S.B. 123

             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 wholesale
             43      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[.]; and
             51          (D) is substantially a wholesale electric power supplier that supplies minimal or no
             52      retail electric power service.
             53          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
             54      administer, receive, expend, appropriate, disburse, or have custody.
             55          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each
             56      term in Subsection (1)(d)(i), individually.
             57          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
             58      entity does not constitute the use of a public asset.


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


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




Legislative Review Note
    as of 1-9-14 2:24 PM


Office of Legislative Research and General Counsel


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