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8 LONG TITLE
9 General Description:
10 This bill addresses provisions relating to incentives for the development of new
11 convention facilities.
12 Highlighted Provisions:
13 This bill:
14 ▸ modifies the incentive for the development of new convention facilities from an
15 income tax credit to payments of sales and use tax money from a restricted special
16 revenue fund;
17 ▸ provides for new tax revenue from a qualified hotel to be placed into a restricted
18 special revenue fund;
19 ▸ establishes a restricted special revenue fund and provides for its funding;
20 ▸ modifies duties of the independent review committee;
21 ▸ modifies provisions relating to the submission of a claim for a convention incentive
22 and the processing of a claim;
23 ▸ modifies provisions relating to incremental property tax revenue; and
24 ▸ modifies provisions relating to the authorized use of a convention incentive.
25 Money Appropriated in this Bill:
26 None
27 Other Special Clauses:
28 This bill provides a special effective date.
29 Utah Code Sections Affected:
30 AMENDS:
31 63M-1-3402, as enacted by Laws of Utah 2014, Chapter 429
32 63M-1-3403, as enacted by Laws of Utah 2014, Chapter 429
33 63M-1-3404, as enacted by Laws of Utah 2014, Chapter 429
34 63M-1-3405, as enacted by Laws of Utah 2014, Chapter 429
35 63M-1-3407, as enacted by Laws of Utah 2014, Chapter 429
36 63M-1-3408, as enacted by Laws of Utah 2014, Chapter 429
37 63M-1-3409, as enacted by Laws of Utah 2014, Chapter 429
38 63M-1-3410, as enacted by Laws of Utah 2014, Chapter 429
39 63M-1-3411, as enacted by Laws of Utah 2014, Chapter 429
40 63M-1-3412, as enacted by Laws of Utah 2014, Chapter 429
41 63M-1-3413, as enacted by Laws of Utah 2014, Chapter 429
42 ENACTS:
43 63M-1-3403.5, Utah Code Annotated 1953
44 REPEALS:
45 59-7-616, as enacted by Laws of Utah 2014, Chapter 429
46 59-10-1110, as enacted by Laws of Utah 2014, Chapter 429
47 63M-1-3406, as enacted by Laws of Utah 2014, Chapter 429
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 63M-1-3402 is amended to read:
51 63M-1-3402. Definitions.
52 As used in this part:
53 (1) "Agreement" means an agreement described in Section 63M-1-3403.
54 (2) "Base taxable value" means the value of hotel property before the construction on a
55 qualified hotel begins, as that value is established by the county in which the hotel property is
56 located, using a reasonable valuation method that may include the value of the hotel property
57 on the county assessment rolls the year before the year during which construction on the
58 qualified hotel begins.
59 (3) "Certified claim" means a claim that the office has approved and certified as
60 provided in Section 63M-1-3405.
61 (4) "Claim" means a written document submitted by a qualified hotel owner or host
62 local government to request a convention incentive.
63 (5) "Claimant" means the qualified hotel owner or host local government that submits a
64 claim under Subsection 63M-1-3405(1)(a) for a convention incentive.
65 [
66 [
67 means the same as that term is defined in Section 17C-1-102.
68 (8) "Construction revenue" means revenue generated from state taxes and local taxes
69 imposed on transactions occurring during the eligibility period as a result of the construction of
70 the hotel property, including purchases made by a qualified hotel owner and its subcontractors.
71 (9) "Convention incentive" means an incentive for the development of a qualified
72 hotel, in the form of payment from the incentive fund as provided in this part, as authorized in
73 an agreement.
