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H.B. 155
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6 This act modifies the Property Tax Act to amend the Farmland Assessment Act. The act
7 defines terms, clarifies when land qualifies under or is withdrawn from the Farmland
8 Assessment Act, and modifies provisions related to the rollback tax. The act addresses the
9 process for applying for assessment under the Farmland Assessment Act. The act modifies
10 provisions related to one-time payments in lieu of the rollback tax. The act addresses
11 qualification for assessment under the Farmland Assessment Act if land is located in more
12 than one county. This act takes effect on January 1, 2003.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 59-2-502, as last amended by Chapter 241, Laws of Utah 2001
16 59-2-503, as last amended by Chapter 175, Laws of Utah 2000
17 59-2-504, as repealed and reenacted by Chapter 235, Laws of Utah 1992
18 59-2-505, as renumbered and amended by Chapter 4, Laws of Utah 1987
19 59-2-506, as last amended by Chapter 236, Laws of Utah 1995
20 59-2-508, as last amended by Chapter 86, Laws of Utah 2000
21 59-2-509, as last amended by Chapter 9, Laws of Utah 2001
22 59-2-511, as last amended by Chapter 175, Laws of Utah 2000
23 59-2-512, as renumbered and amended by Chapter 4, Laws of Utah 1987
24 ENACTS:
25 59-2-506.5, Utah Code Annotated 1953
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-2-502 is amended to read:
28 59-2-502. Definitions.
29 As used in this part:
30 (1) "Actively devoted to agricultural use" means that the land in agricultural use produces
31 in excess of 50% of the average agricultural production per acre:
32 (a) as determined under Section 59-2-503 ; and
33 (b) for:
34 (i) the given type of land; and
35 (ii) the given county or area.
36 (2) "Conservation easement rollback tax" means the tax imposed under Section
37 59-2-506.5 .
38 [
39 (a) land devoted to the raising of useful plants and animals with a reasonable expectation
40 of profit, including:
41 (i) forages and sod crops;
42 (ii) grains and feed crops;
43 (iii) livestock as defined in Section 59-2-102 ;
44 (iv) trees and fruits; or
45 (v) vegetables, nursery, floral, and ornamental stock; or
46 (b) land devoted to and meeting the requirements and qualifications for payments or other
47 compensation under a crop-land retirement program with an agency of the state or federal
48 government.
49 [
50 (a) parcels of ground are laid out and mapped by their boundaries, course, and extent; and
51 (b) the plat has been approved as provided in Section 10-9-805 or 17-27-805 .
52 [
53
54
55 (5) "Rollback tax" means the tax imposed under Section 59-2-506 .
56 (6) "Withdrawn from this part" means that land that has been assessed under this part is
57 no longer assessed under this part for any reason including that:
58 (a) an owner voluntarily requests that the land be withdrawn from this part;
59 (b) the land is no longer actively devoted to agricultural use;
60 (c) (i) the land has a change in ownership; and
61 (ii) (A) the new owner fails to apply for assessment under this part as required by Section
62 59-2-509 ; or
63 (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
64 and
65 (II) the land does not meet the requirements of this part to be assessed under this part;
66 (d) (i) the legal description of the land changes; and
67 (ii) (A) an owner fails to apply for assessment under this part as required by Section
68 59-2-509 ; or
69 (B) (I) an owner applies for assessment under this part as required by Section 59-2-509 ;
70 and
71 (II) the land does not meet the requirements of this part to be assessed under this part;
72 (e) if required by the county assessor, the owner of the land:
73 (i) fails to file a new application as provided in Subsection 59-2-508 (3); or
74 (ii) fails to file a signed statement as provided in Subsection 59-2-508 (3); or
75 (f) except as provided in Section 59-2-503 , the land fails to meet a requirement of Section
76 59-2-503 .
77 Section 2. Section 59-2-503 is amended to read:
78 59-2-503. Qualifications for agricultural use assessment.
