1     
COUNTY OPTION FUNDING FOR BOTANICAL,

2     
CULTURAL, RECREATIONAL, AND ZOOLOGICAL

3     
ORGANIZATIONS AND FACILITIES

4     
2016 GENERAL SESSION

5     
STATE OF UTAH

6     
Chief Sponsor: Brian E. Shiozawa

7     
House Sponsor: Eric K. Hutchings

8     

9     LONG TITLE
10     General Description:
11          This bill modifies provisions related to funding for botanical, cultural, recreational, and
12     zoological organizations and facilities.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends a definition provision;
16          ▸     modifies the circumstances when an opinion question is required;
17          ▸     amends how money is distributed; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          This bill provides a special effective date.
23     Utah Code Sections Affected:
24     AMENDS:
25          59-12-702, as last amended by Laws of Utah 2011, Chapter 416
26          59-12-703, as last amended by Laws of Utah 2012, Chapter 254
27          59-12-704, as last amended by Laws of Utah 2011, Chapters 309 and 416
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 59-12-702 is amended to read:
31          59-12-702. Definitions.
32          As used in this part:
33          (1) "Administrative unit" means a division of a private nonprofit organization or
34     institution that:
35          (a) would, if it were a separate entity, be a botanical organization or cultural
36     organization; and
37          (b) consistently maintains books and records separate from those of its parent
38     organization.
39          (2) "Aquarium" means a park or building where a collection of water animals and
40     plants is kept for study, conservation, and public exhibition.
41          (3) "Aviary" means a park or building where a collection of birds is kept for study,
42     conservation, and public exhibition.
43          [(2)] (4) "Botanical organization" means:
44          (a) a private nonprofit organization or institution having as its primary purpose the
45     advancement and preservation of plant science through horticultural display, botanical
46     research, and community education; or
47          (b) an administrative unit.
48          [(3)] (5) "Cultural facility" [is as] means the same as that term is defined in Section
49     59-12-602.
50          [(4)] (6) (a) "Cultural organization":
51          (i) means:
52          (A) a private nonprofit organization or institution having as its primary purpose the
53     advancement and preservation of:
54          (I) natural history;
55          (II) art;
56          (III) music;
57          (IV) theater;
58          (V) dance; or
59          (VI) cultural arts, including literature, a motion picture, or storytelling;
60          (B) an administrative unit; and
61          (ii) includes, for purposes of Subsections 59-12-704(1)(d) and (6) only:
62          (A) a private nonprofit organization or institution having as its primary purpose the
63     advancement and preservation of history; or
64          (B) a municipal or county cultural council having as its primary purpose the
65     advancement and preservation of:
66          (I) history;
67          (II) natural history;
68          (III) art;
69          (IV) music;
70          (V) theater; or
71          (VI) dance.
72          (b) "Cultural organization" does not include:
73          (i) an agency of the state;
74          (ii) except as provided in Subsection [(4)] (6)(a)(ii)(B), a political subdivision of the
75     state;
76          (iii) an educational institution whose annual revenues are directly derived more than
77     50% from state funds; or
78          (iv) in a county of the first or second class, a radio or television broadcasting network
79     or station, cable communications system, newspaper, or magazine.
80          [(5)] (7) "Institution" means an institution listed in Subsections 53B-1-102(1)(b)
81     through (k).
82          [(6)] (8) "Recreational facility" means a publicly owned or operated park, campground,
83     marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system,
84     or other facility used for recreational purposes.
85          [(7)] (9) "Rural radio station" means a nonprofit radio station based in a county of the
86     third, fourth, fifth, or sixth class.
87          [(8)] (10) In a county of the first class, "zoological facility" means a public,
88     public-private partnership, or private nonprofit building, exhibit, utility and infrastructure,
89     walkway, pathway, roadway, office, administration facility, public service facility, educational
90     facility, enclosure, public viewing area, animal barrier, animal housing, animal care facility,
91     and veterinary and hospital facility related to the advancement, exhibition, or preservation of a
92     mammal, bird, reptile, fish, or an amphibian.
93          [(9)] (11) (a) (i) Except as provided in Subsection [(9)] (11)(a)(ii), "zoological
94     organization" means a public, public-private partnership, or private nonprofit organization
95     having as its primary purpose the advancement and preservation of zoology.
96          (ii) In a county of the first class, "zoological organization" means a nonprofit
97     organization having as its primary purpose the advancement and exhibition of a mammal, bird,
98     reptile, fish, or an amphibian to an audience of 75,000 or more persons annually.
99          (b) "Zoological organization" does not include an agency of the state, educational
100     institution, radio or television broadcasting network or station, cable communications system,
101     newspaper, or magazine.
102          (12) "Zoological park" means a park or garden where a collection of wild animals is
103     kept for study, conservation, and public exhibition.
104          Section 2. Section 59-12-703 is amended to read:
105          59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
106     Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
107     -- Notice requirements.
