S.B. 70 Enrolled

1

COMMUNITY DEVELOPMENT AND RENEWAL AGENCIES
2 AMENDMENTS
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis S. Bramble
6 House Sponsor: Brad L. Dee
7
8 LONG TITLE
9 General Description:
10 This bill amends provisions of the Community Development and Renewal Agencies
11 Act.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . amends taxing entity committee provisions;
16 . amends tax increment and sales tax use provisions;
17 . amends agency report provisions;
18 . amends urban renewal project area budget provisions;
19 . authorizes an agency to approve an urban renewal project area budget extension;
20 . amends provisions authorizing an agency board to make a finding of blight;
21 . enacts provisions related to a railroad crossing within an urban renewal project area;
22 . amends economic development project area budget provisions;
23 . authorizes an agency to approve an economic development project area budget
24 extension;
25 . amends community development project area budget provisions; and
26 . makes technical corrections.
27 Money Appropriated in this Bill:
28 None
29 Other Special Clauses:

30 None
31 Utah Code Sections Affected:
32 AMENDS:
33 17C-1-102, as last amended by Laws of Utah 2010, Chapter 279
34 17C-1-204, as last amended by Laws of Utah 2009, Chapter 387
35 17C-1-401, as last amended by Laws of Utah 2010, Chapter 279
36 17C-1-402, as last amended by Laws of Utah 2009, Chapter 387
37 17C-1-409, as last amended by Laws of Utah 2010, Chapter 279
38 17C-1-603, as renumbered and amended by Laws of Utah 2006, Chapter 359
39 17C-2-206, as last amended by Laws of Utah 2010, Chapter 279
40 17C-2-303, as last amended by Laws of Utah 2008, Chapter 125
41 17C-3-205, as last amended by Laws of Utah 2010, Chapter 279
42 17C-4-204, as enacted by Laws of Utah 2006, Chapter 359
43 ENACTS:
44 17C-2-207, Utah Code Annotated 1953
45 17C-2-701, Utah Code Annotated 1953
46 17C-3-206, Utah Code Annotated 1953
47
48 Be it enacted by the Legislature of the state of Utah:
49 Section 1. Section 17C-1-102 is amended to read:
50 17C-1-102. Definitions.
51 As used in this title:
52 (1) "Adjusted tax increment" means:
53 (a) for tax increment under a pre-July 1, 1993, project area plan, tax increment under
54 Section 17C-1-403 , excluding tax increment under Subsection 17C-1-403 (3); and
55 (b) for tax increment under a post-June 30, 1993, project area plan, tax increment under
56 Section 17C-1-404 , excluding tax increment under Section 17C-1-406 .
57 (2) "Affordable housing" means housing to be owned or occupied by persons and

58 families of low or moderate income, as determined by resolution of the agency.
59 (3) "Agency" or "community development and renewal agency" means a separate body
60 corporate and politic, created under Section 17C-1-201 or as a redevelopment agency under
61 previous law, that is a political subdivision of the state, that is created to undertake or promote
62 urban renewal, economic development, or community development, or any combination of
63 them, as provided in this title, and whose geographic boundaries are coterminous with:
64 (a) for an agency created by a county, the unincorporated area of the county; and
65 (b) for an agency created by a city or town, the boundaries of the city or town.
66 (4) "Annual income" has the meaning as defined under regulations of the U.S.
67 Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
68 superseded by replacement regulations.
69 (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
70 (6) "Base taxable value" means:
71 (a) for an urban renewal or economic development project area, the taxable value of
72 the property within a project area from which tax increment will be collected, as shown upon
73 the assessment roll last equalized before:
74 (i) for a pre-July 1, 1993, project area plan, the effective date of the project area plan;
75 (ii) for a post-June 30, 1993, project area plan:
76 (A) the date of the taxing entity committee's approval of the first project area budget;
77 or
78 (B) if no taxing entity committee approval is required for the project area budget, the
79 later of:
80 (I) the date the project area plan is adopted by the community legislative body; and
81 (II) the date the agency adopts the first project area budget;
82 (iii) for a project on an inactive industrial site, a year after the date on which the
83 inactive industrial site is sold for remediation and development; or
84 (iv) for a project on an inactive airport site, a year after the later of:
85 (A) the date on which the inactive airport site is sold for remediation and development;

86 and
87 (B) the date on which the airport that had been operated on the inactive airport site
88 ceased operations; and
89 (b) for a community development project area, the agreed value specified in a
90 resolution or interlocal agreement under Subsection 17C-4-201 (2).
91 (7) "Basic levy" means the portion of a school district's tax levy constituting the
92 minimum basic levy under Section 59-2-902 .
93 (8) "Blight" or "blighted" means the condition of an area that meets the requirements of
94 Subsection 17C-2-303 (1).
95 (9) "Blight hearing" means a public hearing under Subsection 17C-2-102 (1)(a)(i)(C)
96 and Section 17C-2-302 regarding the existence or nonexistence of blight within the proposed
97 urban renewal project area.
98 (10) "Blight study" means a study to determine the existence or nonexistence of blight
99 within a survey area as provided in Section 17C-2-301 .
100 (11) "Board" means the governing body of an agency, as provided in Section
101 17C-1-203 .
102 (12) "Budget hearing" means the public hearing on a draft project area budget required
103 under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or Subsection
104 17C-3-201 (2)(d) for an economic development project area budget.
105 (13) "Closed military base" means land within a former military base that the Defense
106 Base Closure and Realignment Commission has voted to close or realign when that action has
107 been sustained by the President of the United States and Congress.
108 [(13)] (14) "Combined incremental value" means the combined total of all incremental
109 values from all urban renewal project areas, except project areas that contain some or all of a
110 military installation or inactive industrial site, within the agency's boundaries under adopted
111 project area plans and adopted project area budgets at the time that a project area budget for a
112 new urban renewal project area is being considered.
113 [(14)] (15) "Community" means a county, city, or town.