74 [
75 (a) the period that:
76 (i) begins the date construction of a qualified hotel begins; and
77 (ii) ends:
78 (A) for purposes of the state portion, 20 years after the date of initial occupancy of that
79 qualified hotel; or
80 (B) for purposes of the local portion and incremental property tax revenue, 25 years
81 after the date of initial occupancy of that hotel; or
82 (b) as provided in an agreement between the office and a qualified hotel owner or host
83 local government, a period that:
84 (i) begins no earlier than the date construction of a qualified hotel begins; and
85 (ii) is shorter than the period described in Subsection [
86 [
87 (a) from the county in which a qualified hotel is located or is proposed to be located;
88 (b) signed by the county executive; and
89 (c) expressing the county's endorsement of a developer of a qualified hotel as meeting
90 all the county's criteria for receiving the county's endorsement.
91 [
92 host local government.
93 [
94 (a) a county that enters into an agreement with the office for the construction of a
95 qualified hotel within the unincorporated area of the county; or
96 (b) a city or town that enters into an agreement with the office for the construction of a
97 qualified hotel within the boundary of the city or town.
98 [
99 the same development as the qualified hotel, including convention, exhibit, and meeting space,
100 retail shops, restaurants, parking, and other ancillary facilities and amenities.
101 (15) "Incentive fund" means the Convention Incentive Fund created in Section
102 63M-1-3403.5.
103 [
104 revenue generated from hotel property that equals the difference between:
105 (a) the amount of property tax revenue generated in any tax year by all taxing entities
106 from hotel property, using the current assessed value of the hotel property; and
107 (b) the amount of property tax revenue that would be generated that tax year by all
108 taxing entities from hotel property, using [
109
110 [
111
112 [
113 (18) "Local taxes" means a tax imposed under:
114 (a) Section 59-12-204;
115 (b) Section 59-12-301;
116 (c) Sections 59-12-352 and 59-12-353;
117 (d) Subsection 59-12-603(1)(a)(i)(A);
118 (e) Subsection 59-12-603(1)(a)(i)(B);
119 (f) Subsection 59-12-603(1)(a)(ii);
120 (g) Subsection 59-12-603(1)(a)(iii); or
121 (h) Section 59-12-1102.
122 [
123 onsite revenue.
124 [
125
126
127 [
128
129 [
130
131 a third-party seller occurring other than on hotel property during the eligibility period, if:
132 (i) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act;
133 and
134 (ii) the third-party seller voluntarily consents to the disclosure of information to the
135 office, as provided in Subsection 63M-1-3405(1)(b)(i)(E).
136 (21) "Onsite revenue" means revenue generated from state taxes and local taxes
137 imposed on transactions occurring on hotel property during the eligibility period.
138 [
139 (a) water, sewer, storm drainage, electrical, telecommunications, and other similar
140 systems and lines;
141 (b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
142 transportation facilities; and
143 (c) other buildings, facilities, infrastructure, and improvements that benefit the public.
144 [
145 state on or after July 1, 2014 that:
146 (a) requires a significant capital investment;
147 (b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
148 room; and
149 (c) is located within 1,000 feet of a convention center that contains at least 500,000
150 square feet of convention, exhibit, and meeting space.
151 [
152 [
153 under Section 63M-1-3404.
154 [
155 [
156
157 [
158 [
159
160 [
161 [
162
163 [
164 [
165 [
166 [
167 [
168 [
169
170 (28) "State taxes" means a tax imposed under Subsection 59-12-103(2)(a)(i), (2)(b)(i),
171 (2)(c)(i), or (2)(d)(i)(A).
172 [
173 (a) occurring other than on hotel property;
174 (b) that is:
175 (i) the sale, rental, or lease of a room or of convention or exhibit space or other
176 facilities on hotel property; or
177 (ii) the sale of tangible personal property or a service that is part of a bundled
178 transaction, as defined in Section 59-12-102, with a sale, rental, or lease described in
179 Subsection [
180 (c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
181 Section 2. Section 63M-1-3403 is amended to read:
182 63M-1-3403. Agreement for development of new convention hotel -- Convention
183 incentive authorized -- Agreement requirements.
