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S.B. 30

             1     

FUNDING FORMULA FOR ALCOHOL RELATED

             2     
ACTIVITIES OF LOCAL GOVERNMENTS

             3     
2002 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Michael G. Waddoups

             6      This act modifies the Alcoholic Beverage Control Code to modify the requirement that the
             7      Legislature appropriate monies to be used by counties and municipalities for specified
             8      purposes related to alcohol. The act also modifies how the monies are distributed. The act
             9      provides a mechanism to suspend payments if it is found that a municipality or county is not
             10      using the monies for the specified purposes.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      AMENDS:
             13          32A-1-115, as last amended by Chapter 318, Laws of Utah 2000
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 32A-1-115 is amended to read:
             16           32A-1-115. Appropriation from the General Fund to municipalities and counties for
             17      law enforcement and treatment -- Distribution to municipalities and counties.
             18          (1) As used in this section:
             19          (a) "Alcohol-related offense" means:
             20          (i) a violation of:
             21          (A) Section 41-6-44 ; or
             22          (B) an ordinance that complies with the requirements of:
             23          (I) Subsection 41-6-43 (1); or
             24          (II) Section 76-5-207 ; or
             25          (ii) an offense involving the:
             26          (A) illegal sale of alcohol;
             27          (B) illegal distribution of alcohol;


             28          (C) illegal transportation of alcohol;
             29          (D) illegal possession of alcohol; or
             30          (E) illegal consumption of alcohol.
             31          (b) "Annual conviction time period" means the time period that:
             32          (i) begins on July 1 and ends on June 30; and
             33          (ii) immediately precedes the fiscal year for which an appropriation under this section is
             34      made.
             35          (c) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
             36      Coordinating Council created in Section 63-25a-201 .
             37          (d) "Municipality" means:
             38          (i) a city; or
             39          (ii) a town.
             40          [(1)] (2) (a) (i) [The] Beginning with fiscal year 2007-08 and except as provided in
             41      Subsection (2)(a)(iii), the Legislature shall annually appropriate from the General Fund to
             42      municipalities and counties an amount not [to exceed $4,350,000 from the revenues in the General
             43      Fund generated by] less than the greater of:
             44          [(i) liquor control profits; and ]
             45          [(ii)] (A) 40% of the proceeds of the beer excise tax deposited in the General Fund:
             46          (I) in accordance with Section 59-15-109 [.]; and
             47          (II) for the fiscal year two years preceding the fiscal year of the appropriation; or
             48          (B) $4,350,000.
             49          (ii) For fiscal years 2003-04 through 2006-07 and except as provided in Subsection
             50      (2)(a)(iii), the Legislature shall appropriate an amount not to exceed the following amounts from
             51      the proceeds of the beer excise tax deposited in the General Fund in accordance with Section
             52      59-15-109 to municipalities and counties:
             53          (A) for fiscal year 2003-04, $3,044,000;
             54          (B) for fiscal year 2004-05, $3,479,000;
             55          (C) for fiscal year 2005-06, $3,914,000; and
             56          (D) for fiscal year 2006-07, $4,350,000.
             57          (iii) Notwithstanding Subsection (2)(a)(i) or (ii), if the proceeds of the beer excise tax
             58      deposited in the General Fund in accordance with Section 59-15-109 are less than the amount


