H.B. 26 Enrolled

1

BRINE SHRIMP ROYALTY ACT AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Todd E. Kiser
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill amends the Brine Shrimp Royalty Act.
10 Highlighted Provisions:
11 This bill:
12 . repeals obsolete language;
13 . addresses definitions;
14 . addresses the calculation of the royalty; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 59-23-3, as last amended by Laws of Utah 2005, Chapter 16
23 59-23-4, as last amended by Laws of Utah 2009, Chapter 344
24 59-23-7, as enacted by Laws of Utah 1997, Chapter 179
25 59-23-8, as enacted by Laws of Utah 1997, Chapter 179
26 REPEALS:
27 59-23-2, as enacted by Laws of Utah 1997, Chapter 179
28
29 Be it enacted by the Legislature of the state of Utah:

30 Section 1. Section 59-23-3 is amended to read:
31 59-23-3. Definitions.
32 As used in this chapter:
33 [(1) "Alternate royalty rate" means $550,000 divided by the gross volume of
34 unprocessed brine shrimp eggs harvested in the state during the tax year.]
35 [(2)] (1) "Brine shrimp eggs" means dormant, early stage brine shrimp embryos
36 encapsulated as cysts that are harvested from [the waters of] within the state.
37 [(3)] (2) "Tax year" means a one-year period beginning on February 1 and ending on
38 January 31 of the following year.
39 Section 2. Section 59-23-4 is amended to read:
40 59-23-4. Brine shrimp royalty -- Royalty rate -- Commission to prepare billing
41 statement -- Deposit of revenue.
42 [(1) (a) Beginning on February 1, 2004, and ending on January 31, 2006, there is
43 imposed for each tax year a brine shrimp royalty of the lesser of:]
44 [(i) 3.75 cents multiplied by the total pounds of unprocessed brine shrimp eggs that
45 are harvested in the state during the tax year; or]
46 [(ii) $550,000.]
47 [(b)] (1) [Beginning on February 1, 2006, there is imposed] A person shall pay for
48 each tax year a brine shrimp royalty of 3.75 cents multiplied by the total number of pounds of
49 unprocessed brine shrimp eggs that [are harvested in] the person harvests within the state
50 during the tax year.
51 [(2) Beginning on February 1, 2004, and ending on January 31, 2006, the royalty
52 amount due from a person for each tax year is:]
53 [(a) if the brine shrimp royalty for the tax year is as described in Subsection (1)(a)(i),
54 the gross volume of unprocessed brine shrimp eggs harvested in the state by that person during
55 that tax year multiplied by 3.75 cents; or]
56 [(b) if the brine shrimp royalty for the tax year is $550,000, the gross volume of
57 unprocessed brine shrimp eggs harvested in the state by that person for that tax year multiplied

58 by the alternate royalty rate.]
59 [(3) Beginning on February 1, 2006, the royalty amount due from a person for a tax
60 year is the gross volume of unprocessed brine shrimp eggs harvested in the state by that person
61 during that tax year multiplied by 3.75 cents.]
62 [(4)] (2) (a) A person that harvests unprocessed brine shrimp eggs shall report to the
63 Department of Natural Resources the total [gross volume] number of pounds of unprocessed
64 brine shrimp eggs harvested by that person for that tax year on or before the February 15
65 immediately following the last day of that tax year.
66 (b) The Department of Natural Resources shall provide the following information to
67 the commission on or before the March 1 immediately following the last day of a tax year:
68 (i) the total [gross volume] number of pounds of unprocessed brine shrimp eggs
69 harvested for that tax year; and
70 (ii) for each person that harvested unprocessed brine shrimp eggs for that tax year:
71 (A) the [gross volume] total number of pounds of unprocessed brine shrimp eggs
72 harvested by that person for that tax year; and
73 (B) a current billing address for that person; and
74 (iii) any additional information required by the commission.
75 (c) (i) The commission shall prepare and mail a billing statement to each person that
76 harvested unprocessed brine shrimp eggs in a tax year by the March 30 immediately following
77 the last day of a tax year.
78 (ii) The billing statement under Subsection [(4)] (2)(c)(i) shall specify:
79 (A) the [gross volume] total number of pounds of unprocessed brine shrimp eggs
80 harvested by that person for that tax year;
81 (B) the [amount of] brine shrimp royalty that the person owes; and
82 (C) the date that the brine shrimp royalty payment is due as provided in Section
83 59-23-5 .
84 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
85 the commission may make rules prescribing the information required under Subsection [(4)]

86 (2)(b)(iii).
87 [(5) All revenue] (3) Revenue generated by the brine shrimp royalty shall be deposited
88 in the Species Protection Account created in Section 79-2-303 .
89 [(6)] (4) Beginning with the 2004 interim, the Revenue and Taxation Interim
90 Committee:
91 (a) shall review the [annual] brine shrimp royalty [amount] imposed under this section
92 [one or more times] at least every five years;
93 (b) shall determine on or before the November interim meeting of the year in which
94 the Revenue and Taxation Interim Committee reviews the [annual] brine shrimp royalty
95 [amount] imposed under this section whether the brine shrimp royalty [amount] should be[:(i)]
96 continued[; (ii)], modified[;], or [(iii)] repealed; and
97 (c) may review any other issue related to the brine shrimp royalty imposed under this
98 part [as determined by the Revenue and Taxation Interim Committee].
99 Section 3. Section 59-23-7 is amended to read:
100 59-23-7. Rules.
101 [The] In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
102 the commission may make rules to implement and enforce this chapter.
103 Section 4. Section 59-23-8 is amended to read:
104 59-23-8. Penalties and interest.
105 A person who harvests unprocessed brine shrimp eggs who fails to comply with this
106 chapter is subject to penalties and interest as provided in Sections 59-1-401 and 59-1-402 .
107 Section 5. Repealer.
108 This bill repeals:
109 Section 59-23-2, Intent statement.