79 (1) For general property tax purposes, land may be assessed [
80 value [
81 (a) is not less than five contiguous acres in area, except [
82 on the basis of the value that the land has for agricultural use:
83 (i) if:
84 (A) the land is devoted to agricultural use in conjunction with other eligible acreage in the
85 same county; and
86 (B) subject to Subsection (6), the land and the other eligible acreage described in
87 Subsection (1)(a)(i)(A) have identical legal ownership; or
88 (ii) as provided under Subsection (4); and
89 (b) except as provided in Subsection (5):
90 (i) is actively devoted to agricultural use; and
91 [
92 immediately preceding the tax year [
93 [
94
95
96 (2) In determining whether land is actively devoted to agricultural use, production per acre
97 for a given county or area and a given type of land shall be determined by using the first applicable
98 of the following [
99 [
100 Statistics;
101 [
102 [
103 commission by rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative
104 Rulemaking Act.
105 (3) Land may [
106 if the land [
107 (a) is subject to the privilege tax imposed by Section 59-4-101 ;
108 (b) is owned by the state or any of [
109 (c) meets the requirements of Subsection (1).
110 (4) [
111 equalization may grant a waiver of the acreage limitation for land upon:
112 (a) appeal by the owner; and
113 (b) submission of proof that:
114 [
115 agricultural products produced on the property in question; or
116 [
117 acquisition by a governmental entity by:
118 (I) eminent domain; or
119 (II) the threat or imminence of an eminent domain proceeding;
120 [
121 [
122 (5) (a) [
123 equalization may grant a waiver of the [
124 land is actively devoted to agricultural use for the tax year [
125 assessed under this part upon:
126 (i) appeal by the owner; and
127 (ii) submission of proof that:
128 [
129 years immediately preceding that tax year; and
130 [
131 due to no fault or act of the owner, purchaser, or lessee.
132 [
133 [
134 not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production [
135
136 [
137 rotation program, or other similar accepted cultural practices which do not give the owner,
138 purchaser, or lessee a reasonable opportunity to satisfy the production [
139 required for land actively devoted to agricultural use.
140 (6) (a) For purposes of Subsection (1)(a)(i)(B), the land and the other eligible acreage
141 described in Subsection (1)(a)(i)(B) are considered to have identical legal ownership regardless
142 of whether the one or more persons that have a beneficial ownership in the land and the other
143 eligible acreage:
144 (i) own the land and the other eligible acreage; or
145 (ii) are beneficiaries of a trust if the land and the other eligible acreage are held in trust.
146 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
147 commission may by rule define what constitutes:
148 (i) a beneficial interest; and
149 (ii) consistent with Subsection (1) and this Subsection (6), identical legal ownership.
150 Section 3. Section 59-2-504 is amended to read:
151 59-2-504. Exclusions from designation as agricultural use -- Exception.
152 (1) [
153
154 [
155 prohibiting its use for agricultural purposes with surface improvements in place, whether within
156 or without a city; or
157 [
158 agricultural use[
159 [
160 land has been [
161 owner is not able to transfer title to the platted property, or continue development of the platted
162 property due to economic circumstances, or some other reasonable cause, the owner may petition
163 the county assessor for reinstatement under [
164 purposes as land in agricultural use without vacating the subdivision plat.
165 (b) The county assessor may grant the petition for reinstatement described in Subsection
166 (2)(a) if the land [
167 actively devoted to agricultural use.
168 [
169 any of the following surface improvements are in place:
170 (a) curb[
171 (b) gutter[
172 (c) pavement.
173 Section 4. Section 59-2-505 is amended to read:
174 59-2-505. Indicia of value for agricultural use assessment -- Inclusion of fair market
175 value on tax notice.
176 [
177 land has for agricultural use as determined by the commission when assessing land [
178
179
180 (i) that meets the requirements of Section 59-2-503 to be assessed under this part; and
181 (ii) for which the owner has:
182 (A) made a timely application in accordance with Section 59-2-508 for [
183 assessment[
184
185
186 (B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the
187 county assessor.
