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S.B. 21

            


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House Committee Amendments 2-5-2003 bh/po

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AMENDMENTS TO THE INTERLOCAL

             2     
COOPERATION ACT

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Leonard M. Blackham

             6      This act modifies the Interlocal Cooperation Act including making technical changes.
             7      The act adds definitions and modifies provisions related to project entity and generation
             8      output requirements. S THE ACT MODIFIES PROVISIONS RELATED TO POWERS AND DUTIES OF
             8a      INTERLOCAL ENTITIES. s For purposes of the payment of fee in lieu of ad valorem property
             9      tax, this act provides that a fee base for a project can be determined by agreement. This
             10      act provides for valuation by the State Tax Commission if a fee base is not determined by
             11      an agreement. h PORTIONS OF THIS ACT HAVE RETROSPECTIVE OPERATION TO JANUARY 1,
             11a      2003. h
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          11-13-103, as renumbered and amended by Chapter 286, Laws of Utah 2002
             14a          S 11-13-204, AS ENACTED BY CHAPTER 286, LAWS OF UTAH 2002 s
             15          11-13-301, as enacted by Chapter 286, Laws of Utah 2002
             16          11-13-302, as renumbered and amended by Chapter 286, Laws of Utah 2002
             17          11-13-310, as renumbered and amended by Chapter 286, Laws of Utah 2002
             18          11-13-311, as renumbered and amended by Chapter 286, Laws of Utah 2002
             19      Be it enacted by the Legislature of the state of Utah:
             20          Section 1. Section 11-13-103 is amended to read:
             21           11-13-103. Definitions.
             22          As used in this chapter:
             23          (1) "Additional project capacity" means electric generating capacity provided by a
             24      generating unit that first produces electricity on or after May 6, 2002 and that is constructed or
             25      installed at or adjacent to the site of a project that first produced electricity before May 6, 2002,
             26      regardless of whether:


             27          (a) the owners of the new generating unit are the same as or different from the owner of



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     the project; and
             29          (b) the purchasers of electricity from the new generating unit are the same as or
             30      different from the purchasers of electricity from the project.
             31          (2) "Board" means the Permanent Community Impact Fund Board created by Section
             32      9-4-304 , and its successors.
             33          (3) "Candidate" means one or more of:
             34          (a) the state;
             35          (b) a county, municipality, school district, special district, or other political subdivision
             36      of the state; and
             37          (c) a prosecution district.
             38          (4) "Commercial project entity" means a project entity, defined in Subsection [(11)]
             39      (12), that:
             40          (a) has no taxing authority; and
             41          (b) is not supported in whole or in part by and does not expend or disburse tax
             42      revenues.
             43          (5) "Direct impacts" means an increase in the need for public facilities or services that
             44      is attributable to the project or facilities providing additional project capacity, except impacts
             45      resulting from the construction or operation of a facility that is:
             46          (a) owned by an owner other than the owner of the project or of the facilities providing
             47      additional project capacity; and
             48          (b) used to furnish fuel, construction, or operation materials for use in the project.
             49          (6) "Electric interlocal entity" means an interlocal entity described in Subsection
             50      11-13-203 (3).
             51          (7) "Energy services interlocal entity" means an interlocal entity that is described in
             52      Subsection 11-13-203 (4).
             53          (8) (a) "Estimated electric requirements," when used with respect to a qualified energy
             54      services interlocal entity, includes any of the following that meets the requirements of
             55      Subsection (8)(b):
             56          (i) generation capacity;
             57          (ii) generation output; or
             58          (iii) an electric energy production facility.



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         (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements"
             60      if it is needed by the qualified energy services interlocal entity to perform the qualified energy
             61      services interlocal entity's contractual or legal obligations to any of its members.
             62          [(8)] (9) "Interlocal entity" means:
             63          (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
             64      entity; or
             65          (b) a separate legal or administrative entity created under Section 11-13-205 .
             66          [(9)] (10) "Out-of-state public agency" means a public agency as defined in Subsection
             67      [(12)] (13)(c), (d), or (e).
             68          [(10)] (11) (a) "Project":
             69          (i) means an electric generation and transmission facility owned by a Utah interlocal
             70      entity or an electric interlocal entity; and
             71          (ii) includes fuel or fuel transportation facilities and water facilities owned by that Utah
             72      interlocal entity or electric interlocal entity and required for the generation and transmission
             73      facility.
             74          (b) "Project" includes a project entity's ownership interest in:
             75          (i) facilities that provide additional project capacity; and
             76          (ii) additional generating, transmission, fuel, fuel transportation, water, or other
             77      facilities added to a project.
             78          [(11)] (12) "Project entity" means a Utah interlocal entity or an electric interlocal entity
             79      that owns a project.
             80          [(12)] (13) "Public agency" means:
             81          (a) a city, town, county, school district, special district, or other political subdivision of
             82      the state;
             83          (b) the state or any department, division, or agency of the state;
             84          (c) any agency of the United States;
             85          (d) any political subdivision or agency of another state or the District of Columbia
             86      including any interlocal cooperation or joint powers agency formed under the authority of the
             87      law of the other state or the District of Columbia; and
             88          (e) any Indian tribe, band, nation, or other organized group or community which is
             89      recognized as eligible for the special programs and services provided by the United States to



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     Indians because of their status as Indians.
             91          (14) "Qualified energy services interlocal entity" means an energy services interlocal
             92      entity that at the time that the energy services interlocal entity acquires its interest in facilities
             93      providing additional project capacity has at least five members that are Utah public agencies.
             94          [(13)] (15) "Utah interlocal entity":
             95          (a) means an interlocal entity described in Subsection 11-13-203 (2); and
             96          (b) includes a separate legal or administrative entity created under Chapter 47, Laws of
             97      Utah 1977, Section 3, as amended.
             98          [(14)] (16) "Utah public agency" means a public agency under Subsection [(12)]
             99      (13)(a) or (b).
             99a      S Section 2. Section 11-13-204 is amended to read:
             99b          11-13-204.   Powers and duties of interlocal entities -- Additional powers of energy services
             99c      interlocal entities -- Length of term of agreement and interlocal entity -- Notice to State Tax
             99d      Commission.
             99e          (1) (a) An interlocal entity:
             99f          (i) may:
             99g          (A) adopt, amend, and repeal rules, bylaws, policies, and procedures for the regulation of its
             99h      affairs and the conduct of its business;
             99i          (B) sue and be sued;
             99j          (C) have an official seal and alter that seal at will;
             99k          (D) make and execute contracts and other instruments necessary or convenient for the
             99l      performance of its duties and the exercise of its powers and functions;
             99m          (E) acquire real or personal property, or an undivided, fractional, or other interest in real or
             99n      personal property, necessary or convenient for the purposes contemplated in the agreement creating
             99o      the interlocal entity and sell, lease, or otherwise dispose of that property;
             99p          (F) directly or by contract with another:
             99q          (I) own and acquire facilities and improvements or an undivided, fractional, or other interest in
             99r      facilities and improvements;
             99s          (II) construct, operate, maintain, and repair facilities and improvements; and
             99t          (III) provide the services contemplated in the agreement creating the interlocal entity;
             99u          (G) borrow money, incur indebtedness, and issue revenue bonds, notes, or other obligations
             99v      and secure their payment by an assignment, pledge, or other conveyance of all or any part of the
             99w      revenues and receipts from the facilities, improvements, or services that the interlocal entity provides;
             99x          (H) offer, issue, and sell warrants, options, or other rights related to the bonds, notes, or other
             99y      obligations issued by the interlocal entity; and
             99z          (I) sell or contract for the sale of the services, output, product, or other benefits provided by
             99aa      the interlocal entity to:
             99ab          (I) public agencies inside or outside the state; and
             99ac          (II) with respect to any excess services, output, product, or benefits, any person on terms that
             99ad      the interlocal entity considers to be in the best interest of the public agencies that are parties to the
             99ae      agreement creating the interlocal entity; and
             99af          (ii) may not levy, assess, or collect ad valorem property taxes. s


