1     
EVALUATING TAX REVENUE FOREGONE FROM

2     
FEDERALLY CONTROLLED LANDS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Ken Ivory

6     
Senate Sponsor: David P. Hinkins

7     Cosponsors:
8     Cheryl K. Acton
9     Carl R. Albrecht
10     Patrice M. Arent
11     Stewart E. Barlow
12     Joel K. Briscoe
13     Walt Brooks
14     Rebecca Chavez-Houck
15     Scott H. Chew
16     LaVar Christensen
17     Kay J. Christofferson
18     Kim F. Coleman
19     Bruce R. Cutler
20     Brad M. Daw
21     Susan Duckworth
22     James A. Dunnigan
23     Rebecca P. Edwards
24     Steve Eliason
25     Justin L. Fawson
26     Gage Froerer
27     Francis D. Gibson
28     Brian M. Greene
29     Keith Grover
Craig Hall
Stephen G. Handy
Timothy D. Hawkes
Sandra Hollins
Gregory H. Hughes
Eric K. Hutchings
Michael S. Kennedy
Brian S. King
John Knotwell
Karen Kwan
Bradley G. Last
Karianne Lisonbee
A. Cory Maloy
Daniel McCay
Michael K. McKell
Kelly B. Miles
Carol Spackman Moss
Jefferson Moss
Merrill F. Nelson
Michael E. Noel
Derrin R. Owens
Lee B. Perry
Jeremy A. Peterson
Val L. Peterson
Dixon M. Pitcher
Val K. Potter
Marie H. Poulson
Susan Pulsipher
Tim Quinn
Paul Ray
Edward H. Redd
Marc K. Roberts
Adam Robertson
Angela Romero
Douglas V. Sagers
Scott D. Sandall
Mike Schultz
Travis M. Seegmiller
V. Lowry Snow
Robert M. Spendlove
Keven J. Stratton
Norman K. Thurston
Raymond P. Ward
Christine F. Watkins
R. Curt Webb
Elizabeth Weight

30     John R. Westwood
31     Mark A. Wheatley
32     Logan Wilde
33     Brad R. Wilson
34     Mike Winder

35     

36     LONG TITLE
37     General Description:
38          This bill enacts provisions relating to federally controlled land within the state.
39     Highlighted Provisions:
40          This bill:
41          ▸     requires the Commission on Federalism to hold a hearing on the impact of the
42     federal payments in lieu of tax on the state;
43          ▸     authorizes the Commission on Federalism to engage each of the state's elected
44     members of Congress in coordinating with the federal government to secure
45     payments in lieu of tax that are equivalent to the property tax the state would
46     generate but for federally controlled land in the state; and
47          ▸     requires the Commission on Federalism to communicate the results of the hearing
48     and any action taken to certain individuals and entities, including the state's elected
49     members of Congress.
50     Money Appropriated in this Bill:
51          None
52     Other Special Clauses:
53          This bill provides a special effective date.
54     Utah Code Sections Affected:
55     AMENDS:
56          63C-4a-303, as last amended by Laws of Utah 2014, Chapter 221
57          63I-1-263, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
58     and 470

59     ENACTS:
60          63C-4a-307, Utah Code Annotated 1953
61     

62     Be it enacted by the Legislature of the state of Utah:
63          Section 1. Section 63C-4a-303 is amended to read:
64          63C-4a-303. Duties of Commission on Federalism.
65          (1) In accordance with Section 63C-4a-304, the commission may evaluate a federal
66     law:
67          (a) as agreed by a majority of the commission; or
68          (b) submitted to the commission by a council member.
69          (2) The commission may request information regarding a federal law under evaluation
70     from a United States senator or representative elected from the state.
71          (3) If the commission finds that a federal law is not authorized by the United States
72     Constitution or violates the principle of federalism as described in Subsection 63C-4a-304(2), a
73     commission cochair may:
74          (a) request from a United States senator or representative elected from the state:
75          (i) information about the federal law; or
76          (ii) assistance in communicating with a federal governmental entity regarding the
77     federal law;
78          (b) (i) give written notice of an evaluation made under Subsection (1) to the federal
79     governmental entity responsible for adopting or administering the federal law; and
80          (ii) request a response by a specific date to the evaluation from the federal
81     governmental entity; and
82          (c) request a meeting, conducted in person or by electronic means, with the federal
83     governmental entity, a representative from another state, or a United States Senator or
84     Representative elected from the state to discuss the evaluation of federal law and any possible
85     remedy.
86          (4) The commission may recommend to the governor that the governor call a special

