This document includes House Floor Amendments incorporated into the bill on Mon, Feb 22, 2016 at 4:39 PM by lsjones.
This document includes House Floor Amendments (CORRECTED) incorporated into the bill on Wed, Feb 24, 2016 at 8:07 AM by cynthiahopkin.
Representative Jacob L. Anderegg proposes the following substitute bill:


1     
LOCAL GOVERNMENT LICENSING AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
Senate Sponsor: Alvin B. Jackson

6     

7     LONG TITLE
8     General Description:
9           This bill modifies provisions related to a municipality's or a county's authority to license
10     a business.
11     Highlighted Provisions:
12          This bill:
13          ▸      amends provisions authorizing a municipality or a county to license a business;
14          ▸     prohibits a municipality from requiring a license or charging a fee for certain home
15     based businesses; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          10-1-203, as last amended by Laws of Utah 2014, Chapter 189
24          17-53-216, as last amended by Laws of Utah 2008, Chapter 250
25     


26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 10-1-203 is amended to read:
28          10-1-203. License fees and taxes -- Application information to be transmitted to
29     the county assessor.
30          (1) As used in this section:
31          (a) (i) "Business" means any enterprise carried on for the purpose of gain or economic
32     profit, except that the acts of employees rendering services to employers are not included in
33     this definition.
34          (ii) "Business" does not include a nonprofit corporation as defined in Section
35     16-6a-102.
36          (b) "Telecommunications provider" is as defined in Section 10-1-402.
37          (c) "Telecommunications tax or fee" is as defined in Section 10-1-402.
38          (2) Except as provided in Subsections (3) through (5) and (7) Ĥ→ (b) ←Ĥ , Ĥ→ and
38a     subject to Subsection (7)(a), ←Ĥ the legislative body of a
39     municipality may license for the purpose of regulation [and revenue] any business within the
40     limits of the municipality and may regulate that business by ordinance.
41          (3) (a) The legislative body of a municipality may raise revenue by levying and
42     collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
43     and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
44     energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
45     Energy Sales and Use Tax Act.
46          (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
47     in Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
48          (ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1,
49     1997, or a future franchise shall remain in full force and effect.
50          (c) A municipality that collects a contractual franchise fee pursuant to a franchise
51     agreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July
52     1, 1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
53          (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
54     defined in Subsection 10-1-303(6) between a municipality and an energy supplier may contain
55     a provision that:
56          (A) requires the energy supplier by agreement to pay a contractual franchise fee that is

57     otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
58          (B) imposes the contractual franchise fee on or after the day on which Part 3,
59     Municipal Energy Sales and Use Tax Act is:
60          (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
61     is reduced; and
62          (II) is not superseded by a law imposing a substantially equivalent tax.
63          (ii) A municipality may not charge a contractual franchise fee under the provisions
64     permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
65     fee or a tax on all energy suppliers.
66          (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
67     municipality may raise revenue by levying and providing for the collection of a municipal
68     telecommunications license tax as provided in Part 4, Municipal Telecommunications License
69     Tax Act.
70          (b) A municipality may not levy or collect a telecommunications tax or fee on a
71     telecommunications provider except as provided in Part 4, Municipal Telecommunications
72     License Tax Act.
73          (5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
74     levying and collecting a license fee or tax on:
75          (A) a parking service business in an amount that is less than or equal to:
76          (I) $1 per vehicle that parks at the parking service business; or
77          (II) 2% of the gross receipts of the parking service business;
78          (B) a public assembly or other related facility in an amount that is less than or equal to
79     $5 per ticket purchased from the public assembly or other related facility; and
80          (C) subject to the limitations of Subsections (5)(c) and (d):
81          (I) a business that causes disproportionate costs of municipal services; or
82          (II) a purchaser from a business for which the municipality provides an enhanced level
83     of municipal services.
84          (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
85     levy or collect a license fee or tax on a public assembly or other related facility owned and
86     operated by another political subdivision other than a community development and renewal
87     agency without the written consent of the other political subdivision.

88          (b) As used in this Subsection (5):
89          (i) "Municipal services" includes:
90          (A) public utilities; and
91          (B) services for:
92          (I) police;
93          (II) fire;
94          (III) storm water runoff;
95          (IV) traffic control;
96          (V) parking;
97          (VI) transportation;
98          (VII) beautification; or
99          (VIII) snow removal.
100          (ii) "Parking service business" means a business:
101          (A) that primarily provides off-street parking services for a public facility that is
102     wholly or partially funded by public money;
103          (B) that provides parking for one or more vehicles; and
104          (C) that charges a fee for parking.
105          (iii) "Public assembly or other related facility" means an assembly facility that:
106          (A) is wholly or partially funded by public money;
107          (B) is operated by a business; and
108          (C) requires a person attending an event at the assembly facility to purchase a ticket.
109          (c) (i) Before the legislative body of a municipality imposes a license fee on a business
110     that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
111     legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
112     under Subsection (5)(a)(i)(C)(I):
113          (A) the costs that constitute disproportionate costs; and
114          (B) the amounts that are reasonably related to the costs of the municipal services
115     provided by the municipality.
116          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
117     the costs of the municipal services provided by the municipality.
118          (d) (i) Before the legislative body of a municipality imposes a license fee on a

119     purchaser from a business for which it provides an enhanced level of municipal services under
120     Subsection (5)(a)(i)(C)(II), the legislative body of the municipality shall adopt an ordinance
121     defining for purposes of the fee under Subsection (5)(a)(i)(C)(II):
122          (A) the level of municipal services that constitutes the basic level of municipal services
123     in the municipality; and
124          (B) the amounts that are reasonably related to the costs of providing an enhanced level
125     of municipal services in the municipality.
126          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
127     the costs of providing an enhanced level of the municipal services.
128          (6) All license fees and taxes shall be uniform in respect to the class upon which they
129     are imposed.
130          (7) Ĥ→ [
(a)] ←Ĥ A municipality may Ĥ→ [require a license or] not:
130a      (a) ←Ĥ charge a Ĥ→ license ←Ĥ fee for a home based business
131     Ĥ→ [
only if] unless ←Ĥ the combined offsite impact of the home based business and the primary
131a     residential use
132     materially exceeds the offsite impact of the primary residential use alone Ĥ→ [
.] ; or ←Ĥ
133          (b) Ĥ→ [
Notwithstanding Subsection (7)(a), a municipality may not] ←Ĥ require a license
133a     for a
134     home based business that is operated:
135          (i) occasionally; and
136          (ii) by an individual who is under 18 years of age.
137          [(7)] (8) The municipality shall transmit the information from each approved business
138     license application to the county assessor within 60 days following the approval of the
139     application.
140          [(8)] (9) If challenged in court, an ordinance enacted by a municipality before January
141     1, 1994, imposing a business license fee on rental dwellings under this section shall be upheld
142     unless the business license fee is found to impose an unreasonable burden on the fee payer.
143          Section 2. Section 17-53-216 is amended to read:
144          17-53-216. Business license fees and taxes -- Application information to be
145     transmitted to the county assessor.
146          (1) [For the purpose of] As used in this section[, "business"]:
147          (a) "Business" means any enterprise carried on for the purpose of gain or economic
148     profit, except that the acts of employees rendering services to employers are not included in
149     this definition.
150          (b) "Business" does not include a nonprofit corporation as defined in Section
151     16-6a-102.
152          (2) [The] Except as provided in Subsection (4) Ĥ→ (b) ←Ĥ , Ĥ→ and subject to
152a     Subsection (4)(a), ←Ĥ the legislative body of a county may by
153     ordinance provide for the licensing of businesses within the unincorporated areas of the county
154     for the purpose of regulation [and revenue].
155          (3) All license fees and taxes shall be uniform in respect to the class upon which they
156     are imposed.
157          (4) Ĥ→ [
(a)] ←Ĥ A county may Ĥ→ [require a license or] not:
157a     (a) ←Ĥ charge a Ĥ→ license ←Ĥ fee for a home based business Ĥ→ [
only if] unless ←Ĥ
158     the combined offsite impact of the home based business and the primary residential use
159     materially exceeds the offsite impact of the primary residential use alone Ĥ→ [
.] ; or ←Ĥ
160          (b) Ĥ→ [
Notwithstanding Subsection (4)(a), a county may not] ←Ĥ require a license for a
160a     home
161     based business that is operated:
162          (i) occasionally; and
163          (ii) by an individual who is under 18 years of age.
164          [(4)] (5) The county business licensing agency shall transmit the information from each
165     approved business license application to the county assessor within 60 days following the
166     approval of the application.
167          [(5)] (6) This section may not be construed to enhance, diminish, or otherwise alter the
168     taxing power of counties existing prior to the effective date of Laws of Utah 1988, Chapter
169     144.