First Substitute S.B. 132

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Corrected - House Committee Amendments 3-5-2009 je/

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House Committee Amendments 3-3-2009 je/rlr This document includes House Committee Amendments incorporated into the bill on Tue, Mar 3, 2009 at 2:31 PM by jeyring. --> This document includes House Committee Amendments (CORRECTED) incorporated into the bill on Thu, Mar 5, 2009 at 10:12 AM by jeyring. --> Senator Karen Mayne proposes the following substitute bill:

1 INDIVIDUAL INCOME TAX CONTRIBUTION
2 FOR METHAMPHETAMINE HOUSING
3 RECONSTRUCTION AND REHABILITATION
4 FUND
5 2009 GENERAL SESSION
6 STATE OF UTAH
7 Chief Sponsor: Karen Mayne
8 House Sponsor: Jennifer M. Seelig
9
10 LONG TITLE
11 General Description:
12 This bill amends the Housing and Community Development part and the Individual
13 Income Tax Contribution Act to enact the Methamphetamine Housing Reconstruction
14 and Rehabilitation Fund Act and to enact an income tax contribution.
15 Highlighted Provisions:
16 This bill:
17 . defines terms;
18 . enacts the Methamphetamine Housing Reconstruction and Rehabilitation Fund Act;
19 . creates a restricted account known as the Methamphetamine Housing
20 Reconstruction and Rehabilitation Fund;
21 . enacts an individual income tax contribution for the Methamphetamine Housing
22 Reconstruction and Rehabilitation Fund for H. [ the ] a .H taxable year beginning on or after
23 January 1, 2009, but beginning on or before H. [ December 31, 2009 ] December 31, 2010 .H ;
24 . provides that monies received from the income tax contribution shall be deposited
25 into the Methamphetamine Housing Reconstruction and Rehabilitation Fund and

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- 2 - 26 expended by a qualified housing organization to:
27 . reconstruct or rehabilitate residences contaminated by methamphetamine; or
28 . purchase property upon which a residence contaminated by methamphetamine is
29 reconstructed or rehabilitated;
30 . grants rulemaking authority to the Division of Housing and Community
31 Development; and
32 . makes technical changes.
33 Monies Appropriated in this Bill:
34 None
35 Other Special Clauses:
36 This bill has retrospective operation for a taxable year beginning on or after January 1,
37 2009.
38 Utah Code Sections Affected:
39 ENACTS:
40 9-4-1501, Utah Code Annotated 1953
41 9-4-1502, Utah Code Annotated 1953
42 9-4-1503, Utah Code Annotated 1953
43 59-10-1313, Utah Code Annotated 1953
44
45 Be it enacted by the Legislature of the state of Utah:
46 Section 1. Section 9-4-1501 is enacted to read:
47 Part 15. Methamphetamine Housing Reconstruction and
48 Rehabilitation Fund Act
49 9-4-1501. Title.
50 This part is known as the "Methamphetamine Housing Reconstruction and
51 Rehabilitation Fund Act."
52 Section 2. Section 9-4-1502 is enacted to read:
53 9-4-1502. Definitions.
54 As used in this part:
55 (1) "Contaminated by methamphetamine" means that a residence is:
56 (a) polluted by hazardous materials as a result of the use, production, or presence of

