§ 63E-1-402. Benefits to interested parties of an independent entity.

(1) If an independent entity is privatized, the following may not receive any benefit prohibited under Subsection (2):

(a) an interested party of the independent entity;

(b) an entity in which an interested party holds a business interest;

(c) a lobbyist of the independent entity; or

(d) an entity in which a lobbyist of the independent entity holds a business interest.

(2) If an independent entity is privatized:

(a) a person described in Subsection (1)(a) or (b) may not receive:

(i) compensation from an independent entity that is conditioned in whole or in part on:

(A) the passage, defeat, or amendment of legislative action related to privatization; or

(B) the approval, modification, or denial of an executive action related to privatization; or

(ii) any asset of the independent entity or its successor; and

(b) a person described in Subsection (1)(c) or (d) may not receive any:

(i) compensation that if received by the lobbyist would be in violation of Section 36-11-301; or

(ii) asset of the independent entity or its successor.

(3) Subsection (2)(a)(ii) does not apply to funds in a loan program administered by an independent entity if:

(a) the funds were provided by an entity other than the state or were derived from those funds, including loan payments, interest, and other charges paid by borrowers;

(b) the person described in Subsection (1)(a) or (b) who receives the funds assumes all duties and obligations of the independent entity:

(i) under the contract with the entity that provided the initial funding; and

(ii) relating to the loan program;

(c) separate records have been maintained regarding the use of the funds;

(d) the funds may only be used for purposes specified in an agreement with the entity that provided the initial funding; and

(e) the funds may only be transferred to a person described in Subsection (1)(a) or (b) if the transfer is approved by the entity that provided the initial funding.

Amended by Chapter 262, 2002 General Session