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S.B. 124

This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 16, 2010 at 9:31 AM by rday. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Feb 23, 2010 at 4:21 PM by cmillar. -->              1     

MILITARY INSTALLATION DEVELOPMENT

             2     
AUTHORITY MODIFICATIONS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Jerry W. Stevenson

             6     
House Sponsor: Brad L. Dee

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions of the Military Installation Development Authority Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    authorizes the Military Installation Development Authority (authority) to:
             15              .    impose a resort communities tax; and
             16              .    contract with the federal government, a public entity, or other authorized source;
             17          .    exempts land within a project area from certain state law, ordinances, or
             18      regulations;
             19          .    authorizes certain changes to the authority board;
             20          .    authorizes the authority to include, under certain circumstances, public or private
             21      land in a project area that is noncontiguous to military land;
             22          .    amends notice requirements;
             23          .    amends the authority's receipt and use of tax increment;
             24          .    amends the authority's use of municipal services revenue;
             25          .    designates funds received by the authority as nonlapsing; and
             26          .    makes technical corrections.
             27      Monies Appropriated in this Bill:



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             28
         None
             29      Other Special Clauses:
             30          This bill provides an immediate effective date.
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          59-12-401, as last amended by Laws of Utah 2008, Chapter 384
             34          59-12-402, as last amended by Laws of Utah 2009, Chapter 388
             35          63H-1-102, as last amended by Laws of Utah 2009, Chapters 92 and 397
             36          63H-1-201, as last amended by Laws of Utah 2009, Chapters 92 and 397
             37          63H-1-202, as renumbered and amended by Laws of Utah 2009, Chapter 92
             38          63H-1-203, as enacted by Laws of Utah 2009, Chapter 92
             39          63H-1-302, as last amended by Laws of Utah 2009, Chapter 92
             40          63H-1-401, as last amended by Laws of Utah 2009, Chapters 92 and 397
             41          63H-1-402, as last amended by Laws of Utah 2009, Chapter 92
             42          63H-1-501, as last amended by Laws of Utah 2009, Chapter 92
             43          63H-1-502, as last amended by Laws of Utah 2009, Chapter 92
             44          63H-1-602, as enacted by Laws of Utah 2007, Chapter 23
             45          63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
             46      ENACTS:
             47          63H-1-504, Utah Code Annotated 1953
             48     

             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 59-12-401 is amended to read:
             51           59-12-401. Resort communities tax authority for cities, towns, and military
             52      installation development authority -- Base -- Rate -- Collection fees.
             53          (1) (a) In addition to other sales and use taxes, a city or town in which the transient
             54      room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
             55      municipality's permanent census population may impose a sales and use tax of up to 1.1% on
             56      the transactions described in Subsection 59-12-103 (1) located within the city or town.
             57          (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
             58      section on:



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             59
         (i) the sale of:
             60          (A) a motor vehicle;
             61          (B) an aircraft;
             62          (C) a watercraft;
             63          (D) a modular home;
             64          (E) a manufactured home; or
             65          (F) a mobile home;
             66          (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             67      are exempt from taxation under Section 59-12-104 ; and
             68          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
             69      food ingredients.
             70          (c) For purposes of this Subsection (1), the location of a transaction shall be
             71      determined in accordance with Sections 59-12-211 through 59-12-215 .
             72          (d) A city or town imposing a tax under this section shall impose the tax on amounts
             73      paid or charged for food and food ingredients if the food and food ingredients are sold as part
             74      of a bundled transaction attributable to food and food ingredients and tangible personal
             75      property other than food and food ingredients.
             76          (2) (a) An amount equal to the total of any costs incurred by the state in connection
             77      with the implementation of Subsection (1) which exceed, in any year, the revenues received by
             78      the state from its collection fees received in connection with the implementation of Subsection
             79      (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
             80      provided for in Subsection (1).
             81          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
             82      those cities and towns according to the amount of revenue the respective cities and towns
             83      generate in that year through imposition of that tax.
             84          (3) (a) Subject to 63H-1-203 , the military installation development authority created in
             85      Section 63H-1-201 may impose a tax under this section on the transactions described in
             86      Subsection 59-12-103 (1) located within a project area described in a project area plan adopted
             87      by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act,
             88      as though the authority were a city or a town.
             89          (b) For purposes of calculating the permanent census population within a project area,



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             90
     the board as defined in Section 63H-1-102 shall:
             91          (i) count the population;
             92          (ii) adopt a resolution verifying the population number; and
             93          (iii) provide the commission any information required in Section 59-12-405 .
             94          Section 2. Section 59-12-402 is amended to read:
             95           59-12-402. Additional resort communities sales and use tax -- Base -- Rate --
             96      Collection fees -- Resolution and voter approval requirements -- Election requirements --
             97      Notice requirements -- Ordinance requirements -- Prohibition of military installation
             98      development authority.
             99          (1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in
             100      which the transient room capacity as defined in Section 59-12-405 is greater than or equal to
             101      66% of the municipality's permanent census population may, in addition to the sales tax
             102      authorized under Section 59-12-401 , impose an additional resort communities sales tax in an
             103      amount that is less than or equal to .5% on the transactions described in Subsection
             104      59-12-103 (1) located within the municipality.
             105          (b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
             106      impose a tax under this section on:
             107          (i) the sale of:
             108          (A) a motor vehicle;
             109          (B) an aircraft;
             110          (C) a watercraft;
             111          (D) a modular home;
             112          (E) a manufactured home; or
             113          (F) a mobile home;
             114          (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             115      are exempt from taxation under Section 59-12-104 ; and
             116          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
             117      food ingredients.
             118          (c) For purposes of this Subsection (1), the location of a transaction shall be
             119      determined in accordance with Sections 59-12-211 through 59-12-215 .
             120          (d) A municipality imposing a tax under this section shall impose the tax on amounts



