H.B. 300

1

COUNTY OPTION FUNDING FOR
2 BOTANICAL, CULTURAL, RECREATIONAL,
3 AND ZOOLOGICAL ORGANIZATIONS OR
4 FACILITIES AMENDMENTS
5 2006 GENERAL SESSION
6 STATE OF UTAH
7 Chief Sponsor: David L. Hogue
8 Senate Sponsor: ____________
9
10 LONG TITLE
11 General Description:
12 This bill amends the County Option Funding for Botanical, Cultural, Recreational, and
13 Zoological Organizations or Facilities part relating to cultural facilities.
14 Highlighted Provisions:
15 This bill:
16 . repeals "cultural facility" from the definition of "recreational facility";
17 . allows revenues generated by the county option tax for botanical, cultural,
18 recreational, and zoological organizations or facilities to be expended for the
19 ongoing operating expenses of cultural facilities;
20 . addresses the distribution and expenditure of revenues generated by the tax;
21 . provides that the advisory board created to advise a county legislative body on the
22 disbursement of tax revenues to botanical organizations and cultural organizations
23 also advises the county legislative body on the disbursement of tax revenues to
24 cultural facilities;
25 . addresses the reporting of annual operating expenses by cultural facilities;
26 . addresses a cultural facility offering a waived or reduced admission fee; and
27 . makes technical changes.

28 Monies Appropriated in this Bill:
29 None
30 Other Special Clauses:
31 This bill takes effect on July 1, 2006.
32 Utah Code Sections Affected:
33 AMENDS:
34 59-12-702, as last amended by Chapter 186, Laws of Utah 2004
35 59-12-703 (See 59-1-1201 re: Eff), as last amended by Chapter 105, Laws of Utah
36 2005
37 59-12-704, as last amended by Chapter 296, Laws of Utah 2003
38 59-12-705, as enacted by Chapter 284, Laws of Utah 1996
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 59-12-702 is amended to read:
42 59-12-702. Definitions.
43 As used in this part:
44 (1) "Administrative unit" means a division of a private nonprofit organization or
45 institution that:
46 (a) would, if it were a separate entity, be a botanical organization or cultural
47 organization; and
48 (b) consistently maintains books and records separate from those of its parent
49 organization.
50 (2) "Botanical organization" means:
51 (a) a private nonprofit organization or institution having as its primary purpose the
52 advancement and preservation of plant science through horticultural display, botanical
53 research, and community education; or
54 (b) an administrative unit.
55 (3) "Cultural facility" is as defined in Section 59-12-602 .
56 (4) (a) "Cultural organization":
57 (i) means:
58 (A) a private nonprofit organization or institution having as its primary purpose the

59 advancement and preservation of:
60 (I) natural history;
61 (II) art;
62 (III) music;
63 (IV) theater; or
64 (V) dance; and
65 (B) an administrative unit; and
66 (ii) includes, for purposes of Subsections 59-12-704 (1)(d) and (6) only:
67 (A) a private nonprofit organization or institution having as its primary purpose the
68 advancement and preservation of history;
69 (B) a municipal or county cultural council having as its primary purpose the
70 advancement and preservation of:
71 (I) history;
72 (II) natural history;
73 (III) art;
74 (IV) music;
75 (V) theater; or
76 (VI) dance.
77 (b) "Cultural organization" does not include:
78 (i) any agency of the state;
79 (ii) except as provided in Subsection (4)(a)(ii)(B), any political subdivision of the state;
80 (iii) any educational institution whose annual revenues are directly derived more than
81 50% from state funds; or
82 (iv) in a county of the first or second class, any radio or television broadcasting
83 network or station, cable communications system, newspaper, or magazine.
84 (5) "Institution" means any of the institutions listed in Subsections 53B-1-102 (1)(b)
85 through (l).
86 (6) "Recreational facility" means any publicly owned or operated park, campground,
87 marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system,
88 [cultural facility,] or other facility used for recreational purposes.
89 (7) "Rural radio station" means a nonprofit radio station based in a county of the third,

