1     
DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL

2     
FUNDING AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Gage Froerer

6     
Senate Sponsor: Wayne A. Harper

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions related to the budget of the Department of Alcoholic
11     Beverage Control.
12     Highlighted Provisions:
13          This bill:
14          ▸     modifies how the Department of Alcoholic Beverage Control handles money it
15     receives from the markup on alcoholic beverages;
16          ▸     repeals certain responsibilities of the State Tax Commission related to money
17     received from the markup on alcoholic beverages;
18          ▸     creates the State Store Land Acquisition Fund;
19          ▸     allows the Department of Alcoholic Beverage Control to use the money in the State
20     Store Land Acquisition Fund to purchase or lease property for state stores;
21          ▸     requires the Department of Alcoholic Beverage Control to use proceeds from any
22     related revenue bond to repay the money used from the State Store Land
23     Acquisition Fund;
24          ▸     addresses reporting requirements;
25          ▸     provides for establishing performance measures and goals to evaluate the operations
26     of the Department of Alcoholic Beverage Control;
27          ▸     requires the Department of Alcoholic Beverage Control to obtain approval from the
28     Governor's Office of Management and Budget before submitting a request to the
29     State Building Board for a capital development project; and
30          ▸     makes technical and conforming changes.
31     Money Appropriated in this Bill:
32               ▸     To the Department of Alcoholic Beverage Control -- State Store Land
33     Acquisition Fund -- State Store Land Acquisition Fund -- as a one-time
34     appropriation:
35               •     from the General Fund, One-time, $5,000,000.
36     Other Special Clauses:
37          This bill provides a special effective date.
38     Utah Code Sections Affected:
39     AMENDS:
40          32B-2-301, as last amended by Laws of Utah 2017, Chapter 159
41          32B-2-304, as last amended by Laws of Utah 2017, Chapter 455
42          32B-3-205, as last amended by Laws of Utah 2017, Chapter 455
43          53F-9-304, as renumbered and amended by Laws of Utah 2018, Chapter 2
44          59-1-401, as last amended by Laws of Utah 2017, Chapter 430
45          59-1-402, as last amended by Laws of Utah 2017, Chapter 430
46          59-1-1402, as last amended by Laws of Utah 2017, Chapter 430
47     ENACTS:
48          32B-2-307, Utah Code Annotated 1953
49          32B-2-505, Utah Code Annotated 1953
50     

51     Be it enacted by the Legislature of the state of Utah:
52          Section 1. Section 32B-2-301 is amended to read:
53          32B-2-301. State property -- Liquor Control Fund -- Money to be retained by
54     department -- Department building process.
55          (1) The following are property of the state:
56          (a) the money received in the administration of this title, except as otherwise provided;
57     and
58          (b) property acquired, administered, possessed, or received by the department.
59          (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
60          (b) Except as provided in [Sections 32B-3-205 and] Section 32B-2-304, the department
61     shall deposit the following into the Liquor Control Fund:
62          (i) money received in the administration of this title [shall be transferred to the Liquor
63     Control Fund.]; and
64          [(3) (a) There is created an enterprise fund known as the "Markup Holding Fund."]
65          [(b) In accordance with Section 32B-2-304, the State Tax Commission shall deposit
66     revenue remitted to the State Tax Commission from the markup imposed under Section
67     32B-2-304 into the Markup Holding Fund.]
68          [(c) Money deposited into the Markup Holding Fund may be expended:]
69          [(i) to the extent appropriated by the Legislature; and]
70          [(ii) to fund the deposits required by Subsection 32B-2-304(4) and Subsection
71     32B-2-305(4).]
72          (ii) money received from the markup described in Section 32B-2-304.
73          (c) The department may draw from the Liquor Control Fund only to the extent
74     appropriated by the Legislature or provided by statute.
75          (d) The net position of the Liquor Control Fund may not fall below zero.
76          [(4) The] (3) (a) Notwithstanding Subsection (2)(c), the department may draw by
77     warrant from the Liquor Control Fund [only to the extent appropriated by the Legislature or
78     provided for by statute, except that the department may draw by warrant] without an
79     appropriation [from the Liquor Control Fund] for an expenditure that is directly incurred by the
80     department:
81          [(a)] (i) to purchase an alcoholic product;
82          [(b)] (ii) to transport an alcoholic product from the supplier to a warehouse of the
83     department; [and] or
84          [(c)] (iii) for variances related to an alcoholic product, including breakage or theft.
85          (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
86     department draws against the Liquor Control Fund, to the extent necessary to cover the
87     warrant, the cash resources of the General Fund may be used.
88          [(5)] (4) (a) As used in this Subsection [(5)] (4), "base budget" means the same as that
89     term is defined in legislative rule.
90          (b) The department's base budget shall include as an appropriation from the Liquor
91     Control Fund:
92          (i) credit card related fees paid by the department;
93          (ii) package agency compensation; and
94          (iii) the department's costs of shipping and warehousing alcoholic products.
95          [(6) Before the transfer required by Subsection (7), the department may retain each
96     fiscal year from the Liquor Control Fund $1,000,000 that the department may use for:]
97          [(a) capital equipment purchases;]
98          [(b) salary increases for department employees;]
99          [(c) performance awards for department employees; or]
100          [(d) information technology enhancements because of changes or trends in
101     technology.]