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             121
     paid or charged for food and food ingredients if the food and food ingredients are sold as part
             122      of a bundled transaction attributable to food and food ingredients and tangible personal
             123      property other than food and food ingredients.
             124          (2) (a) An amount equal to the total of any costs incurred by the state in connection
             125      with the implementation of Subsection (1) which exceed, in any year, the revenues received by
             126      the state from its collection fees received in connection with the implementation of Subsection
             127      (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
             128      provided for in Subsection (1).
             129          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
             130      those cities and towns according to the amount of revenue the respective cities and towns
             131      generate in that year through imposition of that tax.
             132          (3) To impose an additional resort communities sales tax under this section, the
             133      governing body of the municipality shall:
             134          (a) pass a resolution approving the tax; and
             135          (b) except as provided in Subsection (6), obtain voter approval for the tax as provided
             136      in Subsection (4).
             137          (4) To obtain voter approval for an additional resort communities sales tax under
             138      Subsection (3)(b), a municipality shall:
             139          (a) hold the additional resort communities sales tax election during:
             140          (i) a regular general election; or
             141          (ii) a municipal general election; and
             142          (b) publish notice of the election:
             143          (i) 15 days or more before the day on which the election is held; and
             144          (ii) (A) in a newspaper of general circulation in the municipality; and
             145          (B) as required in Section 45-1-101 .
             146          (5) An ordinance approving an additional resort communities sales tax under this
             147      section shall provide an effective date for the tax as provided in Section 59-12-403 .
             148          (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the
             149      voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
             150      municipality imposed a license fee or tax on businesses based on gross receipts pursuant to
             151      Section 10-1-203 .



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         (b) The exception from the voter approval requirements in Subsection (6)(a) does not
             153      apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only
             154      one class of businesses based on gross receipts pursuant to Section 10-1-203 .
             155          (7) A military installation development authority authorized to impose a resort
             156      communities tax under Section 59-12-401 may not impose an additional resort communities
             157      sales tax under this section.
             158          Section 3. Section 63H-1-102 is amended to read:
             159           63H-1-102. Definitions.
             160          As used in this chapter:
             161          (1) "Authority" means the Military Installation Development Authority, created under
             162      Section 63H-1-201 .
             163          (2) "Base taxable value" means:
             164          (a) for military land or other land that was exempt from a property tax at the time that a
             165      project area was created that included the military land or other land, a taxable value of zero; or
             166          (b) for private property that is included in a project area, the taxable value of the
             167      property within any portion of the project area, as designated by board resolution, from which
             168      tax increment will be collected, as shown upon the assessment roll last equalized before the
             169      year in which the authority issues a [certificate of occupancy] building permit for a building
             170      within that portion of the project area.
             171          (3) "Board" means the governing body of the authority created under Section
             172      63H-1-301 .
             173          (4) (a) "Dedicated supplemental tax increment" means supplemental tax increment that
             174      results from a property tax levied by:
             175          [(a)] (i) a county, including any district the county has established under Subsection
             176      17-34-3 (2) to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to
             177      Unincorporated Areas; or
             178          [(b)] (ii) an included municipality.
             179          (b) "Dedicated supplemental tax increment" does not include a property tax levied by a
             180      county to assess and collect property taxes under Subsections 59-2-1602 (1) and (4).
             181          (5) "Development project" means a project to develop land within a project area.
             182          (6) "Elected member" means a member of the authority board who:



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         (a) is a mayor or member of a legislative body appointed under Subsection
             184      63H-1-302 (2)(b); or
             185          (b) (i) is appointed to the authority board under Subsection 63H-1-302 (2)(a) or (3); and
             186          (ii) concurrently serves in an elected state, county, or municipal office.
             187          (7) "Included municipality" means a municipality, some or all of which is included
             188      within a project area.
             189          (8) "Military land" means any land or facility, including any leased land or facility, that
             190      is part of a base, camp, post, station, yard, center, or installation under the jurisdiction of the
             191      U.S. Department of Defense or the Utah National Guard.
             192          (9) "Municipal energy tax" means a municipal energy sales and use tax under Title 10,
             193      Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
             194          (10) "Municipal services revenue" means revenue that the authority:
             195          (a) collects from the authority's:
             196          (i) levy of a municipal energy tax;
             197          (ii) levy of a telecommunications tax; [and]
             198          (iii) imposition of a transient room tax; and
             199          (iv) imposition of a resort communities tax;
             200          (b) receives under Subsection 59-12-205 (2)(b)(ii); and
             201          (c) receives as dedicated supplemental tax increment.
             202          (11) "Municipal tax" means a municipal energy tax, telecommunications tax, [or]
             203      transient room tax, or resort communities tax.
             204          (12) "Project area" means the land, including military land, whether consisting of a
             205      single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
             206      project area plan where the development project set forth in the project area plan or draft
             207      project area plan takes place or is proposed to take place.
             208          (13) "Project area budget" means a multiyear projection of annual or cumulative
             209      revenues and expenses and other fiscal matters pertaining to a project area that includes:
             210          (a) the base taxable value of property in the project area;
             211          (b) the projected tax increment expected to be generated within the project area;
             212          (c) the amount of tax increment expected to be shared with other taxing entities;
             213          (d) the amount of tax increment expected to be used to implement the project area plan,



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     including the estimated amount of tax increment to be used for land acquisition, public
             215      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             216      and public entities;
             217          (e) the tax increment expected to be used to cover the cost of administering the project
             218      area plan;
             219          (f) if tax increment is to be collected at different times or from different portions of the
             220      project area, or both:
             221          (i) (A) the tax identification numbers of the parcels from which tax increment will be
             222      collected; or
             223          (B) a legal description of the portion of the project area from which tax increment will
             224      be collected; and
             225          (ii) an estimate of when other portions of the project area will become subject to tax
             226      increment collection; and
             227          (g) for property that the authority owns or leases and expects to sell or sublease, the
             228      expected total cost of the property to the authority and the expected selling price or lease
             229      payments.
             230          (14) "Project area plan" means a written plan that, after its effective date, guides and
             231      controls the development within a project area.
             232          (15) "Property tax" includes privilege tax and each levy on an ad valorem basis on
             233      tangible or intangible personal or real property.
             234          (16) "Public entity" means:
             235          (a) the state, including any of its departments or agencies; or
             236          (b) a political subdivision of the state, including a county, city, town, school district,
             237      local district, special service district, or interlocal cooperation entity.
             238          (17) "Publicly owned infrastructure and improvements" means water, sewer, storm
             239      drainage, electrical, telecommunications, and other similar systems and lines, streets, roads,
             240      curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, and other
             241      buildings, facilities, infrastructure, and improvements [benefitting the public and to be] that:
             242          (a) benefit the public; and
             243          (b) are:
             244          (i) publicly owned or owned by a utility; or



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         (ii) publicly owned or publicly maintained or operated by the authority or another
             246      public entity.
             247          (18) "Remaining municipal services revenue" means municipal services revenue that
             248      the authority has not spent during its fiscal year for municipal services as provided in
             249      Subsection 63H-1-503 (1).
             250          (19) "Resort communities tax" means a sales and use tax imposed under Section
             251      59-12-401 .
             252          [(19)] (20) "Supplemental tax increment" means tax increment remaining after the
             253      authority is paid the tax increment it is entitled to receive under Subsection 63H-1-501 (1).
             254          [(20)] (21) "Taxable value" means the value of property as shown on the last equalized
             255      assessment roll as certified by the county assessor.
             256          [(21)] (22) "Tax increment" means the difference between:
             257          (a) the amount of property tax revenues generated each tax year by all taxing entities
             258      from the area within a project area designated in the project area plan as the area from which
             259      tax increment is to be collected, using the current assessed value of the property; and
             260          (b) the amount of property tax revenues that would be generated from that same area
             261      using the base taxable value of the property.
             262          [(22)] (23) "Taxing entity" means a public entity that levies a tax on property within a
             263      project area.
             264          [(23)] (24) "Telecommunications tax" means a telecommunications license tax under
             265      Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
             266          [(24)] (25) "Transient room tax" means a tax under Section 59-12-352 .
             267          Section 4. Section 63H-1-201 is amended to read:
             268           63H-1-201. Creation of military installation development authority -- Status and
             269      powers of authority -- Limitation.
             270          (1) There is created a military installation development authority.
             271          (2) The authority is:
             272          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
             273      succession and statewide jurisdiction, whose purpose is to facilitate the development of
             274      military land in a project area;
             275          (b) a political subdivision of the state; and



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         (c) a public corporation, as defined in Section 63E-1-102 .
             277          (3) The authority may:
             278          (a) as provided in this chapter, facilitate the development of [military] land within one
             279      or more project areas, [as provided in this chapter] including the ongoing operation of facilities
             280      within a project area;
             281          (b) sue and be sued;
             282          (c) enter into contracts generally;
             283          (d) buy, obtain an option upon, or otherwise acquire any interest in real or personal
             284      property:
             285          [(i) on military land; or]
             286          (i) in a project area; or
             287          (ii) outside [military land] a project area for publicly owned infrastructure and
             288      improvements, if the board considers the purchase, option, or other interest acquisition to be
             289      necessary for fulfilling the authority's development objectives;
             290          (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
             291      personal property;
             292          (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
             293          [(i) on military land; or]
             294          (i) in a project area; or
             295          (ii) outside [military land] a project area, if the board considers the lease to be
             296      necessary for fulfilling the authority's development objectives;
             297          (g) provide for the development of land within a project area under one or more
             298      contracts;
             299          (h) exercise powers and perform functions under a contract, as authorized in the
             300      contract;
             301          (i) exercise exclusive police power within a project area to the same extent as though
             302      the authority were a municipality, including the collection of regulatory fees;
             303          (j) receive tax increment and other taxes and fees as provided in this chapter;
             304          (k) accept financial or other assistance from any public or private source for the
             305      authority's activities, powers, and duties, and expend any funds so received for any of the
             306      purposes of this chapter;



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         (l) borrow money, contract with, or accept financial or other assistance from the federal
             308      government, a public entity, or any other source for any of the purposes of this chapter and
             309      comply with any conditions of the loan, contract, or assistance;
             310          (m) issue bonds to finance the undertaking of any development objectives of the
             311      authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
             312      Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
             313          (n) hire employees, including contract employees;
             314          (o) transact other business and exercise all other powers provided for in this chapter;
             315          (p) enter into a development agreement with a developer of [military] land within a
             316      project area;
             317          (q) enter into an agreement with a political subdivision of the state under which the
             318      political subdivision provides one or more municipal services within a project area;
             319          (r) enter into an agreement with a private contractor to provide one or more municipal
             320      services within a project area; and
             321          (s) exercise powers and perform functions that the authority is authorized by statute to
             322      exercise or perform.
             323          (4) The authority may not itself provide law enforcement service or fire protection
             324      service within a project area but may enter into an agreement for one or both of those services,
             325      as provided in Subsection (3)(q).
             326          Section 5. Section 63H-1-202 is amended to read:
             327           63H-1-202. Applicability of other law.
             328          (1) The authority or land within a project area is not subject to:
             329          (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
             330          (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
             331          (c) any ordinances or regulations of a county or municipality, including those relating
             332      to land use, health, business license, or franchise; or
             333          (d) the jurisdiction of any local district under Title 17B, Limited Purpose Local
             334      Government Entities - Local Districts, or special service district under Title 17D, Chapter 1,
             335      Special Service District Act.
             336          (2) The authority is subject to and governed by Sections 63E-2-106 , 63E-2-107 ,
             337      63E-2-108 , 63E-2-109 , 63E-2-110 , and 63E-2-111 , but is not otherwise subject to or governed



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     by Title 63E, Independent Entities Code.
             339          Section 6. Section 63H-1-203 is amended to read:
             340           63H-1-203. Levy of a municipal tax.
             341          Any levy of a municipal energy tax, a telecommunications tax, [or] a transient room
             342      tax, or a resort communities tax, including any increase in the applicable tax rate, requires the
             343      affirmative vote of:
             344          (1) the authority board; and
             345          (2) a majority of all elected members of the authority board.
             346          Section 7. Section 63H-1-302 is amended to read:
             347           63H-1-302. Number of board members -- Appointment.
             348          (1) The authority's board shall consist of seven members.
             349          (2) Five members of the board shall be appointed by the governor as follows:
             350          (a) one member shall be appointed [from recommendations from the Utah Defense
             351      Alliance] who is interested in supporting military efforts in the state;
             352          (b) subject to Subsection (4)(d), three members shall be appointed, each of whom is a
             353      mayor or member of the legislative body of a municipality or county that is adjacent or in close
             354      proximity to a project area or proposed project area; and
             355          (c) one member shall be appointed from the Governor's Office of Economic
             356      Development.
             357          (3) The president of the Senate and the speaker of the House of Representatives shall
             358      each appoint one board member.
             359          (4) (a) Each vacancy shall be filled in the same manner under this section as the
             360      appointment of the member whose vacancy is being filled.
             361          (b) Each person appointed to fill a vacancy shall serve the remaining unexpired term of
             362      the member whose vacancy the person is filling.
             363          (c) If a mayor or member of a legislative body appointed under Subsection (2)(b)
             364      leaves office as mayor or a member of the legislative body, a vacancy on the board occurs and
             365      the governor shall appoint another mayor or member of a legislative body, as provided in
             366      Subsection (2)(b), to fill the vacancy.
             367          (d) If there are more than three project areas located in different counties or
             368      municipalities, at the expiration of a member's term who is appointed under Subsection (2)(b),



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             369
     the governor shall appoint:
             370          (i) a mayor of a municipality or county that:
             371          (A) is adjacent to or in close proximity to a project area; and
             372          (B) is not already represented on the board; or
             373          (ii) a member of a legislative body of a municipality or county that:
             374          (A) is adjacent to or in close proximity to a project area; and
             375          (B) is not already represented on the board.
             376          [(d)] (e) A member of the board appointed by the governor, president of the Senate, or
             377      speaker of the House of Representatives serves at the pleasure of and may be removed and
             378      replaced at any time, with or without cause, by the governor, president of the Senate, or speaker
             379      of the House of Representatives, respectively.
             380          (5) The authority may:
             381          (a) appoint nonvoting members of the board; and
             382          (b) set terms for nonvoting members appointed under Subsection (5)(a).
             383          Section 8. Section 63H-1-401 is amended to read:
             384           63H-1-401. Preparation of project area plan -- Required contents of project area
             385      plan.
             386          (1) (a) Before spending any funds in a project area or entering into any lease or
             387      development agreement, the authority board shall adopt a project area plan as provided in this
             388      part.
             389          (b) In order to adopt a project area plan, the authority board shall:
             390          (i) prepare a draft project area plan;
             391          (ii) give notice as required under Subsection 63H-1-402 (2);
             392          (iii) hold at least one public meeting, as required under Subsection 63H-1-402 (1); and
             393          (iv) after holding at least one public meeting and subject to Subsection (1)(c), adopt the
             394      draft project area plan as the project area plan.
             395          (c) Before adopting a draft project area plan as the project area plan, the authority
             396      board may make modifications to the draft project area plan that the board considers necessary
             397      or appropriate.
             398          [(d) The authority board may not adopt a project area plan unless at least one of the
             399      board members appointed under Subsection 63I-1-302 (2)(b) is a mayor or member of the



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             400
     legislative body of a municipality that is adjacent or in close proximity to the project area
             401      described in the project area plan proposed to be adopted.]
             402          (2) Each project area plan and draft project area plan shall contain:
             403          (a) a legal description of the boundary of the project area that is the subject of the
             404      project area plan;
             405          (b) the authority's purposes and intent with respect to the project area; and
             406          (c) the board's findings and determination that:
             407          (i) there is a need to effectuate a public purpose;
             408          (ii) there is a public benefit to the proposed development project;
             409          (iii) it is economically sound and feasible to adopt and carry out the project area plan;
             410      and
             411          (iv) carrying out the project area plan will promote the public peace, health, safety, and
             412      welfare of the community in which the project area is located.
             413          (3) (a) A project area described in a project area plan:
             414          (i) shall include military land; and
             415          (ii) may include [private] one or all of the following:
             416          (A) private land if:
             417          [(A)] (I) the owner of the private land consents to the inclusion of the land within the
             418      project area;
             419          [(B)] (II) subject to Subsection (3)(b), the private land included within the project area
             420      is contiguous to the military land included within the project area;
             421          [(C)] (III) the total size of the project area does not exceed 100 acres; and
             422          [(D)] (IV) the project area is located within a county of the third, fourth, fifth, or sixth
             423      class[.];
             424          (B) up to an additional 150 acres of public or private land that is not contiguous to
             425      military land if:
             426          (I) the land is included in a project area that will include a hotel facility for current and
             427      retired military personnel at a military discount rate; S. [ and ] .S
             428          (II) the owner of the public or private land consents to the inclusion of the land in the
             429      project area; S. [ or ] and
             429a          (III) 50 or more acres of the 150 acres was jointly owned by a municipality and a county
             429b      on January 1, 2010; or .S
             430          (C) public or private land S. [ that is not contiguous ] , whether or not it is contiguous .S to


             430a      military land S. , .S if:



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             431
         (I) the legislative body of the county in which the public or private land is located
             432      passes a resolution consenting to the inclusion of the land in the project area;
             433          (II) the legislative body of an included municipality passes a resolution consenting to
             434      the inclusion of the land in the project area; and
             435          (III) the owner of the public or private land consents to the inclusion of the land in the
             436      project area.
             437          (b) Private land does not lose its contiguousness to military land because of the
             438      presence of a road or right-of-way.
             439          Section 9. Section 63H-1-402 is amended to read:
             440           63H-1-402. Public meeting to consider and discuss draft project area plan --
             441      Notice -- Adoption of plan.
             442          (1) The authority board shall hold at least one public meeting to consider and discuss
             443      the draft project area plan.
             444          (2) At least 10 days before holding a public meeting under Subsection (1), the authority
             445      board shall give notice of the public meeting to [taxing entities.]:
             446          (a) a taxing entity; and
             447          (b) a municipality that is located within one-half mile of the proposed project area.
             448          (3) Following consideration and discussion of the project area plan, the board may
             449      adopt the draft project area plan as the project area plan.
             450          Section 10. Section 63H-1-501 is amended to read:
             451           63H-1-501. Authority receipt and use of tax increment -- Distribution of tax
             452      increment.
             453          (1) (a) The authority may [receive and use]:
             454          (i) subject to Subsection (1)(b), receive up to 75% of tax increment for up to 25 years,
             455      as provided in this part[.]; and
             456          (ii) use tax increment during and after the period described in Subsection (1)(a)(i).
             457          (b) With respect to a parcel located within a project area, the 25-year period described
             458      in Subsection (1)(a)(i) shall begin on the day on which the authority receives the first tax
             459      increment from that parcel.
             460          (2) Improvements on a parcel within a project area become subject to property tax [in
             461      the year during which] on January 1 immediately following the day on which the authority



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             462
     issues a certificate of occupancy with respect to those improvements.
             463          (3) Each county that collects property tax on property within a project area shall pay
             464      and distribute to the authority the tax increment and dedicated supplemental tax increment that
             465      the authority is entitled to collect under this title, in the manner and at the time provided in
             466      Section 59-2-1365 .
             467          (4) (a) The board shall determine by resolution when the entire project area or an
             468      individual parcel within a project area is subject to tax increment.
             469          (b) The board shall amend the project area budget to reflect whether a parcel within a
             470      project area is subject to tax increment.
             471          Section 11. Section 63H-1-502 is amended to read:
             472           63H-1-502. Allowable uses of tax increment and other funds.
             473          (1) The authority may use tax increment and other funds available to the authority,
             474      other than municipal services revenue:
             475          (a) for any [of the purposes for which the use of tax increment is] purpose authorized
             476      under this chapter;
             477          (b) for administrative, overhead, legal, and other operating expenses of the authority;
             478          (c) to pay for, including financing or refinancing, all or part of the development of
             479      [military] land within the project area from which the tax increment funds or other funds were
             480      collected, including assisting the ongoing operation of any development or facility within the
             481      project area;
             482          (d) to pay the cost of the installation and construction of any publicly owned
             483      infrastructure and improvements within the project area from which the tax increment funds
             484      were collected;
             485          (e) to pay the cost of the installation of publicly owned infrastructure and
             486      improvements outside the project area S. [ from which the tax increment funds were collected ] .S
             486a      if the
             487      authority board determines by resolution that the infrastructure and improvements are of
             488      benefit to the project area; and
             489          (f) to pay the principal of and interest on bonds issued by the authority.
             490          (2) The authority may use revenue generated from the operation of publicly owned
             491      infrastructure operated by the authority or improvements operated by the authority to:
             492          (a) operate and maintain the infrastructure or improvements; and