188 (b) If land that becomes subject to a conservation easement created in accordance with
189 Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection
190 (1)(a) for assessment under this part, the county assessor shall consider only those indicia of value
191 that the land has for agricultural use in accordance with Subsection (1)(a) when assessing the land.
192 (2) In addition to the value determined in accordance with Subsection (1), the assessor
193 shall [
194 59-2-919 (4).
195 (3) The county board of equalization shall review the agricultural use value and fair market
196 value assessments each year as provided under Section 59-2-1001 .
197 Section 5. Section 59-2-506 is amended to read:
198 59-2-506. Rollback tax -- Exception for conservation easements -- Penalty -- Lien --
199 Computation of tax -- Procedure -- Collection -- Distribution.
200 (1) [
201
202
203 the land is subject to [
204
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206 [
207 [
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210 [
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212 [
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214 [
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216 [
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227 [
228 [
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238 (2) (a) [
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242 from this part.
243 (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
244 withdrawn from this part is subject to a penalty equal to the greater of:
245 (i) $10; or
246 (ii) 2% of the rollback tax due for the last year of the rollback period.
247 [
248
249
250 [
251 (a) a lien [
252 (b) due and payable [
253 the notice required by Subsection (6).
254 [
255 computing the difference for the rollback period described in Subsection (4)(b) between:
256 (i) the tax paid while the land was [
257 (ii) the tax that would have been paid had the property not been [
258 this part.
259 (b) For purposes of this section, the rollback period is a time period that:
260 (i) begins on the later of:
261 (A) the date the land is first assessed under this part; or
262 (B) five years preceding the day on which the county assessor mails the notice required
263 by Subsection (6); and
264 (ii) ends the day on which the county assessor mails the notice required by Subsection (6).
265 (5) (a) The county treasurer shall:
266 (i) collect the rollback tax; and
267 (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on
268 the property has been satisfied.
269 (b) The rollback tax collected under this section shall:
270 (i) be paid into the county treasury; and
271 (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance with
272 the property tax levies for the current year.
273 (6) (a) The county assessor shall mail to an owner of the land that is subject to a rollback
274 tax a notice that:
275 (i) the land is withdrawn from this part;
276 (ii) the land is subject to a rollback tax under this section; and
277 (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within 30
278 days after the day on which the county assessor mails the notice.
279 (b) The rollback tax is delinquent if an owner of the land that is withdrawn from this part
280 does not pay the rollback tax within 30 days after the day on which the county assessor mails the
281 notice required by Subsection (6)(a).
282 [
283
284
285 (7) The following shall be governed by the procedures provided for the assessment and
286 taxation of real property not [
287 (a) except as provided in this section, the assessment of the rollback tax imposed by
288 Subsection (1);
289 (b) the attachment of the lien for the rollback tax; and
290 (c) the right of an owner or other interested party to review any judgment of the county
291 board of equalization affecting the rollback tax.
292 [
293
294 [
295 only as a result of [
296
297 (b) Land described in Subsection (8)(a) that is withdrawn from [
298 as a result of an event other than an amendment to this part, whether voluntary or involuntary,
299 [
300 [
301 from taxation under Utah Constitution Article XIII, Section 2, is [
302
303 Section 6. Section 59-2-506.5 is enacted to read:
304 59-2-506.5. Conservation easement rollback tax.
305 (1) (a) Notwithstanding Section 59-2-506 and subject to the requirements of this section,
306 land is not subject to the rollback tax under Section 59-2-506 , if:
307 (i) the land becomes subject to a conservation easement created in accordance with Title
308 57, Chapter 18, Land Conservation Easement Act;
309 (ii) the creation of the conservation easement described in Subsection (1)(a)(i) is
310 considered to be a qualified contribution for federal purposes under Section 170(h), Internal
311 Revenue Code;
312 (iii) the land was assessed under this part in the tax year preceding the h [
313
313a THE REQUIREMENTS OF SECTION 59-2-503 h ;
314 (iv) h AFTER h the creation of the conservation easement described in Subsection (1)(a)(i) h
314a [
315 the land h [
315a OF SECTION 59-2-503 h ;
316 h [
317 cause for the land to be ineligible for assessment under this part
318 h [
318a (1)(b).