114 [(15)] (16) "Community development" means development activities within a
115 community, including the encouragement, promotion, or provision of development.
116 [(16)] (17) "Economic development" means to promote the creation or retention of
117 public or private jobs within the state through:
118 (a) planning, design, development, construction, rehabilitation, business relocation, or
119 any combination of these, within a community; and
120 (b) the provision of office, industrial, manufacturing, warehousing, distribution,
121 parking, public, or other facilities, or other improvements that benefit the state or a community.
122 [(17)] (18) "Fair share ratio" means the ratio derived by:
123 (a) for a city or town, comparing the percentage of all housing units within the city or
124 town that are publicly subsidized income targeted housing units to the percentage of all
125 housing units within the whole county that are publicly subsidized income targeted housing
126 units; or
127 (b) for the unincorporated part of a county, comparing the percentage of all housing
128 units within the unincorporated county that are publicly subsidized income targeted housing
129 units to the percentage of all housing units within the whole county that are publicly subsidized
130 income targeted housing units.
131 [(18)] (19) "Family" has the meaning as defined under regulations of the U.S.
132 Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as
133 superseded by replacement regulations.
134 [(19)] (20) "Greenfield" means land not developed beyond agricultural or forestry use.
135 [(20)] (21) "Hazardous waste" means any substance defined, regulated, or listed as a
136 hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
137 or toxic substance, or identified as hazardous to human health or the environment, under state
138 or federal law or regulation.
139 [(21)] (22) "Housing funds" means the funds allocated in an urban renewal project area
140 budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
141 [(22)] (23) (a) "Inactive airport site" means land that:

142 (i) consists of at least 100 acres;
143 (ii) is occupied by an airport:
144 (A) (I) that is no longer in operation as an airport; or
145 (II) (Aa) that is scheduled to be decommissioned; and
146 (Bb) for which a replacement commercial service airport is under construction; and
147 (B) that is owned or was formerly owned and operated by a public entity; and
148 (iii) requires remediation because:
149 (A) of the presence of hazardous waste or solid waste; or
150 (B) the site lacks sufficient public infrastructure and facilities, including public roads,
151 electric service, water system, and sewer system, needed to support development of the site.
152 (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
153 described in Subsection [(22)] (23)(a).
154 [(23)] (24) (a) "Inactive industrial site" means land that:
155 (i) consists of at least 1,000 acres;
156 (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
157 facility; and
158 (iii) requires remediation because of the presence of hazardous waste or solid waste.
159 (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
160 described in Subsection [(23)] (24)(a).
161 [(24)] (25) "Income targeted housing" means housing to be owned or occupied by a
162 family whose annual income is at or below 80% of the median annual income for the county in
163 which the housing is located.
164 [(25)] (26) "Incremental value" means a figure derived by multiplying the marginal
165 value of the property located within an urban renewal project area on which tax increment is
166 collected by a number that represents the percentage of adjusted tax increment from that project
167 area that is paid to the agency.
168 [(26)] (27) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
169 established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.

170 [(27)] (28) "Marginal value" means the difference between actual taxable value and
171 base taxable value.
172 [(28)] (29) "Military installation project area" means a project area or a portion of a
173 project area located within a federal military installation ordered closed by the federal Defense
174 Base Realignment and Closure Commission.
175 (30) (a) "Municipal building" means a building owned and operated by a municipality
176 for the purpose of providing one or more primary municipal functions, including:
177 (i) a fire station;
178 (ii) a police station;
179 (iii) a city hall; or
180 (iv) a court or other judicial building.
181 (b) "Municipal building" does not include a building the primary purpose of which is
182 cultural or recreational in nature.
183 [(29)] (31) "Plan hearing" means the public hearing on a draft project area plan
184 required under Subsection 17C-2-102 (1)(a)(vi) for an urban renewal project area plan,
185 Subsection 17C-3-102 (1)(d) for an economic development project area plan, and Subsection
186 17C-4-102 (1)(d) for a community development project area plan.
187 [(30)] (32) "Post-June 30, 1993, project area plan" means a project area plan adopted
188 on or after July 1, 1993, whether or not amended subsequent to its adoption.
189 [(31)] (33) "Pre-July 1, 1993, project area plan" means a project area plan adopted
190 before July 1, 1993, whether or not amended subsequent to its adoption.
191 [(32)] (34) "Private," with respect to real property, means:
192 (a) not owned by the United States or any agency of the federal government, a public
193 entity, or any other governmental entity; and
194 (b) not dedicated to public use.
195 [(33)] (35) "Project area" means the geographic area described in a project area plan or
196 draft project area plan where the urban renewal, economic development, or community
197 development, as the case may be, set forth in the project area plan or draft project area plan

198 takes place or is proposed to take place.
199 [(34)] (36) "Project area budget" means a multiyear projection of annual or cumulative
200 revenues and expenses and other fiscal matters pertaining to a urban renewal or economic
201 development project area that includes:
202 (a) the base taxable value of property in the project area;
203 (b) the projected tax increment expected to be generated within the project area;
204 (c) the amount of tax increment expected to be shared with other taxing entities;
205 (d) the amount of tax increment expected to be used to implement the project area plan,
206 including the estimated amount of tax increment to be used for land acquisition, public
207 improvements, infrastructure improvements, and loans, grants, or other incentives to private
208 and public entities;
209 (e) the tax increment expected to be used to cover the cost of administering the project
210 area plan;
211 (f) if the area from which tax increment is to be collected is less than the entire project
212 area:
213 (i) the tax identification numbers of the parcels from which tax increment will be
214 collected; or
215 (ii) a legal description of the portion of the project area from which tax increment will
216 be collected;
217 (g) for property that the agency owns and expects to sell, the expected total cost of the
218 property to the agency and the expected selling price; and
219 (h) (i) for an urban renewal project area, the information required under Subsection
220 17C-2-201 (1)(b); and
221 (ii) for an economic development project area, the information required under
222 Subsection 17C-3-201 (1)(b).
223 [(35)] (37) "Project area plan" means a written plan under Chapter 2, Part 1, Urban
224 Renewal Project Area Plan, Chapter 3, Part 1, Economic Development Project Area Plan, or
225 Chapter 4, Part 1, Community Development Project Area Plan, as the case may be, that, after