            
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99ag
     S    (b) An assignment, pledge, or other conveyance under Subsection (1)(a)(i)(G) may, to the
             99ah      extent provided by the documents under which the assignment, pledge, or other conveyance is made,
             99ai      rank prior in right to any other obligation except taxes or payments in lieu of taxes payable to the state
             99aj      or its political subdivisions.
             99ak          (2) An energy services interlocal entity:
             99al          (a) except with respect to any ownership interest it has in facilities providing additional
             99am      project capacity, is not subject to:
             99an          (i) Part 3, Project Entity Provisions; or
             99ao          (ii) Title 59, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
             99ap      Corporate Franchise or Income Tax Act; and
             99aq          (b) may:
             99ar          (i) own, acquire, and, by itself or by contract with another, construct, operate, and maintain a
             99as      facility or improvement for the generation, transmission, and transportation of electric energy or
             99at      related fuel supplies;
             99au          (ii) enter into a contract to obtain a supply of electric power and energy and ancillary services,
             99av      transmission, and transportation services, and supplies of natural gas and fuels necessary for the
             99aw      operation of generation facilities;
             99ax          (iii) enter into a contract with public agencies, investor-owned or cooperative utilities, and
             99ay      others, whether located in or out of the state, for the sale of [the] WHOLESALE services provided by
             99az      the energy services interlocal entity; and
             99ba          (iv) adopt and implement risk management policies and strategies and enter into transactions
             99bb      and agreements to manage the risks associated with the purchase and sale of energy [in competitive
             99bc      markets], including forward purchase and sale contracts, hedging, tolling and swap agreements, and
             99bd      other instruments.
             99be          (3) Notwithstanding Section 11-13-216, an agreement creating an interlocal entity or an
             99bf      amendment to that agreement may provide that the agreement may continue and the interlocal entity
             99bg      may remain in existence until the latest to occur of:
             99bh          (a) 50 years after the date of the agreement or amendment;
             99bi          (b) five years after the interlocal entity has fully paid or otherwise discharged all of its
             99bj      indebtedness;
             99bk          (c) five years after the interlocal entity has abandoned, decommissioned, or conveyed or
             99bl      transferred all of its interest in its facilities and improvements; or
             99bm          (d) five years after the facilities and improvements of the interlocal entity are no longer useful
             99bn      in providing the service, output, product, or other benefit of the facilities and improvements, as
             99bo      determined under the agreement governing the sale of the service, output, product, or other benefit.
             99bp          (4) (a) The governing body of each interlocal entity created under Section 11-13-203 on or after
             99bq      May 4, 1998, shall, within 30 days of the creation, file a written notice of the creation with the State Tax
             99br      Commission.
             99bs          (b) Each written notice required under Subsection (4)(a) shall:


             99bt          (i) be accompanied by:
             99bu          (A) a copy of the agreement creating the interlocal entity; and
             99bv          (B) if less than all of the territory of any Utah public agency that is a party to the agreement is
             99bw      included within the interlocal entity, a plat that delineates a metes and bounds description of the area
             99bx      affected or a map of the area affected and evidence that the information has been recorded by s


            
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99by
     S the recorder of the county in which the Utah public agency is located; and
             99bz          (ii) contain a certification by the governing body that all necessary legal requirements relating
             99ca      to the creation have been completed.
             99cb          (5) NOTHING IN THIS SECTION 11-13-204 SHALL BE CONSTRUED AS EXPANDING THE
             99cc      RIGHTS OF ANY MUNICIPALITY OR INTERLOCAL ENTITY TO SELL OR PROVIDE RETAIL SERVICE. s
             100          Section 2. Section 11-13-301 is amended to read:
             101           11-13-301. Project entity and generation output requirements.
             102          (1) Each project entity shall:
             103          (a) before undertaking the construction of a project or of facilities to provide additional
             104      project capacity, offer to sell or make available at least 50% of the generation output of or
             105      electric energy produced by the project or additional project capacity, respectively;
             106          (b) establish rules and procedures for an offer under Subsection (1)(a) that provide at
             107      least 60 days for a prospective power purchaser to accept the offer before [it] the offer is
             108      considered rejected; and
             109          (c) make each offer under Subsection (1)(a):
             110          (i) under a long-term arrangement that may be an undivided ownership interest, a
             111      participation interest, a power sales agreement, or otherwise; and
             112          (ii) to one or more power purchasers in the state that supply electric energy at
             113      wholesale or retail.
             114          (2) (a) The generation output or electric energy production available to power
             115      purchasers in the state from a project shall be at least 5% of the total generation output or
             116      electric energy production of the project.
             117          (b) (i) Subject to Subsection (2)(b)(ii), at least a majority of the generation capacity,
             118      generation output, or electric energy production [of] facilities providing additional project
             119      capacity shall be:
             120          (A) made available as needed to meet the estimated electric requirements of entities or



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     consumers within the state; and
             122          (B) owned, purchased, or consumed by entities or consumers within the state.
             123          (ii) (A) As used in this Subsection (2)(b)(ii), "default provision" means a provision
             124      authorizing a nondefaulting party to succeed to or require the disposition of the rights and
             125      interests of a defaulting party.
             126          (B) The requirements of Subsection (2)(b)(i) do not apply to the extent that those
             127      requirements are not met due to the operation of a default provision in an agreement providing
             128      for ownership or other interests in facilities providing additional project capacity.
             129          Section 3. Section 11-13-302 is amended to read:
             130           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             131      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             132          (1) [A] (a) Each project entity created under this chapter [which] that owns a project
             133      and [which] that sells any capacity, service, or other benefit from it to an energy supplier or
             134      suppliers whose tangible property is not exempted by Utah Constitution Article XIII, Section 2,
             135      from the payment of ad valorem property tax, shall pay an annual fee in lieu of ad valorem
             136      property tax as provided in this section to each taxing jurisdiction within which the project or
             137      any part of it is located.
             138          (b) For purposes of this section, "annual fee" means the annual fee described in
             139      Subsection (1)(a) that is in lieu of ad valorem property tax.
             140          (c) The requirement to pay [these fees] an annual fee shall commence:
             141          [(a)] (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit
             142      of impact alleviation payments under contracts or determination orders provided for in Sections
             143      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             144      candidate in which the date of commercial operation of the last generating unit, other than any
             145      generating unit providing additional project capacity, of the project occurs, or, in the case of
             146      any facilities providing additional project capacity, with the fiscal year of the candidate
             147      following the fiscal year of the candidate in which the date of commercial operation of the
             148      generating unit providing the additional project capacity occurs; and
             149          [(b)] (ii) with respect to any [other] taxing [jurisdictions] jurisdiction other than a
             150      taxing jurisdiction described in Subsection (1)(c)(i), with the fiscal year of the taxing
             151      jurisdiction in which construction of the project commences, or, in the case of facilities



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     providing additional project capacity, with the fiscal year of the taxing jurisdiction in which
             153      construction of those facilities commences.
             154          (d) The [requirements] requirement to pay [these fees] an annual fee shall continue for
             155      the period of the useful life of the project or facilities.
             156          (2) (a) [Because] The annual fees due a school district shall be as provided in
             157      Subsection (2)(b) because the ad valorem property tax imposed by a school district and
             158      authorized by the Legislature under Section 53A-17a-135 represents both:
             159          [(a)] (i) a levy mandated by the state for the state minimum school program under
             160      Section 53A-17a-135 ; and
             161          [(b)] (ii) local levies for capital outlay, maintenance, transportation, and other purposes
             162      under Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             163      53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 [, the].
             164          (b) The annual [fee in lieu of ad valorem property tax] fees due a school district shall
             165      be as follows:
             166          (i) the project entity shall pay to the school district [a] an annual fee [in lieu of ad
             167      valorem property tax] for the state minimum school program at the rate imposed by the school
             168      district and authorized by the Legislature under Subsection 53A-17a-135 (1); and
             169          (ii) for all other local property tax levies authorized to be imposed by a school district,
             170      the project entity shall pay to the school district either [a]:
             171          (A) an annual fee [in lieu of ad valorem property tax]; or
             172          (B) impact alleviation payments under contracts or determination orders provided for
             173      in Sections 11-13-305 and 11-13-306 [, for all other local property tax levies authorized].
             174          (3) (a) [The] An annual fee due a taxing jurisdiction for a particular year shall be
             175      calculated by multiplying the tax rate or rates of the jurisdiction for that year by the product
             176      obtained by multiplying the [taxable] fee base or value determined in accordance with
             177      Subsection (4) for that year of the portion of the project located within the jurisdiction by the
             178      percentage of the project which is used to produce the capacity, service, or other benefit sold to
             179      the energy supplier or suppliers.
             180          (b) As used in this section, "tax rate," when applied in respect to a school district,
             181      includes any assessment to be made by the school district under Subsection (2) or Section
             182      63-51-6 .



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         (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             184      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             185      the proceeds of which were used to provide public facilities and services for impact alleviation
             186      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             187          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             188          [(a)] (i) take into account the [taxable] fee base or value of the percentage of the project
             189      located within the taxing jurisdiction determined in accordance with Subsection (4) used to
             190      produce the capacity, service, or other benefit sold to the supplier or suppliers; and
             191          [(b)] (ii) reflect any credit to be given in that year.
             192          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             193      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             194          (i) the annual fees were ad valorem property taxes; and
             195          (ii) the project were assessed at the same rate and upon the same measure of value as
             196      taxable property in the state.
             197          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             198      this section, the fee base of a project may be determined in accordance with an agreement
             199      among:
             200          (A) the project entity; and
             201          (B) any county that:
             202          (I) is due an annual fee from the project entity; and
             203          (II) agrees to have the fee base of the project determined in accordance with the
             204      agreement described in this Subsection (4).
             205          (ii) The agreement described in Subsection (4)(b)(i):
             206          (A) shall specify each year for which the fee base determined by the agreement shall be
             207      used for purposes of an annual fee; and
             208          (B) may not modify any provision of this chapter except the method by which the fee
             209      base of a project is determined for purposes of an annual fee.
             210          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             211      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             212      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             213      jurisdiction.



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         (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             215      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             216      portion of the project for which there is not an agreement:
             217          (I) for that year; and
             218          (II) using the same measure of value as is used for taxable property in the state.
             219          (B) The [assessment] valuation required by Subsection (4)(b)(iv)(A) shall be made by
             220      the State Tax Commission in accordance with rules [promulgated] made by [it] the State Tax
             221      Commission.
             222          (c) Payments of the annual fees shall be made from:
             223          (i) the proceeds of bonds issued for the project; and [from]
             224          (ii) revenues derived by the project entity from the project[; and the].
             225          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             226      other benefits of the project whose tangible property is not exempted by Utah Constitution
             227      Article XIII, Section 2, from the payment of ad valorem property tax shall require each
             228      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             229      its share, determined in accordance with the terms of the contract, of these fees.
             230          (ii) It is the responsibility of the project entity to enforce the obligations of the
             231      purchasers.
             232          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             233      limited to the extent that there is legally available to the project entity, from bond proceeds or
             234      revenues, monies to make these payments, and the obligation to make payments of the annual
             235      fees is not otherwise a general obligation or liability of the project entity.
             236          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             237      any failure to pay all or any part of [the] an annual fee.
             238          (c) The project entity or any purchaser may contest the validity of [the] an annual fee to
             239      the same extent as if the payment was a payment of the ad valorem property tax itself.
             240          (d) The payments of [the] an annual fee shall be reduced to the extent that any contest
             241      is successful.
             242          (6) (a) Any public agency that is not a project entity and that owns an interest in
             243      facilities providing additional project capacity which, if its tangible property is not exempted
             244      by Utah Constitution, Article XIII, Section 2, from the payment of ad valorem property tax,



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             245
     uses any capacity, service, or other benefit from it or which sells any capacity, service, or other
             246      benefit from it to an energy supplier or suppliers whose tangible property is not exempted by
             247      Utah Constitution, Article XIII, Section 2, from the payment of ad valorem property tax, shall
             248      pay an annual fee [in lieu of ad valorem property tax] with respect to its ownership interest, and
             249      shall have the obligations, credits, rights, and protections set forth in Subsections (1) [through],
             250      (2), (3), (4)(a), (4)(c), (4)(d), and (5) with respect to its ownership interest as though it were a
             251      project entity.
             252          (b) The ownership interest of a public agency upon which [a fee in lieu of ad valorem
             253      property tax] an annual fee is payable is not subject to:
             254          (i) ad valorem property taxes under Title 59, Chapter 2, Property Tax Act; or
             255          (ii) privilege taxes under Title 59, Chapter 4, Privilege Tax.
             256          (c) Each public agency and project entity that owns an interest in facilities providing
             257      additional project capacity:
             258          (i) is subject to [a fee in lieu of ad valorem property tax] an annual fee only with
             259      respect to that ownership interest; and
             260          (ii) is not subject to [a fee in lieu of ad valorem property tax] an annual fee with respect
             261      to any portion of the facilities providing additional project capacity that it does not own.
             262          Section 4. Section 11-13-310 is amended to read:
             263           11-13-310. Termination of impact alleviation contract.
             264          If the project or any part of it or the facilities providing additional project capacity or
             265      any part of them, or the output from the project or facilities providing additional project
             266      capacity become subject, in addition to the requirements of Section 11-13-302 , to ad valorem
             267      property taxation or other payments in lieu of ad valorem property taxation, or other form of
             268      tax equivalent payments to any candidate which is a party to an impact alleviation contract with
             269      respect to the project or facilities providing additional project capacity or is receiving impact
             270      alleviation payments or means with respect to the project or facilities providing additional
             271      project capacity pursuant to a determination by the board, then the impact alleviation contract
             272      or the requirement to make impact alleviation payments or provide means therefor pursuant to
             273      the determination, as the case may be, shall, at the election of the candidate, terminate. In any
             274      event, each impact alleviation contract or determination order shall terminate upon the project,
             275      or, in the case of facilities providing additional project capacity, those facilities becoming



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             276
     subject to the provisions of Section 11-13-302 , except that no impact alleviation contract or
             277      agreement entered by a school district shall terminate because of in lieu ad valorem property
             278      tax fees levied under Subsection 11-13-302 (2)[(a)] (b)(i) or because of ad valorem property
             279      taxes levied under Section 53A-17a-135 for the state minimum school program. In addition, if
             280      the construction of the project, or, in the case of facilities providing additional project capacity,
             281      of those facilities, is permanently terminated for any reason, each impact alleviation contract
             282      and determination order, and the payments and means required thereunder, shall terminate. No
             283      termination of an impact alleviation contract or determination order may terminate or reduce
             284      any liability previously incurred pursuant to the contract or determination order by the
             285      candidate beneficiary under it. If the provisions of Section 11-13-302 , or its successor, are held
             286      invalid by a court of competent jurisdiction, and no ad valorem taxes or other form of tax
             287      equivalent payments are payable, the remaining provisions of this chapter shall continue in
             288      operation without regard to the commencement of commercial operation of the last generating
             289      unit of that project or of facilities providing additional project capacity.
             290          Section 5. Section 11-13-311 is amended to read:
             291           11-13-311. Credit for impact alleviation payments against in lieu of ad valorem
             292      property taxes -- Federal or state assistance.
             293          (1) In consideration of the impact alleviation payments and means provided by the
             294      project entity or other public agency pursuant to the contracts and determination orders, the
             295      project entity or other public agency, as the case may be, shall be entitled to a credit against the
             296      fees paid in lieu of ad valorem property taxes as provided by Section 11-13-302 , ad valorem
             297      property or other taxation by, or other payments in lieu of ad valorem property taxation or other
             298      form of tax equivalent payments required by any candidate which is a party to an impact
             299      alleviation contract or board order.
             300          (2) Each candidate may make application to any federal or state governmental authority
             301      for any assistance that may be available from that authority to alleviate the impacts to the
             302      candidate. To the extent that the impact was attributable to the project or to the facilities
             303      providing additional project capacity, any assistance received from that authority shall be
             304      credited to the alleviation obligation with respect to the project or the facilities providing
             305      additional project capacity, as the case may be, in proportion to the percentage of impact
             306      attributable to the project or facilities providing additional project capacity, but in no event



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House Committee Amendments 2-5-2003 bh/po
             307
     shall the candidate realize less revenues than would have been realized without receipt of any
             308      assistance.
             309          (3) With respect to school districts the fee in lieu of ad valorem property tax for the
             310      state minimum school program required to be paid by the project entity or other public agency
             311      under Subsection 11-13-302 (2)[(a)] (b)(i) shall be treated as a separate fee and shall not affect
             312      any credits for alleviation payments received by the school districts under Subsection
             313      11-13-302 (2)[(a)] (b)(i), or Sections 11-13-305 and 11-13-306 .
             313a           h Section 6. Retrospective operation.
             313b          THE AMENDMENTS IN THIS ACT TO SECTIONS 11-13-302, 11-13-310, AND 11-13-311 HAVE
             313c      RETROSPECTIVE OPERATION TO JANUARY 1, 2003. h





Legislative Review Note
    as of 12-2-02 11:17 AM


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

Office of Legislative Research and General Counsel

Interim Committee Note
    as of 12-12-02 2:10 PM

The Public Utilities and Technology Interim Committee recommended this bill.


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