MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

February 10, 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 3:50 p.m.

MOTION:     Rep. Cunningham moved to approve the minutes of the February 10, 2016 meeting. The motion passed unanimously with Rep. Froerer, Rep. Hutchings, Rep. Knotwell, and Rep. Stanard absent for the vote.

H.B. 190         International Tax Credits (Rep. B. Wilson)

Rep. Wilson explained the bill to the committee with the assistance of J.D. Oldham, Great Basin Industrial. John Valentine, Chair, State Tax Commission, answered questions from the committee.

MOTION:     Rep. Sagers moved to replace H.B. 190 with 2nd Sub. H.B. 190. The motion passed unanimously with Rep. Hutchings absent for the vote.

MOTION:     Rep. Cunningham moved to hold the bill. The motion passed with Rep. Sagers voting in opposition and Rep. Hutchings absent for the vote.

At the invitation of Chair McCay, "Retirement Primer" was presented by Jonathan Ball, Director, Office of the Legislative Fiscal Analyst; Shannon Halverson, Associate General Council, Office of Legislative Research and General Council, ; and Alex Janak, Policy Analyst, Office of Legislative Research and General Council. The presenters answered questions from the committee.

H.B. 215         Local Option Sales and Use Tax Amendments (Rep. B. Greene)

Rep. Greene explained the bill to the committee.

Spoke for the bill:       Michael Daniels, Mayor, Pleasant Grove

                                    George Chapman, citizen

                                    Bill Lee, Commissioner, Utah County

Spoke against the bill:

                                    Linda Johnson, Breathe Utah

                                    Billie Hesterman, Utah Taxpayers Association

                                    Abbie Albrecht, Utah Transportation Coalition

                                    Cameron Diehl, Utah League of Counties and Towns

MOTION:     Rep. Froerer moved to replace H.B. 215 with 1st Sub. H.B. 215. The motion passed unanimously with Rep. Hutchings, Rep. Ivory, Rep. McKell, and Rep. Stanard absent for the vote.

MOTION:     Rep. Ivory moved to pass 1st Sub. H.B. 215 out favorably. The motion failed with Rep. Greene, Rep. Hutchings, Rep. Ivory, and Rep. McCay voting in favor and Rep. McKell and Rep. Stanard absent for the vote.

Vice Chair Peterson assumed the chair.

H.B. 202         Hygiene Tax Act (Rep. S. Duckworth)

Rep. Duckworth explained the bill to the committee.

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

1.    Page 4, Line 112 through Page 5, Line 124: 

112 (10) (a) amounts paid for [an item described in Subsection (10)(b) if]:

113 (i) the following items, if the items are advertised for incontinence care:

114 (A) adult or youth disposable diapers {  , excluding diapers for infants and toddlers  } ;

115 (B) underwear;

116 (C) pants;

117 (D) pads or liners; or

118 (E) underpads;

119 (ii) tampons; {  or  }

120 (iii) sanitary napkins; or

         (iv) disposable diapers for infants and toddlers; or 

121 (b) amounts paid for a drug, a syringe, or a stoma supply if:

122 (i) the item is intended for human use; and

123 (ii) (A) a prescription was issued for the item; or

124 (B) the item was purchased by a hospital or other medical facility; [and]

The motion to amend passed unanimously with Rep. Greene and Rep. Stanard absent for the vote.

MOTION:     Rep. King moved to pass the bill out favorably as amended. The motion failed with Rep. Briscoe, Rep. Hutchings, and Rep. King voting in favor and Rep. Greene and Rep. Stanard absent for the vote.

S.B. 31            Tax Commission Levy Process (Sen. W. Harper)

The bill was not heard at the request of the sponsor.

MOTION:     Rep. Sagers moved to adjourn the meeting. The motion passed unanimously with Rep. Greene and Rep. Stanard absent for the vote.

Vice Chair Peterson adjourned the meeting at 6:38 p.m.

Daniel McCay, Chair