Download Zipped Enrolled WordPerfect SB0057.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 57 Enrolled

             1     

AGRICULTURE ENVIRONMENTAL STEWARD AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ralph Okerlund

             5     
House Sponsor: Kay L. McIff

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill creates the Utah Environmental Stewardship Certification Program.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    creates the Utah Environmental Stewardship Certification Program;
             14          .    allows a farm, ranch, or animal feeding operation to qualify under the Utah
             15      Environmental Stewardship Certification program;
             16          .    requires the Conservation Commission to make rules to establish standards and
             17      procedures for administering the Utah Environmental Stewardship Certification
             18      Program; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides an effective date.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          4-20-1.5, as last amended by Laws of Utah 2010, Chapters 278 and 286
             27          17D-3-102, as renumbered and amended by Laws of Utah 2008, Chapter 360
             28          19-5-102, as last amended by Laws of Utah 2012, Chapter 360
             29          59-12-103 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters


             30      207, 212, 254, and 255
             31          59-12-103 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 207,
             32      212, 254, 255, and 424
             33          63A-3-205, as last amended by Laws of Utah 2012, Chapter 212
             34          63B-1b-102, as last amended by Laws of Utah 2012, Chapter 212
             35          63B-1b-202, as last amended by Laws of Utah 2012, Chapter 212
             36      ENACTS:
             37          4-18-107, Utah Code Annotated 1953
             38      RENUMBERS AND AMENDS:
             39          4-18-101, (Renumbered from 4-18-1, as last amended by Laws of Utah 2007, Chapter
             40      179)
             41          4-18-102, (Renumbered from 4-18-2, as last amended by Laws of Utah 2011, Chapter
             42      383)
             43          4-18-103, (Renumbered from 4-18-3, as last amended by Laws of Utah 2011, Chapter
             44      383)
             45          4-18-104, (Renumbered from 4-18-4, as last amended by Laws of Utah 2010, Chapter
             46      286)
             47          4-18-105, (Renumbered from 4-18-5, as last amended by Laws of Utah 2012, Chapter
             48      331)
             49          4-18-106, (Renumbered from 4-18-6, as last amended by Laws of Utah 2007, Chapter
             50      179)
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 4-18-101 , which is renumbered from Section 4-18-1 is renumbered
             54      and amended to read:
             55     
CHAPTER 18. CONSERVATION COMMISSION ACT

             56           [4-18-1].     4-18-101. Title.
             57          This chapter is known as the "Conservation Commission Act."


             58          Section 2. Section 4-18-102 , which is renumbered from Section 4-18-2 is renumbered
             59      and amended to read:
             60           [4-18-2].     4-18-102. Purpose declaration.
             61          (1) The Legislature finds and declares that the soil and water resources of this state
             62      constitute one of its basic assets and that the preservation of these resources requires planning
             63      and programs to ensure the development and utilization of these resources and to protect them
             64      from the adverse effects of wind and water erosion, sediment, and sediment related pollutants.
             65          (2) The Legislature finds that local production of food is essential for:
             66          (a) the security of the state's food supply; and
             67          (b) the self-sufficiency of the state's citizens.
             68          (3) The Legislature finds that sustainable agriculture is critical to:
             69          (a) the success of rural communities;
             70          (b) the historical culture of the state;
             71          (c) maintaining healthy farmland;
             72          (d) maintaining high water quality;
             73          (e) maintaining abundant wildlife; and
             74          (f) high-quality recreation for citizens of the state.
             75          (4) The Legislature finds that livestock grazing on public lands is important for the
             76      proper management, maintenance, and health of public lands in the state.
             77          (5) The Legislature encourages each agricultural producer in the state to operate in a
             78      reasonable and responsible manner to maintain the integrity of land, soil, water, and air.
             79          (6) To encourage each agricultural producer in this state to operate in a reasonable and
             80      responsible manner to maintain the integrity of the state's resources, the state shall [offer a
             81      certification of environmental stewardship as defined in Section 4-18-3 ] administer the Utah
             82      Environmental Stewardship Certification Program, created in Section 4-18-107 .
             83          Section 3. Section 4-18-103 , which is renumbered from Section 4-18-3 is renumbered
             84      and amended to read:
             85           [4-18-3].     4-18-103. Definitions.


             86          As used in this chapter:
             87          (1) (a) "Agricultural discharge" means the release of agriculture water from the
             88      property of a farm, ranch, or feedlot that:
             89          (i) pollutes a surface body of water, including a stream, lake, pond, marshland,
             90      watercourse, waterway, river, ditch, or other water conveyance system;
             91          (ii) pollutes ground water; or
             92          (iii) constitutes a significant nuisance to urban land.
             93          (b) "Agricultural discharge" does not include:
             94          (i) runoff from a farm, ranch, or feedlot, or the return flow of water from an irrigated
             95      field onto land that is not part of a body of water; or
             96          (ii) a release of water from a farm, ranch, or feedlot into a normally dry water
             97      conveyance leading to an active body of water, if the release does not reach the water of a lake,
             98      pond, stream, marshland, river, or other active body of water.
             99          (2) "Agricultural operation" means a farm, ranch, or animal feeding operation.
             100          [(2)] (3) "Agriculture water" means:
             101          (a) water used by a farm, ranch, or feedlot for the production of food, fiber, or fuel;
             102          (b) the return flow of water from irrigated agriculture; or
             103          (c) agricultural storm water runoff.
             104          [(3)] (4) "Alternate" means a substitute for a district supervisor if the district supervisor
             105      cannot attend a meeting.
             106          [(4)] (5) (a) "Animal feeding operation" means a facility where animals, other than
             107      aquatic animals, are stabled or confined and fed or maintained for a total of 45 days or more in
             108      any 12-month period.
             109          (b) "Animal feeding operation" does not include an operation where animals are in
             110      areas such as pastures or rangeland that sustain crops or forage growth during the entire time
             111      the animals are present.
             112          [(5)] (6) "Best management practices" means practices, including management policies
             113      and the use of technology, used by each sector of agriculture in the production of food and fiber


             114      that are commonly accepted practices, or that are at least as effective as commonly accepted
             115      practices, and that:
             116          (a) protect the environment;
             117          (b) protect human health;
             118          (c) ensure the humane treatment of animals; and
             119          (d) promote the financial viability of agricultural production.
             120          (7) "Certified agricultural operation" means an agricultural operation that is certified
             121      under the Utah Environmental Stewardship Certification Program in accordance with Section
             122      4-18-107 .
             123          [(6)] (8) "Certified conservation planner" means a planner of a state conservation
             124      district, or other qualified planner, that is approved by the commission to [issue a certification
             125      of environmental stewardship] certify an agricultural operation under the Utah Environmental
             126      Stewardship Certification Program, created in Section 4-18-107 .
             127          [(7) "Certification of environmental stewardship" means an official recognition by the
             128      state that an owner or operator of a farm, ranch, or feedlot meets the requirements established
             129      by the commission:]
             130          [(a) to prevent harm to the environment, including the prevention of an agricultural
             131      discharge;]
             132          [(b) for following best management practices; and]
             133          [(c) for following nutrient management plans that meet the state technical standards
             134      appropriate for the given type of agricultural operation.]
             135          [(8)] (9) "Commission" means the Conservation Commission created in Section
             136      [ 4-18-4 ] 4-18-104 .
             137          [(9)] (10) "Comprehensive nutrient management plan" or "nutrient management plan"
             138      means a plan to properly store, handle, and spread manure and other agricultural byproducts to:
             139          (a) protect the environment; and
             140          (b) provide nutrients for the production of crops.
             141          [(10)] (11) "District" or "conservation district" has the same meaning as "conservation


