 
private and public lands of the state by providing access, allowing development, and
1548 
facilitating production of income.
1549 
(b) Many of those highways traverse state lands, including lands held by the state in trust
1550 
for the school children and public institutions of the state.
1551 
(c) Many of the existing highways have been previously established without an official
1552 
grant of an easement or right of entry from this state, yet these highways often are the
1553 
only access to private and public lands of the state.
1554 
(2) The [Legislature intends to establish a means for ensuring] state shall ensure continued
1555 
access to the private and public lands of the state for the good of the people, while
1556 
fulfilling its fiduciary responsibilities toward the schoolchildren by protecting their trust
1557 
holdings against loss.
1558 
Section 26.  Section 73-10-1 is amended to read:
- 46 - Enrolled Copy	H.B. 394
1559 
73-10-1 . State's policy -- Creation of revolving fund -- General construction of
1560 
chapter.
1561 
(1)(a) The Legislature restates the following, previously-declared policies of the state of
1562 
Utah[ has heretofore declared]:
1563 
(i) [by Section 73-1-1, Utah Code Annotated 1953, that, ]"All waters in this state,
1564 
whether above or under the ground, are hereby declared to be the property of the
1565 
public, subject to all existing rights to the use thereof";
1566 
(ii) [by Section 73-1-3, Utah Code Annotated 1953, that ]"Beneficial use shall be the
1567 
basis, the measure and the limit of all rights to the use of water in this state"; and
1568 
(iii) [by Section 17B-2a-1002 that the policy of the state is, ]to "[ ]obtain from water
1569 
in the state the highest duty for domestic uses and irrigation of lands in the state
1570 
within the terms of applicable interstate compacts and other law."
1571 
(b) The Legislature by this chapter reiterates and reaffirms [such] the declaration of the
1572 
public policy of the state of Utah, described in Subsection (1)(a).
1573 
(2) It is further declared to be the policy of this chapter and of the state of Utah, and the [
1574 
legislature] Legislature recognizes:
1575 
(a) that by construction of projects based upon sound engineering the waters within the
1576 
various counties of the state of Utah can be saved from waste and increased in
1577 
efficiency of beneficial use by 25% to 100%;
1578 
(b) that because of well-known conditions such as low prices and lack of market for
1579 
farm products, particularly the inefficiency of water supply because of lack of late
1580 
season water and consequent lack of financial strength, water users in small
1581 
communities have been unable to build projects that would provide full conservation
1582 
and beneficial use for the limited water supply in this semiarid land;
1583 
(c) that water, as the property of the public, should be so managed by the public that it
1584 
can be put to the highest use for public benefit;
1585 
(d) that Congress of the United States has provided for the building of larger water
1586 
conservation projects throughout the semiarid states, payment of the capital costs
1587 
without interest to be made by the water users upon the basis of a fair portion of crop
1588 
returns;
1589 
(e) that the Congress of the United States has established in the department of interior
1590 
and in the department of agriculture, various agencies having authority to develop,
1591 
protect, and aid in putting to beneficial use the land and water resources of the United
1592 
States and to cooperate with state agencies having similar authority;
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1593 
(f) that the interests of the state of Utah require that means be provided for close
1594 
cooperation between all state and federal agencies to the end that the underground
1595 
waters and waters of the small streams of the state, and the lands thereunder, can be
1596 
made to yield abundantly and increase the income and well-being of the citizens of
1597 
the state; and
1598 
(g) that it appears to be sound public policy for the state of Utah to provide a revolving
1599 
fund, to be increased at each legislative session, to the end that every mountain
1600 
stream and every water resource within the state can be made to render the highest
1601 
beneficial service, such fund to be so administered that no project will be built except
1602 
upon expert engineering, financial, and geological approval.
1603 
[(3) All of the provisions of this chapter shall be liberally construed so as to carry out and
1604 
put into force and effect the purposes and policies as hereinabove set forth.]
1605 
Section 27.  Section 77-37-1 is amended to read:
1606 
77-37-1 . Legislative findings.
1607 
(1)(a) The Legislature recognizes the duty of victims and witnesses of crime to fully and
1608 
voluntarily cooperate with law enforcement and prosecutorial agencies, the essential
1609 
nature of citizen cooperation to state and local law enforcement efforts, and the
1610 
general effectiveness and well-being of the criminal justice system of this state.[ In
1611 
this chapter, the Legislature declares its intent to]
1612 
(b) The state shall ensure that all victims and witnesses of crime are treated with dignity,
1613 
respect, courtesy, and sensitivity, and that the rights extended in this chapter to
1614 
victims and witnesses of crime are honored and protected by law in a manner no less
1615 
vigorous than protections afforded criminal defendants.
1616 
(2)(a) The Legislature finds it is necessary to provide child victims and child witnesses
1617 
with additional consideration and different treatment than that usually afforded to
1618 
adults.[ ]
1619 
(b) The treatment should ensure that children's participation in the criminal justice
1620 
process be conducted in the most effective and least traumatic, intrusive, or
1621 
intimidating manner.
1622 
Section 28.  Section 78B-6-102 is amended to read:
1623 
78B-6-102 . Legislative findings -- Best interest of child -- Interests of each party.
