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MINUTES OF THE HOUSE
ECONOMIC DEVELOPMENT AND
WORKFORCE SERVICES STANDING COMMITTEE
Room 25 House Building
February 18, 2014
Members Present: Rep. Becky Edwards, Chair
Rep. Rich Cunningham, Vice Chair
Rep. Jim Bird
Rep. Richard A. Greenwood
Rep. Lynn N. Hemingway
Rep. Bradley G. Last
Rep. Rhonda Rudd Menlove
Rep. Merrill F. Nelson
Rep. Curt Oda
Rep. Angela Romero
Rep. Brad R. Wilson
Staff Present: Ben Christensen, Policy Analyst
Rosemary Young, Committee Secretary
Note: A list of visitors and a copy of handouts are filed with the committee minutes.
Vice Chair Cunningham called the meeting to order at 2:20 p.m.
MOTION: Rep. Oda moved to approve the minutes of the February 14, 2014 meeting. The
motion passed unanimously.
H.B. 356 New Convention Hotel Development Incentive Provisions (Rep. B. Wilson)
MOTION: Rep. Wilson moved to amend H.B. 356 as follows:
1. Page
3, Lines 70 through 71
:
70
(3) in the amount of 5% of the state portion, as defined in Section
63M-1-3402
{
,
of the
71
tax credit, as defined in Section
63M-1-3402
, awarded by the tax credit
certificate
}
.
2. Page
3, Lines 75 through 81
:
75
{
(a) "Eligibility period" has the same meaning as defined in Section
63M-1-3402
.
}
76
{
(b)
}
(a)
"Office" means the Governor's Office of Economic Development.
77
{
(c)
}
(b)
"Pass-through entity" has the same meaning as defined in Section
59-10-1402
.
78
{
(d)
}
(c)
"Pass-through entity taxpayer" has the same meaning as defined
in Section
79
59-10-1402
.
80
{
(e)
}
(d)
"Tax credit certificate" has the same meaning as defined in
Section
63M-1-3402
.
81
{
(f)
}
(e)
"Tax credit recipient" has the same meaning as defined in Section
63M-1-3402
.
3. Page
4, Lines 110 through 116
:
110
{
(a) "Eligibility period" has the same meaning as defined in Section
63M-1-3402
.
}
111
{
(b)
}
(a)
"Office" means the Governor's Office of Economic Development.
112
{
(c)
}
(b)
"Pass-through entity" has the same meaning as defined in Section
59-10-1402
.
113
{
(d)
}
(c)
"Pass-through entity taxpayer" has the same meaning as defined
in Section
114
59-10-1402
.
115
{
(e)
}
(d)
"Tax credit certificate" has the same meaning as defined in
Section
63M-1-3402
.
116
{
(f)
}
(e)
"Tax credit recipient" has the same meaning as defined in Section
63M-1-3402
.
4. Page
7, Line 199
:
199
(ii) ends
:
(A) for purposes of the state portion,
20 years after the date of initial occupancy
of that qualified hotel; or
(B) for purposes of the local portion, 25 years after the date of initial
occupancy of that hotel; or
5. Page
8, Line 221
:
221
(10) "Local portion" means
:
(a)
the portion of new tax revenue that is not the state portion
{
.
}
; and
(b) incremental property tax revenue.
6. Page
8, Line 226
:
226
subcontractors;
{
and
}
7. Page
8, Line 228
:
228
and Use Tax Act, on transactions occurring on hotel property during the eligibility
period
{
.
}
; and
(c) all incremental new revenue generated from a tax under Title 59, Chapter
12, Sales and Use Tax Act, on transactions by a third-party seller occurring other
than on hotel property during the eligibility period, if:
(i) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use
Tax Act; and
(ii) the third-party seller voluntarily consents to the disclosure of information to
the office, as provided in Subsection 63M-1-3405(1)(b)(i)(E).
8. Page
9, Line 260
:
260
certificate.