             142      district" as defined in Section 17D-3-102 .
             143          [(11)] (12) "Pollution" means a harmful human-made or human-induced alteration to
             144      the water of the state, including an alteration to the chemical, physical, biological, or
             145      radiological integrity of water that harms the water of the state.
             146          [(12)] (13) "State technical standards" means a collection of best management practices
             147      that will protect the environment in a reasonable and economical manner for each sector of
             148      agriculture as required by this chapter.
             149          [(13)] (14) "Sustainable agriculture" means agriculture production and practices that
             150      promote:
             151          (a) the environmental responsibility of owners and operators of farms, ranches, and
             152      feedlots; and
             153          (b) the profitability of owners and operators of farms, ranches, and feedlots.
             154          Section 4. Section 4-18-104 , which is renumbered from Section 4-18-4 is renumbered
             155      and amended to read:
             156           [4-18-4].     4-18-104. Conservation Commission created -- Composition --
             157      Appointment -- Terms -- Compensation -- Attorney general to provide legal assistance.
             158          (1) There is created within the department the Conservation Commission to perform
             159      the functions specified in this chapter.
             160          (2) The Conservation Commission shall be comprised of 16 members, including:
             161          (a) the director of the Extension Service at Utah State University or the director's
             162      designee;
             163          (b) the president of the Utah Association of Conservation Districts or the president's
             164      designee;
             165          (c) the commissioner or the commissioner's designee;
             166          (d) the executive director of the Department of Natural Resources or the executive
             167      director's designee;
             168          (e) the executive director of the Department of Environmental Quality or the executive
             169      director's designee;


             170          (f) the chair and the vice chair of the State Grazing Advisory Board, created in Section
             171      4-20-1.5 ;
             172          (g) the president of the County Weed Supervisors Association;
             173          (h) seven district supervisors who provide district representation on the commission on
             174      a multicounty basis; and
             175          (i) the director of the School and Institutional Trust Lands Administration or the
             176      director's designee.
             177          (3) If a district supervisor is unable to attend a meeting, an alternate may serve in the
             178      place of the district supervisor for that meeting.
             179          (4) The members of the commission specified in Subsection (2)(h) shall:
             180          (a) be recommended by the commission to the governor; and
             181          (b) be appointed by the governor with the consent of the Senate.
             182          (5) (a) Except as required by Subsection (5)(b), as terms of current commission
             183      members expire, the governor shall appoint each new member or reappointed member to a
             184      four-year term.
             185          (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
             186      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             187      commission members are staggered so that approximately half of the commission is appointed
             188      every two years.
             189          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             190      appointed for the unexpired term.
             191          (7) The commissioner is chair of the commission.
             192          (8) Attendance of a majority of the commission members at a meeting constitutes a
             193      quorum.
             194          (9) A member may not receive compensation or benefits for the member's service, but
             195      may receive per diem and travel expenses in accordance with:
             196          (a) Section 63A-3-106 ;
             197          (b) Section 63A-3-107 ; and


             198          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             199      63A-3-107 .
             200          (10) The commission shall keep a record of its actions.
             201          (11) The attorney general shall provide legal services to the commission upon request.
             202          Section 5. Section 4-18-105 , which is renumbered from Section 4-18-5 is renumbered
             203      and amended to read:
             204           [4-18-5].     4-18-105. Conservation commission -- Functions and duties.
             205          (1) The commission shall:
             206          (a) facilitate the development and implementation of the strategies and programs
             207      necessary to:
             208          (i) protect, conserve, utilize, and develop the soil, air, and water resources of the state;
             209      and
             210          (ii) promote the protection, integrity, and restoration of land for agricultural and other
             211      beneficial purposes;
             212          (b) disseminate information regarding districts' activities and programs;
             213          (c) supervise the formation, reorganization, or dissolution of districts according to the
             214      requirements of Title 17D, Chapter 3, Conservation District Act;
             215          (d) prescribe uniform accounting and recordkeeping procedures for districts and
             216      require each district to submit annually an audit of its funds to the commission;
             217          (e) approve and make loans for agricultural purposes, from the Agriculture Resource
             218      Development Fund, for:
             219          (i) rangeland improvement and management projects;
             220          (ii) watershed protection and flood prevention projects;
             221          (iii) agricultural cropland soil and water conservation projects; and
             222          (iv) programs designed to promote energy efficient farming practices;
             223          (f) administer federal or state funds, including loan funds under this chapter, in
             224      accordance with applicable federal or state guidelines and make loans or grants from those
             225      funds to land occupiers for:


             226          (i) the conservation of soil or water resources;
             227          (ii) maintenance of rangeland improvement projects; and
             228          (iii) the control or eradication of noxious weeds and invasive plant species:
             229          (A) in cooperation and coordination with local weed boards; and
             230          (B) in accordance with Section 4-2-8.7 ;
             231          (g) seek to coordinate soil and water protection, conservation, and development
             232      activities and programs of state agencies, local governmental units, other states, special interest
             233      groups, and federal agencies;
             234          (h) plan watershed and flood control projects in cooperation with appropriate local,
             235      state, and federal authorities, and coordinate flood control projects in the state;
             236          [(i) develop the requirements for:]
             237          [(i) a certification of environmental stewardship, including best management practices,
             238      technical standards, and nutrient management plans, as applicable to each agricultural sector;
             239      and]
             240          [(ii) providing the certification to each owner or operator of a farm, ranch, or feedlot
             241      that:]
             242          [(A) requests certification; and]
             243          [(B) qualifies for certification;]
             244          [(j) develop best management practices and state technical standards when requested
             245      by governmental agencies or agricultural producer groups;]
             246          [(k) develop the requirements and certification process for an individual to be a
             247      certified conservation planner as defined in Section 4-18-3 ;]
             248          [(l)] (i) assist other state agencies with conservation standards for agriculture when
             249      requested; and
             250          [(m)] (j) when assigned by the governor, when required by contract with the
             251      Department of Environmental Quality, or when required by contract with the United States
             252      Environmental Protection Agency:
             253          (i) develop programs for the prevention, control, or abatement of new or existing


             254      pollution to the soil, water, or air of the state;
             255          (ii) advise, consult, and cooperate with affected parties to further the purpose of this
             256      chapter;
             257          (iii) conduct studies, investigations, research, and demonstrations relating to
             258      agricultural pollution issues;
             259          (iv) give reasonable consideration in the exercise of its powers and duties to the
             260      economic impact on sustainable agriculture;
             261          (v) meet the requirements of federal law related to water and air pollution in the
             262      exercise of its powers and duties; and
             263          (vi) establish administrative penalties relating to agricultural discharges as defined in
             264      Section [ 4-18-3 ] 4-18-103 that are proportional to the seriousness of the resulting
             265      environmental harm.
             266          (2) The commission may:
             267          (a) employ, with the approval of the department, an administrator and necessary
             268      technical experts and employees;
             269          (b) execute contracts or other instruments necessary to exercise its powers;
             270          (c) take necessary action to promote and enforce the purpose and findings of Section
             271      [ 4-18-2 ] 4-18-102 ;
             272          (d) sue and be sued; and
             273          (e) adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative
             274      Rulemaking Act, necessary to carry out the powers and duties described in Subsection (1) and
             275      Subsections (2)(b) and (c).
             276          Section 6. Section 4-18-106 , which is renumbered from Section 4-18-6 is renumbered
             277      and amended to read:
             278           [4-18-6].     4-18-106. Agriculture Resource Development Fund -- Contents --
             279      Use of fund money.
             280          (1) There is created a revolving loan fund known as the Agriculture Resource
             281      Development Fund.


