| Members Present: Sen. Daniel McCay, Chair Rep. Steve Eliason, Chair Sen. Lincoln Fillmore Sen. Stephanie Pitcher Sen. Chris H. Wilson Rep. Stewart E. Barlow Rep. Brady Brammer Rep. Jennifer Dailey-Provost Rep. Joseph Elison Rep. Marsha Judkins Rep. Jason B. Kyle Rep. Rosemary T. Lesser Rep. Phil Lyman | Rep. Robert M. Spendlove Rep. Keven J. Stratton Rep. Norman K Thurston Members Absent: Sen. Curtis S. Bramble Rep. Jefferson Moss Staff Present: Alex R. Janak, Managing Policy Analyst Chris Stitt, Policy Analyst Andrea Valenti Arthur, Managing Associate General Counsel Gus Harb, Associate General Counsel Victoria Firmage, Administrative Assistant |
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Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.
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| Chair Eliason called the meeting to order at 1:43 p.m. |
| 1.Committee Business |
| MOTION:Rep. Lesser moved to approve the minutes of the September 18, 2023, meeting.The motion passed with a vote of 12-0-6. | |||
| Yeas - 12 | Nays- 0 | Abs- 6 | |
| Rep. S. Barlow Rep. B. Brammer Rep. S. Eliason Rep. J. Elison Sen. L. Fillmore Rep. M. Judkins Rep. J. Kyle Rep. R. Lesser Rep. R. Spendlove Rep. K. Stratton Rep. N. Thurston Sen. C. Wilson | Sen. C. Bramble Rep. J. Dailey-Provost Rep. P. Lyman Sen. D. McCay Rep. J. Moss Sen. S. Pitcher |
| Chair Eliason informed the committee that the chairs opened a committee bill file subsequent to the September 18, 2023, meeting. |
| 2.Lease Revenue Bonds |
| Alex R. Janak introduced school district use of lease revenue bonds. |
| Todd Hauber, President, Utah Association of School Business Officials, and Randy Larsen, Attorney, Gilmore and Bell, described what lease revenue bonds are and presented an experience of school district use of those bonds. |
| 2. Lease Revenue Bonds and Property Tax Questions |
| The committee asked questions and Randy Larsen, Matt Dugdale, Managing Director, Stifel Nicolaus and Company, and Todd Hauber responded. |
| Rep. Dailey-Provost asked a question of Rep. Brammer and he responded. |
| The committee asked further questions and Randy Larsen responded. |
| Todd Hauber continued to present an experience of school district use of lease revenue bonds. |
| Matt Dugdale provided additional information. |
| Rep. Dailey-Provost asked a question and Randy Larsen and Matt Dugdale responded. |
| Rusty Cannon, President, Utah Taxpayer Association, provided additional information regarding school district use of lease revenue bonds. |
| The committee asked questions and Rusty Cannon responded. |
| Sen. Fillmore provided an example for the committee. |
| MOTION:Sen. Fillmore moved to open a committee bill file to address lease revenue bonds and the committee discussed. The motion passed with a vote of 15-0-3. | |||
| Yeas - 15 | Nays- 0 | Abs- 3 | |
| Rep. S. Barlow Rep. B. Brammer Rep. S. Eliason Rep. J. Elison Sen. L. Fillmore Rep. M. Judkins Rep. J. Kyle Rep. R. Lesser Rep. P. Lyman Sen. D. McCay Sen. S. Pitcher Rep. R. Spendlove Rep. K. Stratton Rep. N. Thurston Sen. C. Wilson | Sen. C. Bramble Rep. J. Dailey-Provost Rep. J. Moss |
| 3.Property Tax - Real Property Price Disclosure and Transfer Taxes |
| Sen. McCay introduced issues related to a required disclosure of real property prices when the ownership of the property is transferred. |
| 3. Disclosure as Property Tax Valuation Tool Summary |
| Sen. McCay assumed the chair. |
| Chair McCay asked for the committee's thoughts on this issue. |
| Chair McCay requested that Rep. Thurston assume the chair and the committee discussed disclosure of property tax value issues further. |
| Rep. Eliason resumed the chair. |
| Sen. McCay responded to the issues that the committee brought up and continued to discuss. |
| 4.Sales and Use Tax - Sales Tax Exemption for Political Subdivisions |
| Chris Stitt introduced amending Utah Code Section 59-12-104 regarding sales tax exemptions. |
| Rep. Stephen Whyte and Reid Carlson, Chairman of the Board, South Utah Valley Solid Waste District, presented amending Utah Code Section 59-12-104 regarding an existing sales tax exemption. |
| The committee asked questions and Reid Carlson and Rep. Whyte responded. |
| Chris Stitt provided additional information. The committee continued the discussion. |
| John Valentine, Commissioner, State Tax Commission, answered questions from the committee. |
| 5.Income Tax Credit Review |
| Chris Stitt introduced a summary of Utah tax credits in 2023. |
| 7a. Utah Tax Credits Summary 2023 |
| Noah Hansen, Economist, Office of Legislative Fiscal Analyst, presented on the refundable motion picture tax credit and nonrefundable tax credit for investment in certain life science establishments. |
| 7b. Tax Credit Analysis 2023 Presentation |
| The committee asked questions and Noah Hansen responded. The committee also discussed the continual review of these tax credits. |
| Andrea Valenti Arthur provided clarifying information and Noah Hansen answered further questions. The committee continued to discuss. |
| 6.Legislative Audit - Intermountain Power Agency and Intermountain Power Plant |
| Brian Dean, Deputy Auditor General, Office of Legislative Auditor General (OLAG), and Matthias Boone, Senior Audit Supervisor, OLAG, presented the audit of the Intermountain Power Agency. |
| 9a. Performance Audit of the Intermountain Power Agency Presentation |
| 9b. Performance Audit of the Intermountain Power Agency |
| The committee asked questions and Brian Dean responded. |
| Cameron Cowan, General Manager, Intermountain Power Agency, Vicki Lyman, Commissioner, Millard County, and Steve Young, Attorney, Holland and Hart, responded to the audit. |
| MOTION:Chair Eliason moved to recommend any further action to the Public Utilities, Energy, and Technology Interim Committee. The motion passed with a vote of 16-0-2. | |||
| Yeas - 16 | Nays- 0 | Abs- 2 | |
| Rep. S. Barlow Rep. B. Brammer Rep. J. Dailey-Provost Rep. S. Eliason Rep. J. Elison Sen. L. Fillmore Rep. M. Judkins Rep. J. Kyle Rep. R. Lesser Rep. P. Lyman Sen. D. McCay Sen. S. Pitcher Rep. R. Spendlove Rep. K. Stratton Rep. N. Thurston Sen. C. Wilson | Sen. C. Bramble Rep. J. Moss |
| 7.Other Items/Adjourn |
| MOTION:Sen. Wilson moved to adjourn.The motion passed with a vote of 16-0-2. | |||
| Yeas - 16 | Nays- 0 | Abs- 2 | |
| Rep. S. Barlow Rep. B. Brammer Rep. J. Dailey-Provost Rep. S. Eliason Rep. J. Elison Sen. L. Fillmore Rep. M. Judkins Rep. J. Kyle Rep. R. Lesser Rep. P. Lyman Sen. D. McCay Sen. S. Pitcher Rep. R. Spendlove Rep. K. Stratton Rep. N. Thurston Sen. C. Wilson | Sen. C. Bramble Rep. J. Moss |
| Chair Eliason adjourned the meeting at 3:55 p.m. |