             59      required to be appropriated under this Subsection (2)(a), the Legislature shall appropriate to
             60      municipalities and counties an amount equal to the beer excise tax deposited in the General Fund
             61      during the fiscal year two years preceding the fiscal year of the appropriation.
             62          (iv) (A) The State Tax Commission shall notify the entities described in Subsection
             63      (2)(a)(iv)(B) not later than the September 1 preceding the fiscal year of the appropriation of:
             64          (I) the amount of the proceeds of the beer excise tax deposited in the General Fund in
             65      accordance with Section 59-15-109 for the fiscal year two years preceding the fiscal year of the
             66      appropriation; and
             67          (II) an amount equal to 40% of the amount listed in Subsection (2)(a)(iv)(A)(I).
             68          (B) The notification required by Subsection (2)(a)(iv)(A) shall be sent to:
             69          (I) the Governor's Office of Planning and Budget; and
             70          (II) Legislative Fiscal Analyst.
             71          (b) (i) The [appropriation] appropriations under Subsection [(1)] (2)(a) shall be used
             72      exclusively for programs or projects related to prevention, treatment, detection, prosecution, and
             73      control of violations of this title and other offenses in which alcohol is a contributing factor except
             74      as provided in Subsection [(1)] (2)(b)(ii).
             75          (ii) The portion distributed under this section to counties may also be used for the
             76      confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
             77      contributing factor.
             78          (iii) Any municipality or county entitled to receive funds shall use the funds exclusively
             79      as required by this Subsection [(1)] (2)(b).
             80          (c) The [appropriation] appropriations provided for under Subsection [(1)] (2)(a) [is] are
             81      intended to supplement the budget of the appropriate agencies of each municipality and county
             82      within the state to enable the municipalities and counties to more effectively fund the programs
             83      and projects described under Subsection [(1)] (2)(b). The [appropriation is] appropriations are not
             84      intended to replace funds that would otherwise be allocated for those programs and projects.
             85          [(2)] (3) (a) The [appropriation] appropriations provided for in Subsection [(1)] (2)(a) shall
             86      be distributed to municipalities and counties on the following basis:
             87          [(a)] (i) 25% to municipalities and counties based upon the percentage of the state
             88      population residing in each municipality and county;
             89          [(b)] (ii) 30% to municipalities and counties based upon each [municipality] municipality's


             90      and county's percentage of the statewide convictions for all alcohol-related offenses;
             91          [(c)] (iii) 20% to municipalities and counties based upon the percentage of all state stores,
             92      package agencies, liquor licensees, and beer licensees in the state [which] that are located in each
             93      municipality and county; and
             94          [(d)] (iv) 25% to the counties for confinement and treatment purposes authorized [in] by
             95      this section based upon the percentage of the state population located in each county.
             96          (b) (i) Except as provided in Subsection (3)(b)(iii), a municipality that does not have a law
             97      enforcement agency may not receive monies under this section.
             98          (ii) The State Tax Commission:
             99          (A) may not distribute the monies the municipality would receive but for the municipality
             100      not having a law enforcement agency to that municipality; and
             101          (B) shall distribute the monies that the municipality would have received but for it not
             102      having a law enforcement agency to the county in which the municipality is located for use by the
             103      county in accordance with this section.
             104          (iii) Notwithstanding Subsections (3)(b)(i) and (ii), if the coordinating council finds that
             105      a municipality described in Subsection (3)(b)(i) demonstrates that the municipality can use the
             106      monies that the municipality is otherwise eligible to receive in accordance with this section, the
             107      coordinating council may direct the State Tax Commission to distribute the money to the
             108      municipality.
             109          [(3)] (4) To determine the [amount of the 30% due each municipality and county based
             110      on convictions described in] distributions required by Subsection [(2)(b)] (3)(a)(ii), the State Tax
             111      Commission [semiannually] shall annually:
             112          (a) [double] for an annual conviction time period:
             113          (i) multiply by two the total number of convictions in the state obtained [between July 1,
             114      1982, and June 30, 1983, and] during the [same] annual conviction time period [in succeeding
             115      years] for violation of:
             116          (A) Section 41-6-44 [,]; or
             117          (B) an ordinance that complies with the requirements of Subsection 41-6-43 (1) or Section
             118      76-5-207 [, and to that number,]; and
             119          (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
             120      obtained during the [same] annual conviction time period for all [other] alcohol-related offenses


