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H.B. 478





Chief Sponsor: Brad L. Dee

Senate Sponsor: Wayne L. Niederhauser

             7      LONG TITLE
             8      General Description:
             9          This bill establishes an account for lapsed appropriations from the Economic Incentive
             10      Restricted Account to be available for use by a sports organization.
             11      Highlighted Provisions:
             12          This bill:
             13          .    creates a restricted account known as the Sports Promotion Restricted Account and
             14      provides for the administration of the account;
             15          .    provides for deposits into the account from lapsed appropriations from the
             16      Economic Incentive Restricted Account remaining after partial rebates are paid or
             17      encumbered; and
             18          .    provides for money from the account to be paid to the Governor's Office of
             19      Economic Development for use by a sports organization.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          63M-1-2408, as last amended by Laws of Utah 2010, Chapters 164, 323, and 391

             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 63M-1-2408 is amended to read:
             30           63M-1-2408. Transition clause -- Renegotiation of agreements -- Payment of
             31      partial rebates.
             32          (1) As used in this section, "partial rebate" means an agreement between the office and
             33      a business entity under which the state agrees to pay back to the business entity a portion of
             34      new state revenues generated by a business entity's new commercial project.
             35          (2) (a) Unless modified or renegotiated as provided in Subsection (2)(b), the Division
             36      of Finance shall make partial rebate payments due under agreements entered into by the office
             37      before May 5, 2008, as provided in this section.
             38          (b) By January 1, 2009, the office shall:
             39          (i) contact each business entity with whom the office entered into an agreement under
             40      former Section 63-38f-1304 or 63-38f-1704 ; and
             41          (ii) subject to the limits established in Subsection 63M-1-2404 (3)(c), seek to modify
             42      those agreements for the sole purpose of providing the incentives in the form of tax credits
             43      under this part rather than partial rebates.
             44          (c) The office shall:
             45          (i) for each modified agreement granting tax credits, follow the procedures and
             46      requirements of Section 63M-1-2405 ; and
             47          (ii) for each agreement that still requires the state to pay partial rebates to the business
             48      entity, follow the procedures and requirements of this section.
             49          (3) (a) There is created a restricted account in the General Fund known as the
             50      Economic Incentive Restricted Account.
             51          (b) The account shall consist of money transferred into the account by the Division of
             52      Finance from the General Fund as provided in this section.
             53          (c) The Division of Finance shall make payments from the account as required by this
             54      section.
             55          (4) (a) Each business entity seeking a partial rebate shall follow the procedures and
             56      requirements of this Subsection (4) to obtain a partial rebate.
             57          (b) Within 90 days of the end of each calendar year, a business entity seeking a partial
             58      rebate shall:

             59          (i) provide the office with documentation of the new state revenues that the business
             60      entity generated during the preceding calendar year; and
             61          (ii) ensure that the documentation includes:
             62          (A) the types of taxes and corresponding amounts of taxes paid directly to the State
             63      Tax Commission; and
             64          (B) the sales taxes paid to Utah vendors and suppliers that were indirectly paid to the
             65      State Tax Commission.
             66          (c) The office shall:
             67          (i) audit or review the documentation for accuracy;
             68          (ii) based upon its analysis of the documentation, determine the amount of partial
             69      rebates that the business entity earned under the agreement; and
             70          (iii) submit to the Division of Finance:
             71          (A) a request for payment of partial rebates to the business entity;
             72          (B) the name and address of the payee; and
             73          (C) any other information requested by the Division of Finance.
             74          (5) Upon receipt of a request for payment of partial rebates from the office, the
             75      Division of Finance shall:
             76          (a) transfer from the General Fund to the restricted account the amount contained in the
             77      request for payment of partial rebates after reducing the amount transferred by any
             78      unencumbered balances in the restricted account; and
             79          (b) notwithstanding Subsections 51-5-3 (23)(b) and 63J-1-104 (3)(c), after receiving a
             80      request for payment of partial rebates and making the transfer required by Subsection (5)(a),
             81      the Division of Finance shall pay the partial rebates from the account.
             82          (6) (a) (i) There is created a restricted account in the General Fund known as the Sports
             83      Promotion Restricted Account.
             84          (ii) The Sports Promotion Restricted Account consists of money that the Legislature
             85      appropriates to the account and money that the Division of Finance transfers into the account
             86      under Subsection (6)(b).
             87          (iii) Any interest or earnings from money in the account shall be deposited into the
             88      account.
             89          (iv) The Legislature may appropriate money from the account to the Governor's Office

             90      of Economic Development for distribution to a sports organization, as defined in Section
             91      63M-1-1406 , for advertising, marketing, branding, and promoting the state in attracting
             92      sporting events into the state.
             93          (b) For each fiscal year beginning July 1, 2012, the Division of Finance shall transfer
             94      into the account lapsed funds appropriated from the Economic Incentive Restricted Account for
             95      partial rebates under this section, in an amount that:
             96          (i) except as provided in Subsection (6)(b)(ii), equals the difference between:
             97          (A) $7,230,200 or the amount appropriated for partial rebates, whichever is less; and
             98          (B) the total of all partial rebates paid or encumbered for that fiscal year; and
             99          (ii) does not exceed $2,500,000 per year.

Legislative Review Note
    as of 2-24-12 3:21 PM

Office of Legislative Research and General Counsel

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