184 (1) The office, with the board's advice, may enter into an agreement with a qualified
185 hotel owner or a host local government:
186 (a) for the development of a qualified hotel; and
187 (b) to authorize a [
188 (i) to the qualified hotel owner or host local government, but not both;
189 (ii) for a period not to exceed the eligibility period;
190 (iii) in the amount of new tax revenue, subject to Subsection (2) and notwithstanding
191 any other restriction provided by law;
192 [
193 (A) the county in which the qualified hotel is proposed to be located has issued an
194 endorsement letter endorsing the qualified hotel owner; and
195 (B) all applicable requirements of this part and the agreement are met; and
196 (iv) that is reduced by $1,900,000 per year during the first two years of the eligibility
197 period, as described in Subsection (2)(c).
198 (2) An agreement under Subsection (1) shall:
199 (a) specify the requirements for [
200 local government to qualify for a [
201 (b) require compliance with the terms of the endorsement letter issued by the county in
202 which the qualified hotel is proposed to be located;
203 (c) require the amount of [
204 certified claims for the first two years of the eligibility period to be reduced by $1,900,000 per
205 year;
206 (d) with respect to the state portion of [
207
208 (i) specify the maximum dollar amount that the [
209 owner or host local government may receive, subject to a maximum of:
210 (A) for any [
211
212 (B) $75,000,000 in the aggregate for [
213 or host local government during an eligibility period, calculated as though the two $1,900,000
214 reductions of the tax credit amount under Subsection (1)(b)(iv) had not occurred; and
215 (ii) specify the maximum percentage of the state portion [
216 be used in calculating [
217 incentive that the qualified hotel owner or host local government may receive during the
218 eligibility period for each [
219 (e) establish a shorter period of time than the period described in Subsection
220 63M-1-3402(5)(a) during which the [
221 owner or host local government may claim the convention incentive or that the host agency
222 may be paid incremental property tax revenue, if the office and qualified hotel owner or host
223 local government agree to a shorter period of time;
224 (f) require the [
225 supporting a claim for [
226 (g) allow the transfer of the agreement to a third party if the third party assumes all
227 liabilities and responsibilities in the agreement;
228 (h) limit the expenditure of funds received under [
229 as provided in Section 63M-1-3412; and
230 (i) require the [
231 submit to any audit and to provide any audit level attestation or other level of review the office
232 considers appropriate for verification of any [
233 (3) Notwithstanding any other provision of law, a county or city in which a qualified
234 hotel is located may contribute property to the qualified hotel owner or host local government
235 without consideration or partially or completely in lieu of money that the county or city would
236 have otherwise paid to the qualified hotel owner or host local government as part of a
237 convention incentive or as incremental property tax revenue, to be used as provided in
238 Subsection 63M-1-3408(3)(a).
239 Section 3. Section 63M-1-3403.5 is enacted to read:
240 63M-1-3403.5. Convention Incentive Fund.
241 (1) There is created an expendable special revenue fund known as the Convention
242 Incentive Fund.
243 (2) (a) The incentive fund shall be funded by new tax revenue, as provided in
244 Subsection (3).
245 (b) No legislative appropriation is required to fund the incentive fund.
246 (c) All interest generated from the investment of money in the incentive fund shall be
247 deposited into the incentive fund.
248 (3) (a) During the portion of the eligibility period specified by the office under
249 Subsection 63M-1-3405(7)(a), the commission shall cause new tax revenue to be deposited
250 into the incentive fund as provided in this Subsection (3).
251 (b) To the extent the commission is able to identify sellers involved in transactions
252 generating state taxes or local taxes before the payment of those taxes, the commission shall
253 deposit new tax revenue directly into the incentive fund, notwithstanding Subsection
254 59-12-103(3) and before the allocations required by Section 59-12-204, Subsection
255 59-12-205(2), Section 59-12-401, Section 59-12-603, and Section 59-12-1102.
