S.B. 12 Enrolled

1

INDIVIDUAL INCOME TAX CONTRIBUTION
2 FOR METHAMPHETAMINE HOUSING
3 RECONSTRUCTION AND REHABILITATION
4 FUND
5 2010 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
19 Act;
20 . creates a restricted account known as the Methamphetamine Housing
21 Reconstruction and Rehabilitation Fund;
22 . enacts an individual income tax contribution for the Methamphetamine Housing
23 Reconstruction and Rehabilitation Fund for a taxable year beginning on or after
24 January 1, 2010, but beginning on or before December 31, 2012;
25 . provides that monies received from the income tax contribution shall be deposited
26 into the Methamphetamine Housing Reconstruction and Rehabilitation Fund and
27 expended by a qualified housing organization to:
28 . reconstruct or rehabilitate residences contaminated by methamphetamine; or
29 . purchase property upon which a residence contaminated by methamphetamine

30 is reconstructed or rehabilitated;
31 . grants rulemaking authority to the Division of Housing and Community
32 Development; and
33 . makes technical changes.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 This bill has retrospective operation for a taxable year beginning on or after January 1,
38 2010.
39 Utah Code Sections Affected:
40 ENACTS:
41 9-4-1501, Utah Code Annotated 1953
42 9-4-1502, Utah Code Annotated 1953
43 9-4-1503, Utah Code Annotated 1953
44 59-10-1314, Utah Code Annotated 1953
45
46 Be it enacted by the Legislature of the state of Utah:
47 Section 1. Section 9-4-1501 is enacted to read:
48 Part 15. Methamphetamine Housing Reconstruction and
49 Rehabilitation Fund Act
50 9-4-1501. Title.
51 This part is known as the "Methamphetamine Housing Reconstruction and
52 Rehabilitation Fund Act."
53 Section 2. Section 9-4-1502 is enacted to read:
54 9-4-1502. Definitions.
55 As used in this part:
56 (1) "Contaminated by methamphetamine" means that a residence is:
57 (a) polluted by hazardous materials as a result of the use, production, or presence of

58 methamphetamine in excess of decontamination standards adopted by the Department of
59 Health under Section 26-51-201 ; and
60 (b) placed on a contamination list by a local health department in accordance with
61 Section 19-6-903 .
62 (2) "Fund" means the Methamphetamine Housing Reconstruction and Rehabilitation
63 Fund created in Section 9-4-1503 .
64 (3) "Qualified housing organization" means an affiliate located in this state of an
65 organization if that organization:
66 (a) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
67 Code;
68 (b) operates on a worldwide basis;
69 (c) has the primary purposes of:
70 (i) constructing, reconstructing, and rehabilitating residences that are:
71 (A) sold to low-income persons selected by the organization in accordance with any
72 rules the division makes as authorized by Section 9-4-1503 ; and
73 (B) financed with loans that are not subject to interest as determined by the
74 organization in accordance with any rules the division makes as authorized by Section
75 9-4-1503 ; and
76 (ii) purchasing property upon which residences described in Subsection (3)(c)(i) are
77 constructed, reconstructed, or rehabilitated;
78 (d) expends a portion of the repayment on the loans described in Subsection
79 (3)(c)(i)(B) to finance:
80 (i) the construction, reconstruction, and rehabilitation of residences described in
81 Subsection (3)(c)(i); and
82 (ii) the purchase of property upon which residences described in Subsection (3)(c)(i)
83 are constructed, reconstructed, or rehabilitated; and
84 (e) has built more than 250,000 residences in total.
85 (4) (a) "Residence" means a single-family residence.

86 (b) "Residence" includes:
87 (i) a condominium;
88 (ii) a garage;
89 (iii) real property appurtenant to a residence:
90 (A) as determined by the division in accordance with any rules the division makes as
91 authorized by Section 9-4-1503 ; and
92 (B) if that real property is contaminated by methamphetamine;
93 (iv) a shed; or
94 (v) a town home.
95 (c) "Residence" does not include:
96 (i) an apartment or other rental unit as determined by the division in accordance with
97 any rules the division makes as authorized by Section 9-4-1503 ; or
98 (ii) an outbuilding except for a garage or shed.
99 Section 3. Section 9-4-1503 is enacted to read:
100 9-4-1503. Methamphetamine Housing Reconstruction and Rehabilitation Fund --
101 Creation -- Interest -- Use of contributions and interest.
102 (1) There is created within the General Fund a restricted account known as the
103 Methamphetamine Housing Reconstruction and Rehabilitation Fund.
104 (2) The fund shall be funded by:
105 (a) contributions deposited into the fund in accordance with Section 59-10-1314 ; and
106 (b) interest described in Subsection (3).
107 (3) (a) The fund shall earn interest.
108 (b) Interest earned on the fund shall be deposited into the fund.
109 (4) (a) The division shall distribute contributions and interest deposited into the fund
110 to one or more qualified housing organizations.
111 (b) (i) Subject to Subsection (4)(b)(ii), a qualified housing organization that receives a
112 distribution from the division in accordance with Subsection (4)(a) shall expend the
113 distribution to:

114 (A) reconstruct or rehabilitate one or more residences that are:
115 (I) sold to low-income persons selected by the qualified housing organization in
116 accordance with any rules the division makes as authorized by this section; and
117 (II) financed with loans that are not subject to interest as determined by the qualified
118 housing organization in accordance with any rules the division makes as authorized by this
119 section; or
120 (B) purchase property upon which a residence described in Subsection (4)(b)(i)(A) is
121 reconstructed or rehabilitated.
122 (ii) A qualified housing organization may not expend a distribution the qualified
123 housing organization receives in accordance with this Subsection (4) for any administrative
124 cost relating to an expenditure authorized by Subsection (4)(b)(i).
125 (5) (a) In accordance with any rules the division makes as authorized under Subsection
126 (6)(c), a qualified housing organization may apply to the division to receive a distribution
127 under Subsection (4).
128 (b) A qualified housing organization may apply to the division to receive a distribution
129 under Subsection (4) by filing an application with the division:
130 (i) on or before November 1; and
131 (ii) on a form provided by the division.
132 (c) The application:
133 (i) shall include information required by the division establishing that the qualified
134 housing organization owns each residence with respect to which the qualified housing
135 organization plans to expend a distribution under Subsection (4);
136 (ii) shall include information required by the division establishing the qualified
137 housing organization's plan to expend the distribution for a purpose described in Subsection
138 (4)(b)(i);
139 (iii) shall include information required by the division establishing that the qualified
140 housing organization's plan to expend the distribution meets conditions established in
141 accordance with Title 19, Chapter 6, Part 9, Illegal Drug Operations Site Reporting and

142 Decontamination Act, for a local health department to remove the residence from the local
143 health department's decontamination list; and
144 (iv) may include other information the division requires by rule.
145 (d) The division shall determine on or before the November 30 immediately following
146 the November 1 described in Subsection (5)(b) whether a qualified housing organization's
147 application to the division meets the requirements of Subsection (5)(c).
148 (e) (i) The division shall distribute monies credited to the fund to each qualified
149 housing organization that meets the requirements of Subsection (5)(c) as determined by the
150 division:
151 (A) on or before the December 31 immediately following the November 1 described in
152 Subsection (5)(b); and
153 (B) in accordance with this Subsection (5)(e).
154 (ii) The division shall determine:
155 (A) the population of the county in which a qualified housing organization that meets
156 the requirements of Subsection (5)(c) is headquartered; and
157 (B) the total population of all of the counties in which the qualified housing
158 organizations that meet the requirements of Subsection (5)(c) are headquartered.
159 (iii) Except as provided in Subsection (5)(e)(iv), the division shall determine a
160 qualified housing organization's distribution by making the following calculation:
161 (A) calculating a percentage determined by dividing the population of the county in
162 which the qualified housing organization that meets the requirements of Subsection (5)(c) is
163 headquartered by the population calculated under Subsection (5)(e)(ii)(B); and
164 (B) multiplying the percentage determined under Subsection (5)(e)(iii)(A) by the fund
165 balance.
166 (iv) If two or more qualified housing organizations that meet the requirements of
167 Subsection (5)(c) as determined by the division are headquartered within one county, the
168 division shall determine each qualified housing organization's distribution by:
169 (A) making the calculation required by Subsection (5)(e)(iii); and

170 (B) dividing the amount calculated under Subsection (5)(e)(iii) by the number of
171 qualified housing organizations that meet the requirements of Subsection (5)(c) as determined
172 by the division that are headquartered within the county.
173 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
174 the division may make rules:
175 (a) to define what constitutes:
176 (i) a low-income person;
177 (ii) a loan that is not subject to interest; or
178 (iii) an apartment or other rental unit;
179 (b) for determining the circumstances under which real property is appurtenant to a
180 residence;
181 (c) prescribing information a qualified housing organization is required to include
182 with an application under Subsection (5);
183 (d) for purposes of Subsection (5)(e), for determining the population of a county; or
184 (e) for determining the county in which a qualified housing organization is
185 headquartered.
186 Section 4. Section 59-10-1314 is enacted to read:
187 59-10-1314. Contribution to Methamphetamine Housing Reconstruction and
188 Rehabilitation Fund.
189 (1) For a taxable year beginning on or after January 1, 2010, but beginning on or
190 before December 31, 2012 only, a resident or nonresident individual that files an individual
191 income tax return under this chapter may designate on the resident or nonresident individual's
192 individual income tax return a contribution as provided in this section to be:
193 (a) deposited into the Methamphetamine Housing Reconstruction and Rehabilitation
194 Fund created in Section 9-4-1503 ; and
195 (b) expended for the purposes described in Section 9-4-1503 .
196 (2) The commission shall:
197 (a) determine the total amount of contributions designated in accordance with this

198 section for the taxable year described in Subsection (1); and
199 (b) credit the amount described in Subsection (2)(a) to the Methamphetamine Housing
200 Reconstruction and Rehabilitation Fund created in Section 9-4-1503 .
201 Section 5. Retrospective operation.
202 This bill has retrospective operation for a taxable year beginning on or after January 1,
203 2010.