102          [(7)] (5) (a) The [department] Division of Finance shall transfer annually from the
103     Liquor Control Fund [and the State Tax Commission shall transfer annually from the Markup
104     Holding Fund] to the General Fund a sum equal to the amount of net profit earned from the
105     sale of liquor since the preceding transfer of money under this Subsection [(7). The transfers
106     shall be calculated by no later than] (5).
107          (b) After each fiscal year, the Division of Finance shall calculate the amount for the
108     transfer on or before September 1 and [made by no later than] the Division of Finance shall
109     make the transfer on or before September 30 [after a fiscal year].
110          (c) The Division of Finance may make year-end closing entries in the Liquor Control
111     Fund [and the Markup Holding Fund in order] to comply with Subsection 51-5-6(2).
112          [(8)] (6) (a) By the end of each day, the department shall:
113          (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and
114          (ii) report the deposit to the state treasurer.
115          (b) A commissioner or department employee is not personally liable for a loss caused
116     by the default or failure of a qualified depository.
117          (c) Money deposited in a qualified depository is entitled to the same priority of
118     payment as other public funds of the state.
119          [(9) If the cash balance of the Liquor Control Fund is not adequate to cover a warrant
120     drawn against the Liquor Control Fund by the department, the cash resources of the General
121     Fund may be used to the extent necessary. At no time may the fund equity of the Liquor
122     Control Fund fall below zero.]
123          (7) Before the Division of Finance makes the transfer described in Subsection (5), the
124     department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the
125     department may use for:
126          (a) capital equipment purchases;
127          (b) salary increases for department employees;
128          (c) performance awards for department employees; or
129          (d) information technology enhancements because of changes or trends in technology.
130          Section 2. Section 32B-2-304 is amended to read:
131          32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
132          (1) For purposes of this section:
133          (a) (i) "Landed case cost" means:
134          (A) the cost of the product; and
135          (B) inbound shipping costs incurred by the department.
136          (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
137     of the department to a state store.
138          (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
139          (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
140     manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
141     beverage.
142          (2) Except as provided in Subsection (3):
143          (a) spirituous liquor sold by the department within the state shall be marked up in an
144     amount not less than 88% above the landed case cost to the department;
145          (b) wine sold by the department within the state shall be marked up in an amount not
146     less than 88% above the landed case cost to the department;
147          (c) heavy beer sold by the department within the state shall be marked up in an amount
148     not less than 66.5% above the landed case cost to the department; and
149          (d) a flavored malt beverage sold by the department within the state shall be marked up
150     in an amount not less than 88% above the landed case cost to the department.
151          (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
152     up in an amount not less than 17% above the landed case cost to the department.
153          (b) Except for spirituous liquor sold by the department to a military installation in
154     Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
155     above the landed case cost to the department if:
156          (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
157     proof gallons of spirituous liquor in a calendar year; and
158          (ii) the manufacturer applies to the department for a reduced markup.
159          (c) Except for wine sold by the department to a military installation in Utah, wine that
160     is sold by the department within the state shall be marked up 49% above the landed case cost to
161     the department if:
162          (i) the wine is manufactured by a manufacturer producing less than 20,000 gallons of
163     wine in a calendar year; and
164          (ii) the manufacturer applies to the department for a reduced markup.
165          (d) Except for heavy beer sold by the department to a military installation in Utah,
166     heavy beer that is sold by the department within the state shall be marked up 32% above the
167     landed case cost to the department if:
168          (i) a small brewer manufactures the heavy beer; and
169          (ii) the small brewer applies to the department for a reduced markup.
170          (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
171     pursuant to a federal or other verifiable production report.
172          (4) The department shall deposit 10% of the total gross revenue from sales of liquor
173     with the state treasurer to be credited to the Uniform School Fund and used to support the
174     school lunch program administered by the State Board of Education under Section
175     53A-19-201.
176          (5) This section does not prohibit the department from selling discontinued items at a
177     discount.
178          [(6) (a) Except as provided in Section 53A-13-114, the department shall collect the
179     markup and remit the markup collected by the department under this section:]
180          [(i) to the State Tax Commission monthly on or before the last day of the month
181     immediately following the last day of the previous month; and]
182          [(ii) using a form prescribed by the State Tax Commission.]
183          [(b) For liquor provided to a package agency on consignment, the department shall
184     remit the markup to the State Tax Commission for the month during which the liquor is
185     provided to the package agency regardless of when the package agency pays the department for
186     the liquor provided to the package agency.]
187          [(c) The State Tax Commission shall deposit revenues remitted to it under Subsection
188     (6)(a) into the Markup Holding Fund created in Section 32B-2-301.]
189          [(d) The assessment, collection, and refund of a markup under this section shall be in
190     accordance with Title 59, Chapter 1, Part 14, Assessment, Collections, and Refunds Act.]
191          [(e) The department, if it fails to comply with this Subsection (6), is subject to
192     penalties as provided in Section 59-1-401 and interest as provided in Section 59-1-402.]
193          [(f) The State Tax Commission may make rules, in accordance with Title 63G, Chapter
194     3, Utah Administrative Rulemaking Act, to establish procedures under this Subsection (6).]
195          Section 3. Section 32B-2-307 is enacted to read:
196          32B-2-307. State Store Land Acquisition Fund.
