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H.B. 119

             1     

QUALITY GROWTH ACT OF 1999

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Kevin S. Garn

             5      Ralph Becker
             6      Susan J. Koehn
             7      Patrice M. Arent
             8      Martin R. Stephens
             9      Greg J. Curtis
             10      Brad King
             11      Lowell A. Nelson
             12      Joseph G. Murray
             13      David Ure
             14      Sheryl L. Allen
             15      David M. Jones
             16      David L. Hogue
             17      David L. Gladwell
             18      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
Marlon O. Snow
Wayne A. Harper
Marda Dillree
Richard M. Siddoway
Chad E. Bennion
Perry L. Buckner
Glenn L. Way
Ron Bigelow
James R. Gowans


             19      AN ACT RELATING TO CITIES, TOWNS, AND LOCAL TAXING DISTRICTS;
             20      ESTABLISHING A QUALITY GROWTH COMMISSION; PROVIDING DUTIES AND
             21      POWERS OF THE COMMISSION; REESTABLISHING THE LERAY MCALLISTER
             22      CRITICAL LAND CONSERVATION FUND AND PROVIDING FOR ITS ADMINISTRATION;
             23      EXPRESSING LEGISLATIVE INTENT ON QUALITY GROWTH AREAS; RESERVING
             24      PART OF FUTURE INCREASES IN THE PRIVATE ACTIVITY BOND VOLUME CAP FOR
             25      CERTAIN PURPOSES; PROVIDING FUNDING SOURCES FOR THE LERAY MCALLISTER
             26      FUND; PROVIDING FOR THE ESTABLISHMENT OF A STATE BUILDING ENERGY
             27      EFFICIENCY PROGRAM, WITH SOME OF THE ENERGY SAVINGS FUNDS TO GO TO
             28      THE LERAY MCALLISTER FUND; REPEALING AN EXISTING ENERGY EFFICIENCY
             29      PROGRAM; PROVIDING EXCEPTIONS TO CERTAIN BUDGETARY PROCEDURES IN
             30      CERTAIN CASES; APPROPRIATING $250,000 FROM THE GENERAL FUND FOR
             31      TECHNICAL ASSISTANCE FOR LOCAL ENTITIES; MAKING TECHNICAL AND


             32      CONFORMING CHANGES; AND PROVIDING AN EFFECTIVE DATE.
             33      This act affects sections of Utah Code Annotated 1953 as follows:
             34      AMENDS:
             35          9-4-505, as last amended by Chapter 192, Laws of Utah 1997
             36          63-38-3, as last amended by Chapter 313, Laws of Utah 1994
             37          63-38-8.1, as enacted by Chapter 76, Laws of Utah 1994
             38          63A-1-112, as renumbered and amended by Chapter 212, Laws of Utah 1993
             39      ENACTS:
             40          11-38-101, Utah Code Annotated 1953
             41          11-38-102, Utah Code Annotated 1953
             42          11-38-201, Utah Code Annotated 1953
             43          11-38-202, Utah Code Annotated 1953
             44          11-38-203, Utah Code Annotated 1953
             45          11-38-301, Utah Code Annotated 1953
             46          11-38-302, Utah Code Annotated 1953
             47          63-9-67, Utah Code Annotated 1953
             48          63-38-18, Utah Code Annotated 1953
             49      REPEALS:
             50          11-28-101, as enacted by Chapter 323, Laws of Utah 1998
             51          11-28-102, as enacted by Chapter 323, Laws of Utah 1998
             52          11-28-103, as enacted by Chapter 323, Laws of Utah 1998
             53          11-28-104, as enacted by Chapter 323, Laws of Utah 1998
             54          11-28-105, as enacted by Chapter 323, Laws of Utah 1998
             55          11-28-106, as enacted by Chapter 323, Laws of Utah 1998
             56          11-28-107, as enacted by Chapter 323, Laws of Utah 1998
             57          11-28-108, as enacted by Chapter 323, Laws of Utah 1998
             58          63-9-64, as last amended by Chapter 212, Laws of Utah 1993
             59          63-9-65, as last amended by Chapter 85, Laws of Utah 1986
             60      This act enacts uncodified material.
             61      Be it enacted by the Legislature of the state of Utah:
             62          Section 1. Section 9-4-505 is amended to read:


             63           9-4-505. Allocation of volume cap.
             64          (1) [The] (a) Subject to Subsection (1)(b), the volume cap for each year shall be
             65      distributed by the board of review to the various allotment accounts as set forth in Section 9-4-506 .
             66          (b) Fifty percent of each increase in the volume cap that occurs after the effective date of
             67      this Subsection (1)(b) shall be reserved for use in development that occurs in a quality growth area.
             68          (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the board
             69      of review an application containing information required by the procedures and processes of the
             70      board of review.
             71          (3) The board of review shall establish criteria for making allocations of volume cap that
             72      are consistent with the purposes of the code and this part. In making an allocation of volume cap
             73      the board of review shall consider the following:
             74          (a) the principal amount of the bonds proposed to be issued;
             75          (b) the nature and the location of the project or the type of program;
             76          (c) the likelihood that the bonds will be sold and the timeframe of bond issuance;
             77          (d) whether the project or program could obtain adequate financing without an allocation
             78      of volume cap;
             79          (e) the degree to which an allocation of volume cap is required for the project or program
             80      to proceed or continue;
             81          (f) the social, health, economic, and educational effects of the project or program on the
             82      local community and state as a whole;
             83          (g) the anticipated number of jobs, both temporary and permanent, created or retained
             84      within the local community and the state as a whole; [and]
             85          (h) if the project is a residential rental project, the degree to which the residential rental
             86      project targets lower income populations; and
             87          (i) whether the project meets the principles of quality growth recommended by the Quality
             88      Growth Commission created under Section 11-38-201 .
             89          (4) The board of review shall evidence an allocation of volume cap by issuing a certificate
             90      in accordance with Section 9-4-507 .
             91          Section 2. Section 11-38-101 is enacted to read:
             92     
CHAPTER 38. QUALITY GROWTH ACT

             93     
Part 1. General Provisions


             94          11-38-101. Title.
             95          This chapter is known as the "Quality Growth Act."
             96          Section 3. Section 11-38-102 is enacted to read:
             97          11-38-102. Definitions.
             98          As used in this chapter:
             99          (1) "Affordable housing" means housing occupied or reserved for occupancy by
             100      households with a gross household income equal to or less than 80% of the median gross income
             101      of the applicable municipal or county statistical area for households of the same size.
             102          (2) "Agricultural land" has the same meaning as "land in agricultural use" under Section
             103      59-2-502 .
             104          (3) "Brownfield sites" means abandoned, idled, or underused commercial or industrial land
             105      where expansion or redevelopment is complicated by real or perceived environmental
             106      contamination.
             107          (4) "Commission" means the Quality Growth Commission established in Section
             108      11-38-201 .
             109          (5) "Fund" means the LeRay McAllister Critical Land Conservation Fund established in
             110      Section 11-28-301 .
             111          (6) "Infill development" means residential, commercial, or industrial development on
             112      unused or underused land, excluding open land and agricultural land, within existing, otherwise
             113      developed urban areas.
             114          (7) "Local entity" means a county, city, or town.
             115          (8) "OPB" means the governor's Office of Planning and Budget established under Section
             116      63-38-1.4 .
             117          (9) "Open land" means land that is:
             118          (a) preserved predominantly in a natural, open, and undeveloped condition; and
             119          (b) used for:
             120          (i) wildlife habitat;
             121          (ii) cultural or recreational use;
             122          (iii) water source protection; or
             123          (iv) another use consistent with the preservation of the land in a predominantly natural,
             124      open, and undeveloped condition.


             125          (10) "State agency" includes each executive branch department, agency, board, or
             126      commission and each state educational institution.
             127          (11) "State Building Energy Efficiency Program" has the meaning as defined in Section
             128      63-9-67 .
             129          (12) "Surplus land" means real property owned by the Department of Administrative
             130      Services, the Department of Agriculture and Food, the Department of Natural Resources, or the
             131      Department of Transportation that the individual department determines not to be necessary for
             132      carrying out the mission of the department.
             133          Section 4. Section 11-38-201 is enacted to read:
             134     
Part 2. Quality Growth Commission

             135          11-38-201. Quality Growth Commission -- Term of office -- Vacancy -- Organization
             136      -- Expenses -- Staff.
             137          (1) There is created a Quality Growth Commission consisting of:
             138          (a) two persons at the state government level;
             139          (b) six persons at the local government level; and
             140          (c) five persons from the profit and nonprofit private sector, no more than three of whom
             141      may be from the same political party and one of whom shall be from the residential construction
             142      industry and one of whom shall be from the real estate industry.
             143          (2) (a) Each commission member shall be appointed by the governor with the advice and
             144      consent of the Senate.
             145          (b) The governor shall select three of the six members under Subsection (1)(b) from a list
             146      of names provided by the Utah League of Cities and Towns, and shall select the remaining three
             147      from a list of names provided by the Utah Association of Counties.
             148          (c) Two of the persons appointed under Subsection (1) shall be from the agricultural
             149      community.
             150          (3) (a) The term of office of each member is four years, except that the governor shall
             151      appoint one of the persons at the state government level, three of the persons at the local
             152      government level, and two of the persons from the private sector to an initial two-year term.
             153          (b) No member of the commission may serve more than two consecutive four-year terms.
             154          (4) Each mid-term vacancy shall be filled for the unexpired term in the same manner as
             155      an appointment under Subsection (2).


             156          (5) Commission members shall elect a chair from their number and establish rules for the
             157      organization and operation of the commission.
             158          (6) (a) No member may receive compensation or benefits for the member's service on the
             159      commission.
             160          (b) (i) A member who is not a government officer or employee may be reimbursed for
             161      reasonable expenses incurred in the performance of the member's official duties at the rates
             162      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             163          (ii) A member who is a government officer or employee and who does not receive
             164      expenses from the member's agency may be reimbursed for reasonable expenses incurred in the
             165      performance of the member's official duties at the rates established by the Division of Finance
             166      under Sections 63A-3-106 and 63A-3-107 .
             167          (c) A member may decline to be reimbursed for reasonable expenses incurred in the
             168      performance of the member's official duties.
             169          (d) A member is not required to give bond for the performance of official duties.
             170          (7) OPB shall provide staff services to the commission.
             171          Section 5. Section 11-38-202 is enacted to read:
             172          11-38-202. Commission duties and powers -- No regulatory authority.
             173          (1) The commission shall:
             174          (a) make recommendations to the Legislature on how to define more specifically quality
             175      growth areas within the general guidelines provided to the commission by the Legislature;
             176          (b) advise the Legislature on growth management issues;
             177          (c) make recommendations to the Legislature on refinements to this chapter;
             178          (d) conduct a review in 2002 and each year thereafter to determine progress statewide on
             179      accomplishing the purposes of this chapter, and give a report of each review to the Political
             180      Subdivisions Interim Committee of the Legislature by November 30 of the year of the review;
             181          (e) administer the fund as provided in this chapter;
             182          (f) assist as many local entities as possible, at their request, to identify principles of growth
             183      that the local entity may consider implementing to help achieve the highest possible quality of
             184      growth for that entity;
             185          (g) fulfill other responsibilities imposed on the commission by the Legislature; and
             186          (h) fulfill all other duties imposed on the commission by this chapter.


             187          (2) The commission may sell, lease, or otherwise dispose of equipment or personal
             188      property belonging to the fund, the proceeds from which shall return to the fund.
             189          (3) The commission may not exercise any regulatory authority.
             190          Section 6. Section 11-38-203 is enacted to read:
             191          11-38-203. Commission may provide assistance to local entities.
             192          The commission may:
             193          (1) from funds appropriated to OPB by the Legislature for this purpose, grant money to
             194      local entities to help them obtain the technical assistance they need to:
             195          (a) conduct workshops or public hearings or use other similar methods to obtain public
             196      input and participation in the process of identifying for that entity the principles of quality growth
             197      referred to in Subsection 11-38-202 (1)(e);
             198          (b) identify where and how quality growth areas could be established within the local
             199      entity; and
             200          (c) develop or modify the local entity's general plan to incorporate and implement the
             201      principles of quality growth developed by the local entity and to establish quality growth areas; and
             202          (2) require each local entity to which the commission grants money under Subsection (1)
             203      to report to the commission, in a format and upon a timetable determined by the commission, on
             204      that local entity's process of developing quality growth principles and on the quality growth
             205      principles developed by that local entity.
             206          Section 7. Section 11-38-301 is enacted to read:
             207     
Part 3. LeRay McAllister Fund

             208          11-38-301. LeRay McAllister Critical Land Conservation Fund.
             209          (1) There is created the LeRay McAllister Critical Land Conservation Fund, consisting of:
             210          (a) money appropriated or otherwise made available by the Legislature;
             211          (b) contributions of money, property, or equipment from federal agencies, political
             212      subdivisions of the state, persons, or corporations;
             213          (c) proceeds that a department chooses to place into the fund from the sale of surplus land
             214      under Subsection (2); and
             215          (d) funds from the State Building Energy Efficiency Program.
             216          (2) The Department of Administrative Services, the Department of Agriculture and Food,
             217      the Department of Natural Resources, and the Department of Transportation may place proceeds


             218      from the sale of surplus land into the fund.
             219          Section 8. Section 11-38-302 is enacted to read:
             220          11-38-302. Use of money in fund -- Criteria -- Administration.
             221          (1) Subject to Subsection (2), the commission may authorize the use of money in the fund,
             222      by grant or loan, to:
             223          (a) a local entity;
             224          (b) the Department of Natural Resources created under Section 63-34-3 ;
             225          (c) the Department of Agriculture and Food created under Section 4-2-1 ; and
             226          (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3) of
             227      the Internal Revenue Code.
             228          (2) (a) The money in the fund shall be used for preserving open land and agricultural land.
             229          (b) (i) Except as provided in Subsection (2)(b)(ii), money from the fund may not be used
             230      to purchase a fee interest in real property in order to preserve open land or agricultural land, but
             231      may be used to establish a conservation easement under Title 57, Chapter 18, Land Conservation
             232      Easement Act, or to fund similar methods to preserve open land or agricultural land.
             233          (ii) Notwithstanding Subsection (2)(b)(i), money from the fund may be used to purchase
             234      a fee interest in real property to preserve open land or agricultural land if:
             235          (A) the parcel to be purchased is no more than 20 acres in size; or
             236          (B) real property roughly equivalent in size is contemporaneously transferred to private
             237      ownership from the governmental entity that purchased the fee interest in real property.
             238          (c) An entity, department, or organization under Subsection (1) may not receive money
             239      from the fund unless it provides matching funds equal to or greater than the amount of money
             240      received from the fund.
             241          (d) In loaning or granting money from the fund, the commission may impose conditions
             242      on the recipient as to how the money is to be spent.
             243          (3) (a) If money from the fund is distributed in the form of a loan, the commission shall
             244      require interest to be paid and shall establish other terms of each loan, including a repayment
             245      schedule.
             246          (b) Each payment on a loan from the fund shall be returned to the fund and shall be applied
             247      first to interest and then to principal.
             248          (4) In determining the amount and type of financial assistance to provide an entity,


             249      department, or organization under Subsection (1), the commission:
             250          (a) if the assistance is in the form of a loan, shall consider the borrower's ability to repay
             251      the loan; and
             252          (b) may consider:
             253          (i) the nature and amount of open land and agricultural land proposed to be preserved;
             254          (ii) the qualities of the open land and agricultural land proposed to be preserved;
             255          (iii) the cost effectiveness of the project to preserve open land or agricultural land;
             256          (iv) the funds available;
             257          (v) the number of actual and potential applications for financial assistance, the amount of
             258      money sought by those applications, and the nature and amount of open land and agricultural land
             259      they propose to preserve; and
             260          (vi) the level of importance that the local entity where the project is located attaches to the
             261      specific open land or agricultural land preservation project seeking funding in comparison with
             262      other such projects.
             263          (5) Commission expenses and the costs of administering loans from the fund, as provided
             264      in Subsection (6), shall be paid from the fund.
             265          (6) (a) The Division of Finance shall be responsible for the care, custody, safekeeping,
             266      collection, and accounting for loans issued by the commission as provided in Section 63-65-4 .
             267          (b) The Division of Finance may charge to the fund the administrative costs incurred in
             268      discharging the responsibilities imposed by Subsection (6)(a).
             269          (7) The state treasurer shall invest all monies deposited into the fund, and all interest from
             270      investing the monies shall accrue to the fund.
             271          Section 9. Section 63-9-67 is enacted to read:
             272     
ARTICLE 11

             273     
STATE BUILDING ENERGY EFFICIENCY PROGRAM

             274          63-9-67. State Building Energy Efficiency Program.
             275          (1) For purposes of this section:
             276          (a) "Energy efficiency measures" means actions taken or initiated by a state agency that
             277      reduce the state agency's energy use, increase the state agency's energy efficiency, or lower the
             278      costs of energy to the state agency.
             279          (b) "Energy savings agreement" means an agreement entered into by a state agency


             280      participating in the State Building Energy Efficiency Program whereby the state agency
             281      implements energy efficiency measures and finances the costs associated with implementation of
             282      energy efficiency measures from the stream of expected savings in energy costs resulting from
             283      implementation of the energy efficiency measures.
             284          (c) "Fund" has the meaning as defined in Section 11-38-102 .
             285          (d) "Net savings" means savings in energy costs that a state agency realizes after taking
             286      into account the costs of implementing the energy efficiency measures or conservation activities
             287      that produce the savings.
             288          (e) "State agency" has the meaning as defined in Section 11-38-102 .
             289          (f) "State Building Energy Efficiency Program" means a program that the governor may
             290      establish by executive order recommending to or requiring state agencies to implement energy
             291      efficiency measures.
             292          (2) Subject to Subsection (3) and notwithstanding Subsections 63-38-2 (2)(c) and (f), each
             293      state agency realizing net savings from participation in the State Building Energy Efficiency
             294      Program or realizing net savings from implementing energy conservation activities under Chapter
             295      164, Laws of Utah 1985, as amended, shall transfer into the fund no less than 50% of those net
             296      savings.
             297          (3) Notwithstanding Subsection (2), a state agency may fulfill the terms of an energy
             298      savings agreement entered into before the effective date of this section providing for the state
             299      agency's payment for energy efficiency measures.
             300          (4) A state agency may enter into an energy savings agreement for a term of up to 25 years.
             301          (5) The Economic Development and Human Resources Appropriations Subcommittee of
             302      the Legislature shall conduct an annual financial review of the State Building Energy Efficiency
             303      Program and report the results of its review to the Legislature.
             304          Section 10. Section 63-38-3 is amended to read:
             305           63-38-3. Appropriations governed by chapter -- Restrictions on expenditures --
             306      Transfer of funds.
             307          (1) All moneys appropriated by the Legislature are appropriated upon the terms and
             308      conditions set forth in this chapter, and any department, agency, or institution, except the
             309      Legislature and its committees, or where specifically exempted by the appropriating act, which
             310      accepts moneys appropriated by the Legislature, does so subject to this chapter.


             311          (2) (a) In providing that certain appropriations are to be expended in accordance with a
             312      schedule or other restrictions, if any, set forth after each appropriations item, it is the intent of the
             313      Legislature to limit the amount of money to be expended from each appropriations item for certain
             314      specified purposes.
             315          (b) Each schedule:
             316          (i) is a restriction or limitation upon the expenditure of the respective appropriation made;
             317          (ii) does not itself appropriate any money; and
             318          (iii) is not itself an item of appropriation.
             319          (c) [An] Except as provided in Subsections 63-9-67 (2) and 63-38-18 (2), an appropriation
             320      or any surplus of any appropriation may not be diverted from any department, agency, institution,
             321      or division to any other department, agency, institution, or division.
             322          (d) The money appropriated subject to a schedule or restriction may be used only for the
             323      purposes authorized.
             324          (e) (i) If any department, agency, or institution for which money is appropriated requests
             325      the transfer of moneys appropriated to it from one purpose or function to another purpose or
             326      function within an item of appropriation, the state budget officer shall require a new work program
             327      to be submitted for the fiscal year involved setting forth the purpose and necessity for such
             328      transfer.
             329          (ii) The budget officer and fiscal officer shall review the proposed change and submit their
             330      findings and recommendations to the governor, who may permit the transfer.
             331          (iii) The state fiscal officer shall notify the Legislature through the Office of the Legislative
             332      Fiscal Analyst of action taken by the governor.
             333          (f) [Monies] Except as provided in Subsections 63-9-67 (2) and 63-38-18 (2), monies may
             334      not be transferred from one item of appropriation to any other item of appropriation.
             335          (3) This section does not apply to the Investigation Account of the Water Resources
             336      Construction Fund. The investigation account shall continue to be governed by Section 73-10-8 .
             337          Section 11. Section 63-38-8.1 is amended to read:
             338           63-38-8.1. Nonlapsing authority.
             339          (1) As used in this section:
             340          (a) (i) "Agency" means each department, commission, board, council, agency, institution,
             341      officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,


             342      panel, or other administrative unit of the state.
             343          (ii) "Agency" does not include those entities whose unappropriated and unencumbered
             344      balances are made nonlapsing by the operation of Subsection 63-38-8 (2).
             345          (b) "Appropriation balance" means the unexpended and unencumbered balance of a line
             346      item appropriation made by the Legislature to an agency that exists at the end of a fiscal year.
             347          (c) "Nonlapsing" means that an agency's appropriation balance is not closed out to the
             348      appropriate fund at the end of a fiscal year as required by Section 63-38-8 .
             349          (d) "One-time project" means a project or program that can be completed with the
             350      appropriation balance and includes such items as employee incentive awards and bonuses,
             351      purchase of equipment, and one-time training.
             352          (e) "One-time project's list" means:
             353          (i) a prioritized list of one-time projects, upon which an agency would like to spend any
             354      appropriation balance; and
             355          (ii) for each project, the maximum amount the agency is estimating for the project.
             356          (f) "Program" means a service provided by an agency to members of the public, other
             357      agencies, or to employees of the agency.
             358          (2) Notwithstanding the requirements of Section 63-38-8 , an agency may[,]:
             359          (a) by following the procedures and requirements of this section, retain and expend any
             360      appropriation balance[.]; and
             361          (b) comply with the requirements of Subsections 63-9-67 (2) and 63-38-18 (2).
             362          (3) (a) Each agency that wishes to preserve any part or all of its appropriation balance as
             363      nonlapsing shall include a one-time project's list as part of the budget request that it submits to the
             364      governor and the Legislature at the annual general session of the Legislature immediately before
             365      the end of the fiscal year in which the agency may have an appropriation balance.
             366          (b) An agency may not include a proposed expenditure on its one-time project's list if:
             367          (i) the expenditure creates a new program;
             368          (ii) the expenditure enhances the level of an existing program; or
             369          (iii) the expenditure will require a legislative appropriation in the next fiscal year.
             370          (c) The governor:
             371          (i) may approve some or all of the items from an agency's one-time project's list; and
             372          (ii) shall identify and prioritize any approved one-time projects in the budget that he


             373      submits to the Legislature.
             374          (4) The Legislature:
             375          (a) may approve some or all of the specific items from an agency's one-time project's list
             376      as authorized expenditures of an agency's appropriation balance;
             377          (b) shall identify any authorized one-time projects in the appropriate line item
             378      appropriation; and
             379          (c) may prioritize one-time projects in intent language.
             380          (5) The Legislative Fiscal Analyst shall:
             381          (a) conduct a study of the nonlapsing authority granted in this section and its effects on the
             382      budget, the budget process, the source of or reason for the appropriation balance, and the
             383      legislative appropriations power; and
             384          (b) report the analysis and any recommendations to the Legislative Management
             385      Committee and Interim Appropriations Committee by October 1, 1996.
             386          Section 12. Section 63-38-18 is enacted to read:
             387          63-38-18. Refund for electrical service to be deposited into the LeRay McAllister
             388      Fund.
             389          (1) For purposes of this section:
             390          (a) the definitions of Section 11-38-102 apply; and
             391          (b) "Refund" means the return of an amount of money to a state agency from a provider
             392      of electrical service under an order of the Utah Public Service Commission requiring a retroactive
             393      rate reduction, whether the return is in the form of a direct cash payment, an offset or credit against
             394      future charges for electrical service, or any other form.
             395          (2) Notwithstanding Subsections 63-38-3 (2)(c) and (f), each state agency shall, as directed
             396      by the Division of Finance, transfer to the fund the amount of each refund as the refund is received
             397      by the state agency.
             398          Section 13. Section 63A-1-112 is amended to read:
             399           63A-1-112. Certificates of participation -- Legislative approval required --
             400      Definition.
             401          (1) (a) Certificates of participation for either capital facilities or capital improvements may
             402      not be issued by the department, its subdivisions, or any other state agency after July 1, 1985,
             403      without prior legislative approval.


             404          (b) Nothing in this section affects the rights and obligations surrounding certificates of
             405      participation that were issued prior to July 1, 1985.
             406          (2) (a) As used in this section, "certificate of participation" means an instrument that acts
             407      as evidence of the certificate holder's undivided interest in property being lease-purchased, the
             408      payment on which is subject to appropriation by the Legislature.
             409          (b) (i) For purposes of this Subsection (2)(b), "energy savings agreement" has the meaning
             410      as defined in Section 63-9-67 .
             411          (ii) "Certificate of participation" does not include an energy savings agreement.
             412          Section 14. Additional duties of Quality Growth Commission -- Legislative intent on
             413      quality growth areas.
             414          (1) For purposes of this section, the definitions of Section 11-38-102 apply.
             415          (2) In addition to the duties imposed by Section 11-38-202 , the Quality Growth
             416      Commission, established in Section 11-38-201 , shall:
             417          (a) consider the factors identified in Subsection (5) and input received from local entities
             418      under Subsection 11-38-203 (2) and from any other useful source of relevant information and
             419      formulate quality growth principles that the Legislature may consider implementing in further
             420      legislation affecting Title 11, Chapter 38, Quality Growth Act;
             421          (b) develop proposals for or drafts of legislation to implement quality growth principles
             422      and to define more specifically the features of quality growth areas, whose general features are
             423      outlined in Subsection (3), and to provide for their establishment;
             424          (c) consider other state sources of revenue that could be added to the list of funding
             425      sources under Subsection (4)(a) for which quality growth areas will be given priority and make a
             426      recommendation to the Legislature as to funding sources it should consider adding to the list;
             427          (d) consider other potential sources of money for the fund to pay for the preservation of
             428      agricultural land and open land and make a recommendation to the Legislature as to other sources
             429      of money it should consider;
             430          (e) develop and recommend to the Legislature criteria and standards that should apply in
             431      determining how distributions of money from the fund should be prioritized; and
             432          (f) report to the Political Subdivisions Interim Committee of the Legislature by November
             433      30, 1999, on the commission's proposals and recommendations under Subsections (2)(a), (b), (c),
             434      (d), and (e).


             435          (3) (a) It is the intent of the Legislature to consider the recommendations of the Quality
             436      Growth Commission and to consider defining the features of quality growth areas and providing
             437      for their establishment.
             438          (b) General features of a quality growth area that the commission shall consider in
             439      recommending a more specific definition are:
             440          (i) whether the area should have adequate existing infrastructure or ready access to
             441      additional infrastructure to support additional development;
             442          (ii) whether affordable housing should be integrated into the housing mix;
             443          (iii) whether the area should have potential for:
             444          (A) infill development;
             445          (B) the redevelopment of existing but obsolete or dilapidated developed areas; or
             446          (C) the rehabilitation of Brownfield sites;
             447          (iv) whether the area should achieve an average residential density that is greater than the
             448      density of existing developed areas in which the quality growth area is located; and
             449          (v) whether the local entity should be willing to integrate the conservation of open land
             450      and agricultural land.
             451          (4) It is the intent of the Legislature that future legislation providing for the establishment
             452      of quality growth areas will:
             453          (a) include provisions that:
             454          (i) except as provided in Subsection (4)(b), give priority to quality growth areas with
             455      respect to accessing funds from:
             456          (A) the Water Resources Construction Fund under Section 73-10-8 ;
             457          (B) the Water Resources Cities Water Loan Fund under Section 73-10-22 ;
             458          (C) the Water Resources Conservation and Development Fund under Sections 73-10-24 ,
             459      73-10b-4 , 73-10g-3 , and 73-10h-3 ;
             460          (D) the Drinking Water Board Loan Program under Sections 73-10b-6 , 73-10g-5 , and
             461      73-10h-5 ; and
             462          (E) the Water Quality Assistance Program under Sections 73-10b-5 , 73-10g-4 , and
             463      73-10h-4 ;
             464          (ii) specify how 50% of any future increases in the state's private activity bond volume cap
             465      under Title 9, Chapter 4, Part 5, Bond Volume Cap Allocation, may be used for development that


             466      occurs within a quality growth area; and
             467          (iii) require all state agencies, departments, boards, and commissions which administer and
             468      disburse funds or develop infrastructure at the state level to adhere to quality growth principles to
             469      be formulated by the commission and adopted by the Legislature, and comply with other
             470      provisions of Title 11, Chapter 38, Quality Growth Act; and
             471          (b) not place counties with a population under 25,000, cities and towns in a county with
             472      a population under 25,000, and towns and cities with a population under 5,000 located in a county
             473      of the third, fourth, fifth, or sixth class at a disadvantage, with respect to accessing funds under
             474      Subsection (4)(a)(i), for not having a quality growth area.
             475          (5) Issues the commission shall consider in formulating quality growth principles for the
             476      Legislature to consider include:
             477          (a) how to ensure that the rights of private property owners are protected;
             478          (b) how to implement the policy of no net decrease in the quantity or value of private real
             479      property available to generate property tax revenues, while recognizing that at times some
             480      additional public land will be needed and at other times public land that is not critical can be sold,
             481      exchanged, or converted to private ownership to accommodate growth and development;
             482          (c) how to implement the concept of local control over land use and development decisions
             483      but with state leadership and coordination;
             484          (d) how to implement a balance of free market and public sector planning solutions to
             485      growth management problems;
             486          (e) whether to preserve agricultural land and open land and, if so, how;
             487          (f) whether to encourage infill development and the development of Brownfield sites and,
             488      if so, how;
             489          (g) whether to provide affordable housing for all economic segments of the state and, if
             490      so, how;
             491          (h) whether to encourage a mix of residential densities and housing types and, if so, how;
             492          (i) whether to encourage the preservation or enhancement of existing housing stock and,
             493      if so, how;
             494          (j) how to encourage voluntary cooperation among local entities and other providers of
             495      public services;
             496          (k) how to encourage voluntary partnerships with the private sector;


             497          (l) what governmental actions affect the free market system and the measures that should
             498      be taken to minimize that effect;
             499          (m) whether to encourage development in urban areas where adequate public facilities and
             500      services already exist and, if so, how;
             501          (n) whether quality growth areas should be located exclusively or primarily within
             502      municipalities;
             503          (o) whether development should be encouraged within municipalities; and
             504          (p) whether barriers to quality growth exist in state statutes.
             505          Section 15. Transition of LeRay McAllister Fund.
             506          The LeRay McAllister Critical Land Conservation Revolving Loan Fund, established in
             507      Chapter 323, Laws of Utah 1998, is reestablished as the LeRay McAllister Critical Land
             508      Conservation Fund under Section 11-38-301 , and all assets and liabilities of the LeRay McAllister
             509      Critical Land Conservation Revolving Loan Fund are assets and liabilities of the LeRay McAllister
             510      Critical Land Conservation Fund.
             511          Section 16. Repealer.
             512          This act repeals:
             513          Section 11-28-101, Definitions.
             514          Section 11-28-102, Critical Land Conservation Committee.
             515          Section 11-28-103, LeRay McAllister Critical Land Conservation Revolving Loan
             516      Fund.
             517          Section 11-28-104, Use of money in fund -- Criteria -- Repayment terms.
             518          Section 11-28-105, Loan limitations.
             519          Section 11-28-106, Division of Finance responsible for administration of loans.
             520          Section 11-28-107, State treasurer shall invest monies.
             521          Section 11-28-108, Committee authorized to dispose of property.
             522          Section 63-9-64, Definitions.
             523          Section 63-9-65, Energy consumption reporting requirements -- State energy
             524      management plans.
             525          Section 17. Appropriation.
             526          Except as provided in H.B. 4, Appropriations Coordination Act, there is appropriated
             527      $250,000 from the General Fund for fiscal year 1999-2000 to the Governor's Office of Planning


             528      and Budget, established under Section 63-38-1.4 , for the purposes set forth in Section 11-38-203 .
             529          Section 18. Effective date.
             530          If approved by two-thirds of all the members elected to each house, this act takes effect
             531      upon approval by the governor, or the day following the constitutional time limit of Utah
             532      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             533      date of veto override.




Legislative Review Note
    as of 1-25-99 10:33 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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