1     
TAX INCENTIVE REVIEW AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel McCay

5     
Senate Sponsor: Deidre M. Henderson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to legislative review and evaluation of tax
10     incentives and economic development programs.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates the Economic Development Legislative Liaison Committee;
14          ▸     provides for the membership, expenses, duties, and staff support of the committee;
15          ▸     requires the Governor's Office of Economic Development to provide the committee
16     with certain information;
17          ▸     addresses the confidentiality of and access to information provided to the committee
18     by the Governor's Office of Economic Development;
19          ▸     provides that the committee is not a public body for purposes of the Open and
20     Public Meetings Act;
21          ▸     defines terms;
22          ▸     addresses what tax information the State Tax Commission can provide to certain
23     offices;
24          ▸     requires the State Tax Commission and Office of the Legislative Fiscal Analyst to
25     conduct a study and to report their findings; and
26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None

29     Other Special Clauses:
30          This bill provides a special effective date.
31          This bill provides a repeal date.
32     Utah Code Sections Affected:
33     AMENDS:
34          52-4-103, as last amended by Laws of Utah 2016, Chapter 77
35          59-1-403, as last amended by Laws of Utah 2015, Chapters 411 and 451
36          63N-1-201, as renumbered and amended by Laws of Utah 2015, Chapter 283
37     ENACTS:
38          36-30-101, Utah Code Annotated 1953
39          36-30-102, Utah Code Annotated 1953
40          36-30-201, Utah Code Annotated 1953
41          36-30-202, Utah Code Annotated 1953
42          36-30-203, Utah Code Annotated 1953
43     Uncodified Material Affected:
44     ENACTS UNCODIFIED MATERIAL
45     

46     Be it enacted by the Legislature of the state of Utah:
47          Section 1. Section 36-30-101 is enacted to read:
48     
CHAPTER 30. ECONOMIC DEVELOPMENT LEGISLATIVE

49     
LIAISON COMMITTEE

50          36-30-101. Title.
51          This chapter is known as the "Economic Development Legislative Liaison Committee."
52          Section 2. Section 36-30-102 is enacted to read:
53          36-30-102. Definitions.
54          As used in this chapter:
55          (1) "Classification" means the same as that term is defined in Section 63G-2-103.

56          (2) "Committee" means the Economic Development Legislative Liaison Committee
57     created in this chapter.
58          (3) "Improperly use" means:
59          (a) to further substantially one's own or another's personal economic interest;
60          (b) to secure special privileges or exemptions for one's self or another; or
61          (c) to cause economic injury or damage to:
62          (i) an individual or business entity; or
63          (ii) an individual's or a business entity's property, reputation, or business interests.
64          (4) "Office" means the Governor's Office of Economic Development created in Section
65     63N-1-201.
66          (5) "Record" means the same as that term is defined in Section 63G-2-103.
67          Section 3. Section 36-30-201 is enacted to read:
68          36-30-201. Economic Development Legislative Liaison Committee -- Creation --
69     Membership -- Chairs -- Per diem and expenses.
70          (1) There is created the Economic Development Legislative Liaison Committee.
71          (2) The committee membership consists of the following eight members:
72          (a) four members from the House of Representatives, appointed by the speaker of the
73     House of Representatives, with no more than three from the same political party; and
74          (b) four members from the Senate, appointed by the president of the Senate, with no
75     more than three members from the same political party.
76          (3) Five members of the committee constitute a quorum.
77          (4) (a) The speaker of the House of Representatives shall designate a member of the
78     House of Representatives appointed under Subsection (2)(a) as a cochair of the committee.
79          (b) The president of the Senate shall designate a member of the Senate appointed under
80     Subsection (2)(b) as a cochair of the committee.
81          (5) A committee member shall receive compensation and expenses as provided by
82     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.

