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

   1. (a) an interested party of the independent entity;
   2. (b) an entity in which an interested party holds a business interest;
   3. (c) a lobbyist of the independent entity; or
   4. (d) an entity in which a lobbyist of the independent entity holds a business interest.

2. (2) If an independent entity is privatized:

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

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

         1. (A) the passage, defeat, or amendment of legislative action related to privatization; or
         2. (B) the approval, modification, or denial of an executive action related to privatization; or
      2. (ii) any asset of the independent entity or its successor; and

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

      1. (i) compensation that if received by the lobbyist would be in violation of Section 36-11-301; or
      2. (ii) asset of the independent entity or its successor.

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

   1. (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;

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

      1. (i) under the contract with the entity that provided the initial funding; and
      2. (ii) relating to the loan program;
   3. (c) separate records have been maintained regarding the use of the funds;
   4. (d) the funds may only be used for purposes specified in an agreement with the entity that provided the initial funding; and
   5. (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.

4. (4)

   1. (a) If an action described in Subsection 63E-1-401(5)(b)(i) or (ii) is taken under circumstances in which the independent entity is no longer functioning, the independent entity shall return to the Division of Finance any unused appropriations made to the independent entity by the Legislature.
   2. (b) The Division of Finance shall deposit funds received under Subsection (4)(a) into the General Fund.

Amended by Chapter 431, 2023 General Session