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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.


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