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H.B. 125
This document includes House Floor Amendments incorporated into the bill on Fri, Feb 20, 2009 at 12:04 PM by ddonat. --> This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 26, 2009 at 4:18 PM by smaeser. --> 1
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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to impact fees.
10 Highlighted Provisions:
11 This bill:
12 . adds to the list of required recipients of notice relating to impact fees and capital
13 facilities plans H. [
13a . modifies how that notice is to be given. .H
14 Monies Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 11-36-201, as last amended by Laws of Utah 2008, Chapters 70, 360, and 382
21 11-36-202, as last amended by Laws of Utah 2008, Chapter 70
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 11-36-201 is amended to read:
25 11-36-201. Impact fees -- Analysis -- Capital facilities plan -- Notice of plan --
26 Summary -- Exemptions.
27 (1) (a) Each local political subdivision and private entity shall comply with the
28 requirements of this chapter before establishing or modifying any impact fee.
29 (b) A local political subdivision may not:
30 (i) establish any new impact fees that are not authorized by this chapter; or
31 (ii) impose or charge any other fees as a condition of development approval unless
32 those fees are a reasonable charge for the service provided.
33 (c) Notwithstanding any other requirements of this chapter, each local political
34 subdivision shall ensure that each existing impact fee that is charged for any public facility not
35 authorized by Subsection 11-36-102 (12) is repealed by July 1, 1995.
36 (d) (i) Existing impact fees that a local political subdivision charges for public facilities
37 authorized in Subsection 11-36-102 (12) need not comply with the requirements of this chapter
38 until July 1, 1997.
39 (ii) By July 1, 1997, each local political subdivision shall:
40 (A) review any impact fees in existence as of the effective date of this act, and prepare
41 and approve the analysis required by this section for each of those impact fees; and
42 (B) ensure that the impact fees comply with the requirements of this chapter.
43 (2) (a) Before imposing impact fees, each local political subdivision and private entity
44 shall, except as provided in Subsection (2)(f), prepare a capital facilities plan.
45 (b) (i) As used in this Subsection (2)(b):
46 (A) (I) "Affected entity" means each county, municipality, local district under Title
47 17B, Limited Purpose Local Government Entities - Local Districts, special service district
48 under Title 17D, Chapter 1, Special Service District Act, school district, interlocal cooperation
49 entity established under Chapter 13, Interlocal Cooperation Act, and specified public utility:
50 (Aa) whose services or facilities are likely to require expansion or significant
51 modification because of the facilities proposed in the proposed capital facilities plan; or
52 (Bb) that has filed with the local political subdivision or private entity a copy of the
53 general or long-range plan of the county, municipality, local district, special service district,
54 school district, interlocal cooperation entity, or specified public utility.
55 (II) "Affected entity" does not include the local political subdivision or private entity
56 that is required under this Subsection (2) to provide notice.
57 (B) "Specified public utility" means an electrical corporation, gas corporation, or
58 telephone corporation, as those terms are defined in Section 54-2-1 .
59 (ii) Before preparing or amending a capital facilities plan, each local political
60 subdivision and each private entity shall provide written notice, as provided in this Subsection
61 (2)(b), of its intent to prepare or amend a capital facilities plan.
62 (iii) Each notice under Subsection (2)(b)(ii) shall:
63 (A) indicate that the local political subdivision or private entity intends to prepare or
64 amend a capital facilities plan;
65 (B) describe or provide a map of the geographic area where the proposed capital
66 facilities will be located;
67 (C) be H. [
68 (I) H. sent to .H each county in whose unincorporated area and each municipality in
68a whose
69 boundaries is located the land on which the proposed facilities will be located;
70 (II) H. sent to .H each affected entity;
71 (III) H. sent to .H the Automated Geographic Reference Center created in
71a Section 63F-1-506 ;
72 (IV) H. sent to .H the association of governments, established pursuant to an interlocal
72a agreement
73 under [
74 be located; S. and .S
74a H. (V)(Aa) placed on the Utah Public Notice Website created under Section 63F-1- 701,
74b if the local political subdivision:
74c (Ii) is required under Subsection 52-4-203(3) to use that website to provide public notice
74d of a meeting; or
74e (IIii) voluntarily chooses to place notice on that website despite not being required to do
74f so under Subsection (2)(b)(iii)(C)(V)(Aa)(Ii); or
74g (Bb) if the local political subdivision does not provide notice on the Utah Public Notice
74h Website, or in the case of a private entity, sent to:
75 [
76 H. [
77 H. [
78 H. [
78a Contractors
79 of America; [
80 H. [
81 (X) ] (Vv) .H the Utah office of H. [
81a AARP .H ; and
82 H. [
82a S. [
82b (Aa) located within the boundary of the local political subdivision or within the
82c jurisdiction of the private entity, as the case may be; and
82d (Bb) larger than five acres in size; and .H
83 (D) with respect to the notice to an affected entity, invite the affected entity to provide
84 information for the local political subdivision or private entity to consider in the process of
85 preparing, adopting, and implementing or amending a capital facilities plan concerning:
86 (I) impacts that the facilities proposed in the capital facilities plan may have on the
87 affected entity; and
88 (II) facilities or uses of land that the affected entity is planning or considering that may
89 conflict with the facilities proposed in the capital facilities plan.
90 (c) The plan shall identify:
91 (i) demands placed upon existing public facilities by new development activity; and
92 (ii) the proposed means by which the local political subdivision will meet those
93 demands.
94 (d) A municipality or county need not prepare a separate capital facilities plan if the
95 general plan required by Section 10-9a-401 or 17-27a-401 , respectively, contains the elements
96 required by Subsection (2)(c).
97 (e) (i) If a local political subdivision chooses to prepare an independent capital
98 facilities plan rather than include a capital facilities element in the general plan, the local
99 political subdivision shall:
100 (A) before preparing or contracting to prepare or amending or contracting to amend the
101 independent capital facilities plan, H. [
101a Subsection (e)(ii) .H :
102 H. [
103 (Aa) the registered agent of the Utah Home Builders Association;
104 (Bb) the registered agent of the Utah Association of Realtors; [and]
105 (Cc) the registered agent of the Utah Chapter of the Associated General Contractors of
106 America;
107 (Dd) the registered agent of the Utah League of Women Voters;
108 (Ee) the Utah office of the American Association of Retired Persons; and
109 (Ff) the registered agent of the Utah Taxpayers Association;
110 (II)
110a facilities
111 plan; and
112 H. [
112a or
113 amendment to the capital facilities plan; and
114 (B) before adopting or amending the capital facilities plan:
115 (I) give public notice of the plan or amendment according to Subsection (2)(e) H. [
116 (B), or (C), as the case may be, at least 14 days before the date of the public hearing;
117 (II) make a copy of the plan or amendment, together with a summary designed to be
118 understood by a lay person, available to the public;
119 (III) place a copy of the plan or amendment and summary in each public library within
120 the local political subdivision; and
121 (IV) hold a public hearing to hear public comment on the plan or amendment.
121a H. (ii) The notice required under Subsection (2)(e)(i)(A) shall be:
121b (A) S. [
121c1 63F-1- 701, if the
121c local political subdivision:
121d S. [
121e1 provide public
121e notice of a meeting; or
121f S. [
121g1 required to do
121g so under Subsection (2)(e)(ii)(A)(I); or
121h S. [
121i1 Public Notice
121i Website under Subsection (2)(e)(ii)(A)(I), sent to:
121j S. [
121k Homebuilders Association;
121l S. [
121m S. [
121n1 Contractors of
121n America;
121o S. [
121p S. [
121q [
121r (I) located within the boundary of the local political subdivision; and
121s (II) larger than five acres in size.
122 [
123 (A) each municipality shall comply with the notice and hearing requirements of, and,
124 except as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections
125 10-9a-205 and 10-9a-801 and Subsection 10-9a-502 (2);
126 (B) each county shall comply with the notice and hearing requirements of, and, except
127 as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 17-27a-205 and
128 17-27a-801 and Subsection 17-27a-502 (2); and
129 (C) each local district, special service district, and private entity shall comply with the
130 notice and hearing requirements of, and receive the protections of, Section 17B-1-111 .
131 H. [
131a referenced in
132 Subsections (2)(e)(ii)(A) and (B) may be construed to require involvement by a planning
133 commission in the capital facilities planning process.
134 (f) (i) A local political subdivision with a population or serving a population of less
135 than 5,000 as of the last federal census need not comply with the capital facilities plan
136 requirements of this part, but shall ensure that:
137 (A) the impact fees that the local political subdivision imposes are based upon a
138 reasonable plan; and
139 (B) each applicable notice required by this chapter is given.
140 (ii) Subsection (2)(f)(i) does not apply to private entities.
141 (3) In preparing the plan, each local political subdivision shall generally consider all
142 revenue sources, including impact fees, to finance the impacts on system improvements.
143 (4) A local political subdivision or private entity may only impose impact fees on
144 development activities when its plan for financing system improvements establishes that
145 impact fees are necessary to achieve an equitable allocation to the costs borne in the past and to
146 be borne in the future, in comparison to the benefits already received and yet to be received.
147 (5) (a) Subject to the notice requirement of Subsection (5)(b), each local political
148 subdivision and private entity intending to impose an impact fee shall prepare a written analysis
149 of each impact fee that:
150 (i) identifies the impact on system improvements required by the development activity;
151 (ii) demonstrates how those impacts on system improvements are reasonably related to
152 the development activity;
153 (iii) estimates the proportionate share of the costs of impacts on system improvements
154 that are reasonably related to the new development activity; and
155 (iv) based upon those factors and the requirements of this chapter, identifies how the
156 impact fee was calculated.
157 (b) Before preparing or contracting to prepare the written analysis required under
158 Subsection (5)(a), each local political subdivision or private entity shall provide:
159 (i) public notice; and
160 (ii) written notice:
161 (A) H. (I) S. [
161a1 63F-1-1701, if the
161a local political:
161b S. [
161c1 provide public notice
161c of a meeting; or
161d S. [
161e1 despite not being
161e required to do so under Subsection (5)(b)(ii)(A)(I)(Aa); or
161f S. [
161g1 Public Notice
161g Website under Subsection (5)(b)(ii)(A)(I)(Aa), or in the case of a private entity, .H to:
162 H. [
162a Association;
163 H. [
163a Realtors; [
164 H. [
164a1 Associated General
164a Contractors of
165 America;
166 H. [
167 (V)
167a1
167a AARP .H ; and
168 H. [
168a1
S. [
H. and
] .S
168a
(II) to each owner of an undeveloped parcel of property that is:
168b
(Aa) located within the boundary of the local political subdivision or within the
168c
jurisdiction of the private entity, as the case may be; and
168d
(Bb) larger than five acres in size; .H
169
(B) indicating the local political subdivision or private entity's intent to prepare or
170
contract to prepare a written analysis of an impact fee; and
171
(C) inviting each notice recipient to participate in the preparation of the written
172
analysis.
173
(c) In analyzing whether or not the proportionate share of the costs of public facilities
174
are reasonably related to the new development activity, the local political subdivision or private
175
entity, as the case may be, shall identify, if applicable:
176
(i) the cost of existing public facilities;
177
(ii) the manner of financing existing public facilities, such as user charges, special
178
assessments, bonded indebtedness, general taxes, or federal grants;
179
(iii) the relative extent to which the newly developed properties and other properties
180
have already contributed to the cost of existing public facilities, by such means as user charges,
181
special assessments, or payment from the proceeds of general taxes;
182
(iv) the relative extent to which the newly developed properties and other properties
183 will contribute to the cost of existing public facilities in the future;
184 (v) the extent to which the newly developed properties are entitled to a credit because
185 the local political subdivision or private entity, as the case may be, requires its developers or
186 owners, by contractual arrangement or otherwise, to provide common facilities, inside or
187 outside the proposed development, that have been provided by the local political subdivision or
188 private entity, respectively, and financed through general taxation or other means, apart from
189 user charges, in other parts of the service area;
190 (vi) extraordinary costs, if any, in servicing the newly developed properties; and
191 (vii) the time-price differential inherent in fair comparisons of amounts paid at
192 different times.
193 (d) Each local political subdivision and private entity that prepares a written analysis
194 under this Subsection (5) on or after July 1, 2000 shall also prepare a summary of the written
195 analysis, designed to be understood by a lay person.
196 (6) Each local political subdivision that adopts an impact fee enactment under Section
197 11-36-202 on or after July 1, 2000 shall, at least 14 days before adopting the enactment, submit
198 a copy of the written analysis required by Subsection (5)(a) and a copy of the summary
199 required by Subsection (5)(d) H. [
200 (a) H. to .H each public library within the local political subdivision; H. and .H
201 (b) H. (i) on the Utah Public Notice Website created in Section 63F-1-701, if the local
201a political subdivision:
201b (A) is required under Subsection 52-4-203(2) to use that website to provide public notice
201c of a meeting; or
201d (B) voluntarily chooses to place a copy of the written analysis and a copy of the
201e summary on that website despite not being required to do so under Subsection (6)(b)(i)(A); or
201f (ii) if the local political subdivision does not place a copy of the written analysis and a
201g copy of the summary on the Utah Public Notice Website under Subsection (6)(b)(i), to:
201h (A) .H the registered agent of the Utah Home Builders Association;
202 H. [
203 H. [
203a Contractors of
204 America[
205 H. [
206 (f)
206a AARP .H ; and
207 H. [
207a1 [
207a (c) to each owner of an undeveloped parcel of property that is:
207b (i) located within the boundary of the local political subdivision; and
207c (ii) larger than five acres in size. .H
208 (7) Nothing in this chapter may be construed to repeal or otherwise eliminate any
209 impact fee in effect on the effective date of this chapter that is pledged as a source of revenues
210 to pay bonded indebtedness that was incurred before the effective date of this chapter.
211 Section 2. Section 11-36-202 is amended to read:
212 11-36-202. Impact fees -- Enactment -- Required provisions -- Effective date.
213 (1) (a) Each local political subdivision and private entity wishing to impose impact fees
214 shall pass an impact fee enactment.
215 (b) The impact fee imposed by that enactment may not exceed the highest fee justified
216 by the impact fee analysis performed pursuant to Section 11-36-201 .
217 (c) In calculating the impact fee, a local political subdivision or private entity may
218 include:
219 (i) the construction contract price;
220 (ii) the cost of acquiring land, improvements, materials, and fixtures;
221 (iii) the cost for planning, surveying, and engineering fees for services provided for and
222 directly related to the construction of the system improvements; and
223 (iv) debt service charges, if the political subdivision might use impact fees as a revenue
224 stream to pay the principal and interest on bonds, notes, or other obligations issued to finance
225 the costs of the system improvements.
226 (d) In calculating an impact fee, a local political subdivision may not include an
227 expense for overhead unless the expense is calculated pursuant to a methodology that is
228 consistent with:
229 (i) generally accepted cost accounting practices; and
230 (ii) the methodological standards set forth by the federal Office of Management and
231 Budget for federal grant reimbursement.
232 (e) In calculating an impact fee, each local political subdivision shall base amounts
233 calculated under Subsection (1)(c) on realistic estimates, and the assumptions underlying those
234 estimates shall be disclosed in the impact fee analysis.
235 (f) Each local political subdivision and private entity that intends to enact an impact fee
236 enactment shall:
237 (i) at least 14 days before the date of the public hearing:
238 (A) make a copy of the impact fee enactment available to the public; H. S. [
239 (B) H. (I) place a copy of the impact fee enactment on the Utah Public Notice Website
239a created in Section 63F-1-701, if the local political subdivision:
239b (Aa) is required under Subsection 52-4-203(3) to use that website to provide public
239c notice of a meeting; or
239d (Bb) voluntarily chooses to place a copy of the impact fee enactment on that website
239e despite not being required to do so under Subsection (1)(f)(i)(B)(I)(Aa); or
239f (II) if the local political subdivision does not place a copy of the impact fee enactment on
239g the Utah Public Notice Website under Subsection (1)(f)(i)(B)(I), or in the case of a private
239h entity, .H mail a written copy of the impact fee enactment to:
240 H. [
241 H. [
242 H. [
242a Contractors of
243 America; [
244 H. [
245 (V) ] (Dd) .H the Utah office of H. [
245a AARP .H ; and
246 S. [
246a H. (C) mail a written copy of the impact fee enactment to each owner of an
246b undeveloped parcel of property that is:
246c (I) located within the boundary of the local political subdivision or within the
246d jurisdiction of the private entity, as the case may be; and
246e (II) larger than five acres in size; and .H
247 (ii) (A) for a municipality, comply with the notice and hearing requirements of, and,
248 except as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections
249 10-9a-205 and 10-9a-801 ;
250 (B) for a county, comply with the notice and hearing requirements of, and, except as
251 provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 17-27a-205 and
252 17-27a-801 ; and
253 (C) for a local district or special service district, comply with the notice and hearing
254 requirements of, and receive the protections of, Section 17B-1-111 .
255 (g) Nothing contained in Subsection (1)(f) may be construed to require involvement by
256 a planning commission in the impact fee enactment process.
257 (2) The local political subdivision or private entity shall ensure that the impact fee
258 enactment:
259 (a) contains:
260 (i) a provision establishing one or more service areas within which the local political
261 subdivision or private entity calculates and imposes impact fees for various land use categories;
262 (ii) (A) a schedule of impact fees for each type of development activity that specifies
263 the amount of the impact fee to be imposed for each type of system improvement; or
264 (B) the formula that the local political subdivision or private entity, as the case may be,
265 will use to calculate each impact fee;
266 (iii) a provision authorizing the local political subdivision or private entity, as the case
267 may be, to adjust the standard impact fee at the time the fee is charged to:
268 (A) respond to unusual circumstances in specific cases; and
269 (B) ensure that the impact fees are imposed fairly; and
270 (iv) a provision governing calculation of the amount of the impact fee to be imposed on
271 a particular development that permits adjustment of the amount of the fee based upon studies
272 and data submitted by the developer; and
273 (b) allows a developer to receive a credit against or proportionate reimbursement of an
274 impact fee if:
275 (i) the developer is required by the local political subdivision, as a condition of
276 development activity approval, to:
277 (A) dedicate land for a system improvement;
278 (B) improve a system improvement; or
279 (C) provide new construction for a system improvement;
280 (ii) the system improvement is included in the impact fee analysis; and
281 (iii) the land, improvement, or new construction provides a system improvement that
282 exceeds the requirements for the project.
283 (3) A local political subdivision or private entity may include a provision in an impact
284 fee enactment that:
285 (a) exempts low income housing and other development activities with broad public
286 purposes from impact fees and establishes one or more sources of funds other than impact fees
287 to pay for that development activity;
288 (b) imposes an impact fee for public facility costs previously incurred by a local
289 political subdivision or private entity, as the case may be, to the extent that new growth and
290 development will be served by the previously constructed improvement; and
291 (c) allows a credit against impact fees for any dedication of land for, improvement to,
292 or new construction of, any system improvements provided by the developer if the facilities:
293 (i) are identified in the capital facilities plan; and
294 (ii) are required by the local political subdivision as a condition of approving the
295 development activity.
296 (4) Except as provided in Subsection (3)(b), the local political subdivision may not
297 impose an impact fee to cure deficiencies in public facilities serving existing development.
298 (5) Notwithstanding the requirements and prohibitions of this chapter, a local political
299 subdivision may impose and assess an impact fee for environmental mitigation when:
300 (a) the local political subdivision has formally agreed to fund a Habitat Conservation
301 Plan to resolve conflicts with the Endangered Species Act of 1973, 16 U.S.C. Sec 1531, et seq.
302 or other state or federal environmental law or regulation;
303 (b) the impact fee bears a reasonable relationship to the environmental mitigation
304 required by the Habitat Conservation Plan; and
305 (c) the legislative body of the local political subdivision adopts an ordinance or
306 resolution:
307 (i) declaring that an impact fee is required to finance the Habitat Conservation Plan;
308 (ii) establishing periodic sunset dates for the impact fee; and
309 (iii) requiring the legislative body to:
310 (A) review the impact fee on those sunset dates;
311 (B) determine whether or not the impact fee is still required to finance the Habitat
312 Conservation Plan; and
313 (C) affirmatively reauthorize the impact fee if the legislative body finds that the impact
314 fee must remain in effect.
315 (6) Each political subdivision shall ensure that any existing impact fee for
316 environmental mitigation meets the requirements of Subsection (5) by July 1, 1995.
317 (7) Notwithstanding any other provision of this chapter:
318 (a) a municipality imposing impact fees to fund fire trucks as of the effective date of
319 this act may impose impact fees for fire trucks until July 1, 1997; and
320 (b) an impact fee to pay for a public safety facility that is a fire suppression vehicle
321 may not be imposed with respect to land that has a zoning designation other than commercial.
322 (8) Notwithstanding any other provision of this chapter, a local political subdivision
323 may impose and collect impact fees on behalf of a school district if authorized by Section
324 53A-20-100.5 .
325 (9) An impact fee enactment may not take effect until 90 days after it is enacted.
Legislative Review Note
as of 1-8-09 8:55 AM