197          (1) There is created an enterprise fund known as the State Store Land Acquisition
198     Fund.
199          (2) The State Store Land Acquisition Fund is funded from the following sources:
200          (a) appropriations made to the State Store Land Acquisition Fund by the Legislature;
201     and
202          (b) in accordance with Subsection (5), proceeds from revenue bonds authorized by
203     Title 63B, Bonds.
204          (3) Subject to Subsection (4), the department may use the money deposited into the
205     State Store Land Acquisition Fund to purchase or lease property for new state stores.
206          (4) (a) Before the department spends or commits money from the State Store Land
207     Acquisition Fund, the department shall present to the Infrastructure and General Government
208     Appropriations Subcommittee a description of how the department will spend the money.
209          (b) Following a presentation described in Subsection (4)(a), the Infrastructure and
210     General Government Appropriations Subcommittee shall recommend whether the department
211     spend the money in accordance with the department's presentation.
212          (5) When the department uses money in the State Store Land Acquisition Fund to
213     purchase or lease property for a new state store and subsequently issues a revenue bond for the
214     state store for which the department purchased or leased the property, the department shall
215     repay the money used to purchase or lease the property with proceeds from the revenue bond.
216          Section 4. Section 32B-2-505 is enacted to read:
217          32B-2-505. Reporting requirements -- Building plan and market survey required
218     -- Department performance measures.
219          (1) In 2018 and each year thereafter, the department shall present a five-year building
220     plan to the Infrastructure and General Government Appropriations Subcommittee that
221     describes the department's anticipated property acquisition, building, and remodeling for the
222     five years following the day on which the department presents the five-year building plan.
223          (2) (a) In 2018 and every other year thereafter, the department shall complete a market
224     survey to inform the department's five-year building plan described in Subsection (1).
225          (b) The department shall:
226          (i) provide a copy of each market survey to the Infrastructure and General Government
227     Appropriations Subcommittee and the Business and Labor Interim Committee; and
228          (ii) upon request, appear before the Infrastructure and General Government
229     Appropriations Subcommittee to present the results of the market survey.
230          (3) For fiscal year 2018-19 and each fiscal year thereafter, before the fiscal year begins,
231     the Governor's Office of Management and Budget, in consultation with the department and the
232     Office of the Legislative Fiscal Analyst, shall establish performance measures and goals to
233     evaluate the department's operations during the fiscal year.
234          (4) (a) The department may not submit a request to the State Building Board for a
235     capital development project unless the department first obtains approval from the Governor's
236     Office of Management and Budget.
237          (b) In determining whether to grant approval for a request described in Subsection
238     (4)(a), the Governor's Office of Management and Budget shall evaluate the extent to which the
239     department met the performance measures and goals described in Subsection (3) during the
240     previous fiscal year.
241          Section 5. Section 32B-3-205 is amended to read:
242          32B-3-205. Penalties.
243          (1) If the commission is satisfied that a person subject to administrative action violates
244     this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
245     Procedures Act, the commission may:
246          (a) suspend or revoke the person's license, permit, or certificate of approval;
247          (b) subject to Subsection (2), impose a fine against the person, including individual
248     staff of a licensee, permittee, or certificate holder;
249          (c) assess the administrative costs of a disciplinary proceeding to the person if the
250     person is a licensee, permittee, or certificate holder; or
251          (d) take a combination of actions described in this Subsection (1).
252          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
253          (i) a single notice of agency action; or
254          (ii) a single action against a package agency.
255          (b) The commission shall by rule establish a schedule setting forth a range of fines for
256     each violation.
257          (c) When a presiding officer imposes a fine, the presiding officer shall consider any
258     aggravating circumstances or mitigating circumstances in deciding where within the applicable
259     range to set the fine.
260          (3) The [commission] department shall transfer the costs assessed under this section
261     into the General Fund in accordance with Section 32B-2-301.
262          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
263     shall prominently display a sign provided by the department:
264          (i) during the suspension; and
265          (ii) at the entrance of the premises of the licensee or permittee.
266          (b) The sign required by this Subsection (4) shall:
267          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the
268     alcoholic product license or permit of this establishment. An alcoholic product may not be
269     sold, offered for sale, furnished, or consumed on these premises during the period of
270     suspension."; and
271          (ii) include the dates of the suspension period.
272          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
273     be displayed under this Subsection (4) during the suspension period.
274          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
275     bond posted by the licensee or permittee under this title.
276          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
277     bond posted by a licensee or permittee for money owed the department under this title without
278     the commission first revoking the license or permit.
279          (6) A licensee or permittee whose license or permit is revoked may not reapply for a
280     license or permit under this title for three years from the date on which the license or permit is
281     revoked.
282          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
283     violated this title, in addition to imposing another penalty authorized by this title, the
284     commission may prohibit the staff member from handling, selling, furnishing, distributing,
285     manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
286     staff with a licensee, permittee, or certificate holder under this title for a period determined by
287     the commission.
288          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
289     to other penalties prescribed by this title, the commission may order:
290          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
291     from the department's sales list; and
292          (ii) a suspension of the department's purchase of an alcoholic product described in
293     Subsection (8)(a)(i) for a period determined by the commission.
294          (b) The commission may take the action described in Subsection (8)(a) if:
295          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
296     this title; and
297          (ii) the manufacturer, supplier, or importer:
298          (A) directly commits the violation; or
299          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
300     the violation.
301          (9) If the commission makes a finding that the brewer holding a certificate of approval
302     violates this title or rules of the commission, the commission may take an action against the
303     brewer holding a certificate of approval that the commission could take against a licensee
304     including:
305          (a) suspension or revocation of the certificate of approval; and
306          (b) imposition of a fine.
