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First Substitute H.B. 227

Representative Stephen E. Sandstrom proposes the following substitute bill:


             1     
LICENSING ELIGIBILITY

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen E. Sandstrom

             5     
Senate Sponsor: Margaret Dayton

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill requires applicants for various licenses to provide the licensing authority with
             10      documentation of their lawful presence in the United States.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires an applicant for a new business license issued by a municipality or a county
             14      to provide the municipality's or county's business licensing agency with
             15      documentation of the applicant's lawful presence in the United States; and
             16          .    requires the applicant to provide the licensing agency with an affidavit stating that
             17      the applicant is a citizen or lawfully present in the United States.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          10-1-203, as last amended by Laws of Utah 2009, Chapter 189
             25          17-53-216, as last amended by Laws of Utah 2008, Chapter 250


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 10-1-203 is amended to read:
             29           10-1-203. License fees and taxes -- Documentation of lawful presence --
             30      Disproportionate rental fee -- Application information to be transmitted to the county
             31      assessor.
             32          (1) As used in this section:
             33          (a) "Business" means any enterprise carried on for the purpose of gain or economic
             34      profit, except that the acts of employees rendering services to employers are not included in
             35      this definition.
             36          (b) "Telecommunications provider" is as defined in Section 10-1-402 .
             37          (c) "Telecommunications tax or fee" is as defined in Section 10-1-402 .
             38          (2) (a) Except as provided in Subsections (3) through (5), the legislative body of a
             39      municipality may license for the purpose of regulation and revenue any business within the
             40      limits of the municipality and may regulate that business by ordinance.
             41          (b) In order to establish an applicant's lawful presence in the United States for the
             42      purpose of receiving a new business license under this chapter, the applicant shall provide the
             43      municipality's business licensing agency with one of the following:
             44          (i) a copy of the applicant's valid driver license indicating the applicant's lawful
             45      presence in the United States;
             46          (ii) a copy of the applicant's birth certificate;
             47          (iii) a copy of the applicant's passport; or
             48          (iv) a copy of a valid work visa or similar document issued to the applicant by the
             49      United States government indicating the applicant's lawful presence in the United States.
             50          (c) Each applicant for a new license, a renewal of a license, or a replacement license
             51      shall execute and submit an affidavit to the municipality's business licensing agency, under
             52      penalty of perjury, stating that the applicant is a United States citizen or lawfully present in the
             53      United States.
             54          (d) Subsection (b) does not apply to an application for a renewal or replacement
             55      license.
             56          (e) If the business licensing agency provides for an electronic filing of an application


             57      for a new, renewal, or replacement license, then it may also provide for the electronic filing of:
             58          (i) verification documents required under Subsection (2)(b); and
             59          (ii) the affidavit required under Subsection (2)(c).
             60          (3) (a) The legislative body of a municipality may raise revenue by levying and
             61      collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
             62      and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
             63      energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
             64      Energy Sales and Use Tax Act.
             65          (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
             66      in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
             67          (ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January 1,
             68      1997, or a future franchise shall remain in full force and effect.
             69          (c) A municipality that collects a contractual franchise fee pursuant to a franchise
             70      agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on July
             71      1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
             72          (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
             73      defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain
             74      a provision that:
             75          (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
             76      otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
             77          (B) imposes the contractual franchise fee on or after the day on which Part 3,
             78      Municipal Energy Sales and Use Tax Act is:
             79          (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
             80      is reduced; and
             81          (II) is not superseded by a law imposing a substantially equivalent tax.
             82          (ii) A municipality may not charge a contractual franchise fee under the provisions
             83      permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
             84      fee or a tax on all energy suppliers.
             85          (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
             86      municipality may raise revenue by levying and providing for the collection of a municipal
             87      telecommunications license tax as provided in Part 4, Municipal Telecommunications License


             88      Tax Act.
             89          (b) A municipality may not levy or collect a telecommunications tax or fee on a
             90      telecommunications provider except as provided in Part 4, Municipal Telecommunications
             91      License Tax Act.
             92          (5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
             93      levying and collecting a license fee or tax on:
             94          (A) a parking service business in an amount that is less than or equal to:
             95          (I) $1 per vehicle that parks at the parking service business; or
             96          (II) 2% of the gross receipts of the parking service business;
             97          (B) a public assembly or other related facility in an amount that is less than or equal to
             98      $5 per ticket purchased from the public assembly or other related facility; and
             99          (C) subject to the limitations of Subsections (5)(c), (d), and (e), a business:
             100          (I) that causes disproportionate costs of municipal services; or
             101          (II) for which the municipality provides an enhanced level of municipal services.
             102          (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
             103      levy or collect a license fee or tax on a public assembly or other related facility owned and
             104      operated by another political subdivision other than a community development and renewal
             105      agency without the written consent of the other political subdivision.
             106          (b) As used in this Subsection (5):
             107          (i) "Municipal services" includes:
             108          (A) public utilities; and
             109          (B) services for:
             110          (I) police;
             111          (II) fire;
             112          (III) storm water runoff;
             113          (IV) traffic control;
             114          (V) parking;
             115          (VI) transportation;
             116          (VII) beautification; or
             117          (VIII) snow removal.
             118          (ii) "Parking service business" means a business:


             119          (A) that primarily provides off-street parking services for a public facility that is
             120      wholly or partially funded by public moneys;
             121          (B) that provides parking for one or more vehicles; and
             122          (C) that charges a fee for parking.
             123          (iii) "Public assembly or other related facility" means an assembly facility that:
             124          (A) is wholly or partially funded by public moneys;
             125          (B) is operated by a business; and
             126          (C) requires a person attending an event at the assembly facility to purchase a ticket.
             127          (c) (i) Before the legislative body of a municipality imposes a license fee on a business
             128      that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
             129      legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
             130      under Subsection (5)(a)(i)(C)(I):
             131          (A) the costs that constitute disproportionate costs; and
             132          (B) the amounts that are reasonably related to the costs of the municipal services
             133      provided by the municipality.
             134          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
             135      the costs of the municipal services provided by the municipality.
             136          (d) (i) Before the legislative body of a municipality imposes a license fee on a business
             137      for which it provides an enhanced level of municipal services under Subsection (5)(a)(i)(C)(II),
             138      the legislative body of the municipality shall adopt an ordinance defining for purposes of the
             139      fee under Subsection (5)(a)(i)(C)(II):
             140          (A) the level of municipal services that constitutes the basic level of municipal services
             141      in the municipality; and
             142          (B) the amounts that are reasonably related to the costs of providing an enhanced level
             143      of municipal services in the municipality.
             144          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
             145      the costs of providing an enhanced level of the municipal services.
             146          (e) (i) As used in this Subsection (5)(e):
             147          (A) "Disproportionate rental fee" means a license fee on rental housing based on the
             148      disproportionate costs of municipal services caused by the rental housing or on an enhanced
             149      level of municipal services provided to the rental housing.


             150          (B) "Disproportionate rental fee reduction" means a reduction of a disproportionate
             151      rental fee as a condition of complying with the requirements of a good landlord program.
             152          (C) "Good landlord program" means a program established by a municipality that
             153      provides a reduction in a disproportionate rental fee for a landlord who:
             154          (I) completes a landlord training program approved by the municipality;
             155          (II) implements measures to reduce crime in rental housing as specified in municipal
             156      ordinances; and
             157          (III) operates and manages rental housing in accordance with applicable municipal
             158      ordinances.
             159          (D) "Municipal services study" means a study, or an updated study, conducted by a
             160      municipality of the cost of all municipal services that the municipality provides to the
             161      applicable rental housing.
             162          (E) "Rental housing cost" means the municipality's cost:
             163          (I) of providing municipal services to the rental housing;
             164          (II) that is reasonably attributable to the rental housing; and
             165          (III) that would not have occurred in the absence of the rental housing.
             166          (ii) A municipality may impose and collect a disproportionate rental fee if:
             167          (A) the municipality:
             168          (I) adopts the ordinances required under Subsections (5)(c) and (d), as applicable;
             169          (II) conducts a municipal services study;
             170          (III) updates the municipal services study:
             171          (Aa) before increasing the amount of the disproportionate rental fee; and
             172          (Bb) before decreasing the amount of the disproportionate rental fee reduction; and
             173          (IV) establishes a good landlord program; and
             174          (B) the disproportionate rental fee does not exceed the rental housing cost, as
             175      determined by the municipal services study.
             176          (iii) (A) The requirement under Subsection (5)(e)(ii)(A)(IV) to establish a good
             177      landlord program does not apply to a municipality that imposed and collected a
             178      disproportionate rental fee on January 1, 2009.
             179          (B) A municipality claiming an exemption under Subsection (5)(e)(iii)(A) shall
             180      conduct an updated municipal services study at least every four years.