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             493
         (b) pay for authority operating expenses, including administrative, overhead, and legal
             494      expenses.
             495          (3) For purposes of Subsection (1), the authority may use:
             496          (a) tax revenues received under Subsection 59-12-205 (2)(b)(ii); and
             497          (b) resort communities tax revenues generated from a project area that contains private
             498      land.
             499          [(2)] (4) The determination of the authority board under Subsection (1)(e) regarding
             500      benefit to the project area shall be final and conclusive.
             501          Section 12. Section 63H-1-504 is enacted to read:
             502          63H-1-504. Authority funds nonlapsing.
             503          All funds received by the authority are nonlapsing.
             504          Section 13. Section 63H-1-602 is amended to read:
             505           63H-1-602. Sources from which bonds may be made payable -- Authority powers
             506      regarding bonds.
             507          (1) The principal and interest on bonds issued by the authority may be made payable
             508      from:
             509          (a) the income and revenues of the projects financed with the proceeds of the bonds;
             510          (b) the income and revenues of certain designated projects whether or not they were
             511      financed in whole or in part with the proceeds of the bonds;
             512          (c) the income, proceeds, revenues, property, and funds the authority derives from or
             513      holds in connection with its undertaking and carrying out development of [military land] a
             514      project area;
             515          (d) tax increment funds;
             516          (e) authority revenues generally;
             517          (f) a contribution, loan, grant, or other financial assistance from the federal government
             518      or a public entity in aid of the development of military land; or
             519          (g) funds derived from any combination of the methods listed in Subsections (1)(a)
             520      through (f).
             521          (2) In connection with the issuance of authority bonds, the authority may:
             522          (a) pledge all or any part of its gross or net rents, fees, or revenues to which its right
             523      then exists or may thereafter come into existence;



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             524
         (b) encumber by mortgage, deed of trust, or otherwise all or any part of its real or
             525      personal property, then owned or thereafter acquired; and
             526          (c) make the covenants and take the action that may be necessary, convenient, or
             527      desirable to secure its bonds, or, except as otherwise provided in this chapter, that will tend to
             528      make the bonds more marketable, even though such covenants or actions are not specifically
             529      enumerated in this chapter.
             530          Section 14. Section 63J-1-602 is amended to read:
             531           63J-1-602. Nonlapsing accounts and funds.
             532          (1) The following revenue collections, appropriations from a fund or account, and
             533      appropriations to a program are nonlapsing:
             534          (a) appropriations made to the Legislature and its committees;
             535          (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
             536          (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
             537          (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
             538          (e) funds collected by pesticide dealer license registration fees, as provided in Section
             539      4-14-3 ;
             540          (f) funds collected by pesticide applicator business registration fees, as provided in
             541      Section 4-14-13 ;
             542          (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
             543          (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
             544      Act, as provided in Section 4-35-6 ;
             545          (i) the Percent-for-Art Program created in Section 9-6-404 ;
             546          (j) the Centennial History Fund created in Section 9-8-604 ;
             547          (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
             548          (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
             549          (m) the LeRay McAllister Critical Land Conservation Program created in Section
             550      11-38-301 ;
             551          (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
             552          (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
             553      Section 19-6-120 ;
             554          (p) an appropriation made to the Division of Wildlife Resources for the appraisal and



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             555
     purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
             556          (q) award monies under the Crime Reduction Assistance Program, as provided under
             557      Section 24-1-19 ;
             558          (r) funds collected from the emergency medical services grant program, as provided in
             559      Section 26-8a-207 ;
             560          (s) fees and other funding available to purchase training equipment and to administer
             561      tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
             562          (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
             563      federal Social Security Act, as provided in Section 26-18-3 ;
             564          (u) the Utah Health Care Workforce Financial Assistance Program created in Section
             565      26-46-102 ;
             566          (v) monies collected from subscription fees for publications prepared or distributed by
             567      the insurance commissioner, as provided in Section 31A-2-208 ;
             568          (w) monies received by the Insurance Department for administering, investigating
             569      under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
             570          (x) certain monies received for penalties paid under the Insurance Fraud Act, as
             571      provided in Section 31A-31-109 ;
             572          (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
             573      provided in Section 31A-38-104 ;
             574          (z) certain funds in the Department of Workforce Services' program for the education,
             575      training, and transitional counseling of displaced homemakers, as provided in Section
             576      35A-3-114 ;
             577          (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
             578          (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
             579          (cc) funding for a new program or agency that is designated as nonlapsing under
             580      Section 36-24-101 ;
             581          (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
             582          (ee) funds available to the State Tax Commission for purchase and distribution of
             583      license plates and decals, as provided in Section 41-1a-1201 ;
             584          (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
             585      provided in Section 41-1a-1221 ;



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             586
         (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
             587      Regulation Act, as provided in Section 41-3-601 ;
             588          (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
             589      Regulation Act, as provided in Section 41-3-604 ;
             590          (ii) the Off-Highway Access and Education Restricted Account created in Section
             591      41-22-19.5 ;
             592          (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
             593      provided in Section 41-22-36 ;
             594          (kk) monies collected under the Notaries Public Reform Act, as provided under
             595      46-1-23 ;
             596          (ll) certain funds associated with the Law Enforcement Operations Account, as
             597      provided in Section 51-9-411 ;
             598          (mm) the Public Safety Honoring Heroes Restricted Account created in Section
             599      53-1-118 ;
             600          (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
             601      Section 53-2-107 ;
             602          (oo) appropriations made to the Department of Public Safety from the Department of
             603      Public Safety Restricted Account, as provided in Section 53-3-106 ;
             604          (pp) appropriations to the Motorcycle Rider Education Program, as provided in Section
             605      53-3-905 ;
             606          (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
             607      and Safety Act, as provided in Section 53-7-314 ;
             608          (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
             609          (ss) the minimum school program, as provided in Section 53A-17a-105 ;
             610          (tt) certain funds appropriated from the Uniform School Fund to the State Board of
             611      Education for new teacher bonus and performance-based compensation plans, as provided in
             612      Section 53A-17a-148 ;
             613          (uu) certain funds appropriated from the Uniform School Fund to the State Board of
             614      Education for implementation of proposals to improve mathematics achievement test scores, as
             615      provided in Section 53A-17a-152 ;
             616          (vv) the School Building Revolving Account created in Section 53A-21-401 ;



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             617
         (ww) monies received by the State Office of Rehabilitation for the sale of certain
             618      products or services, as provided in Section 53A-24-105 ;
             619          (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
             620          (yy) certain funds appropriated from the General Fund to the State Board of Regents
             621      for teacher preparation programs, as provided in Section 53B-6-104 ;
             622          (zz) a certain portion of monies collected for administrative costs under the School
             623      Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
             624          (aaa) certain surcharges on residence and business telecommunications access lines
             625      imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
             626          (bbb) certain fines collected by the Division of Occupational and Professional
             627      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             628      enforcement purposes, as provided in Section 58-17b-505 ;
             629          (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
             630          (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
             631          (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
             632      58-44a-103 ;
             633          (fff) funding for the building inspector's education program, as provided in Section
             634      58-56-9 ;
             635          (ggg) certain fines collected by the Division of Occupational and Professional
             636      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             637      provided in Section 58-63-103 ;
             638          (hhh) the Professional Geologist Education and Enforcement Fund created in Section
             639      58-76-103 ;
             640          (iii) certain monies in the Water Resources Conservation and Development Fund, as
             641      provided in Section 59-12-103 ;
             642          (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
             643      check for broker and sales agent licenses, as provided in Section 61-2-9 ;
             644          (kkk) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 ;
             645          (lll) funds paid to the Division of Real Estate for the cost of a criminal background
             646      check for a mortgage loan license, as provided in Section 61-2c-202 ;
             647          (mmm) funds paid to the Division of Real Estate in relation to examination of records



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             648
     in an investigation, as provided in Section 61-2c-401 ;
             649          (nnn) certain funds donated to the Department of Human Services, as provided in
             650      Section 62A-1-111 ;
             651          (ooo) certain funds donated to the Division of Child and Family Services, as provided
             652      in Section 62A-4a-110 ;
             653          (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
             654      Section 62A-13-109 ;
             655          (qqq) assessments for DUI violations that are forwarded to an account created by a
             656      county treasurer, as provided in Section 62A-15-503 ;
             657          (rrr) appropriations to the Division of Services for People with Disabilities, as provided
             658      in Section 62A-5-102 ;
             659          (sss) certain donations to the Division of Substance Abuse and Mental Health, as
             660      provided in Section 62A-15-103 ;
             661          (ttt) certain funds received by the Division of Parks and Recreation from the sale or
             662      disposal of buffalo, as provided under Section 63-11-19.2 ;
             663          (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
             664      Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
             665          (vvv) revenue for golf user fees at the Green River State Park, as provided under
             666      Section 63-11-19.6 ;
             667          (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
             668      Section 63-11a-503 ;
             669          (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
             670          (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;
             671          (zzz) the Risk Management Fund created under Section 63A-4-201 ;
             672          (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
             673          (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
             674          (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
             675      provided in Section 63C-6-104 ;
             676          (dddd) funding for the Medical Education Program administered by the Medical
             677      Education Council, as provided in Section 63C-8-102 ;
             678          (eeee) certain monies payable for commission expenses of the Pete Suazo Utah



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             679
     Athletic Commission, as provided under Section 63C-11-301 ;
             680          (ffff) funds collected for publishing the Division of Administrative Rules' publications,
             681      as provided in Section 63G-3-402 ;
             682          (gggg) monies received by the military installation development authority, as provided
             683      in Section 63H-1-504 ;
             684          [(gggg)] (hhhh) the appropriation to fund the Governor's Office of Economic
             685      Development's Enterprise Zone Act, as provided in Section 63M-1-416 ;
             686          [(hhhh)] (iiii) the Tourism Marketing Performance Account, as provided in Section
             687      63M-1-1406 ;
             688          [(iiii)] (jjjj) certain funding for rural development provided to the Office of Rural
             689      Development in the Governor's Office of Economic Development, as provided in Section
             690      63M-1-1604 ;
             691          [(jjjj)] (kkkk) certain monies in the Development for Disadvantaged Rural
             692      Communities Restricted Account, as provided in Section 63M-1-2003 ;
             693          [(kkkk)] (llll) appropriations to the Utah Science Technology and Research Governing
             694      Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
             695          [(llll)] (mmmm) certain monies in the Rural Broadband Service Fund, as provided in
             696      Section 63M-1-2303 ;
             697          [(mmmm)] (nnnn) funds collected from monthly offender supervision fees, as provided
             698      in Section 64-13-21.2 ;
             699          [(nnnn)] (oooo) funds collected by the housing of state probationary inmates or state
             700      parole inmates, as provided in Subsection 64-13e-104 (2);
             701          [(oooo)] (pppp) the Sovereign Lands Management account created in Section 65A-5-1 ;
             702          [(pppp)] (qqqq) certain forestry and fire control funds utilized by the Division of
             703      Forestry, Fire, and State Lands, as provided in Section 65A-8-103 ;
             704          [(qqqq)] (rrrr) the Department of Human Resource Management user training program,
             705      as provided in Section 67-19-6 ;
             706          [(rrrr)] (ssss) funds for the University of Utah Poison Control Center program, as
             707      provided in Section 69-2-5.5 ;
             708          [(ssss)] (tttt) appropriations to the Transportation Corridor Preservation Revolving
             709      Loan Fund, as provided in Section 72-2-117 ;



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             710
         [(tttt)] (uuuu) appropriations to the Local Transportation Corridor Preservation Fund,
             711      as provided in Section 72-2-117.5 ;
             712          [(uuuu)] (vvvv) appropriations to the Tollway Restricted Special Revenue Fund, as
             713      provided in Section 77-2-120 ;
             714          [(vvvv)] (wwww) appropriations to the Aeronautics Construction Revolving Loan
             715      Fund, as provided in Section 77-2-122 ;
             716          [(wwww)] (xxxx) appropriations to the State Park Access Highways Improvement
             717      Program, as provided in Section 72-3-207 ;
             718          [(xxxx)] (yyyy) the Traffic Noise Abatement Program created in Section 72-6-112 ;
             719          [(yyyy)] (zzzz) certain funds received by the Office of the State Engineer for well
             720      drilling fines or bonds, as provided in Section 73-3-25 ;
             721          [(zzzz)] (aaaaa) certain monies appropriated to increase the carrying capacity of the
             722      Jordan River that are transferred to the Division of Parks and Recreation, as provided in
             723      Section 73-10e-1 ;
             724          [(aaaaa)] (bbbbb) certain fees for the cost of electronic payments under the State
             725      Boating Act, as provided in Section 73-18-25 ;
             726          [(bbbbb)] (ccccc) certain monies appropriated from the Water Resources Conservation
             727      and Development Fund, as provided in Section 73-23-2 ;
             728          [(ccccc)] (ddddd) the Lake Powell Pipeline Project Operation and Maintenance Fund
             729      created in Section 73-28-404 ;
             730          [(ddddd)] (eeeee) certain funds in the Water Development and Flood Mitigation
             731      Reserve Account, as provided in Section 73-103-1 ;
             732          [(eeeee)] (fffff) certain funds appropriated for compensation for special prosecutors, as
             733      provided in Section 77-10a-19 ;
             734          [(fffff)] (ggggg) the Indigent Aggravated Murder Defense Trust Fund created in
             735      Section 77-32-601 ;
             736          [(ggggg)] (hhhhh) the Indigent Felony Defense Trust Fund created in Section
             737      77-32-701 ;
             738          [(hhhhh)] (iiiii) funds donated or paid to a juvenile court by private sources, as
             739      provided in Subsection 78A-6-203 (1)(c);
             740          [(iiiii)] (jjjjj) a state rehabilitative employment program, as provided in Section



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             741
     78A-6-210 ; and
             742          [(jjjjj)] (kkkkk) fees from the issuance and renewal of licenses for certified court
             743      interpreters, as provided in Section 78B-1-146 .
             744          (2) No revenue collection, appropriation from a fund or account, or appropriation to a
             745      program may be treated as nonlapsing unless:
             746          (a) it is expressly referenced by this section;
             747          (b) it is designated in a condition of appropriation in the appropriations bill; or
             748          (c) nonlapsing authority is granted under Section 63J-1-603 .
             749          (3) Each legislative appropriations subcommittee shall review the accounts and funds
             750      that have been granted nonlapsing authority under this section or Section 63J-1-603 .
             751          Section 15. Effective date.
             752          If approved by two-thirds of all the members elected to each house, this bill takes effect
             753      upon approval by the governor, or the day following the constitutional time limit of Utah
             754      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             755      the date of veto override.





Legislative Review Note
    as of 1-28-10 3:01 PM


Office of Legislative Research and General Counsel


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