226 its effective date, guides and controls the urban renewal, economic development, or community
227 development activities within a project area.
228 [(36)] (38) "Property tax" includes privilege tax and each levy on an ad valorem basis
229 on tangible or intangible personal or real property.
230 [(37)] (39) "Public entity" means:
231 (a) the state, including any of its departments or agencies; or
232 (b) a political subdivision of the state, including a county, city, town, school district,
233 local district, special service district, or interlocal cooperation entity.
234 [(38)] (40) "Publicly owned infrastructure and improvements" means water, sewer,
235 storm drainage, electrical, and other similar systems and lines, streets, roads, curb, gutter,
236 sidewalk, walkways, parking facilities, public transportation facilities, and other facilities,
237 infrastructure, and improvements benefitting the public and to be publicly owned or publicly
238 maintained or operated.
239 [(39)] (41) "Record property owner" or "record owner of property" means the owner of
240 real property as shown on the records of the recorder of the county in which the property is
241 located and includes a purchaser under a real estate contract if the contract is recorded in the
242 office of the recorder of the county in which the property is located or the purchaser gives
243 written notice of the real estate contract to the agency.
244 [(40)] (42) "Superfund site":
245 (a) means an area included in the National Priorities List under the Comprehensive
246 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
247 (b) includes an area formerly included in the National Priorities List, as described in
248 Subsection [(40)] (42)(a), but removed from the list following remediation that leaves on site
249 the waste that caused the area to be included in the National Priorities List.
250 [(41)] (43) "Survey area" means an area designated by a survey area resolution for
251 study to determine whether one or more urban renewal projects within the area are feasible.
252 [(42)] (44) "Survey area resolution" means a resolution adopted by the agency board
253 under Subsection 17C-2-101 (1)(a) designating a survey area.

254 [(43)] (45) "Taxable value" means the value of property as shown on the last equalized
255 assessment roll as certified by the county assessor.
256 [(44)] (46) (a) "Tax increment" means, except as provided in Subsection [(44)] (46)(b),
257 the difference between:
258 (i) the amount of property tax revenues generated each tax year by all taxing entities
259 from the area within a project area designated in the project area plan as the area from which
260 tax increment is to be collected, using the current assessed value of the property; and
261 (ii) the amount of property tax revenues that would be generated from that same area
262 using the base taxable value of the property.
263 (b) "Tax increment" does not include taxes levied and collected under Section
264 59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:
265 (i) the project area plan was adopted before May 4, 1993, whether or not the project
266 area plan was subsequently amended; and
267 (ii) the taxes were pledged to support bond indebtedness or other contractual
268 obligations of the agency.
269 [(45)] (47) "Taxing entity" means a public entity that levies a tax on a parcel or parcels
270 of property located within a community.
271 [(46)] (48) "Taxing entity committee" means a committee representing the interests of
272 taxing entities, created as provided in Section 17C-1-402 .
273 [(47)] (49) "Unincorporated" means not within a city or town.
274 [(48)] (50) (a) "Urban renewal" means the development activities under a project area
275 plan within an urban renewal project area, including:
276 (i) planning, design, development, demolition, clearance, construction, rehabilitation,
277 environmental remediation, or any combination of these, of part or all of a project area;
278 (ii) the provision of residential, commercial, industrial, public, or other structures or
279 spaces, including recreational and other facilities incidental or appurtenant to them;
280 (iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
281 any combination of these, existing structures in a project area;

282 (iv) providing open space, including streets and other public grounds and space around
283 buildings;
284 (v) providing public or private buildings, infrastructure, structures, and improvements;
285 and
286 (vi) providing improvements of public or private recreation areas and other public
287 grounds.
288 (b) "Urban renewal" means "redevelopment," as defined under the law in effect before
289 May 1, 2006, if the context requires.
290 Section 2. Section 17C-1-204 is amended to read:
291 17C-1-204. Urban renewal, economic development, and community development
292 by an adjoining agency -- Requirements.
293 (1) An agency or community may, by resolution of its board or legislative body,
294 respectively, authorize an agency to conduct urban renewal, economic development, or
295 community development activities in a project area that includes an area within the authorizing
296 agency's boundaries or within the boundaries of the authorizing community if the project area
297 or community is contiguous to the boundaries of the other agency.
298 (2) If an agency board or community legislative body adopts a resolution under
299 Subsection (1) authorizing another agency to undertake urban renewal, economic development,
300 or community development activities in the authorizing agency's project area or within the
301 boundaries of the authorizing community:
302 (a) the other agency may act in all respects as if the project area were within its own
303 boundaries;
304 (b) the board of the other agency has all the rights, powers, and privileges with respect
305 to the project area as if it were within its own boundaries; and
306 (c) the other agency may be paid tax increment funds to the same extent as if the
307 project area were within its own boundaries.
308 (3) Each project area plan approved by the other agency for the project area that is the
309 subject of a resolution under Subsection (1) shall be adopted by ordinance of the legislative

310 body of the community in which the project area is located.
311 (4) (a) As used in this Subsection (4):
312 (i) "County agency" means an agency that was created by a county.
313 (ii) "Industrial property" means private real property:
314 (A) over half of which is located within the boundary of a town, as defined in Section
315 10-1-104 ; and
316 (B) comprises some or all of an inactive industrial site.
317 (iii) "Perimeter portion" means the portion of an inactive industrial site that is:
318 (A) part of the inactive industrial site because it lies within the perimeter described in
319 Subsection 17C-1-102 [(23)](25)(b); and
320 (B) located within the boundary of a city, as defined in Section 10-1-104 .
321 (b) (i) Subject to Subsection (4)(b)(ii), a county agency may undertake urban renewal,
322 economic development, or community development on industrial property if the record
323 property owner of the industrial property submits a written request to the county agency to do
324 so.
325 (ii) A county agency may not include a perimeter portion within a project area without
326 the approval of the city in which the perimeter portion is located.
327 (c) If a county agency undertakes urban renewal, economic development, or
328 community development on industrial property:
329 (i) the county agency may act in all respects as if the project area that includes the
330 industrial property were within the county agency's boundary;
331 (ii) the board of the county agency has each right, power, and privilege with respect to
332 the project area as if the project area were within the county agency's boundary; and
333 (iii) the county agency may be paid tax increment to the same extent as if the project
334 area were within the county agency's boundary.
335 (d) A project area plan for a project on industrial property that is approved by the
336 county agency shall be adopted by ordinance of the legislative body of the county in which the
337 project area is located.

