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S.B. 205

             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 agencies.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies the definitions of "base taxable value," "inactive airport site," and "project
             14      area budget";
             15          .    authorizes an agency created by a county to undertake urban renewal, economic
             16      development, or community development within a town under certain
             17      circumstances;
             18          .    modifies a provision relating to a public entity's assistance or cooperation in urban
             19      renewal, economic development, or community development;
             20          .    modifies a provision relating to a resolution or interlocal agreement authorizing an
             21      agency to be paid tax increment or sales tax revenue;
             22          .    requires the taxing entity committee to adopt an organizing resolution at its first
             23      meeting;
             24          .    modifies the amount of tax increment to be paid under an urban renewal project
             25      area plan for an inactive airport site;
             26          .    extends the length of time that an agency may be authorized to be paid tax
             27      increment under an urban renewal project area budget for an inactive industrial site


             28      or an inactive airport site from 15 to 20 years;
             29          .    requires the applicable project area budget, resolution, or interlocal agreement to
             30      specify limits on the amount of tax increment and sales tax revenue that an agency
             31      will be paid and prohibits an agency from being paid more tax increment or sales
             32      tax than specified, unless otherwise agreed;
             33          .    prohibits an agency from using tax increment to pay for bonds or other obligations
             34      for financing a telecommunications facility;
             35          .    modifies a provision relating to funds for income targeted housing;
             36          .    imposes obligations on an agency that uses tax increment to pay for communication
             37      infrastructure or a communication facility;
             38          .    extends from 30 to 90 days the period of time within which an agency is required to
             39      file a copy of its annual budget after adopting the budget;
             40          .    narrows application of a provision requiring an agency to allocate tax increment
             41      funds for housing to economic development project area budgets adopted before
             42      May 12, 2009; and
             43          .    makes technical changes.
             44      Monies Appropriated in this Bill:
             45          None
             46      Other Special Clauses:
             47          None
             48      Utah Code Sections Affected:
             49      AMENDS:
             50          17C-1-102, as last amended by Laws of Utah 2008, Chapters 125 and 330
             51          17C-1-204, as renumbered and amended by Laws of Utah 2006, Chapter 359
             52          17C-1-207, as renumbered and amended by Laws of Utah 2006, Chapter 359
             53          17C-1-401, as renumbered and amended by Laws of Utah 2006, Chapter 359
             54          17C-1-402, as last amended by Laws of Utah 2007, Chapter 364
             55          17C-1-405, as last amended by Laws of Utah 2007, Chapter 364
             56          17C-1-407, as renumbered and amended by Laws of Utah 2006, Chapter 359
             57          17C-1-409, as last amended by Laws of Utah 2007, Chapter 364
             58          17C-1-411, as last amended by Laws of Utah 2007, Chapter 364


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


             90          (b) for an agency created by a city or town, the boundaries of the city or town.
             91          (4) "Annual income" has the meaning as defined under regulations of the U.S.
             92      Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
             93      superseded by replacement regulations.
             94          (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             95          (6) "Base taxable value" means:
             96          (a) for an urban renewal or economic development project area, the taxable value of
             97      the property within a project area from which tax increment will be collected, as shown upon
             98      the assessment roll last equalized before:
             99          [(a)] (i) for a pre-July 1, 1993 project area plan, the effective date of the project area
             100      plan;
             101          [(b)] (ii) for a post-June 30, 1993 project area plan:
             102          [(i)] (A) the date of the taxing entity committee's approval of the first project area
             103      budget; or
             104          [(ii)] (B) if no taxing entity committee approval is required for the project area budget,
             105      the later of:
             106          [(A)] (I) the date the project area plan is adopted by the community legislative body;
             107      and
             108          [(B)] (II) the date the agency adopts the first project area budget;
             109          [(c)] (iii) for a project on an inactive industrial site, a year after the date on which the
             110      inactive industrial site is sold for remediation and development; or
             111          [(d)] (iv) for a project on an inactive airport site, a year after the later of:
             112          [(i)] (A) the date on which the inactive airport site is sold for remediation and
             113      development; and
             114          [(ii)] (B) the date on which the airport that had been operated on the inactive airport
             115      site ceased operations[.]; and
             116          (b) for a community development project area, the agreed value specified in a
             117      resolution or interlocal agreement under Subsection 17C-4-201 (2).
             118          (7) "Basic levy" means the portion of a school district's tax levy constituting the
             119      minimum basic levy under Section 59-2-902 .
             120          (8) "Blight" or "blighted" means the condition of an area that meets the requirements of


             121      Subsection 17C-2-303 (1).
             122          (9) "Blight hearing" means a public hearing under Subsection 17C-2-102 (1)(a)(i)(C)
             123      and Section 17C-2-302 regarding the existence or nonexistence of blight within the proposed
             124      urban renewal project area.
             125          (10) "Blight study" means a study to determine the existence or nonexistence of blight
             126      within a survey area as provided in Section 17C-2-301 .
             127          (11) "Board" means the governing body of an agency, as provided in Section
             128      17C-1-203 .
             129          (12) "Budget hearing" means the public hearing on a draft project area budget required
             130      under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or Subsection
             131      17C-3-201 (2)(d) for an economic development project area budget.
             132          (13) "Combined incremental value" means the combined total of all incremental values
             133      from all urban renewal project areas, except project areas that contain some or all of a military
             134      installation or inactive industrial site, within the agency's boundaries under adopted project area
             135      plans and adopted project area budgets at the time that a project area budget for a new urban
             136      renewal project area is being considered.
             137          (14) "Community" means a county, city, or town.
             138          (15) "Community development" means development activities within a community,
             139      including the encouragement, promotion, or provision of development.
             140          (16) "Economic development" means to promote the creation or retention of public or
             141      private jobs within the state through:
             142          (a) planning, design, development, construction, rehabilitation, business relocation, or
             143      any combination of these, within a community; and
             144          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             145      parking, public, or other facilities, or other improvements that benefit the state or a 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 subsidized
             154      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, contaminant,
             161      or toxic substance, or identified as hazardous to human health or the environment, under state
             162      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 that
             191      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 plan,
             222      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, or
             297      any combination of these, existing structures in a project area;
             298          (iv) providing open space, including streets and other public grounds and space around
             299      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 authorizing
             312      agency's boundaries or within the boundaries of the authorizing community if the project area
             313      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 development,
             316      or community development activities in the authorizing agency's project area or within the
             317      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 that:
             330          (A) is located within the boundary of a town, as defined in Section 10-1-104 ; and
             331          (B) comprises some or all of an inactive industrial site.
             332          (b) A county agency may undertake urban renewal, economic development, or
             333      community development on industrial property if the record property owner of the industrial
             334      property submits a written request to the county agency to do so.
             335          (c) If a county agency undertakes urban renewal, economic development, or
             336      community development on industrial property:
             337          (i) the county agency may act in all respects as if the project area that includes the


             338      industrial property were within the county agency's boundary;
             339          (ii) the board of the county agency has each right, power, and privilege with respect to
             340      the project area as if the project area were within the county agency's boundary; and
             341          (iii) the county agency may be paid tax increment to the same extent as if the project
             342      area were within the county agency's boundary.
             343          (d) A project area plan for a project on industrial property that is approved by the
             344      county agency shall be adopted by ordinance of the legislative body of the county in which the
             345      project area is located.
             346          Section 3. Section 17C-1-207 is amended to read:
             347           17C-1-207. Public entities may assist with urban renewal, economic development,
             348      or community development project.
             349          (1) In order to assist and cooperate in the planning, undertaking, construction, or
             350      operation of [an] urban renewal, economic development, or community development [project
             351      located] within the area in which it is authorized to act, a public entity may:
             352          (a) (i) provide or cause to be furnished [adjacent to or in connection with an urban
             353      renewal, economic development, or community development project]:
             354          (A) parks, playgrounds, or other recreational facilities;
             355          (B) community, educational, water, sewer, or drainage facilities; or
             356          (C) any other works which the public entity is otherwise empowered to undertake;
             357          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
             358      replan streets, roads, roadways, alleys, sidewalks, or other places;
             359          (iii) plan or replan, zone or rezone any part of a project area and make any legal
             360      exceptions from building regulations and ordinances;
             361          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
             362      rights of any holder of the bonds;
             363          (v) enter into an agreement with another public entity concerning action to be taken
             364      pursuant to any of the powers granted in this title;
             365          (vi) do any and all things necessary to aid or cooperate in the planning or carrying out
             366      of [an] the urban renewal, economic development, or community development [project];
             367          (vii) in connection with the project area plan, become obligated to the extent
             368      authorized and funds have been made available to make required improvements or construct


             369      required structures; and
             370          (viii) lend, grant, or contribute funds to an agency for an urban renewal, economic
             371      development, or community development project; and
             372          (b) 15 days after posting public notice:
             373          (i) purchase or otherwise acquire property or lease property from an agency; or
             374          (ii) sell, grant, convey, or otherwise dispose of the public entity's property or lease the
             375      public entity's property to an agency.
             376          (2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
             377      may extend over any period.
             378          (3) A grant or contribution of funds from a public entity to an agency is not subject to
             379      the requirements of Section 10-8-2 .
             380          Section 4. Section 17C-1-401 is amended to read:
             381           17C-1-401. Agency receipt and use of tax increment and sales tax -- Distribution
             382      of tax increment and sales tax.
             383          (1) An agency may receive and use tax increment and sales tax, as provided in this
             384      part.
             385          (2) (a) The applicable length of time or number of years for which an agency is to be
             386      paid tax increment or sales tax under this part shall be measured:
             387          (i) for a pre-July 1, 1993 project area plan, from the first tax year regarding which the
             388      agency accepts tax increment from the project area;
             389          (ii) for a post-June 30, 1993 urban renewal or economic development project area plan,
             390      from the first tax year for which the agency receives tax increment under the project area
             391      budget; or
             392          (iii) for a community development project area plan, as indicated in the resolution or
             393      interlocal agreement of a taxing entity that establishes the agency's right to receive tax
             394      increment or sales tax.
             395          (b) Tax increment may not be paid to an agency for a tax year prior to the tax year
             396      following:
             397          (i) for an urban renewal or economic development project area plan, the effective date
             398      of the project area plan; and
             399          (ii) for a community development project area plan, the effective date of the interlocal


             400      agreement that establishes the agency's right to receive tax increment.
             401          (3) With respect to a community development project area plan[,]:
             402          (a) a taxing entity or public entity may, by resolution or through interlocal agreement,
             403      authorize an agency to be paid any or all of that taxing entity or public entity's tax increment or
             404      sales tax for any period of time[.]; and
             405          (b) the resolution or interlocal agreement authorizing the agency to be paid tax
             406      increment or sales tax shall specify:
             407          (i) the base taxable value of the project area; and
             408          (ii) the method of calculating the amount of tax increment or sales tax to be paid to the
             409      agency.
             410          (4) With the written consent of a taxing entity, an agency may be paid tax increment,
             411      from that taxing entity's tax revenues only, in a higher percentage or for a longer period of time,
             412      or both, than otherwise authorized under this title.
             413          (5) Each county that collects property tax on property within a project area shall pay
             414      and distribute to the agency the tax increment that the agency is entitled to collect under this
             415      title, in the manner and at the time provided in Section 59-2-1365 .
             416          Section 5. Section 17C-1-402 is amended to read:
             417           17C-1-402. Taxing entity committee.
             418          (1) Each agency that adopts or proposes to adopt a post-June 30, 1993 urban renewal or
             419      economic development project area plan shall, and any other agency may, cause a taxing entity
             420      committee to be created.
             421          (2) (a) (i) Each taxing entity committee shall be composed of:
             422          (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
             423          (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
             424      appointed by resolution of the legislative body of the county in which the agency is located; or
             425          (II) in a county of the first class, one representative appointed by the county executive
             426      and one representative appointed by the legislative body of the county in which the agency is
             427      located;
             428          (C) if the agency was created by a city or town, two representatives appointed by
             429      resolution of the legislative body of that city or town;
             430          (D) one representative appointed by the State Board of Education; and


             431          (E) one representative selected by majority vote of the legislative bodies or governing
             432      boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
             433      represent the interests of those taxing entities on the taxing entity committee.
             434          (ii) (A) If the agency boundaries include only one school district, that school district
             435      shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
             436          (B) If the agency boundaries include more than one school district, those school
             437      districts shall jointly appoint the two school district representatives under Subsection
             438      (2)(a)(i)(A).
             439          (b) (i) Each taxing entity committee representative under Subsection (2)(a) shall be
             440      appointed within 30 days after the agency provides notice of the creation of the taxing entity
             441      committee.
             442          (ii) If a representative is not appointed within the time required under Subsection
             443      (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
             444      place of the missing representative until that representative is appointed.
             445          (c) (i) A taxing entity committee representative may be appointed for a set term or
             446      period of time, as determined by the appointing authority under Subsection (2)(a)(i).
             447          (ii) Each taxing entity committee representative shall serve until a successor is
             448      appointed and qualified.
             449          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
             450      an initial appointment or an appointment to replace an already serving representative, the
             451      appointing authority shall:
             452          (A) notify the agency in writing of the name and address of the newly appointed
             453      representative; and
             454          (B) provide the agency a copy of the resolution making the appointment or, if the
             455      appointment is not made by resolution, other evidence of the appointment.
             456          (ii) Each appointing authority of a taxing entity committee representative under
             457      Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
             458      representative appointed by that appointing authority.
             459          (3) At its first meeting, a taxing entity committee shall adopt an organizing resolution:
             460          (a) designating a chair and a secretary of the committee; and
             461          (b) if the committee considers it appropriate, governing the use of electronic meetings


             462      under Section 52-4-207 .
             463          [(3)] (4) A taxing entity committee represents all taxing entities regarding an urban
             464      renewal or economic development project area and may:
             465          (a) cast votes that will be binding on all taxing entities;
             466          (b) negotiate with the agency concerning a draft project area plan;
             467          (c) approve or disapprove [a] an urban renewal project area budget as provided in
             468      Section 17C-2-204 [for an urban renewal] or an economic development project area budget
             469      [and] as provided in Section 17C-3-203 [for an economic development project area budget];
             470          (d) approve or disapprove amendments to a project area budget as provided in Section
             471      17C-2-206 for an urban renewal project area budget and Section 17C-3-205 for an economic
             472      development project area budget;
             473          (e) approve exceptions to the limits on the value and size of a project area imposed
             474      under this title;
             475          (f) approve exceptions to the percentage of tax increment and the period of time that
             476      tax increment is paid to the agency as provided in this title;
             477          (g) approve the use of tax increment for publicly owned infrastructure and
             478      improvements outside of an urban renewal or economic development project area that the
             479      agency and community legislative body determine to be of benefit to the urban renewal or
             480      economic development project area, as provided in Subsection 17C-1-409 (1)(a)(iii)(D);
             481          (h) waive the restrictions imposed by Subsection 17C-2-202 (1); and
             482          (i) give other taxing entity committee approval or consent required or allowed under
             483      this title.
             484          [(4)] (5) A quorum of a taxing entity committee consists of:
             485          (a) if the urban renewal or economic development project area is located within a city
             486      or town, five members; or
             487          (b) if the urban renewal or economic development project area is not located within a
             488      city or town, four members.
             489          [(5)] (6) Taxing entity committee approval, consent, or other action requires the
             490      affirmative vote of two-thirds of all members present at a taxing entity committee meeting at
             491      which a quorum is present.
             492          [(6)] (7) (a) An agency may call a meeting of the taxing entity committee by sending


             493      written notice to the members of the taxing entity committee at least ten days before the date of
             494      the meeting.
             495          (b) Each notice under Subsection [(6)] (7)(a) shall be accompanied by:
             496          (i) the proposed agenda for the taxing entity committee meeting; and
             497          (ii) if not previously provided and if they exist and are to be considered at the meeting:
             498          (A) the urban renewal or economic development project area plan or proposed plan;
             499          (B) the urban renewal or economic development project area budget or proposed
             500      budget;
             501          (C) the analysis required under Subsection 17C-2-103 (2) or 17C-3-103 (2);
             502          (D) the blight study;
             503          (E) the agency's resolution making a finding of blight under Subsection
             504      17C-2-102 (1)(a) (ii)(B); and
             505          (F) other documents to be considered by the taxing entity committee at the meeting.
             506          [(7)] (8) (a) A taxing entity committee may not vote on a proposed urban renewal or
             507      economic development project area budget or proposed amendment to an urban renewal or
             508      economic development project area budget at the first meeting at which the proposed budget or
             509      amendment is considered unless all members of the taxing entity committee present at the
             510      meeting consent.
             511          (b) A second taxing entity committee meeting to consider an urban renewal or
             512      economic development project area budget or a proposed amendment to an urban renewal or
             513      economic development project area budget may not be held within 14 days after the first
             514      meeting unless all members of the taxing entity committee present at the first meeting consent.
             515          [(8)] (9) Each taxing entity committee shall meet at least annually during the time that
             516      the agency receives tax increment under an urban renewal or economic development project
             517      area budget in order to review the status of the project area.
             518          [(9)] (10) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open
             519      and Public Meetings Act.
             520          [(10)] (11) Each time a school district representative or a representative of the State
             521      Board of Education votes as a member of a taxing entity committee to allow an agency to be
             522      paid tax increment or to increase the amount or length of time that an agency may be paid tax
             523      increment, that representative shall, within 45 days after the vote, provide to the


             524      representative's respective school board an explanation in writing of the representative's vote
             525      and the reasons for the vote.
             526          [(11)] (12) (a) The auditor of each county in which the agency is located shall provide a
             527      written report to the taxing entity committee stating, with respect to property within each urban
             528      renewal and economic development project area:
             529          (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408 ;
             530      and
             531          (ii) the assessed value.
             532          (b) With respect to the information required under Subsection [(11)] (12)(a), the
             533      auditor shall provide:
             534          (i) actual amounts for each year from the adoption of the urban renewal and economic
             535      development project area plan to the time of the report; and
             536          (ii) estimated amounts for each year beginning the year after the time of the report and
             537      ending the time that the agency expects no longer to be paid tax increment from property
             538      within the urban renewal and economic development project area.
             539          (c) The auditor of the county in which the agency is located shall provide a report
             540      under this Subsection [(11)] (12):
             541          (i) at least annually; and
             542          (ii) upon request of the taxing entity committee, before a taxing entity committee
             543      meeting at which the committee will consider whether to allow the agency to be paid tax
             544      increment or to increase the amount of tax increment that the agency may be paid or the length
             545      of time that the agency may be paid tax increment.
             546          [(12)] (13) This section does not apply to a community development project area plan.
             547          Section 6. Section 17C-1-405 is amended to read:
             548           17C-1-405. Tax increment under a project area plan adopted on or after May 1,
             549      2006.
             550          (1) This section applies to tax increment under a project area plan adopted on or after
             551      May 1, 2006.
             552          (2) Subject to the approval of the taxing entity committee, an agency board may
             553      provide in the urban renewal or economic development project area budget for the agency to be
             554      paid:


             555          (a) for an urban renewal project area plan that proposes development of an inactive
             556      industrial site or inactive airport site, at least 60% of tax increment for at least [15] 20 years; or
             557          (b) for each other project, any percentage of tax increment up to 100% or any specified
             558      dollar amount of tax increment for any period of time.
             559          (3) A resolution or interlocal agreement relating to an agency's use of tax increment for
             560      a community development project area plan may provide for the agency to be paid any
             561      percentage of tax increment up to 100% or any specified dollar amount of tax increment for
             562      any period of time.
             563          Section 7. Section 17C-1-407 is amended to read:
             564           17C-1-407. Limitations on tax increment.
             565          (1) (a) If the development of retail sales of goods is the primary objective of an urban
             566      renewal project area, tax increment from the urban renewal project area may not be paid to or
             567      used by an agency unless a finding of blight is made under Chapter 2, Part 3, Blight
             568      Determination in Urban Renewal Project Areas.
             569          (b) Development of retail sales of goods does not disqualify an agency from receiving
             570      tax increment.
             571          (c) After July 1, 2005, an agency may not be paid or use tax increment generated from
             572      the value of property within an economic development project area that is attributable to the
             573      development of retail sales of goods, unless the tax increment was previously pledged to pay
             574      for bonds or other contractual obligations of the agency.
             575          (2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from
             576      an increase in the taxing entity's tax rate that occurs after the taxing entity committee approves
             577      the project area budget unless, at the time the taxing entity committee approves the project area
             578      budget, the taxing entity committee approves payment of those increased taxes to the agency.
             579          (b) If the taxing entity committee does not approve of payment of the increased taxes to
             580      the agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxes
             581      attributable to the tax rate increase in the same manner as other property taxes.
             582          (3) Except as the taxing entity committee otherwise agrees, an agency may not receive
             583      tax increment under an urban renewal or economic development project area budget adopted
             584      after May 11, 2009:
             585          (a) that exceeds the percentage of tax increment or cumulative dollar amount of tax


             586      increment specified in the project area budget; or
             587          (b) for more tax years than specified in the project area budget.
             588          Section 8. Section 17C-1-409 is amended to read:
             589           17C-1-409. Allowable uses of tax increment and sales tax.
             590          (1) (a) An agency may use tax increment and sales tax proceeds received from a taxing
             591      entity:
             592          (i) for any of the purposes for which the use of tax increment is authorized under this
             593      title;
             594          (ii) for administrative, overhead, legal, and other operating expenses of the agency,
             595      including consultant fees and expenses under Subsection 17C-2-102 (1)(b)(ii)(B); or
             596          (iii) to pay for, including financing or refinancing, all or part of:
             597          (A) urban renewal activities in the project area from which the tax increment funds are
             598      collected, including environmental remediation activities occurring before or after adoption of
             599      the project area plan;
             600          (B) economic development or community development activities in the project area
             601      from which the tax increment funds are collected;
             602          (C) housing expenditures, projects, or programs as provided in Section 17C-1-411 or
             603      17C-1-412 ;
             604          (D) subject to Subsections (1)(c) and (6), the value of the land for and the cost of the
             605      installation and construction of any publicly owned building, facility, structure, landscaping, or
             606      other improvement within the project area from which the tax increment funds were collected;
             607      and
             608          (E) subject to Subsection (1)(d), the cost of the installation of publicly owned
             609      infrastructure and improvements outside the project area from which the tax increment funds
             610      were collected if the agency board and the community legislative body determine by resolution
             611      that the publicly owned infrastructure and improvements are of benefit to the project area.
             612          (b) The determination of the agency board and the community legislative body under
             613      Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
             614          (c) An agency may not use tax increment or sales tax proceeds received from a taxing
             615      entity for the purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal or economic
             616      development project area plan without the consent of the community legislative body.


             617          (d) An agency may not use tax increment or sales tax proceeds received from a taxing
             618      entity for the purposes stated in Subsection (1)(a)(iii)(E) under an urban renewal or economic
             619      development project area plan without the consent of the community legislative body and the
             620      taxing entity committee.
             621          (2) Sales tax proceeds that an agency receives from another public entity are not
             622      subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use
             623      Tax Incentive Payments Act.
             624          (3) An agency may use sales tax proceeds it receives under a resolution or interlocal
             625      agreement under Section 17C-4-201 for the uses authorized in the resolution or interlocal
             626      agreement.
             627          (4) (a) An agency may contract with the community that created the agency or another
             628      public entity to use tax increment to reimburse the cost of items authorized by this title to be
             629      paid by the agency that have been or will be paid by the community or other public entity.
             630          (b) If land has been or will be acquired or the cost of an improvement has been or will
             631      be paid by another public entity and the land or improvement has been or will be leased to the
             632      community, an agency may contract with and make reimbursement from tax increment funds to
             633      the community.
             634          (5) An agency created by a city of the first or second class may use tax increment from
             635      one project area in another project area to pay all or part of the value of the land for and the
             636      cost of the installation and construction of a publicly or privately owned convention center or
             637      sports complex or any building, facility, structure, or other improvement related to the
             638      convention center or sports complex, including parking and infrastructure improvements, if:
             639          (a) construction of the convention center or sports complex or related building, facility,
             640      structure, or other improvement is commenced on or before June 30, 2002; and
             641          (b) the tax increment is pledged to pay all or part of the value of the land for and the
             642      cost of the installation and construction of the convention center or sports complex or related
             643      building, facility, structure, or other improvement.
             644          (6) Notwithstanding any other provision of this title, an agency may not use tax
             645      increment to construct municipal buildings, courts or other judicial buildings, or fire stations.
             646          (7) Notwithstanding any other provision of this title, an agency may not use tax
             647      increment under an urban renewal or economic development project area plan, to pay any of


             648      the cost of the land, infrastructure, or construction of a stadium or arena constructed after
             649      March 1, 2005, unless the tax increment has been pledged for that purpose before February 15,
             650      2005.
             651          (8) An agency may not use tax increment to pay any amount related to a bond issued or
             652      other obligation incurred after May 11, 2009 if the bond is issued or the obligation is incurred
             653      to finance a telecommunication facility.
             654          Section 9. Section 17C-1-411 is amended to read:
             655           17C-1-411. Use of tax increment for housing and for relocating mobile home park
             656      residents -- Funds to be held in separate accounts.
             657          (1) An agency may:
             658          (a) use tax increment from a project area to pay all or part of the value of the land for
             659      and the cost of installation, construction, and rehabilitation of any building, facility, structure,
             660      or other housing improvement, including infrastructure improvements related to housing,
             661      located in any project area within the agency's boundaries; and
             662          (b) use up to 20% of tax increment:
             663          (i) outside of project areas for the purpose of:
             664          (A) replacing housing units lost by urban renewal, economic development, or
             665      community development; or
             666          (B) increasing, improving, and preserving generally the affordable housing supply [of
             667      the community that created] within the boundary of the agency; or
             668          (ii) for relocating mobile home park residents displaced by development, whether
             669      inside or outside a project area.
             670          (2) (a) Each agency shall separately account for funds allocated under this section.
             671          (b) Interest earned by the housing fund and any payments or repayments made to the
             672      agency for loans, advances, or grants of any kind from the fund, shall accrue to the housing
             673      fund.
             674          (c) Each agency designating a housing fund under this section shall use the fund for:
             675          (i) the purposes set forth in this section; or
             676          (ii) the purposes set forth in this title relating to the urban renewal, economic
             677      development, or community development project area from which the funds originated.
             678          (3) An agency may lend, grant, or contribute funds from the housing fund to a person,


             679      public entity, housing authority, private entity or business, or nonprofit corporation for
             680      affordable housing.
             681          Section 10. Section 17C-1-412 is amended to read:
             682           17C-1-412. Use of funds allocated for housing -- Separate accounting required --
             683      Issuance of bonds for housing -- Action to compel agency to provide housing funds.
             684          (1) (a) Each agency shall use all funds allocated for housing under this section to:
             685          (i) pay part or all of the cost of land or construction of income targeted housing within
             686      the [community that created] boundary of the agency, if practicable in a mixed income
             687      development or area;
             688          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
             689      [community that created] boundary of the agency;
             690          (iii) lend, grant, or contribute money to a person, public entity, housing authority,
             691      private entity or business, or nonprofit corporation for income targeted housing within the
             692      boundary of the agency;
             693          (iv) plan or otherwise promote income targeted housing within the boundary of the
             694      agency;
             695          [(iii)] (v) pay part or all of the cost of land or installation, construction, or rehabilitation
             696      of any building, facility, structure, or other housing improvement, including infrastructure
             697      improvements, related to housing located in a project area where blight has been found to exist;
             698          [(iv)] (vi) replace housing units lost as a result of the urban renewal, economic
             699      development, or community development;
             700          [(v)] (vii) make payments on or establish a reserve fund for bonds:
             701          (A) issued by the agency, the community, or the housing authority that provides
             702      income targeted housing within the community; and
             703          (B) all or part of the proceeds of which are used within the community for the purposes
             704      stated in Subsection (1)(a)(i), (ii), (iii), [or] (iv), (v), or (vi);
             705          [(vi)] (viii) if the community's fair share ratio at the time of the first adoption of the
             706      project area budget is at least 1.1 to 1.0, make payments on bonds:
             707          (A) that were previously issued by the agency, the community, or the housing authority
             708      that provides income targeted housing within the community; and
             709          (B) all or part of the proceeds of which were used within the community for the


             710      purposes stated in Subsection (1)(a)(i), (ii), (iii), [or] (iv), (v), or (vi); or
             711          [(vii)] (ix) relocate mobile home park residents displaced by an urban renewal,
             712      economic development, or community development project.
             713          (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
             714      any portion of housing funds to:
             715          (i) the community for use as provided under Subsection (1)(a);
             716          (ii) the housing authority that provides income targeted housing within the community
             717      for use in providing income targeted housing within the community; or
             718          (iii) the Olene Walker Housing Loan Fund, established under Title 9, Chapter 4, Part 7,
             719      Olene Walker Housing Loan Fund, for use in providing income targeted housing within the
             720      community.
             721          (2) The agency or community shall separately account for the housing funds, together
             722      with all interest earned by the housing funds and all payments or repayments for loans,
             723      advances, or grants from the housing funds.
             724          [(3) In using housing funds under Subsection (1)(a), an agency may lend, grant, or
             725      contribute housing funds to a person, public body, housing authority, private entity or business,
             726      or nonprofit organization for use as provided in Subsection (1)(a).]
             727          [(4)] (3) An agency may:
             728          (a) issue bonds from time to time to finance a housing undertaking under this section,
             729      including the payment of principal and interest upon advances for surveys and plans or
             730      preliminary loans; and
             731          (b) issue refunding bonds for the payment or retirement of bonds under Subsection
             732      [(4)] (3)(a) previously issued by the agency.
             733          [(5)] (4) (a) If an agency fails to provide housing funds in accordance with the project
             734      area budget and, if applicable, the housing plan adopted under Subsection 17C-2-204 (2), the
             735      loan fund board may bring legal action to compel the agency to provide the housing funds.
             736          (b) In an action under Subsection [(5)] (4)(a), the court:
             737          (i) shall award the loan fund board a reasonable attorney fee, unless the court finds that
             738      the action was frivolous; and
             739          (ii) may not award the agency its attorney fees, unless the court finds that the action
             740      was frivolous.


             741          Section 11. Section 17C-1-415 is enacted to read:
             742          17C-1-415. Obligations of agencies that use tax increment to pay for
             743      communication infrastructure or facility.
             744          An agency that uses tax increment after May 11, 2009 to pay for communication
             745      infrastructure or a communication facility:
             746          (1) may not make or grant any undue or unreasonable preference or advantage to a
             747      provider of communication service; and
             748          (2) shall allow the communication infrastructure and facilities for which tax increment
             749      is used to be used by any other provider of communication service on a fair, equitable, and
             750      nondiscriminatory basis.
             751          Section 12. Section 17C-1-601 is amended to read:
             752           17C-1-601. Annual agency budget -- Fiscal year -- Public hearing required --
             753      Auditor forms -- Requirement to file form.
             754          (1) Each agency shall prepare and its board adopt an annual budget of revenues and
             755      expenditures for the agency for each fiscal year.
             756          (2) Each annual agency budget shall be adopted:
             757          (a) for an agency created by a city or town, before June 22; or
             758          (b) for an agency created by a county, before December 15.
             759          (3) The agency's fiscal year shall be the same as the fiscal year of the community that
             760      created the agency.
             761          (4) (a) Before adopting an annual budget, each agency board shall hold a public hearing
             762      on the annual budget.
             763          (b) Each agency shall provide notice of the public hearing on the annual budget by:
             764          (i) publishing at least one notice in a newspaper of general circulation within the
             765      agency boundaries, one week before the public hearing; or
             766          (ii) if there is no newspaper of general circulation within the agency boundaries,
             767      posting a notice of the public hearing in at least three public places within the agency
             768      boundaries.
             769          (c) Each agency shall make the annual budget available for public inspection at least
             770      three days before the date of the public hearing.
             771          (5) The state auditor shall prescribe the budget forms and the categories to be contained


             772      in each agency budget, including:
             773          (a) revenues and expenditures for the budget year;
             774          (b) legal fees; and
             775          (c) administrative costs, including rent, supplies, and other materials, and salaries of
             776      agency personnel.
             777          (6) (a) Within [30] 90 days after adopting an annual budget, each agency board shall
             778      file a copy of the annual budget with the auditor of the county in which the agency is located,
             779      the State Tax Commission, the state auditor, the State Board of Education, and each taxing
             780      entity that levies a tax on property from which the agency collects tax increment.
             781          (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
             782      state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
             783      state auditor.
             784          Section 13. Section 17C-2-110 is amended to read:
             785           17C-2-110. Amending an urban renewal project area plan.
             786          (1) An adopted urban renewal project area plan may be amended as provided in this
             787      section.
             788          (2) If an agency proposes to amend an adopted urban renewal project area plan to
             789      enlarge the project area:
             790          (a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
             791      a project area plan apply equally to the proposed amendment as if it were a proposed project
             792      area plan;
             793          (b) for a pre-July 1, 1993 project area plan, the base year taxable value for the new area
             794      added to the project area shall be determined under Subsection 17C-1-102 (6)(a)(i) using the
             795      effective date of the amended project area plan;
             796          (c) for a post-June 30, 1993 project area plan:
             797          (i) the base year taxable value for the new area added to the project area shall be
             798      determined under Subsection 17C-1-102 (6)[(b)](a)(ii) using the date of the taxing entity
             799      committee's consent referred to in Subsection (2)(c)(ii); and
             800          (ii) the agency shall obtain the consent of the taxing entity committee before the agency
             801      may collect tax increment from the area added to the project area by the amendment;
             802          (d) the agency shall make a finding regarding the existence of blight in the area


             803      proposed to be added to the project area by following the procedure set forth in Subsections
             804      17C-2-102 (1)(a)(i) and (ii); and
             805          (e) the agency need not make a finding regarding the existence of blight in the project
             806      area as described in the original project area plan, if the agency made a finding of the existence
             807      of blight regarding that project area in connection with adoption of the original project area
             808      plan.
             809          (3) If a proposed amendment does not propose to enlarge an urban renewal project
             810      area, an agency board may adopt a resolution approving an amendment to an adopted project
             811      area plan after:
             812          (a) the agency gives notice, as provided in Section 17C-2-502 , of the proposed
             813      amendment and of the public hearing required by Subsection (3)(b);
             814          (b) the agency board holds a public hearing on the proposed amendment that meets the
             815      requirements of a plan hearing;
             816          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             817      amendment proposes:
             818          (i) to enlarge the area within the project area from which tax increment is collected;
             819          (ii) to permit the agency to receive a greater percentage of tax increment or to receive
             820      tax increment for a longer period of time, or both, than allowed under the adopted project area
             821      plan; or
             822          (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
             823      expand the area from which tax increment is collected to exceed 100 acres of private property;
             824      and
             825          (d) the agency obtains the consent of the legislative body or governing board of each
             826      taxing entity affected, if the amendment proposes to permit the agency to receive, from less
             827      than all taxing entities, a greater percentage of tax increment or to receive tax increment for a
             828      longer period of time, or both, than allowed under the adopted project area plan.
             829          (4) (a) An adopted urban renewal project area plan may be amended without
             830      complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
             831      (b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
             832      amendment:
             833          (i) makes a minor adjustment in the legal description of a project area boundary


             834      requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
             835      or
             836          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             837      because the agency determines that:
             838          (A) the parcel is no longer blighted; or
             839          (B) inclusion of the parcel is no longer necessary or desirable to the project area.
             840          (b) An amendment removing a parcel of real property from a project area under
             841      Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
             842      parcel being removed.
             843          (5) (a) An amendment approved by board resolution under this section may not take
             844      effect until adopted by ordinance of the legislative body of the community in which the project
             845      area that is the subject of the project area plan being amended is located.
             846          (b) Upon a community legislative body passing an ordinance adopting an amendment
             847      to a project area plan, the agency whose project area plan was amended shall comply with the
             848      requirements of Section 17C-2-109 to the same extent as if the amendment were a project area
             849      plan.
             850          Section 14. Section 17C-2-201 is amended to read:
             851           17C-2-201. Project area budget -- Requirements for adopting -- Contesting the
             852      budget or procedure -- Time limit.
             853          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993 urban
             854      renewal project area plan with tax increment, the agency shall, subject to Section 17C-2-202 ,
             855      adopt a project area budget as provided in this part.
             856          (b) An urban renewal project area budget adopted after May 11, 2009 shall specify:
             857          (i) the number of tax years for which the agency will be allowed to receive tax
             858      increment from the project area; and
             859          (ii) the percentage of tax increment or maximum cumulative dollar amount of tax
             860      increment the agency is entitled to receive from the project area under the project area budget.
             861          (2) To adopt an urban renewal project area budget, the agency shall:
             862          (a) prepare a draft of a project area budget;
             863          (b) make a copy of the draft project area budget available to the public at the agency's
             864      offices during normal business hours;


             865          (c) provide notice of the budget hearing as required by Part 5, Urban Renewal Notice
             866      Requirements;
             867          (d) hold a public hearing on the draft project area budget and, at that public hearing,
             868      allow public comment on:
             869          (i) the draft project area budget; and
             870          (ii) whether the draft project area budget should be revised, adopted, or rejected;
             871          (e) (i) if required under Subsection 17C-2-204 (1), obtain the approval of the taxing
             872      entity committee on the draft project area budget or a revised version of the draft project area
             873      budget; or
             874          (ii) if applicable, comply with the requirements of Subsection 17C-2-204 (2); and
             875          (f) after the budget hearing, hold a board meeting in the same meeting as the public
             876      hearing or in a subsequent meeting to:
             877          (i) consider comments made and information presented at the public hearing relating to
             878      the draft project area budget; and
             879          (ii) adopt by resolution the draft project area budget, with any revisions, as the project
             880      area budget.
             881          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
             882      under Subsection (2)(f), any person in interest may contest the project area budget or the
             883      procedure used to adopt the project area budget if the budget or procedure fails to comply with
             884      applicable statutory requirements.
             885          (b) After the 30-day period under Subsection (3)(a) expires, no person may contest the
             886      project area budget or procedure used to adopt the project area budget for any cause.
             887          Section 15. Section 17C-3-109 is amended to read:
             888           17C-3-109. Amending an economic development project area plan.
             889          (1) An adopted economic development project area plan may be amended as provided
             890      in this section.
             891          (2) If an agency proposes to amend an adopted economic development project area
             892      plan to enlarge the project area:
             893          (a) the requirements under this part that apply to adopting a project area plan apply
             894      equally to the proposed amendment as if it were a proposed project area plan;
             895          (b) the base year taxable value for the new area added to the project area shall be


             896      determined under Subsection 17C-1-102 (6)[(b)](a)(ii) using the date of the taxing entity
             897      committee's consent referred to in Subsection (2)(c); and
             898          (c) the agency shall obtain the consent of the taxing entity committee before the agency
             899      may collect tax increment from the area added to the project area by the amendment.
             900          (3) If a proposed amendment does not propose to enlarge an economic development
             901      project area, an agency board may adopt a resolution approving an amendment to an adopted
             902      project area plan after:
             903          (a) the agency gives notice, as provided in Section 17C-3-402 , of the proposed
             904      amendment and of the public hearing required by Subsection (3)(b);
             905          (b) the agency board holds a public hearing on the proposed amendment that meets the
             906      requirements of a plan hearing;
             907          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             908      amendment proposes:
             909          (i) to enlarge the area within the project area from which tax increment is collected; or
             910          (ii) to permit the agency to receive a greater percentage of tax increment or to receive
             911      tax increment for a longer period of time than allowed under the adopted project area plan; and
             912          (d) the agency obtains the consent of the legislative body or governing board of each
             913      taxing entity affected, if the amendment proposes to permit the agency to receive, from less
             914      than all taxing entities, a greater percentage of tax increment or to receive tax increment for a
             915      longer period of time, or both, than allowed under the adopted project area plan.
             916          (4) (a) An adopted project area plan may be amended without complying with the
             917      notice and public hearing requirements of Subsections (2)(a) and (3)(a) and (b) and without
             918      obtaining taxing entity committee approval under Subsection (3)(c) if the amendment:
             919          (i) makes a minor adjustment in the legal description of a project area boundary
             920      requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
             921      or
             922          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             923      because the agency determines that inclusion of the parcel is no longer necessary or desirable to
             924      the project area.
             925          (b) An amendment removing a parcel of real property from a project area under
             926      Subsection (4)(a) may not be made without the consent of the record property owner of the


             927      parcel being removed.
             928          (5) (a) An amendment approved by board resolution under this section may not take
             929      effect until adopted by ordinance of the legislative body of the community in which the project
             930      area that is the subject of the project area plan being amended is located.
             931          (b) Upon a community legislative body passing an ordinance adopting an amendment
             932      to a project area plan, the agency whose project area plan was amended shall comply with the
             933      requirements of Section 17C-3-108 to the same extent as if the amendment were a project area
             934      plan.
             935          Section 16. Section 17C-3-201 is amended to read:
             936           17C-3-201. Economic development project area budget -- Requirements for
             937      adopting -- Contesting the budget or procedure -- Time limit.
             938          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993
             939      economic development project area plan with tax increment, the agency shall, subject to
             940      Section 17C-3-202 , adopt a project area budget as provided in this part.
             941          (b) An economic development project area budget adopted after May 11, 2009 shall
             942      specify:
             943          (i) the number of tax years for which the agency will be allowed to receive tax
             944      increment from the project area; and
             945          (ii) the percentage of tax increment or maximum cumulative dollar amount of tax
             946      increment the agency is entitled to receive from the project area under the project area budget.
             947          (2) To adopt an economic development project area budget, the agency shall:
             948          (a) prepare a draft of an economic development project area budget;
             949          (b) make a copy of the draft project area budget available to the public at the agency's
             950      offices during normal business hours;
             951          (c) provide notice of the budget hearing as required by Part 4, Economic Development
             952      Notice Requirements;
             953          (d) hold a public hearing on the draft project area budget and, at that public hearing,
             954      allow public comment on:
             955          (i) the draft project area budget; and
             956          (ii) whether the draft project area budget should be revised, adopted, or rejected;
             957          (e) (i) if required under Subsection 17C-3-203 (1), obtain the approval of the taxing


             958      entity committee on the draft project area budget or a revised version of the draft project area
             959      budget; or
             960          (ii) if applicable, comply with the requirements of Subsection 17C-3-203 (2); and
             961          (f) after the budget hearing, hold a board meeting in the same meeting as the public
             962      hearing or in a subsequent meeting to:
             963          (i) consider comments made and information presented at the public hearing relating to
             964      the draft project area budget; and
             965          (ii) adopt by resolution the draft project area budget, with any revisions, as the project
             966      area budget.
             967          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
             968      under Subsection (2)(f), any person in interest may contest the project area budget or the
             969      procedure used to adopt the project area budget if the budget or procedure fails to comply with
             970      applicable statutory requirements.
             971          (b) After the 30-day period under Subsection (3)(a) expires, no person may contest the
             972      project area budget or procedure used to adopt the project area budget for any cause.
             973          Section 17. Section 17C-3-202 is amended to read:
             974           17C-3-202. Part of tax increment funds in an economic development project area
             975      budget to be used for housing -- Waiver of requirement.
             976          (1) This section applies only to an economic development project area budget adopted
             977      before May 12, 2009.
             978          [(1)] (2) (a) Except as provided in Subsection [(1)] (2)(b), each economic development
             979      project area budget adopted on or after May 1, 2000 but before May 12, 2009 that provides for
             980      more than $100,000 of annual tax increment to be paid to the agency shall allocate at least 20%
             981      of the tax increment for housing as provided in Section 17C-1-412 .
             982          (b) The 20% requirement of Subsection [(1)] (2)(a) may be waived:
             983          (i) in part or whole by the mutual consent of the loan fund board and the taxing entity
             984      committee if they determine that 20% of tax increment is more than is needed to address the
             985      community's need for income targeted housing; or
             986          (ii) in fifth and sixth class counties, by the taxing entity committee for economic
             987      development project area budgets adopted on or after May 1, 2002 but before May 12, 2009, if
             988      the economic development project area consists of an area without housing units.


             989          [(2)] (3) An economic development project area budget not required under Subsection
             990      [(1)] (2)(a) to allocate tax increment for housing may allocate 20% of tax increment payable to
             991      the agency over the life of the project area for housing as provided in Section 17C-1-412 if the
             992      project area budget is under a project area plan that is adopted on or after July 1, 1998.
             993          Section 18. Section 17C-3-203 is amended to read:
             994           17C-3-203. Consent of taxing entity committee required for economic
             995      development project area budget -- Exception.
             996          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), each
             997      agency shall obtain the consent of the taxing entity committee for each economic development
             998      project area budget under a post-June 30, 1993 economic development project area plan before
             999      the agency may collect any tax increment from the project area.
             1000          (b) For an economic development project area budget adopted from July 1, 1998
             1001      through May 1, 2000 that allocates 20% or more of the tax increment for housing as provided
             1002      in Section 17C-1-412 , an agency:
             1003          (i) need not obtain the consent of the taxing entity committee for the project area
             1004      budget; and
             1005          (ii) may not collect any tax increment from all or part of the project area until after:
             1006          (A) the loan fund board has certified the project area budget as complying with the
             1007      requirements of Section 17C-1-412 ; and
             1008          (B) the agency board has approved and adopted the project area budget by a two-thirds
             1009      vote.
             1010          (2) (a) Before a taxing entity committee may consent to an economic development
             1011      project area budget adopted on or after May 1, 2000 that [is required under Subsection
             1012      17C-3-202 (1)(a) to allocate] allocates 20% of tax increment for housing under Subsection
             1013      17C-3-202 (2)(a) or (3), the agency shall:
             1014          (i) adopt a housing plan showing the uses for the housing funds; and
             1015          (ii) provide a copy of the housing plan to the taxing entity committee and the loan fund
             1016      board.
             1017          (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency
             1018      shall provide a copy of the amendment to the taxing entity committee and the loan fund board.
             1019          Section 19. Section 17C-4-201 is amended to read:


             1020           17C-4-201. Consent of a taxing entity or public entity to an agency receiving tax
             1021      increment or sales tax funds for community development project.
             1022          (1) An agency may negotiate with a taxing entity and public [agency] entity for the
             1023      taxing entity's or public [agency's] entity's consent to the agency receiving the entity's or public
             1024      [agency's] entity's tax increment or sales tax revenues, or both, for the purpose of providing
             1025      funds to carry out a proposed or adopted community development project area plan.
             1026          (2) The consent of a taxing entity or public [agency] entity under Subsection (1) may
             1027      be expressed in:
             1028          (a) a resolution adopted by the taxing entity or public [agency] entity; or
             1029          (b) an interlocal agreement, under Title 11, Chapter 13, Interlocal Cooperation Act,
             1030      between the taxing entity or public [agency] entity and the agency.
             1031          (3) A resolution adopted or interlocal agreement entered under Subsection (2) after
             1032      May 11, 2009 shall specify:
             1033          (a) if the resolution or interlocal agreement provides for the agency to be paid tax
             1034      increment:
             1035          (i) the method of calculating the amount of the taxing entity's tax increment from the
             1036      project area that will be paid to the agency, including the agreed base year and agreed base
             1037      taxable value;
             1038          (ii) the number of tax years that the agency will be paid the taxing entity's tax
             1039      increment from the project area; and
             1040          (iii) the percentage of the taxing entity's tax increment or maximum cumulative dollar
             1041      amount of the taxing entity's tax increment that the agency will be paid; and
             1042          (b) if the resolution or interlocal agreement provides for the agency to be paid a public
             1043      entity's sales tax revenue:
             1044          (i) the method of calculating the amount of the public entity's sales tax revenue that the
             1045      agency will be paid;
             1046          (ii) the number of tax years that the agency will be paid the sales tax revenue; and
             1047          (iii) the percentage of sales tax revenue or the maximum cumulative dollar amount of
             1048      sales tax revenue that the agency will be paid.
             1049          (4) (a) Unless the taxing entity otherwise agrees, an agency may not be paid a taxing
             1050      entity's tax increment:


             1051          (i) that exceeds the percentage or maximum cumulative dollar amount of tax increment
             1052      specified in the resolution or interlocal agreement under Subsection (2); or
             1053          (ii) for more tax years than specified in the resolution or interlocal agreement under
             1054      Subsection (2).
             1055          (b) Unless the public entity otherwise agrees, an agency may not be paid a public
             1056      entity's sales tax revenue:
             1057          (i) that exceeds the percentage or maximum cumulative dollar amount of sales tax
             1058      revenue specified in the resolution or interlocal agreement under Subsection (2); or
             1059          (ii) for more tax years than specified in the resolution or interlocal agreement under
             1060      Subsection (2).
             1061          [(3)] (5) A school district may consent to an agency receiving tax increment from the
             1062      school district's basic levy only to the extent that the school district also consents to the agency
             1063      receiving tax increment from the school district's local levy.
             1064          [(4)] (6) (a) A resolution or interlocal agreement under this section may be amended
             1065      from time to time.
             1066          (b) Each amendment of a resolution or interlocal agreement shall be subject to and
             1067      receive the benefits of the provisions of this part to the same extent as if the amendment were
             1068      an original resolution or interlocal agreement.
             1069          [(5)] (7) A taxing entity's or public [agency's] entity's consent to an agency receiving
             1070      funds under this section is not subject to the requirements of Section 10-8-2 .
             1071          Section 20. Section 17C-4-202 is amended to read:
             1072           17C-4-202. Resolution or interlocal agreement to provide funds for the
             1073      community development project area plan -- Notice -- Effective date of resolution or
             1074      interlocal agreement -- Time to contest resolution or interlocal agreement -- Availability
             1075      of resolution or interlocal agreement.
             1076          (1) The approval and adoption of each resolution or interlocal agreement under
             1077      Subsection 17C-4-201 (2) shall be in an open and public meeting.
             1078          (2) (a) Upon the adoption of a resolution or interlocal agreement under Section
             1079      17C-4-201 , the agency shall provide notice as provided in Subsection (2)(b) by:
             1080          (i) publishing or causing to be published a notice in a newspaper of general circulation
             1081      within the agency's boundaries; or


             1082          (ii) if there is no newspaper of general circulation within the agency's boundaries,
             1083      causing a notice to be posted in at least three public places within the agency's boundaries.
             1084          (b) Each notice under Subsection (2)(a) shall:
             1085          (i) set forth a summary of the resolution or interlocal agreement; and
             1086          (ii) include a statement that the resolution or interlocal agreement is available for
             1087      general public inspection and the hours of inspection.
             1088          (3) The resolution or interlocal agreement shall become effective on the date of:
             1089          (a) if notice was published under Subsection (2)(a), publication of the notice; or
             1090          (b) if notice was posted under Subsection (2)(a), posting of the notice.
             1091          (4) (a) For a period of 30 days after the effective date of the resolution or interlocal
             1092      agreement under Subsection (3), any person in interest may contest the resolution or interlocal
             1093      agreement or the procedure used to adopt the resolution or interlocal agreement if the
             1094      resolution or interlocal agreement or procedure fails to comply with applicable statutory
             1095      requirements.
             1096          (b) After the 30-day period under Subsection (4)(a) expires, no person may contest the
             1097      resolution or interlocal agreement for any cause.
             1098          (5) Each agency that is to receive funds under a resolution or interlocal agreement
             1099      under Section 17C-4-201 and each taxing entity or public [agency] entity that approves a
             1100      resolution or enters into an interlocal agreement under Section 17C-4-201 shall make the
             1101      resolution or interlocal agreement, as the case may be, available at its offices to the general
             1102      public for inspection and copying during normal business hours.
             1103          Section 21. Section 17C-4-203 is amended to read:
             1104           17C-4-203. Requirement to file a copy of the resolution or interlocal agreement --
             1105      County payment of tax increment to the agency.
             1106          (1) Each agency that is to receive funds under a resolution or interlocal agreement
             1107      under Section 17C-4-201 shall, within 30 days after the effective date of the resolution or
             1108      interlocal agreement, file a copy of it with:
             1109          (a) the State Tax Commission, the State Board of Education, and the state auditor; and
             1110          (b) the auditor of the county in which the project area is located, if the resolution or
             1111      interlocal agreement provides for the agency to receive tax increment from the taxing entity or
             1112      public [agency] entity that adopted the resolution or entered into the interlocal agreement.


             1113          (2) Each county that collects property tax on property within a community
             1114      development project area shall, in the manner and at the time provided in Section 59-2-1365 ,
             1115      pay and distribute to the agency the tax increment that the agency is entitled to receive under a
             1116      resolution approved or an interlocal agreement adopted under Section 17C-4-201 .




Legislative Review Note
    as of 2-16-09 3:09 PM


Office of Legislative Research and General Counsel


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