Business, Labor, and Economic Development Interim Committee
Members Present:
Sen. L. Steven Poulton, Chair
Rep. Peter C. Knudson, Chair
Sen. David L. Buhler
Sen. Eddie "Ed" P. Mayne Sen. Michael G. Waddoups
Sen. Blaze D. Wharton
Rep. Gerry A. Adair
Rep. Eli H. Anderson
Rep. Patrice M. Arent
Rep. Afton B. Bradshaw
Rep. Katherine M. Bryson
Rep. Don E. Bush
Rep. Bradley T. Johnson
Rep. Brad King
Rep. Loraine T. Pace
Rep. Glenn L. Way
Members Absent:
Rep. Steve Barth
Members Excused:
Rep. Wayne A. Harper
Rep. David L. Zolman, Sr.
Staff Present:
Mary Catherine Perry,
Research Analyst
Patricia Owen, Associate General Counsel Beverlee LeCheminant,
Legislative Secretary
Note: Names of others present and copies of information distributed at the meeting are on file in the Office of Legislative Research and General Counsel.
1. Call to Order - Sen. Poulton called the meeting to order at 2:10 p.m.
MOTION: Rep. Arent moved to approve the minutes of the April 22, 1998 meeting. The motion passed unanimously.
2. Committee Business - Ms. Mary Catherine Perry, Research Analyst, distributed a copy of a memo to Legislative Management Committee from the chairs dated May 5, 1998, on the committee's proposed interim study plan. She indicated that the Legislative Management Committee approved the proposed study plan at its meeting on Tuesday, May 19th.
3. Impact Fees - Ms. Mary Catherine Perry, Research Analyst, distributed an overview of impact fees and reviewed it with the committee.
Mr. Dan Lofgren, Home Builders Association of Utah, indicated that the association feels that some of the problems related to impact fees are: the way the fees are being assessed; the question of double taxation; and how a builder seeks redress if the builder thinks an impact fee is being unjustly imposed. The association has had discussions with its associates in cities and towns and have found that there is a commitment to try and resolve some of these issues. The association would like to continue working toward a compromise.
Mr. Blaine Walker, Utah Association of Realtors, stated that impact fees are a consumer issue because the consumers ultimately pay these fees. The association is hopeful that it can meet with the League of Cities and Towns and work out some solutions to the issues regarding impact fees.
Mr. Tom Dolan, Mayor, Sandy City and First Vice President of Utah League of Cities and Towns, said the League had some discussions with the Homebuilders Association of Utah prior to and during the legislative session and would like to continue those discussions to create some kind of mechanism to police impact fee violations. He said he does not believe new legislation is necessary at this time, but feels that the parties involved can reach an agreement regarding impact fees.
Mr. Gary Crane, City Attorney, Layton City, indicated that Layton City is willing to work together with the realtors and homebuilders to try and resolve the impact fee violations by self- policing. Mr. Crane also said that he would support legislation on arbitration.
Mr. Eric Schifferli, Chairman of the Summit County Commission, stated that the Legislature has put a good law into effect by codifying the Banbury decision. He suggested that if there are abuses of impact fees, to allow those abuses to be addressed either by arbitration or some other mechanism.
Mr. Rex Osburn, Manager of the Snyderville Basin Sewer and Improvement District, said that the Utah Impact Fees Act required compliance by governmental entities as of July 1, 1997, and he questions whether enough time has passed for the Legislature to decide if the act has worked effectively. He indicated that if, in fact, there are violations to current law, passing more legislation does not ensure better compliance. He said he would like to see the law remain the same which is to allow each community to make the decision for themselves how it wants to proceed with infrastructure.
4. Landlord Rights When Unlawful Activities Occur - Ms. Patricia Owen, Associate General Counsel, distributed a summary of the draft legislation "Eviction for Illegal Activities," and a copy of a working draft of legislation.
Sen. Steele said that the legislation offered minor modifications to the current nuisance law in order to provide a safer environment to protect the tenants. Sen. Steele indicated that the legislation is in draft form and he anticipates further refinement to the legislation as issues are discussed.
Mr. Bill Holthaus, Assistant Chief, Clearfield Police, distributed a handout titled "Eviction for Illegal Activities Bill" and gave a brief overview of the handout. He indicated that Utah has in general an adequate nuisance law in dealing with eviction for illegal activities, but it is not always enforced in a timely fashion. The proposed changes would move many of these eviction cases to
the justice courts; maintain current limits on recovery actions but have cases heard in about three to
five days; have judgments executed immediately after the adjudication has finished; and include
weapons violations in the nuisance statute.
Mr. Martin S. Blaustein, Utah Legal Services, said the legislation talks about landlord rights,
but says nothing about tenant rights. He said that the legislation is speeding the process in making
it easier for landlords to evict those who already have process where they can protect their tenants
by filing the bond.
Mr. Rainer Huck, President, Salt Lake Apartment Association, said the association agrees
in principle with the intent of this legislation and that it is in everyone's best interest to eliminate
nuisances as quickly as possible. The association's only concern is that enforcement of this
legislation does not fall on the property owners. He suggested three things which need to be
included in the legislation: 1) streamlining the mechanics of the process; 2) addressing the bonding
process; and 3) having the clerks conform documents to avoid the wait for judges to act on them.