90 fourth, fifth, or sixth class.
91 (8) In a county of the first class, "zoological facilities" means any public, public-private
92 partnership, or private nonprofit buildings, exhibits, utilities and infrastructure, walkways,
93 pathways, roadways, offices, administration facilities, public service facilities, educational
94 facilities, enclosures, public viewing areas, animal barriers, animal housing, animal care
95 facilities, and veterinary and hospital facilities related to the advancement, exhibition, or
96 preservation of mammals, birds, reptiles, or amphibians.
97 (9) (a) (i) Except as provided in Subsection (9)(a)(ii), "zoological organization" means
98 a public, public-private partnership, or private nonprofit organization having as its primary
99 purpose the advancement and preservation of zoology.
100 (ii) In a county of the first class, "zoological organization" means a nonprofit
101 organization having as its primary purpose the advancement and exhibition of mammals, birds,
102 reptiles, or amphibians to an audience of 75,000 or more persons annually.
103 (b) "Zoological organization" does not include any agency of the state, educational
104 institution, radio or television broadcasting network or station, cable communications system,
105 newspaper, or magazine.
106 Section 2. Section 59-12-703 (See 59-1-1201 re: Eff) is amended to read:
107 59-12-703 (See 59-1-1201 re: Eff). Opinion question election -- Imposition of tax
108 -- Uses of tax monies -- Enactment or repeal of tax -- Effective date -- Notice
109 requirements.
110 (1) (a) (i) Except as provided in Subsections (1)(a)(ii) and 59-12-207.1 (7)(c), a county
111 legislative body may submit an opinion question to the residents of that county, by majority
112 vote of all members of the legislative body, so that each resident of the county, except residents
113 in municipalities that have already imposed a sales and use tax under Part 14, City or Town
114 Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
115 Facilities, has an opportunity to express the resident's opinion on the imposition of a local sales
116 and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located within the
117 county, to fund recreational and zoological facilities, botanical organizations, cultural facilities,
118 cultural organizations, and zoological organizations, and rural radio stations, in that county.
119 (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
120 tax under this section on:

121 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
122 are exempt from taxation under Section 59-12-104 ; and
123 (B) sales and uses within municipalities that have already imposed a sales and use tax
124 under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
125 Zoological Organizations or Facilities.
126 (b) For purposes of this Subsection (1), the location of a transaction shall be
127 determined in accordance with Sections 59-12-207.1 through 59-12-207.4 .
128 (c) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
129 Government Bonding Act.
130 (2) (a) If the county legislative body determines that a majority of the county's
131 registered voters voting on the imposition of the tax have voted in favor of the imposition of
132 the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
133 majority vote of all members of the legislative body on the transactions:
134 (i) described in Subsection (1); and
135 (ii) within the county, including the cities and towns located in the county, except those
136 cities and towns that have already imposed a sales and use tax under Part 14, City or Town
137 Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
138 Facilities.
139 (b) A county legislative body may revise county ordinances to reflect statutory changes
140 to the distribution formula or eligible recipients of revenues generated from a tax imposed
141 under Subsection (2)(a):
142 (i) after the county legislative body submits an opinion question to residents of the
143 county in accordance with Subsection (1) giving them the opportunity to express their opinion
144 on the proposed revisions to county ordinances; and
145 (ii) if the county legislative body determines that a majority of those voting on the
146 opinion question have voted in favor of the revisions.
147 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
148 funding:
149 (a) recreational and zoological facilities located within the county or a city or town
150 located in the county, except a city or town that has already imposed a sales and use tax under
151 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological

152 Organizations or Facilities; and
153 (b) ongoing operating expenses of:
154 (i) recreational facilities described in Subsection (3)(a);
155 (ii) botanical, cultural, and zoological organizations within the county; [and]
156 (iii) cultural facilities within the county; and
157 [(iii)] (iv) rural radio stations within the county.
158 (4) (a) A tax authorized under this part shall be:
159 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
160 accordance with:
161 (A) the same procedures used to administer, collect, and enforce the tax under:
162 (I) Part 1, Tax Collection; or
163 (II) Part 2, Local Sales and Use Tax Act; and
164 (B) Chapter 1, General Taxation Policies; and
165 (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
166 period in accordance with this section.
167 (b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
168 Subsections 59-12-205 (2) through (9).
169 (5) (a) For purposes of this Subsection (5):
170 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
171 Annexation to County.
172 (ii) "Annexing area" means an area that is annexed into a county.
173 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
174 county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
175 (A) on the first day of a calendar quarter; and
176 (B) after a 90-day period beginning on the date the commission receives notice meeting
177 the requirements of Subsection (5)(b)(ii) from the county.
178 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
179 (A) that the county will enact or repeal a tax under this part;
180 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
181 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
182 (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the

