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H.B. 359

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ENDANGERED SPECIES MITIGATION FUND

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: Thomas Hatch

5    AN ACT RELATING TO FISH AND GAME AND REVENUE AND TAXATION; CREATING
6    THE SPECIES PROTECTION ACCOUNT AND SPECIFYING USES OF ACCOUNT
7    MONIES; CREATING A TAX ON WATER DISTRIBUTED BY PUBLIC WATER
8    SYSTEMS; CREATING A ROYALTY ON UNPROCESSED BRINE SHRIMP EGGS;
9    DIRECTING REVENUE TO BE DEPOSITED IN THE SPECIES PROTECTION ACCOUNT;
10    AUTHORIZING THE STATE TAX COMMISSION TO MAKE RULES; PROVIDING FOR
11    CRIMINAL PENALTIES AND THE REVOCATION OF A CERTIFICATE OF
12    REGISTRATION; AND RESTRICTING THE TYPES OF FEES THAT MAY BE IMPOSED
13    TO HARVEST BRINE SHRIMP EGGS.
14    This act affects sections of Utah Code Annotated 1953 as follows:
15    AMENDS:
16         23-19-9, as last amended by Chapters 63 and 211, Laws of Utah 1995
17    ENACTS:
18         23-19-45, Utah Code Annotated 1953
19         59-22-1, Utah Code Annotated 1953
20         59-22-2, Utah Code Annotated 1953
21         59-22-3, Utah Code Annotated 1953
22         59-22-4, Utah Code Annotated 1953
23         59-22-5, Utah Code Annotated 1953
24         59-22-6, Utah Code Annotated 1953
25         59-23-1, Utah Code Annotated 1953
26         59-23-2, Utah Code Annotated 1953
27         59-23-3, Utah Code Annotated 1953


1         59-23-4, Utah Code Annotated 1953
2         59-23-5, Utah Code Annotated 1953
3         59-23-6, Utah Code Annotated 1953
4         63-34-13, Utah Code Annotated 1953
5    Be it enacted by the Legislature of the state of Utah:
6        Section 1. Section 23-19-9 is amended to read:
7         23-19-9. Revocation of license -- Grounds -- Notice -- Restriction on obtaining new
8     license.
9        (1) A license, permit, tag, or certificate of registration shall be revoked by a hearing officer
10    appointed by the division director:
11        (a) if the hearing officer determines that a person flagrantly and knowingly:
12        (i) violates or countenances the violation of:
13        (A) this title; or
14        (B) any rule, proclamation, or order of the Wildlife Board; or
15        (ii) while engaged in an activity regulated under this title:
16        (A) kills or injures domestic livestock; or
17        (B) violates Section 76-10-508; or
18        (b) upon receiving notice from another state's wildlife agency that a person has:
19        (i) failed to comply with the terms of a wildlife citation; or
20        (ii) been convicted of a violation that would warrant an action taken under Subsection
21    (1)(a).
22        (2) A hearing officer may revoke or suspend the certificate of registration of a person who
23    fails to comply with the terms of a certificate of registration.
24        (3) All certificates of registration for the harvesting of brine shrimp eggs, as defined in
25    Section 59-23-3 shall be revoked by a hearing officer appointed by the division if the hearing
26    officer determines the holder of the certificates of registration has violated Section 59-23-5.
27        [(3)] (4) The director shall appoint a qualified person as a hearing officer to perform the
28    adjudicative functions provided in this section. The director may not appoint a division employee
29    who investigates or enforces wildlife violations.
30        [(4)] (5) (a) A hearing officer may not revoke a person's license, permit, tag, or certificate
31    of registration if:

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1        (i) the person was not charged with a violation in Subsection (1) or (3);
2        (ii) the charges were dismissed; or
3        (iii) the person was found not guilty of the violation in a court of law.
4        (b) For purposes of this section, the following shall not be construed as a finding of not
5    guilty:
6        (i) a plea of guilty;
7        (ii) a plea of no contest; or
8        (iii) the entry of a plea in abeyance.
9        [(5)] (6) The hearing officer shall consider any recommendation made by a sentencing
10    court concerning revocation before issuing a revocation order.
11        [(6)] (7) Prior to revocation, a person must be:
12        (a) given written notice of an action the division intends to take; and
13        (b) provided with an opportunity for a hearing.
14        [(7)] (8) A hearing officer may prohibit the person from obtaining a new license, permit,
15    tag, or certificate of registration of the same type for a period of up to five years.
16        [(8)] (9) (a) A person may not obtain a new license, permit, tag, or certificate of
17    registration of the same type while under an order of revocation.
18        (b) A violation of Subsection (9)(a) is a class B misdemeanor and a hearing officer shall
19    prohibit the person from obtaining a license, permit, tag, or certificate of registration of the same
20    type for up to an additional five years.
21        [(9)] (10) A hearing officer may construe any subsequent conviction which occurs within
22    the revocation period as a flagrant violation and may prohibit the person from obtaining a new
23    license, permit, tag, or certificate of registration for up to an additional five years.
24        [(10)] (11) A hearing officer may reinstate a license, permit, tag, or certificate of
25    registration revoked under Subsection (1)(b)(i) upon receiving a report that the person has
26    complied with the citation.
27        [(11)] (12) (a) A person may file an appeal of a hearing officer's decision with the Wildlife
28    Board.
29        (b) The Wildlife Board shall review the hearing officer's findings and conclusions and any
30    written documentation submitted at the hearing. The Wildlife Board may:
31        (i) take no action;

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1        (ii) vacate or remand the decision; or
2        (iii) amend the [number of years] period of revocation.
3        [(12)] (13) The Wildlife Board may make rules to implement this section in accordance
4    with Title 63, Chapter 46b, Administrative Procedures Act.
5        Section 2. Section 23-19-45 is enacted to read:
6         23-19-45. Fees to harvest brine shrimp eggs.
7        The Wildlife Board may not impose fees to harvest brine shrimp eggs other than certificate
8    of registration fees.
9        Section 3. Section 59-22-1 is enacted to read:
10    
CHAPTER 22. WATER TAX ACT

11         59-22-1. Title.
12        This chapter shall be known as the "Water Tax Act."
13        Section 4. Section 59-22-2 is enacted to read:
14         59-22-2. Definition.
15        As used in this chapter "public water system" has the meaning provided in Section
16    19-4-102.
17        Section 5. Section 59-22-3 is enacted to read:
18         59-22-3. Water tax -- Tax rate -- Deposit of tax revenue.
19        (1) (a) A water tax of $.05 per 1,000 gallons is imposed on water delivered by a public
20    water system to a retail customer.
21        (b) The tax imposed in Subsection (1)(a) does not apply to water delivered through
22    secondary water systems.
23        (2) The revenue generated by the water tax shall be deposited in the Species Protection
24    Account created in Section 63-34-13.
25        (3) If the amount of money in the Species Protection Account on June 30 of any year is
26    in excess of $17,000,000, the imposition of the water tax shall be held in abeyance until the
27    amount of money in the account is less than $5,000,000 on June 30 of any year.
28        Section 6. Section 59-22-4 is enacted to read:
29         59-22-4. Payment of water tax.
30        (1) Each public water system shall file an annual report with the State Tax Commission
31    reporting the amount of water delivered to retail customers in the previous year.

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1        (2) (a) The commission shall send an annual invoice to each public water system for the
2    water tax.
3        (b) The tax due shall be $.05 for every 1,000 gallons delivered to retail customers in the
4    previous year.
5        (c) The invoices shall be mailed by August 1.
6        (3) Water taxes shall be paid by November 30.
7        (4) The commission shall prescribe rules as necessary for the payment and collection of
8    water taxes.
9        Section 7. Section 59-22-5 is enacted to read:
10         59-22-5. Collection of water taxes from customers -- Notice of water tax on statement
11     -- Interest on collections.
12        A public water system may:
13        (1) collect water taxes from customers in any manner considered appropriate by its
14    governing board;
15        (2) include on any statement sent to customers notice of the water tax required by law; and
16        (3) retain any interest earned on any water tax collected until the tax is submitted to the
17    State Tax Commission.
18        Section 8. Section 59-22-6 is enacted to read:
19         59-22-6. Penalties and interest for failure to pay tax.
20        The penalties and interest for failure to pay water tax are the same as the penalties and
21    interest for failure to pay tax as specified in Sections 59-1-401 and 59-1-402.
22        Section 9. Section 59-23-1 is enacted to read:
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CHAPTER 23. BRINE SHRIMP ROYALTY ACT