             121      other than the alcohol-related offenses described in Subsection (4)(a)(i);
             122          (b) divide [the figure] an amount equal to [the] 30% [due each municipality and county]
             123      of the appropriation for that fiscal year by the sum obtained in Subsection [(3)] (4)(a)[, to obtain
             124      the quotient for alcohol-related offenses statewide]; and
             125          (c) multiply the [quotient obtained in] amount calculated under Subsection [(3)(b)] (4)(b),
             126      by the number of convictions obtained in each municipality and county [between July 1, 1982 and
             127      June 30, 1983, and for the same period in succeeding years,] during the annual conviction time
             128      period for [violation of Section 41-6-44 , or an ordinance that complies with the requirements of
             129      Subsection 41-6-43 (1) or Section 76-5-207 , and for all other] alcohol-related offenses [to
             130      determine the total revenue due each entity, based on convictions]. [The number of convictions
             131      for purposes of this Subsection (3) shall be determined in the manner prescribed in Subsection
             132      (3)(a).]
             133          [(4)] (5) For purposes of this section[,]:
             134          (a) the number of state stores, package agencies, and licensees located within the limits
             135      of each municipality and county:
             136          (i) is the number determined by the department to be so located[, and];
             137          (ii) includes all:
             138          (A) private clubs[,];
             139          (B) restaurants[,];
             140          (C) airport lounges[,];
             141          (D) package agencies[,]; and
             142          (E) state stores[, but]; and
             143          (iii) does not include on-premise beer retailer licensees[. For purposes of this section,];
             144          (b) the number of state stores, package agencies, and licensees in a county consists only
             145      of that number located within unincorporated areas of the county[. (5) (a) Population];
             146          (c) population figures[, for the purposes of this section,] shall be determined according to
             147      the most current population estimates prepared by the Utah Population Estimates Committee[.];
             148          [(b) A] (d) a county's population figure for the 25% distribution to municipalities and
             149      counties under Subsection (3)(a)(i) shall be determined only with reference to the population in
             150      the unincorporated areas of the county[, and];
             151          (e) a county's population figure under Subsection (3)(a)(iv) for the 25% distribution to


             152      counties only shall be determined with reference to the total population in the county, including
             153      that of municipalities[.];
             154          [(6) (a) For purposes of this section,]
             155          (f) a conviction occurs in the municipality or county that actually prosecutes the offense
             156      to judgment[. In]; and
             157          (g) in the case of a conviction based upon a guilty plea the conviction is considered to
             158      occur in, the municipality or county that, except for the guilty plea, would have prosecuted the
             159      offense [is entitled to credit for the conviction].
             160          [(b) For purposes of this section, "alcohol-related offense" means a violation of Section
             161      41-6-44 , or an ordinance that complies with the requirements of Subsection 41-6-43 (1) or Section
             162      76-5-207 , or an offense involving the illegal sale, distribution, transportation, possession, or
             163      consumption of alcohol.]
             164          [(7) Except as provided in Subsection (9), payments under this section shall be made
             165      semiannually to each municipality and county.]
             166          [(8) (a) The state court administrator,]
             167          (6) By not later than September 1 each year[,]:
             168          (a) the state court administrator shall certify to the State Tax Commission the number of
             169      convictions obtained for [violation of Section 41-6-44 , an ordinance that complies with the
             170      requirements of Subsection 41-6-43 (1), or Section 76-5-207 , and for other] alcohol-related
             171      offenses in each municipality or county in the state during the annual conviction time period
             172      [specified in Subsection (3)(a), and for the same period each succeeding year.]; and
             173          (b) the coordinating council shall notify the State Tax Commission of any municipality
             174      that does not have a law enforcement agency.
             175          (7) By not later than December 1 of each year the coordinating council shall notify the
             176      State Tax Commission for the fiscal year of appropriation of:
             177          (a) any municipality that may receive a distribution under Subsection (3)(b)(iii);
             178          (b) any county that may receive a distribution allocated to a municipality described in
             179      Subsection (3)(b)(ii);
             180          (c) any municipality or county that may not receive a distribution because the coordinating
             181      council has suspended the payment under Subsection (10)(a)(i); and
             182          (d) any municipality or county that receives a distribution because the suspension of