Mr. Stephen Preston, Oak Financial Services, raised questions regarding enforcement of the
Utah State Fair Housing laws administered by the Anti-discrimination Division. Mr. Preston said
he is asking that there be some protection for property owners and he would like to have the
committee consider this issue in the future. Representative Way volunteered to pursue this issue.
Mr. Richard Brimhall, member of the Northern Utah Apartment Association, said that the
Apartment Association feels that it needs the help of the judicial system in evicting tenants who are
nuisances.
Mr. Mark Smith, Housing Coordinator, Utah Independent Living Center, cautioned the
committee to be careful not to take away the bracings that protect people, especially people with low
incomes or people with disabilities.
5. Forfeiture Law - Ms. Patricia Owen distributed and gave a brief overview of some basic issues of civil forfeiture.
Rep. John Valentine told the committee that this issue is to try and decide where the line
should be constitutionally drawn between civil forfeitures versus the right of society to be protected.
Mr. Clark A. Harms, Deputy District Attorney for Salt Lake County, Special Investigations,
distributed and overviewed a report on Criminal Assets Seizure and Forfeiture. He indicated that
when a crucial for forfeiture case currently before the state's Supreme Court is decided, the State
Law Enforcement Committee would like to use that decision to relook at forfeiture statutes including
whether to establish more uniform forfeiture statutes.
Mr. Mitch Ingersoll, Lieutenant Officer, Alcohol Enforcement Section, Department of Public
Safety, discussed seizure procedures as part of the enforcement of Utah's liquor laws.
Mr. Michael Hines, Department of Commerce, Division of Securities, raised issues
concerning the inability to use forfeiture procedures where the underlying criminal conduct is a
single fraudulent act.
Mr. Steven Stromness, expressed concern that in cases of forfeiture the owner of the property
may not have knowledge of what subjected the owner to forfeiture; statutes should not state that no
property rights exist in specified property; and sometimes the proceeds of the forfeiture may go to
the seizing law enforcement agency. Mr. Stromness recommended that to avoid a conflict of
interest, proceeds should go to the General Fund or to a crime victim reparations fund.
Mr. Arnold Gaunt, Forfeiture Endangers American Rights, distributed a flyer "Asset
Forfeiture Abuse Can and Does Happen in Utah." He indicated that he feels asset forfeiture is
undesirable because it makes the drug problem worse, gives drug dealers the opportunity to reduce
assets, and gives agencies the incentive to try and pursue the forfeiture of assets rather than the
criminals.
Ms. Sharon Lynch described a case which involved her parents being evicted from their
home on the suspect that a neighbor had said their house was a drug house. She stated that some
provisions need to be set up to protect innocent individuals.
Mr. Kurt Torgerson, Attorney General's Office, stated that forfeiture of assets is necessary
to remove the profit incentives for crime.
Mr. Gary Thorup, Holme, Roberts, and Owen, said that, similar to civil forfeiture, the drug
stamp tax law in the state needs to be looked at.
6. Affordable Housing Issues - Ms. Mary Catherine Perry distributed background information on funding for affordable housing and told the committee that the two issues the committee will be
studying are expiring federal housing contracts and other options to affordable housing.
Expiring Housing Contracts - Rep. Dave Jones said that the expiration of federal housing contracts is going to have a major impact on housing in Utah and will compound a problem that is
already difficult. Over the next six years, there will be thousands of housing units where owners
may make the decision that it is no longer economical for them to hold those units as affordable
units.
Mr. Kerry Bate, Division of Community Development, Department of Community and
Economic Development, distributed a report which shows the affordable subsidized housing in the
state. He indicated that there are 1,510 units with expiring affordability in Salt Lake City in the next
six years.
Ms. Rosemary Cappas, Director, Salt Lake City Housing Authority, said that it is time to look at putting some funds aside so that as units expire, the units could be bought by another affordable housing provider to keep them in the stream of affordability.
Affordable Housing Options - Rep. Becker said the problem of affordable housing has reached crisis proportions. He indicated that there are several options for communities to do to achieve improvement in their affordable housing situations, but the difficulty is that most communities do not have the technical or funding ability to work through this complex governmental arena to achieve the goals they want. He stated that he would like the committee to explore those options in a future meeting.
Mr. Richard Walker, Division of Community Development, Department of Community and Economic Development, stated that one of the biggest problems is the lack of public understanding. He indicated that some money needs to be made available for public relations work to educate the public about affordable housing issues.
Mr. Steve Erickson, Utah Housing Technical Assistance Program, distributed a handout of affordable housing options and indicated that the housing development is more of a local issue than a state issue, but the state needs to be an active partner. He suggested that the Legislature examine enabling legislation which would allow counties and cities to pool financial resources and keep them at the local level so they can address specific affordable housing needs in their communities.
Mr. David Spatafore, Utah League of Cities and Town, told the committee that there are three things that would help communities with affordable housing: 1) providing the communities with additional training on affordable housing issues; 2) providing communities with technical support; and 3) providing grants for the communities to be able to purchase computers.
Ms. Kay Fox, Salt Lake Community Action Program, said that last year the Legislature expressed good intent on affordable housing and yet the money was not forthcoming. She indicated that the Legislature needs to look at the fact that housing should be available and accessible.
7. Adjourn
MOTION: Rep. Adair moved to adjourn the meeting at 5:00 p.m. The motion passed unanimously.
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