307          (10) Notwithstanding the other provisions of this title, the commission may not order a
308     disciplinary action or fine in accordance with this section if the disciplinary action or fine is
309     ordered on the basis of a violation:
310          (a) of a provision in this title related to intoxication or becoming intoxicated; and
311          (b) if the violation is first investigated by a law enforcement officer, as defined in
312     Section 53-13-103, who has not received training regarding the requirements of this title
313     related to responsible alcoholic product sale or service.
314          Section 6. Section 53F-9-304 is amended to read:
315          53F-9-304. Underage Drinking Prevention Program Restricted Account.
316          (1) As used in this section, "account" means the Underage Drinking Prevention
317     Program Restricted Account created in this section.
318          (2) There is created within the Education Fund a restricted account known as the
319     "Underage Drinking Prevention Program Restricted Account."
320          (3) (a) Before the Department of Alcoholic Beverage Control [remits] deposits any
321     portion of the markup collected under Section 32B-2-304 [to the State Tax Commission, the
322     department] into the Liquor Control Fund in accordance with Section 32B-2-301, the
323     Department of Alcoholic Beverage Control shall deposit into the account:
324          (i) for the fiscal year that begins July 1, 2017, $1,750,000; or
325          (ii) for each fiscal year that begins on or after July 1, 2018, an amount equal to the
326     amount that the [department] Department of Alcoholic Beverage Control deposited into the
327     account during the preceding fiscal year increased or decreased by a percentage equal to the
328     percentage difference between the Consumer Price Index for the second preceding calendar
329     year and the Consumer Price Index for the preceding calendar year [2017].
330          (b) For purposes of this Subsection (3), the [department] Department of Alcoholic
331     Beverage Control shall calculate the Consumer Price Index in accordance with 26 U.S.C. Secs.
332     1(f)(4) and 1(f)(5).
333          (4) The account shall be funded:
334          (a) in accordance with Subsection (3);
335          (b) by appropriations made to the account by the Legislature; and
336          (c) by interest earned on money in the account.
337          (5) The State Board of Education shall use money in the account for the Underage
338     Drinking Prevention Program described in Section 53G-10-406.
339          Section 7. Section 59-1-401 is amended to read:
340          59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
341     of limitations -- Commission authority to waive, reduce, or compromise penalty or
342     interest.
343          (1) As used in this section:
344          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
345     commission:
346          (i) has implemented the commission's GenTax system; and
347          (ii) at least 30 days before implementing the commission's GenTax system as described
348     in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
349     stating:
350          (A) the date the commission will implement the GenTax system with respect to the tax,
351     fee, or charge; and
352          (B) that, at the time the commission implements the GenTax system with respect to the
353     tax, fee, or charge:
354          (I) a person that files a return after the due date as described in Subsection (2)(a) is
355     subject to the penalty described in Subsection (2)(c)(ii); and
356          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
357     subject to the penalty described in Subsection (3)(b)(ii).
358          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
359     charge, the later of:
360          (i) the date on which the commission implements the commission's GenTax system
361     with respect to the tax, fee, or charge; or
362          (ii) 30 days after the date the commission provides the notice described in Subsection
363     (1)(a)(ii) with respect to the tax, fee, or charge.
364          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
365          (A) a tax, fee, or charge the commission administers under:
366          (I) this title;
367          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
368          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
369          (IV) Section 19-6-410.5;
370          (V) Section 19-6-714;
371          (VI) Section 19-6-805;
372          [(VII) Section 32B-2-304;]
373          [(VIII)] (VII) Section 34A-2-202;
374          [(IX)] (VIII) Section 40-6-14; or
375          [(X)] (IX) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
376          (B) another amount that by statute is subject to a penalty imposed under this section.
377          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
378          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
379          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
380          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
381          (D) Chapter 3, Tax Equivalent Property Act; or
382          (E) Chapter 4, Privilege Tax.
383          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
384     tax, fee, or charge.
385          (2) (a) The due date for filing a return is:
386          (i) if the person filing the return is not allowed by law an extension of time for filing
387     the return, the day on which the return is due as provided by law; or
388          (ii) if the person filing the return is allowed by law an extension of time for filing the
389     return, the earlier of:
390          (A) the date the person files the return; or
391          (B) the last day of that extension of time as allowed by law.
392          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
393     return after the due date described in Subsection (2)(a).
394          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
395          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
396     tax, fee, or charge:
397          (A) $20; or
398          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
399          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
400     fee, or charge, beginning on the activation date for the tax, fee, or charge:
401          (A) $20; or
402          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
403     filed no later than five days after the due date described in Subsection (2)(a);
404          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
405     more than five days after the due date but no later than 15 days after the due date described in
406     Subsection (2)(a); or
407          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
408     filed more than 15 days after the due date described in Subsection (2)(a).
409          (d) This Subsection (2) does not apply to:
410          (i) an amended return; or
411          (ii) a return with no tax due.