(22) "Third-party seller" means a person who is a seller in a transaction:
(a) occurring other than on hotel property;
(b) that is:
(i) the sale, rental, or lease of a room or of convention or exhibit space or other
facilities on hotel property; or
(ii) the sale of tangible personal property or a service on hotel property; and
(c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
9. Page
12, Lines 346 through 347
:
346
{
and
}
(E) a document in which a third-party seller expressly and voluntarily directs
and authorizes the commission to disclose to the office the third-party seller's tax
returns and other information that would otherwise be subject to confidentiality
under Section 59-1-403 or Section 6103, Internal Revenue Code, and that shows the
amount of tax under Title 59, Chapter 12, Sales and Use Tax Act, that the
third-party seller has collected in a transaction occurring other than on hotel
property for the sale, rental, or lease of a room or of convention or exhibit space or
other facilities on hotel property or for the sale of tangible personal property or a
service on hotel property; and
347
{
(E)
}
(F)
documentation verifying that the qualified hotel owner has
satisfied the
10. Page
15, Lines 455 through 458
:
455
{
(6) The Division of Finance shall:
456
(a) certify money deposited into the account as set aside for the account; and
457
(b) report money deposited into the account to the Office of the Legislative
Fiscal
458
Analyst.
11. Page
16, Line 465
:
465
meeting space on hotel property
, including any associated labor and overhead
; or
The motion passed unanimously with Rep. Bird, Rep. Greenwood, Rep. Oda, and Rep. Romero
absent for the vote.
Rep. Wilson explained the bill to the committee assisted by:
Christina Oliver, Salt Lake County Economic Development Director
Ken Bullock, Utah League of Cities and Towns
Ben McAdams, Salt Lake County Mayor
Linda Wardell, City Creek Center
Scott Beck, Visit Salt Lake
MOTION: Rep. Bird moved to amend H.B. 356 as follows:
1. Page 1, Line 1:
1
NEW CONVENTION
{
HOTEL
}
FACILITY
DEVELOPMENT INCENTIVE
2. Page 1, Lines 11 through 15:
11
This bill enacts provisions relating to incentives for the development of a new
12
convention
{
hotel
}
facility
.
13
Highlighted Provisions:
14
This bill:
15
. enacts the New Convention
{
Hotel
}
Facility
Development Incentive
Act;
3. Page 7, Line 186:
186
This part is known as the "New Convention
{
Hotel
}
Facility
Development
Incentive Act."
The motion passed unanimously with Rep. Greenwood and Rep. Oda absent for the vote.
Spoke for the bill: Jason Mathis, Downtown Alliance
Cliff Doner, Visit Salt Lake
Stan Castleton, DDRM Companies
Spoke against the bill: Royce Van Tassel, Utah Taxpayers Association
Jordan Garn, Utah Hotel and Lodging Association
Clint Ensign, Sinclair Co, Grand America and Little America
Hotels
Tyson Lybbert, Marriott City Center
MOTION: Rep. Last moved to pass out favorably H.B. 356. The motion passed unanimously
with Rep. Greenwood and Rep. Oda absent for the vote.
H.B. 197 Daylight Saving Time Study (Rep. R. Menlove)
Rep. Menlove distributed an untitled handout which consisted of a petition signed by senior
citizens in Box Elder county.
MOTION: Rep. Bird moved to amend H.B. 197 as follows:
1. Page
2, Lines 49 through 50
:
49
(e) report on the summary to the Government Operations Interim Committee
and
the Economic Development and Workforce Services Interim Committee
no later
50
than November 1, 2014.
The motion passed unanimously with Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for
the vote.
MOTION: Rep. Bird moved to amend H.B. 197 as follows:
1. Page 1, Lines 16 through 17
16
. requires the Governor's Office of Economic Development to report on the
meeting
17
to the Government Operations Interim Committee
and the Economic Development
and Workforce Services Interim Committee
.
The motion passed unanimously with Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for
the vote.
Rep. Menlove explained the bill to the committee.
MOTION: Rep. Last moved to pass out favorably H.B. 197. The motion passed with Rep.
Nelson and Rep. Hemingway voting in opposition and Rep. Greenwood, Rep. Oda, and Rep.
Wilson absent for the vote.
MOTION: Rep. Bird moved to adjourn. The motion passed unanimously with Rep.
Greenwood, Rep. Oda, and Rep. Wilson absent for the vote.
Vice Chair Cunningham adjourned the meeting at 4:05 P.M.
Rep. Becky Edwards, Chair