             282          (2) The Agriculture Resource Development Fund shall consist of:
             283          (a) money appropriated to it by the Legislature;
             284          (b) sales and use tax receipts transferred to the fund [pursuant to] in accordance with
             285      Section 59-12-103 ;
             286          (c) money received for the repayment of loans made from the fund;
             287          (d) money made available to the state for agriculture resource development from any
             288      source; and
             289          (e) interest earned on the fund.
             290          (3) The commission shall make loans from the Agriculture Resource Development
             291      Fund as provided by Section [ 4-18-5 ] 4-18-105 .
             292          Section 7. Section 4-18-107 is enacted to read:
             293          4-18-107. Utah Environmental Stewardship Certification Program.
             294          (1) There is created the Utah Environmental Stewardship Certification Program.
             295          (2) The commission, with the assistance of the department and with the advice of the
             296      Water Quality Board, created in Section 19-1-106 , shall make rules in accordance with Title
             297      63G, Chapter 3, Utah Administrative Rulemaking Act that establish:
             298          (a) (i) best management practices;
             299          (ii) state technical standards; and
             300          (iii) guidelines for nutrient management plans;
             301          (b) requirements for qualification under the Utah Environmental Stewardship
             302      Certification Program that:
             303          (i) are consistent with sustainable agriculture;
             304          (ii) help prevent harm to the environment, including prevention of an agricultural
             305      discharge; and
             306          (iii) encourage agricultural operations in the state to follow:
             307          (A) best management practices; and
             308          (B) nutrient management plans that meet the state technical standards appropriate for
             309      each type of agricultural operation;


             310          (c) the procedure for qualification under the Utah Environmental Stewardship
             311      Certification Program;
             312          (d) the requirements and certification process for an individual to become a certified
             313      conservation planner; and
             314          (e) standards and procedures for administering the Utah Environmental Stewardship
             315      Certification Program, including:
             316          (i) renewal of a certification under Subsection (4)(b);
             317          (ii) investigation and revocation of a certification under Subsection (6); and
             318          (iii) revocation of a certification under Subsection (7)(b).
             319          (3) An owner or operator of an agricultural operation may apply to certify the
             320      agricultural operation under the Utah Environmental Stewardship Certification Program in
             321      accordance with this section.
             322          (4) (a) Except as provided in Subsection (6) or (7), a certified agricultural operation
             323      remains certified for a period of five years after the day on which the agricultural operation
             324      becomes certified.
             325          (b) A certified agricultural operation may, in accordance with commission rule, renew
             326      the certification for an additional five years to keep the certification for a total period of 10
             327      years after the day on which the agricultural operation becomes certified.
             328          (5) Subject to review by the commissioner or the commissioner's designee, a certified
             329      conservation planner shall certify each qualifying agricultural operation that applies to the Utah
             330      Environmental Stewardship Certification Program.
             331          (6) (a) Upon request of the Department of Environmental Quality or upon receipt by
             332      the department of a citizen environmental complaint, the department shall, with the assistance
             333      of certified conservation planners as necessary, investigate a certified agricultural operation to
             334      determine whether the agricultural operation has committed a significant violation of the
             335      requirements of the Utah Environmental Stewardship Certification Program.
             336          (b) If, after completing an investigation described in Subsection (6)(a), the department
             337      determines that a certified agricultural operation has committed a significant violation of the


             338      requirements for the Utah Environmental Stewardship Certification Program, the department
             339      shall report the violation to the commission.
             340          (c) Upon receipt of a report described in Subsection (6)(b), the commission shall
             341      review the report and:
             342          (i) revoke the agricultural operation's certification; or
             343          (ii) set terms and conditions for the agricultural operation to maintain its certification.
             344          (7) (a) If, for a certification renewal under Subsection (4)(b), or an investigation under
             345      Subsection (6)(a), the department requests access to a certified agricultural operation, the
             346      certified agricultural operation shall, at a reasonable time, allow access for the department to:
             347          (i) inspect the agricultural operation; or
             348          (ii) review the records of the agricultural operation.
             349          (b) If a certified agricultural operation denies the department access as described in
             350      Subsection (7)(a), the commission may revoke the agricultural operation's certification.
             351          (8) If the commission changes a requirement of the Utah Environmental Stewardship
             352      Certification Program after an agricultural operation is certified in accordance with former
             353      requirements, during the certification and renewal periods described in Subsections (4)(a) and
             354      (b) the agricultural operation may choose whether to abide by a new requirement, but the
             355      agricultural operation is not subject to the new requirement until the agricultural operation
             356      reapplies for certification.
             357          (9) Nothing in this section exempts an agricultural discharge made by a certified
             358      agricultural operation from the provisions of Subsection 19-5-105.5 (3)(b).
             359          Section 8. Section 4-20-1.5 is amended to read:
             360           4-20-1.5. State Grazing Advisory Board -- Duties.
             361          (1) (a) There is created within the department the State Grazing Advisory Board.
             362          (b) The commissioner shall appoint the following members:
             363          (i) one member from each regional board;
             364          (ii) one member from the Conservation Commission, created in Section [ 4-18-4 ]
             365      4-18-104 ;


             366          (iii) one representative of the Department of Natural Resources;
             367          (iv) two livestock producers at-large; and
             368          (v) one representative of the oil, gas, or mining industry.
             369          (2) The term of office for a state board member is four years.
             370          (3) Members of the state board shall elect a chair, who shall serve for two years.
             371          (4) A member may not receive compensation or benefits for the member's service[,]
             372      but may receive per diem and travel expenses in accordance with:
             373          (a) Section 63A-3-106 ;
             374          (b) Section 63A-3-107 ; and
             375          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             376      63A-3-107 .
             377          (5) The state board shall:
             378          (a) receive:
             379          (i) advice and recommendations from a regional board concerning:
             380          (A) management plans for public lands, state lands, and school and institutional trust
             381      lands as defined in Section 53C-1-103 , within the regional board's region; and
             382          (B) any issue that impacts grazing on private lands, public lands, state lands, or school
             383      and institutional trust lands as defined in Section 53C-1-103 , in its region; and
             384          (ii) requests for restricted account money from the entities described in Subsections
             385      (5)(c)(i) through (iv);
             386          (b) recommend state policy positions and cooperative agency participation in federal
             387      and state land management plans to the department and to the Public Lands Policy
             388      Coordinating Office, created under Section 63J-4-602 ; and
             389          (c) advise the department on the requests and recommendations of:
             390          (i) regional boards;
             391          (ii) county weed control boards, created [under] in Section 4-17-4 ;
             392          (iii) cooperative weed management associations; and
             393          (iv) conservation districts created under the authority of Title 17D, Chapter 3,