412          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
413          (i) the person files a return on or before the due date for filing a return described in
414     Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
415     date;
416          (ii) the person:
417          (A) is subject to a penalty under Subsection (2)(b); and
418          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
419     due date for filing a return described in Subsection (2)(a);
420          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
421          (B) the commission estimates an amount of tax due for that person in accordance with
422     Subsection 59-1-1406(2);
423          (iv) the person:
424          (A) is mailed a notice of deficiency; and
425          (B) within a 30-day period after the day on which the notice of deficiency described in
426     Subsection (3)(a)(iv)(A) is mailed:
427          (I) does not file a petition for redetermination or a request for agency action; and
428          (II) fails to pay the tax, fee, or charge due on a return;
429          (v) (A) the commission:
430          (I) issues an order constituting final agency action resulting from a timely filed petition
431     for redetermination or a timely filed request for agency action; or
432          (II) is considered to have denied a request for reconsideration under Subsection
433     63G-4-302(3)(b) resulting from a timely filed petition for redetermination or a timely filed
434     request for agency action; and
435          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
436     after the date the commission:
437          (I) issues the order constituting final agency action described in Subsection
438     (3)(a)(v)(A)(I); or
439          (II) is considered to have denied the request for reconsideration described in
440     Subsection (3)(a)(v)(A)(II); or
441          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
442     of a final judicial decision resulting from a timely filed petition for judicial review.
443          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
444          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
445     respect to an unactivated tax, fee, or charge:
446          (A) $20; or
447          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
448          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
449     respect to an activated tax, fee, or charge, beginning on the activation date:
450          (A) $20; or
451          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
452     tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
453     return described in Subsection (2)(a);
454          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
455     fee, or charge due on the return is paid more than five days after the due date for filing a return
456     described in Subsection (2)(a) but no later than 15 days after that due date; or
457          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
458     tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
459     return described in Subsection (2)(a).
460          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
461     quarterly installments required by Sections 59-5-107, 59-5-207, 59-7-504, and 59-9-104, there
462     shall be added a penalty in an amount determined by applying the interest rate provided under
463     Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
464     of the underpayment.
465          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
466     excess of the required installment over the amount, if any, of the installment paid on or before
467     the due date for the installment.
468          (ii) The period of the underpayment shall run from the due date for the installment to
469     whichever of the following dates is the earlier:
470          (A) the original due date of the tax return, without extensions, for the taxable year; or
471          (B) with respect to any portion of the underpayment, the date on which that portion is
472     paid.
473          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
474     against unpaid required installments in the order in which the installments are required to be
475     paid.
476          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
477     person allowed by law an extension of time for filing a corporate franchise or income tax return
478     under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
479     under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
480     Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
481     including the extension of time, the person fails to pay:
482          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
483     Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507(1)(b); or
484          (ii) for a person filing an individual income tax return under Chapter 10, Individual
485     Income Tax Act, the payment required by Subsection 59-10-516(2).
486          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
487     extension of time for filing the return is an amount equal to 2% of the tax due on the return,
488     unpaid as of the day on which the return is due as provided by law.
489          (6) If a person does not file a return within an extension of time allowed by Section
490     59-7-505 or 59-10-516, the person:
491          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
492          (b) is subject to a penalty in an amount equal to the sum of:
493          (i) a late file penalty in an amount equal to the greater of:
494          (A) $20; or
495          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
496     provided by law, not including the extension of time; and
497          (ii) a late pay penalty in an amount equal to the greater of:
498          (A) $20; or
499          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
500     due as provided by law, not including the extension of time.
501          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
502     in this Subsection (7)(a).
503          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
504     fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
505     is due to negligence.
506          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
507     tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
508     underpayment.
509          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
510     the penalty is the greater of $500 per period or 50% of the entire underpayment.
511          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
512     charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
513          (b) If the commission determines that a person is liable for a penalty imposed under
514     Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
515     penalty.
516          (i) The notice of proposed penalty shall:
517          (A) set forth the basis of the assessment; and
518          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
519          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
520     penalty is proposed may:
521          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
522     or
523          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
524          (iii) A person against whom a penalty is proposed in accordance with this Subsection
525     (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
526     the commission.
527          (iv) (A) If the commission determines that a person is liable for a penalty under this
528     Subsection (7), the commission shall assess the penalty and give notice and demand for
529     payment.
530          (B) The commission shall mail the notice and demand for payment described in
531     Subsection (7)(b)(iv)(A):
532          (I) to the person's last-known address; and
533          (II) in accordance with Section 59-1-1404.
534          (c) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
535     subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
536          (i) a court of competent jurisdiction issues a final unappealable judgment or order
537     determining that:
538          (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
539     or is a seller required to pay or collect and remit sales and use taxes under Subsection
540     59-12-107(2)(b); and
541          (B) the commission or a county, city, or town may require the seller to collect a tax
542     under Subsections 59-12-103(2)(a) through (d); or
543          (ii) the commission issues a final unappealable administrative order determining that:
544          (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
545     or is a seller required to pay or collect and remit sales and use taxes under Subsection
546     59-12-107(2)(b); and
547          (B) the commission or a county, city, or town may require the seller to collect a tax
548     under Subsections 59-12-103(2)(a) through (d).
549          (d) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
550     subject to the penalty under Subsection (7)(a)(ii) if:
551          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
552     determining that:
553          (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
554     or is a seller required to pay or collect and remit sales and use taxes under Subsection
555     59-12-107(2)(b); and
556          (II) the commission or a county, city, or town may require the seller to collect a tax
557     under Subsections 59-12-103(2)(a) through (d); or
558          (B) the commission issues a final unappealable administrative order determining that:
559          (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
560     or is a seller required to pay or collect and remit sales and use taxes under Subsection
561     59-12-107(2)(b); and
562          (II) the commission or a county, city, or town may require the seller to collect a tax
563     under Subsections 59-12-103(2)(a) through (d); and
564          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
565     nonfrivolous argument for the extension, modification, or reversal of existing law or the
566     establishment of new law.
567          (8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
568     information return, information report, or a complete supporting schedule is $50 for each
569     information return, information report, or supporting schedule up to a maximum of $1,000.
