Bill Summary – FastDemocracy

Enrolled Copy                                                                           H.B. 356
                                   RAILROAD AMENDMENTS
                                       2020 GENERAL SESSION
                                            STATE OF UTAH
                                    Chief Sponsor: Joel Ferry
                                 Senate Sponsor: Scott D. Sandall
 6
 LONG TITLE
 General Description:
         This bill modifies provisions related to railroads.
 Highlighted Provisions:
         This bill:
         < repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use
 in a locomotive engine;
         < requires an approximate value of the resulting revenue be deposited into the General
 Fund;
         < creates the Rail Transportation Restricted Account;
         < provides that upon appropriation, the Department of Transportation shall use the
 money in the Rail Transportation Restricted Account for construction projects
 related to railroad crossings on class A, class B, and class C roads; and
         < makes technical changes.
 Money Appropriated in this Bill:
         This bill appropriates in fiscal year 2021:
         < to the Transit Transportation Investment Fund -- Rail Transportation Restricted
 Account, as an ongoing appropriation:
             C   from the General Fund, $3,660,000.
         < to the Transit Transportation Investment Fund -- Rail Transportation Restricted
 Account, as a one-time appropriation:
             C   from the General Fund, ($2,135,000).
 Other Special Clauses:
       H.B. 356                                                                 Enrolled Copy
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        11-41-102, as last amended by Laws of Utah 2016, Chapter 176
        26-36b-208, as last amended by Laws of Utah 2019, Chapters 1 and 393
        35A-8-308, as last amended by Laws of Utah 2017, Chapters 181 and 421
        35A-8-309, as last amended by Laws of Utah 2019, Chapter 493
        59-1-401, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
        59-12-102, as last amended by Laws of Utah 2019, Chapters 325, 481, and 486
        59-12-103, as last amended by Laws of Utah 2019, Chapters 1, 136, and 479
        59-12-104, as last amended by Laws of Utah 2019, Chapters 136 and 486
        59-12-108, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
 ENACTS:
        72-2-131, Utah Code Annotated 1953
44
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 11-41-102 is amended to read:
        11-41-102. Definitions.
        As used in this chapter:
        (1) "Agreement" means an oral or written agreement between a:
        (a) (i) county; or
        (ii) municipality; and
        (b) person.
        (2) "Municipality" means a:
        (a) city;
        (b) town; or
        (c) metro township.
        (3) "Payment" includes:
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       Enrolled Copy                                                                               H.B. 356
            (a) a payment;
            (b) a rebate;
            (c) a refund; or
            (d) an amount similar to Subsections (3)(a) through (c).
            (4) "Regional retail business" means a:
            (a) retail business that occupies a floor area of more than 80,000 square feet;
            (b) dealer as defined in Section 41-1a-102;
            (c) retail shopping facility that has at least two anchor tenants if the total number of
 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
 feet; or
            (d) grocery store that occupies a floor area of more than 30,000 square feet.
            (5) (a) "Sales and use tax" means a tax:
            (i) imposed on transactions within a:
            (A) county; or
            (B) municipality; and
            (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
 Sales and Use Tax Act.
            (b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
 authorized under:
            (i) Subsection 59-12-103(2)(a)(i);
            (ii) Subsection 59-12-103(2)(b)(i);
            (iii) Subsection 59-12-103(2)(c)(i);
            (iv) Subsection 59-12-103(2)(d);
            [(iv)] (v) Subsection 59-12-103(2)[(d)](e)(i)(A);
            [(v)] (vi) Section 59-12-301;
            [(vi)] (vii) Section 59-12-352;
            [(vii)] (viii) Section 59-12-353;
            [(viii)] (ix) Section 59-12-603; or
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        H.B. 356                                                                        Enrolled Copy
        [(ix)] (x) Section 59-12-1201.
        (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
        (i) to a person;
        (ii) by a:
        (A) county; or
        (B) municipality;
        (iii) to induce the person to locate or relocate a regional retail business within the:
        (A) county; or
        (B) municipality; and
        (iv) that are derived from a sales and use tax.
        (b) "Sales and use tax incentive payment" does not include funding for public
 infrastructure.
        Section 2. Section 26-36b-208 is amended to read:
        26-36b-208. Medicaid Expansion Fund.
        (1) There is created an expendable special revenue fund known as the Medicaid
 Expansion Fund.
        (2) The fund consists of:
        (a) assessments collected under this chapter;
        (b) intergovernmental transfers under Section 26-36b-206;
        (c) savings attributable to the health coverage improvement program as determined by
 the department;
        (d) savings attributable to the enhancement waiver program as determined by the
 department;
        (e) savings attributable to the Medicaid waiver expansion as determined by the
 department;
        (f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
 under Subsection 26-18-2.4(3) as determined by the department;
        (g) revenues collected from the sales tax described in Subsection 59-12-103[(13)](12);
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        Enrolled Copy                                                                         H.B. 356
        (h) gifts, grants, donations, or any other conveyance of money that may be made to the
 fund from private sources;
        (i) interest earned on money in the fund; and
        (j) additional amounts as appropriated by the Legislature.
        (3) (a) The fund shall earn interest.
        (b) All interest earned on fund money shall be deposited into the fund.
        (4) (a) A state agency administering the provisions of this chapter may use money from
 the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
        (i) the health coverage improvement program;
        (ii) the enhancement waiver program;
        (iii) a Medicaid waiver expansion; and
        (iv) the outpatient upper payment limit supplemental payments under Section
 26-36b-210.
        (b) A state agency administering the provisions of this chapter may not use:
        (i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
 payment limit supplemental payments; or
        (ii) money in the fund for any purpose not described in Subsection (4)(a).