24         59-23-1. Title.
25        This chapter shall be known as the "Brine Shrimp Royalty Act."
26        Section 10. Section 59-23-2 is enacted to read:
27         59-23-2. Intent statement.
28         It is the policy of the state that when its natural resources are used, a royalty should be paid
29    to compensate the state for the use of the natural resource. The state receives royalties on minerals
30    extracted from the Great Salt Lake. A market has developed for brine shrimp eggs; therefore, the
31    state should be compensated for the use of this natural resource.

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1        Section 11. Section 59-23-3 is enacted to read:
2         59-23-3. Definition.
3        As used in this chapter "brine shrimp eggs" means dormant, early stage brine shrimp
4    embryos encapsulated as cysts that are harvested from the waters of the state.
5        Section 12. Section 59-23-4 is enacted to read:
6         59-23-4. Brine shrimp royalty -- Royalty rate -- Commission to prescribe valuation
7     methodology -- Deposit of revenue.
8        (1) There is levied a brine shrimp royalty of .035 of the value of unprocessed brine shrimp
9    eggs.
10        (2) The commission shall annually determine the value of unprocessed brine shrimp eggs
11    in accordance with a valuation methodology established by the commission in rule.
12        (3) All revenue generated by the brine shrimp royalty shall be deposited in the Species
13    Protection Account created in Section 63-34-13.
14        Section 13. Section 59-23-5 is enacted to read:
15         59-23-5. Payment of the brine shrimp royalty -- Rules.
16        (1) The brine shrimp royalty shall be paid by the person who harvests the brine shrimp
17    eggs.
18        (2) The royalty is due 30 days after the end of the annual brine shrimp season.
19        (3) The commission shall prescribe rules for the payment and collection of the brine
20    shrimp royalty.
21        Section 14. Section 59-23-6 is enacted to read:
22         59-23-6. Penalties and interest for failure to pay royalty.
23        The penalties and interest for failure to pay the brine shrimp royalty are the same as the
24    penalties and interest for failure to pay tax as specified in Sections 59-1-401 and 59-1-402.
25        Section 15. Section 63-34-13 is enacted to read:
26         63-34-13. Species Protection Account.
27        (1) As used in this section, "species protection" means an action to protect any plant or
28    animal species identified as sensitive by the state or as threatened or endangered under the
29    Endangered Species Act of 1973, U.S.C. 16 Sec. 1531 et seq.
30        (2) There is created within the General Fund a restricted account known as the Species
31    Protection Account.

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1        (3) The account shall consist of:
2        (a) revenue generated by the water tax provided for in Title 59, Chapter 22, Water Tax
3    Act;
4        (b) revenue generated by the brine shrimp tax provided for in Title 59, Chapter 23, Brine
5    Shrimp Royalty Act; and
6        (c) interest earned on monies in the account.
7        (4) Monies in the account may be appropriated by the Legislature for the following
8    purposes:
9        (a) to develop and implement species status assessments and species protection measures;
10        (b) to obtain biological opinions of proposed species protection measures;
11        (c) to conduct studies, investigations, and research into the effects of proposed species
12    protection measures;
13        (d) to contest species protection proposals that are not based on valid biological data;
14        (e) to pay for the state's voluntary contributions to the Utah Reclamation Mitigation and
15    Conservation Account under the Central Utah Project Completion Act, Pub. L. No. 102-575, titles
16    II-VI, 106 stat, 4605-4655; and
17        (f) to pay for expenses of the State Tax Commission under Title 59, Chapter 22, Water Tax
18    Act, and Title 59, Chapter 23, Brine Shrimp Royalty Act.
19        (5) The purposes specified in Subsections (3)(a) through (3)(d) may be accomplished by
20    the state or, in an appropriation act, the Legislature may authorize the Department of Natural
21    Resources to award grants to political subdivisions of the state to accomplish those purposes.
22        (6) Monies in the account may not be used to develop or implement a habitat conservation
23    plan required under federal law unless the federal government pays for at least 1/3 of the habitat
24    conservation plan costs.




Legislative Review Note
    as of 2-21-97 3:06 PM


A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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