319 (b) An owner of land described in Subsection (1)(a) shall notify the county assessor that
320 the land meets the requirements of Subsection (1)(a) within 30 days after the day on which the
321 h [
321a MEET THE REQUIREMENTS OF SECTION 59-2-503 h .
322 (2) (a) Except as provided in Subsection (4), h [
323 to a conservation easement rollback tax imposed in accordance with this section
323a conservation
324 easement is terminated in accordance with Section 57-18-5 h [
324a (i) THE LAND DESCRIBED IN SUBSECTION (1) IS SUBJECT TO A CONSERVATION EASEMENT
324b ROLLBACK TAX IMPOSED IN ACCORDANCE WITH THIS SECTION; OR
324c (ii) IF THE LAND DESCRIBED IN SUBSECTION (1) IS OWNED BY A GOVERNMENTAL ENTITY
324d AS DEFINED IN SECTION 59-2-511, THE LAND IS SUBJECT TO A ONE-TIME IN LIEU FEE PAYMENT
324e THAT IS:
324f (A) IN AN AMOUNT EQUAL TO THE CONSERVATION EASEMENT ROLLBACK TAX IMPOSED IN
324g ACCORDANCE WITH THIS SECTION; AND
324h (B) PAID, COLLECTED, AND DISTRIBUTED IN THE SAME MANNER AS THE CONSERVATION
324i EASEMENT ROLLBACK TAX IMPOSED IN ACCORDANCE WITH THIS SECTION. h
325 (b) The conservation easement rollback tax is an amount equal to the h [
325a of h [
325b h (i) h the
326 property tax imposed on the land for each year during the time period that is the shorter of:
327 h [
327a described
328 in Subsection (1); or
329 h [
329a (3)(b) h ; AND
329b (ii) 20 h .
330 (c) An owner shall notify the county assessor that a conservation easement on land
331 described in Subsection (1) has been terminated in accordance with Section 57-18-5 within 180
332 days after the day on which the conservation easement is terminated.
333 (3) (a) The conservation easement rollback tax under this section is:
334 (i) a lien on the land described in Subsection (1) until paid; and
335 (ii) due and payable on the day the county assessor mails the notice required by Subsection
336 (3)(b).
337 (b) If land is subject to a conservation easement rollback tax under Subsection (2), the
338 county assessor shall mail to an owner of the land a notice that:
339 (i) the land is subject to a conservation easement rollback tax under this section; and
340 (ii) the conservation easement rollback tax is delinquent if the owner of the land does not
341 pay the tax within 30 days after the day on which the county assessor mails the notice.
342 (c) The conservation easement rollback h TAX h is delinquent if an owner of the land that is
342a subject
343 to the conservation easement rollback tax does not pay the conservation easement rollback tax
344 within 30 days after the day on which the county assessor mails the notice required by Subsection
345 (3)(b).
346 (d) The conservation easement rollback tax shall be paid, collected, and distributed in a
347 manner consistent with this section and Section 59-2-506 .
348 (4) (a) Notwithstanding Subsection (2), land described in Subsection (2) is not subject to
349 the conservation easement rollback tax h OR THE ONE-TIME IN LIEU FEE PAYMENT REQUIRED BY
349a SUBSECTION (2) h if after the conservation easement is terminated in
350 accordance with Section 57-18-5 :
351 (i) an owner of the land applies for assessment of the land as land in agricultural use under
352 this part within 30 days after the day on which the conservation easement is terminated; and
353 (ii) the application for assessment of the land described in Subsection (4)(a)(i) is approved
354 within two years after the day on which the application was filed.
