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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex


                     February 7, 2007


MEMBERS PRESENT:     Rep. John Dougall, Chair
                Rep. Craig A. Frank, Vice Chair
                Rep. Roger Barrus
                Rep. Ron Bigelow                
                Rep. Tim M. Cosgrove
                 Rep. Wayne A. Harper                      
                 Rep. Gregory H. Hughes
                Rep. Christine Johnson
                Rep. Bradley G. Last                 
                Rep. Roz McGee
                 Rep. Carol Spackman Moss                           
                 Rep. Merlynn T. Newbold                                           Rep. Aaron Tilton
                Rep. Carl Wimmer
                                 
MEMBERS ABSENT:     Rep. Gordon E. Snow         
                
STAFF:            Bryant Howe, Assistant Director
                Rosemary Young, Secretary
                    
Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Rep. Dougall called the meeting to order at 2:01 p.m. Commissioner Pam Hendrickson of the Utah State Tax Commission at the chair's request explained that the "TC 23" is a monthly report from the tax commission of all the revenues collected by category, YTD collections and a comparison to last year. The report can be found on the web site tax.utah.gov.

MOTION:    Rep. Johnson moved to approve the corrected minutes of the February 5, 2007 meeting. The motion passed unanimously.

H.B. 142    Fee in Lieu of Property Tax Amendments (Rep. R. Wheeler)

MOTION:    
Rep. Harper moved to delete in title and body H.B. 142 and replace it with 1st Substitute H.B. 142. The motion passed unanimously with Rep. Bigelow, Rep. Hughes, Rep. Last, Rep. Moss, Rep. Newbold, and Rep. Wimmer absent for the vote.

Rep. Wheeler introduced the bill and explained it to the committee. Roger Tew, Utah League of Cities and Towns, spoke to the bill.



MOTION:    
Rep. McGee moved to transmit 1st Sub. H.B. 142 with a favorable recommendation.
The motion passed unanimously with Rep. Bigelow, Rep. Hughes, Rep. Last, Rep. Moss, Rep. Newbold, and Rep. Wimmer absent for the vote.

MOTION:    Rep. Cosgrove moved that 1st Sub. H.B. 142 be place on the consent calendar. The motion passed unanimously with Rep. Bigelow, Rep. Hughes, Rep. Last, Rep. Moss, Rep. Newbold, and Rep. Wimmer absent for the vote.

3rd Sub. H.B. 122    Clean Air and Efficient Vehicle Tax Credit (Rep. R. McGee)

MOTION:    
Rep. McGee moved to delete in title and body 3rd Substitute H.B. 122 and replace it with 4th Substitute H.B. 122.

SUBSTITUTE
MOTION:    
Rep. Harper moved to delete in title and body 3rd Substitute H.B. 122 and replace it with 4th Substitute H.B. 122 with the following amendments:

    1.    Page 1, Line 2:        Delete "CREDIT" and insert "INCENTIVES"
    2.    Page 7, Line 199:        After "January 1," bracket "2001" and insert "2008"
    3.     Page 11, Line 306:        After "January 1," bracket "2001" and insert "2008"

The motion passed unanimously with Rep. Bigelow, Rep. Last, and Rep. Newbold, absent for the vote.

Rep. McGee explained the fourth substitute to the committee.

MOTION:    Rep. Frank moved to transmit 4th Sub. H.B. 122 as amended with a favorable recommendation. The motion passed unanimously with Rep. Bigelow, Rep. Last, and Rep. Newbold absent for the vote.

H.B. 393    Truth in Bonding (Rep. G. Hughes)

Rep. Hughes introduced the bill and explained it to the committee. LeGrand Bitter, Director, Utah Association of Special Districts, spoke to the bill.

MOTION:    Rep. Wimmer moved to transmit H.B. 393 with a favorable recommendation. The motion passed unanimously with Rep. Bigelow absent for the vote.