338 Section 3. Section 17C-1-401 is amended to read:
339 17C-1-401. Agency receipt and use of tax increment and sales tax -- Distribution
340 of tax increment and sales tax.
341 (1) An agency may receive and use tax increment and sales tax, as provided in this
342 part.
343 (2) (a) The applicable length of time or number of years for which an agency is to be
344 paid tax increment or sales tax under this part shall be measured:
345 (i) for a pre-July 1, 1993, project area plan, from the first tax year regarding which the
346 agency accepts tax increment from the project area;
347 (ii) for a post-June 30, 1993, urban renewal or economic development project area
348 plan, from the first tax year for which the agency receives tax increment under the project area
349 budget; or
350 (iii) for a community development project area plan, as indicated in the resolution or
351 interlocal agreement of a taxing entity that establishes the agency's right to receive tax
352 increment or sales tax.
353 (b) Unless otherwise provided in a project area budget that is approved by a taxing
354 entity committee, or in an interlocal agreement or resolution adopted by a taxing entity, tax
355 increment may not be paid to an agency for a tax year prior to the tax year following:
356 (i) for an urban renewal or economic development project area plan, the effective date
357 of the project area plan; and
358 (ii) for a community development project area plan, the effective date of the interlocal
359 agreement that establishes the agency's right to receive tax increment.
360 (3) With respect to a community development project area plan:
361 (a) a taxing entity or public entity may, by resolution or through interlocal agreement,
362 authorize an agency to be paid any or all of that taxing entity or public entity's tax increment or
363 sales tax for any period of time; and
364 (b) the resolution or interlocal agreement authorizing the agency to be paid tax
365 increment or sales tax shall specify:

366 (i) the base taxable value of the project area; and
367 (ii) the method of calculating the amount of tax increment or sales tax to be paid to the
368 agency.
369 (4) With the written consent of a taxing entity, an agency may be paid tax increment,
370 from that taxing entity's tax revenues only, in a higher percentage or for a longer period of time,
371 or both, than otherwise authorized under this title.
372 [(5) Each county that collects property tax on property within a project area shall pay
373 and distribute to the agency the tax increment that the agency is entitled to collect under this
374 title, in the manner and at the time provided in Section 59-2-1365 .]
375 (5) (a) Subject to Section 17C-1-407 , an agency is entitled to receive tax increment as
376 authorized by:
377 (i) for a pre-July 1, 1993, project area plan, Section 17C-1-403 ;
378 (ii) for a post-June 30, 1993, project area plan:
379 (A) Section 17C-1-404 under a project area budget adopted by the agency in
380 accordance with this title;
381 (B) a project area budget approved by the taxing entity committee and adopted by the
382 agency in accordance with this title; or
383 (C) Section 17C-1-406 ; or
384 (iii) a resolution or interlocal agreement entered into under Section 17C-2-207 ,
385 17C-3-206 , 17C-4-201 , or 17C-4-202 .
386 (b) A county that collects property tax on property located within a project area shall
387 pay and distribute any tax increment:
388 (i) to an agency that the agency is entitled to collect; and
389 (ii) in accordance with Section 59-2-1365 .
390 Section 4. Section 17C-1-402 is amended to read:
391 17C-1-402. Taxing entity committee.
392 (1) Each agency that adopts or proposes to adopt a post-June 30, 1993, urban renewal
393 or economic development project area plan shall, and any other agency may, cause a taxing

394 entity committee to be created.
395 (2) (a) (i) Each taxing entity committee shall be composed of:
396 (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
397 (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
398 appointed by resolution of the legislative body of the county in which the agency is located; or
399 (II) in a county of the first class, one representative appointed by the county executive
400 and one representative appointed by the legislative body of the county in which the agency is
401 located;
402 (C) if the agency was created by a city or town, two representatives appointed by
403 resolution of the legislative body of that city or town;
404 (D) one representative appointed by the State Board of Education; and
405 (E) one representative selected by majority vote of the legislative bodies or governing
406 boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
407 represent the interests of those taxing entities on the taxing entity committee.
408 (ii) (A) If the agency boundaries include only one school district, that school district
409 shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
410 (B) If the agency boundaries include more than one school district, those school
411 districts shall jointly appoint the two school district representatives under Subsection
412 (2)(a)(i)(A).
413 (b) (i) Each taxing entity committee representative under Subsection (2)(a) shall be
414 appointed within 30 days after the agency provides notice of the creation of the taxing entity
415 committee.
416 (ii) If a representative is not appointed within the time required under Subsection
417 (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
418 place of the missing representative until that representative is appointed.
419 (c) (i) A taxing entity committee representative may be appointed for a set term or
420 period of time, as determined by the appointing authority under Subsection (2)(a)(i).
421 (ii) Each taxing entity committee representative shall serve until a successor is

422 appointed and qualified.
423 (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
424 an initial appointment or an appointment to replace an already serving representative, the
425 appointing authority shall:
426 (A) notify the agency in writing of the name and address of the newly appointed
427 representative; and
428 (B) provide the agency a copy of the resolution making the appointment or, if the
429 appointment is not made by resolution, other evidence of the appointment.
430 (ii) Each appointing authority of a taxing entity committee representative under
431 Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
432 representative appointed by that appointing authority.
433 (3) At its first meeting, a taxing entity committee shall adopt an organizing resolution:
434 (a) designating a chair and a secretary of the committee; and
435 (b) if the committee considers it appropriate, governing the use of electronic meetings
436 under Section 52-4-207 .
437 (4) (a) A taxing entity committee represents all taxing entities regarding:
438 (i) an urban renewal [or] project area; or
439 (ii) an economic development project area [and may:].
440 (b) A taxing entity committee may:
441 [(a)] (i) cast votes that will be binding on all taxing entities;
442 [(b)] (ii) negotiate with the agency concerning a draft project area plan;
443 [(c)] (iii) approve or disapprove:
444 (A) an urban renewal project area budget as provided in Section 17C-2-204 ; or
445 (B) an economic development project area budget as provided in Section 17C-3-203 ;
446 [(d)] (iv) approve or disapprove amendments to a project area budget as provided in:
447 (A) Section 17C-2-206 for an urban renewal project area budget [and]; or
448 (B) Section 17C-3-205 for an economic development project area budget;
449 [(e)] (v) approve exceptions to the limits on the value and size of a project area

450 imposed under this title;
451 [(f)] (vi) approve exceptions to the percentage of tax increment and the period of time
452 that tax increment is paid to the agency as provided in this title;
453 [(g)] (vii) approve the use of tax increment for publicly owned infrastructure and
454 improvements outside of an urban renewal or economic development project area that the
455 agency and community legislative body determine to be of benefit to the urban renewal or
456 economic development project area, as provided in Subsection 17C-1-409 (1)(a)(iii)(D);
457 [(h)] (viii) waive the restrictions imposed by Subsection 17C-2-202 (1); and
458 [(i)] (ix) give other taxing entity committee approval or consent required or allowed
459 under this title.
460 (5) A quorum of a taxing entity committee consists of:
461 (a) if the [urban renewal or economic development] project area is located within a city
462 or town, five members; or
463 (b) if the [urban renewal or economic development] project area is not located within a
464 city or town, four members.
465 (6) Taxing entity committee approval, consent, or other action requires:
466 (a) the affirmative vote of a majority of all members present at a taxing entity
467 committee meeting:
468 (i) at which a quorum is present; and
469 (ii) considering an action relating to a project area budget for, or approval of a finding
470 of blight within, a project area or proposed project area that contains:
471 (A) an inactive industrial site;
472 (B) an inactive airport site; or
473 (C) a closed military base; or
474 (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
475 two-thirds of all members present at a taxing entity committee meeting at which a quorum is
476 present.
477 (7) (a) An agency may call a meeting of the taxing entity committee by sending written