             394      Conservation District Act.
             395          Section 9. Section 17D-3-102 is amended to read:
             396           17D-3-102. Definitions.
             397          As used in this chapter:
             398          (1) "Commission" means the Conservation Commission, created [under] in Section
             399      [ 4-18-4 ] 4-18-104 .
             400          (2) "Conservation district" means a limited purpose local government entity, as
             401      described in Section 17D-3-103 , that operates under, is subject to, and has the powers set forth
             402      in this chapter.
             403          (3) "Department" means the Department of Agriculture and Food, created [under] in
             404      Section 4-2-1 .
             405          Section 10. Section 19-5-102 is amended to read:
             406           19-5-102. Definitions.
             407          As used in this chapter:
             408          (1) "Agriculture discharge":
             409          (a) means the release of agriculture water from the property of a farm, ranch, or feed lot
             410      that:
             411          (i) pollutes a surface body of water, including a stream, lake, pond, marshland,
             412      watercourse, waterway, river, ditch, and other water conveyance system of the state;
             413          (ii) pollutes the ground water of the state; or
             414          (iii) constitutes a significant nuisance on urban land; and
             415          (b) does not include:
             416          (i) runoff from a farm, ranch, or feed lot or return flows from irrigated fields onto land
             417      that is not part of a body of water; or
             418          (ii) a release into a normally dry water conveyance to an active body of water, unless
             419      the release reaches the water of a lake, pond, stream, marshland, river, or other active body of
             420      water.
             421          (2) "Agriculture water" means:


             422          (a) water used by a farmer, rancher, or feed lot for the production of food, fiber, or fuel;
             423          (b) return flows from irrigated agriculture; and
             424          (c) agricultural storm water runoff.
             425          (3) "Board" means the Water Quality Board created in Section 19-1-106 .
             426          (4) "Commission" means the Conservation Commission, created in Section [ 4-18-4 ]
             427      4-18-104 .
             428          (5) "Contaminant" means any physical, chemical, biological, or radiological substance
             429      or matter in water.
             430          (6) "Director" means the director of the Division of Water Quality or, for purposes of
             431      groundwater quality at a facility licensed by and under the jurisdiction of the Division of
             432      Radiation Control, the director of the Division of Radiation Control.
             433          (7) "Discharge" means the addition of any pollutant to any waters of the state.
             434          (8) "Discharge permit" means a permit issued to a person who:
             435          (a) discharges or whose activities would probably result in a discharge of pollutants
             436      into the waters of the state; or
             437          (b) generates or manages sewage sludge.
             438          (9) "Disposal system" means a system for disposing of wastes[,] and includes sewerage
             439      systems and treatment works.
             440          (10) "Division" means the Division of Water Quality, created in Subsection
             441      19-1-105 (1)(f).
             442          (11) "Effluent limitations" means any restrictions, requirements, or prohibitions,
             443      including schedules of compliance established under this chapter, which apply to discharges.
             444          (12) "Point source":
             445          (a) means any discernible, confined, and discrete conveyance, including any pipe,
             446      ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated
             447      animal feeding operation, or vessel or other floating craft, from which pollutants are or may be
             448      discharged; and
             449          (b) does not include return flows from irrigated agriculture.


             450          (13) "Pollution" means any man-made or man-induced alteration of the chemical,
             451      physical, biological, or radiological integrity of any waters of the state, unless the alteration is
             452      necessary for the public health and safety.
             453          (14) "Publicly owned treatment works" means any facility for the treatment of
             454      pollutants owned by the state, its political subdivisions, or other public entity.
             455          (15) "Schedule of compliance" means a schedule of remedial measures, including an
             456      enforceable sequence of actions or operations leading to compliance with this chapter.
             457          (16) "Sewage sludge" means any solid, semisolid, or liquid residue removed during the
             458      treatment of municipal wastewater or domestic sewage.
             459          (17) "Sewerage system" means pipelines or conduits, pumping stations, and all other
             460      constructions, devices, appurtenances, and facilities used for collecting or conducting wastes to
             461      a point of ultimate disposal.
             462          (18) "Total maximum daily load" means a calculation of the maximum amount of a
             463      pollutant that a body of water can receive and still meet water quality standards.
             464          (19) "Treatment works" means any plant, disposal field, lagoon, dam, pumping station,
             465      incinerator, or other works used for the purpose of treating, stabilizing, or holding wastes.
             466          (20) "Underground injection" means the subsurface emplacement of fluids by well
             467      injection.
             468          (21) "Underground wastewater disposal system" means a system for disposing of
             469      domestic wastewater discharges as defined by the board and the executive director.
             470          (22) "Waste" or "pollutant" means dredged spoil, solid waste, incinerator residue,
             471      sewage, garbage, sewage sludge, munitions, chemical wastes, biological materials, radioactive
             472      materials, heat, wrecked or discarded equipment, rock, sand, cellar dirt, and industrial,
             473      municipal, and agricultural waste discharged into water.
             474          (23) "Waters of the state":
             475          (a) means all streams, lakes, ponds, marshes, watercourses, waterways, wells, springs,
             476      irrigation systems, drainage systems, and all other bodies or accumulations of water, surface
             477      and underground, natural or artificial, public or private, which are contained within, flow


             478      through, or border upon this state or any portion of the state; and
             479          (b) does not include bodies of water confined to and retained within the limits of
             480      private property, and which do not develop into or constitute a nuisance, a public health hazard,
             481      or a menace to fish or wildlife.
             482          Section 11. Section 59-12-103 (Superseded 07/01/14) is amended to read:
             483           59-12-103 (Superseded 07/01/14). Sales and use tax base -- Rates -- Effective dates
             484      -- Use of sales and use tax revenues.
             485          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             486      charged for the following transactions:
             487          (a) retail sales of tangible personal property made within the state;
             488          (b) amounts paid for:
             489          (i) telecommunications service, other than mobile telecommunications service, that
             490      originates and terminates within the boundaries of this state;
             491          (ii) mobile telecommunications service that originates and terminates within the
             492      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             493      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             494          (iii) an ancillary service associated with a:
             495          (A) telecommunications service described in Subsection (1)(b)(i); or
             496          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             497          (c) sales of the following for commercial use:
             498          (i) gas;
             499          (ii) electricity;
             500          (iii) heat;
             501          (iv) coal;
             502          (v) fuel oil; or
             503          (vi) other fuels;
             504          (d) sales of the following for residential use:
             505          (i) gas;


             506          (ii) electricity;
             507          (iii) heat;
             508          (iv) coal;
             509          (v) fuel oil; or
             510          (vi) other fuels;
             511          (e) sales of prepared food;
             512          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             513      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             514      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             515      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             516      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             517      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             518      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             519      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             520      exhibition, cultural, or athletic activity;
             521          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             522      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             523          (i) the tangible personal property; and
             524          (ii) parts used in the repairs or renovations of the tangible personal property described
             525      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             526      of that tangible personal property;
             527          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             528      assisted cleaning or washing of tangible personal property;
             529          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             530      accommodations and services that are regularly rented for less than 30 consecutive days;
             531          (j) amounts paid or charged for laundry or dry cleaning services;
             532          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             533      this state the tangible personal property is:


             534          (i) stored;
             535          (ii) used; or
             536          (iii) otherwise consumed;
             537          (l) amounts paid or charged for tangible personal property if within this state the
             538      tangible personal property is:
             539          (i) stored;
             540          (ii) used; or
             541          (iii) consumed; and
             542          (m) amounts paid or charged for a sale:
             543          (i) (A) of a product transferred electronically; or
             544          (B) of a repair or renovation of a product transferred electronically; and
             545          (ii) regardless of whether the sale provides:
             546          (A) a right of permanent use of the product; or
             547          (B) a right to use the product that is less than a permanent use, including a right:
             548          (I) for a definite or specified length of time; and
             549          (II) that terminates upon the occurrence of a condition.
             550          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             551      is imposed on a transaction described in Subsection (1) equal to the sum of:
             552          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             553          (A) 4.70%; and
             554          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             555      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             556      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             557      State Sales and Use Tax Act; and
             558          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             559      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             560      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             561      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and


             562          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             563      transaction under this chapter other than this part.
             564          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             565      on a transaction described in Subsection (1)(d) equal to the sum of:
             566          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             567          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             568      transaction under this chapter other than this part.
             569          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             570      on amounts paid or charged for food and food ingredients equal to the sum of:
             571          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             572      a tax rate of 1.75%; and
             573          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             574      amounts paid or charged for food and food ingredients under this chapter other than this part.
             575          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             576      tangible personal property other than food and food ingredients, a state tax and a local tax is
             577      imposed on the entire bundled transaction equal to the sum of:
             578          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             579          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             580          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             581      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             582      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             583      Additional State Sales and Use Tax Act; and
             584          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             585      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             586      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             587      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             588          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             589      described in Subsection (2)(a)(ii).


             590          (ii) If an optional computer software maintenance contract is a bundled transaction that
             591      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             592      similar billing document, the purchase of the optional computer software maintenance contract
             593      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             594          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             595      transaction described in Subsection (2)(d)(i) or (ii):
             596          (A) if the sales price of the bundled transaction is attributable to tangible personal
             597      property, a product, or a service that is subject to taxation under this chapter and tangible
             598      personal property, a product, or service that is not subject to taxation under this chapter, the
             599      entire bundled transaction is subject to taxation under this chapter unless:
             600          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             601      personal property, product, or service that is not subject to taxation under this chapter from the
             602      books and records the seller keeps in the seller's regular course of business; or
             603          (II) state or federal law provides otherwise; or
             604          (B) if the sales price of a bundled transaction is attributable to two or more items of
             605      tangible personal property, products, or services that are subject to taxation under this chapter
             606      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             607      higher tax rate unless:
             608          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             609      personal property, product, or service that is subject to taxation under this chapter at the lower
             610      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             611          (II) state or federal law provides otherwise.
             612          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
             613      seller's regular course of business includes books and records the seller keeps in the regular
             614      course of business for nontax purposes.
             615          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             616      rate imposed under the following shall take effect on the first day of a calendar quarter:
             617          (i) Subsection (2)(a)(i)(A);


             618          (ii) Subsection (2)(b)(i);
             619          (iii) Subsection (2)(c)(i); or
             620          (iv) Subsection (2)(d)(i)(A)(I).
             621          (f) (i) A tax rate increase takes effect on the first day of the first billing period that
             622      begins on or after the effective date of the tax rate increase if the billing period for the
             623      transaction begins before the effective date of a tax rate increase imposed under:
             624          (A) Subsection (2)(a)(i)(A);
             625          (B) Subsection (2)(b)(i);
             626          (C) Subsection (2)(c)(i); or
             627          (D) Subsection (2)(d)(i)(A)(I).
             628          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             629      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             630      or the tax rate decrease imposed under:
             631          (A) Subsection (2)(a)(i)(A);
             632          (B) Subsection (2)(b)(i);
             633          (C) Subsection (2)(c)(i); or
             634          (D) Subsection (2)(d)(i)(A)(I).
             635          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             636      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             637      or change in a tax rate takes effect:
             638          (A) on the first day of a calendar quarter; and
             639          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             640          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             641          (A) Subsection (2)(a)(i)(A);
             642          (B) Subsection (2)(b)(i);
             643          (C) Subsection (2)(c)(i); or
             644          (D) Subsection (2)(d)(i)(A)(I).
             645          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,


             646      the commission may by rule define the term "catalogue sale."
             647          (3) (a) The following state taxes shall be deposited into the General Fund:
             648          (i) the tax imposed by Subsection (2)(a)(i)(A);
             649          (ii) the tax imposed by Subsection (2)(b)(i);
             650          (iii) the tax imposed by Subsection (2)(c)(i); or
             651          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             652          (b) The following local taxes shall be distributed to a county, city, or town as provided
             653      in this chapter:
             654          (i) the tax imposed by Subsection (2)(a)(ii);
             655          (ii) the tax imposed by Subsection (2)(b)(ii);
             656          (iii) the tax imposed by Subsection (2)(c)(ii); and
             657          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             658          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             659      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             660      through (g):
             661          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             662          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             663          (B) for the fiscal year; or
             664          (ii) $17,500,000.
             665          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             666      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             667      Department of Natural Resources to:
             668          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             669      protect sensitive plant and animal species; or
             670          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             671      act, to political subdivisions of the state to implement the measures described in Subsections
             672      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             673          (ii) Money transferred to the Department of Natural Resources under Subsection


             674      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             675      person to list or attempt to have listed a species as threatened or endangered under the
             676      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             677          (iii) At the end of each fiscal year:
             678          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             679      Conservation and Development Fund created in Section 73-10-24 ;
             680          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             681      Program Subaccount created in Section 73-10c-5 ; and
             682          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             683      Program Subaccount created in Section 73-10c-5 .
             684          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             685      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             686      created in Section [ 4-18-6 ] 4-18-106 .
             687          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             688      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             689      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             690      water rights.
             691          (ii) At the end of each fiscal year:
             692          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             693      Conservation and Development Fund created in Section 73-10-24 ;
             694          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             695      Program Subaccount created in Section 73-10c-5 ; and
             696          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             697      Program Subaccount created in Section 73-10c-5 .
             698          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             699      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             700      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             701          (ii) In addition to the uses allowed of the Water Resources Conservation and


             702      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             703      Development Fund may also be used to:
             704          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             705      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             706      quantifying surface and ground water resources and describing the hydrologic systems of an
             707      area in sufficient detail so as to enable local and state resource managers to plan for and
             708      accommodate growth in water use without jeopardizing the resource;
             709          (B) fund state required dam safety improvements; and
             710          (C) protect the state's interest in interstate water compact allocations, including the
             711      hiring of technical and legal staff.
             712          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             713      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             714      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             715          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             716      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             717      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             718          (i) provide for the installation and repair of collection, treatment, storage, and
             719      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             720          (ii) develop underground sources of water, including springs and wells; and
             721          (iii) develop surface water sources.
             722          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             723      2006, the difference between the following amounts shall be expended as provided in this
             724      Subsection (5), if that difference is greater than $1:
             725          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             726      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             727          (ii) $17,500,000.
             728          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             729          (A) transferred each fiscal year to the Department of Natural Resources as dedicated


             730      credits; and
             731          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             732      restoration.
             733          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             734      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             735      created in Section 73-10-24 .
             736          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             737      remaining difference described in Subsection (5)(a) shall be:
             738          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             739      credits; and
             740          (B) expended by the Division of Water Resources for cloud-seeding projects
             741      authorized by Title 73, Chapter 15, Modification of Weather.
             742          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             743      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             744      created in Section 73-10-24 .
             745          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             746      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             747      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             748      Division of Water Resources for:
             749          (i) preconstruction costs:
             750          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             751      26, Bear River Development Act; and
             752          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             753      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             754          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             755      Chapter 26, Bear River Development Act;
             756          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             757      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and


             758          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             759      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             760          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             761      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             762      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             763      incurred for employing additional technical staff for the administration of water rights.
             764          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             765      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             766      Fund created in Section 73-10-24 .
             767          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             768      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             769      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             770      the Transportation Fund created by Section 72-2-102 .
             771          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             772      Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
             773      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             774      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             775          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             776      Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
             777      2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             778      created by Section 72-2-124 :
             779          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             780      the revenues collected from the following taxes, which represents a portion of the
             781      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             782      on vehicles and vehicle-related products:
             783          (A) the tax imposed by Subsection (2)(a)(i)(A);
             784          (B) the tax imposed by Subsection (2)(b)(i);
             785          (C) the tax imposed by Subsection (2)(c)(i); and


             786          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             787          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             788      current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
             789      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             790      (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
             791          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
             792      the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
             793      lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
             794      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             795      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             796      (8)(a) equal to the product of:
             797          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
             798      previous fiscal year; and
             799          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             800      (8)(a)(i)(A) through (D) in the current fiscal year.
             801          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             802      Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
             803      described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
             804      Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
             805      Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
             806          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             807      from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
             808      under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
             809      collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
             810      current fiscal year under Subsection (8)(a).
             811          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
             812      Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
             813      Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under


             814      Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
             815      72-2-124 .
             816          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             817      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             818      created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009 .
             819          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
             820      and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
             821      1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             822      created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
             823      transactions described in Subsection (1).
             824          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
             825      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             826      charged for food and food ingredients, except for tax revenue generated by a bundled
             827      transaction attributable to food and food ingredients and tangible personal property other than
             828      food and food ingredients described in Subsection (2)(d).
             829          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             830      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             831      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             832      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             833      chokepoints in construction management.
             834          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             835      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             836      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             837      and food ingredients and tangible personal property other than food and food ingredients
             838      described in Subsection (2)(d).
             839          Section 12. Section 59-12-103 (Effective 07/01/14) is amended to read:
             840           59-12-103 (Effective 07/01/14). Sales and use tax base -- Rates -- Effective dates --
             841      Use of sales and use tax revenues.


             842          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             843      charged for the following transactions:
             844          (a) retail sales of tangible personal property made within the state;
             845          (b) amounts paid for:
             846          (i) telecommunications service, other than mobile telecommunications service, that
             847      originates and terminates within the boundaries of this state;
             848          (ii) mobile telecommunications service that originates and terminates within the
             849      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             850      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             851          (iii) an ancillary service associated with a:
             852          (A) telecommunications service described in Subsection (1)(b)(i); or
             853          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             854          (c) sales of the following for commercial use:
             855          (i) gas;
             856          (ii) electricity;
             857          (iii) heat;
             858          (iv) coal;
             859          (v) fuel oil; or
             860          (vi) other fuels;
             861          (d) sales of the following for residential use:
             862          (i) gas;
             863          (ii) electricity;
             864          (iii) heat;
             865          (iv) coal;
             866          (v) fuel oil; or
             867          (vi) other fuels;
             868          (e) sales of prepared food;
             869          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or


             870      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             871      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             872      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             873      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             874      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             875      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             876      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             877      exhibition, cultural, or athletic activity;
             878          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             879      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             880          (i) the tangible personal property; and
             881          (ii) parts used in the repairs or renovations of the tangible personal property described
             882      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             883      of that tangible personal property;
             884          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             885      assisted cleaning or washing of tangible personal property;
             886          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             887      accommodations and services that are regularly rented for less than 30 consecutive days;
             888          (j) amounts paid or charged for laundry or dry cleaning services;
             889          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             890      this state the tangible personal property is:
             891          (i) stored;
             892          (ii) used; or
             893          (iii) otherwise consumed;
             894          (l) amounts paid or charged for tangible personal property if within this state the
             895      tangible personal property is:
             896          (i) stored;
             897          (ii) used; or


             898          (iii) consumed; and
             899          (m) amounts paid or charged for a sale:
             900          (i) (A) of a product transferred electronically; or
             901          (B) of a repair or renovation of a product transferred electronically; and
             902          (ii) regardless of whether the sale provides:
             903          (A) a right of permanent use of the product; or
             904          (B) a right to use the product that is less than a permanent use, including a right:
             905          (I) for a definite or specified length of time; and
             906          (II) that terminates upon the occurrence of a condition.
             907          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             908      is imposed on a transaction described in Subsection (1) equal to the sum of:
             909          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             910          (A) 4.70%; and
             911          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             912      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             913      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             914      State Sales and Use Tax Act; and
             915          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             916      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             917      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             918      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             919          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             920      transaction under this chapter other than this part.
             921          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             922      on a transaction described in Subsection (1)(d) equal to the sum of:
             923          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             924          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             925      transaction under this chapter other than this part.


             926          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             927      on amounts paid or charged for food and food ingredients equal to the sum of:
             928          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             929      a tax rate of 1.75%; and
             930          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             931      amounts paid or charged for food and food ingredients under this chapter other than this part.
             932          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             933      tangible personal property other than food and food ingredients, a state tax and a local tax is
             934      imposed on the entire bundled transaction equal to the sum of:
             935          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             936          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             937          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             938      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             939      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             940      Additional State Sales and Use Tax Act; and
             941          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             942      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             943      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             944      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             945          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             946      described in Subsection (2)(a)(ii).
             947          (ii) If an optional computer software maintenance contract is a bundled transaction that
             948      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             949      similar billing document, the purchase of the optional computer software maintenance contract
             950      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             951          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             952      transaction described in Subsection (2)(d)(i) or (ii):
             953          (A) if the sales price of the bundled transaction is attributable to tangible personal


             954      property, a product, or a service that is subject to taxation under this chapter and tangible
             955      personal property, a product, or service that is not subject to taxation under this chapter, the
             956      entire bundled transaction is subject to taxation under this chapter unless:
             957          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             958      personal property, product, or service that is not subject to taxation under this chapter from the
             959      books and records the seller keeps in the seller's regular course of business; or
             960          (II) state or federal law provides otherwise; or
             961          (B) if the sales price of a bundled transaction is attributable to two or more items of
             962      tangible personal property, products, or services that are subject to taxation under this chapter
             963      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             964      higher tax rate unless:
             965          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             966      personal property, product, or service that is subject to taxation under this chapter at the lower
             967      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             968          (II) state or federal law provides otherwise.
             969          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
             970      seller's regular course of business includes books and records the seller keeps in the regular
             971      course of business for nontax purposes.
             972          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
             973      and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
             974      product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
             975      of tangible personal property, other property, a product, or a service that is not subject to
             976      taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
             977      the seller, at the time of the transaction:
             978          (A) separately states the portion of the transaction that is not subject to taxation under
             979      this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
             980          (B) is able to identify by reasonable and verifiable standards, from the books and
             981      records the seller keeps in the seller's regular course of business, the portion of the transaction


