S.B. 124 Enrolled

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:
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:
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,
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
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 .
152 (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:
183 (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,
214 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
245 (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
276 (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;
307 (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

338 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),
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
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;
428 (II) the owner of the public or private land consents to the inclusion of the land in the
429 project area; and
430 (III) 50 or more acres of the 150 acres was jointly owned by a municipality and a
431 county on January 1, 2010; or
432 (C) public or private land, whether or not it is contiguous to military land, if:
433 (I) the legislative body of the county in which the public or private land is located
434 passes a resolution consenting to the inclusion of the land in the project area;
435 (II) the legislative body of an included municipality passes a resolution consenting to
436 the inclusion of the land in the project area; and
437 (III) the owner of the public or private land consents to the inclusion of the land in the
438 project area.
439 (b) Private land does not lose its contiguousness to military land because of the
440 presence of a road or right-of-way.
441 Section 9. Section 63H-1-402 is amended to read:
442 63H-1-402. Public meeting to consider and discuss draft project area plan --
443 Notice -- Adoption of plan.
444 (1) The authority board shall hold at least one public meeting to consider and discuss
445 the draft project area plan.
446 (2) At least 10 days before holding a public meeting under Subsection (1), the authority
447 board shall give notice of the public meeting to [taxing entities.]:
448 (a) a taxing entity; and
449 (b) a municipality that is located within one-half mile of the proposed project area.

450 (3) Following consideration and discussion of the project area plan, the board may
451 adopt the draft project area plan as the project area plan.
452 Section 10. Section 63H-1-501 is amended to read:
453 63H-1-501. Authority receipt and use of tax increment -- Distribution of tax
454 increment.
455 (1) (a) The authority may [receive and use]:
456 (i) subject to Subsection (1)(b), receive up to 75% of tax increment for up to 25 years,
457 as provided in this part[.]; and
458 (ii) use tax increment during and after the period described in Subsection (1)(a)(i).
459 (b) With respect to a parcel located within a project area, the 25-year period described
460 in Subsection (1)(a)(i) shall begin on the day on which the authority receives the first tax
461 increment from that parcel.
462 (2) Improvements on a parcel within a project area become subject to property tax [in
463 the year during which] on January 1 immediately following the day on which the authority
464 issues a certificate of occupancy with respect to those improvements.
465 (3) Each county that collects property tax on property within a project area shall pay
466 and distribute to the authority the tax increment and dedicated supplemental tax increment that
467 the authority is entitled to collect under this title, in the manner and at the time provided in
468 Section 59-2-1365 .
469 (4) (a) The board shall determine by resolution when the entire project area or an
470 individual parcel within a project area is subject to tax increment.
471 (b) The board shall amend the project area budget to reflect whether a parcel within a
472 project area is subject to tax increment.
473 Section 11. Section 63H-1-502 is amended to read:
474 63H-1-502. Allowable uses of tax increment and other funds.
475 (1) The authority may use tax increment and other funds available to the authority,
476 other than municipal services revenue:
477 (a) for any [of the purposes for which the use of tax increment is] purpose authorized

478 under this chapter;
479 (b) for administrative, overhead, legal, and other operating expenses of the authority;
480 (c) to pay for, including financing or refinancing, all or part of the development of
481 [military] land within the project area from which the tax increment funds or other funds were
482 collected, including assisting the ongoing operation of any development or facility within the
483 project area;
484 (d) to pay the cost of the installation and construction of any publicly owned
485 infrastructure and improvements within the project area from which the tax increment funds
486 were collected;
487 (e) to pay the cost of the installation of publicly owned infrastructure and
488 improvements outside the project area [from which the tax increment funds were collected] if
489 the authority board determines by resolution that the infrastructure and improvements are of
490 benefit to the project area; and
491 (f) to pay the principal of and interest on bonds issued by the authority.
492 (2) The authority may use revenue generated from the operation of publicly owned
493 infrastructure operated by the authority or improvements operated by the authority to:
494 (a) operate and maintain the infrastructure or improvements; and
495 (b) pay for authority operating expenses, including administrative, overhead, and legal
496 expenses.
497 (3) For purposes of Subsection (1), the authority may use:
498 (a) tax revenues received under Subsection 59-12-205 (2)(b)(ii); and
499 (b) resort communities tax revenues generated from a project area that contains private
500 land.
501 [(2)] (4) The determination of the authority board under Subsection (1)(e) regarding
502 benefit to the project area shall be final and conclusive.
503 Section 12. Section 63H-1-504 is enacted to read:
504 63H-1-504. Authority funds nonlapsing.
505 All funds received by the authority are nonlapsing.

506 Section 13. Section 63H-1-602 is amended to read:
507 63H-1-602. Sources from which bonds may be made payable -- Authority powers
508 regarding bonds.
509 (1) The principal and interest on bonds issued by the authority may be made payable
510 from:
511 (a) the income and revenues of the projects financed with the proceeds of the bonds;
512 (b) the income and revenues of certain designated projects whether or not they were
513 financed in whole or in part with the proceeds of the bonds;
514 (c) the income, proceeds, revenues, property, and funds the authority derives from or
515 holds in connection with its undertaking and carrying out development of [military land] a
516 project area;
517 (d) tax increment funds;
518 (e) authority revenues generally;
519 (f) a contribution, loan, grant, or other financial assistance from the federal government
520 or a public entity in aid of the development of military land; or
521 (g) funds derived from any combination of the methods listed in Subsections (1)(a)
522 through (f).
523 (2) In connection with the issuance of authority bonds, the authority may:
524 (a) pledge all or any part of its gross or net rents, fees, or revenues to which its right
525 then exists or may thereafter come into existence;
526 (b) encumber by mortgage, deed of trust, or otherwise all or any part of its real or
527 personal property, then owned or thereafter acquired; and
528 (c) make the covenants and take the action that may be necessary, convenient, or
529 desirable to secure its bonds, or, except as otherwise provided in this chapter, that will tend to
530 make the bonds more marketable, even though such covenants or actions are not specifically
531 enumerated in this chapter.
532 Section 14. Section 63J-1-602 is amended to read:
533 63J-1-602. Nonlapsing accounts and funds.

534 (1) The following revenue collections, appropriations from a fund or account, and
535 appropriations to a program are nonlapsing:
536 (a) appropriations made to the Legislature and its committees;
537 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
538 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
539 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
540 (e) funds collected by pesticide dealer license registration fees, as provided in Section
541 4-14-3 ;
542 (f) funds collected by pesticide applicator business registration fees, as provided in
543 Section 4-14-13 ;
544 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
545 (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
546 Act, as provided in Section 4-35-6 ;
547 (i) the Percent-for-Art Program created in Section 9-6-404 ;
548 (j) the Centennial History Fund created in Section 9-8-604 ;
549 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
550 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
551 (m) the LeRay McAllister Critical Land Conservation Program created in Section
552 11-38-301 ;
553 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
554 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
555 Section 19-6-120 ;
556 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
557 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
558 (q) award monies under the Crime Reduction Assistance Program, as provided under
559 Section 24-1-19 ;
560 (r) funds collected from the emergency medical services grant program, as provided in
561 Section 26-8a-207 ;

562 (s) fees and other funding available to purchase training equipment and to administer
563 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
564 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
565 federal Social Security Act, as provided in Section 26-18-3 ;
566 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
567 26-46-102 ;
568 (v) monies collected from subscription fees for publications prepared or distributed by
569 the insurance commissioner, as provided in Section 31A-2-208 ;
570 (w) monies received by the Insurance Department for administering, investigating
571 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
572 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
573 provided in Section 31A-31-109 ;
574 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
575 provided in Section 31A-38-104 ;
576 (z) certain funds in the Department of Workforce Services' program for the education,
577 training, and transitional counseling of displaced homemakers, as provided in Section
578 35A-3-114 ;
579 (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
580 (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
581 (cc) funding for a new program or agency that is designated as nonlapsing under
582 Section 36-24-101 ;
583 (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
584 (ee) funds available to the State Tax Commission for purchase and distribution of
585 license plates and decals, as provided in Section 41-1a-1201 ;
586 (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
587 provided in Section 41-1a-1221 ;
588 (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
589 Regulation Act, as provided in Section 41-3-601 ;