570          (b) If an employer is subject to a penalty under Subsection (13), the employer may not
571     be subject to a penalty under Subsection (8)(a).
572          (c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
573     return in accordance with Subsection 59-10-406(3) on or before the due date described in
574     Subsection 59-10-406(3)(b)(ii), the commission may not impose a penalty under this
575     Subsection (8) unless the return is filed more than 14 days after the due date described in
576     Subsection 59-10-406(3)(b)(ii).
577          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
578     or impede administration of a law relating to a tax, fee, or charge and files a purported return
579     that fails to contain information from which the correctness of reported tax, fee, or charge
580     liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
581     substantially incorrect, the penalty is $500.
582          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
583     Subsection 59-12-108(1)(a):
584          (i) is subject to a penalty described in Subsection (2); and
585          (ii) may not retain the percentage of sales and use taxes that would otherwise be
586     allowable under Subsection 59-12-108(2).
587          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
588     required by Subsection 59-12-108(1)(a)(ii)(B):
589          (i) is subject to a penalty described in Subsection (2); and
590          (ii) may not retain the percentage of sales and use taxes that would otherwise be
591     allowable under Subsection 59-12-108(2).
592          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
593          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
594     following documents:
595          (A) a return;
596          (B) an affidavit;
597          (C) a claim; or
598          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
599          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
600     will be used in connection with any material matter administered by the commission; and
601          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
602     with any material matter administered by the commission, would result in an understatement of
603     another person's liability for a tax, fee, or charge.
604          (b) The following acts apply to Subsection (11)(a)(i):
605          (i) preparing any portion of a document described in Subsection (11)(a)(i);
606          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
607          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
608          (iv) advising in the preparation or presentation of any portion of a document described
609     in Subsection (11)(a)(i);
610          (v) aiding in the preparation or presentation of any portion of a document described in
611     Subsection (11)(a)(i);
612          (vi) assisting in the preparation or presentation of any portion of a document described
613     in Subsection (11)(a)(i); or
614          (vii) counseling in the preparation or presentation of any portion of a document
615     described in Subsection (11)(a)(i).
616          (c) For purposes of Subsection (11)(a), the penalty:
617          (i) shall be imposed by the commission;
618          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
619     the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
620          (iii) is in addition to any other penalty provided by law.
621          (d) The commission may seek a court order to enjoin a person from engaging in
622     conduct that is subject to a penalty under this Subsection (11).
623          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
624     commission may make rules prescribing the documents that are similar to Subsections
625     (11)(a)(i)(A) through (C).
626          (12) (a) As provided in Section 76-8-1101, criminal offenses and penalties are as
627     provided in Subsections (12)(b) through (e).
628          (b) (i) A person who is required by this title or any laws the commission administers or
629     regulates to register with or obtain a license or permit from the commission, who operates
630     without having registered or secured a license or permit, or who operates when the registration,
631     license, or permit is expired or not current, is guilty of a class B misdemeanor.
632          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(b)(i), the
633     penalty may not:
634          (A) be less than $500; or
635          (B) exceed $1,000.
636          (c) (i) With respect to a tax, fee, or charge, a person who knowingly and intentionally,
637     and without a reasonable good faith basis, fails to make, render, sign, or verify a return within
638     the time required by law or to supply information within the time required by law, or who
639     makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false
640     or fraudulent information, is guilty of a third degree felony.
641          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(c)(i), the
642     penalty may not:
643          (A) be less than $1,000; or
644          (B) exceed $5,000.
645          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
646     charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
647     guilty of a second degree felony.
648          (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(d)(i), the
649     penalty may not:
650          (A) be less than $1,500; or
651          (B) exceed $25,000.
652          (e) (i) A person is guilty of a second degree felony if that person commits an act:
653          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
654     documents:
655          (I) a return;
656          (II) an affidavit;
657          (III) a claim; or
658          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
659          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
660     Subsection (12)(e)(i)(A):
661          (I) is false or fraudulent as to any material matter; and
662          (II) could be used in connection with any material matter administered by the
663     commission.
664          (ii) The following acts apply to Subsection (12)(e)(i):
665          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
666          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
667          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
668          (D) advising in the preparation or presentation of any portion of a document described
669     in Subsection (12)(e)(i)(A);
670          (E) aiding in the preparation or presentation of any portion of a document described in
671     Subsection (12)(e)(i)(A);
672          (F) assisting in the preparation or presentation of any portion of a document described
673     in Subsection (12)(e)(i)(A); or
674          (G) counseling in the preparation or presentation of any portion of a document
675     described in Subsection (12)(e)(i)(A).
676          (iii) This Subsection (12)(e) applies:
677          (A) regardless of whether the person for which the document described in Subsection
678     (12)(e)(i)(A) is prepared or presented:
679          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
680          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
681          (B) in addition to any other penalty provided by law.
682          (iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (12)(e), the
683     penalty may not:
684          (A) be less than $1,500; or
685          (B) exceed $25,000.
686          (v) The commission may seek a court order to enjoin a person from engaging in
687     conduct that is subject to a penalty under this Subsection (12)(e).
688          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
689     the commission may make rules prescribing the documents that are similar to Subsections
690     (12)(e)(i)(A)(I) through (III).
691          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
692     the later of six years:
693          (i) from the date the tax should have been remitted; or
694          (ii) after the day on which the person commits the criminal offense.
