Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 137 (2016GS)

Sponsor

Sen. Shiozawa, B.

Final action

Governor Signed 3/28/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends a definition provision;
• modifies the circumstances when an opinion question is required;
• amends how money is distributed; and
• makes technical changes.

Every vote on this bill

Bill text

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Thu, Feb 18, 2016 at 4:10 PM by lpoole.
COUNTY OPTION FUNDING FOR BOTANICAL,
CULTURAL, RECREATIONAL, AND ZOOLOGICAL
ORGANIZATIONS AND FACILITIES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brian E. Shiozawa
House Sponsor: 
 Eric K. Hutchings
LONG TITLE
General Description:
This bill modifies provisions related to funding for botanical, cultural, recreational, and
zoological organizations and facilities.
Highlighted Provisions:
This bill:
▸ amends a definition provision;
▸ modifies the circumstances when an opinion question is required;
▸ amends how money is distributed; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-12-702
, as last amended by Laws of Utah 2011, Chapter 416
59-12-703
, as last amended by Laws of Utah 2012, Chapter 254
59-12-704
, as last amended by Laws of Utah 2011, Chapters 309 and 416
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-12-702
 is amended to read:
59-12-702.
Definitions.
As used in this part:
(1) "Administrative unit" means a division of a private nonprofit organization or
institution that:
(a) would, if it were a separate entity, be a botanical organization or cultural
organization; and
(b) consistently maintains books and records separate from those of its parent
organization.
(2) "Aquarium" means a park or building where a collection of water animals and
plants is kept for study, conservation, and public exhibition.
(3) "Aviary" means a park or building where a collection of birds is kept for study,
conservation, and public exhibition.
[
(2)
] 
(4)
 "Botanical organization" means:
(a) a private nonprofit organization or institution having as its primary purpose the
advancement and preservation of plant science through horticultural display, botanical
research, and community education; or
(b) an administrative unit.
[
(3)
] 
(5)
 "Cultural facility" [
is as
] 
means the same as that term is
 defined in Section
59-12-602
.
[
(4)
] 
(6)
 (a) "Cultural organization":
(i) means:
(A) a private nonprofit organization or institution having as its primary purpose the
advancement and preservation of:
(I) natural history;
(II) art;
(III) music;
(IV) theater;
(V) dance; or
(VI) cultural arts, including literature, a motion picture, or storytelling;
(B) an administrative unit; and
(ii) includes, for purposes of Subsections 
59-12-704
(1)(d) and (6) only:
(A) a private nonprofit organization or institution having as its primary purpose the
advancement and preservation of history; or
(B) a municipal or county cultural council having as its primary purpose the
advancement and preservation of:
(I) history;
(II) natural history;
(III) art;
(IV) music;
(V) theater; or
(VI) dance.
(b) "Cultural organization" does not include:
(i) an agency of the state;
(ii) except as provided in Subsection [
(4)
] 
(6)
(a)(ii)(B), a political subdivision of the
state;
(iii) an educational institution whose annual revenues are directly derived more than
50% from state funds; or
(iv) in a county of the first or second class, a radio or television broadcasting network
or station, cable communications system, newspaper, or magazine.
[
(5)
] 
(7)
 "Institution" means an institution listed in Subsections 
53B-1-102
(1)(b)
through (k).
[
(6)
] 
(8)
 "Recreational facility" means a publicly owned or operated park, campground,
marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system,
or other facility used for recreational purposes.
[
(7)
] 
(9)
 "Rural radio station" means a nonprofit radio station based in a county of the
third, fourth, fifth, or sixth class.
[
(8)
] 
(10)
 In a county of the first class, "zoological facility" means a public,
public-private partnership, or private nonprofit building, exhibit, utility and infrastructure,
walkway, pathway, roadway, office, administration facility, public service facility, educational
facility, enclosure, public viewing area, animal barrier, animal housing, animal care facility,
and veterinary and hospital facility related to the advancement, exhibition, or preservation of a
mammal, bird, reptile, 
fish,
 or an amphibian.
[
(9)
] 
(11)
 (a) (i) Except as provided in Subsection [
(9)
] 
(11)
(a)(ii), "zoological
organization" means a public, public-private partnership, or private nonprofit organization
having as its primary purpose the advancement and preservation of zoology.
(ii) In a county of the first class, "zoological organization" means a nonprofit
organization having as its primary purpose the advancement and exhibition of a mammal, bird,
reptile, 
fish,
 or an amphibian to an audience of 75,000 or more persons annually.
(b) "Zoological organization" does not include an agency of the state, educational
institution, radio or television broadcasting network or station, cable communications system,
newspaper, or magazine.
(12) "Zoological park" means a park or garden where a collection of wild animals is
kept for study, conservation, and public exhibition.
Section 2. Section 
59-12-703
 is amended to read:
59-12-703.
Opinion question election -- Base -- Rate -- Imposition of tax --
Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
-- Notice requirements.
(1) (a) Subject to the other provisions of this section, a county legislative body may
submit an opinion question to the residents of that county, by majority vote of all members of
the legislative body, so that each resident of the county, except residents in municipalities that
have already imposed a sales and use tax under Part 14, City or Town Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
opportunity to express the resident's opinion on the imposition of a local sales and use tax of
.1% on the transactions described in Subsection 
59-12-103
(1) located within the county, to:
(i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
organizations, cultural organizations, and zoological organizations, and rural radio stations, in
that county; or
(ii) provide funding for a botanical organization, cultural organization, or zoological
organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
furtherance of the botanical organization's, cultural organization's, or zoological organization's
primary purpose.
(b) The opinion question required by this section shall state:
"Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
use tax for (list the purposes for which the revenues collected from the sales and use tax shall
be expended)?"
(c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
under this section on:
(i) the sales and uses described in Section 
59-12-104
 to the extent the sales and uses
are exempt from taxation under Section 
59-12-104
;
(ii) sales and uses within municipalities that have already imposed a sales and use tax
under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
Zoological Organizations or Facilities; and
(iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(e) A county legislative body imposing a tax under this section shall impose the tax on
amounts paid or charged for food and food ingredients if the food and food ingredients are sold
as part of a bundled transaction attributable to food and food ingredients and tangible personal
property other than food and food ingredients.
(f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
Government Bonding Act.
(2) (a) If the county legislative body determines that a majority of the county's
registered voters voting on the imposition of the tax have voted in favor of the imposition of
the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
majority vote of all members of the legislative body on the transactions:
(i) described in Subsection (1); and
(ii) within the county, including the cities and towns located in the county, except those
cities and towns that have already imposed a sales and use tax under Part 14, City or Town
Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
Facilities.
(b) A county legislative body may revise county ordinances to reflect 
Ŝ→ [
a
] ←Ŝ
statutory
Ŝ→ [
[
]
 changes to the distribution formula or eligible recipients of revenues generated from a tax
imposed under Subsection (2)(a) 
 [
] 
increase to the rate of the tax authorized under this part
:
(i) after the county legislative body submits an opinion question to residents of the
county in accordance with Subsection (1) giving them the opportunity to express their opinion
on the proposed revisions to county ordinances; and
(ii) if the county legislative body determines that a majority of those voting on the
opinion question have voted in favor of the revisions.
] 
without submitting an opinion question to
159a 
residents of the county.
 ←Ŝ
(3) Subject to Section 
59-12-704
, revenues collected from a tax imposed under
Subsection (2) shall be expended:
(a) to fund cultural facilities, recreational facilities, and zoological facilities located
within the county or a city or town located in the county, except a city or town that has already
imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
Cultural, Recreational, and Zoological Organizations or Facilities;
(b) to fund ongoing operating expenses of:
(i) recreational facilities described in Subsection (3)(a);
(ii) botanical organizations, cultural organizations, and zoological organizations within
the county; and
(iii) rural radio stations within the county; and
(c) as stated in the opinion question described in Subsection (1).
(4) (a) A tax authorized under this part shall be:
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
period in accordance with this section.
(b) A tax under this part is not subject to Subsections 
59-12-205
(2) through (6).
(5) (a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(b)(ii) from the county.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
tax.
(c) (i) The enactment of a tax takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment of the tax; and
(B) if the billing period for the transaction begins before the effective date of the
enactment of the tax under this section.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is rendered on or after the effective date of the repeal of the tax imposed under this
section.
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
repeal of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
(f) (i) The enactment of a tax takes effect on the first day of the first billing period:
(A) that begins on or after the effective date of the enactment of the tax; and
(B) if the billing period for the transaction begins before the effective date of the
enactment of the tax under this section.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is rendered on or after the effective date of the repeal of the tax imposed under this
section.
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
Section 3. Section 
59-12-704
 is amended to read:
59-12-704.
Distribution of revenues -- Advisory board creation -- Determining
operating expenses -- Administrative charge.
(1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
this section, any revenues collected by a county of the first class under this part shall be
distributed annually by the county legislative body to support cultural facilities, recreational
facilities, and zoological facilities and botanical organizations, cultural organizations, and
zoological organizations within that first class county as follows:
(a) 30% of the revenue collected by the county under this section shall be distributed
by the county legislative body to support cultural facilities and recreational facilities located
within the county;
(b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
[
12-1/8%
] 
16%
 of the revenue collected by the county under this section shall be distributed by
the county legislative body to support no more than three zoological facilities and zoological
organizations located within the county, [
with 94.5% of that revenue being distributed to
zoological facilities and zoological organizations with average annual operating expenses of
$2,000,000 or more and 5.5% of that revenue being distributed to zoological facilities and
zoological organizations with average annual operating expenses of less than $2,000,000;
]
having average annual operating expenses of $1,500,000 or more as determined under
Subsection (3), with:
(A) 63.5% of that revenue being distributed to support a zoological organization
