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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.


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