83          Section 4. Section 36-30-202 is enacted to read:
84          36-30-202. Duties -- Confidential information -- Records.
85          (1) The committee shall receive reports from the office regarding:
86          (a) how the office is:
87          (i) promoting and encouraging economic development in the state; and
88          (ii) creating, developing, attracting, and retaining business, industry, and commerce in
89     the state;
90          (b) an economic development incentive or program the office administers;
91          (c) a contract or agreement that the office has entered into with a public or private
92     entity;
93          (d) a grant that the office has made to a public or private entity;
94          (e) any funds from a public or private source that the office has expended;
95          (f) any money, services, or facilities the office has solicited or accepted from a public
96     or private donor;
97          (g) a policy, priority, or objective under which the office operates; or
98          (h) any other economic development related information that the office can provide.
99          (2) At the beginning of each meeting, the cochairs of the committee shall inform each
100     individual in attendance that there may be:
101          (a) restrictions on disclosing or improperly using information the committee receives
102     during the meeting; and
103          (b) penalties for not complying with the restrictions on disclosing or improperly using
104     information the committee receives during the meeting.
105          (3) (a) Before adjourning a meeting of the committee, the office shall inform the
106     committee whether the information the office provides under this section is subject to
107     restrictions on disclosing or improperly using the information.
108          (b) The committee shall comply with any restrictions on the disclosure or improper use
109     of information.

110          (c) An individual may not disclose or improperly use information that is:
111          (i) received by the individual at a committee meeting; and
112          (ii) determined to be confidential or subject to restrictions on disclosure under
113     Subsection (3)(a).
114          (d) An individual who intentionally discloses or improperly uses information described
115     under Subsection (3)(c) knowing that the disclosure or use is prohibited under this section is
116     guilty of a class B misdemeanor.
117          (4) (a) The office's sharing of records with the committee is governed by this section
118     rather than Section 63G-2-206.
119          (b) The office shall inform the committee of the office's classification of any record the
120     office provides to the committee.
121          (c) (i) The committee is subject to the same restrictions on disclosure or use of a record
122     the committee receives from the office as the office is subject to.
123          (ii) An individual that violates the restrictions on disclosure or use described under
124     Subsection (4)(c)(i) is subject to:
125          (A) the applicable penalties provided under Title 63G, Chapter 2, Government Records
126     Access and Management Act; and
127          (B) any other applicable penalties provided by law.
128          (d) A person may not make a request under Title 63G, Chapter 2, Government Records
129     Access and Management Act, or this section, for access to a record in possession of the
130     committee if the committee received the record from the office in accordance with this section.
131          (5) The committee may not:
132          (a) request legislation;
133          (b) recommend legislation;
134          (c) take a position on a matter of public policy;
135          (d) except as necessary to obtain the information described in Subsection (1), direct the
136     negotiations, activities, and work of the office; or

137          (e) require the office to request company-specific tax information from the State Tax
138     Commission.
139          (6) The committee shall comply with the rules of legislative interim committees unless
140     those rules conflict with this section.
141          (7) The committee may meet as needed.
142          Section 5. Section 36-30-203 is enacted to read:
143          36-30-203. Staff support.
144          The Office of Legislative Research and General Counsel and the Office of the
145     Legislative Fiscal Analyst shall jointly provide staff services to the committee.
146          Section 6. Section 52-4-103 is amended to read:
147          52-4-103. Definitions.
148          As used in this chapter:
149          (1) "Anchor location" means the physical location from which:
150          (a) an electronic meeting originates; or
151          (b) the participants are connected.
152          (2) "Capitol hill complex" means the grounds and buildings within the area bounded by
153     300 North Street, Columbus Street, 500 North Street, and East Capitol Boulevard in Salt Lake
154     City.
155          (3) "Convening" means the calling together of a public body by a person authorized to
156     do so for the express purpose of discussing or acting upon a subject over which that public
157     body has jurisdiction or advisory power.
158          (4) "Electronic meeting" means a public meeting convened or conducted by means of a
159     conference using electronic communications.
160          (5) "Electronic message" means a communication transmitted electronically, including:
161          (a) electronic mail;
162          (b) instant messaging;
163          (c) electronic chat;

