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S.B. 205 Enrolled

             1     

COMMUNITY DEVELOPMENT AND RENEWAL

             2     
AGENCY AMENDMENTS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: Brad L. Dee

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions relating to community development and renewal
             11      agencies.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the definitions of "base taxable value," "inactive airport site," "inactive
             15      industrial site," and "project area budget";
             16          .    authorizes an agency created by a county to undertake urban renewal, economic
             17      development, or community development within a town under certain
             18      circumstances;
             19          .    modifies a provision relating to a public entity's assistance or cooperation in urban
             20      renewal, economic development, or community development;
             21          .    modifies a provision relating to a resolution or interlocal agreement authorizing an
             22      agency to be paid tax increment or sales tax revenue;
             23          .    requires the taxing entity committee to adopt an organizing resolution at its first
             24      meeting;
             25          .    modifies the amount of tax increment to be paid under an urban renewal project
             26      area plan for an inactive airport site;
             27          .    requires the applicable project area budget, resolution, or interlocal agreement to
             28      specify limits on the amount of tax increment and sales tax revenue that an agency
             29      will be paid and prohibits an agency from being paid more tax increment or sales


             30      tax than specified, unless otherwise agreed;
             31          .    prohibits an agency from using tax increment to pay for bonds or other obligations
             32      for financing a telecommunications facility;
             33          .    modifies a provision relating to funds for income targeted housing;
             34          .    imposes obligations on an agency that uses tax increment to pay for
             35      communication infrastructure or a communication facility;
             36          .    extends from 30 to 90 days the period of time within which an agency is required to
             37      file a copy of its annual budget after adopting the budget;
             38          .    narrows application of a provision requiring an agency to allocate tax increment
             39      funds for housing to economic development project area budgets adopted before
             40      the effective date of this bill; and
             41          .    makes technical changes.
             42      Monies Appropriated in this Bill:
             43          None
             44      Other Special Clauses:
             45          This bill provides an immediate effective date.
             46          This bill provides revisor instructions.
             47      Utah Code Sections Affected:
             48      AMENDS:
             49          17C-1-102, as last amended by Laws of Utah 2008, Chapters 125 and 330
             50          17C-1-204, as renumbered and amended by Laws of Utah 2006, Chapter 359
             51          17C-1-207, as renumbered and amended by Laws of Utah 2006, Chapter 359
             52          17C-1-401, as renumbered and amended by Laws of Utah 2006, Chapter 359
             53          17C-1-402, as last amended by Laws of Utah 2007, Chapter 364
             54          17C-1-405, as last amended by Laws of Utah 2007, Chapter 364
             55          17C-1-407, as renumbered and amended by Laws of Utah 2006, Chapter 359
             56          17C-1-409, as last amended by Laws of Utah 2007, Chapter 364
             57          17C-1-411, as last amended by Laws of Utah 2007, Chapter 364


             58          17C-1-412, as last amended by Laws of Utah 2007, Chapter 364
             59          17C-1-601, as renumbered and amended by Laws of Utah 2006, Chapter 359
             60          17C-2-110, as last amended by Laws of Utah 2007, Chapter 364
             61          17C-2-201, as renumbered and amended by Laws of Utah 2006, Chapter 359
             62          17C-3-109, as enacted by Laws of Utah 2006, Chapter 359
             63          17C-3-201, as enacted by Laws of Utah 2006, Chapter 359
             64          17C-3-202, as enacted by Laws of Utah 2006, Chapter 359
             65          17C-3-203, as enacted by Laws of Utah 2006, Chapter 359
             66          17C-4-201, as enacted by Laws of Utah 2006, Chapter 359
             67          17C-4-202, as last amended by Laws of Utah 2007, Chapter 364
             68          17C-4-203, as enacted by Laws of Utah 2006, Chapter 359
             69      ENACTS:
             70          17C-1-415, Utah Code Annotated 1953
             71     
             72      Be it enacted by the Legislature of the state of Utah:
             73          Section 1. Section 17C-1-102 is amended to read:
             74           17C-1-102. Definitions.
             75          As used in this title:
             76          (1) "Adjusted tax increment" means:
             77          (a) for tax increment under a pre-July 1, 1993 project area plan, tax increment under
             78      Section 17C-1-403 , excluding tax increment under Subsection 17C-1-403 (3); and
             79          (b) for tax increment under a post-June 30, 1993 project area plan, tax increment
             80      under Section 17C-1-404 , excluding tax increment under Section 17C-1-406 .
             81          (2) "Affordable housing" means housing to be owned or occupied by persons and
             82      families of low or moderate income, as determined by resolution of the agency.
             83          (3) "Agency" or "community development and renewal agency" means a separate body
             84      corporate and politic, created under Section 17C-1-201 or as a redevelopment agency under
             85      previous law, that is a political subdivision of the state, that is created to undertake or promote


             86      urban renewal, economic development, or community development, or any combination of
             87      them, as provided in this title, and whose geographic boundaries are coterminous with:
             88          (a) for an agency created by a county, the unincorporated area of the county; and
             89          (b) for an agency created by a city or town, the boundaries of the city or town.
             90          (4) "Annual income" has the meaning as defined under regulations of the U.S.
             91      Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
             92      superseded by replacement regulations.
             93          (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             94          (6) "Base taxable value" means:
             95          (a) for an urban renewal or economic development project area, the taxable value of
             96      the property within a project area from which tax increment will be collected, as shown upon
             97      the assessment roll last equalized before:
             98          [(a)] (i) for a pre-July 1, 1993 project area plan, the effective date of the project area
             99      plan;
             100          [(b)] (ii) for a post-June 30, 1993 project area plan:
             101          [(i)] (A) the date of the taxing entity committee's approval of the first project area
             102      budget; or
             103          [(ii)] (B) if no taxing entity committee approval is required for the project area budget,
             104      the later of:
             105          [(A)] (I) the date the project area plan is adopted by the community legislative body;
             106      and
             107          [(B)] (II) the date the agency adopts the first project area budget;
             108          [(c)] (iii) for a project on an inactive industrial site, a year after the date on which the
             109      inactive industrial site is sold for remediation and development; or
             110          [(d)] (iv) for a project on an inactive airport site, a year after the later of:
             111          [(i)] (A) the date on which the inactive airport site is sold for remediation and
             112      development; and
             113          [(ii)] (B) the date on which the airport that had been operated on the inactive airport


             114      site ceased operations[.]; and
             115          (b) for a community development project area, the agreed value specified in a
             116      resolution or interlocal agreement under Subsection 17C-4-201 (2).
             117          (7) "Basic levy" means the portion of a school district's tax levy constituting the
             118      minimum basic levy under Section 59-2-902 .
             119          (8) "Blight" or "blighted" means the condition of an area that meets the requirements
             120      of Subsection 17C-2-303 (1).
             121          (9) "Blight hearing" means a public hearing under Subsection 17C-2-102 (1)(a)(i)(C)
             122      and Section 17C-2-302 regarding the existence or nonexistence of blight within the proposed
             123      urban renewal project area.
             124          (10) "Blight study" means a study to determine the existence or nonexistence of blight
             125      within a survey area as provided in Section 17C-2-301 .
             126          (11) "Board" means the governing body of an agency, as provided in Section
             127      17C-1-203 .
             128          (12) "Budget hearing" means the public hearing on a draft project area budget
             129      required under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or
             130      Subsection 17C-3-201 (2)(d) for an economic development project area budget.
             131          (13) "Combined incremental value" means the combined total of all incremental
             132      values from all urban renewal project areas, except project areas that contain some or all of a
             133      military installation or inactive industrial site, within the agency's boundaries under adopted
             134      project area plans and adopted project area budgets at the time that a project area budget for a
             135      new urban renewal project area is being considered.
             136          (14) "Community" means a county, city, or town.
             137          (15) "Community development" means development activities within a community,
             138      including the encouragement, promotion, or provision of development.
             139          (16) "Economic development" means to promote the creation or retention of public or
             140      private jobs within the state through:
             141          (a) planning, design, development, construction, rehabilitation, business relocation, or


             142      any combination of these, within a community; and
             143          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             144      parking, public, or other facilities, or other improvements that benefit the state or a
             145      community.
             146          (17) "Fair share ratio" means the ratio derived by:
             147          (a) for a city or town, comparing the percentage of all housing units within the city or
             148      town that are publicly subsidized income targeted housing units to the percentage of all
             149      housing units within the whole county that are publicly subsidized income targeted housing
             150      units; or
             151          (b) for the unincorporated part of a county, comparing the percentage of all housing
             152      units within the unincorporated county that are publicly subsidized income targeted housing
             153      units to the percentage of all housing units within the whole county that are publicly
             154      subsidized income targeted housing units.
             155          (18) "Family" has the meaning as defined under regulations of the U.S. Department of
             156      Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as superseded by
             157      replacement regulations.
             158          (19) "Greenfield" means land not developed beyond agricultural or forestry use.
             159          (20) "Hazardous waste" means any substance defined, regulated, or listed as a
             160      hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant,
             161      contaminant, or toxic substance, or identified as hazardous to human health or the
             162      environment, under state or federal law or regulation.
             163          (21) "Housing funds" means the funds allocated in an urban renewal project area
             164      budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
             165          (22) (a) "Inactive airport site" means land that:
             166          (i) consists of at least 100 acres;
             167          (ii) is occupied by an airport [that]:
             168          (A) (I) that is no longer in operation as an airport; [and] or
             169          (II) (Aa) that is scheduled to be decommissioned; and


             170          (Bb) for which a replacement commercial service airport is under construction; and
             171          (B) that is owned or was formerly owned and operated by a public entity; and
             172          (iii) requires remediation because:
             173          (A) of the presence of hazardous waste or solid waste; or
             174          (B) the site lacks sufficient public infrastructure and facilities, including public roads,
             175      electric service, water system, and sewer system, needed to support development of the site.
             176          (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
             177      described in Subsection (22)(a).
             178          (23) (a) "Inactive industrial site" means land that:
             179          (i) consists of at least 1,000 acres;
             180          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
             181      facility; and
             182          (iii) requires remediation because of the presence of hazardous waste or solid waste.
             183          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
             184      described in Subsection (23)(a).
             185          (24) "Income targeted housing" means housing to be owned or occupied by a family
             186      whose annual income is at or below 80% of the median annual income for the county in which
             187      the housing is located.
             188          (25) "Incremental value" means a figure derived by multiplying the marginal value of
             189      the property located within an urban renewal project area on which tax increment is collected
             190      by a number that represents the percentage of adjusted tax increment from that project area
             191      that is paid to the agency.
             192          (26) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
             193      established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
             194          (27) "Marginal value" means the difference between actual taxable value and base
             195      taxable value.
             196          (28) "Military installation project area" means a project area or a portion of a project
             197      area located within a federal military installation ordered closed by the federal Defense Base


             198      Realignment and Closure Commission.
             199          (29) "Plan hearing" means the public hearing on a draft project area plan required
             200      under Subsection 17C-2-102 (1)(a)(vi) for an urban renewal project area plan, Subsection
             201      17C-3-102 (1)(d) for an economic development project area plan, and Subsection
             202      17C-4-102 (1)(d) for a community development project area plan.
             203          (30) "Post-June 30, 1993 project area plan" means a project area plan adopted on or
             204      after July 1, 1993, whether or not amended subsequent to its adoption.
             205          (31) "Pre-July 1, 1993 project area plan" means a project area plan adopted before July
             206      1, 1993, whether or not amended subsequent to its adoption.
             207          (32) "Private," with respect to real property, means:
             208          (a) not owned by the United States or any agency of the federal government, a public
             209      entity, or any other governmental entity; and
             210          (b) not dedicated to public use.
             211          (33) "Project area" means the geographic area described in a project area plan or draft
             212      project area plan where the urban renewal, economic development, or community
             213      development, as the case may be, set forth in the project area plan or draft project area plan
             214      takes place or is proposed to take place.
             215          (34) "Project area budget" means a multiyear projection of annual or cumulative
             216      revenues and expenses and other fiscal matters pertaining to a urban renewal or economic
             217      development project area that includes:
             218          (a) the base taxable value of property in the project area;
             219          (b) the projected tax increment expected to be generated within the project area;
             220          (c) the amount of tax increment expected to be shared with other taxing entities;
             221          (d) the amount of tax increment expected to be used to implement the project area
             222      plan, including the estimated amount of tax increment to be used for land acquisition, public
             223      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             224      and public entities;
             225          (e) the tax increment expected to be used to cover the cost of administering the project


             226      area plan;
             227          (f) if the area from which tax increment is to be collected is less than the entire project
             228      area:
             229          (i) the tax identification numbers of the parcels from which tax increment will be
             230      collected; or
             231          (ii) a legal description of the portion of the project area from which tax increment will
             232      be collected; [and]
             233          (g) for property that the agency owns and expects to sell, the expected total cost of the
             234      property to the agency and the expected selling price[.]; and
             235          (h) (i) for an urban renewal project area, the information required under Subsection
             236      17C-2-201 (1)(b); and
             237          (ii) for an economic development project area, the information required under
             238      Subsection 17C-3-201 (1)(b).
             239          (35) "Project area plan" means a written plan under Chapter 2, Part 1, Urban Renewal
             240      Project Area Plan, Chapter 3, Part 1, Economic Development Project Area Plan, or Chapter 4,
             241      Part 1, Community Development Project Area Plan, as the case may be, that, after its effective
             242      date, guides and controls the urban renewal, economic development, or community
             243      development activities within a project area.
             244          (36) "Property tax" includes privilege tax and each levy on an ad valorem basis on
             245      tangible or intangible personal or real property.
             246          (37) "Public entity" means:
             247          (a) the state, including any of its departments or agencies; or
             248          (b) a political subdivision of the state, including a county, city, town, school district,
             249      local district, special service district, or interlocal cooperation entity.
             250          (38) "Publicly owned infrastructure and improvements" means water, sewer, storm
             251      drainage, electrical, and other similar systems and lines, streets, roads, curb, gutter, sidewalk,
             252      walkways, parking facilities, public transportation facilities, and other facilities, infrastructure,
             253      and improvements benefitting the public and to be publicly owned or publicly maintained or


             254      operated.
             255          (39) "Record property owner" or "record owner of property" means the owner of real
             256      property as shown on the records of the recorder of the county in which the property is located
             257      and includes a purchaser under a real estate contract if the contract is recorded in the office of
             258      the recorder of the county in which the property is located or the purchaser gives written notice
             259      of the real estate contract to the agency.
             260          (40) "Superfund site":
             261          (a) means an area included in the National Priorities List under the Comprehensive
             262      Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
             263          (b) includes an area formerly included in the National Priorities List, as described in
             264      Subsection (40)(a), but removed from the list following remediation that leaves on site the
             265      waste that caused the area to be included in the National Priorities List.
             266          (41) "Survey area" means an area designated by a survey area resolution for study to
             267      determine whether one or more urban renewal projects within the area are feasible.
             268          (42) "Survey area resolution" means a resolution adopted by the agency board under
             269      Subsection 17C-2-101 (1)(a) designating a survey area.
             270          (43) "Taxable value" means the value of property as shown on the last equalized
             271      assessment roll as certified by the county assessor.
             272          (44) (a) "Tax increment" means, except as provided in Subsection (44)(b), the
             273      difference between:
             274          (i) the amount of property tax revenues generated each tax year by all taxing entities
             275      from the area within a project area designated in the project area plan as the area from which
             276      tax increment is to be collected, using the current assessed value of the property; and
             277          (ii) the amount of property tax revenues that would be generated from that same area
             278      using the base taxable value of the property.
             279          (b) "Tax increment" does not include taxes levied and collected under Section
             280      59-2-1602 on or after January 1, 1994 upon the taxable property in the project area unless:
             281          (i) the project area plan was adopted before May 4, 1993, whether or not the project


             282      area plan was subsequently amended; and
             283          (ii) the taxes were pledged to support bond indebtedness or other contractual
             284      obligations of the agency.
             285          (45) "Taxing entity" means a public entity that levies a tax on property within a
             286      community.
             287          (46) "Taxing entity committee" means a committee representing the interests of taxing
             288      entities, created as provided in Section 17C-1-402 .
             289          (47) "Unincorporated" means not within a city or town.
             290          (48) (a) "Urban renewal" means the development activities under a project area plan
             291      within an urban renewal project area, including:
             292          (i) planning, design, development, demolition, clearance, construction, rehabilitation,
             293      environmental remediation, or any combination of these, of part or all of a project area;
             294          (ii) the provision of residential, commercial, industrial, public, or other structures or
             295      spaces, including recreational and other facilities incidental or appurtenant to them;
             296          (iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating,
             297      or any combination of these, existing structures in a project area;
             298          (iv) providing open space, including streets and other public grounds and space
             299      around buildings;
             300          (v) providing public or private buildings, infrastructure, structures, and improvements;
             301      and
             302          (vi) providing improvements of public or private recreation areas and other public
             303      grounds.
             304          (b) "Urban renewal" means "redevelopment," as defined under the law in effect before
             305      May 1, 2006, if the context requires.
             306          Section 2. Section 17C-1-204 is amended to read:
             307           17C-1-204. Urban renewal, economic development, and community development
             308      by an adjoining agency -- Requirements.
             309          (1) An agency or community may, by resolution of its board or legislative body,


             310      respectively, authorize an agency to conduct urban renewal, economic development, or
             311      community development activities in a project area that includes an area within the
             312      authorizing agency's boundaries or within the boundaries of the authorizing community if the
             313      project area or community is contiguous to the boundaries of the other agency.
             314          (2) If an agency board or community legislative body adopts a resolution under
             315      Subsection (1) authorizing another agency to undertake urban renewal, economic
             316      development, or community development activities in the authorizing agency's project area or
             317      within the boundaries of the authorizing community:
             318          (a) the other agency may act in all respects as if the project area were within its own
             319      boundaries;
             320          (b) the board of the other agency has all the rights, powers, and privileges with respect
             321      to the project area as if it were within its own boundaries; and
             322          (c) the other agency may be paid tax increment funds to the same extent as if the
             323      project area were within its own boundaries.
             324          (3) Each project area plan approved by the other agency for the project area that is the
             325      subject of a resolution under Subsection (1) shall be adopted by ordinance of the legislative
             326      body of the community in which the project area is located.
             327          (4) (a) As used in this Subsection (4):
             328          (i) "County agency" means an agency that was created by a county.
             329          (ii) "Industrial property" means private real property:
             330          (A) over half of which is located within the boundary of a town, as defined in Section
             331      10-1-104 ; and
             332          (B) comprises some or all of an inactive industrial site.
             333          (iii) "Perimeter portion" means the portion of an inactive industrial site that is:
             334          (A) part of the inactive industrial site because it lies within the perimeter described in
             335      Subsection 17C-1-102 (23)(b); and
             336          (B) located within the boundary of a city, as defined in Section 10-1-104 .
             337          (b) (i) Subject to Subsection (4)(b)(ii), a county agency may undertake urban renewal,


             338      economic development, or community development on industrial property if the record
             339      property owner of the industrial property submits a written request to the county agency to do
             340      so.
             341          (ii) A county agency may not include a perimeter portion within a project area without
             342      the approval of the city in which the perimeter portion is located.
             343          (c) If a county agency undertakes urban renewal, economic development, or
             344      community development on industrial property:
             345          (i) the county agency may act in all respects as if the project area that includes the
             346      industrial property were within the county agency's boundary;
             347          (ii) the board of the county agency has each right, power, and privilege with respect to
             348      the project area as if the project area were within the county agency's boundary; and
             349          (iii) the county agency may be paid tax increment to the same extent as if the project
             350      area were within the county agency's boundary.
             351          (d) A project area plan for a project on industrial property that is approved by the
             352      county agency shall be adopted by ordinance of the legislative body of the county in which the
             353      project area is located.
             354          Section 3. Section 17C-1-207 is amended to read:
             355           17C-1-207. Public entities may assist with urban renewal, economic
             356      development, or community development project.
             357          (1) In order to assist and cooperate in the planning, undertaking, construction, or
             358      operation of [an] urban renewal, economic development, or community development [project
             359      located] within the area in which it is authorized to act, a public entity may:
             360          (a) (i) provide or cause to be furnished [adjacent to or in connection with an urban
             361      renewal, economic development, or community development project]:
             362          (A) parks, playgrounds, or other recreational facilities;
             363          (B) community, educational, water, sewer, or drainage facilities; or
             364          (C) any other works which the public entity is otherwise empowered to undertake;
             365          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or


             366      replan streets, roads, roadways, alleys, sidewalks, or other places;
             367          (iii) plan or replan, zone or rezone any part of a project area and make any legal
             368      exceptions from building regulations and ordinances;
             369          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
             370      rights of any holder of the bonds;
             371          (v) enter into an agreement with another public entity concerning action to be taken
             372      pursuant to any of the powers granted in this title;
             373          (vi) do any and all things necessary to aid or cooperate in the planning or carrying out
             374      of [an] the urban renewal, economic development, or community development [project];
             375          (vii) in connection with the project area plan, become obligated to the extent
             376      authorized and funds have been made available to make required improvements or construct
             377      required structures; and
             378          (viii) lend, grant, or contribute funds to an agency for an urban renewal, economic
             379      development, or community development project; and
             380          (b) 15 days after posting public notice:
             381          (i) purchase or otherwise acquire property or lease property from an agency; or
             382          (ii) sell, grant, convey, or otherwise dispose of the public entity's property or lease the
             383      public entity's property to an agency.
             384          (2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
             385      may extend over any period.
             386          (3) A grant or contribution of funds from a public entity to an agency is not subject to
             387      the requirements of Section 10-8-2 .
             388          Section 4. Section 17C-1-401 is amended to read:
             389           17C-1-401. Agency receipt and use of tax increment and sales tax -- Distribution
             390      of tax increment and sales tax.
             391          (1) An agency may receive and use tax increment and sales tax, as provided in this
             392      part.
             393          (2) (a) The applicable length of time or number of years for which an agency is to be


             394      paid tax increment or sales tax under this part shall be measured:
             395          (i) for a pre-July 1, 1993 project area plan, from the first tax year regarding which the
             396      agency accepts tax increment from the project area;
             397          (ii) for a post-June 30, 1993 urban renewal or economic development project area
             398      plan, from the first tax year for which the agency receives tax increment under the project area
             399      budget; or
             400          (iii) for a community development project area plan, as indicated in the resolution or
             401      interlocal agreement of a taxing entity that establishes the agency's right to receive tax
             402      increment or sales tax.
             403          (b) Tax increment may not be paid to an agency for a tax year prior to the tax year
             404      following:
             405          (i) for an urban renewal or economic development project area plan, the effective date
             406      of the project area plan; and
             407          (ii) for a community development project area plan, the effective date of the interlocal
             408      agreement that establishes the agency's right to receive tax increment.
             409          (3) With respect to a community development project area plan[,]:
             410          (a) a taxing entity or public entity may, by resolution or through interlocal agreement,
             411      authorize an agency to be paid any or all of that taxing entity or public entity's tax increment
             412      or sales tax for any period of time[.]; and
             413          (b) the resolution or interlocal agreement authorizing the agency to be paid tax
             414      increment or sales tax shall specify:
             415          (i) the base taxable value of the project area; and
             416          (ii) the method of calculating the amount of tax increment or sales tax to be paid to the
             417      agency.
             418          (4) With the written consent of a taxing entity, an agency may be paid tax increment,
             419      from that taxing entity's tax revenues only, in a higher percentage or for a longer period of
             420      time, or both, than otherwise authorized under this title.
             421          (5) Each county that collects property tax on property within a project area shall pay


             422      and distribute to the agency the tax increment that the agency is entitled to collect under this
             423      title, in the manner and at the time provided in Section 59-2-1365 .
             424          Section 5. Section 17C-1-402 is amended to read:
             425           17C-1-402. Taxing entity committee.
             426          (1) Each agency that adopts or proposes to adopt a post-June 30, 1993 urban renewal
             427      or economic development project area plan shall, and any other agency may, cause a taxing
             428      entity committee to be created.
             429          (2) (a) (i) Each taxing entity committee shall be composed of:
             430          (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
             431          (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
             432      appointed by resolution of the legislative body of the county in which the agency is located; or
             433          (II) in a county of the first class, one representative appointed by the county executive
             434      and one representative appointed by the legislative body of the county in which the agency is
             435      located;
             436          (C) if the agency was created by a city or town, two representatives appointed by
             437      resolution of the legislative body of that city or town;
             438          (D) one representative appointed by the State Board of Education; and
             439          (E) one representative selected by majority vote of the legislative bodies or governing
             440      boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
             441      represent the interests of those taxing entities on the taxing entity committee.
             442          (ii) (A) If the agency boundaries include only one school district, that school district
             443      shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
             444          (B) If the agency boundaries include more than one school district, those school
             445      districts shall jointly appoint the two school district representatives under Subsection
             446      (2)(a)(i)(A).
             447          (b) (i) Each taxing entity committee representative under Subsection (2)(a) shall be
             448      appointed within 30 days after the agency provides notice of the creation of the taxing entity
             449      committee.


             450          (ii) If a representative is not appointed within the time required under Subsection
             451      (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
             452      place of the missing representative until that representative is appointed.
             453          (c) (i) A taxing entity committee representative may be appointed for a set term or
             454      period of time, as determined by the appointing authority under Subsection (2)(a)(i).
             455          (ii) Each taxing entity committee representative shall serve until a successor is
             456      appointed and qualified.
             457          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i),
             458      whether an initial appointment or an appointment to replace an already serving representative,
             459      the appointing authority shall:
             460          (A) notify the agency in writing of the name and address of the newly appointed
             461      representative; and
             462          (B) provide the agency a copy of the resolution making the appointment or, if the
             463      appointment is not made by resolution, other evidence of the appointment.
             464          (ii) Each appointing authority of a taxing entity committee representative under
             465      Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
             466      representative appointed by that appointing authority.
             467          (3) At its first meeting, a taxing entity committee shall adopt an organizing resolution:
             468          (a) designating a chair and a secretary of the committee; and
             469          (b) if the committee considers it appropriate, governing the use of electronic meetings
             470      under Section 52-4-207 .
             471          [(3)] (4) A taxing entity committee represents all taxing entities regarding an urban
             472      renewal or economic development project area and may:
             473          (a) cast votes that will be binding on all taxing entities;
             474          (b) negotiate with the agency concerning a draft project area plan;
             475          (c) approve or disapprove [a] an urban renewal project area budget as provided in
             476      Section 17C-2-204 [for an urban renewal] or an economic development project area budget
             477      [and] as provided in Section 17C-3-203 [for an economic development project area budget];


             478          (d) approve or disapprove amendments to a project area budget as provided in Section
             479      17C-2-206 for an urban renewal project area budget and Section 17C-3-205 for an economic
             480      development project area budget;
             481          (e) approve exceptions to the limits on the value and size of a project area imposed
             482      under this title;
             483          (f) approve exceptions to the percentage of tax increment and the period of time that
             484      tax increment is paid to the agency as provided in this title;
             485          (g) approve the use of tax increment for publicly owned infrastructure and
             486      improvements outside of an urban renewal or economic development project area that the
             487      agency and community legislative body determine to be of benefit to the urban renewal or
             488      economic development project area, as provided in Subsection 17C-1-409 (1)(a)(iii)(D);
             489          (h) waive the restrictions imposed by Subsection 17C-2-202 (1); and
             490          (i) give other taxing entity committee approval or consent required or allowed under
             491      this title.
             492          [(4)] (5) A quorum of a taxing entity committee consists of:
             493          (a) if the urban renewal or economic development project area is located within a city
             494      or town, five members; or
             495          (b) if the urban renewal or economic development project area is not located within a
             496      city or town, four members.
             497          [(5)] (6) Taxing entity committee approval, consent, or other action requires the
             498      affirmative vote of two-thirds of all members present at a taxing entity committee meeting at
             499      which a quorum is present.
             500          [(6)] (7) (a) An agency may call a meeting of the taxing entity committee by sending
             501      written notice to the members of the taxing entity committee at least ten days before the date
             502      of the meeting.
             503          (b) Each notice under Subsection [(6)] (7)(a) shall be accompanied by:
             504          (i) the proposed agenda for the taxing entity committee meeting; and
             505          (ii) if not previously provided and if they exist and are to be considered at the meeting:


             506          (A) the urban renewal or economic development project area plan or proposed plan;
             507          (B) the urban renewal or economic development project area budget or proposed
             508      budget;
             509          (C) the analysis required under Subsection 17C-2-103 (2) or 17C-3-103 (2);
             510          (D) the blight study;
             511          (E) the agency's resolution making a finding of blight under Subsection
             512      17C-2-102 (1)(a) (ii)(B); and
             513          (F) other documents to be considered by the taxing entity committee at the meeting.
             514          [(7)] (8) (a) A taxing entity committee may not vote on a proposed urban renewal or
             515      economic development project area budget or proposed amendment to an urban renewal or
             516      economic development project area budget at the first meeting at which the proposed budget
             517      or amendment is considered unless all members of the taxing entity committee present at the
             518      meeting consent.
             519          (b) A second taxing entity committee meeting to consider an urban renewal or
             520      economic development project area budget or a proposed amendment to an urban renewal or
             521      economic development project area budget may not be held within 14 days after the first
             522      meeting unless all members of the taxing entity committee present at the first meeting consent.
             523          [(8)] (9) Each taxing entity committee shall meet at least annually during the time that
             524      the agency receives tax increment under an urban renewal or economic development project
             525      area budget in order to review the status of the project area.
             526          [(9)] (10) Each taxing entity committee shall be governed by Title 52, Chapter 4,
             527      Open and Public Meetings Act.
             528          [(10)] (11) Each time a school district representative or a representative of the State
             529      Board of Education votes as a member of a taxing entity committee to allow an agency to be
             530      paid tax increment or to increase the amount or length of time that an agency may be paid tax
             531      increment, that representative shall, within 45 days after the vote, provide to the
             532      representative's respective school board an explanation in writing of the representative's vote
             533      and the reasons for the vote.


             534          [(11)] (12) (a) The auditor of each county in which the agency is located shall provide
             535      a written report to the taxing entity committee stating, with respect to property within each
             536      urban renewal and economic development project area:
             537          (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408 ;
             538      and
             539          (ii) the assessed value.
             540          (b) With respect to the information required under Subsection [(11)] (12)(a), the
             541      auditor shall provide:
             542          (i) actual amounts for each year from the adoption of the urban renewal and economic
             543      development project area plan to the time of the report; and
             544          (ii) estimated amounts for each year beginning the year after the time of the report and
             545      ending the time that the agency expects no longer to be paid tax increment from property
             546      within the urban renewal and economic development project area.
             547          (c) The auditor of the county in which the agency is located shall provide a report
             548      under this Subsection [(11)] (12):
             549          (i) at least annually; and
             550          (ii) upon request of the taxing entity committee, before a taxing entity committee
             551      meeting at which the committee will consider whether to allow the agency to be paid tax
             552      increment or to increase the amount of tax increment that the agency may be paid or the length
             553      of time that the agency may be paid tax increment.
             554          [(12)] (13) This section does not apply to a community development project area plan.
             555          Section 6. Section 17C-1-405 is amended to read:
             556           17C-1-405. Tax increment under a project area plan adopted on or after May 1,
             557      2006.
             558          (1) This section applies to tax increment under a project area plan adopted on or after
             559      May 1, 2006.
             560          (2) Subject to the approval of the taxing entity committee, an agency board may
             561      provide in the urban renewal or economic development project area budget for the agency to


             562      be paid:
             563          (a) for an urban renewal project area plan that proposes development of an inactive
             564      industrial site or inactive airport site, at least 60% of tax increment for at least [15] 20 years;
             565      or
             566          (b) for each other project, any percentage of tax increment up to 100% or any
             567      specified dollar amount of tax increment for any period of time.
             568          (3) A resolution or interlocal agreement relating to an agency's use of tax increment for
             569      a community development project area plan may provide for the agency to be paid any
             570      percentage of tax increment up to 100% or any specified dollar amount of tax increment for
             571      any period of time.
             572          Section 7. Section 17C-1-407 is amended to read:
             573           17C-1-407. Limitations on tax increment.
             574          (1) (a) If the development of retail sales of goods is the primary objective of an urban
             575      renewal project area, tax increment from the urban renewal project area may not be paid to or
             576      used by an agency unless a finding of blight is made under Chapter 2, Part 3, Blight
             577      Determination in Urban Renewal Project Areas.
             578          (b) Development of retail sales of goods does not disqualify an agency from receiving
             579      tax increment.
             580          (c) After July 1, 2005, an agency may not be paid or use tax increment generated from
             581      the value of property within an economic development project area that is attributable to the
             582      development of retail sales of goods, unless the tax increment was previously pledged to pay
             583      for bonds or other contractual obligations of the agency.
             584          (2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from
             585      an increase in the taxing entity's tax rate that occurs after the taxing entity committee approves
             586      the project area budget unless, at the time the taxing entity committee approves the project
             587      area budget, the taxing entity committee approves payment of those increased taxes to the
             588      agency.
             589          (b) If the taxing entity committee does not approve of payment of the increased taxes


             590      to the agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxes
             591      attributable to the tax rate increase in the same manner as other property taxes.
             592          (3) Except as the taxing entity committee otherwise agrees, an agency may not receive
             593      tax increment under an urban renewal or economic development project area budget adopted
             594      on or after the effective date of this bill:
             595          (a) that exceeds the percentage of tax increment or cumulative dollar amount of tax
             596      increment specified in the project area budget; or
             597          (b) for more tax years than specified in the project area budget.
             598          Section 8. Section 17C-1-409 is amended to read:
             599           17C-1-409. Allowable uses of tax increment and sales tax.
             600          (1) (a) An agency may use tax increment and sales tax proceeds received from a taxing
             601      entity:
             602          (i) for any of the purposes for which the use of tax increment is authorized under this
             603      title;
             604          (ii) for administrative, overhead, legal, and other operating expenses of the agency,
             605      including consultant fees and expenses under Subsection 17C-2-102 (1)(b)(ii)(B); or
             606          (iii) to pay for, including financing or refinancing, all or part of:
             607          (A) urban renewal activities in the project area from which the tax increment funds are
             608      collected, including environmental remediation activities occurring before or after adoption of
             609      the project area plan;
             610          (B) economic development or community development activities in the project area
             611      from which the tax increment funds are collected;
             612          (C) housing expenditures, projects, or programs as provided in Section 17C-1-411 or
             613      17C-1-412 ;
             614          (D) subject to Subsections (1)(c) and (6), the value of the land for and the cost of the
             615      installation and construction of any publicly owned building, facility, structure, landscaping,
             616      or other improvement within the project area from which the tax increment funds were
             617      collected; and


             618          (E) subject to Subsection (1)(d), the cost of the installation of publicly owned
             619      infrastructure and improvements outside the project area from which the tax increment funds
             620      were collected if the agency board and the community legislative body determine by resolution
             621      that the publicly owned infrastructure and improvements are of benefit to the project area.
             622          (b) The determination of the agency board and the community legislative body under
             623      Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
             624          (c) An agency may not use tax increment or sales tax proceeds received from a taxing
             625      entity for the purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal or economic
             626      development project area plan without the consent of the community legislative body.
             627          (d) An agency may not use tax increment or sales tax proceeds received from a taxing
             628      entity for the purposes stated in Subsection (1)(a)(iii)(E) under an urban renewal or economic
             629      development project area plan without the consent of the community legislative body and the
             630      taxing entity committee.
             631          (2) Sales tax proceeds that an agency receives from another public entity are not
             632      subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use
             633      Tax Incentive Payments Act.
             634          (3) An agency may use sales tax proceeds it receives under a resolution or interlocal
             635      agreement under Section 17C-4-201 for the uses authorized in the resolution or interlocal
             636      agreement.
             637          (4) (a) An agency may contract with the community that created the agency or another
             638      public entity to use tax increment to reimburse the cost of items authorized by this title to be
             639      paid by the agency that have been or will be paid by the community or other public entity.
             640          (b) If land has been or will be acquired or the cost of an improvement has been or will
             641      be paid by another public entity and the land or improvement has been or will be leased to the
             642      community, an agency may contract with and make reimbursement from tax increment funds
             643      to the community.
             644          (5) An agency created by a city of the first or second class may use tax increment from
             645      one project area in another project area to pay all or part of the value of the land for and the


             646      cost of the installation and construction of a publicly or privately owned convention center or
             647      sports complex or any building, facility, structure, or other improvement related to the
             648      convention center or sports complex, including parking and infrastructure improvements, if:
             649          (a) construction of the convention center or sports complex or related building,
             650      facility, structure, or other improvement is commenced on or before June 30, 2002; and
             651          (b) the tax increment is pledged to pay all or part of the value of the land for and the
             652      cost of the installation and construction of the convention center or sports complex or related
             653      building, facility, structure, or other improvement.
             654          (6) Notwithstanding any other provision of this title, an agency may not use tax
             655      increment to construct municipal buildings, courts or other judicial buildings, or fire stations.
             656          (7) Notwithstanding any other provision of this title, an agency may not use tax
             657      increment under an urban renewal or economic development project area plan, to pay any of
             658      the cost of the land, infrastructure, or construction of a stadium or arena constructed after
             659      March 1, 2005, unless the tax increment has been pledged for that purpose before February 15,
             660      2005.
             661          (8) (a) An agency may not use tax increment to pay the debt service of or any other
             662      amount related to a bond issued or other obligation incurred if the bond was issued or the
             663      obligation was incurred:
             664          (i) by an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation
             665      Act;
             666          (ii) on or after the effective date of this bill; and
             667          (iii) to finance a telecommunication facility.
             668          (b) Subsection (8)(a) may not be construed to prohibit the refinancing, restatement, or
             669      refunding of a bond issued before the effective date of this bill.
             670          Section 9. Section 17C-1-411 is amended to read:
             671           17C-1-411. Use of tax increment for housing and for relocating mobile home
             672      park residents -- Funds to be held in separate accounts.
             673          (1) An agency may:


             674          (a) use tax increment from a project area to pay all or part of the value of the land for
             675      and the cost of installation, construction, and rehabilitation of any building, facility, structure,
             676      or other housing improvement, including infrastructure improvements related to housing,
             677      located in any project area within the agency's boundaries; and
             678          (b) use up to 20% of tax increment:
             679          (i) outside of project areas for the purpose of:
             680          (A) replacing housing units lost by urban renewal, economic development, or
             681      community development; or
             682          (B) increasing, improving, and preserving generally the affordable housing supply [of
             683      the community that created] within the boundary of the agency; or
             684          (ii) for relocating mobile home park residents displaced by development, whether
             685      inside or outside a project area.
             686          (2) (a) Each agency shall separately account for funds allocated under this section.
             687          (b) Interest earned by the housing fund and any payments or repayments made to the
             688      agency for loans, advances, or grants of any kind from the fund, shall accrue to the housing
             689      fund.
             690          (c) Each agency designating a housing fund under this section shall use the fund for:
             691          (i) the purposes set forth in this section; or
             692          (ii) the purposes set forth in this title relating to the urban renewal, economic
             693      development, or community development project area from which the funds originated.
             694          (3) An agency may lend, grant, or contribute funds from the housing fund to a person,
             695      public entity, housing authority, private entity or business, or nonprofit corporation for
             696      affordable housing.
             697          Section 10. Section 17C-1-412 is amended to read:
             698           17C-1-412. Use of funds allocated for housing -- Separate accounting required --
             699      Issuance of bonds for housing -- Action to compel agency to provide housing funds.
             700          (1) (a) Each agency shall use all funds allocated for housing under this section to:
             701          (i) pay part or all of the cost of land or construction of income targeted housing within


             702      the [community that created] boundary of the agency, if practicable in a mixed income
             703      development or area;
             704          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
             705      [community that created] boundary of the agency;
             706          (iii) lend, grant, or contribute money to a person, public entity, housing authority,
             707      private entity or business, or nonprofit corporation for income targeted housing within the
             708      boundary of the agency;
             709          (iv) plan or otherwise promote income targeted housing within the boundary of the
             710      agency;
             711          [(iii)] (v) pay part or all of the cost of land or installation, construction, or
             712      rehabilitation of any building, facility, structure, or other housing improvement, including
             713      infrastructure improvements, related to housing located in a project area where blight has been
             714      found to exist;
             715          [(iv)] (vi) replace housing units lost as a result of the urban renewal, economic
             716      development, or community development;
             717          [(v)] (vii) make payments on or establish a reserve fund for bonds:
             718          (A) issued by the agency, the community, or the housing authority that provides
             719      income targeted housing within the community; and
             720          (B) all or part of the proceeds of which are used within the community for the
             721      purposes stated in Subsection (1)(a)(i), (ii), (iii), [or] (iv), (v), or (vi);
             722          [(vi)] (viii) if the community's fair share ratio at the time of the first adoption of the
             723      project area budget is at least 1.1 to 1.0, make payments on bonds:
             724          (A) that were previously issued by the agency, the community, or the housing
             725      authority that provides income targeted housing within the community; and
             726          (B) all or part of the proceeds of which were used within the community for the
             727      purposes stated in Subsection (1)(a)(i), (ii), (iii), [or] (iv), (v), or (vi); or
             728          [(vii)] (ix) relocate mobile home park residents displaced by an urban renewal,
             729      economic development, or community development project.


             730          (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all
             731      or any portion of housing funds to:
             732          (i) the community for use as provided under Subsection (1)(a);
             733          (ii) the housing authority that provides income targeted housing within the community
             734      for use in providing income targeted housing within the community; or
             735          (iii) the Olene Walker Housing Loan Fund, established under Title 9, Chapter 4, Part
             736      7, Olene Walker Housing Loan Fund, for use in providing income targeted housing within the
             737      community.
             738          (2) The agency or community shall separately account for the housing funds, together
             739      with all interest earned by the housing funds and all payments or repayments for loans,
             740      advances, or grants from the housing funds.
             741          [(3) In using housing funds under Subsection (1)(a), an agency may lend, grant, or
             742      contribute housing funds to a person, public body, housing authority, private entity or
             743      business, or nonprofit organization for use as provided in Subsection (1)(a).]
             744          [(4)] (3) An agency may:
             745          (a) issue bonds from time to time to finance a housing undertaking under this section,
             746      including the payment of principal and interest upon advances for surveys and plans or
             747      preliminary loans; and
             748          (b) issue refunding bonds for the payment or retirement of bonds under Subsection
             749      [(4)] (3)(a) previously issued by the agency.
             750          [(5)] (4) (a) If an agency fails to provide housing funds in accordance with the project
             751      area budget and, if applicable, the housing plan adopted under Subsection 17C-2-204 (2), the
             752      loan fund board may bring legal action to compel the agency to provide the housing funds.
             753          (b) In an action under Subsection [(5)] (4)(a), the court:
             754          (i) shall award the loan fund board a reasonable attorney fee, unless the court finds
             755      that the action was frivolous; and
             756          (ii) may not award the agency its attorney fees, unless the court finds that the action
             757      was frivolous.


             758          Section 11. Section 17C-1-415 is enacted to read:
             759          17C-1-415. Obligations of agencies that use tax increment to pay for
             760      communication infrastructure or facility.
             761          An agency that uses tax increment on or after the effective date of this bill to pay for
             762      communication infrastructure or a communication facility:
             763          (1) may not make or grant any undue or unreasonable preference or advantage to a
             764      provider of communication service with respect to the communication infrastructure or
             765      communication facility for which the tax increment is used; and
             766          (2) shall allow the communication infrastructure and facilities for which tax increment
             767      is used to be used by any other provider of communication service on a fair, equitable, and
             768      nondiscriminatory basis.
             769          Section 12. Section 17C-1-601 is amended to read:
             770           17C-1-601. Annual agency budget -- Fiscal year -- Public hearing required --
             771      Auditor forms -- Requirement to file form.
             772          (1) Each agency shall prepare and its board adopt an annual budget of revenues and
             773      expenditures for the agency for each fiscal year.
             774          (2) Each annual agency budget shall be adopted:
             775          (a) for an agency created by a city or town, before June 22; or
             776          (b) for an agency created by a county, before December 15.
             777          (3) The agency's fiscal year shall be the same as the fiscal year of the community that
             778      created the agency.
             779          (4) (a) Before adopting an annual budget, each agency board shall hold a public
             780      hearing on the annual budget.
             781          (b) Each agency shall provide notice of the public hearing on the annual budget by:
             782          (i) publishing at least one notice in a newspaper of general circulation within the
             783      agency boundaries, one week before the public hearing; or
             784          (ii) if there is no newspaper of general circulation within the agency boundaries,
             785      posting a notice of the public hearing in at least three public places within the agency


             786      boundaries.
             787          (c) Each agency shall make the annual budget available for public inspection at least
             788      three days before the date of the public hearing.
             789          (5) The state auditor shall prescribe the budget forms and the categories to be
             790      contained in each agency budget, including:
             791          (a) revenues and expenditures for the budget year;
             792          (b) legal fees; and
             793          (c) administrative costs, including rent, supplies, and other materials, and salaries of
             794      agency personnel.
             795          (6) (a) Within [30] 90 days after adopting an annual budget, each agency board shall
             796      file a copy of the annual budget with the auditor of the county in which the agency is located,
             797      the State Tax Commission, the state auditor, the State Board of Education, and each taxing
             798      entity that levies a tax on property from which the agency collects tax increment.
             799          (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
             800      state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
             801      state auditor.
             802          Section 13. Section 17C-2-110 is amended to read:
             803           17C-2-110. Amending an urban renewal project area plan.
             804          (1) An adopted urban renewal project area plan may be amended as provided in this
             805      section.
             806          (2) If an agency proposes to amend an adopted urban renewal project area plan to
             807      enlarge the project area:
             808          (a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
             809      a project area plan apply equally to the proposed amendment as if it were a proposed project
             810      area plan;
             811          (b) for a pre-July 1, 1993 project area plan, the base year taxable value for the new
             812      area added to the project area shall be determined under Subsection 17C-1-102 (6)(a)(i) using
             813      the effective date of the amended project area plan;


             814          (c) for a post-June 30, 1993 project area plan:
             815          (i) the base year taxable value for the new area added to the project area shall be
             816      determined under Subsection 17C-1-102 (6)[(b)](a)(ii) using the date of the taxing entity
             817      committee's consent referred to in Subsection (2)(c)(ii); and
             818          (ii) the agency shall obtain the consent of the taxing entity committee before the
             819      agency may collect tax increment from the area added to the project area by the amendment;
             820          (d) the agency shall make a finding regarding the existence of blight in the area
             821      proposed to be added to the project area by following the procedure set forth in Subsections
             822      17C-2-102 (1)(a)(i) and (ii); and
             823          (e) the agency need not make a finding regarding the existence of blight in the project
             824      area as described in the original project area plan, if the agency made a finding of the
             825      existence of blight regarding that project area in connection with adoption of the original
             826      project area plan.
             827          (3) If a proposed amendment does not propose to enlarge an urban renewal project
             828      area, an agency board may adopt a resolution approving an amendment to an adopted project
             829      area plan after:
             830          (a) the agency gives notice, as provided in Section 17C-2-502 , of the proposed
             831      amendment and of the public hearing required by Subsection (3)(b);
             832          (b) the agency board holds a public hearing on the proposed amendment that meets the
             833      requirements of a plan hearing;
             834          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             835      amendment proposes:
             836          (i) to enlarge the area within the project area from which tax increment is collected;
             837          (ii) to permit the agency to receive a greater percentage of tax increment or to receive
             838      tax increment for a longer period of time, or both, than allowed under the adopted project area
             839      plan; or
             840          (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
             841      expand the area from which tax increment is collected to exceed 100 acres of private property;


             842      and
             843          (d) the agency obtains the consent of the legislative body or governing board of each
             844      taxing entity affected, if the amendment proposes to permit the agency to receive, from less
             845      than all taxing entities, a greater percentage of tax increment or to receive tax increment for a
             846      longer period of time, or both, than allowed under the adopted project area plan.
             847          (4) (a) An adopted urban renewal project area plan may be amended without
             848      complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a)
             849      and (b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
             850      amendment:
             851          (i) makes a minor adjustment in the legal description of a project area boundary
             852      requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
             853      or
             854          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             855      because the agency determines that:
             856          (A) the parcel is no longer blighted; or
             857          (B) inclusion of the parcel is no longer necessary or desirable to the project area.
             858          (b) An amendment removing a parcel of real property from a project area under
             859      Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
             860      parcel being removed.
             861          (5) (a) An amendment approved by board resolution under this section may not take
             862      effect until adopted by ordinance of the legislative body of the community in which the project
             863      area that is the subject of the project area plan being amended is located.
             864          (b) Upon a community legislative body passing an ordinance adopting an amendment
             865      to a project area plan, the agency whose project area plan was amended shall comply with the
             866      requirements of Section 17C-2-109 to the same extent as if the amendment were a project area
             867      plan.
             868          Section 14. Section 17C-2-201 is amended to read:
             869           17C-2-201. Project area budget -- Requirements for adopting -- Contesting the


             870      budget or procedure -- Time limit.
             871          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993 urban
             872      renewal project area plan with tax increment, the agency shall, subject to Section 17C-2-202 ,
             873      adopt a project area budget as provided in this part.
             874          (b) An urban renewal project area budget adopted on or after the effective date of this
             875      bill shall specify:
             876          (i) the number of tax years for which the agency will be allowed to receive tax
             877      increment from the project area; and
             878          (ii) the percentage of tax increment or maximum cumulative dollar amount of tax
             879      increment the agency is entitled to receive from the project area under the project area budget.
             880          (2) To adopt an urban renewal project area budget, the agency shall:
             881          (a) prepare a draft of a project area budget;
             882          (b) make a copy of the draft project area budget available to the public at the agency's
             883      offices during normal business hours;
             884          (c) provide notice of the budget hearing as required by Part 5, Urban Renewal Notice
             885      Requirements;
             886          (d) hold a public hearing on the draft project area budget and, at that public hearing,
             887      allow public comment on:
             888          (i) the draft project area budget; and
             889          (ii) whether the draft project area budget should be revised, adopted, or rejected;
             890          (e) (i) if required under Subsection 17C-2-204 (1), obtain the approval of the taxing
             891      entity committee on the draft project area budget or a revised version of the draft project area
             892      budget; or
             893          (ii) if applicable, comply with the requirements of Subsection 17C-2-204 (2); and
             894          (f) after the budget hearing, hold a board meeting in the same meeting as the public
             895      hearing or in a subsequent meeting to:
             896          (i) consider comments made and information presented at the public hearing relating
             897      to the draft project area budget; and


             898          (ii) adopt by resolution the draft project area budget, with any revisions, as the project
             899      area budget.
             900          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
             901      under Subsection (2)(f), any person in interest may contest the project area budget or the
             902      procedure used to adopt the project area budget if the budget or procedure fails to comply with
             903      applicable statutory requirements.
             904          (b) After the 30-day period under Subsection (3)(a) expires, no person may contest the
             905      project area budget or procedure used to adopt the project area budget for any cause.
             906          Section 15. Section 17C-3-109 is amended to read:
             907           17C-3-109. Amending an economic development project area plan.
             908          (1) An adopted economic development project area plan may be amended as provided
             909      in this section.
             910          (2) If an agency proposes to amend an adopted economic development project area
             911      plan to enlarge the project area:
             912          (a) the requirements under this part that apply to adopting a project area plan apply
             913      equally to the proposed amendment as if it were a proposed project area plan;
             914          (b) the base year taxable value for the new area added to the project area shall be
             915      determined under Subsection 17C-1-102 (6)[(b)](a)(ii) using the date of the taxing entity
             916      committee's consent referred to in Subsection (2)(c); and
             917          (c) the agency shall obtain the consent of the taxing entity committee before the
             918      agency may collect tax increment from the area added to the project area by the amendment.
             919          (3) If a proposed amendment does not propose to enlarge an economic development
             920      project area, an agency board may adopt a resolution approving an amendment to an adopted
             921      project area plan after:
             922          (a) the agency gives notice, as provided in Section 17C-3-402 , of the proposed
             923      amendment and of the public hearing required by Subsection (3)(b);
             924          (b) the agency board holds a public hearing on the proposed amendment that meets the
             925      requirements of a plan hearing;


             926          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             927      amendment proposes:
             928          (i) to enlarge the area within the project area from which tax increment is collected; or
             929          (ii) to permit the agency to receive a greater percentage of tax increment or to receive
             930      tax increment for a longer period of time than allowed under the adopted project area plan; and
             931          (d) the agency obtains the consent of the legislative body or governing board of each
             932      taxing entity affected, if the amendment proposes to permit the agency to receive, from less
             933      than all taxing entities, a greater percentage of tax increment or to receive tax increment for a
             934      longer period of time, or both, than allowed under the adopted project area plan.
             935          (4) (a) An adopted project area plan may be amended without complying with the
             936      notice and public hearing requirements of Subsections (2)(a) and (3)(a) and (b) and without
             937      obtaining taxing entity committee approval under Subsection (3)(c) if the amendment:
             938          (i) makes a minor adjustment in the legal description of a project area boundary
             939      requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
             940      or
             941          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             942      because the agency determines that inclusion of the parcel is no longer necessary or desirable
             943      to the project area.
             944          (b) An amendment removing a parcel of real property from a project area under
             945      Subsection (4)(a) may not be made without the consent of the record property owner of the
             946      parcel being removed.
             947          (5) (a) An amendment approved by board resolution under this section may not take
             948      effect until adopted by ordinance of the legislative body of the community in which the project
             949      area that is the subject of the project area plan being amended is located.
             950          (b) Upon a community legislative body passing an ordinance adopting an amendment
             951      to a project area plan, the agency whose project area plan was amended shall comply with the
             952      requirements of Section 17C-3-108 to the same extent as if the amendment were a project area
             953      plan.


             954          Section 16. Section 17C-3-201 is amended to read:
             955           17C-3-201. Economic development project area budget -- Requirements for
             956      adopting -- Contesting the budget or procedure -- Time limit.
             957          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993
             958      economic development project area plan with tax increment, the agency shall, subject to
             959      Section 17C-3-202 , adopt a project area budget as provided in this part.
             960          (b) An economic development project area budget adopted on or after the effective
             961      date of this bill shall specify:
             962          (i) the number of tax years for which the agency will be allowed to receive tax
             963      increment from the project area; and
             964          (ii) the percentage of tax increment or maximum cumulative dollar amount of tax
             965      increment the agency is entitled to receive from the project area under the project area budget.
             966          (2) To adopt an economic development project area budget, the agency shall:
             967          (a) prepare a draft of an economic development project area budget;
             968          (b) make a copy of the draft project area budget available to the public at the agency's
             969      offices during normal business hours;
             970          (c) provide notice of the budget hearing as required by Part 4, Economic Development
             971      Notice Requirements;
             972          (d) hold a public hearing on the draft project area budget and, at that public hearing,
             973      allow public comment on:
             974          (i) the draft project area budget; and
             975          (ii) whether the draft project area budget should be revised, adopted, or rejected;
             976          (e) (i) if required under Subsection 17C-3-203 (1), obtain the approval of the taxing
             977      entity committee on the draft project area budget or a revised version of the draft project area
             978      budget; or
             979          (ii) if applicable, comply with the requirements of Subsection 17C-3-203 (2); and
             980          (f) after the budget hearing, hold a board meeting in the same meeting as the public
             981      hearing or in a subsequent meeting to:


             982          (i) consider comments made and information presented at the public hearing relating
             983      to the draft project area budget; and
             984          (ii) adopt by resolution the draft project area budget, with any revisions, as the project
             985      area budget.
             986          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
             987      under Subsection (2)(f), any person in interest may contest the project area budget or the
             988      procedure used to adopt the project area budget if the budget or procedure fails to comply with
             989      applicable statutory requirements.
             990          (b) After the 30-day period under Subsection (3)(a) expires, no person may contest the
             991      project area budget or procedure used to adopt the project area budget for any cause.
             992          Section 17. Section 17C-3-202 is amended to read:
             993           17C-3-202. Part of tax increment funds in an economic development project area
             994      budget to be used for housing -- Waiver of requirement.
             995          (1) This section applies only to an economic development project area budget adopted
             996      on or after May 1, 2000, but before the effective date of this bill.
             997          [(1)] (2) (a) Except as provided in Subsection [(1)] (2)(b), each economic
             998      development project area budget adopted on or after May 1, 2000 but before the effective date
             999      of this bill that provides for more than $100,000 of annual tax increment to be paid to the
             1000      agency shall allocate at least 20% of the tax increment for housing as provided in Section
             1001      17C-1-412 .
             1002          (b) The 20% requirement of Subsection [(1)] (2)(a) may be waived:
             1003          (i) in part or whole by the mutual consent of the loan fund board and the taxing entity
             1004      committee if they determine that 20% of tax increment is more than is needed to address the
             1005      community's need for income targeted housing; or
             1006          (ii) in fifth and sixth class counties, by the taxing entity committee for economic
             1007      development project area budgets adopted on or after May 1, 2002 but before the effective
             1008      date of this bill, if the economic development project area consists of an area without housing
             1009      units.


             1010          [(2)] (3) An economic development project area budget not required under Subsection
             1011      [(1)] (2)(a) to allocate tax increment for housing may allocate 20% of tax increment payable to
             1012      the agency over the life of the project area for housing as provided in Section 17C-1-412 if the
             1013      project area budget is under a project area plan that is adopted on or after July 1, 1998.
             1014          Section 18. Section 17C-3-203 is amended to read:
             1015           17C-3-203. Consent of taxing entity committee required for economic
             1016      development project area budget -- Exception.
             1017          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), each
             1018      agency shall obtain the consent of the taxing entity committee for each economic development
             1019      project area budget under a post-June 30, 1993 economic development project area plan before
             1020      the agency may collect any tax increment from the project area.
             1021          (b) For an economic development project area budget adopted from July 1, 1998
             1022      through May 1, 2000 that allocates 20% or more of the tax increment for housing as provided
             1023      in Section 17C-1-412 , an agency:
             1024          (i) need not obtain the consent of the taxing entity committee for the project area
             1025      budget; and
             1026          (ii) may not collect any tax increment from all or part of the project area until after:
             1027          (A) the loan fund board has certified the project area budget as complying with the
             1028      requirements of Section 17C-1-412 ; and
             1029          (B) the agency board has approved and adopted the project area budget by a
             1030      two-thirds vote.
             1031          (2) (a) Before a taxing entity committee may consent to an economic development
             1032      project area budget adopted on or after May 1, 2000 that [is required under Subsection
             1033      17C-3-202 (1)(a) to allocate] allocates 20% of tax increment for housing under Subsection
             1034      17C-3-202 (2)(a) or (3), the agency shall:
             1035          (i) adopt a housing plan showing the uses for the housing funds; and
             1036          (ii) provide a copy of the housing plan to the taxing entity committee and the loan
             1037      fund board.


             1038          (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency
             1039      shall provide a copy of the amendment to the taxing entity committee and the loan fund board.
             1040          Section 19. Section 17C-4-201 is amended to read:
             1041           17C-4-201. Consent of a taxing entity or public entity to an agency receiving tax
             1042      increment or sales tax funds for community development project.
             1043          (1) An agency may negotiate with a taxing entity and public [agency] entity for the
             1044      taxing entity's or public [agency's] entity's consent to the agency receiving the entity's or
             1045      public [agency's] entity's tax increment or sales tax revenues, or both, for the purpose of
             1046      providing funds to carry out a proposed or adopted community development project area plan.
             1047          (2) The consent of a taxing entity or public [agency] entity under Subsection (1) may
             1048      be expressed in:
             1049          (a) a resolution adopted by the taxing entity or public [agency] entity; or
             1050          (b) an interlocal agreement, under Title 11, Chapter 13, Interlocal Cooperation Act,
             1051      between the taxing entity or public [agency] entity and the agency.
             1052          (3) A resolution adopted or interlocal agreement entered under Subsection (2) on or
             1053      after the effective date of this bill shall specify:
             1054          (a) if the resolution or interlocal agreement provides for the agency to be paid tax
             1055      increment:
             1056          (i) the method of calculating the amount of the taxing entity's tax increment from the
             1057      project area that will be paid to the agency, including the agreed base year and agreed base
             1058      taxable value;
             1059          (ii) the number of tax years that the agency will be paid the taxing entity's tax
             1060      increment from the project area; and
             1061          (iii) the percentage of the taxing entity's tax increment or maximum cumulative dollar
             1062      amount of the taxing entity's tax increment that the agency will be paid; and
             1063          (b) if the resolution or interlocal agreement provides for the agency to be paid a public
             1064      entity's sales tax revenue:
             1065          (i) the method of calculating the amount of the public entity's sales tax revenue that


             1066      the agency will be paid;
             1067          (ii) the number of tax years that the agency will be paid the sales tax revenue; and
             1068          (iii) the percentage of sales tax revenue or the maximum cumulative dollar amount of
             1069      sales tax revenue that the agency will be paid.
             1070          (4) (a) Unless the taxing entity otherwise agrees, an agency may not be paid a taxing
             1071      entity's tax increment:
             1072          (i) that exceeds the percentage or maximum cumulative dollar amount of tax
             1073      increment specified in the resolution or interlocal agreement under Subsection (2); or
             1074          (ii) for more tax years than specified in the resolution or interlocal agreement under
             1075      Subsection (2).
             1076          (b) Unless the public entity otherwise agrees, an agency may not be paid a public
             1077      entity's sales tax revenue:
             1078          (i) that exceeds the percentage or maximum cumulative dollar amount of sales tax
             1079      revenue specified in the resolution or interlocal agreement under Subsection (2); or
             1080          (ii) for more tax years than specified in the resolution or interlocal agreement under
             1081      Subsection (2).
             1082          [(3)] (5) A school district may consent to an agency receiving tax increment from the
             1083      school district's basic levy only to the extent that the school district also consents to the agency
             1084      receiving tax increment from the school district's local levy.
             1085          [(4)] (6) (a) A resolution or interlocal agreement under this section may be amended
             1086      from time to time.
             1087          (b) Each amendment of a resolution or interlocal agreement shall be subject to and
             1088      receive the benefits of the provisions of this part to the same extent as if the amendment were
             1089      an original resolution or interlocal agreement.
             1090          [(5)] (7) A taxing entity's or public [agency's] entity's consent to an agency receiving
             1091      funds under this section is not subject to the requirements of Section 10-8-2 .
             1092          Section 20. Section 17C-4-202 is amended to read:
             1093           17C-4-202. Resolution or interlocal agreement to provide funds for the


             1094      community development project area plan -- Notice -- Effective date of resolution or
             1095      interlocal agreement -- Time to contest resolution or interlocal agreement -- Availability
             1096      of resolution or interlocal agreement.
             1097          (1) The approval and adoption of each resolution or interlocal agreement under
             1098      Subsection 17C-4-201 (2) shall be in an open and public meeting.
             1099          (2) (a) Upon the adoption of a resolution or interlocal agreement under Section
             1100      17C-4-201 , the agency shall provide notice as provided in Subsection (2)(b) by:
             1101          (i) publishing or causing to be published a notice in a newspaper of general circulation
             1102      within the agency's boundaries; or
             1103          (ii) if there is no newspaper of general circulation within the agency's boundaries,
             1104      causing a notice to be posted in at least three public places within the agency's boundaries.
             1105          (b) Each notice under Subsection (2)(a) shall:
             1106          (i) set forth a summary of the resolution or interlocal agreement; and
             1107          (ii) include a statement that the resolution or interlocal agreement is available for
             1108      general public inspection and the hours of inspection.
             1109          (3) The resolution or interlocal agreement shall become effective on the date of:
             1110          (a) if notice was published under Subsection (2)(a), publication of the notice; or
             1111          (b) if notice was posted under Subsection (2)(a), posting of the notice.
             1112          (4) (a) For a period of 30 days after the effective date of the resolution or interlocal
             1113      agreement under Subsection (3), any person in interest may contest the resolution or interlocal
             1114      agreement or the procedure used to adopt the resolution or interlocal agreement if the
             1115      resolution or interlocal agreement or procedure fails to comply with applicable statutory
             1116      requirements.
             1117          (b) After the 30-day period under Subsection (4)(a) expires, no person may contest the
             1118      resolution or interlocal agreement for any cause.
             1119          (5) Each agency that is to receive funds under a resolution or interlocal agreement
             1120      under Section 17C-4-201 and each taxing entity or public [agency] entity that approves a
             1121      resolution or enters into an interlocal agreement under Section 17C-4-201 shall make the


             1122      resolution or interlocal agreement, as the case may be, available at its offices to the general
             1123      public for inspection and copying during normal business hours.
             1124          Section 21. Section 17C-4-203 is amended to read:
             1125           17C-4-203. Requirement to file a copy of the resolution or interlocal agreement
             1126      -- County payment of tax increment to the agency.
             1127          (1) Each agency that is to receive funds under a resolution or interlocal agreement
             1128      under Section 17C-4-201 shall, within 30 days after the effective date of the resolution or
             1129      interlocal agreement, file a copy of it with:
             1130          (a) the State Tax Commission, the State Board of Education, and the state auditor; and
             1131          (b) the auditor of the county in which the project area is located, if the resolution or
             1132      interlocal agreement provides for the agency to receive tax increment from the taxing entity or
             1133      public [agency] entity that adopted the resolution or entered into the interlocal agreement.
             1134          (2) Each county that collects property tax on property within a community
             1135      development project area shall, in the manner and at the time provided in Section 59-2-1365 ,
             1136      pay and distribute to the agency the tax increment that the agency is entitled to receive under a
             1137      resolution approved or an interlocal agreement adopted under Section 17C-4-201 .
             1138          Section 22. Effective date.
             1139          If approved by two-thirds of all the members elected to each house, this bill takes effect
             1140      upon approval by the governor, or the day following the constitutional time limit of Utah
             1141      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             1142      the date of veto override.
             1143          Section 23. Revisor instructions.
             1144          It is the intent of the Legislature that, in preparing the Utah Code database for
             1145      publication, the Office of Legislative Research and General Counsel shall replace the language
             1146      "the effective date of this bill" with the bill's actual effective date.


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