             181          (iv) The requirement under Subsection (5)(e)(ii)(A)(II) to conduct a municipal services
             182      study does not apply to a municipality that:
             183          (A) imposed and collected a disproportionate rental fee on May 2, 2005 of $17 or less
             184      per unit per year:
             185          (B) does not increase the amount of its disproportionate rental fee; and
             186          (C) does not decrease the amount of its disproportionate rental fee reduction.
             187          (v) The fee limitation under Subsection (5)(e)(ii)(B) does not apply to a municipality
             188      that:
             189          (A) imposed and collected a disproportionate rental fee on May 2, 2005 that was $17 or
             190      less per unit per year;
             191          (B) does not increase the amount of its disproportionate rental fee; and
             192          (C) does not decrease the amount of its disproportionate rental fee reduction.
             193          (vi) Until May 2, 2012, the requirement under Subsection (5)(e)(ii)(A)(II) to conduct a
             194      municipal services study before imposing and collecting a disproportionate rental fee, does not
             195      apply to a municipality that:
             196          (A) on May 2, 2005, imposed and collected a disproportionate rental fee that exceeds
             197      $17 per unit per year;
             198          (B) had implemented, before January 1, 2005, a good landlord program;
             199          (C) does not decrease the amount of the disproportionate rental fee reduction; and
             200          (D) does not increase the amount of its disproportionate rental fee.
             201          (6) All license fees and taxes shall be uniform in respect to the class upon which they
             202      are imposed.
             203          (7) The municipality shall transmit the information from each approved business
             204      license application to the county assessor within 60 days following the approval of the
             205      application.
             206          (8) If challenged in court, an ordinance enacted by a municipality before January 1,
             207      1994, imposing a business license fee on rental dwellings under this section shall be upheld
             208      unless the business license fee is found to impose an unreasonable burden on the fee payer.
             209          Section 2. Section 17-53-216 is amended to read:
             210           17-53-216. Business license fees and taxes -- Documentation of lawful presence --
             211      Application information to be transmitted to the county assessor.


             212          (1) For the purpose of this section, "business" means [any] an enterprise carried on for
             213      the purpose of gain or economic profit, except that the acts of employees rendering services to
             214      employers are not included in this definition.
             215          (2) (a) The legislative body of a county may by ordinance provide for the licensing of
             216      businesses within the unincorporated areas of the county for the purpose of regulation and
             217      revenue.
             218          (b) In order to establish an applicant's lawful presence in the United States for the
             219      purpose of receiving a new business license under this chapter, the applicant shall provide the
             220      county business licensing agency with one of the following:
             221          (i) a copy of the applicant's valid driver license indicating the applicant's lawful
             222      presence in the United States;
             223          (ii) a copy of the applicant's birth certificate;
             224          (iii) a copy of the applicant's passport; or
             225          (iv) a copy of a valid work visa or similar document issued to the applicant by the
             226      United States government indicating the applicant's lawful presence in the United States.
             227          (c) Each applicant for a new license, a renewal of a license, or a replacement license
             228      shall execute and submit an affidavit to the county's business licensing agency, under penalty of
             229      perjury, stating that the applicant is a United States citizen or lawfully present in the United
             230      States.
             231          (d) Subsection (b) does not apply to an application for a renewal or replacement
             232      license.
             233          (e) If the business licensing agency provides for an electronic filing of an application
             234      for a new, renewal, or replacement license, then it may also provide for the electronic filing of:
             235          (i) verification documents required under Subsection (2)(b); and
             236          (ii) the affidavit required under Subsection (2)(c).
             237          (3) All license fees and taxes shall be uniform in respect to the class upon which they
             238      are imposed.
             239          (4) The county business licensing agency shall transmit the information from each
             240      approved business license application to the county assessor within 60 days following the
             241      approval of the application.
             242          (5) This section may not be construed to enhance, diminish, or otherwise alter the


             243      taxing power of counties existing prior to the effective date of Laws of Utah 1988, Chapter
             244      144.


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