164          (d) text messaging as defined in Section 76-4-401; or
165          (e) any other method that conveys a message or facilitates communication
166     electronically.
167          (6) (a) "Meeting" means the convening of a public body or a specified body, with a
168     quorum present, including a workshop or an executive session, whether in person or by means
169     of electronic communications, for the purpose of discussing, receiving comments from the
170     public about, or acting upon a matter over which the public body or specific body has
171     jurisdiction or advisory power.
172          (b) "Meeting" does not mean:
173          (i) a chance gathering or social gathering; or
174          (ii) a convening of the State Tax Commission to consider a confidential tax matter in
175     accordance with Section 59-1-405.
176          (c) "Meeting" does not mean the convening of a public body that has both legislative
177     and executive responsibilities if:
178          (i) no public funds are appropriated for expenditure during the time the public body is
179     convened; and
180          (ii) the public body is convened solely for the discussion or implementation of
181     administrative or operational matters:
182          (A) for which no formal action by the public body is required; or
183          (B) that would not come before the public body for discussion or action.
184          (7) "Monitor" means to hear or observe, live, by audio or video equipment, all of the
185     public statements of each member of the public body who is participating in a meeting.
186          (8) "Participate" means the ability to communicate with all of the members of a public
187     body, either verbally or electronically, so that each member of the public body can hear or
188     observe the communication.
189          (9) (a) "Public body" means any administrative, advisory, executive, or legislative body
190     of the state or its political subdivisions that:

191          (i) is created by the Utah Constitution, statute, rule, ordinance, or resolution;
192          (ii) consists of two or more persons;
193          (iii) expends, disburses, or is supported in whole or in part by tax revenue; and
194          (iv) is vested with the authority to make decisions regarding the public's business.
195          (b) "Public body" includes, as defined in Section 11-13-103, an interlocal entity or joint
196     or cooperative undertaking.
197          (c) "Public body" does not include [a]:
198          (i) a political party, a political group, or a political caucus;
199          (ii) a conference committee, a rules committee, or a sifting committee of the
200     Legislature; [or]
201          (iii) a school community council or charter trust land council as defined in Section
202     53A-1a-108.1[.]; or
203          (iv) the Economic Development Legislative Liaison Committee created in Section
204     36-30-201.
205          (10) "Public statement" means a statement made in the ordinary course of business of
206     the public body with the intent that all other members of the public body receive it.
207          (11) (a) "Quorum" means a simple majority of the membership of a public body, unless
208     otherwise defined by applicable law.
209          (b) "Quorum" does not include a meeting of two elected officials by themselves when
210     no action, either formal or informal, is taken on a subject over which these elected officials
211     have advisory power.
212          (12) "Recording" means an audio, or an audio and video, record of the proceedings of a
213     meeting that can be used to review the proceedings of the meeting.
214          (13) "Specified body":
215          (a) means an administrative, advisory, executive, or legislative body that:
216          (i) is not a public body;
217          (ii) consists of three or more members; and

218          (iii) includes at least one member who is:
219          (A) a legislator; and
220          (B) officially appointed to the body by the president of the Senate, speaker of the
221     House of Representatives, or governor; and
222          (b) does not include a body listed in Subsection (9)(c)(ii).
223          (14) "Transmit" means to send, convey, or communicate an electronic message by
224     electronic means.
225          Section 7. Section 59-1-403 is amended to read:
226          59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
227          (1) (a) Any of the following may not divulge or make known in any manner any
228     information gained by that person from any return filed with the commission:
229          (i) a tax commissioner;
230          (ii) an agent, clerk, or other officer or employee of the commission; or
231          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
232     town.
233          (b) An official charged with the custody of a return filed with the commission is not
234     required to produce the return or evidence of anything contained in the return in any action or
235     proceeding in any court, except:
236          (i) in accordance with judicial order;
237          (ii) on behalf of the commission in any action or proceeding under:
238          (A) this title; or
239          (B) other law under which persons are required to file returns with the commission;
240          (iii) on behalf of the commission in any action or proceeding to which the commission
241     is a party; or
242          (iv) on behalf of any party to any action or proceeding under this title if the report or
243     facts shown by the return are directly involved in the action or proceeding.
244          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may

245     admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
246     pertinent to the action or proceeding.
247          (2) This section does not prohibit:
248          (a) a person or that person's duly authorized representative from receiving a copy of
249     any return or report filed in connection with that person's own tax;
250          (b) the publication of statistics as long as the statistics are classified to prevent the
251     identification of particular reports or returns; and
252          (c) the inspection by the attorney general or other legal representative of the state of the
253     report or return of any taxpayer:
254          (i) who brings action to set aside or review a tax based on the report or return;
255          (ii) against whom an action or proceeding is contemplated or has been instituted under
256     this title; or
257          (iii) against whom the state has an unsatisfied money judgment.
258          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
259     commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
260     Rulemaking Act, provide for a reciprocal exchange of information with:
261          (i) the United States Internal Revenue Service; or
262          (ii) the revenue service of any other state.
263          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
264     corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
265     Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
266     other written statements with the federal government, any other state, any of the political
267     subdivisions of another state, or any political subdivision of this state, except as limited by
268     Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
269     government grant substantially similar privileges to this state.
270          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
271     corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,

272     Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
273     identity and other information of taxpayers who have failed to file tax returns or to pay any tax
274     due.
275          (d) Notwithstanding Subsection (1), the commission shall provide to the director of the
276     Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
277     requested by the director of the Division of Environmental Response and Remediation, any
278     records, returns, or other information filed with the commission under Chapter 13, Motor and
279     Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
280     participation fee.
281          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
282     provide that person sales and purchase volume data reported to the commission on a report,
283     return, or other information filed with the commission under:
284          (i) Chapter 13, Part 2, Motor Fuel; or
285          (ii) Chapter 13, Part 4, Aviation Fuel.
286          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
287     as defined in Section 59-22-202, the commission shall report to the manufacturer:
288          (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
289     manufacturer and reported to the commission for the previous calendar year under Section
290     59-14-407; and
291          (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
292     manufacturer for which a tax refund was granted during the previous calendar year under
293     Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
294          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
295     distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
296     from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
297          (h) Notwithstanding Subsection (1), the commission may:
298          (i) provide to the Division of Consumer Protection within the Department of

299     Commerce and the attorney general data:
300          (A) reported to the commission under Section 59-14-212; or
301          (B) related to a violation under Section 59-14-211; and
302          (ii) upon request, provide to any person data reported to the commission under
303     Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
304          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
305     of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
306     Management and Budget, provide to the committee or office the total amount of revenues
307     collected by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the
308     time period specified by the committee or office.
309          (j) Notwithstanding Subsection (1), the commission shall make the directory required
310     by Section 59-14-603 available for public inspection.
311          (k) Notwithstanding Subsection (1), the commission may share information with
312     federal, state, or local agencies as provided in Subsection 59-14-606(3).
313          (l) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
314     Recovery Services within the Department of Human Services any relevant information
315     obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
316     who has become obligated to the Office of Recovery Services.
317          (ii) The information described in Subsection (3)(l)(i) may be provided by the Office of
318     Recovery Services to any other state's child support collection agency involved in enforcing
319     that support obligation.
320          (m) (i) Notwithstanding Subsection (1), upon request from the state court
321     administrator, the commission shall provide to the state court administrator, the name, address,
322     telephone number, county of residence, and Social Security number on resident returns filed
323     under Chapter 10, Individual Income Tax Act.
324          (ii) The state court administrator may use the information described in Subsection
325     (3)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.

