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First Substitute H.B. 304

Representative Larry B. Wiley proposes the following substitute bill:


             1     
SALES AND USE TAX REVENUES FOR QUALIFIED

             2     
EMERGENCY FOOD AGENCIES

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Larry B. Wiley

             6     
Senate Sponsor: Mike Dmitrich

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the State Community Services Act and the Sales and Use Tax Act
             11      relating to qualified emergency food agencies.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the duties of the State Community Services Office relating to qualified
             15      emergency food agencies;
             16          .    creates the Qualified Emergency Food Agencies Fund;
             17          .    dedicates certain state sales and use tax revenues to be distributed by the State
             18      Community Services Office to qualified emergency food agencies;
             19          .    establishes procedures and requirements for making or receiving a distribution of
             20      those state sales and use tax revenues;
             21          .    repeals a sales tax refund for qualified emergency food agencies; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:


             26          This bill provides effective dates.
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          9-4-1404, as last amended by Laws of Utah 2001, Chapter 162
             30          59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
             31      ENACTS:
             32          9-4-1409, Utah Code Annotated 1953
             33      REPEALS:
             34          59-12-901, as last amended by Laws of Utah 2003, Chapter 312
             35          59-12-902, as last amended by Laws of Utah 2004, Chapter 18
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 9-4-1404 is amended to read:
             39           9-4-1404. Duties of office.
             40          The office shall:
             41          (1) coordinate state activities designed to reduce poverty;
             42          (2) encourage entities in the private sector to participate in efforts to ameliorate poverty
             43      in the community;
             44          (3) cooperate with agencies of local, state, and federal government in reducing poverty
             45      and implementing community, social, and economic programs;
             46          (4) receive and expend funds for the purposes outlined in this part;
             47          (5) enter into contracts with and award grants to public and private nonprofit agencies
             48      and organizations;
             49          (6) develop a state plan based on needs identified by community action agencies and
             50      community action statewide organizations;
             51          (7) designate community action agencies to receive funds through the Community
             52      Services Block Grant program;
             53          (8) fund community action agencies and community action statewide organizations;
             54          (9) make rules in conjunction with the division pursuant to Title 63, Chapter 46a, Utah
             55      Administrative Rulemaking Act, to carry out the purposes of this part;
             56          (10) provide assistance to local governments or private organizations for the purpose of


             57      establishing and operating a community action agency;
             58          (11) provide technical assistance to community action agencies to improve program
             59      planning, program development, administration, and the mobilization of public and private
             60      resources;
             61          (12) convene public meetings which provide citizens the opportunity to comment on
             62      public policies and programs to reduce poverty;
             63          (13) advise the governor and Legislature of the nature and extent of poverty in the state
             64      and make recommendations concerning changes in state and federal policies and programs;
             65          (14) encourage Utah's nonprofit humanitarian assistance agencies serving low-income
             66      persons by facilitating, coordinating, training, partnerships, and providing technical assistance
             67      in addressing Utah's low-income persons by enhancing management, improving service and
             68      program delivery, and preserving flexibility and local initiative;
             69          (15) develop and implement management goals which fulfill the Community Services
             70      Block Grant mission, state requirements, and the mandates of federal legislation;
             71          (16) prepare a Community Services Block Grant plan which contains provisions
             72      describing how the state will carry out the assurances of the Community Services Block Grant
             73      Act;
             74          (17) act as the state agency responsible for the evaluation and improvement of
             75      emergency food assistance services in the state;
             76          (18) monitor the impact of social policies on the emergency food network;
             77          (19) provide training and technical assistance to all grantees to assist them in program
             78      development and implementation, compliance with state and federal regulations, and reporting
             79      and management information systems;
             80          [(20) certify, monitor, and decertify qualified emergency food agencies for purposes of
             81      the sales tax refund under Section 59-12-902 ; and]
             82          (20) make the distributions required by Section 9-4-1409 ; and
             83          (21) administer other programs to alleviate poverty assigned to the office.
             84          Section 2. Section 9-4-1409 is enacted to read:
             85          9-4-1409. Qualified Emergency Food Agencies Fund -- Expenditure of revenues.
             86          (1) As used in this section:
             87          (a) "Association of governments" means the following created under the authority of