87     session of the Legislature to give the Legislature an opportunity to respond to the commission's
88     evaluation of a federal law.
89          (5) A commission cochair may coordinate the evaluation of and response to federal law
90     with another state as provided in Section 63C-4a-305.
91          (6) On May 20 and October 20 of each year, the commission shall submit a report by
92     electronic mail to the Legislative Management Committee and the Government Operations
93     Interim Committee that summarizes:
94          (a) action taken by the commission in accordance with this section; and
95          (b) action taken by, or communication received from, any of the following in response
96     to a request or inquiry made, or other action taken, by the commission:
97          (i) a United States senator or representative elected from the state;
98          (ii) a representative of another state; or
99          (iii) a federal entity, official, or employee.
100          (7) The commission shall keep a current list on the Legislature's website of:
101          (a) a federal law that the commission evaluates under Subsection (1);
102          (b) an action taken by a cochair of the commission under Subsection (3);
103          (c) any coordination undertaken with another state under Section 63C-4a-305; and
104          (d) any response received from a federal government entity that was requested under
105     Subsection (3).
106          (8) The commission shall develop curriculum for a seminar on the principles of
107     federalism. The curriculum shall be available to the general public and include:
108          (a) fundamental principles of federalism;
109          (b) the sovereignty, supremacy, and jurisdiction of the individual states, including their
110     police powers;
111          (c) the history and practical implementation of the Tenth Amendment to the United
112     States Constitution;
113          (d) the authority and limits on the authority of the federal government as found in the
114     United States Constitution;

115          (e) the relationship between the state and federal governments;
116          (f) methods of evaluating a federal law in the context of the principles of federalism;
117          (g) how and when challenges should be made to a federal law or regulation on the basis
118     of federalism;
119          (h) the separate and independent powers of the state that serve as a check on the federal
120     government;
121          (i) first amendment rights and freedoms contained therein; and
122          (j) any other issues relating to federalism the commission considers necessary.
123          (9) The commission may apply for and receive grants, and receive private donations to
124     assist in funding the creation, enhancement, and dissemination of the curriculum.
125          (10) Before the final meeting of 2019, the commission shall conduct the activities
126     described in Section 63C-4a-307.
127          Section 2. Section 63C-4a-307 is enacted to read:
128          63C-4a-307. Foregone property tax evaluation procedures.
129          (1) As used in this section:
130          (a) (i) "Federally controlled land" means any land within the exterior boundaries of the
131     state that is controlled by the United States government for the entire taxable year.
132          (ii) "Federally controlled land" does not include:
133          (A) a military installation;
134          (B) a federal enclave as described in United States Constitution, Article I, Section 8,
135     clause 17; or
136          (C) land owned by an Indian tribe as described in 18 U.S.C. Sec. 1151.
137          (b) (i) "Payments in lieu of tax" means payments made by the federal government to a
138     county, municipality, or school district of the state.
139          (ii) "Payments in lieu of tax" includes a payment under:
140          (A) the in lieu of property taxes program, 31 U.S.C. Sec. 6901, et seq., commonly
141     referred to as PILT; and
142          (B) the impact aid program, 20 U.S.C. Sec. 7701, et seq.