326          (n) Notwithstanding Subsection (1), the commission shall at the request of a
327     committee, commission, or task force of the Legislature provide to the committee, commission,
328     or task force of the Legislature any information relating to a tax imposed under Chapter 9,
329     Taxation of Admitted Insurers, relating to the study required by Section 59-9-101.
330          (o) (i) As used in this Subsection (3)(o)[, "office"]:
331          (A) "Income tax information" means information gained by the commission that is
332     required to be attached to or included in a return filed with the commission under Chapter 7,
333     Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
334          (B) "Office" means the[:(A)] Office of the Legislative Fiscal Analyst[; or (B)],
335     established in Section 36-12-13, the Office of Legislative Research and General Counsel,
336     established in Section 36-12-12, the Governor's Office of Economic Development, created in
337     Section 63N-1-201, or the Governor's Office of Management and Budget, created in Section
338     63J-4-2011.
339          (C) "Other tax information" means information gained by the commission that is
340     required to be attached to or included in a return filed with the commission except for a return
341     filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
342     Income Tax Act.
343          (D) "Tax information" means income tax information or other tax information.
344          (ii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
345     (3)(o)[(iii)](ii)(B) or (C), the commission shall at the request of an office provide to the office
346     all income tax information[:].
347          [(A) gained by the commission; and]
348          [(B) required to be attached to or included in returns filed with the commission.]
349          [(iii) (A) An] (B) For purposes of a request for income tax information made under
350     Subsection (3)(o)(ii)(A), an office may not request and the commission may not provide to an
351     office a person's[:] address, name, social security number, or taxpayer identification number.
352          [(I) address;]

353          [(II) name;]
354          [(III) Social Security number; or]
355          [(IV) taxpayer identification number.]
356          [(B) The] (C) In providing income tax information to an office, the commission shall
357     in all instances protect the privacy of a person as required by Subsection (3)(o)[(iii)(A)](ii)(B).
358          (iii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
359     (3)(o)(iii)(B), the commission shall at the request of an office provide to the office other tax
360     information.
361          (B) Before providing other tax information to an office, the commission shall redact or
362     remove any name, address, social security number, or taxpayer identification number.
363          (iv) An office may provide tax information received from the commission in
364     accordance with this Subsection (3)(o) only:
365          (A) as[:] a fiscal estimate, fiscal note information, or statistical information; and
366          [(I) a fiscal estimate;]
367          [(II) fiscal note information; or]
368          [(III) statistical information; and]
369          (B) if the tax information is classified to prevent the identification of a particular
370     return.
371          (v) (A) A person may not request tax information from an office under Title 63G,
372     Chapter 2, Government Records Access and Management Act, or this section, if that office
373     received the tax information from the commission in accordance with this Subsection (3)(o).
374          (B) An office may not provide to a person that requests tax information in accordance
375     with Subsection (3)(o)(v)(A) any tax information other than the tax information the office
376     provides in accordance with Subsection (3)(o)(iv).
377          (p) Notwithstanding Subsection (1), the commission may provide to the governing
378     board of the agreement or a taxing official of another state, the District of Columbia, the United
379     States, or a territory of the United States:

380          (i) the following relating to an agreement sales and use tax:
381          (A) information contained in a return filed with the commission;
382          (B) information contained in a report filed with the commission;
383          (C) a schedule related to Subsection (3)(p)(i)(A) or (B); or
384          (D) a document filed with the commission; or
385          (ii) a report of an audit or investigation made with respect to an agreement sales and
386     use tax.
387          (q) Notwithstanding Subsection (1), the commission may provide information
388     concerning a taxpayer's state income tax return or state income tax withholding information to
389     the Driver License Division if the Driver License Division:
390          (i) requests the information; and
391          (ii) provides the commission with a signed release form from the taxpayer allowing the
392     Driver License Division access to the information.
393          (r) Notwithstanding Subsection (1), the commission shall provide to the Utah
394     Communications Authority, or a division of the Utah Communications Authority, the
395     information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
396     63H-7a-502.
397          (s) Notwithstanding Subsection (1), the commission shall provide to the Utah
398     Educational Savings Plan information related to a resident or nonresident individual's
399     contribution to a Utah Educational Savings Plan account as designated on the resident or
400     nonresident's individual income tax return as provided under Section 59-10-1313.
401          (t) Notwithstanding Subsection (1), for the purpose of verifying eligibility under
402     Sections 26-18-2.5 and 26-40-105, the commission shall provide an eligibility worker with the
403     Department of Health or its designee with the adjusted gross income of an individual if:
404          (i) an eligibility worker with the Department of Health or its designee requests the
405     information from the commission; and
406          (ii) the eligibility worker has complied with the identity verification and consent