             88      Title 11, Chapter 13, Interlocal Cooperation Act:
             89          (i) an association of governments; or
             90          (ii) a regional council that acts as an association of governments.
             91          (b) "Consumer price index" is as described in Section 1(f)(4), Internal Revenue Code,
             92      and defined in Section 1(f)(5), Internal Revenue Code.
             93          (c) "Food and food ingredients" is as defined in Section 59-12-102 .
             94          (d) "Pounds of food donated" means the aggregate number of pounds of food and food
             95      ingredients that are donated:
             96          (i) to a qualified emergency food agency; and
             97          (ii) by a person, other than an organization that as part of its activities operates a
             98      program that has as the program's primary purpose to:
             99          (A) warehouse and distribute food to other agencies and organizations providing food
             100      and food ingredients to low-income persons; or
             101          (B) provide food and food ingredients directly to low-income persons.
             102          (e) "Qualified emergency food agency" means an organization that:
             103          (i) is:
             104          (A) exempt from federal income taxation under Section 501(c)(3), Internal Revenue
             105      Code; or
             106          (B) an association of governments;
             107          (ii) as part of its activities operates a program that has as the program's primary purpose
             108      to:
             109          (A) warehouse and distribute food to other agencies and organizations providing food
             110      and food ingredients to low-income persons; or
             111          (B) provide food and food ingredients directly to low-income persons; and
             112          (iii) the office determines to be a qualified emergency food agency.
             113          (2) There is created a restricted special revenue fund known as the Qualified
             114      Emergency Food Agencies Fund.
             115          (3) (a) The Qualified Emergency Food Agencies Fund shall be funded by the state sales
             116      and use tax revenues described in Subsection 59-12-103 (11).
             117          (b) Any interest earned on the Qualified Emergency Food Agencies Fund shall be
             118      deposited into the General Fund.


             119          (4) The office shall for a fiscal year distribute monies deposited into the Qualified
             120      Emergency Food Agencies Fund to qualified emergency food agencies within the state as
             121      provided in this section.
             122          (5) A qualified emergency food agency shall file an application with the office before
             123      the qualified emergency food agency may receive a distribution under this section.
             124          (6) Except as provided in Subsection (7), the office shall for a fiscal year distribute to a
             125      qualified emergency food agency an amount equal to the product of:
             126          (a) the pounds of food donated to the qualified emergency food agency during that
             127      fiscal year; and
             128          (b) $.12.
             129          (7) If the monies deposited into the Qualified Emergency Food Agencies Fund are
             130      insufficient to make the distributions required by Subsection (6), the office shall make
             131      distributions to qualified emergency food agencies in the order that the office receives
             132      applications from the qualified emergency food agencies until all of the monies deposited into
             133      the Qualified Emergency Food Agencies Fund for the fiscal year are expended.
             134          (8) A qualified emergency food agency may expend a distribution received in
             135      accordance with this section only for a purpose related to:
             136          (a) warehousing and distributing food and food ingredients to other agencies and
             137      organizations providing food and food ingredients to low-income persons; or
             138          (b) providing food and food ingredients directly to low-income persons.
             139          (9) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             140      Division of Housing and Community Development may make rules providing procedures for
             141      implementing the distributions required by this section, including:
             142          (a) standards for determining and verifying the amount of a distribution that a qualified
             143      emergency food agency may receive;
             144          (b) procedures for a qualified emergency food agency to apply for a distribution,
             145      including the frequency with which a qualified emergency food agency may apply for a
             146      distribution; and
             147          (c) consistent with Subsection (1)(e), determining whether an entity is a qualified
             148      emergency food agency.
             149          Section 3. Section 59-12-103 is amended to read:


             150           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             151      tax revenues.
             152          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             153      charged for the following transactions:
             154          (a) retail sales of tangible personal property made within the state;
             155          (b) amounts paid:
             156          (i) to a:
             157          (A) telephone service provider regardless of whether the telephone service provider is
             158      municipally or privately owned; or
             159          (B) telegraph corporation:
             160          (I) as defined in Section 54-2-1 ; and
             161          (II) regardless of whether the telegraph corporation is municipally or privately owned;
             162      and
             163          (ii) for:
             164          (A) telephone service, other than mobile telecommunications service, that originates
             165      and terminates within the boundaries of this state;
             166          (B) mobile telecommunications service that originates and terminates within the
             167      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             168      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             169          (C) telegraph service;
             170          (c) sales of the following for commercial use:
             171          (i) gas;
             172          (ii) electricity;
             173          (iii) heat;
             174          (iv) coal;
             175          (v) fuel oil; or
             176          (vi) other fuels;
             177          (d) sales of the following for residential use:
             178          (i) gas;
             179          (ii) electricity;
             180          (iii) heat;


             181          (iv) coal;
             182          (v) fuel oil; or
             183          (vi) other fuels;
             184          (e) sales of prepared food;
             185          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             186      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             187      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             188      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             189      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             190      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             191      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             192      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             193      exhibition, cultural, or athletic activity;
             194          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             195      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             196          (i) the tangible personal property; and
             197          (ii) parts used in the repairs or renovations of the tangible personal property described
             198      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             199      of that tangible personal property;
             200          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             201      assisted cleaning or washing of tangible personal property;
             202          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             203      accommodations and services that are regularly rented for less than 30 consecutive days;
             204          (j) amounts paid or charged for laundry or dry cleaning services;
             205          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             206      this state the tangible personal property is:
             207          (i) stored;
             208          (ii) used; or
             209          (iii) otherwise consumed;
             210          (l) amounts paid or charged for tangible personal property if within this state the
             211      tangible personal property is:


             212          (i) stored;
             213          (ii) used; or
             214          (iii) consumed; and
             215          (m) amounts paid or charged for prepaid telephone calling cards.
             216          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             217      is imposed on a transaction described in Subsection (1) equal to the sum of:
             218          (i) a state tax imposed on the transaction at a tax rate of 4.65%; and
             219          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             220      transaction under this chapter other than this part.
             221          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             222      on a transaction described in Subsection (1)(d) equal to the sum of:
             223          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             224          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             225      transaction under this chapter other than this part.
             226          (c) Except as provided in Subsection (2)(d) or (e), beginning on January 1, 2007, a
             227      state tax and a local tax is imposed on amounts paid or charged for food and food ingredients
             228      equal to the sum of:
             229          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             230      a tax rate of 1.75%; and
             231          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             232      amounts paid or charged for food and food ingredients under this chapter other than this part.
             233          (d) Except as provided in Subsection (2)(e), if a seller collects a tax in accordance with
             234      Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state tax and a local
             235      tax is imposed on the transaction equal to the sum of:
             236          (i) a state tax imposed on the transaction at a tax rate of:
             237          (A) 4.65% for a transaction other than a transaction described in Subsection
             238      (2)(d)(i)(B) or (2)(d)(i)(C);
             239          (B) 2% for a transaction described in Subsection (1)(d); or
             240          (C) beginning on January 1, 2007, 1.75% on the amounts paid or charged for food and
             241      food ingredients; and
             242          (ii) a local tax imposed on the transaction at a tax rate equal to the sum of the following


