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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 23, 2011

MEMBERS PRESENT:     Rep. Patrick Painter, Chair
                Rep. Carl Wimmer, Vice Chair
                Rep. Joel Briscoe                 
                 Rep. David Butterfield                      
                 Rep. David Clark
                Rep. Tim Cosgrove
                Rep. John Dougall                 
                Rep. Susan Duckworth
                Rep. Julie Fisher                  
                Rep. Gage Froerer
                Rep. Wayne Harper                          
                 Rep. Eric Hutchings                         
                Rep. Brian King
                Rep. Merlynn Newbold
                Rep. Jim Nielson
                                 
MEMBERS EXCUSED:     Rep. Mel Brown    


STAFF PRESENT:        Phil Dean, Policy Analyst
                Tamara Schaff, Committee Secretary
                    
Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Rep. Painter called the meeting to order at 8:06 a.m.

MOTION:    Rep. Newbold moved to approve the minutes of the February 18, 2011 meeting. The motion passed unanimously, with Rep. Clark, Rep. Cosgrove, Rep. Duckworth, Rep. Fisher, Rep. Froerer and Rep. Hutchings absent for the vote.


H.B. 156    Property Tax Assessment (Rep. D. Pitcher)

Rep. Pitcher explained the bill to the committee.

MOTION:    Rep. Wimmer moved to substitute H.B. 156 with 1st Substitute H.B. 156. The motion passed unanimously, with Rep. Clark, Rep. Cosgrove, Rep. Duckworth, Rep. Fisher, Rep. Froerer and Rep. Hutchings absent for the vote.


Spoke in favor of the bill:    Lee Gardner, Salt Lake County Assessor
                John Ulibarri, Weber County Assessor

MOTION:    Rep. Briscoe moved to pass H.B. 156 1st Substitute with a favorable recommendation. The motion passed, with Rep. Wimmer voting in opposition to the bill. Rep. Dougall and Rep. Harper were absent for the vote.



H.B. 316    Taxation of Surplus Lines of Insurance (Rep. T. Kiser)

Rep. Kiser explained the bill to the committee, assisted by Brad Tibbetts.

Spoke in favor of the bill:    Neal Gooch, Utah Insurance Commissioner
                Brad Tibbetts, Department of Insurance

MOTION:    Rep. Nielson moved to pass H.B. 316 with a favorable recommendation. The motion passed unanimously, with Rep. Dougall, Rep. Froerer, Rep. Harper and Rep. King absent for the vote.

MOTION:    Rep. Clark moved to place H.B. 316 on the Consent Calendar. The motion failed with Rep. Wimmer voting in opposition. Rep. Dougall, Rep. Froerer, Rep. Harper and Rep. King were absent for the vote.



H.B. 138    Federal Receipts Reporting Requirements (Rep. K. Ivory)

Rep. Ivory explained the bill to the committee with a slide presentation.

MOTION:    Rep. Clark moved to substitute H.B. 138 with 1st Substitute H.B. 138. The motion passed unanimously, with Rep. Dougall, Rep. Froerer, Rep. Harper, Rep. King and Rep. Wimmer absent for the vote.

MOTION:    Rep. Wimmer moved to amend the bill as follows:


1.    Page 3, Lines 75 through 80 :    

             75      higher education listed in Section 53B-2-101 .
             76          (b) The report required by Subsection (2) that the State Office of Education prepares
             77      shall include the information required by Subsections (2)(a) through (c) for each school
  district and each charter school       within


             78
     the public education system.
             79          (4) A designated state agency that prepares a report in accordance with Subsection (2)
             80      shall submit the report to the Division of Finance on or before November 1 of each year.


The motion passed unanimously, with Rep. Dougall, Rep. Duckworth, Rep. Froerer, Rep. Harper and Rep. King absent for the vote.


