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H.B. 125

             1     

IMPACT FEE AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kraig Powell

             5     
Senate Sponsor: Daniel R. Liljenquist

             6     
             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.
             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             35      authorized by Subsection 11-36-102 (12) is repealed by July 1, 1995.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 sent to:
             68          (I) each county in whose unincorporated area and each municipality in whose
             69      boundaries is located the land on which the proposed facilities will be located;
             70          (II) each affected entity;
             71          (III) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             72          (IV) the association of governments, established pursuant to an interlocal agreement
             73      under [Title 11,] Chapter 13, Interlocal Cooperation Act, in which the facilities are proposed to
             74      be located;
             75          (V) the state planning coordinator appointed under Section 63J-4-202 ;
             76          (VI) the registered agent of the Utah Home Builders Association;
             77          (VII) the registered agent of the Utah Association of Realtors; [and]
             78          (VIII) the registered agent of the Utah Chapter of the Associated General Contractors
             79      of America; [and]
             80          (IX) the registered agent of the Utah League of Women Voters;
             81          (X) the Utah office of the American Association of Retired Persons; and
             82          (XI) the registered agent of the Utah Taxpayers Association; and
             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, send written notice:
             102          (I) to:
             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) stating the local political subdivision's intent to prepare or amend a capital facilities
             111      plan; and
             112          (III) inviting each of the notice recipients to participate in the preparation of 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)(ii)(A),
             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.
             122          (ii) With respect to the public notice required under Subsection (2)(e)(i)(B)(I):
             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          (iii) Nothing contained in this Subsection (2)(e) or in the subsections 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) to:
             162          (I) the registered agent of the Utah Home Builders Association;
             163          (II) the registered agent of the Utah Association of Realtors; [and]
             164          (III) the registered agent of the Utah Chapter of the Associated General Contractors of
             165      America;
             166          (IV) the registered agent of the Utah League of Women Voters;
             167          (V) the Utah office of the American Association of Retired Persons; and
             168          (VI) the registered agent of the Utah Taxpayers Association;
             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) to:
             200          (a) each public library within the local political subdivision;
             201          (b) the registered agent of the Utah Home Builders Association;
             202          (c) the registered agent of the Utah Association of Realtors; [and]
             203          (d) the registered agent of the Utah Chapter of the Associated General Contractors of
             204      America[.];
             205          (e) the registered agent of the Utah League of Women Voters;
             206          (f) the Utah office of the American Association of Retired Persons; and
             207          (g) the registered agent of the Utah Taxpayers Association.
             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; and
             239          (B) mail a written copy of the impact fee enactment to:
             240          (I) the registered agent of the Utah Home Builders Association;
             241          (II) the registered agent of the Utah Association of Realtors; [and]
             242          (III) the registered agent of the Utah Chapter of the Associated General Contractors of
             243      America; [and]
             244          (IV) the registered agent of the Utah League of Women Voters;


             245          (V) the Utah office of the American Association of Retired Persons; and
             246          (VI) the registered agent of the Utah Taxpayers Association; and
             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


Office of Legislative Research and General Counsel


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