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MINUTES OF THE HOUSE
ECONOMIC DEVELOPMENT AND
WORKFORCE SERVICES STANDING COMMITTEE
Room 25 House Building
February 18, 2014

Members Present:        Rep. Becky Edwards, Chair
                Rep. Rich Cunningham, Vice Chair
                Rep. Jim Bird
                Rep. Richard A. Greenwood
                Rep. Lynn N. Hemingway
                Rep. Bradley G. Last
                Rep. Rhonda Rudd Menlove
                Rep. Merrill F. Nelson
                Rep. Curt Oda
                Rep. Angela Romero
                Rep. Brad R. Wilson     

Staff Present:        Ben Christensen, Policy Analyst
                Rosemary Young, Committee Secretary

Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Vice Chair Cunningham called the meeting to order at 2:20 p.m.

MOTION:    Rep. Oda moved to approve the minutes of the February 14, 2014 meeting. The motion passed unanimously.

H.B. 356    New Convention Hotel Development Incentive Provisions (Rep. B. Wilson)

MOTION:    Rep. Wilson moved to amend H.B. 356 as follows:

1.    Page 3, Lines 70 through 71 :    

             70          (3) in the amount of 5% of the state portion, as defined in Section 63M-1-3402
{   , of the

             71      tax credit, as defined in Section 63M-1-3402 , awarded by the tax credit certificate   } .

2.    Page 3, Lines 75 through 81 :    

             75          
{   (a) "Eligibility period" has the same meaning as defined in Section 63M-1-3402 .   }

             76          
{   (b)   }        (a)       "Office" means the Governor's Office of Economic Development.

             77          
{   (c)   }        (b)       "Pass-through entity" has the same meaning as defined in Section 59-10-1402 .

             78
         
{   (d)   }        (c)       "Pass-through entity taxpayer" has the same meaning as defined in Section

             79      59-10-1402 .
             80          
{   (e)   }        (d)       "Tax credit certificate" has the same meaning as defined in Section 63M-1-3402 .

             81          
{   (f)   }        (e)       "Tax credit recipient" has the same meaning as defined in Section 63M-1-3402 .


3.    Page 4, Lines 110 through 116 :    

             110          
{   (a) "Eligibility period" has the same meaning as defined in Section 63M-1-3402 .   }

             111          
{   (b)   }        (a)       "Office" means the Governor's Office of Economic Development.

             112          
{   (c)   }        (b)       "Pass-through entity" has the same meaning as defined in Section 59-10-1402 .

             113          
{   (d)   }        (c)       "Pass-through entity taxpayer" has the same meaning as defined in Section

             114      59-10-1402 .
             115          
{   (e)   }        (d)       "Tax credit certificate" has the same meaning as defined in Section 63M-1-3402 .

             116          
{   (f)   }        (e)       "Tax credit recipient" has the same meaning as defined in Section 63M-1-3402 .


4.    Page 7, Line 199 :    

             199          (ii) ends
  :

    (A) for purposes of the state portion,  
20 years after the date of initial occupancy of that qualified hotel; or

    
  (B) for purposes of the local portion, 25 years after the date of initial occupancy of that hotel; or      


5.    Page 8, Line 221 :    

             221          (10) "Local portion" means
  :

    (a)  
the portion of new tax revenue that is not the state portion      {   .   }        ; and

    (b) incremental property tax revenue.  


6.    Page 8, Line 226 :    


             226      subcontractors;
{   and   }


7.    Page 8, Line 228 :    

             228      and Use Tax Act, on transactions occurring on hotel property during the eligibility period
{   .   }        ; and

    (c) all incremental new revenue generated from a tax under Title 59, Chapter 12, Sales and Use Tax Act, on transactions by a third-party seller occurring other than on hotel property during the eligibility period, if:
    (i) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act; and
    (ii) the third-party seller voluntarily consents to the disclosure of information to the office, as provided in Subsection 63M-1-3405(1)(b)(i)(E).  


8.    Page 9, Line 260 :    

             260      certificate.
    
  (22) "Third-party seller" means a person who is a seller in a transaction:

    (a) occurring other than on hotel property;
    (b) that is:
    (i) the sale, rental, or lease of a room or of convention or exhibit space or other facilities on hotel property; or
    (ii) the sale of tangible personal property or a service on hotel property; and
    (c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.  