407     provisions of Sections 26-18-2.5 and 26-40-105.
408          (u) Notwithstanding Subsection (1), the commission may provide to a county, as
409     determined by the commission, information declared on an individual income tax return in
410     accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
411     authorized under Section 59-2-103.
412          (4) (a) Each report and return shall be preserved for at least three years.
413          (b) After the three-year period provided in Subsection (4)(a) the commission may
414     destroy a report or return.
415          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
416          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
417     the person shall be dismissed from office and be disqualified from holding public office in this
418     state for a period of five years thereafter.
419          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
420     accordance with Subsection (3)(o)(iii) or a person that requests information in accordance with
421     Subsection (3)(o)(v):
422          (i) is not guilty of a class A misdemeanor; and
423          (ii) is not subject to:
424          (A) dismissal from office in accordance with Subsection (5)(b); or
425          (B) disqualification from holding public office in accordance with Subsection (5)(b).
426          (6) Except as provided in Section 59-1-404, this part does not apply to the property tax.
427          Section 8. Section 63N-1-201 is amended to read:
428          63N-1-201. Creation of office -- Responsibilities.
429          (1) There is created the Governor's Office of Economic Development.
430          (2) The office is:
431          (a) responsible for economic development and economic development planning in the
432     state; and
433          (b) the industrial promotion authority of the state.

434          (3) The office shall:
435          (a) administer and coordinate state and federal economic development grant programs;
436          (b) promote and encourage the economic, commercial, financial, industrial,
437     agricultural, and civic welfare of the state;
438          (c) act to create, develop, attract, and retain business, industry, and commerce in the
439     state;
440          (d) act to enhance the state's economy;
441          (e) administer programs over which the office is given administrative supervision by
442     the governor;
443          (f) submit an annual written report as described in Section 63N-1-301; [and]
444          (g) comply with the requirements of Section 36-30-202; and
445          [(g)] (h) perform other duties as provided by the Legislature.
446          (4) In order to perform its duties under this title, the office may:
447          (a) enter into a contract or agreement with, or make a grant to, a public or private
448     entity, including a municipality, if the contract or agreement is not in violation of state statute
449     or other applicable law;
450          (b) except as provided in Subsection (4)(c), receive and expend funds from a public or
451     private source for any lawful purpose that is in the state's best interest; and
452          (c) solicit and accept a contribution of money, services, or facilities from a public or
453     private donor, but may not use the contribution for publicizing the exclusive interest of the
454     donor.
455          (5) Money received under Subsection (4)(c) shall be deposited in the General Fund as
456     dedicated credits of the office.
457          (6) (a) The office shall obtain the advice of the board before implementing a change to
458     a policy, priority, or objective under which the office operates.
459          (b) Subsection (6)(a) does not apply to the routine administration by the office of
460     money or services related to the assistance, retention, or recruitment of business, industry, or

461     commerce in the state.
462          Section 9. Sales tax exemption study.
463          (1) The Utah State Tax Commission, in consultation with the Office of the Legislative
464     Fiscal Analyst, shall study and prepare a report on the state revenue impacts of the sales and
465     use tax exemptions under Section 59-12-104.
466          (2) The Utah State Tax Commission and Office of the Legislative Fiscal Analyst shall
467     present the findings of the report to the Revenue and Taxation Interim Committee before
468     November 30, 2017.
469          Section 10. Effective date.
470          If approved by two-thirds of all the members elected to each house, this bill takes effect
471     upon approval by the governor, or the day following the constitutional time limit of Utah
472     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
473     the date of veto override.
474          Section 11. Repeal date.
475          Uncodified Section 9, Sales tax exemption study, is repealed on November 30, 2017.