183 tax.
184 (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
185 (5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
186 (A) that begins after the effective date of the enactment of the tax; and
187 (B) if the billing period for the transaction begins before the effective date of the
188 enactment of the tax under this section.
189 (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
190 (5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
191 (A) that began before the effective date of the repeal of the tax; and
192 (B) if the billing period for the transaction begins before the effective date of the repeal
193 of the tax imposed under this section.
194 (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
195 (A) Subsection 59-12-103 (1)(b);
196 (B) Subsection 59-12-103 (1)(c);
197 (C) Subsection 59-12-103 (1)(d);
198 (D) Subsection 59-12-103 (1)(e);
199 (E) Subsection 59-12-103 (1)(f);
200 (F) Subsection 59-12-103 (1)(g);
201 (G) Subsection 59-12-103 (1)(h);
202 (H) Subsection 59-12-103 (1)(i);
203 (I) Subsection 59-12-103 (1)(j); or
204 (J) Subsection 59-12-103 (1)(k).
205 (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
206 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
207 enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
208 (A) on the first day of a calendar quarter; and
209 (B) beginning 60 days after the effective date of the enactment or repeal under
210 Subsection (5)(b)(i).
211 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
212 the commission may by rule define the term "catalogue sale."
213 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs

214 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
215 part for an annexing area, the enactment or repeal shall take effect:
216 (A) on the first day of a calendar quarter; and
217 (B) after a 90-day period beginning on the date the commission receives notice meeting
218 the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
219 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
220 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
221 repeal of a tax under this part for the annexing area;
222 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
223 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
224 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
225 (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
226 (5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
227 (A) that begins after the effective date of the enactment of the tax; and
228 (B) if the billing period for the transaction begins before the effective date of the
229 enactment of the tax under this section.
230 (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
231 (5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
232 (A) that began before the effective date of the repeal of the tax; and
233 (B) if the billing period for the transaction begins before the effective date of the repeal
234 of the tax imposed under this section.
235 (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
236 (A) Subsection 59-12-103 (1)(b);
237 (B) Subsection 59-12-103 (1)(c);
238 (C) Subsection 59-12-103 (1)(d);
239 (D) Subsection 59-12-103 (1)(e);
240 (E) Subsection 59-12-103 (1)(f);
241 (F) Subsection 59-12-103 (1)(g);
242 (G) Subsection 59-12-103 (1)(h);
243 (H) Subsection 59-12-103 (1)(i);
244 (I) Subsection 59-12-103 (1)(j); or

245 (J) Subsection 59-12-103 (1)(k).
246 (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
247 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
248 enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
249 (A) on the first day of a calendar quarter; and
250 (B) beginning 60 days after the effective date of the enactment or repeal under
251 Subsection (5)(e)(i).
252 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
253 the commission may by rule define the term "catalogue sale."
254 Section 3. Section 59-12-704 is amended to read:
255 59-12-704. Distribution of revenues -- Advisory board creation -- Determining
256 operating expenses.
257 (1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
258 this section, any revenues collected by a county of the first class under this part shall be
259 distributed annually by the county legislative body to support recreational, cultural, and
260 zoological facilities and botanical, cultural, and zoological organizations within that first class
261 county as follows:
262 (a) 30% of the revenue collected by the county under this section shall be distributed
263 by the county legislative body to support recreational facilities located within the county;
264 (b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
265 12-1/8% of the revenue collected by the county under this section shall be distributed by the
266 county legislative body to support no more than three zoological facilities and organizations
267 located within the county, with 94.5% of that revenue being distributed to zoological facilities
268 and organizations with average annual operating expenses of $2,000,000 or more and 5.5% of
269 that revenue being distributed to zoological facilities and organizations with average annual
270 operating expenses of less than $2,000,000;
271 (ii) except as provided in Subsection (1)(b)(iii), the county legislative body shall
272 distribute the monies described in Subsection (1)(b)(i) among the zoological facilities and
273 organizations in proportion to their average annual operating expenses as determined under
274 Subsection (3); and
275 (iii) if a zoological facility or organization is created or relocated within the county

276 after June 1, 2003, the county legislative body shall distribute the monies described in
277 Subsection (1)(b)(i) as it determines appropriate;
278 (c) (i) 48-7/8% of the revenue collected by the county under this section shall be
279 distributed to no more than 23 botanical [and] organizations, cultural facilities, and cultural
280 organizations with average annual operating expenses of more than $250,000 as determined
281 under Subsection (3);
282 (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
283 monies described in Subsection (1)(c)(i) among the organizations and facilities in proportion to
284 their average annual operating expenses as determined under Subsection (3); and
285 (iii) the amount distributed to any organization or facility described in Subsection
286 (1)(c)(i) may not exceed 35% of the organization's or facility's operating budget; and
287 (d) (i) 9% of the revenue collected by the county under this section shall be distributed
288 to botanical organizations, cultural facilities, and cultural organizations that do not receive
289 revenue under Subsection (1)(c)(i); and
290 (ii) the county legislative body shall determine how the monies shall be distributed
291 among the organizations or facilities described in Subsection (1)(d)(i).
292 (2) (a) The county legislative body of each county shall create an advisory board to
293 advise the county legislative body on disbursement of funds to botanical organizations, cultural
294 facilities, and cultural organizations under Subsection (1)(c)(i).
295 (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
296 appointed by the county legislative body.
297 (ii) In a county of the first class, two of the seven members of the advisory board under
298 Subsection (2)(a) shall be appointed from the Utah Arts Council.
299 (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies
300 collected by the county under this part, a botanical organization, cultural facility, cultural
301 organization, and zoological organization located within a county of the first class shall, every
302 three years:
303 (i) calculate their average annual operating expenses based upon audited operating
304 expenses for three preceding fiscal years; and
305 (ii) submit to the appropriate county legislative body:
306 (A) a verified audit of annual operating expenses for each of those three preceding

307 fiscal years; and
308 (B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
309 (b) Notwithstanding Subsection (3)(a), the county legislative body may waive the
310 operating expenses reporting requirements under Subsection (3)(a) for organizations or
311 facilities described in Subsection (1)(d)(i).
312 (4) When calculating average annual operating expenses as described in Subsection
313 (3), each botanical organization, cultural facility, cultural organization, and zoological
314 organization shall use the same three-year fiscal period as determined by the county legislative
315 body.
316 (5) (a) By July 1 of each year, the county legislative body of a first class county may
317 index the threshold amount in Subsections (1)(c) and (d).
318 (b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
319 (6) (a) Beginning on July 1, 2001, in a county except for a county of the first class, the
320 county legislative body shall by ordinance provide for the distribution of the entire amount of
321 the revenues generated by the tax imposed by this section as provided in this Subsection (6).
322 (b) Pursuant to an interlocal agreement established in accordance with Title 11,
323 Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
324 to a city, town, or political subdivision within the county revenues generated by a tax under this
325 part.
326 (c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
327 more organizations or facilities defined in Section 59-12-702 regardless of whether the
328 revenues are distributed:
329 (i) directly by the county described in Subsection (6)(a) to be used for an organization
330 or facility defined in Section 59-12-702 ; or
331 (ii) in accordance with an interlocal agreement described in Subsection (6)(b).
332 (7) A county legislative body may retain up to 1.5% of the proceeds from a tax under
333 this part for the cost of administering the provisions of this part.
334 (8) The commission may retain an amount not to exceed [1-1/2%] 1.5% of the tax
335 collected under this part for the cost of administering this part.
336 Section 4. Section 59-12-705 is amended to read:
337 59-12-705. Free or reduced admission day available to all state residents.

338 Each botanical organization, cultural facility, cultural organization, or zoological
339 organization that receives monies from a tax imposed under the authority of this part and that
340 periodically offers a waived or discounted admission fee shall make such waived or discounted
341 admission available to all residents of the state.
342 Section 5. Effective date.
343 This bill takes effect on July 1, 2006.




Legislative Review Note
as of 1-18-06 3:01 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel