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H.B. 119 Enrolled

                 

QUALITY GROWTH ACT OF 1999

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Kevin S. Garn

                  Ralph Becker
                  Susan J. Koehn
                  Patrice M. Arent
                  Martin R. Stephens
                  Greg J. Curtis
                  Brad King
                  Lowell A. Nelson
                  Joseph G. Murray
                  David Ure
                  Sheryl L. Allen
                  David M. Jones
                  David L. Hogue
                  David L. Gladwell
                  A. Lamont Tyler
Lawanna Shurtliff
Fred J. Fife
Loretta Baca
Neil A. Hansen
Karen W. Morgan
Kory M. Holdaway
Jordan Tanner
Blake D. Chard
Keele Johnson
Judy Ann Buffmire
Duane E. Bourdeaux
Trisha S. Beck
Mary Carlson
Afton B. Bradshaw
Jackie Biskupski
Carl W. Duckworth
Brent H. Goodfellow
Gary F. Cox
Michael R. Styler
Wayne A. Harper
Marda Dillree
Richard M. Siddoway
Chad E. Bennion
Perry L. Buckner
Glenn L. Way
Ron Bigelow
James R. Gowans


                  AN ACT RELATING TO CITIES, TOWNS, AND LOCAL TAXING DISTRICTS;
                  ESTABLISHING A QUALITY GROWTH COMMISSION; PROVIDING DUTIES AND
                  POWERS OF THE COMMISSION; REESTABLISHING THE LERAY MCALLISTER
                  CRITICAL LAND CONSERVATION FUND AND PROVIDING FOR ITS ADMINISTRATION;
                  EXPRESSING LEGISLATIVE INTENT ON QUALITY GROWTH AREAS; ALLOWING PART
                  OF FUTURE INCREASES IN THE PRIVATE ACTIVITY BOND VOLUME CAP TO BE USED
                  FOR CERTAIN PURPOSES; PROVIDING FUNDING SOURCES FOR THE LERAY
                  MCALLISTER FUND; PROVIDING FOR THE ESTABLISHMENT OF A STATE BUILDING
                  ENERGY EFFICIENCY PROGRAM, WITH SOME OF THE ENERGY SAVINGS FUNDS TO
                  GO TO THE LERAY MCALLISTER FUND; REPEALING PROVISIONS RELATING TO AN
                  EXISTING ENERGY EFFICIENCY PROGRAM; PROVIDING EXCEPTIONS TO CERTAIN
                  BUDGETARY PROCEDURES IN CERTAIN CASES; APPROPRIATING $250,000 FROM
                  THE GENERAL FUND FOR TECHNICAL ASSISTANCE FOR LOCAL ENTITIES; MAKING
                  TECHNICAL AND CONFORMING CHANGES; AND PROVIDING AN EFFECTIVE DATE.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:


                      9-4-505, as last amended by Chapter 192, Laws of Utah 1997
                      57-18-7, as enacted by Chapter 155, Laws of Utah 1985
                      63-38-3, as last amended by Chapter 313, Laws of Utah 1994
                      63-38-8.1, as enacted by Chapter 76, Laws of Utah 1994
                      63A-1-112, as renumbered and amended by Chapter 212, Laws of Utah 1993
                  ENACTS:
                      11-38-101, Utah Code Annotated 1953
                      11-38-102, Utah Code Annotated 1953
                      11-38-201, Utah Code Annotated 1953
                      11-38-202, Utah Code Annotated 1953
                      11-38-203, Utah Code Annotated 1953
                      11-38-301, Utah Code Annotated 1953
                      11-38-302, Utah Code Annotated 1953
                      11-38-303, Utah Code Annotated 1953
                      11-38-304, Utah Code Annotated 1953
                      63-9-67, Utah Code Annotated 1953
                      63-38-18, Utah Code Annotated 1953
                  REPEALS:
                      11-28-101, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-102, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-103, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-104, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-105, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-106, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-107, as enacted by Chapter 323, Laws of Utah 1998
                      11-28-108, as enacted by Chapter 323, Laws of Utah 1998
                      63-9-64, as last amended by Chapter 212, Laws of Utah 1993
                      63-9-65, as last amended by Chapter 85, Laws of Utah 1986

