H.B. 227

1

LICENSING ELIGIBILITY
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen E. Sandstrom
5 Senate Sponsor: ____________
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 business license issued by a municipality or a county to
14 provide the municipality's or county's business licensing agency with documentation
15 of the applicant's lawful presence in the United States; and
16 . requires an applicant for a license issued by the Division of Occupational and
17 Professional Licensing to provide the division with an affidavit stating that the
18 applicant is a citizen or lawfully present in the United States.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 10-1-203, as last amended by Laws of Utah 2009, Chapter 189
26 17-53-216, as last amended by Laws of Utah 2008, Chapter 250
27 58-1-301, as last amended by Laws of Utah 2008, Chapter 382

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

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

90 (I) $1 per vehicle that parks at the parking service business; or
91 (II) 2% of the gross receipts of the parking service business;
92 (B) a public assembly or other related facility in an amount that is less than or equal to
93 $5 per ticket purchased from the public assembly or other related facility; and
94 (C) subject to the limitations of Subsections (5)(c), (d), and (e), a business:
95 (I) that causes disproportionate costs of municipal services; or
96 (II) for which the municipality provides an enhanced level of municipal services.
97 (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
98 levy or collect a license fee or tax on a public assembly or other related facility owned and
99 operated by another political subdivision other than a community development and renewal
100 agency without the written consent of the other political subdivision.
101 (b) As used in this Subsection (5):
102 (i) "Municipal services" includes:
103 (A) public utilities; and
104 (B) services for:
105 (I) police;
106 (II) fire;
107 (III) storm water runoff;
108 (IV) traffic control;
109 (V) parking;
110 (VI) transportation;
111 (VII) beautification; or
112 (VIII) snow removal.
113 (ii) "Parking service business" means a business:
114 (A) that primarily provides off-street parking services for a public facility that is
115 wholly or partially funded by public moneys;
116 (B) that provides parking for one or more vehicles; and
117 (C) that charges a fee for parking.
118 (iii) "Public assembly or other related facility" means an assembly facility that:
119 (A) is wholly or partially funded by public moneys;
120 (B) is operated by a business; and

121 (C) requires a person attending an event at the assembly facility to purchase a ticket.
122 (c) (i) Before the legislative body of a municipality imposes a license fee on a business
123 that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
124 legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
125 under Subsection (5)(a)(i)(C)(I):
126 (A) the costs that constitute disproportionate costs; and
127 (B) the amounts that are reasonably related to the costs of the municipal services
128 provided by the municipality.
129 (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
130 the costs of the municipal services provided by the municipality.
131 (d) (i) Before the legislative body of a municipality imposes a license fee on a business
132 for which it provides an enhanced level of municipal services under Subsection (5)(a)(i)(C)(II),
133 the legislative body of the municipality shall adopt an ordinance defining for purposes of the
134 fee under Subsection (5)(a)(i)(C)(II):
135 (A) the level of municipal services that constitutes the basic level of municipal services
136 in the municipality; and
137 (B) the amounts that are reasonably related to the costs of providing an enhanced level
138 of municipal services in the municipality.
139 (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
140 the costs of providing an enhanced level of the municipal services.
141 (e) (i) As used in this Subsection (5)(e):
142 (A) "Disproportionate rental fee" means a license fee on rental housing based on the
143 disproportionate costs of municipal services caused by the rental housing or on an enhanced
144 level of municipal services provided to the rental housing.
145 (B) "Disproportionate rental fee reduction" means a reduction of a disproportionate
146 rental fee as a condition of complying with the requirements of a good landlord program.
147 (C) "Good landlord program" means a program established by a municipality that
148 provides a reduction in a disproportionate rental fee for a landlord who:
149 (I) completes a landlord training program approved by the municipality;
150 (II) implements measures to reduce crime in rental housing as specified in municipal
151 ordinances; and

152 (III) operates and manages rental housing in accordance with applicable municipal
153 ordinances.
154 (D) "Municipal services study" means a study, or an updated study, conducted by a
155 municipality of the cost of all municipal services that the municipality provides to the
156 applicable rental housing.
157 (E) "Rental housing cost" means the municipality's cost:
158 (I) of providing municipal services to the rental housing;
159 (II) that is reasonably attributable to the rental housing; and
160 (III) that would not have occurred in the absence of the rental housing.
161 (ii) A municipality may impose and collect a disproportionate rental fee if:
162 (A) the municipality:
163 (I) adopts the ordinances required under Subsections (5)(c) and (d), as applicable;
164 (II) conducts a municipal services study;
165 (III) updates the municipal services study:
166 (Aa) before increasing the amount of the disproportionate rental fee; and
167 (Bb) before decreasing the amount of the disproportionate rental fee reduction; and
168 (IV) establishes a good landlord program; and
169 (B) the disproportionate rental fee does not exceed the rental housing cost, as
170 determined by the municipal services study.
171 (iii) (A) The requirement under Subsection (5)(e)(ii)(A)(IV) to establish a good
172 landlord program does not apply to a municipality that imposed and collected a
173 disproportionate rental fee on January 1, 2009.
174 (B) A municipality claiming an exemption under Subsection (5)(e)(iii)(A) shall
175 conduct an updated municipal services study at least every four years.
176 (iv) The requirement under Subsection (5)(e)(ii)(A)(II) to conduct a municipal services
177 study does not apply to a municipality that:
178 (A) imposed and collected a disproportionate rental fee on May 2, 2005 of $17 or less
179 per unit per year:
180 (B) does not increase the amount of its disproportionate rental fee; and
181 (C) does not decrease the amount of its disproportionate rental fee reduction.
182 (v) The fee limitation under Subsection (5)(e)(ii)(B) does not apply to a municipality