108          (1) (a) Subject to the other provisions of this section, a county legislative body may
109     submit an opinion question to the residents of that county, by majority vote of all members of
110     the legislative body, so that each resident of the county, except residents in municipalities that
111     have already imposed a sales and use tax under Part 14, City or Town Option Funding for
112     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
113     opportunity to express the resident's opinion on the imposition of a local sales and use tax of
114     .1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
115          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
116     organizations, cultural organizations, and zoological organizations, and rural radio stations, in
117     that county; or
118          (ii) provide funding for a botanical organization, cultural organization, or zoological
119     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
120     furtherance of the botanical organization's, cultural organization's, or zoological organization's
121     primary purpose.
122          (b) The opinion question required by this section shall state:
123          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
124     use tax for (list the purposes for which the revenues collected from the sales and use tax shall
125     be expended)?"
126          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
127     under this section on:
128          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
129     are exempt from taxation under Section 59-12-104;
130          (ii) sales and uses within municipalities that have already imposed a sales and use tax
131     under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
132     Zoological Organizations or Facilities; and
133          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
134     food ingredients.
135          (d) For purposes of this Subsection (1), the location of a transaction shall be
136     determined in accordance with Sections 59-12-211 through 59-12-215.
137          (e) A county legislative body imposing a tax under this section shall impose the tax on
138     amounts paid or charged for food and food ingredients if the food and food ingredients are sold
139     as part of a bundled transaction attributable to food and food ingredients and tangible personal
140     property other than food and food ingredients.
141          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
142     Government Bonding Act.
143          (2) (a) If the county legislative body determines that a majority of the county's
144     registered voters voting on the imposition of the tax have voted in favor of the imposition of
145     the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
146     majority vote of all members of the legislative body on the transactions:
147          (i) described in Subsection (1); and
148          (ii) within the county, including the cities and towns located in the county, except those
149     cities and towns that have already imposed a sales and use tax under Part 14, City or Town
150     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
151     Facilities.
152          (b) A county legislative body may revise county ordinances to reflect a statutory
153     [changes to the distribution formula or eligible recipients of revenues generated from a tax
154     imposed under Subsection (2)(a)] increase to the rate of the tax authorized under this part:
155          (i) after the county legislative body submits an opinion question to residents of the
156     county in accordance with Subsection (1) giving them the opportunity to express their opinion
157     on the proposed revisions to county ordinances; and
158          (ii) if the county legislative body determines that a majority of those voting on the
159     opinion question have voted in favor of the revisions.
160          (3) Subject to Section 59-12-704, revenues collected from a tax imposed under
161     Subsection (2) shall be expended:
162          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
163     within the county or a city or town located in the county, except a city or town that has already
164     imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
165     Cultural, Recreational, and Zoological Organizations or Facilities;
166          (b) to fund ongoing operating expenses of:
167          (i) recreational facilities described in Subsection (3)(a);
168          (ii) botanical organizations, cultural organizations, and zoological organizations within
169     the county; and
170          (iii) rural radio stations within the county; and
171          (c) as stated in the opinion question described in Subsection (1).
172          (4) (a) A tax authorized under this part shall be:
173          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
174     accordance with:
175          (A) the same procedures used to administer, collect, and enforce the tax under:
176          (I) Part 1, Tax Collection; or
177          (II) Part 2, Local Sales and Use Tax Act; and
178          (B) Chapter 1, General Taxation Policies; and
179          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
180     period in accordance with this section.
181          (b) A tax under this part is not subject to Subsections 59-12-205(2) through (6).
182          (5) (a) For purposes of this Subsection (5):
183          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
184     County Annexation.
185          (ii) "Annexing area" means an area that is annexed into a county.
186          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
187     county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
188          (A) on the first day of a calendar quarter; and
189          (B) after a 90-day period beginning on the date the commission receives notice meeting
190     the requirements of Subsection (5)(b)(ii) from the county.
191          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