             982      that is not subject to taxation under this chapter.
             983          (ii) A purchaser and a seller may correct the taxability of a transaction if:
             984          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
             985      the transaction that is not subject to taxation under this chapter was not separately stated on an
             986      invoice, bill of sale, or similar document provided to the purchaser because of an error or
             987      ignorance of the law; and
             988          (B) the seller is able to identify by reasonable and verifiable standards, from the books
             989      and records the seller keeps in the seller's regular course of business, the portion of the
             990      transaction that is not subject to taxation under this chapter.
             991          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
             992      in the seller's regular course of business includes books and records the seller keeps in the
             993      regular course of business for nontax purposes.
             994          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
             995      personal property, products, or services that are subject to taxation under this chapter at
             996      different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
             997      unless the seller, at the time of the transaction:
             998          (A) separately states the items subject to taxation under this chapter at each of the
             999      different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
             1000          (B) is able to identify by reasonable and verifiable standards the tangible personal
             1001      property, product, or service that is subject to taxation under this chapter at the lower tax rate
             1002      from the books and records the seller keeps in the seller's regular course of business.
             1003          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
             1004      seller's regular course of business includes books and records the seller keeps in the regular
             1005      course of business for nontax purposes.
             1006          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
             1007      rate imposed under the following shall take effect on the first day of a calendar quarter:
             1008          (i) Subsection (2)(a)(i)(A);
             1009          (ii) Subsection (2)(b)(i);


             1010          (iii) Subsection (2)(c)(i); or
             1011          (iv) Subsection (2)(d)(i)(A)(I).
             1012          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
             1013      begins on or after the effective date of the tax rate increase if the billing period for the
             1014      transaction begins before the effective date of a tax rate increase imposed under:
             1015          (A) Subsection (2)(a)(i)(A);
             1016          (B) Subsection (2)(b)(i);
             1017          (C) Subsection (2)(c)(i); or
             1018          (D) Subsection (2)(d)(i)(A)(I).
             1019          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             1020      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             1021      or the tax rate decrease imposed under:
             1022          (A) Subsection (2)(a)(i)(A);
             1023          (B) Subsection (2)(b)(i);
             1024          (C) Subsection (2)(c)(i); or
             1025          (D) Subsection (2)(d)(i)(A)(I).
             1026          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
             1027      computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
             1028      change in a tax rate takes effect:
             1029          (A) on the first day of a calendar quarter; and
             1030          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1031          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
             1032          (A) Subsection (2)(a)(i)(A);
             1033          (B) Subsection (2)(b)(i);
             1034          (C) Subsection (2)(c)(i); or
             1035          (D) Subsection (2)(d)(i)(A)(I).
             1036          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1037      the commission may by rule define the term "catalogue sale."


             1038          (3) (a) The following state taxes shall be deposited into the General Fund:
             1039          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1040          (ii) the tax imposed by Subsection (2)(b)(i);
             1041          (iii) the tax imposed by Subsection (2)(c)(i); or
             1042          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1043          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1044      in this chapter:
             1045          (i) the tax imposed by Subsection (2)(a)(ii);
             1046          (ii) the tax imposed by Subsection (2)(b)(ii);
             1047          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1048          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             1049          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1050      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1051      through (g):
             1052          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1053          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             1054          (B) for the fiscal year; or
             1055          (ii) $17,500,000.
             1056          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1057      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1058      Department of Natural Resources to:
             1059          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             1060      protect sensitive plant and animal species; or
             1061          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1062      act, to political subdivisions of the state to implement the measures described in Subsections
             1063      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             1064          (ii) Money transferred to the Department of Natural Resources under Subsection
             1065      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other


             1066      person to list or attempt to have listed a species as threatened or endangered under the
             1067      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1068          (iii) At the end of each fiscal year:
             1069          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1070      Conservation and Development Fund created in Section 73-10-24 ;
             1071          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1072      Program Subaccount created in Section 73-10c-5 ; and
             1073          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1074      Program Subaccount created in Section 73-10c-5 .
             1075          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1076      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1077      created in Section [ 4-18-6 ] 4-18-106 .
             1078          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1079      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1080      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1081      water rights.
             1082          (ii) At the end of each fiscal year:
             1083          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1084      Conservation and Development Fund created in Section 73-10-24 ;
             1085          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1086      Program Subaccount created in Section 73-10c-5 ; and
             1087          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1088      Program Subaccount created in Section 73-10c-5 .
             1089          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1090      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1091      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1092          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1093      Development Fund under Section 73-10-24 , the Water Resources Conservation and


             1094      Development Fund may also be used to:
             1095          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1096      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1097      quantifying surface and ground water resources and describing the hydrologic systems of an
             1098      area in sufficient detail so as to enable local and state resource managers to plan for and
             1099      accommodate growth in water use without jeopardizing the resource;
             1100          (B) fund state required dam safety improvements; and
             1101          (C) protect the state's interest in interstate water compact allocations, including the
             1102      hiring of technical and legal staff.
             1103          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1104      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1105      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1106          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1107      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             1108      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1109          (i) provide for the installation and repair of collection, treatment, storage, and
             1110      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1111          (ii) develop underground sources of water, including springs and wells; and
             1112          (iii) develop surface water sources.
             1113          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1114      2006, the difference between the following amounts shall be expended as provided in this
             1115      Subsection (5), if that difference is greater than $1:
             1116          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1117      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1118          (ii) $17,500,000.
             1119          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1120          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1121      credits; and


             1122          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1123      restoration.
             1124          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1125      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1126      created in Section 73-10-24 .
             1127          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1128      remaining difference described in Subsection (5)(a) shall be:
             1129          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1130      credits; and
             1131          (B) expended by the Division of Water Resources for cloud-seeding projects
             1132      authorized by Title 73, Chapter 15, Modification of Weather.
             1133          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1134      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1135      created in Section 73-10-24 .
             1136          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1137      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1138      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1139      Division of Water Resources for:
             1140          (i) preconstruction costs:
             1141          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1142      26, Bear River Development Act; and
             1143          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1144      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1145          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1146      Chapter 26, Bear River Development Act;
             1147          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1148      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1149          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and


             1150      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1151          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1152      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             1153      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1154      incurred for employing additional technical staff for the administration of water rights.
             1155          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             1156      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             1157      Fund created in Section 73-10-24 .
             1158          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1159      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1160      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1161      the Transportation Fund created by Section 72-2-102 .
             1162          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             1163      Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
             1164      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1165      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             1166          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             1167      Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
             1168      2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             1169      created by Section 72-2-124 :
             1170          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             1171      the revenues collected from the following taxes, which represents a portion of the
             1172      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1173      on vehicles and vehicle-related products:
             1174          (A) the tax imposed by Subsection (2)(a)(i)(A);
             1175          (B) the tax imposed by Subsection (2)(b)(i);
             1176          (C) the tax imposed by Subsection (2)(c)(i); and
             1177          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus


             1178          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             1179      current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
             1180      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             1181      (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
             1182          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
             1183      the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
             1184      lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
             1185      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             1186      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             1187      (8)(a) equal to the product of:
             1188          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
             1189      previous fiscal year; and
             1190          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             1191      (8)(a)(i)(A) through (D) in the current fiscal year.
             1192          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             1193      Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
             1194      described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
             1195      Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
             1196      Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
             1197          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             1198      from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
             1199      under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
             1200      collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
             1201      current fiscal year under Subsection (8)(a).
             1202          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
             1203      Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
             1204      Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
             1205      Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section


