H.B. 177 Enrolled

1

CANINE BODY ARMOR RESTRICTED ACCOUNT AND
2 INCOME TAX CONTRIBUTION
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Richard A. Greenwood
6 Senate Sponsor: Ralph Okerlund
7 Cosponsors:
8 Patrice M. Arent
9 Jackie Biskupski
10 David G. Butterfield
11 Brad L. Dee
12 Steve Eliason
13 Brad J. Galvez
14 Keith GroverLynn N. Hemingway
Eric K. Hutchings
Ken Ivory
David Litvack
John G. Mathis
Curtis Oda
Lee B. Perry
Paul RayStephen E. Sandstrom
Jennifer M. Seelig
Mark A. Wheatley
Ryan D. Wilcox
Larry B. Wiley
Carl Wimmer 15
16 LONG TITLE
17 General Description:
18 This bill amends the Public Safety Code and the Individual Income Tax Act to enact the
19 Canine Body Armor Restricted Account and provide an income tax contribution for
20 canine body armor.
21 Highlighted Provisions:
22 This bill:
23 . enacts a chapter within the Public Safety Code to:
24 . create the Canine Body Armor Restricted Account;
25 . address the administration of the Canine Body Armor Restricted Account;
26 . address the distribution of amounts deposited into the Canine Body Armor
27 Restricted Account; and
28 . grant rulemaking authority to the Department of Public Safety;

29 . includes the Canine Body Armor Restricted Account on the list of nonlapsing funds
30 and accounts;
31 . repeals obsolete language;
32 . enacts an individual income tax contribution for canine body armor;
33 . provides that if the collections from the contribution do not meet a certain threshold
34 amount, the State Tax Commission shall remove the designation for the
35 contribution from the individual income tax return and may not collect the
36 contribution; and
37 . makes technical and conforming changes.
38 Money Appropriated in this Bill:
39 None
40 Other Special Clauses:
41 This bill provides an effective date.
42 This bill has retrospective operation for a taxable year beginning on or after January 1,
43 2011.
44 Utah Code Sections Affected:
45 AMENDS:
46 59-10-1304, as last amended by Laws of Utah 2009, Chapter 17
47 63J-1-602.3, as enacted by Laws of Utah 2010, Chapter 265
48 ENACTS:
49 53-16-101, Utah Code Annotated 1953
50 53-16-102, Utah Code Annotated 1953
51 53-16-201, Utah Code Annotated 1953
52 53-16-301, Utah Code Annotated 1953
53 53-16-302, Utah Code Annotated 1953
54 59-10-1315, Utah Code Annotated 1953
55
56 Be it enacted by the Legislature of the state of Utah:

57 Section 1. Section 53-16-101 is enacted to read:
58 CHAPTER 16. CANINE BODY ARMOR RESTRICTED ACCOUNT ACT
59 Part 1. General Provisions
60 53-16-101. Title.
61 This chapter is known as the "Canine Body Armor Restricted Account Act."
62 Section 2. Section 53-16-102 is enacted to read:
63 53-16-102. Definitions.
64 (1) "Canine body armor" means a product:
65 (a) sold or offered for sale as personal protective body covering; and
66 (b) that is intended to protect a police service canine against gunfire, regardless of
67 whether the product is to be worn alone or is sold as a complement to another product or
68 garment.
69 (2) "Police service canine" means a dog that:
70 (a) is used by a law enforcement agency;
71 (b) is specially trained or is in training for law enforcement work; and
72 (c) assists a law enforcement agency in the performance of law enforcement duties.
73 Section 3. Section 53-16-201 is enacted to read:
74 Part 2. Canine Body Armor Restricted Account
75 53-16-201. Canine Body Armor Restricted Account -- Creation -- Interest.
76 (1) There is created within the General Fund a restricted account known as the "Canine
77 Body Armor Restricted Account."
78 (2) The restricted account shall be funded by the following amounts:
79 (a) contributions deposited into the restricted account in accordance with Section
80 59-10-1315 ;
81 (b) private contributions;
82 (c) donations or grants from public or private entities;
83 (d) amounts received in accordance with Subsection 53-16-301 (9); and
84 (e) interest described in Subsection (3).