256 (c) The commission shall, within 30 days after the office provides the information
257 required under Subsection 63M-1-3405(7)(b):
258 (i) except as provided in Subsection (3)(d), withhold from distribution to counties,
259 cities, and towns the local portion of new tax revenue not deposited into the incentive fund
260 under Subsection (3)(b) and transfer that local portion to the incentive fund; and
261 (ii) transfer to the incentive fund any state portion of new tax revenue not deposited
262 into the incentive fund under Subsection (3)(b).
263 (d) The commission may equalize over a 12-month period the withholding required
264 under Subsection (3)(c)(i) for a county, city, or town that requests equalization.
265 (4) One year after the end of the eligibility period, the commission shall transfer any
266 money remaining in the incentive fund to the Stay Another Day and Bounce Back Fund created
267 in Section 63M-1-3411, except to the extent the money is needed to pay an unpaid certified
268 claim.
269 (5) Except as otherwise provided in this chapter, an agreement with or approval by a
270 local government entity is not required for the use of the state portion or local portion to fund a
271 convention incentive.
272 (6) Distributions of money from the incentive fund shall be in accordance with Section
273 63M-1-3405.
274 Section 4. Section 63M-1-3404 is amended to read:
275 63M-1-3404. Independent review committee.
276 (1) In accordance with rules adopted by the office under Section 63M-1-3408, the
277 board shall establish a separate, independent review committee to[
278 to the office regarding the terms and conditions of an agreement and to consult with the office
279 as provided in this part or in rule.
280 [
281
282 [
283 (2) The review committee shall consist of:
284 (a) one member appointed by the director to represent the office;
285 (b) two members appointed by the mayor or chief executive of the county in which the
286 qualified hotel is located or proposed to be located;
287 (c) two members appointed by:
288 (i) the mayor of the municipality in which the qualified hotel is located or proposed to
289 be located, if the qualified hotel is located or proposed to be located within the boundary of a
290 municipality; or
291 (ii) the mayor or chief executive of the county in which the qualified hotel is located or
292 proposed to be located, in addition to the two members appointed under Subsection (2)(b), if
293 the qualified hotel is located or proposed to be located outside the boundary of a municipality;
294 (d) an individual representing the hotel industry, appointed by the Utah Hotel and
295 Lodging Association;
296 (e) an individual representing the commercial development and construction industry,
297 appointed by the president or chief executive officer of the local chamber of commerce;
298 (f) an individual representing the convention and meeting planners industry, appointed
299 by the president or chief executive officer of the local convention and visitors bureau; and
300 (g) one member appointed by the board.
301 (3) (a) A member serves an indeterminate term and may be removed from the review
302 committee by the appointing authority at any time.
303 (b) A vacancy may be filled in the same manner as an appointment under Subsection
304 (2).
305 (4) A member of the review committee may not be paid for serving on the review
306 committee and may not receive per diem or expense reimbursement.
307 (5) The office shall provide any necessary staff support to the review committee.
308 Section 5. Section 63M-1-3405 is amended to read:
309 63M-1-3405. Submission of written claim for convention incentive -- Disclosure
310 of tax returns and other information -- Determination of claim.
311 [
312
313 [
314 (1) The office may not pay any money from the incentive fund to a qualified hotel
315 owner or host local government unless:
316 (a) the qualified hotel owner or host local government submits a claim and other
317 required documentation, as provided in this section; and
318 (b) the office approves and certifies the claim, as provided in this section.
