H.B. 40 Enrolled

             1     

BEER EXCISE TAX REVENUE AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jack R. Draxler

             5     
Senate Sponsor: Allen M. Christensen

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act and the Substance Abuse and
             10      Mental Health Act to address the use of beer excise tax revenues to prevent abuse of
             11      alcohol and other substances.
             12      Highlighted Provisions:
             13          This bill:
             14          .    expands the scope of the Alcoholic Beverage Enforcement and Treatment Restricted
             15      Account to become the Alcoholic Beverage and Substance Abuse Enforcement and
             16      Treatment Restricted Account;
             17          .    modifies definition provisions;
             18          .    encourages the most effective formula allocation in relationship to prevention;
             19          .    addresses preparation of forms;
             20          .    grants rulemaking authority; and
             21          .    makes technical and conforming amendments.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill takes effect on July 1, 2014.
             26      Utah Code Sections Affected:
             27      AMENDS:
             28           32B-2-401 , as enacted by Laws of Utah 2010, Chapter 276
             29           32B-2-402 , as last amended by Laws of Utah 2011, Chapter 307


             30           32B-2-403 , as enacted by Laws of Utah 2010, Chapter 276
             31           32B-2-404 , as last amended by Laws of Utah 2011, Chapter 307
             32           62A-15-103 , as last amended by Laws of Utah 2013, Chapters 17, 167, and 400
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 32B-2-401 is amended to read:
             36     
Part 4. Alcoholic Beverage and Substance Abuse Enforcement and

             37     
Treatment Restricted Account Act

             38           32B-2-401. Title.
             39          This part is known as the "Alcoholic Beverage and Substance Abuse Enforcement and
             40      Treatment Restricted Account Act."
             41          Section 2. Section 32B-2-402 is amended to read:
             42           32B-2-402. Definitions -- Calculations.
             43          (1) As used in this part:
             44          (a) "Account" means the Alcoholic Beverage and Substance Abuse Enforcement and
             45      Treatment Restricted Account created in Section 32B-2-403 .
             46          (b) "Advisory council" means the Utah Substance Abuse Advisory Council created in
             47      Section 63M-7-301 .
             48          (c) "Alcohol-related offense" means:
             49          (i) a violation of:
             50          (A) Section 41-6a-502 ; or
             51          (B) an ordinance that complies with the requirements of:
             52          (I) Subsection 41-6a-510 (1); or
             53          (II) Section 76-5-207 ; or
             54          (ii) an offense involving the illegal:
             55          (A) sale of an alcoholic product;
             56          (B) consumption of an alcoholic product;
             57          (C) distribution of an alcoholic product;


             58          (D) transportation of an alcoholic product; or
             59          (E) possession of an alcoholic product.
             60          (d) "Annual conviction time period" means the time period that:
             61          (i) begins on July 1 and ends on June 30; and
             62          (ii) immediately precedes the fiscal year for which an appropriation under this part is
             63      made.
             64          (e) "Municipality" means:
             65          (i) a city; or
             66          (ii) a town.
             67          (f) (i) "Prevention" is as defined by rule, in accordance with Title 63G, Chapter 3, Utah
             68      Administrative Rulemaking Act, by the Division of Substance Abuse and Mental Health within
             69      the Department of Human Services.
             70          (ii) In defining the term "prevention," the Division of Substance Abuse and Mental
             71      Health shall:
             72          (A) include only evidence-based or evidence-informed programs; and
             73          (B) provide for coordination with local substance abuse authorities designated to
             74      provide substance abuse services in accordance with Section 17-43-201 .
             75          (2) For purposes of Subsection 32B-2-404 (1)(b)(iii), the number of premises located
             76      within the limits of a municipality or county:
             77          (a) is the number determined by the department to be so located;
             78          (b) includes the aggregate number of premises of the following:
             79          (i) a state store;
             80          (ii) a package agency; and
             81          (iii) a retail licensee; and
             82          (c) for a county, consists only of the number located within an unincorporated area of
             83      the county.
             84          (3) The department shall determine:
             85          (a) a population figure according to the most current population estimate prepared by


