MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

February 17, 2016

Members Present:                Rep. Daniel McCay, Chair

                                                Rep. Jeremy A. Peterson, Vice Chair

                                                Rep. Joel K. Briscoe

                                                Rep. Rich Cunningham                                                                                                          Rep. Gage Froerer

                                                Rep. Brian M. Greene

                                                Rep. Eric K. Hutchings

                                                Rep. Ken Ivory                                                                                                                       Rep. Brian S. King

                                                Rep. John Knotwell

                                                Rep. Mike K. McKell

                                                Rep. Douglas V. Sagers

                                                Rep. Jon E. Stanard

Staff Present:                        Leif G. Elder, Policy Analyst

                                                An Bradshaw, Secretary

NOTE: A list of visitors and a copy of handouts are filed with the committee minutes.

Chair McCay called the meeting to order at 2:08 p.m.

MOTION:     Rep. McKell moved to approve the minutes of the February 10, 2016 and February 16, 2016 meetings. The motion passed unanimously with Rep. Briscoe, Rep. Froerer, Rep. Hutchings, Rep. King, and Rep. Stanard absent for the vote.

H.B. 61           Corporate Franchise and Income Tax Changes (Rep. J. Knotwell)

Rep. Knotwell and Sen. Bramble explained the bill to the committee.

Spoke for the bill:                   Billy Hesterman, Utah Taxpayers Association

                                                Michael Parker, Salt Lake Chamber

Spoke to the bill:                    John Valentine, Chair, State Tax Commission

Spoke against the bill:            Doug Macdonald, UtahTaxPolicy.org, handout provided

MOTION:     Rep. Stanard moved to replace H.B. 61 with 1st Sub. H.B. 61. The motion passed with Rep. Briscoe voting in opposition and Rep. Hutchings absent for the vote.

MOTION:     Rep. Stanard moved to pass 1st Sub. H.B. 61 out favorably. The motion passed with Rep. Briscoe and Rep. King voting in opposition and Rep. Hutchings absent for the vote.

H.B. 122         Sales Tax Exemption for Public Buildings Contractors (Rep. K. Powell)

Rep. Powell explained the bill to the committee with the assistance of Joe McAllister, General Counsel, Hughes General Contractors.

Spoke to the bill:                    Matt Sibul, Chief Planning Officer, Utah Transit Authority

Spoke against the bill:            Lynn Pace, President, Utah League of Cities and Towns

MOTION:     Rep. Cunningham moved to hold the bill. The motion passed unanimously.

H.B. 92           Local School Board Levy Rate Amendments (Rep. K. Powell)

Rep. Powell explained the bill to the committee and provided an overhead presentation.

Spoke for the bill:                   Terry Shoemaker, Superintendent, Wasatch School District

                                                Mike Anderson, Jordan School District

                                                Todd Hauber, Park City School District

MOTION:     Rep. Cunningham moved to pass the bill out favorably. The motion passed unanimously with Rep. Knotwell absent for the vote.

H.B. 237         Income Tax Contribution for Clean Air (Rep. P. Arent)

Rep. Arent explained the bill to the committee and distributed "Rising to the Challenge to Improve Utah's Air."

Spoke for the bill:                   Linda Johnson, Breathe Utah

                                                Ingrid Giffee, Utah Moms for Clean Air

                                                Jeff Edwards, Economic Development Corporation of Utah

                                                Ashley Soltysiak, HEAL Utah

MOTION:     Rep. McKell moved to amend the bill as follows:

1.    Page 3, Lines 80 through 85:   

80   (b) The commission shall disburse money under Subsection (3)(a) to {   Utah Clean Air

81Partnership UCAIR Inc.  }  Division of Air Quality  for the purpose of:

82   (i) providing money for grants to individuals or organizations in the state to fund

83activities intended to improve air quality in the state; or

84   (ii) enhancing programs designed to educate the public about the importance of air

85quality to the health, well-being, and livelihood of individuals in the state.

The motion passed with Rep. Briscoe, Rep. Hutchings, and Rep. King voting in opposition and Rep. Froerer absent for the vote.

MOTION:     Rep. McKell moved to pass H.B. 237 out favorably as amended. The motion passed unanimously with Rep. Froerer absent for the vote.

H.B. 86           Postretirement Employment Restrictions (Rep. R. Cunningham)

Rep. Cunningham explained the bill to the committee.

Spoke for the bill:                   Jeremy Redd, City Manager, Blanding

                                               Jay Blain, Utah Education Association

                                               Mike Anderson, Jordan School District

                                               Cameron Diehl, Utah League of Cities and Towns and Utah                                                Association of Counties

                                               Todd Losser, Utah Public Employees Association

                                               Kelly Atkinson, Fraternal Order of Police

Spoke against the bill:            Billie Hesterman, Utah Taxpayers Association

MOTION:     Rep. Sagers moved to replace H.B. 86 with 1st Sub. H.B. 86.

SUBSTITUTE

MOTION:     Rep. McCay moved to replace H.B. 86 with 2nd Sub. H.B. 86. The motion failed with Rep. Greene, Rep. Froerer, Rep. Ivory, and Rep. McCay voting in favor.

The underlying motion passed unanimously.

MOTION:     Rep. Cunningham moved to pass 1st Sub. H.B. 86 out favorably. The motion passed with Rep. Greene, Rep. Froerer, Rep. Ivory, Rep. Knotwell, Rep. Stanard, and Rep. McCay voting in opposition.

H.B. 50           Postretirement Reemployment Amendments (Rep. R. Cunningham)

The bill was not heard.

H.B. 205         Tier II Retirement Amendments (Rep. R. Cunningham)

The bill was not heard.

MOTION:     Rep. Greene moved to adjourn the meeting. The motion passed unanimously.

Chair McCay adjourned the meeting at 4:10 p.m.

Daniel McCay, Chair