MOTION:    Rep. Hutchings moved to further amend the bill as follows:

1.    Page 1, Lines 11 through 20 :    

             11      receipts are reduced by
{   25% or more   }        certain amounts       , and requires the Government Operations and

             12      Political Subdivisions Interim Committee to study whether to apply federal receipts
             13      reporting requirements to certain other governmental entities.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines terms;
             17          .    requires certain state agencies to prepare and submit a report to the Division of
             18      Finance on federal receipts received by the state agencies;
             19          .    requires the report to contain a plan to operate the state agency in the event federal
             20      receipts are reduced by
{   25% or more   }        certain amounts       ;



2.    Page 3, Lines 71 through 75 :    

             71          (d)
{   develops a plan   }        develop plans       for operating the designated state agency if there is a reduction of        5%, and a reduction of      

             72      25% or more in the federal receipts that the designated state agency receives.
             73          (3) (a) The report required by Subsection (2) that the Board of Regents prepares shall
             74      include the information required by Subsections (2)(a) through (c) for each state institution of
             75      higher education listed in Section 53B-2-101 .




The motion passed unanimously, with Rep. Dougall, Rep. Duckworth, Rep. Harper and Rep. King absent for the vote.

Spoke in favor of the bill:    Martell Menlove, Deputy Superintendent of State Education
                John Reidhead, State Division of Finance

MOTION:    Rep. Wimmer moved to pass H.B. 138 1st Substitute with a favorable recommendation. The motion passed with Rep. Briscoe and Rep. Nielson voting in opposition to the bill. Rep. Dougall, Rep. Fisher, Rep. Harper and Rep. King were absent for the vote.


H.B. 124    Commercial Breeders (Rep. J. Biskupski)

Rep. Biskupski explained the bill to the committee.

MOTION:    Rep. Briscoe moved to amend the bill as follows:


1.    Page 1, Line 20 :    

             20              .    a county
{   assessor   }        business licensing agency       to file with the State Tax Commission and a county animal


2.    Page 5, Lines 142 through 144 :    

             142          (3) (a) The
{   county assessor   }        county business licensing agency       of a county that issues a commercial breeder a business

             143      license as described in Subsection (2)(a) shall report, in accordance with Subsection (3)(b), to
             144      the State Tax Commission and a county animal control office, if any:

3.    Page 5, Line 149 :    

             149          (b) The
{   county assessor   }        county business licensing agency       shall file the report described in Subsection (3)(a):


The motion passed unanimously, with Rep. Dougall, Rep. Fisher, Rep. Harper, and Rep. King absent for the vote.

MOTION:    Rep. Clark moved to further amend the bill as follows:




1.    Page 4, Lines 115 through 117 :    

             115      established under Section 10-17-102 .
             116          (8) A person who knowingly violates Subsection (2) or (6)(a) is guilty of a class
{   A   }        B      

             117      misdemeanor.


2.    Page 6, Lines 172 through 174 :    

             172          (c) a dog or cat kept by an animal shelter established under Section 17-42-102 .
             173          (8) A person who knowingly violates Subsection (2) or (6)(a) is guilty of a class
{   A   }        B      

             174      misdemeanor.

The motion passed unanimously, with Rep. Dougall, Rep. Fisher, Rep. Harper and Rep. King absent for the vote.

MOTION:    Rep. Cosgrove moved to pass H.B. 124 with a favorable recommendation. The motion failed, with Rep. Briscoe, Rep. Cosgrove, Rep. Duckworth, Rep. Froerer, and Rep. Painter voting in favor. Voting in opposition to motion were Rep. Butterfield, Rep. Clark, Rep. Hutchings, Rep. Newbold, Rep. Nielson and Rep. Wimmer. Rep. Dougall, Rep. Fisher, Rep. Harper and Rep. King were absent for the vote.

MOTION:    Rep. Wimmer moved to adjourn. The motion passed unanimously with Rep. Dougall, Rep. Fisher, Rep. Harper and Rep. King absent for the vote.



S.B. 132    Sales and Use Tax Exemption for an Energy Efficient Stove or Energy Efficient Stove Fuel (Sen. G. Davis) (Rep. M. Brown)


This bill was not considered.



                            __________________________
                            Rep. Patrick Painter, Chair