85 (3) (a) The restricted account shall earn interest.
86 (b) Interest earned on the restricted account shall be deposited into the restricted
87 account.
88 (4) The commissioner shall distribute money appropriated by the Legislature to the
89 department from the restricted account as provided in Section 53-16-301 .
90 Section 4. Section 53-16-301 is enacted to read:
91 Part 3. Distribution of Amounts in Canine Body Armor Restricted Account
92 53-16-301. Commissioner to distribute amounts deposited into Canine Body
93 Armor Restricted Account -- Procedures for distribution.
94 (1) Subject to the other provisions of this section, the commissioner shall distribute
95 amounts deposited into the restricted account in accordance with Section 53-16-201 to one or
96 more law enforcement agencies.
97 (2) A law enforcement agency that receives a distribution from the commissioner in
98 accordance with Subsection (1) shall expend the distribution only to purchase canine body
99 armor for one or more police service canines.
100 (3) In accordance with any rules the department makes as authorized under Section
101 53-16-302 , each year a law enforcement agency may apply to the commissioner to receive a
102 distribution under this section by filing an application with the department:
103 (a) on or before November 1; and
104 (b) on a form provided by the department.
105 (4) The application:
106 (a) shall include:
107 (i) information required by the department establishing that the law enforcement
108 agency intends to expend the distribution to purchase canine body armor for one or more police
109 service canines;
110 (ii) a written cost estimate prepared by the seller of the canine body armor of the cost
111 of the canine body armor the law enforcement agency seeks to purchase;
112 (iii) information required by the department establishing that each police service canine

113 for which the law enforcement agency seeks to purchase canine body armor:
114 (A) is owned by and in the possession of the law enforcement agency;
115 (B) is specially trained or is in training for law enforcement work;
116 (C) assists or will assist a law enforcement agency in the performance of law
117 enforcement duties; and
118 (D) has been trained by or is training with a law enforcement officer who is qualified to
119 train a police service canine; and
120 (iv) information required by the department establishing that the law enforcement
121 agency has a vehicle to transport each police service canine for which the law enforcement
122 agency seeks to purchase canine body armor; and
123 (b) may include other information the department requires by rule.
124 (5) The department shall determine on or before the November 30 immediately
125 following the November 1 described in Subsection (3) whether a law enforcement agency's
126 application to the department meets the requirements of Subsection (4).
127 (6) Subject to Subsections (7) and (8), the commissioner shall distribute money
128 appropriated by the Legislature to the department from the restricted account to one or more
129 law enforcement agencies that meet the requirements of Subsection (4):
130 (a) in a total amount that does not exceed the money appropriated by the Legislature to
131 the department from the restricted account;
132 (b) on or before the December 31 immediately following the November 1 described in
133 Subsection (3); and
134 (c) in an amount that for a calendar year for each law enforcement agency described in
135 this Subsection (6) does not exceed the lesser of:
136 (i) $3,000; or
137 (ii) the amount listed on the written cost estimate described in Subsection (4)(a)(ii).
138 (7) If the total amount of distributions law enforcement agencies seek under this
139 section exceeds the money appropriated by the Legislature to the department from the restricted
140 account, the commissioner shall make the distributions required by this section in the order of

141 the date each law enforcement agency files the application required by Subsection (3) with the
142 department until the appropriation from the restricted account is expended.
143 (8) If the total amount of distributions the commissioner makes under Subsection (6) is
144 less than the money appropriated by the Legislature to the department from the restricted
145 account, the commissioner shall make an additional distribution to one or more law
146 enforcement agencies:
147 (a) that:
148 (i) meet the requirements of Subsection (4); and
149 (ii) provide a written cost estimate described in Subsection (4)(a)(ii) to the department
150 that exceeds $3,000;
151 (b) in an amount that for a calendar year for each law enforcement agency described in
152 this Subsection (8) does not exceed the lesser of:
153 (i) $3,000; or
154 (ii) the difference between the amount listed on the written cost estimate described in
155 Subsection (4)(a)(ii) and $3,000;
156 (c) in the order of the date each law enforcement agency files the application required
157 by Subsection (3) with the department; and
158 (d) until the sooner of:
159 (i) the date each law enforcement agency described in this Subsection (8) receives an
160 additional distribution of not to exceed the amount described in Subsection (8)(b); or
161 (ii) the date the appropriation from the restricted account is expended.
162 (9) If a law enforcement agency that receives a distribution under this section does not
163 expend the distribution to purchase canine body armor within 90 days after the date the law
164 enforcement agency receives the distribution:
165 (a) the law enforcement agency shall return the distribution to the department; and
166 (b) the department shall deposit the distribution a law enforcement agency returns in
167 accordance with Subsection (9)(a) into the restricted account.
168 Section 5. Section 53-16-302 is enacted to read:

169 53-16-302. Department rulemaking authority.
170 In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
171 department may make rules consistent with Section 53-16-301 prescribing information that a
172 law enforcement agency shall include with an application under Section 53-16-301 .
173 Section 6. Section 59-10-1304 is amended to read:
174 59-10-1304. Removal of designation and prohibitions on collection for certain
175 contributions on income tax return -- Conditions for removal and prohibitions on
176 collection -- Commission reporting requirements.
177 (1) (a) If a contribution or combination of contributions described in Subsection (1)(b)
178 generate less than $30,000 per year for three consecutive years, the commission shall remove
179 the designation for the contribution from the individual income tax return and may not collect
180 the contribution from a resident or nonresident individual beginning two taxable years after the
181 three-year period for which the contribution generates less than $30,000 per year.
182 (b) The following contributions apply to Subsection (1)(a):
183 (i) the contribution provided for in Section 59-10-1305 ;
184 (ii) the contribution provided for in Section 59-10-1306 ;
185 (iii) the sum of the contributions provided for in Subsection 59-10-1307 (1);
186 (iv) the contribution provided for in Section 59-10-1308 ; [or]
187 (v) the contribution provided for in Section 59-10-1310 [.]; or
188 (vi) the contribution provided for in Section 59-10-1315 .
189 (2) If the commission removes the designation for a contribution under Subsection (1),
190 the commission shall report to the Revenue and Taxation Interim Committee that the
191 commission removed the designation on or before the November interim meeting of the year in
192 which the commission determines to remove the designation.
193 Section 7. Section 59-10-1315 is enacted to read:
194 59-10-1315. Contribution to Canine Body Armor Restricted Account.
195 (1) Except as provided in Section 59-10-1304 , for a taxable year beginning on or after
196 January 1, 2011, a resident or nonresident individual that files an individual income tax return

197 under this chapter may designate on the resident or nonresident individual's individual income
198 tax return a contribution as provided in this section to be:
199 (a) deposited into the Canine Body Armor Restricted Account created in Section
200 53-16-201 ; and
201 (b) expended as provided in Title 53, Chapter 16, Canine Body Armor Restricted
202 Account Act.
203 (2) The commission shall:
204 (a) determine the total amount of contributions designated in accordance with this
205 section for a taxable year; and
206 (b) credit the amount described in Subsection (2)(a) to the Canine Body Armor
207 Restricted Account created in Section 53-16-201 .
208 Section 8. Section 63J-1-602.3 is amended to read:
209 63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
210 (1) Certain funds associated with the Law Enforcement Operations Account, as
211 provided in Section 51-9-411 .
212 (2) The Public Safety Honoring Heroes Restricted Account created in Section
213 53-1-118 .
214 (3) Funding for the Search and Rescue Financial Assistance Program, as provided in
215 Section 53-2-107 .
216 (4) Appropriations made to the Department of Public Safety from the Department of
217 Public Safety Restricted Account, as provided in Section 53-3-106 .
218 (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
219 53-3-905 .
220 (6) The DNA Specimen Restricted Account created in Section 53-10-407 .
221 (7) The Canine Body Armor Restricted Account created in Section 53-16-201 .
222 [(7)] (8) Appropriations to the State Board of Education, as provided in Section
223 53A-17a-105 .
224 [(8)] (9) Certain funds appropriated from the Uniform School Fund to the State Board

225 of Education for new teacher bonus and performance-based compensation plans, as provided in
226 Section 53A-17a-148 .
227 [(9) Certain funds appropriated from the Uniform School Fund to the State Board of
228 Education for implementation of proposals to improve mathematics achievement test scores, as
229 provided in Section 53A-17a-152 .]
230 (10) The School Building Revolving Account created in Section 53A-21-401 .
231 (11) Money received by the State Office of Rehabilitation for the sale of certain
232 products or services, as provided in Section 53A-24-105 .
233 (12) The State Board of Regents, as provided in Section 53B-6-104 .
234 (13) Certain funds appropriated from the General Fund to the State Board of Regents
235 for teacher preparation programs, as provided in Section 53B-6-104 .
236 (14) A certain portion of money collected for administrative costs under the School
237 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 .
238 (15) Certain surcharges on residence and business telecommunications access lines
239 imposed by the Public Service Commission, as provided in Section 54-8b-10 .
240 (16) Certain fines collected by the Division of Occupational and Professional Licensing
241 for violation of unlawful or unprofessional conduct that are used for education and enforcement
242 purposes, as provided in Section 58-17b-505 .
243 (17) The Nurse Education and Enforcement Account created in Section 58-31b-103 .
244 (18) The Certified Nurse Midwife Education and Enforcement Account created in
245 Section 58-44a-103 .
246 (19) Certain fines collected by the Division of Occupational and Professional Licensing
247 for use in education and enforcement of the Security Personnel Licensing Act, as provided in
248 Section 58-63-103 .
249 (20) The Professional Geologist Education and Enforcement Account created in
250 Section 58-76-103 .
251 (21) Certain money in the Water Resources Conservation and Development Fund, as
252 provided in Section 59-12-103 .

253 Section 9. Retrospective operation -- Effective date.
254 (1) The amendments to Section 59-10-1304 have retrospective operation for a taxable
255 year beginning on or after January 1, 2011.
256 (2) The enactment of Section 59-10-1315 has retrospective operation for a taxable year
257 beginning on or after January 1, 2011.
258 (3) The amendments to Section 63J-1-602.3 take effect on May 10, 2011.
259 (4) The enactments of the following sections take effect on May 10, 2011:
260 (a) Section 53-16-101 ;
261 (b) Section 53-16-102 ;
262 (c) Section 53-16-201 ;
263 (d) Section 53-16-301 ; and
264 (e) Section 53-16-302 .