183 that:
184 (A) imposed and collected a disproportionate rental fee on May 2, 2005 that was $17 or
185 less per unit per year;
186 (B) does not increase the amount of its disproportionate rental fee; and
187 (C) does not decrease the amount of its disproportionate rental fee reduction.
188 (vi) Until May 2, 2012, the requirement under Subsection (5)(e)(ii)(A)(II) to conduct a
189 municipal services study before imposing and collecting a disproportionate rental fee, does not
190 apply to a municipality that:
191 (A) on May 2, 2005, imposed and collected a disproportionate rental fee that exceeds
192 $17 per unit per year;
193 (B) had implemented, before January 1, 2005, a good landlord program;
194 (C) does not decrease the amount of the disproportionate rental fee reduction; and
195 (D) does not increase the amount of its disproportionate rental fee.
196 (6) All license fees and taxes shall be uniform in respect to the class upon which they
197 are imposed.
198 (7) The municipality shall transmit the information from each approved business
199 license application to the county assessor within 60 days following the approval of the
200 application.
201 (8) If challenged in court, an ordinance enacted by a municipality before January 1,
202 1994, imposing a business license fee on rental dwellings under this section shall be upheld
203 unless the business license fee is found to impose an unreasonable burden on the fee payer.
204 Section 2. Section 17-53-216 is amended to read:
205 17-53-216. Business license fees and taxes -- Documentation of lawful presence --
206 Application information to be transmitted to the county assessor.
207 (1) For the purpose of this section, "business" means [any] an enterprise carried on for
208 the purpose of gain or economic profit, except that the acts of employees rendering services to
209 employers are not included in this definition.
210 (2) (a) The legislative body of a county may by ordinance provide for the licensing of
211 businesses within the unincorporated areas of the county for the purpose of regulation and
212 revenue.
213 (b) In order to establish an applicant's lawful presence in the United States for the

214 purpose of receiving a business license under this chapter, the applicant shall provide the
215 county business licensing agency with one of the following:
216 (i) a copy of the applicant's valid driver license indicating the applicant's lawful
217 presence in the United States;
218 (ii) a copy of the applicant's birth certificate;
219 (iii) a copy of the applicant's passport; or
220 (iv) a copy of a valid work visa or similar document issued to the applicant by the
221 United States government indicating the applicant's lawful presence in the United States.
222 (c) Each license applicant shall execute and submit an affidavit to the county's business
223 licensing agency, under penalty of perjury, stating that the applicant is a United States citizen
224 or lawfully present in the United States.
225 (3) All license fees and taxes shall be uniform in respect to the class upon which they
226 are imposed.
227 (4) The county business licensing agency shall transmit the information from each
228 approved business license application to the county assessor within 60 days following the
229 approval of the application.
230 (5) This section may not be construed to enhance, diminish, or otherwise alter the
231 taxing power of counties existing prior to the effective date of Laws of Utah 1988, Chapter
232 144.
233 Section 3. Section 58-1-301 is amended to read:
234 58-1-301. License application -- Documentation of lawful presence -- Licensing
235 procedure.
236 (1) (a) (i) Each new license applicant shall apply to the division [in writing] upon
237 forms available from the division.
238 (ii) Each completed application shall:
239 (A) contain documentation of the particular qualifications required of the applicant[,
240 shall];
241 (B) include the applicant's Social Security number[, shall];
242 (C) be verified by the applicant[,]; and [shall]
243 (D) be accompanied by the appropriate fees.
244 (b) An applicant's Social Security number is a private record under Subsection

245 63G-2-302 (1)(h).
246 (c) Each license applicant shall execute and submit an affidavit to the division, under
247 penalty of perjury, stating that the applicant is a United States citizen or lawfully present in the
248 United States.
249 (2) (a) [A] The division shall issue a license [shall be issued] to an applicant who
250 submits a complete application if the division determines that the applicant meets the
251 qualifications of licensure.
252 (b) [A] The division shall provide a written notice of additional proceedings [shall be
253 provided] to an applicant who submits a complete application, but who has been, is, or will be
254 placed under investigation by the division for conduct directly bearing upon the applicant's
255 qualifications for licensure, if the outcome of additional proceedings is required to determine
256 the division's response to the application.
257 (c) [A] The division shall provide a written notice of denial of licensure [shall be
258 provided] to an applicant who submits a complete application if the division determines that
259 the applicant does not meet the qualifications of licensure.
260 (d) [A] (i) The division shall provide a written notice of incomplete application and
261 conditional denial of licensure [shall be provided] to an applicant who submits an incomplete
262 application. [This]
263 (ii) The notice shall advise the applicant that the application is incomplete and that the
264 application is denied, unless the applicant corrects the deficiencies within the time period
265 specified in the notice and otherwise meets all qualifications for licensure.
266 (3) Before [any person] an applicant is issued a license under this title, all requirements
267 for that license as established under this title and by rule shall be met.
268 (4) If all requirements are met for the specific license, the division shall issue the
269 license.




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as of 1-14-10 10:34 AM

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