1624 
(1) [It is the intent and desire of the Legislature that in ] In every adoption, the best interest
1625 
of the child should govern and be of foremost concern in [the] a court's determination.
1626 
(2) The court shall make a specific finding regarding the best interest of the child, taking
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1627 
into consideration information provided to the court pursuant to the requirements of this
1628 
chapter relating to the health, safety, and welfare of the child and the moral climate of
1629 
the potential adoptive placement.
1630 
(3) The Legislature finds that the rights and interests of all parties affected by an adoption
1631 
proceeding must be considered and balanced in determining what constitutional
1632 
protections and processes are necessary and appropriate.
1633 
(4) The Legislature specifically finds that it is not in a child's best interest to be adopted by
1634 
a person or persons who are cohabiting in a relationship that is not a legally valid and
1635 
binding marriage under the laws of this state.  Nothing in this section limits or prohibits
1636 
the court's placement of a child with a single adult who is not cohabiting or a person
1637 
who is a relative of the child or a recognized placement under the Indian Child Welfare
1638 
Act, 25 U.S.C. Sec. 1901 et seq.
1639 
(5) The Legislature also finds that:
1640 
(a) the state has a compelling interest in providing stable and permanent homes for
1641 
adoptive children in a prompt manner, in preventing the disruption of adoptive
1642 
placements, and in holding parents accountable for meeting the needs of children;
1643 
(b) an unmarried mother, faced with the responsibility of making crucial decisions about
1644 
the future of a newborn child, is entitled to privacy, and has the right to make timely
1645 
and appropriate decisions regarding her future and the future of the child, and is
1646 
entitled to assurance regarding the permanence of an adoptive placement;
1647 
(c) adoptive children have a right to permanence and stability in adoptive placements;
1648 
(d) adoptive parents have a constitutionally protected liberty and privacy interest in
1649 
retaining custody of an adopted child;
1650 
(e) an unmarried biological father has an inchoate interest that acquires constitutional
1651 
protection only when he demonstrates a timely and full commitment to the
1652 
responsibilities of parenthood, both during pregnancy and upon the child's birth; and
1653 
(f) the state has a compelling interest in requiring unmarried biological fathers to
1654 
demonstrate commitment by providing appropriate medical care and financial
1655 
support and by establishing legal paternity, in accordance with the requirements of
1656 
this chapter.
1657 
(6)(a) In enacting this chapter, the Legislature has prescribed the conditions for
1658 
determining whether an unmarried biological father's action is sufficiently prompt
1659 
and substantial to require constitutional protection.
1660 
(b) If an unmarried biological father fails to grasp the opportunities to establish a
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1661 
relationship with his child that are available to him, his biological parental interest
1662 
may be lost entirely, or greatly diminished in constitutional significance by his failure
1663 
to timely exercise it, or by his failure to strictly comply with the available legal steps
1664 
to substantiate it.
1665 
(c) A certain degree of finality is necessary in order to facilitate the state's compelling
1666 
interest.  The Legislature finds that the interests of the state, the mother, the child,
1667 
and the adoptive parents described in this section outweigh the interest of an
1668 
unmarried biological father who does not timely grasp the opportunity to establish
1669 
and demonstrate a relationship with his child in accordance with the requirements of
1670 
this chapter.
1671 
(d) The Legislature finds no practical way to remove all risk of fraud or
1672 
misrepresentation in adoption proceedings, and has provided a method for absolute
1673 
protection of an unmarried biological father's rights by compliance with the
1674 
provisions of this chapter.  In balancing the rights and interests of the state, and of all
1675 
parties affected by fraud, specifically the child, the adoptive parents, and the
1676 
unmarried biological father, the Legislature has determined that the unmarried
1677 
biological father is in the best position to prevent or ameliorate the effects of fraud
1678 
and that, therefore, the burden of fraud shall be borne by him.
1679 
(e) An unmarried biological father has the primary responsibility to protect his rights.
1680 
(f) An unmarried biological father is presumed to know that the child may be adopted
1681 
without his consent unless he strictly complies with the provisions of this chapter,
1682 
manifests a prompt and full commitment to his parental responsibilities, and
1683 
establishes paternity.
1684 
(7) The Legislature finds that an unmarried mother has a right of privacy with regard to her
1685 
pregnancy and adoption plan, and therefore has no legal obligation to disclose the
1686 
identity of an unmarried biological father prior to or during an adoption proceeding, and
1687 
has no obligation to volunteer information to the court with respect to the father.
1688 
Section 29.  Repealer.
1689 
This bill repeals:
1690 
Section 10-1-101, Short title.
1691 
Section 10-6-102, Legislative intent -- Purpose of chapter.
1692 
Section 26B-5-502, Statement of legislative intent.
1693 
Section 26B-9-102, Legislative intent -- Liberal construction.
1694 
Section 34A-6-102, Legislative intent.
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1695 
Section 35A-8-1701, Title.
1696 
Section 53B-8a-114, Liberal construction.
1697 
Section 63G-2-102, Legislative intent.
1698 
Section 67-16-2, Purpose of chapter.
1699 
Section 30.  Effective Date.
1700 
This bill takes effect on May 7, 2025.
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