143          (2) (a) The commission shall hold a hearing regarding the impact on the state from the
144     failure of the federal government to make payments in lieu of tax that are equivalent to the
145     property tax revenue that the state would generate but for federally controlled land.
146          (b) The commission shall invite and accept testimony on the information described in
147     Subsection (2)(a) and the impact on the ability and the duty of the state to fund education and
148     to protect and promote the health, safety, and welfare of the state, the state's political
149     subdivisions, and the residents of the state from the following:
150          (i) representatives from:
151          (A) the office of each United States senator or representative elected from the state;
152          (B) any federal government entity administering the payments in lieu of tax;
153          (C) the Legislative Management Committee;
154          (D) the Office of the Governor;
155          (E) the Office of the Attorney General;
156          (F) the State Tax Commission;
157          (G) the Public Lands Policy Coordinating Office, created in Section 63J-4-602;
158          (H) the school districts;
159          (I) the association of school districts;
160          (J) the superintendents' association;
161          (K) the charter schools;
162          (L) school community councils;
163          (M) the counties;
164          (N) the municipalities; and
165          (O) nonpartisan entities serving state governments;
166          (ii) other states' officials or agencies; and
167          (iii) other interested individuals or entities.
168          (3) In accordance with this part, the commission may engage each United States
169     senator or representative elected from the state in coordinating with the federal government to
170     secure payments in lieu of tax that are equivalent to the property tax revenue the state would

171     generate but for federally controlled land.
172          (4) The commission shall communicate the information received during the hearing
173     described in Subsection (2) and any action taken under Subsection (3) to the individuals and
174     entities described in Subsection (2)(b).
175          Section 3. Section 63I-1-263 is amended to read:
176          63I-1-263. Repeal dates, Titles 63A to 63N.
177          (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
178          (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
179          (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
180     1, [2018] 2028.
181          (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
182     repealed November 30, 2019.
183          (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
184     2020.
185          (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
186     repealed July 1, 2021.
187          (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
188     2018.
189          (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
190     2023.
191          (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
192     2020.
193          (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
194          (11) On July 1, 2025:
195          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
196     Development Coordinating Committee," is repealed;
197          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
198     sites for the transplant of species to local government officials having jurisdiction over areas

199     that may be affected by a transplant.";
200          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
201     Coordinating Committee" is repealed;
202          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
203     Coordinating Committee created in Section 63J-4-501 and" is repealed;
204          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
205     Coordinating Committee and" is repealed;
206          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
207     accordingly;
208          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
209          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
210     word "and" is inserted immediately after the semicolon;
211          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
212          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
213     and
214          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
215     renumbered accordingly.
216          (12) (a) Subsection 63J-1-602.4(15) is repealed July 1, 2022.
217          (b) When repealing Subsection 63J-1-602.4(15), the Office of Legislative Research and
218     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
219     necessary changes to subsection numbering and cross references.
220          (13) The Crime Victim Reparations and Assistance Board, created in Section
221     63M-7-504, is repealed July 1, 2027.
222          (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
223          (15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
224          (16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
225     repealed January 1, 2021.
226          (b) Subject to Subsection (16)(c), Sections 59-7-610 and 59-10-1007 regarding tax

227     credits for certain persons in recycling market development zones, are repealed for taxable
228     years beginning on or after January 1, 2021.
229          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
230          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
231     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
232          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
233     the expenditure is made on or after January 1, 2021.
234          (d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
235     credit in accordance with Section 59-7-610 or 59-10-1007 if:
236          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
237          (ii) (A) for the purchase price of machinery or equipment described in Section
238     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
239     2020; or
240          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
241     expenditure is made on or before December 31, 2020.
242          (17) Section 63N-2-512 is repealed on July 1, 2021.
243          (18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
244     January 1, 2021.
245          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
246     calendar years beginning on or after January 1, 2021.
247          (c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
248     accordance with Section 59-9-107 if:
249          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
250     31, 2020; and
251          (ii) the qualified equity investment that is the basis of the tax credit is certified under
252     Section 63N-2-603 on or before December 31, 2023.
253          (19) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
254     is repealed January 1, 2023.

255          (20) Title 63N, Chapter 12, Part 3, Utah Broadband Outreach Center, is repealed July
256     1, 2018.
257          (21) Title 63N, Chapter 12, Part 4, Career and Technical Education Board, is repealed
258     July 1, 2018.
259          Section 4. Effective date.
260          If approved by two-thirds of all the members elected to each house, this bill takes effect
261     upon approval by the governor, or the day following the constitutional time limit of Utah
262     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
263     the date of veto override.