319 (2) A qualified hotel owner or host local government that desires to qualify for a
320 convention incentive shall submit to the office:
321 (a) a written claim for a convention incentive;
322 (b) (i) for [
323 (A) a certification by the individual signing the [
324 is duly authorized to sign the [
325 (B) documentation of the new tax revenue previously generated [
326
327 tax, and the location of the transaction generating the new tax revenue as determined under
328 Sections 59-12-211, 59-12-211.1, 59-12-212, 59-12-213, 59-12-214, and 59-12-215;
329 (C) the identity of sellers collecting onsite revenue and the date the sellers will begin
330 collecting onsite revenue;
331 [
332 authorizes the commission to disclose to the office the qualified hotel owner's tax returns and
333 other information that would otherwise be subject to confidentiality under Section 59-1-403 or
334 Section 6103, Internal Revenue Code;
335 [
336 subcontractors, as applicable, expressly direct and authorize the commission to disclose to the
337 office the tax returns and other information of those vendors, lessees, or subcontractors that
338 would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal
339 Revenue Code;
340 [
341 authorizes the commission to disclose to the office the third-party seller's tax returns and other
342 information that would otherwise be subject to confidentiality under Section 59-1-403 or
343 Section 6103, Internal Revenue Code; [
344 [
345 the terms of the agreement; and
346 (H) any other documentation that the agreement or office requires; and
347 (ii) for an application submitted by a host local government, documentation of the new
348 tax revenue generated during the preceding year;
349 (c) if the host local government intends to assign the [
350
351
352 document signed by the governing body members of the community development and renewal
353 agency that expressly directs and authorizes the commission to disclose to the office the
354 agency's tax returns and other information that would otherwise be subject to confidentiality
355 under Section 59-1-403 or Section 6103, Internal Revenue Code; and
356 (d) [
357 approved by the office, from an independent certified public accountant, [
358
359
360 claimed by the claimant.
361 [
362 Subsections [
363 returns and other information.
364 (b) Upon receipt of the documents described in Subsection [
365 shall provide to the office the tax returns and other information described in those documents.
366 [
367 inadequate to [
368 certify a claim, the office shall inform the [
369 and other information were inadequate and request the tax credit applicant to submit additional
370 documentation to validate the [
371 [
372 additional documentation provided under Subsection [
373 requirements and provide reasonable justification [
374 approve and certify the claim, the office shall:
375 (a) approve and certify the claim;
376 [
377
378 [
379
380 [
381 (c) disburse money from the incentive fund to pay the certified claim as provided in
382 Subsection (6).
383 (6) The office shall pay claims from available money in the incentive fund at least
384 annually.
385 (7) For each certified claim, the office shall provide the commission:
386 (a) for onsite revenue:
387 (i) the identity of sellers operating upon the hotel property;
388 (ii) the date that the commission is to begin depositing or transferring onsite revenue
389 under Section 63M-1-3403.5 for each seller operating upon the hotel property;
390 (iii) the date that the commission is to stop depositing or transferring onsite revenue to
391 the incentive fund under Section 63M-1-3403.5 for each seller operating upon the hotel
392 property; and
393 (iv) the type of sales or use tax subject to the commission's deposit or transfer to the
394 incentive fund under Section 63M-1-3403.5;
395 (b) for construction revenue and offsite revenue:
396 (i) the amount of new tax revenue authorized under the agreement constituting
397 construction revenue or offsite revenue;
398 (ii) the location of the transactions generating the construction revenue and offsite
399 revenue, as determined under Sections 59-12-211, 59-12-211.1, 59-12-212, 59-12-213,
400 59-12-214, and 59-12-215; and
401 (iii) the type of sales or use tax that constitutes the construction revenue of offsite
402 revenue described in Subsection (7)(b)(ii); and
403 (c) any other information the commission requires.
404 Section 6. Section 63M-1-3407 is amended to read:
405 63M-1-3407. Assigning convention incentive.
406 (1) A host local government that enters into an agreement with the office may, by
407 resolution, assign a [
408 agency, in accordance with rules adopted by the office.
409 (2) A host local government that adopts a resolution assigning a [
410 incentive under Subsection (1) shall provide a copy of the resolution to the office [
411
412 Section 7. Section 63M-1-3408 is amended to read:
413 63M-1-3408. Payment of incremental property tax revenue.
414 (1) As used in this section:
415 (a) "Displaced tax increment" means the amount of tax increment that a county would
416 have paid to the host agency except for Subsection (2)(b).
417 (b) "Tax increment" means the same as that term is defined in Section 17C-1-102.
