85
th Legislative Session _ 2010
Committee: Senate State Affairs
Monday, March 08, 2010
P - Present
E - Excused
A - Absent
Roll Call
P Abdallah
P Hanson (Gary)
P Heidepriem
P Knudson
P Olson (Russell)
P Rhoden
P Turbak Berry
P Gray, Vice-Chair
P Dempster, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator Thomas Dempster, Chair.
MOTION: TO APPROVE THE MINUTES OF WEDNESDAY, MARCH 3, 2010
Moved by: Gray
Second by: Olson (Russell)
Action: Prevailed by voice vote.
HB 1138: create certified technology parks and to provide certain financing
mechanisms and bonding authority to enhance knowledge and tech-based economic
development.
Presented by: Representative Deb Peters
MOTION: AMEND HB 1138
1138oa
On the House engrossed bill, delete everything after the enacting clause and insert:
"Section 1. For the purposes of this Act, the term, department, means the Department of
Tourism and State Development.
Section 2. The governing body of a political subdivision may apply to the department for
designation of all or part of the area within the political subdivision as a certified technology park
or certified site and to enter into an agreement governing the terms and conditions of the designation.
The application shall be in a form specified by the department and shall include information the
department determines necessary to make the determinations required pursuant to this Act.
Section 3. The governing body of the political subdivision that established the certified
technology park may enter an agreement with the department establishing the terms and conditions
governing a certified technology park designated pursuant to this Act. Upon designation of the
certified technology park under the terms of the agreement, the subsequent failure of any party to
comply with the terms of the agreement may result in the termination or rescission of the designation
of the area as a certified technology park. The agreement shall include all of the following:
(1) A description of the area to be included within the certified technology park;
(2) Any covenants and restrictions upon all or part of the properties contained within the
certified technology park and terms of enforcement of any covenants or restrictions;
(3) The financial commitments of any party to the agreement and of any owner or developer
of property within the certified technology park;
(4) The terms of any commitment required from a postsecondary educational institution or
private research based institute for support of the operations and activities within the
certified technology park;
(5) The terms of enforcement of the agreement, which may include the definition of events
of default, cure periods, legal and equitable remedies and rights, and penalties and
damages, actual or liquidated, upon the occurrence of an event of default; and
(6) The public or private facilities to be developed for the certified technology park and the
costs of those public or private facilities, as approved by the department.
The governing body of the political subdivision and the department shall maintain the
confidentiality of any information that is submitted as part of this review process and marked as
confidential.
Section 4. The department shall promulgate rules pursuant to chapter 1-26 to:
(1) Prescribe the application procedures and the form and content of the application and
business plan for a certified technology park or certified site;
(2) Set the minimum criteria for an area to be designated as a certified technology park or
certified site;
(3) Establish certain level of financial and technical support for the certified technology park
and the required evidence of public and private partnerships;
(4) Establish terms and conditions on how the certified technology park may be operated
including the ownership of facilities and buildings;
(5) Determine the commitment of postsecondary, private, or federal research and
development for the park;
(6) Determine the commitment of the local governments and economic development
organization to the park; and
(7) Require certain documents and reports regarding the operation and activities of the park
to be filed with the department."
Moved by: Knudson
Second by: Gray
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1138 AS AMENDED
Moved by: Knudson
Second by: Olson (Russell)
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Abdallah, Hanson (Gary), Heidepriem, Knudson, Olson (Russell), Rhoden, Turbak
Berry, Gray, Dempster
MOTION: AMEND TITLE OF HB 1138
1138ota
On page 1, line 1, of the House engrossed bill, delete everything after "parks" and insert "or
certified sites".
On page 1, line 2, delete everything before "to".
Moved by: Knudson
Second by: Olson (Russell)
Action: Prevailed by voice vote.
MOTION: PLACE HB 1138 ON CONSENT CALENDAR
Moved by: Knudson
Second by: Hanson (Gary)
Action: Prevailed by voice vote.
HB 1060: revise certain provisions regarding the refunds for new or expanded
agricultural facilities and the refunds for new or expanded business facilities.
Presented by: Senator Dave Knudson
MOTION: AMEND HB 1060
1060fb
On the House engrossed bill, delete everything after the enacting clause and insert:
"
Section 1. That § 10-45B-2 be amended to read as follows:
10-45B-2. Any person As provided in this chapter, any person holding a permit issued pursuant
to § 10-45B-6 may apply for and obtain a refund or credit for contractors' excise taxes imposed and
paid under the provisions of chapter 10-46A for the construction of a new agricultural processing
facility and for sales or use taxes imposed and paid by such person under the provisions of chapters
10-45 and 10-46 for the purchase or use of agricultural processing equipment.
Section 2. That § 10-45B-4 be repealed.
10-45B-4. The refund of taxes for a new agricultural processing facility pertains only to project
costs incurred and paid after April 1, 1997, and within thirty-six months of the construction date as
stated on the application required by § 10-45B-6. No refund may be made unless:
(1) The project cost exceeds the sum of four million five hundred thousand dollars; and
(2) The person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.
Section 3. That § 10-45B-4.1 be repealed.
10-45B-4.1. The refund of taxes pursuant to § 10-45B-2.1 pertains only to project costs incurred
and paid after February 1, 2005, up to and including thirty-six months from the construction date if
the project costs are sixty million dollars or less and after February 1, 2005, up to and including
seventy-two months from the construction date if the project costs are more than sixty million
dollars. There is no refund if the person applying for the refund does not obtain a permit from the
secretary as set forth in § 10-45B-6.
Upon a showing of good cause, the time limits prescribed by this section may be extended by the
secretary for a period not to exceed twenty-four months.
Section 4. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The refund of taxes pursuant to §§ 10-45B-2 and 10-45B-2.1 pertains only to project costs
incurred and paid after January 1, 2008, up to and including thirty-six months from the construction
date. No refund may be paid unless the person applying for the refund obtains a permit from the
secretary as set forth in § 10-45B-6.
Section 5. That § 10-45B-5 be repealed.
10-45B-5. If the project cost for a new agricultural processing facility exceeds four million five
hundred thousand dollars, the refund shall be one hundred percent of the taxes attributed to the
project cost.
Section 6. That § 10-45B-5.1 be repealed.
10-45B-5.1. The amount of the tax refund for a new business facility shall be a percentage of the
taxes paid, as follows:
(1) For project costs of less than ten million dollars, there shall be no refund;
(2) For project costs of ten or more million dollars but less than fifteen million dollars there
shall be a refund of twenty-five percent of the taxes paid;
(3) For project costs of fifteen or more million dollars but less than twenty million dollars
there shall be a refund of thirty-three percent of the taxes paid;
(4) For project costs of twenty or more million dollars but less than forty million dollars there
shall be a refund of fifty percent of the taxes paid;
(5) For project costs of forty or more million dollars but less than sixty million dollars there
shall be a refund of sixty-seven percent of the taxes paid;
(6) For project costs of sixty million dollars or more but less than six hundred million dollars
there shall be a refund of seventy-five percent of the taxes paid; and
(7) For project costs of six hundred million dollars and greater there shall be a refund of
ninety percent of the taxes paid.
Section 7. That § 10-45B-6.1 be repealed.
10-45B-6.1. Any person issued a permit pursuant to this chapter prior to March 31, 1997, may
continue to submit claims for the project.
Section 8. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding any provision of chapter 10-45B or this Act, this section controls the amount
of refunds payable under chapter 10-45B for any new agricultural processing facility or new business
facility that has a construction date on or after January 1, 2010. For project cost incurred and paid
from January 1, 2010, to December 31, 2012, inclusive, the amount of the refund shall be determined
by applying the provisions of chapter 10-45B in effect on July 1, 2010. The amount of the tax refund
for a new agricultural processing facility or new business facility shall be a percentage of the taxes
paid, as follows:
(1) For project costs of less than ten million dollars, there shall be no refund;
(2) For project costs of ten or more million dollars but less than four hundred million dollars,
there shall be a refund of fifty percent of the taxes paid; and
(3) For projects costs of four hundred million or more dollars, there shall be no refund.
No tax refund may be given for any project cost incurred and paid on or after January 1, 2013.
Section 9. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The provisions of chapter 10-45B in effect prior to January 1, 2010, apply to any project where
the construction date was before January 1, 2010.
Section 10. That § 10-45B-8 be amended to read as follows:
10-45B-8. Any person issued a permit pursuant to this chapter shall submit a claim for refund
to the department no more frequently than on or before the last day of each month and no less
frequently than on or before the last day of each month following each calendar quarter. The
secretary shall determine and pay the amount of the tax refund within ninety days of receipt of the
claim for refund. Ninety-five percent of the amount of refund shall be paid to the claimant in
accordance with §§ 10-59-22 and 10-59-23, and five percent shall be withheld by the department.
No interest may be paid on the refund amount. If electronic funds transfer is available to the
secretary, the secretary shall pay the refund by electronic funds transfer if requested by the claimant.
The secretary shall pay the refund by electronic funds transfer.
Section 11. That § 10-45B-8.1 be repealed.
10-45B-8.1. No claim for refund pursuant to this chapter may be considered by the department
if the claim for refund is received after the following applicable time period:
(1) Twelve months after the thirty-six month time period of § 10-45B-4;
(2) Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with
project costs of sixty million dollars or less;
(3) Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with
project costs of more than sixty million dollars; or
(4) Twelve months after the extended time period of § 10-45B-4.1 for projects that have
obtained a time limit extension from the secretary.
Moreover, any such claim is barred from any future refund eligibility.
Section 12. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
No claim for refund pursuant to this chapter may be considered by the department if the claim
for refund is received twelve months after the thirty-six month time period of section 4 of this Act.
Moreover, any such claim is barred from any future refund eligibility.
Section 13. That § 10-45B-8.2 be repealed.
10-45B-8.2. No document or record in support of any claim for refund may be considered by the
department if the documents or records in support of any claim for refund are received after the
following applicable time period:
(1) Twelve months after the thirty-six month time period of § 10-45B-4;
(2) Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with
project costs of sixty million dollars or less;
(3) Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with
project costs of more than sixty million dollars; or
(4) Twelve months after the extended time period of § 10-45B-4.1 for projects that have
obtained a time limit extension from the secretary.
Moreover, any such document or record is barred from any future consideration.
However, if the department requests any additional document or record from the project owner
after a review of the claim for refund, and the request is made after the applicable time period
provided by this section has expired, the project owner has sixty days to provide the requested
document or record. No document or record received after this sixty-day period may be considered
by the department. Moreover, any such document or record is barred from any future consideration.
Section 14. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
No document or record in support of any claim for refund may be considered by the department
if the document or record in support of any claim for refund is received twelve months after the
thirty-six month time period of section 4 of this Act. Moreover, any such document or record is
barred from any future consideration.
However, if the department requests any additional document or record from the project owner
after a review of the claim for refund, and the request is made after the applicable time period
provided by this section has expired, the project owner has sixty days to provide the requested
document or record. No document or record received after this sixty-day period may be considered
by the department. Moreover, any such document or record is barred from any future consideration.
Section 15. That § 10-45B-8.3 be repealed.
10-45B-8.3. The provisions of §§ 10-45B-8.1 and 10-45B-8.2 apply to refunds for projects only
if the permit was applied for after June 30, 2009.
Section 16. That § 10-45B-9 be amended to read as follows:
10-45B-9. The amounts withheld by the department in accordance with § 10-45B-8 shall be
retained until the project has been completed and the claimant has met all the conditions of § 10-45B-4 or 10-45B-4.1 section 4 of this Act, at which time all sums retained shall be paid to claimant.
Section 17. That chapter 10-46C be repealed.
Section 18. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The department shall transfer to the revolving economic development and initiative fund
established by § 1-16G-3 an amount equal to ten percent per fiscal year of the sales, use, and
contractors' excise taxes paid on projects receiving a refund under section 8 of this Act. The total
amount transferred pursuant to this section per fiscal year may not exceed ten million dollars."
Moved by: Knudson
Second by: Gray
Action: Was not acted on.
MOTION: AMEND THE PENDING AMENDMENT
1060oc
On the pending amendment (1060fb), delete Section 18.
Moved by: Heidepriem
Second by: Hanson (Gary)
Action: Failed by roll call vote. (4-5-0-0)
Voting Yes: Abdallah, Hanson (Gary), Heidepriem, Turbak Berry
Voting No: Knudson, Olson (Russell), Rhoden, Gray, Dempster
MOTION: AMEND HB 1060
1060fb
On the House engrossed bill, delete everything after the enacting clause and insert:
"
Section 1. That § 10-45B-2 be amended to read as follows:
10-45B-2. Any person As provided in this chapter, any person holding a permit issued pursuant
to § 10-45B-6 may apply for and obtain a refund or credit for contractors' excise taxes imposed and
paid under the provisions of chapter 10-46A for the construction of a new agricultural processing
facility and for sales or use taxes imposed and paid by such person under the provisions of chapters
10-45 and 10-46 for the purchase or use of agricultural processing equipment.
Section 2. That § 10-45B-4 be repealed.
10-45B-4. The refund of taxes for a new agricultural processing facility pertains only to project
costs incurred and paid after April 1, 1997, and within thirty-six months of the construction date as
stated on the application required by § 10-45B-6. No refund may be made unless:
(1) The project cost exceeds the sum of four million five hundred thousand dollars; and
(2) The person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.
Section 3. That § 10-45B-4.1 be repealed.
10-45B-4.1. The refund of taxes pursuant to § 10-45B-2.1 pertains only to project costs incurred
and paid after February 1, 2005, up to and including thirty-six months from the construction date if
the project costs are sixty million dollars or less and after February 1, 2005, up to and including
seventy-two months from the construction date if the project costs are more than sixty million
dollars. There is no refund if the person applying for the refund does not obtain a permit from the
secretary as set forth in § 10-45B-6.
Upon a showing of good cause, the time limits prescribed by this section may be extended by the
secretary for a period not to exceed twenty-four months.
Section 4. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The refund of taxes pursuant to §§ 10-45B-2 and 10-45B-2.1 pertains only to project costs
incurred and paid after January 1, 2008, up to and including thirty-six months from the construction
date. No refund may be paid unless the person applying for the refund obtains a permit from the
secretary as set forth in § 10-45B-6.
Section 5. That § 10-45B-5 be repealed.
10-45B-5. If the project cost for a new agricultural processing facility exceeds four million five
hundred thousand dollars, the refund shall be one hundred percent of the taxes attributed to the
project cost.
Section 6. That § 10-45B-5.1 be repealed.
10-45B-5.1. The amount of the tax refund for a new business facility shall be a percentage of the
taxes paid, as follows:
(1) For project costs of less than ten million dollars, there shall be no refund;
(2) For project costs of ten or more million dollars but less than fifteen million dollars there
shall be a refund of twenty-five percent of the taxes paid;
(3) For project costs of fifteen or more million dollars but less than twenty million dollars
there shall be a refund of thirty-three percent of the taxes paid;
(4) For project costs of twenty or more million dollars but less than forty million dollars there
shall be a refund of fifty percent of the taxes paid;
(5) For project costs of forty or more million dollars but less than sixty million dollars there
shall be a refund of sixty-seven percent of the taxes paid;
(6) For project costs of sixty million dollars or more but less than six hundred million dollars
there shall be a refund of seventy-five percent of the taxes paid; and
(7) For project costs of six hundred million dollars and greater there shall be a refund of
ninety percent of the taxes paid.
Section 7. That § 10-45B-6.1 be repealed.
10-45B-6.1. Any person issued a permit pursuant to this chapter prior to March 31, 1997, may
continue to submit claims for the project.
Section 8. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding any provision of chapter 10-45B or this Act, this section controls the amount
of refunds payable under chapter 10-45B for any new agricultural processing facility or new business
facility that has a construction date on or after January 1, 2010. For project cost incurred and paid
from January 1, 2010, to December 31, 2012, inclusive, the amount of the refund shall be determined
by applying the provisions of chapter 10-45B in effect on July 1, 2010. The amount of the tax refund
for a new agricultural processing facility or new business facility shall be a percentage of the taxes
paid, as follows:
(1) For project costs of less than ten million dollars, there shall be no refund;
(2) For project costs of ten or more million dollars but less than four hundred million dollars,
there shall be a refund of fifty percent of the taxes paid; and
(3) For projects costs of four hundred million or more dollars, there shall be no refund.
No tax refund may be given for any project cost incurred and paid on or after January 1, 2013.
Section 9. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The provisions of chapter 10-45B in effect prior to January 1, 2010, apply to any project where
the construction date was before January 1, 2010.
Section 10. That § 10-45B-8 be amended to read as follows:
10-45B-8. Any person issued a permit pursuant to this chapter shall submit a claim for refund
to the department no more frequently than on or before the last day of each month and no less
frequently than on or before the last day of each month following each calendar quarter. The
secretary shall determine and pay the amount of the tax refund within ninety days of receipt of the
claim for refund. Ninety-five percent of the amount of refund shall be paid to the claimant in
accordance with §§ 10-59-22 and 10-59-23, and five percent shall be withheld by the department.
No interest may be paid on the refund amount. If electronic funds transfer is available to the
secretary, the secretary shall pay the refund by electronic funds transfer if requested by the claimant.
The secretary shall pay the refund by electronic funds transfer.
Section 11. That § 10-45B-8.1 be repealed.
10-45B-8.1. No claim for refund pursuant to this chapter may be considered by the department
if the claim for refund is received after the following applicable time period:
(1) Twelve months after the thirty-six month time period of § 10-45B-4;
(2) Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with
project costs of sixty million dollars or less;
(3) Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with
project costs of more than sixty million dollars; or
(4) Twelve months after the extended time period of § 10-45B-4.1 for projects that have
obtained a time limit extension from the secretary.
Moreover, any such claim is barred from any future refund eligibility.
Section 12. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
No claim for refund pursuant to this chapter may be considered by the department if the claim
for refund is received twelve months after the thirty-six month time period of section 4 of this Act.
Moreover, any such claim is barred from any future refund eligibility.
Section 13. That § 10-45B-8.2 be repealed.
10-45B-8.2. No document or record in support of any claim for refund may be considered by the
department if the documents or records in support of any claim for refund are received after the
following applicable time period:
(1) Twelve months after the thirty-six month time period of § 10-45B-4;
(2) Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with
project costs of sixty million dollars or less;
(3) Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with
project costs of more than sixty million dollars; or
(4) Twelve months after the extended time period of § 10-45B-4.1 for projects that have
obtained a time limit extension from the secretary.
Moreover, any such document or record is barred from any future consideration.
However, if the department requests any additional document or record from the project owner
after a review of the claim for refund, and the request is made after the applicable time period
provided by this section has expired, the project owner has sixty days to provide the requested
document or record. No document or record received after this sixty-day period may be considered
by the department. Moreover, any such document or record is barred from any future consideration.
Section 14. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
No document or record in support of any claim for refund may be considered by the department
if the document or record in support of any claim for refund is received twelve months after the
thirty-six month time period of section 4 of this Act. Moreover, any such document or record is
barred from any future consideration.
However, if the department requests any additional document or record from the project owner
after a review of the claim for refund, and the request is made after the applicable time period
provided by this section has expired, the project owner has sixty days to provide the requested
document or record. No document or record received after this sixty-day period may be considered
by the department. Moreover, any such document or record is barred from any future consideration.
Section 15. That § 10-45B-8.3 be repealed.
10-45B-8.3. The provisions of §§ 10-45B-8.1 and 10-45B-8.2 apply to refunds for projects only
if the permit was applied for after June 30, 2009.
Section 16. That § 10-45B-9 be amended to read as follows:
10-45B-9. The amounts withheld by the department in accordance with § 10-45B-8 shall be
retained until the project has been completed and the claimant has met all the conditions of § 10-45B-4 or 10-45B-4.1 section 4 of this Act, at which time all sums retained shall be paid to claimant.
Section 17. That chapter 10-46C be repealed.
Section 18. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as
follows:
The department shall transfer to the revolving economic development and initiative fund
established by § 1-16G-3 an amount equal to ten percent per fiscal year of the sales, use, and
contractors' excise taxes paid on projects receiving a refund under section 8 of this Act. The total
amount transferred pursuant to this section per fiscal year may not exceed ten million dollars."
Moved by: Knudson
Second by: Gray
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1060 AS AMENDED
Moved by: Gray
Second by: Knudson
Action: Prevailed by roll call vote. (5-4-0-0)
Voting Yes: Knudson, Olson (Russell), Rhoden, Gray, Dempster
Voting No: Abdallah, Hanson (Gary), Heidepriem, Turbak Berry
MOTION: AMEND TITLE OF HB 1060
1060fta
On page 1, line 2, of the House engrossed bill, before "." insert ", to repeal the contractors'
excise tax on new or expanded power production facilities, and to make certain transfers to the
revolving economic development and initiative fund".
Moved by: Gray
Second by: Knudson
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Olson (Russell)
Second by: Hanson (Gary)
Action: Prevailed by voice vote.
Cheri Hauschild
____________________________
Committee Secretary
Thomas A. Dempster, Chair
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