             243      tax rates:
             244          (A) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             245      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             246          (B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             247      state impose the tax authorized by Section 59-12-1102 .
             248          (e) (i) A state tax and a local tax is imposed on an entire bundled transaction as
             249      provided in this Subsection (2)(e) if the bundled transaction is attributable to food and food
             250      ingredients and tangible personal property other than food and food ingredients.
             251          (ii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by a
             252      seller other than a seller that collects a tax in accordance with Subsection 59-12-107 (1)(b),
             253      beginning on January 1, 2007, a state tax and a local tax is imposed on the entire bundled
             254      transaction equal to the sum of:
             255          (A) a state tax imposed on the entire bundled transaction at the tax rate described in
             256      Subsection (2)(a)(i); and
             257          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             258      described in Subsection (2)(a)(ii).
             259          (iii) If the tax on a bundled transaction described in Subsection (2)(e)(i) is collected by
             260      a seller in accordance with Subsection 59-12-107 (1)(b), beginning on January 1, 2007, a state
             261      tax and a local tax is imposed on the entire bundled transaction equal to the sum of:
             262          (A) a state tax imposed on the entire bundled transaction at the tax rate described in
             263      Subsection (2)(d)(i)(A); and
             264          (B) a local tax imposed on the entire bundled transaction at a tax rate equal to the sum
             265      of the following tax rates:
             266          (I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
             267      and towns in the state impose the tax authorized by Section 59-12-204 ; and
             268          (II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             269      state impose the tax authorized by Section 59-12-1102 .
             270          (f) Subject to Subsections (2)(g) and (h), a tax rate repeal or tax rate change for a tax
             271      rate imposed under the following shall take effect on the first day of a calendar quarter:
             272          (i) Subsection (2)(a)(i);
             273          (ii) Subsection (2)(b)(i);


             274          (iii) Subsection (2)(c)(i);
             275          (iv) Subsection (2)(d)(i);
             276          (v) Subsection (2)(e)(ii)(A); or
             277          (vi) Subsection (2)(e)(iii)(A).
             278          (g) (i) For a transaction described in Subsection (2)(g)(iii), a tax rate increase shall take
             279      effect on the first day of the first billing period that begins after the effective date of the tax rate
             280      increase if the billing period for the transaction begins before the effective date of a tax rate
             281      increase imposed under:
             282          (A) Subsection (2)(a)(i);
             283          (B) Subsection (2)(b)(i);
             284          (C) Subsection (2)(c)(i);
             285          (D) Subsection (2)(d)(i);
             286          (E) Subsection (2)(e)(ii)(A); or
             287          (F) Subsection (2)(e)(iii)(A).
             288          (ii) For a transaction described in Subsection (2)(g)(iii), the repeal of a tax or a tax rate
             289      decrease shall take effect on the first day of the last billing period that began before the
             290      effective date of the repeal of the tax or the tax rate decrease if the billing period for the
             291      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             292      imposed under:
             293          (A) Subsection (2)(a)(i);
             294          (B) Subsection (2)(b)(i);
             295          (C) Subsection (2)(c)(i);
             296          (D) Subsection (2)(d)(i);
             297          (E) Subsection (2)(e)(ii)(A); or
             298          (F) Subsection (2)(e)(iii)(A).
             299          (iii) Subsections (2)(g)(i) and (ii) apply to transactions subject to a tax under:
             300          (A) Subsection (1)(b);
             301          (B) Subsection (1)(c);
             302          (C) Subsection (1)(d);
             303          (D) Subsection (1)(e);
             304          (E) Subsection (1)(f);


             305          (F) Subsection (1)(g);
             306          (G) Subsection (1)(h);
             307          (H) Subsection (1)(i);
             308          (I) Subsection (1)(j); or
             309          (J) Subsection (1)(k).
             310          (h) (i) For a tax rate described in Subsection (2)(h)(ii), if a tax due on a catalogue sale
             311      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             312      or change in a tax rate takes effect:
             313          (A) on the first day of a calendar quarter; and
             314          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             315          (ii) Subsection (2)(h)(i) applies to the tax rates described in the following:
             316          (A) Subsection (2)(a)(i);
             317          (B) Subsection (2)(b)(i);
             318          (C) Subsection (2)(c)(i);
             319          (D) Subsection (2)(d)(i);
             320          (E) Subsection (2)(e)(ii)(A); or
             321          (F) Subsection (2)(e)(iii)(A).
             322          (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             323      the commission may by rule define the term "catalogue sale."
             324          (3) (a) [Except as provided in Subsections (4) through (10), the] The following state
             325      taxes shall be deposited into the General Fund:
             326          (i) the tax imposed by Subsection (2)(a)(i);
             327          (ii) the tax imposed by Subsection (2)(b)(i);
             328          (iii) the tax imposed by Subsection (2)(c)(i);
             329          (iv) the tax imposed by Subsection (2) (d)(i);
             330          (v) the tax imposed by Subsection (2)(e)(ii)(A); and
             331          (vi) the tax imposed by Subsection (2)(e)(iii)(A).
             332          (b) The following local taxes shall be distributed to a county, city, or town as provided
             333      in this chapter:
             334          (i) the tax imposed by Subsection (2)(a)(ii);
             335          (ii) the tax imposed by Subsection (2)(b)(ii);


             336          (iii) the tax imposed by Subsection (2)(c)(ii); and
             337          (iv) the tax imposed by Subsection (2)(e)(ii)(B).
             338          (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
             339      state shall receive the county's, city's, or town's proportionate share of the revenues generated
             340      by the following local taxes as provided in Subsection (3)(c)(ii):
             341          (A) the local tax described in Subsection (2)(d)(ii); and
             342          (B) the local tax described in Subsection (2)(e)(iii)(B).
             343          (ii) For revenues generated by a tax described in Subsection (3)(c)(i), the commission
             344      shall determine a county's, city's, or town's proportionate share of the revenues by:
             345          (A) calculating an amount equal to the population of the unincorporated area of the
             346      county, city, or town divided by the total population of the state; and
             347          (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
             348      amount of revenues generated by the taxes described in Subsection (3)(c)(i) for all counties,
             349      cities, and towns.
             350          (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
             351      purposes of this section shall be derived from the most recent official census or census estimate
             352      of the United States Census Bureau.
             353          (B) If a needed population estimate is not available from the United States Census
             354      Bureau, population figures shall be derived from the estimate from the Utah Population
             355      Estimates Committee created by executive order of the governor.
             356          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             357      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             358      through (g):
             359          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             360          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             361          (B) for the fiscal year; or
             362          (ii) $17,500,000.
             363          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             364      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             365      Department of Natural Resources to:
             366          (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to


             367      protect sensitive plant and animal species; or
             368          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             369      act, to political subdivisions of the state to implement the measures described in Subsections
             370      63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
             371          (ii) Money transferred to the Department of Natural Resources under Subsection
             372      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             373      person to list or attempt to have listed a species as threatened or endangered under the
             374      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             375          (iii) At the end of each fiscal year:
             376          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             377      Conservation and Development Fund created in Section 73-10-24 ;
             378          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             379      Program Subaccount created in Section 73-10c-5 ; and
             380          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             381      Program Subaccount created in Section 73-10c-5 .
             382          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             383      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             384      created in Section 4-18-6 .
             385          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             386      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             387      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             388      water rights.
             389          (ii) At the end of each fiscal year:
             390          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             391      Conservation and Development Fund created in Section 73-10-24 ;
             392          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             393      Program Subaccount created in Section 73-10c-5 ; and
             394          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             395      Program Subaccount created in Section 73-10c-5 .
             396          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             397      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development


             398      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             399          (ii) In addition to the uses allowed of the Water Resources Conservation and
             400      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             401      Development Fund may also be used to:
             402          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             403      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             404      quantifying surface and ground water resources and describing the hydrologic systems of an
             405      area in sufficient detail so as to enable local and state resource managers to plan for and
             406      accommodate growth in water use without jeopardizing the resource;
             407          (B) fund state required dam safety improvements; and
             408          (C) protect the state's interest in interstate water compact allocations, including the
             409      hiring of technical and legal staff.
             410          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             411      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             412      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             413          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             414      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             415      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             416          (i) provide for the installation and repair of collection, treatment, storage, and
             417      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             418          (ii) develop underground sources of water, including springs and wells; and
             419          (iii) develop surface water sources.
             420          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             421      2006, the difference between the following amounts shall be expended as provided in this
             422      Subsection (5), if that difference is greater than $1:
             423          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             424      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             425          (ii) $17,500,000.
             426          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             427          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             428      credits; and