             183      payment has been cancelled under Subsection (10)(a)(ii).
             184          (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
             185      Commission shall annually distribute to each municipality and county the portion of the
             186      appropriation that the municipality or county is eligible to receive under this section, except for
             187      any municipality or county that the coordinating council notifies the State Tax Commission in
             188      accordance with Subsection (7) may not receive a distribution in that fiscal year.
             189          (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
             190      counties in applying for [revenues] distributions under this section.
             191          (ii) The forms described in this Subsection (8) may require the submission of information
             192      the State Tax Commission considers necessary to enable [it] the State Tax Commission to comply
             193      with this section.
             194          (9) A municipality or county that receives any monies under this section during a fiscal
             195      year shall [report to the Utah Substance Abuse and Anti-Violence Coordinating Council created
             196      in Section 63-25a-201 ] by no later than October 1 following the fiscal year:
             197          (a) report to the coordinating council:
             198          [(a)] (i) the programs or projects of the municipality or county that receive monies under
             199      this section;
             200          [(b)] (ii) if the monies for programs or projects were exclusively used as required by
             201      Subsection [(1)] (2)(b);
             202          [(c)] (iii) indicators of whether the programs or projects that receive monies under this
             203      section are effective;
             204          [(d)] (iv) if any monies received under this section were not expended by the municipality
             205      or county; and
             206          [(e)] (b) [a signature of] provide the coordinating council a statement signed by the chief
             207      executive officer of the county or municipality attesting that the monies received under this section
             208      were used in addition to any monies appropriated or otherwise available for the [local
             209      government's] county's or municipality's law enforcement and were not used to supplant those
             210      monies.
             211          (10) (a) The [Utah Substance Abuse and Anti-Violence] coordinating council may, by a
             212      majority vote:
             213          (i) suspend future payments under Subsection [(7)] (8) to a municipality or county that:


             214          (A) does not file a report that meets the requirements of Subsection (9); [and] or
             215          (B) the coordinating council finds does not use the monies as required by Subsection (2)(b)
             216      on the basis of the report filed by the municipality or county under Subsection (9); and
             217          (ii) cancel [the] a suspension under Subsection (10)(a)(i).
             218          (b) The State Tax Commission shall:
             219          (i) retain monies that a municipality or county does not receive under Subsection (10)(a);
             220      and
             221          (ii) notify the [Utah Substance Abuse and Anti-Violence] coordinating council of the
             222      balance of retained monies under this Subsection (10)(b) after [each semiannual payment] the
             223      annual distribution under Subsection [(7)] (8).
             224          [(c) The Utah Substance Abuse and Anti-Violence]
             225          (11) (a) Subject to the requirements of this Subsection (11), the coordinating council shall
             226      award the balance of retained monies under Subsection (10)(b):
             227          (i) as prioritized by majority vote of the coordinating council; and
             228          (ii) as grants to [any]:
             229          (A) a county [or];
             230          (B) a municipality; or [to]
             231          (C) the Department of Public Safety[, as prioritized by a majority vote].
             232          [(d) The Utah Substance Abuse and Anti-Violence]
             233          (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
             234      council shall notify the State Tax Commission of any [changes under Subsection (10)(a) or] grants
             235      awarded under this Subsection [(10)(c)] (11).
             236          [(e)] (c) The State Tax Commission shall make payments of grants:
             237          (i) upon receiving notice as provided under Subsection [(10)(d).] (11)(b); and
             238          (ii) by not later than June 30 of the fiscal year of the appropriation.
             239          (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
             240      exclusively for programs or projects described in Subsection (2)(b).





Legislative Review Note
    as of 11-21-01 2:18 PM


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

Office of Legislative Research and General Counsel


Committee Note

The Business and Labor Interim Committee recommended this bill.


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