having as its primary purpose the operation of a zoological park, or a zoological facility that is
part of or integrated with a zoological park;
(B) 28.25% of that revenue being distributed to support a zoological organization
having as its primary purpose the operation of an aquarium, or a zoological facility that is part
of or integrated with an aquarium; and
(C) 8.25% of that revenue being distributed to support a zoological organization having
as its primary purpose the operation of an aviary, or a zoological facility that is part of or
integrated with an aviary; and
(ii) [
except as provided in Subsection (1)(b)(iii),
] 
if more than one zoological
organization or zoological facility qualifies to receive the money described in Subsection
(1)(b)(i)(A), (B), or (C),
 the county legislative body shall distribute the money described in
[
Subsection (1)(b)(i) among the zoological facilities and zoological organizations in proportion
to their average annual operating expenses as determined under Subsection (3); and (iii) if a
zoological facility or zoological organization is created or relocated within the county after
June 1, 2003, the county legislative body shall distribute the money described in Subsection
(1)(b)(i) as it determines appropriate;
] 
the subsection for which more than one zoological
organization or zoological facility qualifies to whichever zoological organization or zoological
facility the county legislative body determines is most appropriate, except that a zoological
organization or zoological facility may not receive money under more than one subsection
under Subsection (1)(b)(i); and
(iii) if no zoological organization or zoological facility qualifies to receive money
described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the
money described in the subsection for which no zoological organization or zoological facility
qualifies among the zoological organizations or zoological facilities qualifying for and
receiving money under the other subsections in proportion to the zoological organizations' or
zoological facilities' average annual operating expenses as determined under Subsection (3);
(c) (i) [
48-7/8%
] 
45%
 of the revenue collected by the county under this section shall be
distributed to no more than [
] 
 botanical organizations and cultural organizations with
average annual operating expenses of more than $250,000 as determined under Subsection (3);
(ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
money described in Subsection (1)(c)(i) among the botanical organizations and cultural
organizations in proportion to their average annual operating expenses as determined under
Subsection (3); and
(iii) the amount distributed to any botanical organization or cultural organization
described in Subsection (1)(c)(i) may not exceed 35% of the botanical organization's or cultural
organization's operating budget; and
(d) (i) 9% of the revenue collected by the county under this section shall be distributed
to botanical organizations and cultural organizations that do not receive revenue under
Subsection (1)(c)(i); and
(ii) the county legislative body shall determine how the money shall be distributed
among the botanical organizations and cultural organizations described in Subsection (1)(d)(i).
(2) (a) The county legislative body of each county shall create an advisory board to
advise the county legislative body on disbursement of funds to botanical organizations and
cultural organizations under Subsection (1)(c)(i).
(b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
appointed by the county legislative body.
(ii) In a county of the first class, two of the seven members of the advisory board under
Subsection (2)(a) shall be appointed from the Utah Arts Council.
(3) (a) Except as provided in Subsection (3)(b), to be eligible to receive money
collected by the county under this part, a botanical organization, cultural organization, [
and
]
zoological organization
, and zoological facility
 located within a county of the first class shall,
every [
three years
] 
year
:
(i) calculate [
their
] 
its
 average annual operating expenses based upon audited operating
expenses for three preceding fiscal years; and
(ii) submit to the appropriate county legislative body:
(A) a verified audit of annual operating expenses for each of those three preceding
fiscal years; and
(B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
(b) The county legislative body may waive the operating expenses reporting
requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
(4) When calculating average annual operating expenses as described in Subsection
(3), each botanical organization, cultural organization, and zoological organization shall use the
same three-year fiscal period as determined by the county legislative body.
(5) (a) By July 1 of each year, the county legislative body of a first class county may
index the threshold amount in Subsections (1)(c) and (d).
(b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
(6) (a) In a county except for a county of the first class, the county legislative body shall
by ordinance provide for the distribution of the entire amount of the revenues generated by the
tax imposed by this section:
(i) as provided in this Subsection (6); and
(ii) as stated in the opinion question described in Subsection 
59-12-703
(1).
(b) Pursuant to an interlocal agreement established in accordance with Title 11,
Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
to a city, town, or political subdivision within the county revenues generated by a tax under this
part.
(c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
more organizations or facilities defined in Section 
59-12-702
 regardless of whether the
revenues are distributed:
(i) directly by the county described in Subsection (6)(a) to be used for an organization
or facility defined in Section 
59-12-702
; or
(ii) in accordance with an interlocal agreement described in Subsection (6)(b).
(7) A county legislative body may retain up to 1.5% of the proceeds from a tax under
this part for the cost of administering this part.
(8) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenues the commission collects from a tax under this part.
Section 4. 
Effective date.
This bill takes effect on January 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel