MINUTES OF THE

SENATE ECONOMIC DEVELOPMENT & WORKFORCE SERVICES
STANDING COMMITTEE

215 Senate Building, Utah State Capitol Complex

March 9, 2015

 

Members Present:     Sen. Jani Iwamoto

                                    Sen. Scott K. Jenkins

                                    Sen. Karen Mayne

                                    Sen. Ann. Millner                               

 

Members Excused:    Sen. Aaron Osmond, Chair

                                     Sen. Ralph Okerlund

 

Members Absent:      Sen. Jerry W. Stevenson

           

Staff Present:             Mr. Ben Christensen, Policy Analyst

                                    Ms. Karen Allred, Committee Secretary

 

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

 

Sen. Millner assumed the Committee Chair and called the meeting to order at 4:18 p.m.

 

MOTION:  Sen. Iwamoto moved to approve the minutes of the March 4, 2015 meeting.  The motion passed unanimously with, Sen. Jenkins absent for the vote.

    

H.B.  381     1st Sub.   Veterans Affairs Amendments (V. Peterson)

 

Rep. Peterson explained the bill to the committee assisted by Gary Harter, Utah Department of

Veterans and Military Affairs.

 

MOTION:  Sen. Mayne moved to adopt the following amendments:

1.        Page 2, Lines 43 through 46:

     


                                     43             (3) (a) Except as required by Subsection (3)(b), the [governor] executive director shall

                                    44      appoint members in Subsections (2)(a), (b), (c), and (e) above for four-year terms.  The

                                    45        {governor}    executive director   shall make final appointments to the board by June 30 of any year in which

                                    46      appointments are to be made under this chapter.

 

The motion passed unanimously.

 

MOTION:  Sen. Mayne moved to pass the bill out favorably as amended.  The motion passed unanimously.

 

H.B.   382    Utah National Guard Fund Amendments (V. Peterson)

 

 

Rep. Peterson explained the bill to the committee assisted by Michael Moulton, Financial

Manager, National Guard.

 

MOTION:  Sen. Jenkins moved to pass the bill out favorably.  The motion passed unanimously.

 

H.B.    402     New Convention Facilities Development Incentive Act Amendments (B. Wilson)

 

MOTION:    Sen. Mayne moved to adopt the following amendment:

 

1.       Page 5, Line 135:

          


135             office, as provided in Subsection 63M-1-3405   {(1)}    (2) (b)(i)(E).

 

2.        Page 8, Lines 235 through 237:

           


             235             without consideration   {or partially or completely in lieu of money that the county or city would

             236             have otherwise paid to the qualified hotel owner or host local government as part of a

             237             convention incentive or as incremental property tax revenue}  , to be used as provided in


 

3.       Page 10, Line 276:       

 

             276                    (1) In accordance with rules adopted by the office under Section   {63M-1-3408}    63M-1-3409  , the


 

4.       Page 12, Line 362

     


             362      Subsections [(1)] (2)(b)(i)(C), (D), and (E) and [(1)] (2)(c)  {(ii)}   authorizing disclosure of the tax


 

5.       Page 14, Lines 415 through 417:

     


             415             (a)  "Displaced tax increment" means the amount of tax increment that a county would

             416             have paid to the host agency  ,   except for Subsection (2)(b)  , from tax increment revenue generated from the project area in which the hotel property is located  .

         (b) "Secured obligations" means bonds or other obligations of a host agency for the payment of which the host agency has, before March 13, 2015, pledged tax increment generated from the project area in which the hotel property is located.   

             417               {(b)}    (c)    "Tax increment" means the same as that term is defined in Section 17C-1-102.

         (d) "Tax increment shortfall" means the amount of displaced tax increment a host agency needs to receive, in addition to any other tax increment the host agency receives from the project area in which the hotel property is located, to provide the host agency sufficient tax increment funds to be able to pay the debt service on its secured obligations.    

 

6.          Page 14, Line 418:

          


             418             [(1)] (2) (a)  In accordance with rules adopted by the office  and subject to Subsection (5)  , [a host agency shall be


 

7.          Page 14, Line 423:

          


             423             would otherwise have paid to the host agency for that year   , subject to Subsection (5)  .


 

8.          Page 15, Line 456:

          


             456             59-2-924.

         (5)(a) Subject to Subsection (5)(b), a county may not spend the portion of incremental property tax revenue that is displaced tax increment until after 30 days after the county provides the notice required under Subsection (2)(c).

       (b) If, within 30 days after the county provides the notice required under Subsection (2)(c), a host agency provides written notice to the county that the host agency will experience a tax increment shortfall, the county shall, unless the host agency agrees otherwise, pay to the host agency displaced tax increment in the amount of the tax increment shortfall.   

 

9.          Page 17, Line 492:

          


             492                    (a) referring to the two annual deposits required under Subsection 59-12-103   {(14)}    (13) ; and


 

10.      Page 17, Line 509:

        


                                     509          (ii)  money transferred to the bounce back fund under Section   {63M-1-3043.5}    63M-1-3403.5   or

 

 

The motion passed unanimously.

 

Rep. Wilson explained the bill to the committee assisted by Tim Bodily, Attorney, Salt Lake

County.

 

Spoke to the bill:    John Valentine, Chairman, Utah Tax Commission

 

MOTION:  Sen. Mayne moved to pass the bill out favorably as amended.  The motion passed with Sen. Jenkins voting in opposition.

 

H.B.    411     1st Sub.     Venture Capital Enhancement Amendments (B. Wilson)

 

Rep. Wilson explained the bill to the committee assisted by Bret Jepsen, Managing Director,

Utah Capital.

 

MOTION:  Sen. Mayne moved to adopt 2nd Sub. H.B. 411.  The motion passed unanimously.

 

Spoke for the bill:    Brian Dean, Audit Supervisor, Office of the Legislative Auditor

 

MOTION:  Sen. Mayne moved to pass the bill out favorably.  The motion passed unanimously.

 

MOTION:  Sen. Iwamoto moved to adjourn.  The motion passed unanimously.

 

Acting Chair Millner adjourned the meeting at 5:06 p.m.

 

 

 

________________________

Sen. Aaron Osmond, Chair