Link to Zipped WordPerfect Minutes 8K bytes

FRIDAY, FEBRUARY 11, 2005 - 9:00 A.M.
Room W015, West Office Building, State Capitol Complex

Members Present:        Sen. Carlene Walker, Committee Chair
            Sen. Dan Eastman
            Sen. Fred Fife
            Sen. Peter Knudson
            Sen. Mark Madsen
Members Excused:    Sen. Beverly Evans
            Sen. Ed Mayne
Staff Present:        Art Hunsaker, Policy Analyst
            Bonnie Brinton, Committee Secretary

Public Speakers Present:    Rep. Brad L. Dee
            Stan Lockhart, Chair, Utah Technology Industry Council
            Tom Bingham, President, Utah Manufacturers Association
            Lynn Pace, Utah League of Cities and Towns
            Brent Gardner, Utah Association of Counties

A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Walker called the meeting to order at 9:10 a.m.

1.     Approval of Minutes

Sen. Fife moved to approve the minutes of February 9, 2005.

    The motion passed unanimously with Sen. Eastman absent for the vote.

2.    H.B. 11    Economic Development Incentives (Rep. B. Dee)

Rep. Dee presented the bill, proposed amendments to the bill and responded to questions from Committee members.

     MOTION: Sen. Knudson moved to accept the following amendments to HB11:    

1.    Page 4, Lines 109 through 113 :    

{   (4) "Indirect revenues" means the imputed use of a generally accepted

indirect   }

{   economic multiplier as defined by a fiscal impact model approved by the Governor's Office of   }

{   Planning and Budget to quantify by estimate the indirect tax revenues that are in addition to   }

     direct tax revenues.   }

{   (5)   }        (4)       "Local incentives" means financial and other assistance provided by local taxing

2.    Page 4, Line 118 :    

{   (6)   }        (5)       "New incremental jobs" means jobs that are:

3.    Page 5, Line 122 :    

{   (7)   }        (6)       "New local revenues" mean incremental new local tax revenues that are generated

4.    Page 5, Lines 125 through 128 :    

             125      taxes and fees, derived from the projects,
{   together with indirect local government revenues   }

{   generated by the projects   } but not to include any portion of sales taxes earmarked for state

             127      government or other taxing jurisdictions eligible for sales tax revenues.
{   (8)   }        (7)       "New state revenues" means incremental new state tax revenues that are

5.    Page 5, Lines 130 through 131 :    

             130      portion of sales taxes, and company and employee income taxes derived from the projects,
{   together with indirect state revenues generated by the projects,   } but not to include any portion of

6.    Page 5, Line 134 :    

{   (9)   }        (8)       "Partial rebates" means returning a portion of the new local revenues and new

7.    Page 5, Lines 146 through 150 :    

             146          (2)
  (a)       The department, with the approval of the board, may enter into agreements

             149      the same restrictions and limitations as provided in Section 9-2-2004 .

    (b) The limitations and restrictions applied to partial rebates of new state revenues in Section 9-2-2004 also apply to partial rebates of new local revenues under this part.  

             150          Section 6. Section 9-2-2205 is enacted to read:

    Those speaking in favor of the bill were: Stan Lockhart, Chair, Utah Technology Industry Council; Tom Bingham, President, Utah Manufacturers Association; Lynn Pace, Deputy City Attorney, League of Cities and Towns; and Brent Gardner, Utah Association of Counties.

     MOTION: Sen. Eastman moved to pass HB11, as amended, out of committee with a favorable recommendation.

    The motion passed unanimously.

     MOTION: Sen. Fife moved to adjourn the meeting.

    Chair Walker adjourned the meeting at 9:33 a.m.

    Minutes were reported by Bonnie Brinton, Secretary.

Sen. Carlene Walker, Committee Chair