             1206      72-2-124 .
             1207          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             1208      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             1209      created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009 .
             1210          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
             1211      and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
             1212      1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             1213      created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
             1214      transactions described in Subsection (1).
             1215          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
             1216      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             1217      charged for food and food ingredients, except for tax revenue generated by a bundled
             1218      transaction attributable to food and food ingredients and tangible personal property other than
             1219      food and food ingredients described in Subsection (2)(d).
             1220          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             1221      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             1222      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             1223      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             1224      chokepoints in construction management.
             1225          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             1226      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             1227      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             1228      and food ingredients and tangible personal property other than food and food ingredients
             1229      described in Subsection (2)(d).
             1230          Section 13. Section 63A-3-205 is amended to read:
             1231           63A-3-205. Revolving loan funds -- Standards and procedures -- Annual report.
             1232          (1) As used in this section, "revolving loan fund" means:
             1233          (a) the Water Resources Conservation and Development Fund, created in Section


             1234      73-10-24 ;
             1235          (b) the Water Resources Construction Fund, created in Section 73-10-8 ;
             1236          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
             1237          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean
             1238      Fuels and Vehicle Technology Program Act;
             1239          (e) the Water Development Security Fund and its subaccounts, created in Section
             1240      73-10c-5 ;
             1241          (f) the Agriculture Resource Development Fund, created in Section [ 4-18-6 ] 4-18-106 ;
             1242          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             1243          (h) the Permanent Community Impact Fund, created in Section 35A-8-603 ;
             1244          (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;
             1245          (j) the Uintah Basin Revitalization Fund, created in Section 35A-8-1602 ;
             1246          (k) the Navajo Revitalization Fund, created in Section 35A-8-1704 ; and
             1247          (l) the Energy Efficiency Fund, created in Section 11-45-201 .
             1248          (2) The division shall for each revolving loan fund:
             1249          (a) make rules establishing standards and procedures governing:
             1250          (i) payment schedules and due dates;
             1251          (ii) interest rate effective dates;
             1252          (iii) loan documentation requirements; and
             1253          (iv) interest rate calculation requirements; and
             1254          (b) make an annual report to the Legislature containing:
             1255          (i) the total dollars loaned by that fund during the last fiscal year;
             1256          (ii) a listing of each loan currently more than 90 days delinquent, in default, or that was
             1257      restructured during the last fiscal year;
             1258          (iii) a description of each project that received money from that revolving loan fund;
             1259          (iv) the amount of each loan made to that project;
             1260          (v) the specific purpose for which the proceeds of the loan were to be used, if any;
             1261          (vi) any restrictions on the use of the loan proceeds;


             1262          (vii) the present value of each loan at the end of the fiscal year calculated using the
             1263      interest rate paid by the state on the bonds providing the revenue on which the loan is based or,
             1264      if that is unknown, on the average interest rate paid by the state on general obligation bonds
             1265      issued during the most recent fiscal year in which bonds were sold; and
             1266          (viii) the financial position of each revolving loan fund, including the fund's cash
             1267      investments, cash forecasts, and equity position.
             1268          Section 14. Section 63B-1b-102 is amended to read:
             1269           63B-1b-102. Definitions.
             1270          As used in this chapter:
             1271          (1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
             1272      representing loans or grants made by an authorizing agency.
             1273          (2) "Authorized official" means the state treasurer or other person authorized by a bond
             1274      document to perform the required action.
             1275          (3) "Authorizing agency" means the board, person, or unit with legal responsibility for
             1276      administering and managing revolving loan funds.
             1277          (4) "Bond document" means:
             1278          (a) a resolution of the commission; or
             1279          (b) an indenture or other similar document authorized by the commission that
             1280      authorizes and secures outstanding revenue bonds from time to time.
             1281          (5) "Commission" means the State Bonding Commission, created in Section
             1282      63B-1-201 .
             1283          (6) "Revenue bonds" means any special fund revenue bonds issued under this chapter.
             1284          (7) "Revolving Loan Funds" means:
             1285          (a) the Water Resources Conservation and Development Fund, created in Section
             1286      73-10-24 ;
             1287          (b) the Water Resources Construction Fund, created in Section 73-10-8 ;
             1288          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
             1289          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean


             1290      Fuels and Vehicle Technology Program Act;
             1291          (e) the Water Development Security Fund and its subaccounts, created in Section
             1292      73-10c-5 ;
             1293          (f) the Agriculture Resource Development Fund, created in Section [ 4-18-6 ] 4-18-106 ;
             1294          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             1295          (h) the Permanent Community Impact Fund, created in Section 35A-8-303 ;
             1296          (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
             1297          (j) the Transportation Infrastructure Loan Fund, created in Section 72-2-202 .
             1298          Section 15. Section 63B-1b-202 is amended to read:
             1299           63B-1b-202. Custodial officer -- Powers and duties.
             1300          (1) (a) There is created within the Division of Finance an officer responsible for the
             1301      care, custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust
             1302      documents, and other evidences of indebtedness:
             1303          (i) owned or administered by the state or any of its agencies; and
             1304          (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.
             1305          (b) Notwithstanding Subsection (1)(a), the officer described in Subsection (1)(a) is not
             1306      responsible for the care, custody, safekeeping, collection, and accounting of a bond, note,
             1307      contract, trust document, or other evidence of indebtedness relating to the:
             1308          (i) Agriculture Resource Development Fund, created in Section [ 4-18-6 ] 4-18-106 ;
             1309          (ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             1310          (iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;
             1311          (iv) Olene Walker Housing Loan Fund, created in Section 35A-8-502 ;
             1312          (v) Business Development for Disadvantaged Rural Communities Restricted Account,
             1313      created in Section 63M-1-2003 ; and
             1314          (vi) Brownfields Fund, created in Section 19-8-120 .
             1315          (2) (a) Each authorizing agency shall deliver to this officer for the officer's care,
             1316      custody, safekeeping, collection, and accounting all bonds, notes, contracts, trust documents,
             1317      and other evidences of indebtedness:


             1318          (i) owned or administered by the state or any of its agencies; and
             1319          (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.
             1320          (b) This officer shall:
             1321          (i) establish systems, programs, and facilities for the care, custody, safekeeping,
             1322      collection, and accounting for the bonds, notes, contracts, trust documents, and other evidences
             1323      of indebtedness submitted to the officer under this Subsection (2); and
             1324          (ii) shall make available updated reports to each authorizing agency as to the status of
             1325      loans under their authority.
             1326          (3) The officer described in Section 63B-1b-201 shall deliver to the officer described in
             1327      Subsection (1)(a) for the care, custody, safekeeping, collection, and accounting by the officer
             1328      described in Subsection (1)(a) of all bonds, notes, contracts, trust documents, and other
             1329      evidences of indebtedness closed as provided in Subsection 63B-1b-201 (2)(b).
             1330          Section 16. Effective dates.
             1331          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2013.
             1332          (2) The actions affecting Section 59-12-103 (Effective 07/01/14) take effect on July 1,
             1333      2014.


[Bill Documents][Bills Directory]