             86      the Utah Population Estimates Committee;
             87          (b) a county's population for the 25% distribution to municipalities and counties under
             88      Subsection 32B-2-404 (1)(b)(i) only with reference to the population in the unincorporated
             89      areas of the county; and
             90          (c) a county's population for the 25% distribution to counties under Subsection
             91      32B-2-404 (1)(b)(iv) only with reference to the total population in the county, including that of
             92      a municipality.
             93          (4) (a) A conviction occurs in the municipality or county that actually prosecutes the
             94      offense to judgment.
             95          (b) If a conviction is based upon a guilty plea, the conviction is considered to occur in
             96      the municipality or county that, except for the guilty plea, would have prosecuted the offense.
             97          Section 3. Section 32B-2-403 is amended to read:
             98           32B-2-403. Alcoholic Beverage and Substance Abuse Enforcement and
             99      Treatment Restricted Account created.
             100          (1) (a) There is created in the General Fund a restricted account known as the
             101      "Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account."
             102          (b) The account is funded from:
             103          (i) money deposited by the state treasurer in accordance with Section 59-15-109 ;
             104          (ii) appropriations made to the account by the Legislature; and
             105          (iii) interest described in Subsection (1)(c).
             106          (c) Interest earned on the account shall be deposited into the account.
             107          (2) (a) Consistent with the policies provided in Subsection 32B-1-103 (4)(b), money in
             108      the account shall be used for statewide public purposes, including promoting the reduction of
             109      the harmful effects of substance abuse, over consumption of alcoholic products by an adult,
             110      and alcohol consumption by minors, by exclusively funding programs or projects related to
             111      prevention, treatment, detection, prosecution, and control of violations of this title and other
             112      offenses in which alcohol or substance abuse is a contributing factor except as provided in
             113      Subsection (2)(b).


             114          (b) The portion distributed under this part to a county may also be used for the
             115      confinement or treatment of persons arrested for or convicted of offenses in which alcohol or
             116      substance abuse is a contributing factor.
             117          (c) A municipality or county entitled to receive money shall use the money exclusively
             118      as required by this Subsection (2).
             119          (3) The appropriations provided for under Section 32B-2-404 are:
             120          (a) intended to supplement the budget of the appropriate agencies of each municipality
             121      and county within the state to enable the municipalities and counties to more effectively fund
             122      the programs and projects described in Subsection (2); and
             123          (b) not intended to replace money that would otherwise be allocated for the programs
             124      and projects in Subsection (2).
             125          (4) It is the intent of the Legislature that the appropriations distributed under this part
             126      be used to fund a balanced approach to reducing the harmful effects of substance abuse, over
             127      consumption of alcoholic products by adults, and alcohol consumption by minors. To this end,
             128      the Legislature encourages municipalities and counties receiving money under this part to use
             129      the most effective formula allocation to fund evidence-based and evidence-informed
             130      prevention programs.
             131          Section 4. Section 32B-2-404 is amended to read:
             132           32B-2-404. Alcoholic Beverage and Substance Abuse Enforcement and
             133      Treatment Restricted Account distribution.
             134          (1) (a) The money deposited into the account under Section 32B-2-403 shall be
             135      distributed to municipalities and counties:
             136          (i) to the extent appropriated by the Legislature, except that the Legislature shall
             137      appropriate each fiscal year an amount equal to at least the amount deposited in the account in
             138      accordance with Section 59-15-109 ; and
             139          (ii) as provided in this Subsection (1).
             140          (b) The amount appropriated from the account shall be distributed as follows:
             141          (i) 25% to municipalities and counties on the basis of the percentage of the state