355 (b) Notwithstanding Subsection (4)(a), if the land described in Subsection (4)(a)(i) does
356 not receive approval for assessment as land in agricultural use under this part within two years after
357 the day on which the application was filed under Subsection (4)(a), an owner of the land shall:
358 (i) within 30 days after the day on which the two-year period expires, notify the county
359 assessor that the two-year period expired; and
360 (ii) pay the conservation easement rollback tax h OR THE ONE-TIME IN LIEU FEE PAYMENT
360a REQUIRED BY SUBSECTION (2) h as provided in this section.
361 (5) Land subject to a conservation easement created in accordance with Title 57, Chapter
362 18, Land Conservation Easement Act, is not subject to a conservation easement rollback tax h OR A
362a ONE-TIME IN LIEU FEE PAYMENT h if the
363 land is assessed under this part in accordance with Section 59-2-505 .
364 Section 7. Section 59-2-508 is amended to read:
365 59-2-508. Application -- Consent to audit and review -- Purchaser's or lessee's signed
366 statement.
367 (1) [
368 assessment under this part wants the land to be assessed under this part, the owner shall submit an
369 application to the county assessor of the county in which the land is located.
370 (2) [
371
372 (a) be on a form [
373 (i) approved by the commission; and
374 (ii) provided [
375 (A) by the county assessor; and
376 (B) at the request of an owner;
377 (b) provide for the reporting of information [
378 (c) be [
379 (i) May 1 of the tax year in which [
380 is requested[
381 the land was not assessed under this part in the year before the application is submitted; or
382 (ii) by the date otherwise required by this part for land that prior to the application being
383 submitted has been assessed under this part;
384 (d) be signed by all of the owners of the land that under the application would be assessed
385 under this part;
386 [
387 [
388 (3) (a) Once the application for [
389 in Subsection (1) has been approved, the county may [
390 [
391 (A) by written request of the county assessor; and
392 (B) that verifies that the land qualifies for [
393
394 [
395 or application for [
396
397 (b) Notwithstanding Subsection (3)(a), a county shall require that an owner provide notice
398 if land is withdrawn from this part:
399 (i) as provided in Section 59-2-506 ; or
400 (ii) for land that is subject to a conservation easement created in accordance with Section
401 59-2-506.5 , as provided in Section 59-2-506.5 .
402 (c) An application or signed statement required under Subsection (3)(a) shall be submitted
403 by the date specified in the written request of the county assessor for the application or signed
404 statement.
405 (4) A certification by [
406 statement are true is considered as if made under oath and subject to the same penalties as provided
407 by law for perjury.
408 (5) (a) All owners applying for participation under this part and all purchasers or lessees
409 signing statements under Subsection (6) are considered to have given their consent to field audit
410 and review by [
411 (i) the commission [
412 (ii) the county assessor[
413 (iii) the commission and the county assessor.
414 (b) The consent described in Subsection (5)(a) is a condition to the acceptance of any
415 application or signed statement.
416 (6) Any owner of [
417 this part [
418 a purchaser or lessee actively devotes the land to agricultural use as required by Section 59-2-503 ,
419 may qualify [
420 application required under Subsection (2), a signed statement from that purchaser or lessee
421 certifying those facts [
422
423 the requirements of Section 59-2-503 for assessment under this part.
424 Section 8. Section 59-2-509 is amended to read:
425 59-2-509. Change of ownership or legal description.
426 [
427
428 (1) Subject to the other provisions of this section, land assessed under this part may
429 continue to be assessed under this part if the land continues to comply with the [
430 requirements of this part, [
431 to have:
432 (a) the same owner [
433 (b) legal description. [
434 (2) Notwithstanding Subsection (1), land described in Subsection (1) is subject to the
435 rollback tax [
436 as provided in Section 59-2-506 if the land is withdrawn from this part.
437 (3) Notwithstanding Subsection (1), land is withdrawn from this part if:
438 (a) there is a change in:
439 (i) the ownership [
440
441 (ii) the legal description of the land; and
442 (b) after a change described in Subsection (3)(a):
443 (i) the land does not meet the requirements of Section 59-2-503 ; or
444 [
445 assessment[
446 (4) An application required by this section shall be submitted within 120 days after the day
447 on which there is a change described in Subsection (3)(a).