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- 3 - 57 methamphetamine in excess of decontamination standards adopted by the Department of
58 Health under Section 26-51-201 ; and
59 (b) placed on a contamination list by a local health department in accordance with
60 Section 19-6-901 .
61 (2) "Fund" means the Methamphetamine Housing Reconstruction and Rehabilitation
62 Fund created in Section 9-4-1503 .
63 (3) "Qualified housing organization" means an affiliate located in this state of an
64 organization if that organization:
65 (a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
66 Code;
67 (b) operates on a worldwide basis;
68 (c) has the primary purposes of:
69 (i) constructing, reconstructing, and rehabilitating residences that are:
70 (A) sold to low-income persons selected by the organization in accordance with any
71 rules the division makes as authorized by Section 9-4-1503 ; and
72 (B) financed with loans that are not subject to interest as determined by the
73 organization in accordance with any rules the division makes as authorized by Section
74 9-4-1503 ; and
75 (ii) purchasing property upon which residences described in Subsection (3)(c)(i) are
76 constructed, reconstructed, or rehabilitated;
77 (d) expends a portion of the repayment on the loans described in Subsection
78 (3)(c)(i)(B) to finance:
79 (i) the construction, reconstruction, and rehabilitation of residences described in
80 Subsection (3)(c)(i); and
81 (ii) the purchase of property upon which residences described in Subsection (3)(c)(i)
82 are constructed, reconstructed, or rehabilitated; and
83 (e) has built more than 250,000 residences in total.
84 (4) (a) "Residence" means a single-family residence.
85 (b) "Residence" includes:
86 (i) a condominium;
87 (ii) a garage;

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- 4 - 88 (iii) real property appurtenant to a residence:
89 (A) as determined by the division in accordance with any rules the division makes as
90 authorized by Section 9-4-1503 ; and
91 (B) if that real property is contaminated by methamphetamine;
92 (iv) a shed; or
93 (v) a town home.
94 (c) "Residence" does not include:
95 (i) an apartment or other rental unit as determined by the division in accordance with
96 any rules the division makes as authorized by Section 9-4-1503 ; or
97 (ii) an outbuilding except for a garage or shed.
98 Section 3. Section 9-4-1503 is enacted to read:
99 9-4-1503. Methamphetamine Housing Reconstruction and Rehabilitation Fund --
100 Creation -- Interest -- Use of contributions and interest.
101 (1) There is created within the General Fund a restricted account known as the
102 Methamphetamine Housing Reconstruction and Rehabilitation Fund.
103 (2) The fund shall be funded by:
104 (a) contributions deposited into the fund in accordance with Section 59-10-1313 ; and
105 (b) interest described in Subsection (3).
106 (3) (a) The fund shall earn interest.
107 (b) Interest earned on the fund shall be deposited into the fund.
108 (4) (a) The division shall distribute contributions and interest deposited into the fund to
109 one or more qualified housing organizations.
110 (b) (i) Subject to Subsection (4)(b)(ii), a qualified housing organization that receives a
111 distribution from the division in accordance with Subsection (4)(a) shall expend the
112 distribution to:
113 (A) reconstruct or rehabilitate one or more residences that are:
114 (I) sold to low-income persons selected by the qualified housing organization in
115 accordance with any rules the division makes as authorized by this section; and
116 (II) financed with loans that are not subject to interest as determined by the qualified
117 housing organization in accordance with any rules the division makes as authorized by this
118 section; or

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- 5 - 119 (B) purchase property upon which a residence described in Subsection (4)(b)(i)(A) is
120 reconstructed or rehabilitated.
121 (ii) A qualified housing organization may not expend a distribution the qualified
122 housing organization receives in accordance with this Subsection (4) for any administrative
123 cost relating to an expenditure authorized by Subsection (4)(b)(i).
124 (5) (a) In accordance with any rules the division makes as authorized under Subsection
125 (6)(c), a qualified housing organization may apply to the division to receive a distribution
126 under Subsection (4).
127 (b) A qualified housing organization may apply to the division to receive a distribution
128 under Subsection (4) by filing an application with the division:
129 (i) on or before November 1; and
130 (ii) on a form provided by the division.
131 (c) The application:
132 (i) shall include information required by the division establishing that the qualified
133 housing organization owns each residence with respect to which the qualified housing
134 organization plans to expend a distribution under Subsection (4);
135 (ii) shall include information required by the division establishing the qualified housing
136 organization's plan to expend the distribution for a purpose described in Subsection (4)(b)(i);
137 (iii) shall include information required by the division establishing that the qualified
138 housing organization's plan to expend the distribution meets conditions established in
139 accordance with Title 19, Chapter 6, Part 9, Illegal Drug Operations Site Reporting and
140 Decontamination Act, for a local health department to remove the residence from the local
141 health department's decontamination list; and
142 (iv) may include other information the division requires by rule.
143 (d) The division shall determine on or before the November 30 immediately following
144 the November 1 described in Subsection (5)(b) whether a qualified housing organization's
145 application to the division meets the requirements of Subsection (5)(c).
146 (e) (i) The division shall distribute monies credited to the fund to each qualified
147 housing organization that meets the requirements of Subsection (5)(c) as determined by the
148 division:
149 (A) on or before the December 31 immediately following the November 1 described in

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- 6 - 150 Subsection (5)(b); and
151 (B) in accordance with this Subsection (5)(e).
152 (ii) The division shall determine:
153 (A) the population of the county in which a qualified housing organization that meets
154 the requirements of Subsection (5)(c) is headquartered; and
155 (B) the total population of all of the counties in which the qualified housing
156 organizations that meet the requirements of Subsection (5)(c) are headquartered.
157 (iii) Except as provided in Subsection (5)(e)(iv), the division shall determine a
158 qualified housing organization's distribution by making the following calculation:
159 (A) calculating a percentage determined by dividing the population of the county in
160 which the qualified housing organization that meets the requirements of Subsection (5)(c) is
161 headquartered by the population calculated under Subsection (5)(e)(ii)(B); and
162 (B) multiplying the percentage determined under Subsection (5)(e)(iii)(A) by the fund
163 balance.
164 (iv) If two or more qualified housing organizations that meet the requirements of
165 Subsection (5)(c) as determined by the division are headquartered within one county, the
166 division shall determine each qualified housing organization's distribution by:
167 (A) making the calculation required by Subsection (5)(e)(iii); and
168 (B) dividing the amount calculated under Subsection (5)(e)(iii) by the number of
169 qualified housing organizations that meet the requirements of Subsection (5)(c) as determined
170 by the division that are headquartered within the county.
171 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
172 division may make rules:
173 (a) to define what constitutes:
174 (i) a low-income person;
175 (ii) a loan that is not subject to interest; or
176 (iii) an apartment or other rental unit;
177 (b) for determining the circumstances under which real property is appurtenant to a
178 residence;
179 (c) prescribing information a qualified housing organization is required to include with
180 an application under Subsection (5);

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House Committee Amendments 3-3-2009 je/rlr 181

(d) for purposes of Subsection (5)(e), for determining the population of a county; or
182 (e) for determining the county in which a qualified housing organization is
183 headquartered.
184 Section 4. Section 59-10-1313 is enacted to read:
185 59-10-1313. Contribution to Methamphetamine Housing Reconstruction and
186 Rehabilitation Fund.
187 (1) Except as provided in Section 59-10-1304 , for H. [ the ] a .H taxable year beginning
187a on or
188 after January 1, 2009, but beginning on or before H. [ December 31,2009 ] December 31, 2010 .H
188a1 only, a
188a resident or
189 nonresident individual that files an individual income tax return under this chapter may
190 designate on the resident or nonresident individual's individual income tax return a contribution
191 as provided in this section to be:
192 (a) deposited into the Methamphetamine Housing Reconstruction and Rehabilitation
193 Fund created in Section 9-4-1503 ; and
194 (b) expended for the purposes described in Section 9-4-1503 .
195 (2) The commission shall:
196 (a) determine the total amount of contributions designated in accordance with this
197 section for the taxable year described in Subsection (1); and
198 (b) credit the amount described in Subsection (2)(a) to the Methamphetamine Housing
199 Reconstruction and Rehabilitation Fund created in Section 9-4-1503 .
200 Section 5. Retrospective operation.
201 This bill has retrospective operation for a taxable year beginning on or after January 1,
202 2009.