             142      population residing in each municipality and county;
             143          (ii) 30% to municipalities and counties on the basis of each municipality's and county's
             144      percentage of the statewide convictions for all alcohol-related offenses;
             145          (iii) 20% to municipalities and counties on the basis of the percentage of the following
             146      in the state that are located in each municipality and county:
             147          (A) state stores;
             148          (B) package agencies;
             149          (C) retail licensees; and
             150          (D) off-premise beer retailers; and
             151          (iv) 25% to the counties for confinement and treatment purposes authorized by this part
             152      on the basis of the percentage of the state population located in each county.
             153          (c) (i) Except as provided in Subsection (1)(c)(ii), if a municipality does not have a law
             154      enforcement agency:
             155          (A) the municipality may not receive money under this part; and
             156          (B) the State Tax Commission:
             157          (I) may not distribute the money the municipality would receive but for the
             158      municipality not having a law enforcement agency to that municipality; and
             159          (II) shall distribute the money that the municipality would have received but for it not
             160      having a law enforcement agency to the county in which the municipality is located for use by
             161      the county in accordance with this part.
             162          (ii) If the advisory council finds that a municipality described in Subsection (1)(c)(i)
             163      demonstrates that the municipality can use the money that the municipality is otherwise eligible
             164      to receive in accordance with this part, the advisory council may direct the State Tax
             165      Commission to distribute the money to the municipality.
             166          (2) To determine the distribution required by Subsection (1)(b)(ii), the State Tax
             167      Commission shall annually:
             168          (a) for an annual conviction time period:
             169          (i) multiply by two the total number of convictions in the state obtained during the


             170      annual conviction time period for violation of:
             171          (A) Section 41-6a-502 ; or
             172          (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
             173      Section 76-5-207 ; and
             174          (ii) add to the number calculated under Subsection (2)(a)(i) the number of convictions
             175      obtained during the annual conviction time period for the alcohol-related offenses other than
             176      the alcohol-related offenses described in Subsection (2)(a)(i);
             177          (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
             178      obtained in Subsection (2)(a); and
             179          (c) multiply the amount calculated under Subsection (2)(b), by the number of
             180      convictions obtained in each municipality and county during the annual conviction time period
             181      for alcohol-related offenses.
             182          (3) By not later than September 1 each year:
             183          (a) the state court administrator shall certify to the State Tax Commission the number
             184      of convictions obtained for alcohol-related offenses in each municipality or county in the state
             185      during the annual conviction time period; and
             186          (b) the advisory council shall notify the State Tax Commission of any municipality that
             187      does not have a law enforcement agency.
             188          (4) By not later than December 1 of each year, the advisory council shall notify the
             189      State Tax Commission for the fiscal year of appropriation of:
             190          (a) a municipality that may receive a distribution under Subsection (1)(c)(ii);
             191          (b) a county that may receive a distribution allocated to a municipality described in
             192      Subsection (1)(c)(i);
             193          (c) a municipality or county that may not receive a distribution because the advisory
             194      council has suspended the payment under Subsection 32B-2-405 (2)(a); and
             195          (d) a municipality or county that receives a distribution because the suspension of
             196      payment has been cancelled under Subsection 32B-2-405 (2).
             197          (5) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax


             198      Commission shall annually distribute to each municipality and county the portion of the
             199      appropriation that the municipality or county is eligible to receive under this part, except for
             200      any municipality or county that the advisory council notifies the State Tax Commission in
             201      accordance with Subsection (4) may not receive a distribution in that fiscal year.
             202          (b) (i) The [State Tax Commission] advisory council shall prepare forms for use by a
             203      municipality or county in applying for a distribution under this part.
             204          (ii) A form described in this Subsection (5) may require the submission of information
             205      the [State Tax Commission] advisory council considers necessary to enable the State Tax
             206      Commission to comply with this part.
             207          Section 5. Section 62A-15-103 is amended to read:
             208           62A-15-103. Division -- Creation -- Responsibilities.
             209          (1) There is created the Division of Substance Abuse and Mental Health within the
             210      department, under the administration and general supervision of the executive director. The
             211      division is the substance abuse authority and the mental health authority for this state.
             212          (2) The division shall:
             213          (a) (i) educate the general public regarding the nature and consequences of substance
             214      abuse by promoting school and community-based prevention programs;
             215          (ii) render support and assistance to public schools through approved school-based
             216      substance abuse education programs aimed at prevention of substance abuse;
             217          (iii) promote or establish programs for the prevention of substance abuse within the
             218      community setting through community-based prevention programs;
             219          (iv) cooperate and assist other organizations and private treatment centers for substance
             220      abusers, by providing them with essential materials for furthering programs of prevention and
             221      rehabilitation of actual and potential substance abusers;
             222          (v) promote integrated programs that address an individual's substance abuse, mental
             223      health, and physical healthcare needs;
             224          (vi) evaluate the effectiveness of programs described in Subsection (2);
             225          (vii) consider the impact of the programs described in Subsection (2) on:


             226          (A) emergency department utilization;
             227          (B) jail and prison populations;
             228          (C) the homeless population; and
             229          (D) the child welfare system; and
             230          (viii) promote or establish programs for education and certification of instructors to
             231      educate persons convicted of driving under the influence of alcohol or drugs or driving with
             232      any measurable controlled substance in the body;
             233          (b) (i) collect and disseminate information pertaining to mental health;
             234          (ii) provide direction over the state hospital including approval of its budget,
             235      administrative policy, and coordination of services with local service plans;
             236          (iii) promulgate rules in accordance with Title 63G, Chapter 3, Utah Administrative
             237      Rulemaking Act, to educate families concerning mental illness and promote family
             238      involvement, when appropriate, and with patient consent, in the treatment program of a family
             239      member; and
             240          (iv) promulgate rules in accordance with Title 63G, Chapter 3, Utah Administrative
             241      Rulemaking Act, to direct that all individuals receiving services through local mental health
             242      authorities or the Utah State Hospital be informed about and, if desired, provided assistance in
             243      completion of a declaration for mental health treatment in accordance with Section
             244      62A-15-1002 ;
             245          (c) (i) consult and coordinate with local substance abuse authorities and local mental
             246      health authorities regarding programs and services;
             247          (ii) provide consultation and other assistance to public and private agencies and groups
             248      working on substance abuse and mental health issues;
             249          (iii) promote and establish cooperative relationships with courts, hospitals, clinics,
             250      medical and social agencies, public health authorities, law enforcement agencies, education and
             251      research organizations, and other related groups;
             252          (iv) promote or conduct research on substance abuse and mental health issues, and
             253      submit to the governor and the Legislature recommendations for changes in policy and


             254      legislation;
             255          (v) receive, distribute, and provide direction over public funds for substance abuse and
             256      mental health services;
             257          (vi) monitor and evaluate programs provided by local substance abuse authorities and
             258      local mental health authorities;
             259          (vii) examine expenditures of any local, state, and federal funds;
             260          (viii) monitor the expenditure of public funds by:
             261          (A) local substance abuse authorities;
             262          (B) local mental health authorities; and
             263          (C) in counties where they exist, the private contract provider that has an annual or
             264      otherwise ongoing contract to provide comprehensive substance abuse or mental health
             265      programs or services for the local substance abuse authority or local mental health authorities;
             266          (ix) contract with local substance abuse authorities and local mental health authorities
             267      to provide a comprehensive continuum of services in accordance with division policy, contract
             268      provisions, and the local plan;
             269          (x) contract with private and public entities for special statewide or nonclinical services
             270      according to division rules;
             271          (xi) review and approve each local substance abuse authority's plan and each local
             272      mental health authority's plan in order to ensure:
             273          (A) a statewide comprehensive continuum of substance abuse services;
             274          (B) a statewide comprehensive continuum of mental health services;
             275          (C) services result in improved overall health and functioning; and
             276          (D) appropriate expenditure of public funds;
             277          (xii) review and make recommendations regarding each local substance abuse
             278      authority's contract with its provider of substance abuse programs and services and each local
             279      mental health authority's contract with its provider of mental health programs and services to
             280      ensure compliance with state and federal law and policy;
             281          (xiii) monitor and ensure compliance with division rules and contract requirements;