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                  This act enacts uncodified material.
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 9-4-505 is amended to read:
                       9-4-505. Allocation of volume cap.
                      (1) [The] (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed
                  by the board of review to the various allotment accounts as set forth in Section 9-4-506 .
                      (b) The board of review may distribute up to 50% of each increase in the volume cap that
                  occurs after the effective date of this Subsection (1)(b) for use in development that occurs in quality
                  growth areas, depending upon the board's analysis of the relative need for additional volume cap
                  between development in quality growth areas and the allotment accounts under Section 9-4-506 .
                      (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the board
                  of review an application containing information required by the procedures and processes of the
                  board of review.
                      (3) The board of review shall establish criteria for making allocations of volume cap that are
                  consistent with the purposes of the code and this part. In making an allocation of volume cap the
                  board of review shall consider the following:
                      (a) the principal amount of the bonds proposed to be issued;
                      (b) the nature and the location of the project or the type of program;
                      (c) the likelihood that the bonds will be sold and the timeframe of bond issuance;
                      (d) whether the project or program could obtain adequate financing without an allocation
                  of volume cap;
                      (e) the degree to which an allocation of volume cap is required for the project or program
                  to proceed or continue;
                      (f) the social, health, economic, and educational effects of the project or program on the local
                  community and state as a whole;
                      (g) the anticipated number of jobs, both temporary and permanent, created or retained within
                  the local community and the state as a whole; [and]
                      (h) if the project is a residential rental project, the degree to which the residential rental

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                  project targets lower income populations; and
                      (i) whether the project meets the principles of quality growth recommended by the Quality
                  Growth Commission created under Section 11-38-201 .
                      (4) The board of review shall evidence an allocation of volume cap by issuing a certificate
                  in accordance with Section 9-4-507 .
                      Section 2. Section 11-38-101 is enacted to read:
                 
CHAPTER 38. QUALITY GROWTH ACT

                 
Part 1. General Provisions

                      11-38-101. Title.
                      This chapter is known as the "Quality Growth Act."
                      Section 3. Section 11-38-102 is enacted to read:
                      11-38-102. Definitions.
                      As used in this chapter:
                      (1) "Affordable housing" means housing occupied or reserved for occupancy by households
                  with a gross household income equal to or less than 80% of the median gross income of the
                  applicable municipal or county statistical area for households of the same size.
                      (2) "Agricultural land" has the same meaning as "land in agricultural use" under Section
                  59-2-502 .
                      (3) "Brownfield sites" means abandoned, idled, or underused commercial or industrial land
                  where expansion or redevelopment is complicated by real or perceived environmental contamination.
                      (4) "Commission" means the Quality Growth Commission established in Section 11-38-201 .
                      (5) "Fund" means the LeRay McAllister Critical Land Conservation Fund established in
                  Section 11-38-301 .
                      (6) "Infill development" means residential, commercial, or industrial development on unused
                  or underused land, excluding open land and agricultural land, within existing, otherwise developed
                  urban areas.
                      (7) "Local entity" means a county, city, or town.
                      (8) "OPB" means the governor's Office of Planning and Budget established under Section

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                  63-38-1.4 .
                      (9) (a) "Open land" means land that is:
                      (i) preserved in or restored to a predominantly natural, open, and undeveloped condition; and
                      (ii) used for:
                      (A) wildlife habitat;
                      (B) cultural or recreational use;
                      (C) watershed protection; or
                      (D) another use consistent with the preservation of the land in or restoration of the land to
                  a predominantly natural, open, and undeveloped condition.
                      (b) (i) "Open land" does not include land whose predominant use is as a developed facility
                  for active recreational activities, including baseball, tennis, soccer, golf, or other sporting or similar
                  activity.
                      (ii) The condition of land does not change from a natural, open, and undeveloped condition
                  because of the development or presence on the land of facilities, including trails, waterways, and
                  grassy areas, that:
                      (A) enhance the natural, scenic, or aesthetic qualities of the land; or
                      (B) facilitate the public's access to or use of the land for the enjoyment of its natural, scenic,
                  or aesthetic qualities and for compatible recreational activities.
                      (10) "State agency" includes each executive, legislative, and judicial branch department,
                  agency, board, commission, or division, however denominated, and each state educational
                  institution.
                      (11) "State Building Energy Efficiency Program" has the meaning as defined in Section
                  63-9-67 .
                      (12) "Surplus land" means real property owned by the Department of Administrative
                  Services, the Department of Agriculture and Food, the Department of Natural Resources, or the
                  Department of Transportation that the individual department determines not to be necessary for
                  carrying out the mission of the department.
                      Section 4. Section 11-38-201 is enacted to read:

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Part 2. Quality Growth Commission