695          (13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
696     the commission in accordance with Subsection 59-10-406(8) is subject to a penalty described
697     in Subsection (13)(b) if the employer:
698          (i) fails to file the form with the commission in an electronic format approved by the
699     commission as required by Subsection 59-10-406(8);
700          (ii) fails to file the form on or before the due date provided in Subsection 59-10-406(8);
701          (iii) fails to provide accurate information on the form; or
702          (iv) fails to provide all of the information required by the Internal Revenue Service to
703     be contained on the form.
704          (b) For purposes of Subsection (13)(a), the penalty is:
705          (i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
706     form in accordance with Subsection 59-10-406(8), more than 14 days after the due date
707     provided in Subsection 59-10-406(8) but no later than 30 days after the due date provided in
708     Subsection 59-10-406(8);
709          (ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
710     form in accordance with Subsection 59-10-406(8), more than 30 days after the due date
711     provided in Subsection 59-10-406(8) but on or before June 1; or
712          (iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
713          (A) files the form in accordance with Subsection 59-10-406(8) after June 1; or
714          (B) fails to file the form.
715          (14) Upon making a record of its actions, and upon reasonable cause shown, the
716     commission may waive, reduce, or compromise any of the penalties or interest imposed under
717     this part.
718          Section 8. Section 59-1-402 is amended to read:
719          59-1-402. Definitions -- Interest.
720          (1) As used in this section:
721          (a) "Final judicial decision" means a final ruling by a court of this state or the United
722     States for which the time for any further review or proceeding has expired.
723          (b) "Retroactive application of a judicial decision" means the application of a final
724     judicial decision that:
725          (i) invalidates a state or federal taxation statute; and
726          (ii) requires the state to provide a refund for an overpayment that was made:
727          (A) prior to the final judicial decision; or
728          (B) during the 180-day period after the final judicial decision.
729          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
730          (A) a tax, fee, or charge the commission administers under:
731          (I) this title;
732          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
733          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
734          (IV) Section 19-6-410.5;
735          (V) Section 19-6-714;
736          (VI) Section 19-6-805;
737          [(VII) Section 32B-2-304;]
738          [(VIII)] (VII) Section 34A-2-202;
739          [(IX)] (VIII) Section 40-6-14; or
740          [(X)] (IX) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
741          (B) another amount that by statute is subject to interest imposed under this section.
742          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
743          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
744          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
745          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
746          (D) Chapter 3, Tax Equivalent Property Act;
747          (E) Chapter 4, Privilege Tax; or
748          (F) Chapter 13, Part 5, Interstate Agreements.
749          (2) Except as otherwise provided for by law, the interest rate for a calendar year for a
750     tax, fee, or charge administered by the commission shall be calculated based on the federal
751     short-term rate determined by the Secretary of the Treasury under Section 6621, Internal
752     Revenue Code, in effect for the preceding fourth calendar quarter.
753          (3) The interest rate calculation shall be as follows:
754          (a) except as provided in Subsection (7), in the case of an overpayment or refund,
755     simple interest shall be calculated at the rate of two percentage points above the federal
756     short-term rate; or
757          (b) in the case of an underpayment, deficiency, or delinquency, simple interest shall be
758     calculated at the rate of two percentage points above the federal short-term rate.
759          (4) Notwithstanding Subsection (2) or (3), the interest rate applicable to certain
760     installment sales for purposes of a tax under Chapter 7, Corporate Franchise and Income Taxes,
761     shall be determined in accordance with Section 453A, Internal Revenue Code, as provided in
762     Section 59-7-112.
763          (5) (a) Except as provided in Subsection (5)(c), interest may not be allowed on an
764     overpayment of a tax, fee, or charge if the overpayment of the tax, fee, or charge is refunded
765     within:
766          (i) 45 days after the last date prescribed for filing the return with respect to a tax under
767     Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
768     if the return is filed electronically; or
769          (ii) 90 days after the last date prescribed for filing the return:
770          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
771     Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
772          (B) if the return is not filed electronically.
773          (b) Except as provided in Subsection (5)(c), if the return is filed after the last date
774     prescribed for filing the return, interest may not be allowed on the overpayment if the
775     overpayment is refunded within:
776          (i) 45 days after the date the return is filed:
777          (A) with respect to a tax under Chapter 7, Corporate Franchise and Income Taxes, or
778     Chapter 10, Individual Income Tax Act; and
779          (B) if the return is filed electronically; or
780          (ii) 90 days after the date the return is filed:
781          (A) with respect to a tax, fee, or charge, except for a tax under Chapter 7, Corporate
782     Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act; or
783          (B) if the return is not filed electronically.
784          (c) (i) In the case of an amended return, interest on an overpayment shall be allowed:
785          (A) for a time period:
786          (I) that begins on the later of:
787          (Aa) the date the original return was filed; or
788          (Bb) the due date for filing the original return not including any extensions for filing
789     the original return; and
790          (II) that ends on the date the commission receives the amended return; and
791          (B) if the commission does not make a refund of an overpayment under this Subsection
792     (5)(c):
793          (I) if the amended return is with respect to a tax under Chapter 7, Corporate Franchise
794     and Income Taxes, or Chapter 10, Individual Income Tax Act, and is filed electronically,
795     within a 45-day period after the date the commission receives the amended return, for a time
796     period:
797          (Aa) that begins 46 days after the commission receives the amended return; and
798          (Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
799     completes processing the refund of the overpayment; or
800          (II) if the amended return is with respect to a tax, fee, or charge except for a tax under
801     Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act,
802     or is not filed electronically, within a 90-day period after the date the commission receives the
803     amended return, for a time period:
804          (Aa) that begins 91 days after the commission receives the amended return; and
805          (Bb) subject to Subsection (5)(c)(ii), that ends on the date that the commission
806     completes processing the refund of the overpayment.