             282      and
             283          (xiv) withhold funds from local substance abuse authorities, local mental health
             284      authorities, and public and private providers for contract noncompliance, failure to comply
             285      with division directives regarding the use of public funds, or for misuse of public funds or
             286      money;
             287          (d) assure that the requirements of this part are met and applied uniformly by local
             288      substance abuse authorities and local mental health authorities across the state;
             289          (e) require each local substance abuse authority and each local mental health authority
             290      to submit its plan to the division by May 1 of each year; [and]
             291          (f) conduct an annual program audit and review of each local substance abuse authority
             292      in the state and its contract provider and each local mental health authority in the state and its
             293      contract provider, including:
             294          (i) a review and determination regarding whether:
             295          (A) public funds allocated to local substance abuse authorities and local mental health
             296      authorities are consistent with services rendered and outcomes reported by them or their
             297      contract providers; and
             298          (B) each local substance abuse authority and each local mental health authority is
             299      exercising sufficient oversight and control over public funds allocated for substance abuse and
             300      mental health programs and services; and
             301          (ii) items determined by the division to be necessary and appropriate[.]; and
             302          (g) define "prevention" by rule as required under Title 32B, Chapter 2, Part 4,
             303      Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account Act.
             304          (3) (a) The division may refuse to contract with and may pursue its legal remedies
             305      against any local substance abuse authority or local mental health authority that fails, or has
             306      failed, to expend public funds in accordance with state law, division policy, contract
             307      provisions, or directives issued in accordance with state law.
             308          (b) The division may withhold funds from a local substance abuse authority or local
             309      mental health authority if the authority's contract with its provider of substance abuse or mental


             310      health programs or services fails to comply with state and federal law or policy.
             311          (4) Before reissuing or renewing a contract with any local substance abuse authority or
             312      local mental health authority, the division shall review and determine whether the local
             313      substance abuse authority or local mental health authority is complying with its oversight and
             314      management responsibilities described in Sections 17-43-201 , 17-43-203 , 17-43-303 , and
             315      17-43-309 . Nothing in this Subsection (4) may be used as a defense to the responsibility and
             316      liability described in Section 17-43-303 and to the responsibility and liability described in
             317      Section 17-43-203 .
             318          (5) In carrying out its duties and responsibilities, the division may not duplicate
             319      treatment or educational facilities that exist in other divisions or departments of the state, but
             320      shall work in conjunction with those divisions and departments in rendering the treatment or
             321      educational services that those divisions and departments are competent and able to provide.
             322          (6) (a) The division may accept in the name of and on behalf of the state donations,
             323      gifts, devises, or bequests of real or personal property or services to be used as specified by the
             324      donor.
             325          (b) Those donations, gifts, devises, or bequests shall be used by the division in
             326      performing its powers and duties. Any money so obtained shall be considered private funds
             327      and shall be deposited into an interest-bearing expendable special revenue fund to be used by
             328      the division for substance abuse or mental health services. The state treasurer may invest the
             329      fund and all interest shall remain with the fund.
             330          (7) The division shall annually review with each local substance abuse authority and
             331      each local mental health authority the authority's statutory and contract responsibilities
             332      regarding:
             333          (a) the use of public funds;
             334          (b) oversight responsibilities regarding public funds; and
             335          (c) governance of substance abuse and mental health programs and services.
             336          (8) The Legislature may refuse to appropriate funds to the division upon the division's
             337      failure to comply with the provisions of this part.


             338          (9) If a local substance abuse authority contacts the division under Subsection
             339      17-43-201 (9) for assistance in providing treatment services to a pregnant woman or pregnant
             340      minor, the division shall:
             341          (a) refer the pregnant woman or pregnant minor to a treatment facility that has the
             342      capacity to provide the treatment services; or
             343          (b) otherwise ensure that treatment services are made available to the pregnant woman
             344      or pregnant minor.
             345          Section 6. Effective date.
             346          This bill takes effect on July 1, 2014.


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