                      11-38-201. Quality Growth Commission -- Term of office -- Vacancy -- Organization
                  -- Expenses -- Staff.
                      (1) There is created a Quality Growth Commission consisting of:
                      (a) two persons at the state government level, one of whom shall be from the Department
                  of Natural Resources;
                      (b) six elected officials at the local government level; and
                      (c) five persons from the profit and nonprofit private sector, no more than three of whom
                  may be from the same political party and one of whom shall be from the residential construction
                  industry, nominated by the Utah Home Builders Association, and one of whom shall be from the real
                  estate industry, nominated by the Utah Association of Realtors.
                      (2) (a) Each commission member shall be appointed by the governor with the advice and
                  consent of the Senate.
                      (b) The governor shall select three of the six members under Subsection (1)(b) from a list
                  of names provided by the Utah League of Cities and Towns, and shall select the remaining three
                  from a list of names provided by the Utah Association of Counties.
                      (c) Two of the persons appointed under Subsection (1) shall be from the agricultural
                  community from a list of names provided by Utah farm organizations.
                      (3) (a) The term of office of each member is four years, except that the governor shall
                  appoint one of the persons at the state government level, three of the persons at the local government
                  level, and two of the persons under Subsection (1)(c) to an initial two-year term.
                      (b) No member of the commission may serve more than two consecutive four-year terms.
                      (4) Each mid-term vacancy shall be filled for the unexpired term in the same manner as an
                  appointment under Subsection (2).
                      (5) Commission members shall elect a chair from their number and establish rules for the
                  organization and operation of the commission.
                      (6) (a) No member may receive compensation or benefits for the member's service on the
                  commission.

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                      (b) (i) A member who is not a government officer or employee may be reimbursed for
                  reasonable expenses incurred in the performance of the member's official duties at the rates
                  established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) A member who is a government officer or employee and who does not receive expenses
                  from the member's agency may be reimbursed for reasonable expenses incurred in the performance
                  of the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (c) A member may decline to be reimbursed for reasonable expenses incurred in the
                  performance of the member's official duties.
                      (d) A member is not required to give bond for the performance of official duties.
                      (7) Staff services to the commission:
                      (a) shall be provided by OPB; and
                      (b) may be provided by local entities through the Utah Association of Counties and the Utah
                  League of Cities and Towns, with funds approved by the commission from those identified as
                  available to local entities under Subsection 11-38-203 (1).
                      Section 5. Section 11-38-202 is enacted to read:
                      11-38-202. Commission duties and powers -- No regulatory authority.
                      (1) The commission shall:
                      (a) make recommendations to the Legislature on how to define more specifically quality
                  growth areas within the general guidelines provided to the commission by the Legislature;
                      (b) advise the Legislature on growth management issues;
                      (c) make recommendations to the Legislature on refinements to this chapter;
                      (d) conduct a review in 2002 and each year thereafter to determine progress statewide on
                  accomplishing the purposes of this chapter, and give a report of each review to the Political
                  Subdivisions Interim Committee of the Legislature by November 30 of the year of the review;
                      (e) administer the fund as provided in this chapter;
                      (f) assist as many local entities as possible, at their request, to identify principles of growth
                  that the local entity may consider implementing to help achieve the highest possible quality of

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                  growth for that entity;
                      (g) fulfill other responsibilities imposed on the commission by the Legislature; and
                      (h) fulfill all other duties imposed on the commission by this chapter.
                      (2) The commission may sell, lease, or otherwise dispose of equipment or personal property
                  belonging to the fund, the proceeds from which shall return to the fund.
                      (3) The commission may not exercise any regulatory authority.
                      Section 6. Section 11-38-203 is enacted to read:
                      11-38-203. Commission may provide assistance to local entities.
                      The commission may:
                      (1) from funds appropriated to OPB by the Legislature for this purpose, grant money to local
                  entities to help them obtain the technical assistance they need to:
                      (a) conduct workshops or public hearings or use other similar methods to obtain public input
                  and participation in the process of identifying for that entity the principles of quality growth referred
                  to in Subsection 11-38-202 (1)(f);
                      (b) identify where and how quality growth areas could be established within the local entity;
                  and
                      (c) develop or modify the local entity's general plan to incorporate and implement the
                  principles of quality growth developed by the local entity and to establish quality growth areas; and
                      (2) require each local entity to which the commission grants money under Subsection (1) to
                  report to the commission, in a format and upon a timetable determined by the commission, on that
                  local entity's process of developing quality growth principles and on the quality growth principles
                  developed by that local entity.
                      Section 7. Section 11-38-301 is enacted to read:
                 