478 notice to the members of the taxing entity committee at least 10 days before the date of the
479 meeting.
480 (b) Each notice under Subsection (7)(a) shall be accompanied by:
481 (i) the proposed agenda for the taxing entity committee meeting; and
482 (ii) if not previously provided and if they exist and are to be considered at the meeting:
483 (A) the [urban renewal or economic development] project area plan or proposed plan;
484 (B) the [urban renewal or economic development] project area budget or proposed
485 budget;
486 (C) the analysis required under Subsection 17C-2-103 (2) or 17C-3-103 (2);
487 (D) the blight study;
488 (E) the agency's resolution making a finding of blight under Subsection
489 17C-2-102 (1)(a) (ii)(B); and
490 (F) other documents to be considered by the taxing entity committee at the meeting.
491 (c) (i) An agency may not schedule a taxing entity committee meeting to meet on a day
492 on which the Legislature is in session.
493 (ii) Notwithstanding Subsection (7)(c)(i), the taxing entity committee may, by
494 unanimous consent, waive the scheduling restriction described in Subsection (7)(c)(i).
495 (8) (a) A taxing entity committee may not vote on a proposed [urban renewal or
496 economic development] project area budget or proposed amendment to [an urban renewal or
497 economic development] a project area budget at the first meeting at which the proposed budget
498 or amendment is considered unless all members of the taxing entity committee present at the
499 meeting consent.
500 (b) A second taxing entity committee meeting to consider [an urban renewal or
501 economic development] a project area budget or a proposed amendment to [an urban renewal
502 or economic development] a project area budget may not be held within 14 days after the first
503 meeting unless all members of the taxing entity committee present at the first meeting consent.
504 (9) [Each] (a) Except as provided in Subsection (9)(b), each taxing entity committee
505 shall meet at least annually during the time that the agency receives tax increment under an

506 urban renewal or economic development project area budget in order to review the status of the
507 project area.
508 (b) A taxing entity committee is not required under Subsection (9)(a) to meet if the
509 agency submits on or before November 1 of each year to the county auditor, the State Tax
510 Commission, the State Board of Education, and each taxing entity that levies a tax on property
511 from which the agency collects tax increment, a report containing the following:
512 (i) an assessment of growth of incremental values for each active project area,
513 including:
514 (A) the base year assessed value;
515 (B) the prior year's assessed value;
516 (C) the estimated current year assessed value for the project area; and
517 (D) a narrative description of the relative growth in assessed value within the project
518 area;
519 (ii) a description of the amount of tax increment received by the agency and passed
520 through to other taxing entities from each active project area, including:
521 (A) a comparison of the original forecasted amount of tax increment to actual receipts;
522 (B) a narrative discussion regarding the use of tax increment; and
523 (C) a description of the benefits derived by the taxing entities;
524 (iii) a description of activity within each active project area, including:
525 (A) a narrative of any significant development activity, including infrastructure
526 development, site development, and vertical construction within the project area; and
527 (B) a narrative discussion regarding the status of any agreements for development
528 within the project area;
529 (iv) a revised multi-year tax increment budget related to each active project area,
530 including:
531 (A) the prior year's tax increment receipts;
532 (B) the base year value and adjusted base year value, as applicable;
533 (C) the applicable tax rates within the project area; and

534 (D) a schedule of private and public investment within the project area; and
535 (v) any other project highlights included by the agency.
536 (10) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
537 Public Meetings Act.
538 (11) Each time a school district representative or a representative of the State Board of
539 Education votes as a member of a taxing entity committee to allow an agency to be paid tax
540 increment or to increase the amount or length of time that an agency may be paid tax
541 increment, that representative shall, within 45 days after the vote, provide to the
542 representative's respective school board an explanation in writing of the representative's vote
543 and the reasons for the vote.
544 (12) (a) The auditor of each county in which the agency is located shall provide a
545 written report to the taxing entity committee stating, with respect to property within each urban
546 renewal and economic development project area:
547 (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408 ;
548 and
549 (ii) the assessed value.
550 (b) With respect to the information required under Subsection (12)(a), the auditor shall
551 provide:
552 (i) actual amounts for each year from the adoption of the [urban renewal and economic
553 development] project area plan to the time of the report; and
554 (ii) estimated amounts for each year beginning the year after the time of the report and
555 ending the time that the agency expects no longer to be paid tax increment from property
556 within the urban renewal and economic development project area.
557 (c) The auditor of the county in which the agency is located shall provide a report
558 under this Subsection (12):
559 (i) at least annually; and
560 (ii) upon request of the taxing entity committee, before a taxing entity committee
561 meeting at which the committee will consider whether to allow the agency to be paid tax

562 increment or to increase the amount of tax increment that the agency may be paid or the length
563 of time that the agency may be paid tax increment.
564 (13) This section does not apply to a community development project area plan.
565 (14) A taxing entity committee resolution, whether adopted before, on, or after May 10,
566 2011, approving a blight finding, approving a project area budget, or approving an amendment
567 to a project area budget:
568 (a) is final; and
569 (b) is not subject to repeal, amendment, or reconsideration unless the agency first
570 consents by resolution to the proposed repeal, amendment, or reconsideration.
571 Section 5. Section 17C-1-409 is amended to read:
572 17C-1-409. Allowable uses of tax increment and sales tax.
573 (1) (a) An agency may use tax increment and sales tax proceeds received from a taxing
574 entity:
575 (i) for any of the purposes for which the use of tax increment is authorized under this
576 title;
577 (ii) for administrative, overhead, legal, and other operating expenses of the agency,
578 including consultant fees and expenses under Subsection 17C-2-102 (1)(b)(ii)(B) or funding for
579 a business resource center;
580 (iii) to pay for, including financing or refinancing, all or part of:
581 (A) urban renewal activities in the project area from which the tax increment funds are
582 collected, including environmental remediation activities occurring before or after adoption of
583 the project area plan;
584 (B) economic development or community development activities, including
585 environmental remediation activities occurring before or after adoption of the project area plan,
586 in the project area from which the tax increment funds are collected;
587 (C) housing expenditures, projects, or programs as provided in Section 17C-1-411 or
588 17C-1-412 ;
589 (D) subject to Subsections (1)(c) and (6), the value of the land for and the cost of the