H.B. 308    Tax Me More Fund (Rep. G. Hughes)

MOTION:    
Rep. Hughes moved to amend H.B. 308 as follows:

1.    Page 1, Line 1 :    

             1     
TAX ME MORE FUND
  - VOLUNTARY CONTRIBUTION TO PUBLIC
EDUCATION  


2.    Page 1, Lines 23 through 24 :    

             23          .    requires the State Tax Commission to determine annually the contributions to the
             24      Tax Me More Fund and deposit those contributions into the Tax Me More Fund;
  . requires contributions credited to the Tax Me More Fund to be deposited into the Uniform School Fund;      


3.    Page 2, Line 42 :    

             42          59-10-550.3. Tax Me More Fund -- Interest -- Contribution to fund
  -- Deposit of contributions into the Uniform School Fund       .


4.    Page 3, Lines 71 through 75 :    

             71          (7) The commission shall:
             72          (a) determine annually the total amount of contributions designated in accordance with
             73      this section; and
             74          (b) credit the amount described in Subsection (7)(a) to the Tax Me More Fund created
             75      by this section.
  (8) Amounts credited to the Tax Me More Fund shall be deposited into the Uniform School Fund.      


The motion passed unanimously with Rep. Bigelow absent for the vote.

Rep. Hughes introduced the amended bill and explained it to the committee. Sarah Wilhelm, Voices for Utah Children, spoke to the bill. During the discussion Rep. Dougall relinquished the chair to Rep. Frank.

MOTION:    Rep. Harper moved to transmit H.B. 308 as amended with a favorable recommendation.


SUBSTITUTE
MOTION:    
Rep. Cosgrove moved to hold the bill in committee. The motion failed with Rep. Barrus, Rep. Bigelow, Rep. Cosgrove, Rep. Johnson, Rep. Last, Rep. McGee, and Rep. Moss voting in favor.

SUBSTITUTE
MOTION:    
Rep. McGee moved to proceed to the next item on the agenda. The motion failed with Rep. Bigelow, Rep. Cosgrove, Rep. Johnson, Rep. Last, Rep. McGee, and Rep. Moss voting in favor.

SUBSTITUTE
MOTION:    
Rep. Bigelow moved to amend the bill as follows:

    5.     Page 2, Line 1:        After "MORE" insert "FOR EDUCATION"
    6.    Page 2, Line 44:        After "More" insert "for Education"
    7.     Page 2, Line 45:        After "More" insert "for Education"
    8.    Page 2, Line 48:        After "Interest earned on the Tax Me More" insert "for                             Education"
    9.    Page 2, Line 49:        At the beginning of line 49 insert "for Education"
10.    Page 2, Line 53:        After "More" insert "for Education"
11.    Page 3, Line 74:        After "More" insert "for Education"

The motion passed with Rep. Cosgrove voting in opposition.

MOTION:    Rep. Barrus moved to transmit H.B. 308 as amended with a favorable recommendation. The motion passed with Rep. Cosgrove, Rep. Johnson, Rep. Last, Rep. McGee, and Rep. Moss voting in opposition.

Rep. Dougall resumed the chair.

H.B. 158    Amendments to Transportation Provisions (Rep. W. Harper)

MOTION:    
Rep. Harper moved to delete in title and body H.B. 158 and replace it with 1st Substitute H.B. 158. The motion passed unanimously with Rep. Hughes, Rep. Last, Rep. McGee, and Rep. Tilton absent for the vote.