418 [
419
420 revenue during the eligibility period.
421 (b) The amount of incremental property tax revenue that a county retains under
422 Subsection (2)(a) for a taxable year reduces by that amount any tax increment that the county
423 would otherwise have paid to the host agency for that year.
424 (c) For any taxable year in which a reduction of tax increment occurs as provided in
425 Subsection (2)(b), the county shall provide the host agency a notice that:
426 (i) states the amount of displaced tax increment for that year;
427 (ii) states the number of years remaining in the eligibility period;
428 (iii) provides a detailed accounting of how the displaced tax increment was used; and
429 (iv) explains how the displaced tax increment will be used in the following taxable
430 year.
431 [
432 [
433 payment for:
434 [
435 meeting space on hotel property;
436 [
437 becomes affixed to hotel property as real property; or
438 [
439 Subsections [
440 [
441 [
442 [
443
444
445
446 (4) (a) Incremental property tax:
447 (i) is not tax increment; and
448 (ii) is not subject to:
449 (A) Title 17C, Limited Purpose Local Government Entities -- Community
450 Development and Renewal Agencies Act; or
451 (B) any other law governing tax increment, except as provided in Subsection (4)(c).
452 (b) The payment and use of incremental property tax, as provided in this part, is not
453 subject to the approval of any taxing entity, as defined in Section 17C-1-102.
454 (c) Revenue from an increase in the taxable value of hotel property is considered to be
455 a redevelopment adjustment for purposes of calculating the certified tax rate under Section
456 59-2-924.
457 Section 8. Section 63M-1-3409 is amended to read:
458 63M-1-3409. Rulemaking authority -- Requirements for rules.
459 (1) The office shall, in accordance with Title 63G, Chapter 3, Utah Administrative
460 Rulemaking Act, make rules to carry out its responsibilities under this part and to implement
461 the provisions of this part.
462 (2) The rules the office makes under Subsection (1) shall:
463 (a) establish, consistent with this part, the conditions [
464 required [
465 (b) require that a significant capital investment be made in the development of the
466 hotel property;
467 (c) require a [
468 to receive a [
469 (d) require that a qualified hotel owner meet the county's requirements to receive an
470 endorsement letter; and
471 (e) provide for the establishment of an independent review committee, in accordance
472 with the requirements of Section 63M-1-3404.
473 Section 9. Section 63M-1-3410 is amended to read:
474 63M-1-3410. Report by office -- Posting of report.
475 (1) Before November 1 of each year, the office shall submit a written report to the
476 Economic Development and Workforce Services Interim Committee of the Legislature, the
477 Governor's Office of Management and Budget, and the Office of the Legislative Fiscal Analyst
478 describing:
479 (a) the state's success in attracting new conventions and corresponding new state
480 revenue;
481 (b) the estimated amount of [
482 associated calculation made by the office and the period of time over which [
483 convention incentives are expected to be paid;
484 (c) the economic impact on the state related to generating new state revenue and
485 providing [
486 (d) the estimated and actual costs and economic benefits of the [
487 incentive commitments that the office made.
488 (2) The office shall post the annual report under Subsection (1) on its website and on a
489 state website.
490 (3) Upon the commencement of the construction of a qualified hotel, the office shall
491 send a written notice to the Division of Finance:
492 (a) referring to the two annual deposits required under Subsection 59-12-103(14); and
493 (b) notifying the Division of Finance that construction on the qualified hotel has begun.
494 Section 10. Section 63M-1-3411 is amended to read:
495 63M-1-3411. Stay Another Day and Bounce Back Fund.
496 (1) As used in this section:
497 (a) "Bounce back fund" means the Stay Another Day and Bounce Back Fund, created
498 in Subsection (2).
499 (b) "Tourism board" means the Board of Tourism Development created in Section
500 63M-1-1401.