590 installation and construction of any publicly owned building, facility, structure, landscaping, or
591 other improvement within the project area from which the tax increment funds were collected;
592 and
593 (E) subject to Subsection (1)(d), the cost of the installation of publicly owned
594 infrastructure and improvements outside the project area from which the tax increment funds
595 were collected if the agency board and the community legislative body determine by resolution
596 that the publicly owned infrastructure and improvements are of benefit to the project area; or
597 (iv) in an urban renewal project area that includes some or all of an inactive industrial
598 site and subject to Subsection (1)(f), to reimburse the Department of Transportation created
599 under Section 72-1-201 , or a public transit district created under Title 17B, Chapter 2a, Part 8,
600 Public Transit District Act, for the cost of:
601 (A) construction of a public road, bridge, or overpass;
602 (B) relocation of a railroad track within the urban renewal project area; or
603 (C) relocation of a railroad facility within the urban renewal project area.
604 (b) The determination of the agency board and the community legislative body under
605 Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
606 (c) An agency may not use tax increment or sales tax proceeds received from a taxing
607 entity for the purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal or economic
608 development project area plan without the consent of the community legislative body.
609 (d) An agency may not use tax increment or sales tax proceeds received from a taxing
610 entity for the purposes stated in Subsection (1)(a)(iii)(E) under an urban renewal or economic
611 development project area plan without the consent of the community legislative body and the
612 taxing entity committee.
613 (e) (i) Subject to Subsection (1)(e)(ii), an agency may loan tax increment or sales tax
614 proceeds, or a combination of tax increment and sales tax proceeds, from a project area fund to
615 another project area fund if:
616 (A) the agency's board approves; and
617 (B) the legislative body of each community that created the agency approves.

618 (ii) An agency may not loan tax increment or sales tax proceeds, or a combination of
619 tax increment and sales tax proceeds, under Subsection (1)(e)(i) unless the projections for the
620 future tax increment or sales tax proceeds of the borrowing project area are sufficient to repay
621 the loan amount prior to when the tax increment or sales tax proceeds are intended for use
622 under the loaning project area's plan.
623 (iii) If a borrowing project area's funds are not sufficient to repay a loan made under
624 Subsection (1)(e)(i) prior to when the tax increment or sales tax proceeds are intended for use
625 under the loaning project area's plan, the community that created the agency shall repay the
626 loan to the loaning project area's fund prior to when the tax increment or sales tax proceeds are
627 intended for use under the loaning project area's plan, unless the taxing entity committee adopts
628 a resolution to waive this requirement.
629 (f) Before an agency may pay any tax increment or sales tax revenue under Subsection
630 (1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of the
631 reimbursement with:
632 (i) the Department of Transportation; or
633 (ii) a public transit district.
634 (2) Sales tax proceeds that an agency receives from another public entity are not
635 subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use
636 Tax Incentive Payments Act.
637 (3) An agency may use sales tax proceeds it receives under a resolution or interlocal
638 agreement under Section 17C-4-201 for the uses authorized in the resolution or interlocal
639 agreement.
640 (4) (a) An agency may contract with the community that created the agency or another
641 public entity to use tax increment to reimburse the cost of items authorized by this title to be
642 paid by the agency that have been or will be paid by the community or other public entity.
643 (b) If land has been or will be acquired or the cost of an improvement has been or will
644 be paid by another public entity and the land or improvement has been or will be leased to the
645 community, an agency may contract with and make reimbursement from tax increment funds to

646 the community.
647 (5) An agency created by a city of the first or second class may use tax increment from
648 one project area in another project area to pay all or part of the value of the land for and the
649 cost of the installation and construction of a publicly or privately owned convention center or
650 sports complex or any building, facility, structure, or other improvement related to the
651 convention center or sports complex, including parking and infrastructure improvements, if:
652 (a) construction of the convention center or sports complex or related building, facility,
653 structure, or other improvement is commenced on or before [June 30, 2002] December 31,
654 2012; and
655 (b) the tax increment is pledged to pay all or part of the value of the land for and the
656 cost of the installation and construction of the convention center or sports complex or related
657 building, facility, structure, or other improvement.
658 (6) Notwithstanding any other provision of this title, an agency may not use tax
659 increment to construct municipal buildings[, courts or other judicial buildings, or fire stations]
660 unless the taxing entity committee adopts a resolution to waive this requirement.
661 (7) Notwithstanding any other provision of this title, an agency may not use tax
662 increment under an urban renewal or economic development project area plan, to pay any of
663 the cost of the land, infrastructure, or construction of a stadium or arena constructed after
664 March 1, 2005, unless the tax increment has been pledged for that purpose before February 15,
665 2005.
666 (8) (a) An agency may not use tax increment to pay the debt service of or any other
667 amount related to a bond issued or other obligation incurred if the bond was issued or the
668 obligation was incurred:
669 (i) by an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation
670 Act;
671 (ii) on or after March 30, 2009; and
672 (iii) to finance a telecommunication facility.
673 (b) Subsection (8)(a) may not be construed to prohibit the refinancing, restatement, or

674 refunding of a bond issued before March 30, 2009.
675 Section 6. Section 17C-1-603 is amended to read:
676 17C-1-603. Agency report.
677 (1) (a) [On] Unless an agency submits a report to the county auditor, the State Tax
678 Commission, the State Board of Education, and each taxing entity that levies a tax on property
679 from which the agency collects tax increment as provided under Subsection 17C-1-402 (9)(b),
680 on or before November 1 of each year, each agency shall prepare and file a report with the
681 county auditor, the State Tax Commission, the State Board of Education, and each taxing entity
682 that levies a tax on property from which the agency collects tax increment.
683 (b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
684 taxing entity is met if the agency files a copy with the State Tax Commission and the state
685 auditor.
686 (2) Each report under Subsection (1) shall contain:
687 (a) an estimate of the tax increment to be paid to the agency for the calendar year
688 ending December 31; [and]
689 (b) an estimate of the tax increment to be paid to the agency for the calendar year
690 beginning the next January 1[.];
691 (c) a narrative description of each active project area within the agency's boundaries;
692 (d) a narrative description of any significant activity related to each active project area
693 that occurred during the immediately preceding fiscal year;
694 (e) a summary description of the overall project timeline for each active project area;
695 (f) any other information specifically requested by the taxing entity committee or
696 required by the project area plan or budget; and
697 (g) any other information included by the agency.
698 (3) A report prepared in accordance with this section:
699 (a) is for informational purposes; and
700 (b) does not alter the amount of tax increment that an agency is entitled to collect from
701 a project area.

