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S.B. 165 Enrolled

             1     

REDEVELOPMENT AGENCY AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Todd Weiler

             5     
House Sponsor: Brad R. Wilson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to community development and renewal agencies.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    amends language related to a notice of an impending boundary action required when
             14      an agency is created;
             15          .    amends language related to a public entity's authority;
             16          .    amends tax increment and sales tax provisions;
             17          .    amends language related to the duties of a taxing entity committee;
             18          .    amends the definition of "local public procurement unit"; and
             19          .    makes technical corrections.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          17C-1-102, as last amended by Laws of Utah 2011, Chapter 43
             27          17C-1-201, as last amended by Laws of Utah 2009, Chapter 350
             28          17C-1-207, as last amended by Laws of Utah 2010, Chapter 279
             29          17C-1-401, as last amended by Laws of Utah 2011, Chapter 43


             30          17C-1-402, as last amended by Laws of Utah 2011, Chapter 43
             31          17C-2-601, as enacted by Laws of Utah 2007, Chapter 379
             32          63G-6-103, as last amended by Laws of Utah 2011, Chapter 376
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 17C-1-102 is amended to read:
             36           17C-1-102. Definitions.
             37          As used in this title:
             38          (1) "Adjusted tax increment" means:
             39          (a) for tax increment under a pre-July 1, 1993, project area plan, tax increment under
             40      Section 17C-1-403 , excluding tax increment under Subsection 17C-1-403 (3); and
             41          (b) for tax increment under a post-June 30, 1993, project area plan, tax increment under
             42      Section 17C-1-404 , excluding tax increment under Section 17C-1-406 .
             43          (2) "Affordable housing" means housing to be owned or occupied by persons and
             44      families of low or moderate income, as determined by resolution of the agency.
             45          (3) "Agency" or "community development and renewal agency" means a separate body
             46      corporate and politic, created under Section 17C-1-201 or as a redevelopment agency under
             47      previous law, that is a political subdivision of the state, that is created to undertake or promote
             48      urban renewal, economic development, or community development, or any combination of
             49      them, as provided in this title, and whose geographic boundaries are coterminous with:
             50          (a) for an agency created by a county, the unincorporated area of the county; and
             51          (b) for an agency created by a city or town, the boundaries of the city or town.
             52          (4) "Annual income" has the meaning as defined under regulations of the U.S.
             53      Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
             54      superseded by replacement regulations.
             55          (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             56          (6) "Base taxable value" means:
             57          (a) unless otherwise designated by the taxing entity committee in accordance with


             58      Subsection 17C-1-402 (4)(b)(ix), for an urban renewal or economic development project area,
             59      the taxable value of the property within a project area from which tax increment will be
             60      collected, as shown upon the assessment roll last equalized before:
             61          (i) for a pre-July 1, 1993, project area plan, the effective date of the project area plan;
             62          (ii) for a post-June 30, 1993, project area plan:
             63          (A) the date of the taxing entity committee's approval of the first project area budget;
             64      or
             65          (B) if no taxing entity committee approval is required for the project area budget, the
             66      later of:
             67          (I) the date the project area plan is adopted by the community legislative body; and
             68          (II) the date the agency adopts the first project area budget;
             69          (iii) for a project on an inactive industrial site, a year after the date on which the
             70      inactive industrial site is sold for remediation and development; or
             71          (iv) for a project on an inactive airport site, a year after the later of:
             72          (A) the date on which the inactive airport site is sold for remediation and development;
             73      and
             74          (B) the date on which the airport that had been operated on the inactive airport site
             75      ceased operations; and
             76          (b) for a community development project area, the agreed value specified in a
             77      resolution or interlocal agreement under Subsection 17C-4-201 (2).
             78          (7) "Basic levy" means the portion of a school district's tax levy constituting the
             79      minimum basic levy under Section 59-2-902 .
             80          (8) "Blight" or "blighted" means the condition of an area that meets the requirements of
             81      Subsection 17C-2-303 (1).
             82          (9) "Blight hearing" means a public hearing under Subsection 17C-2-102 (1)(a)(i)(C)
             83      and Section 17C-2-302 regarding the existence or nonexistence of blight within the proposed
             84      urban renewal project area.
             85          (10) "Blight study" means a study to determine the existence or nonexistence of blight