501 (2) There is created an expendable special revenue fund known as the Stay Another
502 Day and Bounce Back Fund.
503 (3) The bounce back fund shall:
504 (a) be administered by the tourism board;
505 (b) earn interest; and
506 (c) be funded by:
507 (i) annual payments under Section 17-31-9 from the county in which a qualified hotel
508 is located;
509 (ii) money transferred to the bounce back fund under Section 63M-1-3043.5 or
510 63M-1-3412; and
511 (iii) any money that the Legislature chooses to appropriate to the bounce back fund.
512 (4) Interest earned by the bounce back fund shall be deposited into the bounce back
513 fund.
514 (5) The tourism board may use money in the bounce back fund to pay for a tourism
515 program of advertising, marketing, and branding of the state, taking into consideration the
516 long-term strategic plan, economic trends, and opportunities for tourism development on a
517 statewide basis.
518 Section 11. Section 63M-1-3412 is amended to read:
519 63M-1-3412. Hotel Impact Mitigation Fund.
520 (1) As used in this section:
521 (a) "Affected hotel" means a hotel built in the state before July 1, 2014.
522 (b) "Direct losses" means affected hotels' losses of hotel guest business attributable to
523 the qualified hotel room supply being added to the market in the state.
524 (c) "Mitigation fund" means the Hotel Impact Mitigation Fund, created in Subsection
525 (2).
526 (2) There is created an expendable special revenue fund known as the Hotel Impact
527 Mitigation Fund.
528 (3) The mitigation fund shall:
529 (a) be administered by the board;
530 (b) earn interest; and
531 (c) be funded by:
532 (i) payments required to be deposited into the mitigation fund by the Division of
533 Finance under Subsection 59-12-103[
534 (ii) money required to be deposited into the mitigation fund under Subsection
535 17-31-9(2) by the county in which a qualified hotel is located; and
536 (iii) any money deposited into the mitigation fund under Subsection (6).
537 (4) Interest earned by the mitigation fund shall be deposited into the mitigation fund.
538 (5) (a) In accordance with office rules, the board shall annually pay up to $2,100,000 of
539 money in the mitigation fund:
540 (i) to affected hotels;
541 (ii) for four consecutive years, beginning 12 months after the date of initial occupancy
542 of the qualified hotel occurs; and
543 (iii) to mitigate direct losses.
544 (b) (i) If the amount the board pays under Subsection (5)(a) in any year is less than
545 $2,100,000, the board shall pay to the Stay Another Day and Bounce Back Fund, created in
546 Section 63M-1-3411, the difference between $2,100,000 and the amount paid under Subsection
547 (5)(a).
548 (ii) The board shall make any required payment under Subsection (5)(b)(i) within 90
549 days after the end of the year for which a determination is made of how much the board is
550 required to pay to affected hotels under Subsection (5)(a).
551 (6) A host local government or qualified hotel owner may make payments to the
552 Division of Finance for deposit into the mitigation fund.
553 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
554 office shall, in consultation with the Utah Hotel and Lodging Association and the county in
555 which the qualified hotel is located, make rules establishing procedures and criteria governing
556 payments under Subsection (5)(a) to affected hotels.
557 Section 12. Section 63M-1-3413 is amended to read:
558 63M-1-3413. Authorized expenditures of convention incentive.
559 (1) A [
560 money received [
561
562 convention incentive only for a purpose described in Subsection 63M-1-3408(2)(a).
563 [
564
565 [
566
567 [
568
569 (2) A [
570 money received [
571 incentive only for:
572 (a) a purpose described in Subsection (1);
573 (b) public infrastructure; and
574 (c) other purposes as [
575 Section 13. Repealer.
576 This bill repeals:
577 Section 59-7-616, Refundable tax credit for certain business entities.
578 Section 59-10-1110, Refundable tax credit for certain business entities.
579 Section 63M-1-3406, Effect of tax credit certificate -- Retaining tax credit
580 certificate.
581 Section 14. Effective date.
582 This bill takes effect on July 1, 2015.