807          (ii) For purposes of Subsection (5)(c)(i)(B)(I)(Bb) or (5)(c)(i)(B)(II)(Bb), interest shall
808     be calculated forward from the preparation date of the refund document to allow for
809     processing.
810          (6) Interest on any underpayment, deficiency, or delinquency of a tax, fee, or charge
811     shall be computed from the time the original return is due, excluding any filing or payment
812     extensions, to the date the payment is received.
813          (7) Interest on a refund relating to a tax, fee, or charge may not be paid on any
814     overpayment that arises from a statute that is determined to be invalid under state or federal
815     law or declared unconstitutional under the constitution of the United States or Utah if the basis
816     for the refund is the retroactive application of a judicial decision upholding the claim of
817     unconstitutionality or the invalidation of a statute.
818          Section 9. Section 59-1-1402 is amended to read:
819          59-1-1402. Definitions.
820          As used in this part:
821          (1) "Administrative cost" means a fee imposed to cover:
822          (a) the cost of filing;
823          (b) the cost of administering a garnishment;
824          (c) the amount the commission pays to a depository institution in accordance with Part
825     17, Depository Institution Data Match System and Levy Act; or
826          (d) a cost similar to Subsections (1)(a) through (c) as determined by the commission by
827     rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
828          (2) "Books and records" means the following made available in printed or electronic
829     format:
830          (a) an account;
831          (b) a book;
832          (c) an invoice;
833          (d) a memorandum;
834          (e) a paper;
835          (f) a record; or
836          (g) an item similar to Subsections (2)(a) through (f) as determined by the commission
837     by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
838          (3) "Deficiency" means:
839          (a) the amount by which a tax, fee, or charge exceeds the difference between:
840          (i) the sum of:
841          (A) the amount shown as the tax, fee, or charge by a person on the person's return; and
842          (B) any amount previously assessed, or collected without assessment, as a deficiency;
843     and
844          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
845     to that tax, fee, or charge; or
846          (b) if a person does not show an amount as a tax, fee, or charge on the person's return,
847     or if a person does not make a return, the amount by which the tax, fee, or charge exceeds:
848          (i) the amount previously assessed, or collected without assessment, as a deficiency;
849     and
850          (ii) any amount previously abated, credited, refunded, or otherwise repaid with respect
851     to that tax, fee, or charge.
852          (4) "Garnishment" means any legal or equitable procedure through which one or more
853     of the following are required to be withheld for payment of an amount a person owes:
854          (a) an asset of the person held by another person; or
855          (b) the earnings of the person.
856          (5) "Liability" means the following that a person is required to remit to the
857     commission:
858          (a) a tax, fee, or charge;
859          (b) an addition to a tax, fee, or charge;
860          (c) an administrative cost;
861          (d) interest that accrues in accordance with Section 59-1-402; or
862          (e) a penalty that accrues in accordance with Section 59-1-401.
863          (6) (a) Subject to Subsection (6)(b), "mathematical error" is as defined in Section
864     6213(g)(2), Internal Revenue Code.
865          (b) The reference to Section 6213(g)(2), Internal Revenue Code, in Subsection (6)(a)
866     means:
867          (i) the reference to Section 6213(g)(2), Internal Revenue Code, in effect for the taxable
868     year; or
869          (ii) a corresponding or comparable provision of the Internal Revenue Code as
870     amended, redesignated, or reenacted.
871          (7) (a) Except as provided in Subsection (7)(b), "tax, fee, or charge" means:
872          (i) a tax, fee, or charge the commission administers under:
873          (A) this title;
874          (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
875          (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
876          (D) Section 19-6-410.5;
877          (E) Section 19-6-714;
878          (F) Section 19-6-805;
879          [(G) Section 32B-2-304;]
880          [(H)] (G) Section 34A-2-202;
881          [(I)] (H) Section 40-6-14; or
882          [(J)] (I) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
883          (ii) another amount that by statute is administered by the commission.
884          (b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
885          (i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
886          (ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
887          (iii) Chapter 2, Property Tax Act;
888          (iv) Chapter 3, Tax Equivalent Property Act;
889          (v) Chapter 4, Privilege Tax; or
890          (vi) Chapter 13, Part 5, Interstate Agreements.
891          (8) "Transferee" means:
892          (a) a devisee;
893          (b) a distributee;
894          (c) a donee;
895          (d) an heir;
896          (e) a legatee; or
897          (f) a person similar to Subsections (8)(a) through (e) as determined by the commission
898     by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
899          Section 10. Appropriation.
900          The following sums of money are appropriated for the fiscal year beginning July 1,
901     2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
902     fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
903     Act, the Legislature appropriates the following sums of money from the funds or accounts
904     indicated for the use and support of the government of the state of Utah.
905     ITEM 1
906          To the Department of Alcoholic Beverage Control -- State Store Land Acquisition Fund
907               From General Fund, One-time
$5,000,000

908               Schedule of Programs:
909                    State Store Land Acquisition Fund          $5,000,000
910          The Legislature intends that the appropriations provided under this section be used to
911     purchase or lease property for new state stores in accordance with Section 32B-2-307.
912          Section 11. Effective date.
913          This bill takes effect on July 1, 2018.