192          (A) that the county will enact or repeal a tax under this part;
193          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
194          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
195          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
196     tax.
197          (c) (i) The enactment of a tax takes effect on the first day of the first billing period:
198          (A) that begins on or after the effective date of the enactment of the tax; and
199          (B) if the billing period for the transaction begins before the effective date of the
200     enactment of the tax under this section.
201          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
202     period is rendered on or after the effective date of the repeal of the tax imposed under this
203     section.
204          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
205     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
206     Subsection (5)(b)(i) takes effect:
207          (A) on the first day of a calendar quarter; and
208          (B) beginning 60 days after the effective date of the enactment or repeal under
209     Subsection (5)(b)(i).
210          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
211     commission may by rule define the term "catalogue sale."
212          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
213     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
214     part for an annexing area, the enactment or repeal shall take effect:
215          (A) on the first day of a calendar quarter; and
216          (B) after a 90-day period beginning on the date the commission receives notice meeting
217     the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
218          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
219          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
220     repeal of a tax under this part for the annexing area;
221          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
222          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
223          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
224          (f) (i) The enactment of a tax takes effect on the first day of the first billing period:
225          (A) that begins on or after the effective date of the enactment of the tax; and
226          (B) if the billing period for the transaction begins before the effective date of the
227     enactment of the tax under this section.
228          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
229     period is rendered on or after the effective date of the repeal of the tax imposed under this
230     section.
231          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
232     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
233     Subsection (5)(e)(i) takes effect:
234          (A) on the first day of a calendar quarter; and
235          (B) beginning 60 days after the effective date of the enactment or repeal under
236     Subsection (5)(e)(i).
237          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
238     commission may by rule define the term "catalogue sale."
239          Section 3. Section 59-12-704 is amended to read:
240          59-12-704. Distribution of revenues -- Advisory board creation -- Determining
241     operating expenses -- Administrative charge.
242          (1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
243     this section, any revenues collected by a county of the first class under this part shall be
244     distributed annually by the county legislative body to support cultural facilities, recreational
245     facilities, and zoological facilities and botanical organizations, cultural organizations, and
246     zoological organizations within that first class county as follows:
247          (a) 30% of the revenue collected by the county under this section shall be distributed
248     by the county legislative body to support cultural facilities and recreational facilities located
249     within the county;
250          (b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
251     [12-1/8%] 16% of the revenue collected by the county under this section shall be distributed by
252     the county legislative body to support no more than three zoological facilities and zoological
253     organizations located within the county, [with 94.5% of that revenue being distributed to
254     zoological facilities and zoological organizations with average annual operating expenses of
255     $2,000,000 or more and 5.5% of that revenue being distributed to zoological facilities and
256     zoological organizations with average annual operating expenses of less than $2,000,000;]
257     having average annual operating expenses of $1,500,000 or more as determined under
258     Subsection (3), with:
259          (A) 63.5% of that revenue being distributed to support a zoological organization
260     having as its primary purpose the operation of a zoological park, or a zoological facility that is
261     part of or integrated with a zoological park;
262          (B) 28.25% of that revenue being distributed to support a zoological organization
263     having as its primary purpose the operation of an aquarium, or a zoological facility that is part
264     of or integrated with an aquarium; and
265          (C) 8.25% of that revenue being distributed to support a zoological organization having
266     as its primary purpose the operation of an aviary, or a zoological facility that is part of or
267     integrated with an aviary; and
268          (ii) [except as provided in Subsection (1)(b)(iii),] if more than one zoological
269     organization or zoological facility qualifies to receive the money described in Subsection
270     (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the money described in
271     [Subsection (1)(b)(i) among the zoological facilities and zoological organizations in proportion
272     to their average annual operating expenses as determined under Subsection (3); and (iii) if a
273     zoological facility or zoological organization is created or relocated within the county after
274     June 1, 2003, the county legislative body shall distribute the money described in Subsection
275     (1)(b)(i) as it determines appropriate;] the subsection for which more than one zoological
276     organization or zoological facility qualifies to whichever zoological organization or zoological
277     facility the county legislative body determines is most appropriate, except that a zoological
278     organization or zoological facility may not receive money under more than one subsection
279     under Subsection (1)(b)(i); and
280          (iii) if no zoological organization or zoological facility qualifies to receive money
281     described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the
282     money described in the subsection for which no zoological organization or zoological facility
283     qualifies among the zoological organizations or zoological facilities qualifying for and
284     receiving money under the other subsections in proportion to the zoological organizations' or
285     zoological facilities' average annual operating expenses as determined under Subsection (3);
286          (c) (i) [48-7/8%] 45% of the revenue collected by the county under this section shall be
287     distributed to no more than [23] 22 botanical organizations and cultural organizations with
288     average annual operating expenses of more than $250,000 as determined under Subsection (3);
289          (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
290     money described in Subsection (1)(c)(i) among the botanical organizations and cultural
291     organizations in proportion to their average annual operating expenses as determined under
292     Subsection (3); and
293          (iii) the amount distributed to any botanical organization or cultural organization
294     described in Subsection (1)(c)(i) may not exceed 35% of the botanical organization's or cultural
295     organization's operating budget; and
296          (d) (i) 9% of the revenue collected by the county under this section shall be distributed
297     to botanical organizations and cultural organizations that do not receive revenue under
298     Subsection (1)(c)(i); and
299          (ii) the county legislative body shall determine how the money shall be distributed
300     among the botanical organizations and cultural organizations described in Subsection (1)(d)(i).
301          (2) (a) The county legislative body of each county shall create an advisory board to
302     advise the county legislative body on disbursement of funds to botanical organizations and
303     cultural organizations under Subsection (1)(c)(i).
304          (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
305     appointed by the county legislative body.
306          (ii) In a county of the first class, two of the seven members of the advisory board under
307     Subsection (2)(a) shall be appointed from the Utah Arts Council.
308          (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive money
309     collected by the county under this part, a botanical organization, cultural organization, [and]
310     zoological organization, and zoological facility located within a county of the first class shall,
311     every [three years] year:
312          (i) calculate [their] its average annual operating expenses based upon audited operating
313     expenses for three preceding fiscal years; and
314          (ii) submit to the appropriate county legislative body:
315          (A) a verified audit of annual operating expenses for each of those three preceding
316     fiscal years; and
317          (B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
318          (b) The county legislative body may waive the operating expenses reporting
319     requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
320          (4) When calculating average annual operating expenses as described in Subsection
321     (3), each botanical organization, cultural organization, and zoological organization shall use the
322     same three-year fiscal period as determined by the county legislative body.
323          (5) (a) By July 1 of each year, the county legislative body of a first class county may
324     index the threshold amount in Subsections (1)(c) and (d).
325          (b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
326          (6) (a) In a county except for a county of the first class, the county legislative body shall
327     by ordinance provide for the distribution of the entire amount of the revenues generated by the
328     tax imposed by this section:
329          (i) as provided in this Subsection (6); and
330          (ii) as stated in the opinion question described in Subsection 59-12-703(1).
331          (b) Pursuant to an interlocal agreement established in accordance with Title 11,
332     Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
333     to a city, town, or political subdivision within the county revenues generated by a tax under this
334     part.
335          (c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
336     more organizations or facilities defined in Section 59-12-702 regardless of whether the
337     revenues are distributed:
338          (i) directly by the county described in Subsection (6)(a) to be used for an organization
339     or facility defined in Section 59-12-702; or
340          (ii) in accordance with an interlocal agreement described in Subsection (6)(b).
341          (7) A county legislative body may retain up to 1.5% of the proceeds from a tax under
342     this part for the cost of administering this part.
343          (8) The commission shall retain and deposit an administrative charge in accordance
344     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
345          Section 4. Effective date.
346          This bill takes effect on January 1, 2017.




Legislative Review Note
Office of Legislative Research and General Counsel