702 Section 7. Section 17C-2-206 is amended to read:
703 17C-2-206. Amending an urban renewal project area budget.
704 (1) An agency may by resolution amend an urban renewal project area budget as
705 provided in this section.
706 (2) To amend an adopted urban renewal project area budget, the agency shall:
707 (a) advertise and hold one public hearing on the proposed amendment as provided in
708 Subsection (3);
709 (b) if approval of the taxing entity committee was required for adoption of the original
710 project area budget, obtain the approval of the taxing entity committee [if] to the same extent
711 that the agency was required [under Section 17C-2-204 ] to obtain the consent of the taxing
712 entity committee for the project area budget as originally adopted;
713 (c) if approval of the taxing entity committee is required under Subsection (2)(b),
714 obtain a written certification, signed by an attorney licensed to practice law in this state, stating
715 that the taxing entity committee followed the appropriate procedures to approve the project
716 area budget; and
717 (d) adopt a resolution amending the project area budget.
718 (3) The public hearing required under Subsection (2)(a) shall be conducted according
719 to the procedures and requirements of Subsections 17C-2-201 (2)(c) and (d), except that if the
720 amended project area budget proposes that the agency be paid a greater proportion of tax
721 increment from a project area than was to be paid under the previous project area budget, the
722 notice shall state the percentage paid under the previous project area budget and the percentage
723 proposed under the amended project area budget.
724 (4) If a proposed amendment is not adopted, the agency shall continue to operate under
725 the previously adopted project area budget without the proposed amendment.
726 (5) (a) A person may contest the agency's adoption of a budget amendment within 30
727 days after the day on which the agency adopts the amendment.
728 (b) A person who fails to contest a budget amendment under Subsection (5)(a):
729 (i) forfeits any claim against an agency's adoption of the amendment; and

730 (ii) may not contest:
731 (A) a payment to the agency under the budget amendment; or
732 (B) an agency's use of a tax increment under the budget amendment.
733 Section 8. Section 17C-2-207 is enacted to read:
734 17C-2-207. Extending collection of tax increment in an urban renewal project
735 area budget.
736 (1) An amendment or extension approved by a taxing entity or taxing entity committee
737 before May 10, 2011, is not subject to this section.
738 (2) (a) An agency's collection of tax increment under an adopted urban renewal project
739 area budget may be extended by:
740 (i) following the project area budget amendment procedures outlined in Section
741 17C-2-206 ; or
742 (ii) following the procedures outlined in this section.
743 (b) The base taxable value for an urban renewal project area budget may not be altered
744 as a result of an extension under this section unless otherwise expressly provided for in an
745 interlocal agreement adopted in accordance with Subsection (3)(a).
746 (3) To extend under this section the agency's collection of tax increment from a taxing
747 entity under a previously approved project area budget, the agency shall:
748 (a) obtain the approval of the taxing entity through an interlocal agreement;
749 (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
750 17C-2-201 (2)(d) in the same manner as required for a draft project area budget; and
751 (ii) provide notice of the hearing:
752 (A) as required by Part 5, Urban Renewal Notice Requirements; and
753 (B) including the proposed period of extension of the project area budget; and
754 (c) after obtaining the approval of the taxing entity in accordance with Subsection
755 (3)(a), at or after the public hearing, adopt a resolution approving the extension.
756 (4) After the expiration of a project area budget, an agency may continue to receive tax
757 increment from those taxing entities that have agreed to an extension through an interlocal

758 agreement in accordance with Subsection (3)(a).
759 (5) (a) A person may contest the agency's adoption of a budget extension within 30
760 days after the day on which the agency adopts the resolution providing for the extension.
761 (b) A person who fails to contest a budget extension under Subsection (5)(a):
762 (i) shall forfeit any claim against the agency's adoption of the extension; and
763 (ii) may not contest:
764 (A) a payment to the agency under the budget, as extended; or
765 (B) an agency's use of tax increment under the budget, as extended.
766 Section 9. Section 17C-2-303 is amended to read:
767 17C-2-303. Conditions on board determination of blight -- Conditions of blight
768 caused by the developer.
769 (1) An agency board may not make a finding of blight in a resolution under Subsection
770 17C-2-102 (1)(a)(ii)(B) unless the board finds that:
771 (a) (i) the proposed project area consists predominantly of nongreenfield parcels;
772 (ii) the proposed project area is currently zoned for urban purposes and generally
773 served by utilities;
774 (iii) at least 50% of the parcels within the proposed project area contain nonagricultural
775 or nonaccessory buildings or improvements used or intended for residential, commercial,
776 industrial, or other urban purposes, or any combination of those uses;
777 (iv) the present condition or use of the proposed project area substantially impairs the
778 sound growth of the municipality, retards the provision of housing accommodations, or
779 constitutes an economic liability or is detrimental to the public health, safety, or welfare, as
780 shown by the existence within the proposed project area of at least four of the following
781 factors:
782 (A) one of the following, although sometimes interspersed with well maintained
783 buildings and infrastructure:
784 (I) substantial physical dilapidation, deterioration, or defective construction of
785 buildings or infrastructure; or

786 (II) significant noncompliance with current building code, safety code, health code, or
787 fire code requirements or local ordinances;
788 (B) unsanitary or unsafe conditions in the proposed project area that threaten the
789 health, safety, or welfare of the community;
790 (C) environmental hazards, as defined in state or federal law, that require remediation
791 as a condition for current or future use and development;
792 (D) excessive vacancy, abandoned buildings, or vacant lots within an area zoned for
793 urban use and served by utilities;
794 (E) abandoned or outdated facilities that pose a threat to public health, safety, or
795 welfare;
796 (F) criminal activity in the project area, higher than that of comparable nonblighted
797 areas in the municipality or county; and
798 (G) defective or unusual conditions of title rendering the title nonmarketable; and
799 (v) (A) at least 50% of the privately-owned parcels within the proposed project area are
800 affected by at least one of the factors, but not necessarily the same factor, listed in Subsection
801 (1)(a)(iv); and
802 (B) the affected parcels comprise at least 66% of the privately-owned acreage of the
803 proposed project area; or
804 (b) the proposed project area includes some or all of a superfund site, inactive
805 industrial site, or inactive airport site.
806 (2) No single parcel comprising 10% or more of the acreage of the proposed project
807 area may be counted as satisfying Subsection (1)(a)(iii) or (iv) unless at least 50% of the area of
808 that parcel is occupied by buildings or improvements.
809 (3) (a) For purposes of Subsection (1), if a developer involved in the urban renewal
810 project has caused a condition listed in Subsection (1)(a)(iv) within the proposed project area,
811 that condition may not be used in the determination of blight.
812 (b) Subsection (3)(a) does not apply to a condition that was caused by an owner or
813 tenant who becomes a developer.