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

618 (vv) the School Building Revolving Account created in Section 53A-21-401 ;
619 (ww) monies received by the State Office of Rehabilitation for the sale of certain
620 products or services, as provided in Section 53A-24-105 ;
621 (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
622 (yy) certain funds appropriated from the General Fund to the State Board of Regents
623 for teacher preparation programs, as provided in Section 53B-6-104 ;
624 (zz) a certain portion of monies collected for administrative costs under the School
625 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
626 (aaa) certain surcharges on residence and business telecommunications access lines
627 imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
628 (bbb) certain fines collected by the Division of Occupational and Professional
629 Licensing for violation of unlawful or unprofessional conduct that are used for education and
630 enforcement purposes, as provided in Section 58-17b-505 ;
631 (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
632 (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
633 (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
634 58-44a-103 ;
635 (fff) funding for the building inspector's education program, as provided in Section
636 58-56-9 ;
637 (ggg) certain fines collected by the Division of Occupational and Professional
638 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
639 provided in Section 58-63-103 ;
640 (hhh) the Professional Geologist Education and Enforcement Fund created in Section
641 58-76-103 ;
642 (iii) certain monies in the Water Resources Conservation and Development Fund, as
643 provided in Section 59-12-103 ;
644 (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
645 check for broker and sales agent licenses, as provided in Section 61-2-9 ;

646 (kkk) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 ;
647 (lll) funds paid to the Division of Real Estate for the cost of a criminal background
648 check for a mortgage loan license, as provided in Section 61-2c-202 ;
649 (mmm) funds paid to the Division of Real Estate in relation to examination of records
650 in an investigation, as provided in Section 61-2c-401 ;
651 (nnn) certain funds donated to the Department of Human Services, as provided in
652 Section 62A-1-111 ;
653 (ooo) certain funds donated to the Division of Child and Family Services, as provided
654 in Section 62A-4a-110 ;
655 (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
656 Section 62A-13-109 ;
657 (qqq) assessments for DUI violations that are forwarded to an account created by a
658 county treasurer, as provided in Section 62A-15-503 ;
659 (rrr) appropriations to the Division of Services for People with Disabilities, as provided
660 in Section 62A-5-102 ;
661 (sss) certain donations to the Division of Substance Abuse and Mental Health, as
662 provided in Section 62A-15-103 ;
663 (ttt) certain funds received by the Division of Parks and Recreation from the sale or
664 disposal of buffalo, as provided under Section 63-11-19.2 ;
665 (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
666 Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
667 (vvv) revenue for golf user fees at the Green River State Park, as provided under
668 Section 63-11-19.6 ;
669 (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
670 Section 63-11a-503 ;
671 (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
672 (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;
673 (zzz) the Risk Management Fund created under Section 63A-4-201 ;

674 (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
675 (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
676 (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
677 provided in Section 63C-6-104 ;
678 (dddd) funding for the Medical Education Program administered by the Medical
679 Education Council, as provided in Section 63C-8-102 ;
680 (eeee) certain monies payable for commission expenses of the Pete Suazo Utah
681 Athletic Commission, as provided under Section 63C-11-301 ;
682 (ffff) funds collected for publishing the Division of Administrative Rules' publications,
683 as provided in Section 63G-3-402 ;
684 (gggg) monies received by the military installation development authority, as provided
685 in Section 63H-1-504 ;
686 [(gggg)] (hhhh) the appropriation to fund the Governor's Office of Economic
687 Development's Enterprise Zone Act, as provided in Section 63M-1-416 ;
688 [(hhhh)] (iiii) the Tourism Marketing Performance Account, as provided in Section
689 63M-1-1406 ;
690 [(iiii)] (jjjj) certain funding for rural development provided to the Office of Rural
691 Development in the Governor's Office of Economic Development, as provided in Section
692 63M-1-1604 ;
693 [(jjjj)] (kkkk) certain monies in the Development for Disadvantaged Rural
694 Communities Restricted Account, as provided in Section 63M-1-2003 ;
695 [(kkkk)] (llll) appropriations to the Utah Science Technology and Research Governing
696 Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
697 [(llll)] (mmmm) certain monies in the Rural Broadband Service Fund, as provided in
698 Section 63M-1-2303 ;
699 [(mmmm)] (nnnn) funds collected from monthly offender supervision fees, as provided
700 in Section 64-13-21.2 ;
701 [(nnnn)] (oooo) funds collected by the housing of state probationary inmates or state

702 parole inmates, as provided in Subsection 64-13e-104 (2);
703 [(oooo)] (pppp) the Sovereign Lands Management account created in Section 65A-5-1 ;
704 [(pppp)] (qqqq) certain forestry and fire control funds utilized by the Division of
705 Forestry, Fire, and State Lands, as provided in Section 65A-8-103 ;
706 [(qqqq)] (rrrr) the Department of Human Resource Management user training program,
707 as provided in Section 67-19-6 ;
708 [(rrrr)] (ssss) funds for the University of Utah Poison Control Center program, as
709 provided in Section 69-2-5.5 ;
710 [(ssss)] (tttt) appropriations to the Transportation Corridor Preservation Revolving
711 Loan Fund, as provided in Section 72-2-117 ;
712 [(tttt)] (uuuu) appropriations to the Local Transportation Corridor Preservation Fund,
713 as provided in Section 72-2-117.5 ;
714 [(uuuu)] (vvvv) appropriations to the Tollway Restricted Special Revenue Fund, as
715 provided in Section 77-2-120 ;
716 [(vvvv)] (wwww) appropriations to the Aeronautics Construction Revolving Loan
717 Fund, as provided in Section 77-2-122 ;
718 [(wwww)] (xxxx) appropriations to the State Park Access Highways Improvement
719 Program, as provided in Section 72-3-207 ;
720 [(xxxx)] (yyyy) the Traffic Noise Abatement Program created in Section 72-6-112 ;
721 [(yyyy)] (zzzz) certain funds received by the Office of the State Engineer for well
722 drilling fines or bonds, as provided in Section 73-3-25 ;
723 [(zzzz)] (aaaaa) certain monies appropriated to increase the carrying capacity of the
724 Jordan River that are transferred to the Division of Parks and Recreation, as provided in
725 Section 73-10e-1 ;
726 [(aaaaa)] (bbbbb) certain fees for the cost of electronic payments under the State
727 Boating Act, as provided in Section 73-18-25 ;
728 [(bbbbb)] (ccccc) certain monies appropriated from the Water Resources Conservation
729 and Development Fund, as provided in Section 73-23-2 ;

730 [(ccccc)] (ddddd) the Lake Powell Pipeline Project Operation and Maintenance Fund
731 created in Section 73-28-404 ;
732 [(ddddd)] (eeeee) certain funds in the Water Development and Flood Mitigation
733 Reserve Account, as provided in Section 73-103-1 ;
734 [(eeeee)] (fffff) certain funds appropriated for compensation for special prosecutors, as
735 provided in Section 77-10a-19 ;
736 [(fffff)] (ggggg) the Indigent Aggravated Murder Defense Trust Fund created in
737 Section 77-32-601 ;
738 [(ggggg)] (hhhhh) the Indigent Felony Defense Trust Fund created in Section
739 77-32-701 ;
740 [(hhhhh)] (iiiii) funds donated or paid to a juvenile court by private sources, as
741 provided in Subsection 78A-6-203 (1)(c);
742 [(iiiii)] (jjjjj) a state rehabilitative employment program, as provided in Section
743 78A-6-210 ; and
744 [(jjjjj)] (kkkkk) fees from the issuance and renewal of licenses for certified court
745 interpreters, as provided in Section 78B-1-146 .
746 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
747 program may be treated as nonlapsing unless:
748 (a) it is expressly referenced by this section;
749 (b) it is designated in a condition of appropriation in the appropriations bill; or
750 (c) nonlapsing authority is granted under Section 63J-1-603 .
751 (3) Each legislative appropriations subcommittee shall review the accounts and funds
752 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
753 Section 15. Effective date.
754 If approved by two-thirds of all the members elected to each house, this bill takes effect
755 upon approval by the governor, or the day following the constitutional time limit of Utah
756 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
757 the date of veto override.

758