448 Section 9. Section 59-2-511 is amended to read:
449 59-2-511. Acquisition of land by governmental entity -- Requirements.
450 (1) For purposes of this section, "governmental entity" means:
451 (a) the United States;
452 (b) the state;
453 (c) a political subdivision of the state, including:
454 (i) a county;
455 (ii) a city;
456 (iii) a town;
457 (iv) a school district; or
458 (v) a special district; or
459 (d) an entity created by the state or the United States, including:
460 (i) an agency;
461 (ii) a board;
462 (iii) a bureau;
463 (iv) a commission;
464 (v) a committee;
465 (vi) a department;
466 (vii) a division;
467 (viii) an institution;
468 (ix) an instrumentality; or
469 (x) an office.
470 (2) (a) Except as provided in Subsections (3) and (4), [
471 governmental entity is subject to the rollback tax imposed by this part if:
472 (i) prior to the governmental entity acquiring the [
473
474 [
475 (ii) after the governmental entity acquires the [
476 not [
477 [
478 [
479
480 [
481
482 [
483
484 [
485
486 [
487 [
488 [
489 rollback tax imposed by this part if:
490 (i) a portion of the public right-of-way is located within a subdivision as defined in Section
491 10-9-103 ; or
492 (ii) in exchange for the dedication, the person dedicating the public right-of-way receives:
493 (A) money; or
494 (B) other consideration.
495 (3) (a) Except as provided in Subsection (4), [
496 entity is not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee
497 payment as provided in Subsection (3)(b), if:
498 (i) the governmental entity acquires the [
499 (ii) (A) the [
500 proceedings; and
501 (B) the governmental entity provides written notice of the proceedings to the owner [
502
503 (iii) the [
504 (b) (i) If a governmental entity acquires [
505 governmental entity shall make a one-time in lieu fee payment:
506 (A) to the county [
507 and
508 (B) in an amount equal to the amount of rollback tax calculated under Section 59-2-506 .
509 (ii) If a governmental entity acquires [
510 (3)(a)(ii), the governmental entity shall make a one-time in lieu fee payment:
511 (A) to the county [
512 and
513 (B) (I) if the land remaining after the acquisition [
514
515 of Section 59-2-503 , in an amount equal to the rollback tax under Section 59-2-506 on the land
516 acquired by the governmental entity; or
517 (II) if the land remaining after the acquisition by the governmental entity is less than five
518 acres [
519 rollback tax under Section 59-2-506 on the land acquired by the governmental entity and the
520 [
521 (iii) For purposes of Subsection (3)(b)(ii), "land remaining after the acquisition by the
522 governmental entity" includes other eligible acreage described in Subsection 59-2-503 (1)(a)(i) that
523 is used in conjunction with the land remaining after the acquisition by the governmental entity.
524 (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute the
525 revenues generated by the payment:
526 (i) to the taxing entities in which the [
527 (ii) in the same proportion as the revenue from real property taxes is distributed.
528 (4) Except as provided in Section [
529 governmental entity [
530 conservation easement [
531 (a) the [
532 (b) the governmental entity acquiring the [
533 fee payment under Subsection (3)(b).
534 Section 10. Section 59-2-512 is amended to read:
535 59-2-512. Land located in more than one county.
536 [
537 one county, compliance with [
538 (a) shall be determined on the basis of the total area and [
539 contiguous land[
540 (b) is not determined on the basis of the area or [
541 is located in [
542 (2) If land in agricultural use in one ownership is located in more than one county but the
543 land is not contiguous across county lines, compliance with the requirements of this part shall be
544 determined on the basis of the total area and production of the land in each county.
545 Section 11. Effective date.
546 This act takes effect on January 1, 2003.
Legislative Review Note
as of 2-4-02 2:06 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.