814 Section 10. Section 17C-2-701 is enacted to read:
815 Part 7. Urban Renewal Project Area Property
816 17C-2-701. Railroad crossings within urban renewal project area.
817 (1) Notwithstanding Section 54-4-15 or other provision of law, and except as provided
818 in Subsection (2), the Department of Transportation created in Section 72-1-201 may not
819 prohibit or close, temporarily or permanently, a public road or highway crossing by a railroad
820 or street railroad that is located within the boundaries of an urban renewal project area that
821 includes some or all of an inactive industrial site.
822 (2) The Department of Transportation may prohibit or close a crossing described in
823 Subsection (1) if the department obtains the advance written consent of the agency that created
824 the urban renewal project area where the crossing is located.
825 Section 11. Section 17C-3-205 is amended to read:
826 17C-3-205. Amending an economic development project area budget.
827 (1) An agency may by resolution amend an economic development project area budget
828 as provided in this section.
829 (2) To amend an adopted economic development project area budget, the agency shall:
830 (a) advertise and hold one public hearing on the proposed amendment as provided in
831 Subsection (3);
832 (b) if approval of the taxing entity committee was required for adoption of the original
833 project area budget, obtain the approval of the taxing entity committee [if] to the same extent
834 that the agency was required [under Section 17C-3-203 ] to obtain the consent of the taxing
835 entity committee for the project area budget as originally adopted;
836 (c) if approval of the taxing entity committee is required under Subsection (2)(b),
837 obtain a written certification, signed by an attorney licensed to practice law in this state, stating
838 that the taxing entity committee followed the appropriate procedures to approve the project
839 area budget; and
840 (d) adopt a resolution amending the project area budget.
841 (3) The public hearing required under Subsection (2)(a) shall be conducted according

842 to the procedures and requirements of Section 17C-3-201 , except that if the amended project
843 area budget proposes that the agency be paid a greater proportion of tax increment from a
844 project area than was to be paid under the previous project area budget, the notice shall state
845 the percentage paid under the previous project area budget and the percentage proposed under
846 the amended project area budget.
847 (4) If a proposed amendment is not adopted, the agency shall continue to operate under
848 the previously adopted economic development project area budget without the proposed
849 amendment.
850 (5) (a) A person may contest the agency's adoption of a budget amendment within 30
851 days after the day on which the agency adopts the amendment.
852 (b) A person who fails to contest a budget amendment under Subsection (5)(a):
853 (i) forfeits any claim against an agency's adoption of the amendment; and
854 (ii) may not contest:
855 (A) a payment to the agency under the budget amendment; or
856 (B) an agency's use of a tax increment under a budget amendment.
857 Section 12. Section 17C-3-206 is enacted to read:
858 17C-3-206. Extending collection of tax increment under an economic development
859 project area budget.
860 (1) An amendment or extension approved by a taxing entity or taxing entity committee
861 before May 10, 2011, is not subject to this section.
862 (2) (a) An agency's collection of tax increment under an adopted economic
863 development project area budget may be extended by:
864 (i) following the project area budget amendment procedures outlined in Section
865 17C-3-205 ; or
866 (ii) following the procedures outlined in this section.
867 (b) The base taxable value for an urban renewal project area budget may not be altered
868 as a result of an extension under this section unless otherwise expressly provided for in an
869 interlocal agreement adopted in accordance with Subsection (3)(a).

870 (3) To extend under this section the agency's collection of tax increment from a taxing
871 entity under a previously approved project area budget, the agency shall:
872 (a) obtain the approval of the taxing entity through an interlocal agreement;
873 (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
874 17C-2-201 (2)(d) in the same manner as required for a draft project area budget; and
875 (ii) provide notice of the hearing:
876 (A) as required by Part 4, Economic Development Notice Requirements; and
877 (B) including the proposed period of extension of the project area budget; and
878 (c) after obtaining the approval of the taxing entity in accordance with Subsection
879 (3)(a), at or after the public hearing, adopt a resolution approving the extension.
880 (4) After the expiration of a project area budget, an agency may continue to receive tax
881 increment from those taxing entities that have agreed to an extension through an interlocal
882 agreement in accordance with Subsection (3)(a).
883 (5) (a) A person may contest the agency's adoption of a budget extension within 30
884 days after the day on which the agency adopts the resolution providing for the extension.
885 (b) A person who fails to contest a budget extension under Subsection (5)(a):
886 (i) shall forfeit any claim against the agency's adoption of the extension; and
887 (ii) may not contest:
888 (A) a payment to the agency under the budget, as extended; or
889 (B) an agency's use of tax increment under the budget, as extended.
890 Section 13. Section 17C-4-204 is amended to read:
891 17C-4-204. Adoption of a budget for a community development project area plan
892 -- Amendment.
893 (1) An agency may prepare and, by resolution adopted at a regular or special meeting
894 of the agency board, adopt a budget setting forth:
895 (a) the anticipated costs, including administrative costs, of implementing the
896 community development project area plan; and
897 (b) the tax increment, sales tax, and other revenue the agency anticipates receiving to

898 fund the project.
899 (2) An agency may, by resolution adopted at a regular or special meeting of the agency
900 board, amend a budget adopted under Subsection (1).
901 (3) Each resolution to adopt or amend a budget under this section shall appear as an
902 item on the agenda for the regular or special agency board meeting at which the resolution is
903 adopted[. No other notice is required.] without additional required notice.
904 (4) An agency is not required to obtain approval of the taxing entity committee for a
905 community development project area budget.