S.B. 123 Enrolled

             1     

INTERLOCAL COOPERATION ACT REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Ryan D. Wilcox

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to a taxed interlocal entity.
             10      Highlighted Provisions:
             11          This bill:
             12          .    amends the definition of taxed interlocal entity.
             13      Money Appropriated in this Bill:
             14          None
             15      Other Special Clauses:
             16          None
             17      Utah Code Sections Affected:
             18      AMENDS:
             19           11-13-315 , as enacted by Laws of Utah 2013, Chapter 230
             20     
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 11-13-315 is amended to read:
             23           11-13-315. Taxed interlocal entity.
             24          (1) As used in this section:
             25          (a) "Asset" means funds, money, an account, real or personal property, or personnel.
             26          (b) "Public asset" means:
             27          (i) an asset used by a public entity;
             28          (ii) tax revenue;
             29          (iii) state funds; or


             30          (iv) public funds.
             31          (c) (i) "Taxed interlocal entity" means a project entity that:
             32          (A) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3,
             33      Project Entity Provisions;
             34          (B) does not receive a payment of funds from a federal agency or office, state agency or
             35      office, political subdivision, or other public agency or office other than a payment that does not
             36      materially exceed the greater of the fair market value and the cost of a service provided or
             37      property conveyed by the project entity; and
             38          (C) does not receive, expend, or have the authority to compel payment from tax
             39      revenue.
             40          (ii) [Before and on May 1, 2014, "taxed] "Taxed interlocal entity" includes an
             41      interlocal entity that:
             42          (A) [(I)] was created before 1981 for the purpose of providing power supply at
             43      wholesale to its members; [or]
             44          [(II) is described in Subsection 11-13-204 (7);]
             45          (B) does not receive a payment of funds from a federal agency or office, state agency or
             46      office, political subdivision, or other public agency or office other than a payment that does not
             47      materially exceed the greater of the fair market value and the cost of a service provided or
             48      property conveyed by the interlocal entity; and
             49          (C) does not receive, expend, or have the authority to compel payment from tax
             50      revenue.
             51          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
             52      administer, receive, expend, appropriate, disburse, or have custody.
             53          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each
             54      term in Subsection (1)(d)(i), individually.
             55          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
             56      entity does not constitute the use of a public asset.
             57          (3) Notwithstanding any other provision of law, a taxed interlocal entity's use of an


             58      asset that was a public asset prior to the taxed interlocal entity's use of the asset does not
             59      constitute a taxed interlocal entity's use of a public asset.
             60          (4) Notwithstanding any other provision of law, an official of a project entity is not a
             61      public treasurer.
             62          (5) Notwithstanding any other provision of law, a taxed interlocal entity's governing
             63      body, as described in Section 11-13-206 , shall determine and direct the use of an asset by the
             64      taxed interlocal entity.
             65          (6) (a) A taxed interlocal entity is not subject to the provisions of Title 63G, Chapter
             66      6a, Utah Procurement Code.
             67          (b) An agent of a taxed interlocal entity is not an external procurement unit as defined
             68      in Section 63G-6a-104 .
             69          (7) (a) A taxed interlocal entity is not a participating local entity as defined in Section
             70      63A-3-401 .
             71          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall
             72      provide:
             73          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
             74      year and the prior fiscal year, including the taxed interlocal entity's balance sheet as of the end
             75      of the fiscal year and the prior fiscal year, and the related statements of revenues and expenses
             76      and of cash flows for the fiscal year; and
             77          (ii) the accompanying auditor's report and management's discussion and analysis with
             78      respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
             79      year.
             80          (c) The taxed interlocal entity shall provide the information described in Subsections
             81      (7)(b)(i) and (b)(ii):
             82          (i) in a manner described in Subsection 63A-3-405 (3); and
             83          (ii) within a reasonable time after the taxed interlocal entity's independent auditor
             84      delivers to the taxed interlocal entity's governing body the auditor's report with respect to the
             85      financial statements for and as of the end of the fiscal year.


             86          (d) Notwithstanding Subsections (7)(b) and (c) or a taxed interlocal entity's compliance
             87      with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
             88          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
             89      Finance; and
             90          (ii) the information described in Subsection (7)(b)(i) or (ii) does not constitute public
             91      financial information as defined in Section 63A-3-401 .
             92          (8) (a) A taxed interlocal entity's governing body is not a governing board as defined in
             93      Section 51-2a-102 .
             94          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
             95      Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
             96      Entities Act.


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