Rep. Harper introduced the bill and explained it to the committee. The following individuals spoke against the bill:

    Brian Bremner        Garfield County Engineer
    John Hill            Utah Petroleum Marketers and Retailers Association


    


The following individuals spoke to the bill:

    Lee Peacock            Utah Petroleum Association
    Michael Jensen        Salt Lake County Council, Wasatch Front Regional Council
    Shelly Cordon-Teuscher    Tesoro
    Barbara Thomas        Salt Lake County Council of Goverments
    Brent Gardner            Utah Association of Counties
    David Creer            Utah Trucking Association
    Steve White            Utah County Commission

The following individuals spoke for the bill:

    Chip Dawson            City of South Jordan
    Chuck Chappell        Wasatch Front Regional Council

MOTION:    Rep. Frank moved to amend H.B. 158 as follows:

1.    Page 1, Lines 23 through 25 :    

             23          .    provides that
  beginning on July 1, 2009 until December 31, 2018,       the motor fuel and special fuel tax rate shall be increased      {   or decreased   }        by 2 cents      

             24      every two years
  in the odd numbered year            {   based on the actual percentage change in the consumer price index

             25      over the previous two calendar years  
}
;

2.    Page 14, Lines 412 through 420 :    

             412          (c) (i) Beginning on or after January 1, 2009
  and until December 31, 2018       , the commission shall, every two years in

             413      the odd
  numbered       year, increase      {   or decrease   } the rate imposed under Subsection (1)(a) by      {   an amount equal

             414      to the actual percentage change in the Consumer Price Index during the previous two calendar
             415      years rounded up to the nearest half penny  
}
  2 cents       .

             416     
{       (ii) For purposes of Subsection (1)(c)(i), the commission shall calculate the Consumer

             417      Price Index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             418          (iii)  
}
  (ii)       The adjusted fuel tax rate shall take effect on January 1 in a year that the fuel tax

             419      rate is required to be adjusted in accordance with Subsection (1)(c)(i).


             420          
{   (iv)   }        (iii)       In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,



The motion passed with Rep. Cosgrove, Rep. Johnson, Rep. McGee, and Rep. Moss voting in opposition; and Rep. Bigelow, Rep. Hughes, Rep. Last, and Rep. Tilton absent for the vote.

MOTION:    Rep. Wimmer moved to amend 1st Sub. H.B. 158 as follows:

    3.    Page 2, Lines 31-32:                Delete lines 31-32
    4.    Page 3, Line 57:                Delete line 57
    5.    Page 25, Lines 764-769:            Delete lines 764-769
    6.    Page 26, Lines 770-800:            Delete lines 770-800
    7.    Page 27, Lines 801-831:            Delete lines 801-831
    8.    Page 28, Lines 832-839:            Delete lines 832-839
    And renumber the remaining sections accordingly

The motion passed unanimously with Rep. Bigelow, Rep. Last, Rep. Moss, and Rep. Tilton absent for the vote.

MOTION:    Rep. Wimmer moved to transmit 1st Sub. H.B. 158 as amended with a favorable recommendation. The motion passed with Rep. Cosgrove, Rep. Johnson, and Rep. McGee voting in opposition.

H.B. 141    Health Insurance and Health Care Payment Amendments (Rep. B. Daw)

Rep. Daw introduced the bill and explained it to the committee. The following individuals spoke to the bill:

    Kelly Atkinson        Utah Health Insurance Association
    Dave Gessel            Utah Hospital Association
    Paul Mero            Sutherland Institute
    Brad Kinhousen        Utah Association of Health Underwriters

The following individuals spoke against the bill:

    Judy Hillman            Utah Health Policy Project (handout)
    Gayle Ruzicka        Eagle Forum

The chair proceeded to the next item on the agenda.



H.B. 238    Municipal Telecommunications License Tax Amendments (Rep. W. Harper)

Rep. Harper introduced the bill and explained it to the committee.

MOTION:    
Rep. Frank moved to transmit H.B. 238 with a favorable recommendation. The motion passed unanimously with Rep. Bigelow, Rep. Hughes, Rep. Moss, Rep. Newbold, and Rep. Tilton absent for the vote.

MOTION:    Rep. Wimmer moved to adjourn. The motion passed unanimously with Rep. Bigelow, Rep. Hughes, Rep. Moss, Rep. Newbold, and Rep. Tilton absent for the vote.

Rep. Dougall adjourned the meeting at 4:53 p.m.

    






                            __________________________
                            Rep. John Dougall, Chair