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First Substitute S.B. 84


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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Mar 6, 2009 at 11:40 AM by smaeser. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 11, 2009 at 10:45 AM by ddonat. --> This document includes Senate 2nd Reading Floor Amendments (CORRECTED) incorporated into the bill on Thu, Mar 12, 2009 at 4:45 PM by rday. -->
Senator Gregory S. Bell proposes the following substitute bill:


             1     
IMPACT FEES REVISIONS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gregory S. Bell

             5     
House Sponsor: Kraig Powell

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to impact fees.
             10      Highlighted Provisions:
             11          This bill:
             12      S. [ . modifies the definition of "development approval" for public entities that may
             13      develop without written authorization;
] .S

             14          .    modifies the definition of "public safety facility";
             15          .    repeals obsolete language;
             16          .    shortens from 14 to ten days the period of time before a public hearing date that a
             17      notice of a capital facilities plan or amendment is required to be given;
             18          .    shortens from 14 to ten days the period of time before adoption of an impact fee
             19      enactment that a local political subdivision is required to submit a copy of the
             20      written impact fee analysis and applies that time period to a new requirement to
             21      obtain a written certification;
             22          .    modifies impact fee reporting requirements;
             23          .    requires a local political subdivision to obtain a written certification from the person
             24      or entity that prepares the written impact fee analysis and specifies the content of
             25      that certification;



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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
             26
         .    shortens from 14 to ten days the period of time before a public hearing that a local
             27      political subdivision and private entity is required to make a copy of the impact fee
             28      enactment available and to mail a copy of the enactment; and
             29          .    modifies a provision restricting the imposition of an impact fee to pay for a public
             30      safety facility.
             31      Monies Appropriated in this Bill:
             32          None
             33      Other Special Clauses:
             34      S. [ None ] This bill coordinates with H.B. 259, Changes to Impact Fees, by technically
             34a      superseding and merging amendments.
             34b          This bill coordinates with H.B. 274, Local Government Fees and Charges, by
             34c      technically superseding and merging amendments. .S
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          10-5-129, as last amended by Laws of Utah 2006, Chapter 257
             38          10-6-150, as last amended by Laws of Utah 2006, Chapter 257
             39          11-36-102, as last amended by Laws of Utah 2008, Chapters 70 and 360
             40          11-36-201, as last amended by Laws of Utah 2008, Chapters 70, 360, and 382
             41          11-36-202, as last amended by Laws of Utah 2008, Chapter 70
             42          11-36-301, as enacted by Laws of Utah 1995, First Special Session, Chapter 11
             43          17-36-37, as last amended by Laws of Utah 2006, Chapter 257
             44          17B-1-639, as renumbered and amended by Laws of Utah 2007, Chapter 329
             45     

             46      Be it enacted by the Legislature of the state of Utah:
             47          Section 1. Section 10-5-129 is amended to read:
             48           10-5-129. Annual financial report.
             49          (1) [(a)] Within 180 days after the close of each fiscal year the town clerk or other
             50      delegated person shall present to the council an annual financial report.
             51          [(b) Each annual financial report shall identify impact fee funds by the year in which
             52      they were received, the project from which the funds were collected, the capital projects for
             53      which the funds are budgeted, and the projected schedule for expenditure.]
             54          (2) The requirement under Subsection (1)[(a)] to present an annual financial report may
             55      be satisfied by an audit report or annual financial report of an independent auditor.
             56          Section 2. Section 10-6-150 is amended to read:



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          10-6-150. Annual financial reports -- Independent audit reports.
             58          (1) [(a)] Within 180 days after the close of each fiscal period or, for a city that has
             59      adopted a fiscal period that is a biennial period, within 180 days after both the mid-point and
             60      the close of the fiscal period, the city recorder or other delegated person shall present to the
             61      governing body an annual financial report prepared in conformity with generally accepted
             62      accounting principles, as prescribed in the Uniform Accounting Manual for Utah Cities.
             63          [(b) Each annual financial report shall identify impact fee funds by the year in which
             64      they were received, the project from which the funds were collected, the capital projects for
             65      which the funds are budgeted, and the projected schedule for expenditure.]
             66          (2) (a) The requirement under Subsection (1)[(a)] to present an annual financial report
             67      may be satisfied by presentation of the audit report furnished by the independent auditor, if the
             68      financial statements included are appropriately prepared and reviewed with the governing body.
             69          (b) Notwithstanding the acceptability of the audit report furnished by the independent
             70      auditor in substitution for financial statements prepared by an officer of the city, the governing
             71      body has the responsibility for those financial statements.
             72          (c) The independent auditor has the responsibility of reporting whether the governing
             73      body's financial statements are prepared in conformity with generally accepted accounting
             74      principles.
             75          (3) Copies of the annual financial report or the audit report furnished by the
             76      independent auditor shall be filed with the state auditor and shall be filed as a public document
             77      in the office of the city recorder.
             78          Section 3. Section 11-36-102 is amended to read:
             79           11-36-102. Definitions.
             80          As used in this chapter:
             81          (1) "Building permit fee" means the fees charged to enforce the uniform codes adopted
             82      pursuant to Title 58, Chapter 56, Utah Uniform Building Standards Act, that are not greater
             83      than the fees indicated in the appendix to the International Building Code.
             84          (2) "Capital facilities plan" means the plan required by Section 11-36-201 .
             85          (3) "Development activity" means any construction or expansion of a building,
             86      structure, or use, any change in use of a building or structure, or any changes in the use of land
             87      that creates additional demand and need for public facilities.