9.    Page 12, Lines 346 through 347 :    

             346     
{   and   }

    
  (E) a document in which a third-party seller expressly and voluntarily directs and authorizes the commission to disclose to the office the third-party seller's tax returns and other information that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code, and that shows the amount of tax under Title 59, Chapter 12, Sales and Use Tax Act, that the third-party seller has collected in a transaction occurring other than on hotel property for the sale, rental, or lease of a room or of convention or exhibit space or other facilities on hotel property or for the sale of tangible personal property or a service on hotel property; and      

             347          
{   (E)   }        (F)       documentation verifying that the qualified hotel owner has



satisfied the

10.    Page 15, Lines 455 through 458 :    

             455          
{   (6) The Division of Finance shall:

             456          (a) certify money deposited into the account as set aside for the account; and
             457          (b) report money deposited into the account to the Office of the Legislative Fiscal
             458      Analyst.   }

11.    Page 16, Line 465 :    

             465      meeting space on hotel property
  , including any associated labor and overhead       ; or


The motion passed unanimously with Rep. Bird, Rep. Greenwood, Rep. Oda, and Rep. Romero absent for the vote.

Rep. Wilson explained the bill to the committee assisted by:

    Christina Oliver, Salt Lake County Economic Development Director
    Ken Bullock, Utah League of Cities and Towns
    Ben McAdams, Salt Lake County Mayor
    Linda Wardell, City Creek Center
    Scott Beck, Visit Salt Lake

MOTION:    Rep. Bird moved to amend H.B. 356 as follows:

1. Page 1, Line 1:

             1     
NEW CONVENTION
{   HOTEL   }        FACILITY       DEVELOPMENT INCENTIVE


2. Page 1, Lines 11 through 15:

             11          This bill enacts provisions relating to incentives for the development of a new
             12      convention
{   hotel   }        facility       .

             13      Highlighted Provisions:
             14          This bill:
             15          .    enacts the New Convention
{   Hotel   }        Facility       Development Incentive Act;

3. Page 7, Line 186:


             186          This part is known as the "New Convention
{   Hotel   }        Facility       Development Incentive Act."


The motion passed unanimously with Rep. Greenwood and Rep. Oda absent for the vote.

Spoke for the bill:        Jason Mathis, Downtown Alliance
                Cliff Doner, Visit Salt Lake
                Stan Castleton, DDRM Companies

Spoke against the bill:    Royce Van Tassel, Utah Taxpayers Association
                Jordan Garn, Utah Hotel and Lodging Association
                Clint Ensign, Sinclair Co, Grand America and Little America                     Hotels
                Tyson Lybbert, Marriott City Center

MOTION:    Rep. Last moved to pass out favorably H.B. 356. The motion passed unanimously with Rep. Greenwood and Rep. Oda absent for the vote.

H.B. 197    Daylight Saving Time Study (Rep. R. Menlove)

Rep. Menlove distributed an untitled handout which consisted of a petition signed by senior citizens in Box Elder county.

MOTION:    Rep. Bird moved to amend H.B. 197 as follows:

1.    Page 2, Lines 49 through 50 :    

             49          (e) report on the summary to the Government Operations Interim Committee
  and the Economic Development and Workforce Services Interim Committee       no later

             50      than November 1, 2014.
The motion passed unanimously with Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for the vote.

MOTION:    Rep. Bird moved to amend H.B. 197 as follows:

1. Page 1, Lines 16 through 17

             16          .    requires the Governor's Office of Economic Development to report on the meeting
             17      to the Government Operations Interim Committee
  and the Economic Development and Workforce Services Interim Committee       .

The motion passed unanimously with Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for the vote.


Rep. Menlove explained the bill to the committee.

MOTION:    Rep. Last moved to pass out favorably H.B. 197. The motion passed with Rep. Nelson and Rep. Hemingway voting in opposition and Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for the vote.

MOTION:    Rep. Bird moved to adjourn. The motion passed unanimously with Rep. Greenwood, Rep. Oda, and Rep. Wilson absent for the vote.

Vice Chair Cunningham adjourned the meeting at 4:05 P.M.








Rep. Becky Edwards, Chair