        Section 3. Section 35A-8-308 is amended to read:
        35A-8-308. Throughput Infrastructure Fund.
        (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
        (2) The fund consists of money generated from the following revenue sources:
        (a) all amounts transferred to the fund [under Subsection 59-12-103(12)] by statute;
        (b) any voluntary contributions received;
        (c) appropriations made to the fund by the Legislature; and
        (d) all amounts received from the repayment of loans made by the impact board under
 Section 35A-8-309.
        (3) The state treasurer shall:
        (a) invest the money in the fund by following the procedures and requirements of Title
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        H.B. 356                                                                         Enrolled Copy
 51, Chapter 7, State Money Management Act; and
        (b) deposit all interest or other earnings derived from those investments into the fund.
        Section 4. Section 35A-8-309 is amended to read:
        35A-8-309. Throughput Infrastructure Fund administered by impact board --
 Uses -- Review by board -- Annual report -- First project.
        (1) The impact board shall:
        (a) make grants and loans from the Throughput Infrastructure Fund created in Section
 35A-8-308 for a throughput infrastructure project;
        (b) use money transferred to the Throughput Infrastructure Fund in accordance with
 [Subsection 59-12-103(12)] statute to provide a loan or grant to finance the cost of acquisition
 or construction of a throughput infrastructure project to one or more local political
 subdivisions, including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
 Cooperation Act;
        (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
 of the fund revolving;
        (d) determine provisions for repayment of loans;
        (e) establish criteria for awarding loans and grants; and
        (f) establish criteria for determining eligibility for assistance under this section.
        (2) The cost of acquisition or construction of a throughput infrastructure project
 includes amounts for working capital, reserves, transaction costs, and other amounts
 determined by the impact board to be allocable to a throughput infrastructure project.
        (3) The impact board may restructure or forgive all or part of a local political
 subdivision's or interlocal agency's obligation to repay loans for extenuating circumstances.
        (4) To receive assistance under this section, a local political subdivision or an
 interlocal agency shall submit a formal application containing the information that the impact
 board requires.
        (5) (a) The impact board shall:
        (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
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        Enrolled Copy                                                                            H.B. 356
 before approving the loan or grant and may condition its approval on whatever assurances the
 impact board considers necessary to ensure that proceeds of the loan or grant will be used in
 accordance with this section;
        (ii) ensure that each loan specifies terms for interest deferments, accruals, and
 scheduled principal repayment; and
        (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
 the appropriate local political subdivision or interlocal agency issued to the impact board and
 payable from the net revenues of a throughput infrastructure project.
        (b) An instrument described in Subsection (5)(a)(iii) may be:
        (i) non-recourse to the local political subdivision or interlocal agency; and
        (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
        (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
 from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
 the Legislature for the administration of the Throughput Infrastructure Fund.
        (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
 receipts to the fund.
        (7) The board shall include in the annual written report described in Section
 35A-1-109:
        (a) the number and type of loans and grants made under this section; and
        (b) a list of local political subdivisions or interlocal agencies that received assistance
 under this section.
        (8) (a) The first throughput infrastructure project considered by the impact board shall
 be a bulk commodities ocean terminal project.
        (b) Upon receipt of an application from an interlocal agency created for the sole
 purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
 terminal project, the impact board shall:
        (i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
 agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
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        H.B. 356                                                                             Enrolled Copy
 of the throughput infrastructure project; and
            (ii) fund the interlocal agency's application if the application meets all criteria
 established by the impact board.
            Section 5. Section 59-1-401 is amended to read:
            59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
 of limitations -- Commission authority to waive, reduce, or compromise penalty or
 interest.
            (1) As used in this section:
            (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
 commission:
            (i) has implemented the commission's GenTax system; and
            (ii) at least 30 days before implementing the commission's GenTax system as described
 in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
 stating:
            (A) the date the commission will implement the GenTax system with respect to the tax,
 fee, or charge; and
            (B) that, at the time the commission implements the GenTax system with respect to the
 tax, fee, or charge:
            (I) a person that files a return after the due date as described in Subsection (2)(a) is
 subject to the penalty described in Subsection (2)(c)(ii); and
            (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
 subject to the penalty described in Subsection (3)(b)(ii).
            (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
 charge, the later of:
            (i) the date on which the commission implements the commission's GenTax system
 with respect to the tax, fee, or charge; or
            (ii) 30 days after the date the commission provides the notice described in Subsection
 (1)(a)(ii) with respect to the tax, fee, or charge.
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        Enrolled Copy                                                                             H.B. 356
         (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
         (A) a tax, fee, or charge the commission administers under:
         (I) this title;
         (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
         (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
         (IV) Section 19-6-410.5;
         (V) Section 19-6-714;
         (VI) Section 19-6-805;
         (VII) Section 34A-2-202;
         (VIII) Section 40-6-14; or
         (IX) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
         (B) another amount that by statute is subject to a penalty imposed under this section.
         (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
         (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
         (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
         (C) Chapter 2, Property Tax Act, except for Section 59-2-1309;
         (D) Chapter 3, Tax Equivalent Property Act; or
         (E) Chapter 4, Privilege Tax.
         (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
 tax, fee, or charge.
         (2) (a) The due date for filing a return is:
         (i) if the person filing the return is not allowed by law an extension of time for filing
 the return, the day on which the return is due as provided by law; or
         (ii) if the person filing the return is allowed by law an extension of time for filing the
 return, the earlier of:
         (A) the date the person files the return; or
         (B) the last day of that extension of time as allowed by law.
         (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
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        H.B. 356                                                                          Enrolled Copy
 return after the due date described in Subsection (2)(a).
         (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
         (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
 tax,