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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
             88
         (4) "Development approval" means S. [ :
             89          (a) except as provided in Subsection (4)(b),
] .S
any written authorization from a local
             90      political subdivision that authorizes the commencement of development activity S. [ [ ] . [ ] ] [ ; or
             91          (b) development activity, for a public entity that may develop without written
             92      authorization from a local political subdivision.
] .S

             93          (5) "Enactment" means:
             94          (a) a municipal ordinance, for a municipality;
             95          (b) a county ordinance, for a county; and
             96          (c) a governing board resolution, for a local district, special service district, or private
             97      entity.
             98          (6) "Hookup fees" means reasonable fees, not in excess of the approximate average
             99      costs to the political subdivision, for services provided for and directly attributable to the
             100      connection to utility services, including gas, water, sewer, power, or other municipal, county,
             101      local district, or special service district utility services.
             102          (7) (a) "Impact fee" means a payment of money imposed upon development activity as
             103      a condition of development approval.
             104          (b) "Impact fee" does not mean a tax, a special assessment, a building permit fee, a
             105      hookup fee, a fee for project improvements, or other reasonable permit or application fee.
             106          (8) (a) "Local political subdivision" means a county, a municipality, a local district
             107      under Title 17B, Limited Purpose Local Government Entities - Local Districts, or a special
             108      service district under Title 17D, Chapter 1, Special Service District Act.
             109          (b) "Local political subdivision" does not mean a school district, whose impact fee
             110      activity is governed by Section 53A-20-100.5 .
             111          (9) "Private entity" means an entity with private ownership that provides culinary water
             112      that is required to be used as a condition of development.
             113          (10) (a) "Project improvements" means site improvements and facilities that are:
             114          (i) planned and designed to provide service for development resulting from a
             115      development activity; and
             116          (ii) necessary for the use and convenience of the occupants or users of development
             117      resulting from a development activity.
             118          (b) "Project improvements" does not mean system improvements.



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             119
         (11) "Proportionate share" means the cost of public facility improvements that are
             120      roughly proportionate and reasonably related to the service demands and needs of any
             121      development activity.
             122          (12) "Public facilities" means only the following capital facilities that have a life
             123      expectancy of ten or more years and are owned or operated by or on behalf of a local political
             124      subdivision or private entity:
             125          (a) water rights and water supply, treatment, and distribution facilities;
             126          (b) wastewater collection and treatment facilities;
             127          (c) storm water, drainage, and flood control facilities;
             128          (d) municipal power facilities;
             129          (e) roadway facilities;
             130          (f) parks, recreation facilities, open space, and trails; and
             131          (g) public safety facilities.
             132          (13) (a) "Public safety facility" means:
             133          (i) a building constructed or leased to house police, fire, or other public safety entities;
             134      or
             135          (ii) a fire suppression vehicle [with a ladder reach of at least 75 feet,] costing in excess
             136      of [$1,250,000, that is necessary for fire suppression in commercial areas with one or more
             137      buildings at least five stories high] $500,000.
             138          (b) "Public safety facility" does not mean a jail, prison, or other place of involuntary
             139      incarceration.
             140          (14) (a) "Roadway facilities" means streets or roads that have been designated on an
             141      officially adopted subdivision plat, roadway plan, or general plan of a political subdivision,
             142      together with all necessary appurtenances.
             143          (b) "Roadway facilities" includes associated improvements to federal or state roadways
             144      only when the associated improvements:
             145          (i) are necessitated by the new development; and
             146          (ii) are not funded by the state or federal government.
             147          (c) "Roadway facilities" does not mean federal or state roadways.
             148          (15) (a) "Service area" means a geographic area designated by a local political
             149      subdivision on the basis of sound planning or engineering principles in which a defined set of



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             150
     public facilities provide service within the area.
             151          (b) "Service area" may include the entire local political subdivision.
             152          (16) (a) "System improvements" means:
             153          (i) existing public facilities that are designed to provide services to service areas within
             154      the community at large; and
             155          (ii) future public facilities identified in a capital facilities plan that are intended to
             156      provide services to service areas within the community at large.
             157          (b) "System improvements" does not mean project improvements.
             158          Section 4. Section 11-36-201 is amended to read:
             159           11-36-201. Impact fees -- Analysis -- Capital facilities plan -- Notice of plan --
             160      Summary -- Exemptions.
             161          (1) (a) Each local political subdivision and private entity shall comply with the
             162      requirements of this chapter before establishing or modifying any impact fee.
             163          (b) A local political subdivision may not:
             164          (i) establish any new impact fees that are not authorized by this chapter; or
             165          (ii) impose or charge any other fees as a condition of development approval unless
             166      those fees are a reasonable charge for the service provided.
             167          (c) [Notwithstanding any other requirements of this chapter, each] Each local political
             168      subdivision shall [ensure that each existing impact fee that is charged for any public facility not
             169      authorized by Subsection 11-36-102 (12) is repealed by July 1, 1995. (d) (i) Existing impact
             170      fees that a local political subdivision charges for public facilities authorized in Subsection
             171      11-36-102 (12) need not comply with the requirements of this chapter until July 1, 1997. (ii) By
             172      July 1, 1997, each local political subdivision shall: (A) review any impact fees in existence as
             173      of the effective date of this act, and prepare and approve the analysis required by this section
             174      for each of those impact fees; and (B)] ensure that the impact fees comply with the
             175      requirements of this chapter.
             176          (2) (a) Before imposing impact fees, each local political subdivision and private entity
             177      shall, except as provided in Subsection (2)(f), prepare a capital facilities plan.
             178          (b) (i) As used in this Subsection (2)(b):
             179          (A) (I) "Affected entity" means each county, municipality, local district under Title
             180      17B, Limited Purpose Local Government Entities - Local Districts, special service district



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             181
     under Title 17D, Chapter 1, Special Service District Act, school district, interlocal cooperation
             182      entity established under Chapter 13, Interlocal Cooperation Act, and specified public utility:
             183          (Aa) whose services or facilities are likely to require expansion or significant
             184      modification because of the facilities proposed in the proposed capital facilities plan; or
             185          (Bb) that has filed with the local political subdivision or private entity a copy of the
             186      general or long-range plan of the county, municipality, local district, special service district,
             187      school district, interlocal cooperation entity, or specified public utility.
             188          (II) "Affected entity" does not include the local political subdivision or private entity
             189      that is required under this Subsection (2) to provide notice.
             190          (B) "Specified public utility" means an electrical corporation, gas corporation, or
             191      telephone corporation, as those terms are defined in Section 54-2-1 .
             192          (ii) Before preparing or amending a capital facilities plan, each local political
             193      subdivision and each private entity shall provide written notice, as provided in this Subsection
             194      (2)(b), of its intent to prepare or amend a capital facilities plan.
             195          (iii) Each notice under Subsection (2)(b)(ii) shall:
             196          (A) indicate that the local political subdivision or private entity intends to prepare or
             197      amend a capital facilities plan;
             198          (B) describe or provide a map of the geographic area where the proposed capital
             199      facilities will be located;
             200          (C) be sent to:
             201          (I) each county in whose unincorporated area and each municipality in whose
             202      boundaries is located the land on which the proposed facilities will be located;
             203          (II) each affected entity;
             204          (III) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             205          (IV) the association of governments, established pursuant to an interlocal agreement
             206      under [Title 11,] Chapter 13, Interlocal Cooperation Act, in which the facilities are proposed to
             207      be located;
             208          (V) the state planning coordinator appointed under Section 63J-4-202 ;
             209          (VI) the registered agent of the Utah Home Builders Association;
             210          (VII) the registered agent of the Utah Association of Realtors; and
             211          (VIII) the registered agent of the Utah Chapter of the Associated General Contractors



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             212
     of America; and
             213          (D) with respect to the notice to an affected entity, invite the affected entity to provide
             214      information for the local political subdivision or private entity to consider in the process of
             215      preparing, adopting, and implementing or amending a capital facilities plan concerning:
             216          (I) impacts that the facilities proposed in the capital facilities plan may have on the
             217      affected entity; and
             218          (II) facilities or uses of land that the affected entity is planning or considering that may
             219      conflict with the facilities proposed in the capital facilities plan.
             220          (c) The plan shall identify:
             221          (i) demands placed upon existing public facilities by new development activity; and
             222          (ii) the proposed means by which the local political subdivision will meet those
             223      demands.
             224          (d) A municipality or county need not prepare a separate capital facilities plan if the
             225      general plan required by Section 10-9a-401 or 17-27a-401 , respectively, contains the elements
             226      required by Subsection (2)(c).
             227          (e) (i) If a local political subdivision chooses to prepare an independent capital
             228      facilities plan rather than include a capital facilities element in the general plan, the local
             229      political subdivision shall:
             230          (A) before preparing or contracting to prepare or amending or contracting to amend the
             231      independent capital facilities plan, send written notice:
             232          (I) to:
             233          (Aa) the registered agent of the Utah Home Builders Association;
             234          (Bb) the registered agent of the Utah Association of Realtors; and
             235          (Cc) the registered agent of the Utah Chapter of the Associated General Contractors of
             236      America;
             237          (II) stating the local political subdivision's intent to prepare or amend a capital facilities
             238      plan; and
             239          (III) inviting each of the notice recipients to participate in the preparation of or
             240      amendment to the capital facilities plan; and
             241          (B) before adopting or amending the capital facilities plan:
             242          (I) give public notice of the plan or amendment according to Subsection (2)(e)(ii)(A),



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             243
     (B), or (C), as the case may be, at least [14] ten days before the date of the public hearing;
             244          (II) make a copy of the plan or amendment, together with a summary designed to be
             245      understood by a lay person, available to the public;
             246          (III) place a copy of the plan or amendment and summary in each public library within
             247      the local political subdivision; and
             248          (IV) hold a public hearing to hear public comment on the plan or amendment.
             249          (ii) With respect to the public notice required under Subsection (2)(e)(i)(B)(I):
             250          (A) each municipality shall comply with the notice and hearing requirements of, and,
             251      except as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections
             252      10-9a-205 and 10-9a-801 and Subsection 10-9a-502 (2);
             253          (B) each county shall comply with the notice and hearing requirements of, and, except
             254      as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 17-27a-205 and
             255      17-27a-801 and Subsection 17-27a-502 (2); and
             256          (C) each local district, special service district, and private entity shall comply with the
             257      notice and hearing requirements of, and receive the protections of, Section 17B-1-111 .
             258          (iii) Nothing contained in this Subsection (2)(e) or in the subsections referenced in
             259      Subsections (2)(e)(ii)(A) and (B) may be construed to require involvement by a planning
             260      commission in the capital facilities planning process.
             261          (f) (i) A local political subdivision with a population or serving a population of less
             262      than 5,000 as of the last federal census need not comply with the capital facilities plan
             263      requirements of this part, but shall ensure that:
             264          (A) the impact fees that the local political subdivision imposes are based upon a
             265      reasonable plan; and
             266          (B) each applicable notice required by this chapter is given.
             267          (ii) Subsection (2)(f)(i) does not apply to private entities.
             268          (3) In preparing the plan, each local political subdivision shall generally consider all
             269      revenue sources, including impact fees, to finance the impacts on system improvements.
             270          (4) A local political subdivision or private entity may only impose impact fees on
             271      development activities when its plan for financing system improvements establishes that
             272      impact fees are necessary to achieve an equitable allocation to the costs borne in the past and to
             273      be borne in the future, in comparison to the benefits already received and yet to be received.



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             274
         (5) (a) Subject to the notice requirement of Subsection (5)(b), each local political
             275      subdivision and private entity intending to impose an impact fee shall prepare a written analysis
             276      of each impact fee that:
             277          (i) identifies the impact on system improvements required by the development activity;
             278          (ii) demonstrates how those impacts on system improvements are reasonably related to
             279      the development activity;
             280          (iii) estimates the proportionate share of the costs of impacts on system improvements
             281      that are reasonably related to the new development activity; and
             282          (iv) based upon those factors and the requirements of this chapter, identifies how the
             283      impact fee was calculated.
             284          (b) Before preparing or contracting to prepare the written analysis required under
             285      Subsection (5)(a), each local political subdivision or private entity shall provide:
             286          (i) public notice; and
             287          (ii) written notice:
             288          (A) to:
             289          (I) the registered agent of the Utah Home Builders Association;
             290          (II) the registered agent of the Utah Association of Realtors; and
             291          (III) the registered agent of the Utah Chapter of the Associated General Contractors of
             292      America;
             293          (B) indicating the local political subdivision or private entity's intent to prepare or
             294      contract to prepare a written analysis of an impact fee; and
             295          (C) inviting each notice recipient to participate in the preparation of the written
             296      analysis.
             297          (c) In analyzing whether or not the proportionate share of the costs of public facilities
             298      are reasonably related to the new development activity, the local political subdivision or private
             299      entity, as the case may be, shall identify, if applicable:
             300          (i) the cost of existing public facilities;
             301          (ii) the manner of financing existing public facilities, such as user charges, special
             302      assessments, bonded indebtedness, general taxes, or federal grants;
             303          (iii) the relative extent to which the newly developed properties and other properties
             304      have already contributed to the cost of existing public facilities, by such means as user charges,



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             305
     special assessments, or payment from the proceeds of general taxes;
             306          (iv) the relative extent to which the newly developed properties and other properties
             307      will contribute to the cost of existing public facilities in the future;
             308          (v) the extent to which the newly developed properties are entitled to a credit because
             309      the local political subdivision or private entity, as the case may be, requires its developers or
             310      owners, by contractual arrangement or otherwise, to provide common facilities, inside or
             311      outside the proposed development, that have been provided by the local political subdivision or
             312      private entity, respectively, and financed through general taxation or other means, apart from
             313      user charges, in other parts of the service area;
             314          (vi) extraordinary costs, if any, in servicing the newly developed properties; and
             315          (vii) the time-price differential inherent in fair comparisons of amounts paid at
             316      different times.
             317          (d) Each local political subdivision and private entity that prepares a written analysis
             318      under this Subsection (5) [on or after July 1, 2000] shall also prepare a summary of the written
             319      analysis, designed to be understood by a lay person.
             320          (6) Each local political subdivision that adopts an impact fee enactment under Section
             321      11-36-202 on or after July 1, 2000 shall, at least [14] ten days before adopting the enactment[,]:
             322          (a) submit a copy of the written analysis required by Subsection (5)(a) and a copy of
             323      the summary required by Subsection (5)(d) to:
             324          [(a)] (i) each public library within the local political subdivision;
             325          [(b)] (ii) the registered agent of the Utah Home Builders Association;
             326          [(c)] (iii) the registered agent of the Utah Association of Realtors; and
             327          [(d)] (iv) the registered agent of the Utah Chapter of the Associated General
             328      Contractors of America[.]; and
             329          (b) obtain a written certification from the person or entity that prepares the written
             330      analysis which states as follows:
             331          "I certify that the attached impact fee analysis:
             332              1. includes only the costs for qualifying public facilities that are:
             333                  a. allowed under the Impact Fees Act; and
             334                  b. projected to be incurred or encumbered within six years after each
             335      impact fee is paid;



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             336
             2. contains no cost for operation and maintenance of public facilities;
             337              3. offsets costs with grants or other alternate sources of payment;
             338              4. does not include costs for qualifying public facilities that will raise the level
             339      of service for the facilities, through impact fees, above the level of service that
             340      is supported by existing residents; and
             341              5. complies in each and every relevant respect with the Impact Fees Act."
             342          (7) Nothing in this chapter may be construed to repeal or otherwise eliminate any
             343      impact fee in effect on the effective date of this chapter that is pledged as a source of revenues
             344      to pay bonded indebtedness that was incurred before the effective date of this chapter.
             345          Section 5. Section 11-36-202 is amended to read:
             346           11-36-202. Impact fees -- Enactment -- Required provisions -- Effective date.
             347          (1) (a) Each local political subdivision and private entity wishing to impose impact fees
             348      shall pass an impact fee enactment.
             349          (b) The impact fee imposed by that enactment may not exceed the highest fee justified
             350      by the impact fee analysis performed pursuant to Section 11-36-201 .
             351          (c) In calculating the impact fee, a local political subdivision or private entity may
             352      include:
             353          (i) the construction contract price;
             354          (ii) the cost of acquiring land, improvements, materials, and fixtures;
             355          (iii) the cost for planning, surveying, and engineering fees for services provided for and
             356      directly related to the construction of the system improvements; and
             357          (iv) debt service charges, if the political subdivision might use impact fees as a revenue
             358      stream to pay the principal and interest on bonds, notes, or other obligations issued to finance
             359      the costs of the system improvements.
             360          (d) In calculating an impact fee, a local political subdivision may not include an
             361      expense for overhead unless the expense is calculated pursuant to a methodology that is
             362      consistent with:
             363          (i) generally accepted cost accounting practices; and
             364          (ii) the methodological standards set forth by the federal Office of Management and
             365      Budget for federal grant reimbursement.
             366          (e) In calculating an impact fee, each local political subdivision shall base amounts



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             367
     calculated under Subsection (1)(c) on realistic estimates, and the assumptions underlying those
             368      estimates shall be disclosed in the impact fee analysis.
             369          (f) Each local political subdivision and private entity that intends to enact an impact fee
             370      enactment shall:
             371          (i) at least [14] ten days before the date of the public hearing:
             372          (A) make a copy of the impact fee enactment available to the public; and
             373          (B) mail a written copy of the impact fee enactment to:
             374          (I) the registered agent of the Utah Home Builders Association;
             375          (II) the registered agent of the Utah Association of Realtors; and
             376          (III) the registered agent of the Utah Chapter of the Associated General Contractors of
             377      America; and
             378          (ii) (A) for a municipality, comply with the notice and hearing requirements of, and,
             379      except as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections
             380      10-9a-205 and 10-9a-801 ;
             381          (B) for a county, comply with the notice and hearing requirements of, and, except as
             382      provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 17-27a-205 and
             383      17-27a-801 ; and
             384          (C) for a local district or special service district, comply with the notice and hearing
             385      requirements of, and receive the protections of, Section 17B-1-111 .
             386          (g) Nothing contained in Subsection (1)(f) may be construed to require involvement by
             387      a planning commission in the impact fee enactment process.
             388          (2) The local political subdivision or private entity shall ensure that the impact fee
             389      enactment:
             390          (a) contains:
             391          (i) a provision establishing one or more service areas within which the local political
             392      subdivision or private entity calculates and imposes impact fees for various land use categories;
             393          (ii) (A) a schedule of impact fees for each type of development activity that specifies
             394      the amount of the impact fee to be imposed for each type of system improvement; or
             395          (B) the formula that the local political subdivision or private entity, as the case may be,
             396      will use to calculate each impact fee;
             397          (iii) a provision authorizing the local political subdivision or private entity, as the case



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             398
     may be, to adjust the standard impact fee at the time the fee is charged to:
             399          (A) respond to unusual circumstances in specific cases; and
             400          (B) ensure that the impact fees are imposed fairly; and
             401          (iv) a provision governing calculation of the amount of the impact fee to be imposed on
             402      a particular development that permits adjustment of the amount of the fee based upon studies
             403      and data submitted by the developer; and
             404          (b) allows a developer to receive a credit against or proportionate reimbursement of an
             405      impact fee if:
             406          (i) the developer is required by the local political subdivision, as a condition of
             407      development activity approval, to:
             408          (A) dedicate land for a system improvement;
             409          (B) improve a system improvement; or
             410          (C) provide new construction for a system improvement;
             411          (ii) the system improvement is included in the impact fee analysis; and
             412          (iii) the land, improvement, or new construction provides a system improvement that
             413      exceeds the requirements for the project.
             414          (3) A local political subdivision or private entity may include a provision in an impact
             415      fee enactment that:
             416          (a) exempts low income housing and other development activities with broad public
             417      purposes from impact fees and establishes one or more sources of funds other than impact fees
             418      to pay for that development activity;
             419          (b) imposes an impact fee for public facility costs previously incurred by a local
             420      political subdivision or private entity, as the case may be, to the extent that new growth and
             421      development will be served by the previously constructed improvement; and
             422          (c) allows a credit against impact fees for any dedication of land for, improvement to,
             423      or new construction of, any system improvements provided by the developer if the facilities:
             424          (i) are identified in the capital facilities plan; and
             425          (ii) are required by the local political subdivision as a condition of approving the
             426      development activity.
             427          (4) Except as provided in Subsection (3)(b), the local political subdivision may not
             428      impose an impact fee to cure deficiencies in public facilities serving existing development.



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             429
         (5) Notwithstanding the requirements and prohibitions of this chapter, a local political
             430      subdivision may impose and assess an impact fee for environmental mitigation when:
             431          (a) the local political subdivision has formally agreed to fund a Habitat Conservation
             432      Plan to resolve conflicts with the Endangered Species Act of 1973, 16 U.S.C. Sec 1531, et seq.
             433      or other state or federal environmental law or regulation;
             434          (b) the impact fee bears a reasonable relationship to the environmental mitigation
             435      required by the Habitat Conservation Plan; and
             436          (c) the legislative body of the local political subdivision adopts an ordinance or
             437      resolution:
             438          (i) declaring that an impact fee is required to finance the Habitat Conservation Plan;
             439          (ii) establishing periodic sunset dates for the impact fee; and
             440          (iii) requiring the legislative body to:
             441          (A) review the impact fee on those sunset dates;
             442          (B) determine whether or not the impact fee is still required to finance the Habitat
             443      Conservation Plan; and
             444          (C) affirmatively reauthorize the impact fee if the legislative body finds that the impact
             445      fee must remain in effect.
             446          [(6) Each political subdivision shall ensure that any existing impact fee for
             447      environmental mitigation meets the requirements of Subsection (5) by July 1, 1995.]
             448          [(7)] (6) Notwithstanding any other provision of this chapter[: (a) a municipality
             449      imposing impact fees to fund fire trucks as of the effective date of this act may impose impact
             450      fees for fire trucks until July 1, 1997; and (b)], an impact fee to pay for a public safety facility
             451      that is a fire suppression vehicle may not be imposed [with respect to land that has a zoning
             452      designation other than commercial] on residential components of development.
             453          [(8)] (7) Notwithstanding any other provision of this chapter, a local political
             454      subdivision may impose and collect impact fees on behalf of a school district if authorized by
             455      Section 53A-20-100.5 .
             456          [(9)] (8) An impact fee enactment may not take effect until 90 days after it is enacted.
             457          Section 6. Section 11-36-301 is amended to read:
             458           11-36-301. Impact fees -- Accounting.
             459          Each local political subdivision collecting impact fees shall:



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             460
         (1) establish separate interest bearing ledger accounts for each type of public facility
             461      for which an impact fee is collected;
             462          (2) deposit impact fee receipts in the appropriate ledger account;
             463          (3) retain the interest earned on each fund or account in the fund or account; and
             464          (4) at the end of each fiscal year, prepare a report on each fund or account showing:
             465          (a) the source and amount of all monies collected, earned, and received by the fund or
             466      account; and
             467          (b) each expenditure from the fund or account[.]; and
             468          (5) establish a report that:
             469          (a) identifies impact fee funds by the year in which they were received, the project
             470      from which the funds were collected, the capital projects for which the funds were budgeted,
             471      and the projected schedule for expenditure;
             472          (b) is H. [ on ] in .H a H. [ form ] format .H developed by the state auditor;
             473          (c) is certified by the local political subdivision's chief financial officer; and
             474          (d) is transmitted annually to the state auditor.
             475          Section 7. Section 17-36-37 is amended to read:
             476           17-36-37. Budget officer -- Annual financial statement -- Contents.
             477          (1) The budget officer of each county, within 180 days after the close of each fiscal
             478      period or, for a county that has adopted a fiscal period that is a biennial period, within 180 days
             479      after both the midpoint and the close of the fiscal period, except as provided by Section
             480      17-36-38 , shall prepare and make available to the governing body an annual financial report
             481      which shall contain:
             482          (a) a statement of revenues and expenditures and a comparison with the budget of the
             483      general fund, similar statements of all other funds for which budgets are required, and
             484      statements of revenues and expenditures or of income and expense, as the case may be, of all
             485      other operating funds of the county;
             486          (b) a balance sheet of each fund and a combined balance sheet of all funds as of:
             487          (i) for a county that has adopted a fiscal period that is a biennial period, the midpoint
             488      and the close of the fiscal period; and
             489          (ii) for each other county, the close of the fiscal period; or
             490          (c) any other reports the governing body may require, including work performance



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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
             491
     data, tax levies, taxable values, details of bonded indebtedness, and historical facts of interest
             492      to the governing body and the public.
             493          [(2) Each annual financial report required under Subsection (1) shall identify impact
             494      fee funds by the year in which they were received, the project from which the funds were
             495      collected, the capital projects for which the funds are budgeted, and the projected schedule for
             496      expenditure.]
             497          [(3)] (2) Copies of the annual report shall be furnished to the state auditor and made a
             498      matter of public record in the office of the budget officer.
             499          Section 8. Section 17B-1-639 is amended to read:
             500           17B-1-639. Annual financial reports -- Independent audit reports.
             501          (1) [(a)] Within 180 days after the close of each fiscal year, the district shall prepare an
             502      annual financial report in conformity with generally accepted accounting principles as
             503      prescribed in the Uniform Accounting Manual for Local Districts.
             504          [(b) Each annual financial report shall identify impact fee funds by the year in which
             505      they were received, the project from which the funds were collected, the capital projects for
             506      which the funds are budgeted, and the projected schedule for expenditure.]
             507          (2) The requirement under Subsection (1)[(a)] to prepare an annual financial report
             508      may be satisfied by presentation of the audit report furnished by the independent auditor.
             509          (3) Copies of the annual financial report or the audit report furnished by the
             510      independent auditor shall be filed with the state auditor and shall be filed as a public document
             511      in the district office.
             511a      S. Section 9. Coordinating S.B. 84 with H.B. 259 -- Technically superseding and merging
             511b      amendments.
             511c          If this S.B. 84 and H.B. 259, Changes to Impact Fees, both pass, it is the intent of the
             511d      Legislature that:
             511e          (1) the amendments to Subsections 11-36-201(1)(c) and (d) in this bill supersede the
             511f      amendments to Subsections 11-36-201(1)(c) and (d) in H.B. 259, when the Office of Legislative
             511g      Research and General Counsel prepares the Utah Code database for publication; and
             511h          (2) the Office of Legislative Research and General Counsel, in preparing the Utah Code
             511i      database for publication, modify Subsection 11-36-202(6) to read:
             511j          "[(7)] (6) Notwithstanding any other provision of this chapter:
             511k          (a) [a municipality imposing impact fees to fund fire trucks as of the effective date of
             511l      this act may impose impact fees for fire trucks until July 1, 1997; and (b)] an impact fee to pay
             511m      for a public safety facility that is a fire suppression vehicle may not be imposed [with respect to


             511n      land that has a zoning designation other than commercial
] on residential components


            
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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
511o
     of development
[.];
             511p          (b) an impact fee may not be imposed on a school district or charter school for a park,
             511q      recreation facility, open space, or trail;
             511r          (c) an impact fee may not be imposed on development activity that consists of the
             511s      construction of a school, whether by a school district or a charter school, if:
             511t          (i) the school is intended to replace another school, whether on the same or a different
             511u      parcel; and
             511v          (ii) the new school and the school being replaced are both within:
             511w          (A) the boundary of the local political subdivision; or
             511x          (B) the jurisdiction of the private entity; and
             511y          (d) an impact fee may not be imposed on a school district or charter school unless:
             511z          (i) the development resulting from the school district or charter school's development
             511aa      activity directly results in a need for additional system improvements for which the impact fee
             511ab      is imposed; and
             511ac          (ii) the impact fee is calculated to cover only the school district or charter school's
             511ad      proportionate share of the cost of those additional system improvements.
".
             511ae          Section 10. Coordinating S.B. 84 with H.B. 274 -- Technically superseding and merging
             511af      amendments.
             511ag          If this S.B. 84 and H.B. 274, Local Government Fees and Charges, both pass, it is the
             511ah      intent of the Legislature that:
             511ai          (1) the amendments to Subsections 11-36-201(1)(c) and (d) in this bill supersede the
             511aj      amendments to Subsections 11-36-201(1)(c) and (d) in H.B. 274, when the Office of Legislative
             511ak      Research and General Counsel prepares the Utah Code database for publication; and
             511al          (2) the Office of Legislative Research and General Counsel, in preparing the Utah
             511am      Code database for publication, modify Subsection 11-36-202(6) to read:
             511an      "[(7)] (6) Notwithstanding any other provision of this chapter:
             511ao          (a) [a municipality imposing impact fees to fund fire trucks as of the effective date of this act may
             511ap      impose impact fees for fire trucks until July 1, 1997; and (b)] an impact fee to pay for a public safety facility
             511aq      that is a fire suppression vehicle may not be imposed [with respect to land that has a zoning designation other
             511ar      than commercial] on residential components of development[.];
             511as          (b) an impact fee for a road facility may be imposed on the state only if and to the extent that:
             511at          (i) the state's development causes an impact on the road facility; and
             511au          (ii) the portion of the road facility related to an impact fee is not funded by the state or by the federal
             511av      government; and


             511aw          (c) to the extent that the impact fee includes a component for a law enforcement facility, the


            
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Senate 2nd Reading Amendments 3-6-2009 sm/rhr
511ax
     impact fee may not be imposed on development activity for:
             511ay          (i) the Utah National Guard;
             511az          (ii) the Utah Highway Patrol; or
             511ba          (iii) a state institution of higher education that has its own police force." .S


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