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H.B. 26

             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      Committee Note:
             9          The Revenue and Taxation Interim Committee recommended this bill.
             10      General Description:
             11          This bill amends the Brine Shrimp Royalty Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    repeals obsolete language;
             15          .    addresses definitions;
             16          .    addresses the calculation of the royalty; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-23-3, as last amended by Laws of Utah 2005, Chapter 16
             25          59-23-4, as last amended by Laws of Utah 2009, Chapter 344
             26          59-23-7, as enacted by Laws of Utah 1997, Chapter 179
             27          59-23-8, as enacted by Laws of Utah 1997, Chapter 179


             28      REPEALS:
             29          59-23-2, as enacted by Laws of Utah 1997, Chapter 179
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 59-23-3 is amended to read:
             33           59-23-3. Definitions.
             34          As used in this chapter:
             35          [(1) "Alternate royalty rate" means $550,000 divided by the gross volume of
             36      unprocessed brine shrimp eggs harvested in the state during the tax year.]
             37          [(2)] (1) "Brine shrimp eggs" means dormant, early stage brine shrimp embryos
             38      encapsulated as cysts that are harvested from [the waters of] within the state.
             39          [(3)] (2) "Tax year" means a one-year period beginning on February 1 and ending on
             40      January 31 of the following year.
             41          Section 2. Section 59-23-4 is amended to read:
             42           59-23-4. Brine shrimp royalty -- Royalty rate -- Commission to prepare billing
             43      statement -- Deposit of revenue.
             44          [(1) (a) Beginning on February 1, 2004, and ending on January 31, 2006, there is
             45      imposed for each tax year a brine shrimp royalty of the lesser of:]
             46          [(i) 3.75 cents multiplied by the total pounds of unprocessed brine shrimp eggs that are
             47      harvested in the state during the tax year; or]
             48          [(ii) $550,000.]
             49          [(b)] (1) [Beginning on February 1, 2006, there is imposed] A person shall pay for each
             50      tax year a brine shrimp royalty of 3.75 cents multiplied by the total number of pounds of
             51      unprocessed brine shrimp eggs that [are harvested in] the person harvests within the state
             52      during the tax year.
             53          [(2) Beginning on February 1, 2004, and ending on January 31, 2006, the royalty
             54      amount due from a person for each tax year is:]
             55          [(a) if the brine shrimp royalty for the tax year is as described in Subsection (1)(a)(i),
             56      the gross volume of unprocessed brine shrimp eggs harvested in the state by that person during
             57      that tax year multiplied by 3.75 cents; or]
             58          [(b) if the brine shrimp royalty for the tax year is $550,000, the gross volume of


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


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




Legislative Review Note
    as of 11-20-09 6:53 AM


Office of Legislative Research and General Counsel


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