H.B. 167

             1     

LOCAL ECONOMIC DEVELOPMENT AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: V. Lowry Snow

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to community development and renewal agencies.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that community development project area plans that are created to provide
             13      tax increment funding for development related to a specific industry or business
             14      entity are not subject to certain notice and public hearing requirements, if certain
             15      requirements are met, including that:
             16              .    the community development and renewal agency and each taxing entity and
             17      public entity that will be affected by the tax increment incentive enter into an
             18      interlocal agreement;
             19              .    the interlocal agreement is made in accordance with certain statutory provisions,
             20      including the public meeting requirements described in Section 17C-4-202 ;
             21              .    the primary market for the goods or services that will be created by the industry
             22      or business entity is outside of the state; and
             23              .    the specific industry or business entity receives a tax increment incentive only
             24      on a postperformance basis.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      ENACTS:
             31           17C-4-109 , Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 17C-4-109 is enacted to read:
             35          17C-4-109. Community development project area plan for a specific industry or
             36      business entity.
             37          (1) A community development project area plan that is created to provide a tax
             38      increment incentive for development related to a specific industry or business entity may be
             39      adopted or amended without complying with the notice and public hearing requirements of this
             40      part, if the following requirements are met:
             41          (a) the agency and each taxing entity and public entity that will be affected by the tax
             42      increment incentive enter into an interlocal agreement in accordance with Title 11, Chapter 13,
             43      Interlocal Cooperation Act, and Title 17C, Chapter 4, Part 2, Funds for Community
             44      Development Project from Other Entities, including the public meeting requirements described
             45      in Section 17C-4-202 ;
             46          (b) the primary market for the goods or services that will be created by the industry or
             47      business entity is outside of the state; and
             48          (c) a tax increment incentive is only provided to the specific industry or business entity
             49      on a postperformance basis as described in Subsection (2).
             50          (2) An industry or business entity may only receive a tax increment incentive under this
             51      section after entering into an agreement with the agency, approved by each party to the
             52      interlocal agreement described in Subsection (1)(a), that sets postperformance targets that shall
             53      be met before the industry or business entity may receive the tax increment incentive, including
             54      annual targets for:
             55          (a) capital investment in the project area;
             56          (b) the increase in the taxable value of the project area;
             57          (c) the number of new jobs created in the project area;
             58          (d) the average wages of the jobs created, which shall be at least 110% of the


             59      prevailing wage of the county where the project area is located; and
             60          (e) the amount of local vendor opportunity generated by the industry or business entity.




Legislative Review Note
    as of 2-25-14 4:21 PM


Office of Legislative Research and General Counsel


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