Part 3. LeRay McAllister Fund

                      11-38-301. LeRay McAllister Critical Land Conservation Fund.
                      (1) There is created the LeRay McAllister Critical Land Conservation Fund, consisting of:
                      (a) money appropriated or otherwise made available by the Legislature;
                      (b) contributions of money, property, or equipment from federal agencies, political

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                  subdivisions of the state, persons, or corporations;
                      (c) proceeds that a department chooses to place into the fund from the sale of surplus land
                  under Subsection (2); and
                      (d) funds from the State Building Energy Efficiency Program.
                      (2) The Department of Administrative Services, the Department of Agriculture and Food,
                  the Department of Natural Resources, and the Department of Transportation may place proceeds
                  from the sale of surplus land into the fund.
                      (3) The total amount of money in the fund may not exceed $6,000,000.
                      Section 8. Section 11-38-302 is enacted to read:
                      11-38-302. Use of money in fund -- Criteria -- Administration.
                      (1) Subject to Subsection (2), the commission may authorize the use of money in the fund,
                  by grant or loan, to:
                      (a) a local entity;
                      (b) the Department of Natural Resources created under Section 63-34-3 ;
                      (c) the Department of Agriculture and Food created under Section 4-2-1 ; or
                      (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3) of
                  the Internal Revenue Code.
                      (2) (a) The money in the fund shall be used for preserving or restoring open land and
                  agricultural land.
                      (b) (i) Except as provided in Subsection (2)(b)(ii), money from the fund may not be used to
                  purchase a fee interest in real property in order to preserve open land or agricultural land, but may
                  be used to establish a conservation easement under Title 57, Chapter 18, Land Conservation
                  Easement Act, or to fund similar methods to preserve open land or agricultural land.
                      (ii) Notwithstanding Subsection (2)(b)(i), money from the fund may be used to purchase a
                  fee interest in real property to preserve open land or agricultural land if:
                      (A) the parcel to be purchased is no more than 20 acres in size; and
                      (B) with respect to a parcel purchased in a county in which over 50% of the land area is
                  publicly owned, real property roughly equivalent in size and located within that county is

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                  contemporaneously transferred to private ownership from the governmental entity that purchased the
                  fee interest in real property.
                      (iii) Eminent domain may not be used or threatened in connection with any purchase using
                  money from the fund.
                      (iv) A parcel of land larger than 20 acres in size may not be divided into separate parcels
                  smaller than 20 acres each to meet the requirement of Subsection (2)(b)(ii).
                      (c) A county, city, town, department, or organization under Subsection (1) may not receive
                  money from the fund unless it provides matching funds equal to or greater than the amount of money
                  received from the fund.
                      (d) In loaning or granting money from the fund, the commission may impose conditions on
                  the recipient as to how the money is to be spent.
                      (e) The commission shall give priority to requests from the Department of Natural Resources
                  for up to 20% of each annual increase in the amount of money in the fund if the money is used for
                  the protection of wildlife or watershed.
                      (3) (a) If money from the fund is distributed in the form of a loan, the commission may
                  require interest to be paid and shall establish other terms of each loan, including a repayment
                  schedule.
                      (b) Each payment on a loan from the fund shall be returned to the fund and shall be applied
                  first to interest and then to principal.
                      (4) In determining the amount and type of financial assistance to provide an entity,
                  department, or organization under Subsection (1), the commission:
                      (a) if the assistance is in the form of a loan, shall consider the borrower's ability to repay the
                  loan; and
                      (b) shall consider:
                      (i) the nature and amount of open land and agricultural land proposed to be preserved or
                  restored;
                      (ii) the qualities of the open land and agricultural land proposed to be preserved or restored;
                      (iii) the cost effectiveness of the project to preserve or restore open land or agricultural land;

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                      (iv) the funds available;
                      (v) the number of actual and potential applications for financial assistance and the amount
                  of money sought by those applications;
                      (vi) the open land preservation plan of the local entity where the project is located and the
                  priority placed on the project by that local entity;
                      (vii) the effects on housing affordability and diversity; and
                      (viii) whether the project protects against the loss of private property ownership.
                      (5) If a county, city, town, department, or organization under Subsection (1) seeks money
                  from the fund for a project whose purpose is to protect critical watershed, the commission shall
                  require that the needs and quality of that project be verified by the state engineer.
                      (6) Each interest in real property purchased with money from the fund shall be held and
                  administered by the state or a local entity.
                      Section 9. Section 11-38-303 is enacted to read:
                      11-38-303. Commission expenses -- Division of Finance responsibilities -- Investment
                  of monies into the fund -- Interest to accrue to the fund.
                      (1) Commission expenses and the costs of administering loans from the fund, as provided
                  in Subsection (2), shall be paid from the fund.
                      (2) (a) The Division of Finance shall be responsible for the care, custody, safekeeping,
                  collection, and accounting for loans issued by the commission as provided in Section 63-65-4 .
                      (b) The Division of Finance may charge to the fund the administrative costs incurred in
                  discharging the responsibilities imposed by Subsection (2)(a).
                      (3) The state treasurer shall invest all monies deposited into the fund, and all interest from
                  investing the monies shall accrue to the fund.
                      Section 10. Section 11-38-304 is enacted to read:
                      11-38-304. Commission to report annually.
                      The commission shall submit an annual report to the Executive Appropriations Committee
                  of the Legislature:
                      (1) specifying the amount of each disbursement from the fund, whether by loan or grant;

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                      (2) identifying the recipient of each disbursement and describing the project for which
                  money was disbursed; and
                      (3) detailing the conditions, if any, placed by the commission on disbursements from the
                  fund.
                      Section 11. Section 57-18-7 is amended to read:
                       57-18-7. Conservation easement not obtained through eminent domain -- Conservation
                  easement may not interfere with eminent domain.
                      (1) No conservation easement, or right-of-way or access to a conservation easement may be
                  obtained through the use of eminent domain.
                      (2) The existence of a conservation easement may not defeat or interfere with the otherwise
                  proper exercise of eminent domain under Title 78, Chapter 34, Eminent Domain.
                      Section 12. Section 63-9-67 is enacted to read:
                 
ARTICLE 11

                 
STATE BUILDING ENERGY EFFICIENCY PROGRAM

                      63-9-67. State Building Energy Efficiency Program.
                      (1) For purposes of this section:
                      (a) "Energy efficiency measures" means actions taken or initiated by a state agency that
                  reduce the state agency's energy use, increase the state agency's energy efficiency, or lower the costs
                  of energy to the state agency.
                      (b) "Energy savings agreement" means an agreement entered into by a state agency
                  participating in the State Building Energy Efficiency Program whereby the state agency implements
                  energy efficiency measures and finances the costs associated with implementation of energy
                  efficiency measures from the stream of expected savings in energy costs resulting from
                  implementation of the energy efficiency measures.
                      (c) "Fund" has the meaning as defined in Section 11-38-102 .
                      (d) "Net savings" means savings in energy costs that a state agency realizes after taking into
                  account the costs of implementing the energy efficiency measures or conservation activities that
                  produce the savings.

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                      (e) "State agency" has the meaning as defined in Section 11-38-102 .
                      (f) "State Building Energy Efficiency Program" means a program that the governor may
                  establish by executive order recommending to or requiring state agencies to implement energy
                  efficiency measures.
                      (2) (a) The person or agency overseeing the state building energy efficiency program, as
                  designated by the governor in an executive order establishing the program, shall submit a report
                  annually to the Capital Facilities and Administrative Services Appropriations Subcommittee of the
                  Legislature.
                      (b) Each report under Subsection (2)(a) shall:
                      (i) specify the amount that represents 50% of the net savings realized by all state agencies
                  from participating in the state building energy efficiency program; and
                      (ii) detail energy programs and strategies that were undertaken to improve the energy
                  efficiency of state agencies and the energy savings achieved.
                      (c) The amount specified under Subsection (2)(b)(i) may be placed into the fund, subject to
                  legislative appropriation during the general session following submission of the report under
                  Subsection (2)(a).
                      (3) Notwithstanding Subsection (2), a state agency may fulfill the terms of an agreement
                  entered into before the effective date of this section providing for the state agency's payment for
                  energy efficiency measures.
                      (4) A state agency may enter into an energy savings agreement for a term of up to 25 years.
                      Section 13. Section 63-38-3 is amended to read:
                       63-38-3. Appropriations governed by chapter -- Restrictions on expenditures --
                  Transfer of funds.
                      (1) All moneys appropriated by the Legislature are appropriated upon the terms and
                  conditions set forth in this chapter, and any department, agency, or institution, except the Legislature
                  and its committees, or where specifically exempted by the appropriating act, which accepts moneys
                  appropriated by the Legislature, does so subject to this chapter.
                      (2) (a) In providing that certain appropriations are to be expended in accordance with a

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                  schedule or other restrictions, if any, set forth after each appropriations item, it is the intent of the
                  Legislature to limit the amount of money to be expended from each appropriations item for certain
                  specified purposes.
                      (b) Each schedule:
                      (i) is a restriction or limitation upon the expenditure of the respective appropriation made;
                      (ii) does not itself appropriate any money; and
                      (iii) is not itself an item of appropriation.
                      (c) [An] Except as provided in Subsections 63-9-67 (2) and 63-38-18 (2), an appropriation
                  or any surplus of any appropriation may not be diverted from any department, agency, institution,
                  or division to any other department, agency, institution, or division.
                      (d) The money appropriated subject to a schedule or restriction may be used only for the
                  purposes authorized.
                      (e) (i) If any department, agency, or institution for which money is appropriated requests the
                  transfer of moneys appropriated to it from one purpose or function to another purpose or function
                  within an item of appropriation, the state budget officer shall require a new work program to be
                  submitted for the fiscal year involved setting forth the purpose and necessity for such transfer.
                      (ii) The budget officer and fiscal officer shall review the proposed change and submit their
                  findings and recommendations to the governor, who may permit the transfer.
                      (iii) The state fiscal officer shall notify the Legislature through the Office of the Legislative
                  Fiscal Analyst of action taken by the governor.
                      (f) [Monies] Except as provided in Subsections 63-9-67 (2) and 63-38-18 (2), monies may
                  not be transferred from one item of appropriation to any other item of appropriation.
                      (3) This section does not apply to the Investigation Account of the Water Resources
                  Construction Fund. The investigation account shall continue to be governed by Section 73-10-8 .
                      Section 14. Section 63-38-8.1 is amended to read:
                       63-38-8.1. Nonlapsing authority.
                      (1) As used in this section:
                      (a) (i) "Agency" means each department, commission, board, council, agency, institution,

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                  officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,
                  panel, or other administrative unit of the state.
                      (ii) "Agency" does not include those entities whose unappropriated and unencumbered
                  balances are made nonlapsing by the operation of Subsection 63-38-8 (2).
                      (b) "Appropriation balance" means the unexpended and unencumbered balance of a line item
                  appropriation made by the Legislature to an agency that exists at the end of a fiscal year.
                      (c) "Nonlapsing" means that an agency's appropriation balance is not closed out to the
                  appropriate fund at the end of a fiscal year as required by Section 63-38-8 .
                      (d) "One-time project" means a project or program that can be completed with the
                  appropriation balance and includes such items as employee incentive awards and bonuses, purchase
                  of equipment, and one-time training.
                      (e) "One-time project's list" means:
                      (i) a prioritized list of one-time projects, upon which an agency would like to spend any
                  appropriation balance; and
                      (ii) for each project, the maximum amount the agency is estimating for the project.
                      (f) "Program" means a service provided by an agency to members of the public, other
                  agencies, or to employees of the agency.
                      (2) Notwithstanding the requirements of Section 63-38-8 , an agency may[,]:
                      (a) by following the procedures and requirements of this section, retain and expend any
                  appropriation balance[.]; and
                      (b) comply with the requirements of Subsections 63-9-67 (2) and 63-38-18 (2).
                      (3) (a) Each agency that wishes to preserve any part or all of its appropriation balance as
                  nonlapsing shall include a one-time project's list as part of the budget request that it submits to the
                  governor and the Legislature at the annual general session of the Legislature immediately before the
                  end of the fiscal year in which the agency may have an appropriation balance.
                      (b) An agency may not include a proposed expenditure on its one-time project's list if:
                      (i) the expenditure creates a new program;
                      (ii) the expenditure enhances the level of an existing program; or

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                      (iii) the expenditure will require a legislative appropriation in the next fiscal year.
                      (c) The governor:
                      (i) may approve some or all of the items from an agency's one-time project's list; and
                      (ii) shall identify and prioritize any approved one-time projects in the budget that he submits
                  to the Legislature.
                      (4) The Legislature:
                      (a) may approve some or all of the specific items from an agency's one-time project's list as
                  authorized expenditures of an agency's appropriation balance;
                      (b) shall identify any authorized one-time projects in the appropriate line item appropriation;
                  and
                      (c) may prioritize one-time projects in intent language.
                      (5) The Legislative Fiscal Analyst shall:
                      (a) conduct a study of the nonlapsing authority granted in this section and its effects on the
                  budget, the budget process, the source of or reason for the appropriation balance, and the legislative
                  appropriations power; and
                      (b) report the analysis and any recommendations to the Legislative Management Committee
                  and Interim Appropriations Committee by October 1, 1996.
                      Section 15. Section 63-38-18 is enacted to read:
                      63-38-18. Refund for electrical service to be deposited into the LeRay McAllister Fund.
                      (1) For purposes of this section:
                      (a) The definitions of Section 11-38-102 apply.
                      (b) "Refund" means the return of an amount of money to a state agency from a provider of
                  electrical service under an order of the Utah Public Service Commission requiring a retroactive rate
                  reduction, whether the return is in the form of a direct cash payment, an offset or credit against future
                  charges for electrical service, or any other form.
                      (2) Notwithstanding Subsections 63-38-3 (2)(c) and (f), each state agency shall, as directed
                  by the Division of Finance, deposit into the fund the state's share of each refund.
                      Section 16. Section 63A-1-112 is amended to read:

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                       63A-1-112. Certificates of participation -- Legislative approval required -- Definition
                  -- Exception.
                      (1) (a) Certificates of participation for either capital facilities or capital improvements may
                  not be issued by the department, its subdivisions, or any other state agency after July 1, 1985,
                  without prior legislative approval.
                      (b) Nothing in this section affects the rights and obligations surrounding certificates of
                  participation that were issued prior to July 1, 1985.
                      (2) (a) As used in this section, "certificate of participation" means an instrument that acts as
                  evidence of the certificate holder's undivided interest in property being lease-purchased, the payment
                  on which is subject to appropriation by the Legislature.
                      (b) (i) For purposes of this Subsection (2)(b), "energy savings agreement" has the meaning
                  as defined in Section 63-9-67 .
                      (ii) "Certificate of participation" does not include an energy savings agreement.
                      Section 17. Additional duties of Quality Growth Commission -- Legislative intent on
                  quality growth areas.
                      (1) For purposes of this section, the definitions of Section 11-38-102 apply.
                      (2) In addition to the duties imposed by Section 11-38-202 , the Quality Growth Commission,
                  established in Section 11-38-201 , shall:
                      (a) consider the factors identified in Subsection (5) and input received from local entities
                  under Subsection 11-38-203 (2) and from any other useful source of relevant information and
                  formulate quality growth principles that the Legislature may consider implementing in further
                  legislation affecting Title 11, Chapter 38, Quality Growth Act;
                      (b) develop proposals for or drafts of legislation to implement quality growth principles and
                  to define specifically the features of quality growth areas, after considering the issues outlined in
                  Subsection (3), and to provide for their establishment;
                      (c) consider all state sources of revenue for which quality growth areas could be given
                  priority and make a recommendation to the Legislature as to those funding sources it should
                  consider;

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                      (d) develop and recommend to the Legislature criteria and standards that should apply in
                  determining how distributions of money from the fund should be prioritized;
                      (e) consider and make a recommendation to the Legislature as to whether the 20 acre figure
                  in Subsection 11-38-302 (2)(b)(ii) should be adjusted and, if so, what that figure should be;
                      (f) make recommendations to the Legislature as to how to implement the intent of
                  Subsection (4)(a) of this section;
                      (g) consider and make a recommendation to the Legislature as to whether the purposes for
                  which money from the fund may be used should be expanded to include expenditures in quality
                  growth areas to further the purposes of quality growth areas and to implement quality growth
                  principles; and
                      (h) report to the Political Subdivisions Interim Committee of the Legislature by November
                  30, 1999, on the commission's proposals and recommendations under Subsections (2)(a), (b), (c),
                  (d), (e), (f), and (g).
                      (3) (a) It is the intent of the Legislature to consider the recommendations of the Quality
                  Growth Commission and to consider defining the features of quality growth areas and providing for
                  their establishment.
                      (b) In recommending a more specific definition for a quality growth area, the commission
                  shall consider:
                      (i) whether the area should have adequate existing infrastructure or ready access to additional
                  infrastructure to support additional development;
                      (ii) whether affordable housing should be integrated into the housing mix;
                      (iii) whether the area should have potential for:
                      (A) infill development;
                      (B) the redevelopment of existing but obsolete or dilapidated developed areas; or
                      (C) the rehabilitation of Brownfield sites;
                      (iv) whether the area should achieve an average residential density that is greater than the
                  density of existing developed areas in which the quality growth area is located; and
                      (v) whether the local entity should be willing to integrate the conservation of open land and

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                  agricultural land.
                      (4) (a) It is the intent of the Legislature that future legislation providing for the establishment
                  of quality growth areas will:
                      (i) include provisions that:
                      (A) except as provided in Subsection (4)(a)(ii), give priority to quality growth areas with
                  respect to accessing state sources of revenue specified by the Legislature after considering the
                  recommendations of the commission under Subsection (2)(c);
                      (B) specify how 50% of any future increases in the state's private activity bond volume cap
                  under Title 9, Chapter 4, Part 5, Bond Volume Cap Allocation, may be used for development that
                  occurs within a quality growth area; and
                      (C) recommend all state agencies, departments, boards, and commissions which administer
                  and disburse funds or develop infrastructure at the state level to adhere to quality growth principles
                  to be formulated by the commission and adopted by the Legislature, and comply with other
                  provisions of Title 11, Chapter 38, Quality Growth Act; and
                      (ii) not place rural communities at a disadvantage, with respect to accessing funds under
                  Subsection (4)(a)(i)(A), for not having a quality growth area.
                      (b) For purposes of Subsection (4)(a)(ii), "rural communities" means:
                      (i) each county with a population under 25,000, except a county included within the Wasatch
                  Front and Mountainland multicounty regions established under an executive order issued by the
                  governor on May 17, 1970;
                      (ii) each city and town in a county described in Subsection (4)(b)(i); and
                      (iii) each town and each city with a population under 5,000 in a county of the third, fourth,
                  fifth, or sixth class, except a county included within the Wasatch Front and Mountainland
                  multicounty regions established under an executive order issued by the governor on May 17, 1970.
                      (5) Issues the commission shall consider in formulating quality growth principles for the
                  Legislature to consider include:
                      (a) how to ensure that the rights of private property owners are protected;
                      (b) how to implement the policy of no net decrease in the quantity or value of private real

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                  property available to generate property tax revenues, while recognizing that at times some additional
                  public land will be needed and at other times public land that is not critical can be sold, exchanged,
                  or converted to private ownership to accommodate growth and development;
                      (c) how to implement the concept of local control over land use and development decisions
                  but with state leadership and coordination;
                      (d) how to implement a balance of free market and public sector planning solutions to
                  growth management problems;
                      (e) whether to preserve or restore agricultural land and open land and, if so, how;
                      (f) whether to encourage infill development and the development of Brownfield sites and,
                  if so, how;
                      (g) whether to provide affordable housing for all economic segments of the state and, if so,
                  how;
                      (h) whether to encourage a mix of residential densities and housing types and, if so, how;
                      (i) whether to encourage the preservation or enhancement of existing housing stock and, if
                  so, how;
                      (j) how to encourage voluntary cooperation among local entities and other providers of
                  public services;
                      (k) how to encourage voluntary partnerships with the private sector;
                      (l) what governmental actions affect the free market system and the measures that should
                  be taken to minimize that effect;
                      (m) whether to encourage development in urban areas where adequate public facilities and
                  services already exist and, if so, how;
                      (n) whether quality growth areas should be located exclusively or primarily within
                  municipalities;
                      (o) whether development should be encouraged within municipalities; and
                      (p) whether barriers to quality growth exist in state statutes.
                      Section 18. Transition of LeRay McAllister Fund.
                      The LeRay McAllister Critical Land Conservation Revolving Loan Fund, established in

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                  Chapter 323, Laws of Utah 1998, is reestablished as the LeRay McAllister Critical Land
                  Conservation Fund under Section 11-38-301 , and all assets and liabilities of the LeRay McAllister
                  Critical Land Conservation Revolving Loan Fund are assets and liabilities of the LeRay McAllister
                  Critical Land Conservation Fund.
                      Section 19. Repealer.
                      This act repeals:
                      Section 11-28-101, Definitions.
                      Section 11-28-102, Critical Land Conservation Committee.
                      Section 11-28-103, LeRay McAllister Critical Land Conservation Revolving Loan Fund.
                      Section 11-28-104, Use of money in fund -- Criteria -- Repayment terms.
                      Section 11-28-105, Loan limitations.
                      Section 11-28-106, Division of Finance responsible for administration of loans.
                      Section 11-28-107, State treasurer shall invest monies.
                      Section 11-28-108, Committee authorized to dispose of property.
                      Section 63-9-64, Definitions.
                      Section 63-9-65, Energy consumption reporting requirements -- State energy
                  management plans.
                      Section 20. Appropriation.
                      There is appropriated $250,000 from the General Fund for fiscal year 1999-2000 to the
                  Governor's Office of Planning and Budget, established under Section 63-38-1.4 , for the purposes set
                  forth in Section 11-38-203 .
                      Section 21. Effective date.
                      If approved by two-thirds of all the members elected to each house, this act takes effect upon
                  approval by the governor, or the day following the constitutional time limit of Utah Constitution
                  Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
                  override.

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