Utah Constitutional Revision Commission
Members Present:
Mr. Gayle McKeachnie, Chair Mr. Alan L. Sullivan, Vice Chair Rep. Afton B. Bradshaw Sen. Lane Beattie
Sen. Mike Dmitrich
Mr. Dallin W. Jensen
Rep. David M. Jones
Mr. W. Craig Jones
Mr. Morris Linton
Sen. Howard C. Nielson
Mr. Richard V. Strong
Dr. Jean Bickmore White
Members Absent:
Ms. Diana Allison
Rep. Melvin R. Brown
Justice Christine Durham
Mr. Kevin J. Worthen
Staff Present:
Mr. Jerry D. Howe,
Research Analyst
Mr. Robert H. Rees,
Associate General Counsel
Ms. Angela D. Kelley,
Secretary
Note: A list of others present and a copy of materials distributed in the meeting are on file in the Office of Legislative Research and General Counsel.
1. Call to Order and Approval of Minutes - Chair McKeachnie called the meeting to order at 9:03 am.
MOTION: Vice Chair Sullivan moved to approve the April 10, 1998 minutes. The motion passed unanimously with Sen. Lane Beattie and Dallin Jensen absent for the vote.
2. Discussion of draft language, Resolution Amending Local Government Article, 1999 DRAFT - Mr. Rees explained the Resolution Amending Local Government Article, 1999 draft and distributed the following handouts: "Comparison of Commission Draft and Utah League of Cities and Towns Draft," and "Comparison of Commission Draft and Utah Association of Counties Draft."
Rep. Jones questioned the relationship between the right of referendum and optional forms of government. Vice Chair Sullivan explained that the constitution establishes that the legislature provide for select optional forms of county governments but allows the people the right to approve or reject the form of government selected.
MOTION: Vice Chair Sullivan moved to amend Article XI, Section 4 as follows: "The Legislature shall by statute prescribe optional forms of county government and shall allow each county to select, subject to referendum in the manner provided by statute, the prescribed optional form that best serves its needs." The motion passed unanimously.
Rep. Bradshaw was concerned that there were not more options.
Mr. Brent Gardner, Utah Association of Counties (UAC), said that the association would like to allow a governing body to select any of the options provided in statute without a vote and allow other forms of government, not currently in statute, to be adopted with a vote.
Vice Chair Sullivan suggested that such a change would be substantially different from the current optional forms of government provision.
Mr. Richard Strong explained that the Political Subdivision's Interim Committee has been assigned to study the issue of optional forms of county government.
Mr. C. Jones suggested that Article XI, Section 4 be amended to read: "The Legislature shall by statute prescribe optional forms of county government or shall allow each county to select the form which best serves its needs, with a right of referendum as provided by statute."
MOTION: Rep. Bradshaw moved that the commission reconsider the action taken by Vice Chair Sullivan's motion concerning Article XI, Section 4. The motion to reconsider failed with Mr. C. Jones, Sen. Dmitrich, and Mr. Jensen voting in favor.
MOTION: Vice Chair Sullivan moved to approve Article XI, Sections 5 and 7 as drafted. The motion passed with Mr. C. Jones, and Sen. Nielson voting in opposition. Sen. Dmitrich was absent for the vote.
3. Presentation regarding intangible property tax -
Mr. O. William Asplund, Assistant Director, Office of Legislative Research and General Counsel, distributed "CY 1997 Total Taxable Value and Taxes Charged For All Major Classes (Except Fee-in-Lieu)," and discussed the information provided.
Mr. Rees presented an historical overview of intangible taxation of property in Utah. He discussed the WilTel Case, and H.B. 370, 1998 General Session, which, he said, excluded intangibles from the definition of property.
Mr. Lawrence C. Walters, Consultant, PhD, Marriot School of Management, Brigham Young University , discussed the state's approach to estimating value for purposes of taxation. He said three primary approaches are used to evaluate property: (1) the cost approach, (2) the stock and debt approach, and (3) the income approach. He explained that the methods and judgments employed by the Property Tax Division of the Utah Tax Commission are within the limits established by finance theory and current appraisal practices.
Representative John L. Valentine, Howard, Lewis & Peterson, discussed H.B. 370, "Property Tax - Intangible Exemption," which was adopted in the 1998 General Session and explained the difference between tangible and intangible property.
4. Discussion of Article XIV, Section 3 concerning property ownership requirement for bond elections - Mr. Howe suggested that the commission consider the language of Article XIV, Section 3 concerning the requirement that voters must have paid a property tax in the year preceding a bond election because it probably violates the Federal Constitution, is inoperative under Utah Case Law, and is inconsistent with Article IV, Section 7. He also explained the relationship between Article IV, Section 7 and Article I, Section 4.
MOTION: Sen. Nielson moved to approve the change in language as drafted in Article XIV, Section 3. The motion passed unanimously with Sen. Dmitrich absent for the vote.
MOTION: Dr. White moved to delete the last sentence of Article I, Section 4, "No property qualification shall be required of any person to vote, or hold office, except as provided in this Constitution." The motion passed unanimously with Sen. Beattie, Sen. Dmitrich, and Mr. Strong absent for the vote.
Chair McKeachnie suggested that Dr. White's recommendation be incorporated in the local government article.
5. Other Business - Mr. Mark Anderson, Utah Association of Special Districts, discussed options 1 through 4 contained in the draft of Article XI, Section 8. He said that the Utah Association of Special Districts' prefer either option 1 or 4. Mr. Anderson recommended a more generic option. He also recommended on page 9, line 8, of Article XI, Section 9, after "services," add "power generation, electric distribution".
In summation of the commission's discussion, Chair McKeachnie explained that option 1 seemed most appropriate.
Mr. Anderson recommended that the word "service" be inserted between "special" and "district" as the provided in bond counsel's proposals.
6. Adjourn
MOTION: Vice Chair Sullivan moved to adjourn the meeting at 12:07 p.m. The motion passed unanimously with Sen. Beattie, Sen. Dmitrich, and Mr. Linton absent for the vote.
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