S.B. 57

This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 25, 2004 at 3:23 PM by rday. --> 1

CORPORATE ACCOUNTABILITY
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Ed P. Mayne
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Commerce and Trade Code to require a public report of certain
9 persons.
10 Highlighted Provisions:
11 This bill:
12 . requires a person that receives certain tax incentives or other financial incentives to
13 prepare an annual public report containing:
14 . the amount of financial benefit the person receives; and
15 . certain employment practices of the person.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 ENACTS:
22 13-39-101, Utah Code Annotated 1953
23 13-39-102, Utah Code Annotated 1953
24 13-39-103, Utah Code Annotated 1953
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 13-39-101 is enacted to read:

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Senate Committee Amendments 2-25-2004 rd/tcl 28

CHAPTER 39. BENEFICIARY REPORTING ACT
29 13-39-101. Title.
30 This chapter is known as the "Beneficiary Reporting Act."
31 Section 2. Section 13-39-102 is enacted to read:
32 13-39-102. Definitions.
33 As used in this chapter:
34 (1) "Beneficiary" means a person who, during the preceding calendar year:
35 (a) received a credit, exemption, tax reduction, tax incentive, loan, grant, payment,
36 investment, rebate, or other direct financial assistance under:
37 (i) Subsection 59-5-102 (2), (3), or (4);
38 (ii) Section 59-10-108.7 ;
39 (iii) Section 59-10-109 ;
40 (iv) Section 59-10-129 ;
41 (v) Section 59-10-131 ;
42 (vi) Section 59-10-132 ;
43 (vii) Section 59-10-134 ;
44 (viii) Section 59-10-134.1 ;
45 (ix) Title 9, Chapter 2, Part 4, Enterprise Zone Act;
46 (x) Title 9, Chapter 2, Part 12, Industrial Assistance Fund;
47 (xi) Title 9, Chapter 2, Part 15, Community Economic Development Project Fund;
48 (xii) Title 9, Chapter 2, Part 17, Tourism Marketing Performance Fund;
49 (xiii) Title 9, Chapter 2, Part 18, Targeted Business Income Tax Credits Within an
50 Enterprise Zone;
51 (xiv) Title 9, Chapter 2, Part 19, Utah Venture Capital Enhancement Act; or
52 (xv) Title 9, Chapter 2, Part 20, Aerospace and Aviation Development Zone;
53 (b) was a vendor of sales or uses exempted from the sales and use tax by Subsection
54 59-12-104 S [ (1), ] s (3), (4), (5), (6), (7), S [ (8), ] s (9), (10), (11), S [ (12), ] s (15), (16), (17),
54a S [ (19), (20), (21), ] s
55 (28), (30), (31), (32), (33), (34), (35), (36), (38), (39), (40), (41), (42), (43), (47), (48), (49),
56 (51), (53), (54), (55), (56), (59), or (60); or
57 (c) was a purchaser of sales or uses exempted from the sales and use tax by Subsection
58 59-12-104 S [ (1), ] s (4), (5), (6), (11), (15), S [ (19), (20), ] s (30), (49), (51), or (59).

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- 3 - 59 (2) "Department" means the Department of Community and Economic Development
60 created in Section 9-1-201 .
61 (3) (a) "Employee" means a person employed by a beneficiary.
62 (b) "Employee" does not include an independent contractor who is paid by a
63 beneficiary.
64 Section 3. Section 13-39-103 is enacted to read:
65 13-39-103. Public report required of a beneficiary.
66 (1) A beneficiary shall prepare a public report containing:
67 (a) the amount of financial benefit the beneficiary received during the preceding
68 calendar year from each of the items listed in Subsection 13-39-102 (1);
69 (b) the number of employees of the beneficiary;
70 (c) the average salary of the employees of the beneficiary;
71 (d) the employment benefits provided to the employees of the beneficiary; and
72 (e) the expenditures of the beneficiary on the employee benefits described in
73 Subsection (1)(d).
74 (2) Prior to June 1 of each calendar year, a beneficiary shall:
75 (a) complete the report described in Subsection (1) on a form approved by the
76 department pursuant to Subsection (3); and
77 (b) provide the report described in Subsection (1) to the department in a manner
78 approved by the department pursuant to Subsection (3).
79 (3) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
80 the department shall by rule approve:
81 (i) a form on which a beneficiary shall complete the report described in Subsection (1);
82 and
83 (ii) the manner in which a beneficiary shall provide the report described in Subsection
84 (1) to the department.
85 (b) The department may provide means by which a beneficiary may electronically
86 complete and provide to the department the report described in Subsection (1).
87 (4) A report prepared and provided to the department pursuant to this section is a
88 public record under Title 63, Chapter 2, Government Records Access and Management Act.
89 (5) In an action to enforce this section, the prevailing party shall be awarded costs and

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reasonable attorney fees.
90a S (6) THIS SECTION DOES NOT APPLY TO:
90b (a) AN ORGANIZATION DESCRIBED IN SECTION 501, INTERNAL REVENUE CODE; OR
90c (b) AN ENTITY, MORE THAN 50% OF THE VALUE OF THE OUTSTANDING OWNERSHIP
90d INTERESTS OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY ONE OR MORE ORGANIZATIONS
90e DESCRIBED IN SECTION 501, INTERNAL REVENUE CODE. s

Legislative Review Note
as of 1-12-04 2:32 PM

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

Office of Legislative Research and General Counsel