             429          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             430      restoration.
             431          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             432      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             433      created in Section 73-10-24 .
             434          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             435      remaining difference described in Subsection (5)(a) shall be:
             436          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             437      credits; and
             438          (B) expended by the Division of Water Resources for cloud-seeding projects
             439      authorized by Title 73, Chapter 15, Modification of Weather.
             440          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             441      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             442      created in Section 73-10-24 .
             443          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             444      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             445      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             446      Division of Water Resources for:
             447          (i) preconstruction costs:
             448          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             449      26, Bear River Development Act; and
             450          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             451      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             452          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             453      Chapter 26, Bear River Development Act;
             454          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             455      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             456          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             457      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             458          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             459      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.


             460          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             461      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             462      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             463      incurred for employing additional technical staff for the administration of water rights.
             464          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             465      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             466      Fund created in Section 73-10-24 .
             467          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             468      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             469      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             470      the Transportation Fund created by Section 72-2-102 .
             471          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             472      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             473      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             474      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             475      transactions under Subsection (1).
             476          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             477      have been paid off and the highway projects completed that are intended to be paid from
             478      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             479      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             480      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             481      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             482      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             483          (8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
             484      year 2004-05, the commission shall each year on or before the September 30 immediately
             485      following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
             486      into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
             487      greater than $0.
             488          (b) The difference described in Subsection (8)(a) is equal to the difference between:
             489          (i) the total amount of the revenues the commission received from sellers collecting the
             490      taxes described in Subsections (2)(d)(i) and (2)(e)(iii)(A) for the fiscal year immediately


             491      preceding the September 30 described in Subsection (8)(a); and
             492          (ii) $7,279,673.
             493          (9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             494      Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after
             495      July 1, 2007, the Division of Finance shall deposit into the Centennial Highway Fund
             496      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             497      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             498      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             499      and use tax on vehicles and vehicle-related products:
             500          (i) the tax imposed by Subsection (2)(a)(i);
             501          (ii) the tax imposed by Subsection (2)(b)(i);
             502          (iii) the tax imposed by Subsection (2)(c)(i); and
             503          (iv) the tax imposed by Subsection (2)(e)(ii)(A).
             504          (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             505      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             506      highway projects completed that are intended to be paid from revenues deposited in the
             507      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             508      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             509      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             510      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             511      which represents a portion of the approximately 17% of sales and use tax revenues generated
             512      annually by the sales and use tax on vehicles and vehicle-related products:
             513          (i) the tax imposed by Subsection (2)(a)(i);
             514          (ii) the tax imposed by Subsection (2)(b)(i);
             515          (iii) the tax imposed by Subsection (2)(c)(i); and
             516          (iv) the tax imposed by Subsection (2)(e)(ii)(A).
             517          (10) (a) Notwithstanding Subsection (3)(a) and until Subsection (10)(b) applies, the
             518      Division of Finance shall annually deposit $90,000,000 of the revenues generated by the taxes
             519      listed under Subsection (3)(a) into the Critical Highway Needs Fund created by Section
             520      72-2-125 .
             521          (b) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under


             522      Subsections (7) and (9), when the general obligation bonds authorized by Section 63B-16-101
             523      have been paid off and the highway projects completed that are included in the prioritized
             524      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             525      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             526      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             527      of 2005 created by Section 72-2-124 .
             528          (11) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             529      2008-09, $1,000,000 shall be deposited into the Qualified Emergency Food Agencies Fund
             530      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             531          Section 4. Repealer.
             532          This bill repeals:
             533          Section 59-12-901, Definitions.
             534          Section 59-12-902, Sales tax refund for qualified emergency food agencies -- Use of
             535      amounts received as refund -- Administration -- Rulemaking authority.
             536          Section 5. Effective date.
             537          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2008.
             538          (2) The repeal of Sections 59-12-901 and 59-12-902 take effect on July 1, 2008.


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