             86      within a survey area as provided in Section 17C-2-301 .
             87          (11) "Board" means the governing body of an agency, as provided in Section
             88      17C-1-203 .
             89          (12) "Budget hearing" means the public hearing on a draft project area budget required
             90      under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or Subsection
             91      17C-3-201 (2)(d) for an economic development project area budget.
             92          (13) "Closed military base" means land within a former military base that the Defense
             93      Base Closure and Realignment Commission has voted to close or realign when that action has
             94      been sustained by the President of the United States and Congress.
             95          (14) "Combined incremental value" means the combined total of all incremental values
             96      from all urban renewal project areas, except project areas that contain some or all of a military
             97      installation or inactive industrial site, within the agency's boundaries under adopted project area
             98      plans and adopted project area budgets at the time that a project area budget for a new urban
             99      renewal project area is being considered.
             100          (15) "Community" means a county, city, or town.
             101          (16) "Community development" means development activities within a community,
             102      including the encouragement, promotion, or provision of development.
             103          (17) "Contest" means to file a written complaint in the district court of the county in
             104      which the person filing the complaint resides.
             105          [(17)] (18) "Economic development" means to promote the creation or retention of
             106      public or private jobs within the state through:
             107          (a) planning, design, development, construction, rehabilitation, business relocation, or
             108      any combination of these, within a community; and
             109          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             110      parking, public, or other facilities, or other improvements that benefit the state or a community.
             111          [(18)] (19) "Fair share ratio" means the ratio derived by:
             112          (a) for a city or town, comparing the percentage of all housing units within the city or
             113      town that are publicly subsidized income targeted housing units to the percentage of all


             114      housing units within the whole county that are publicly subsidized income targeted housing
             115      units; or
             116          (b) for the unincorporated part of a county, comparing the percentage of all housing
             117      units within the unincorporated county that are publicly subsidized income targeted housing
             118      units to the percentage of all housing units within the whole county that are publicly subsidized
             119      income targeted housing units.
             120          [(19)] (20) "Family" has the meaning as defined under regulations of the U.S.
             121      Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as
             122      superseded by replacement regulations.
             123          [(20)] (21) "Greenfield" means land not developed beyond agricultural or forestry use.
             124          [(21)] (22) "Hazardous waste" means any substance defined, regulated, or listed as a
             125      hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
             126      or toxic substance, or identified as hazardous to human health or the environment, under state
             127      or federal law or regulation.
             128          [(22)] (23) "Housing funds" means the funds allocated in an urban renewal project area
             129      budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
             130          [(23)] (24) (a) "Inactive airport site" means land that:
             131          (i) consists of at least 100 acres;
             132          (ii) is occupied by an airport:
             133          (A) (I) that is no longer in operation as an airport; or
             134          (II) (Aa) that is scheduled to be decommissioned; and
             135          (Bb) for which a replacement commercial service airport is under construction; and
             136          (B) that is owned or was formerly owned and operated by a public entity; and
             137          (iii) requires remediation because:
             138          (A) of the presence of hazardous waste or solid waste; or
             139          (B) the site lacks sufficient public infrastructure and facilities, including public roads,
             140      electric service, water system, and sewer system, needed to support development of the site.
             141          (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land


             142      described in Subsection [(23)] (24)(a).
             143          [(24)] (25) (a) "Inactive industrial site" means land that:
             144          (i) consists of at least 1,000 acres;
             145          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
             146      facility; and
             147          (iii) requires remediation because of the presence of hazardous waste or solid waste.
             148          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
             149      described in Subsection [(24)] (25)(a).
             150          [(25)] (26) "Income targeted housing" means housing to be owned or occupied by a
             151      family whose annual income is at or below 80% of the median annual income for the county in
             152      which the housing is located.
             153          [(26)] (27) "Incremental value" means a figure derived by multiplying the marginal
             154      value of the property located within an urban renewal project area on which tax increment is
             155      collected by a number that represents the percentage of adjusted tax increment from that project
             156      area that is paid to the agency.
             157          [(27)] (28) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
             158      established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
             159          [(28)] (29) "Marginal value" means the difference between actual taxable value and
             160      base taxable value.
             161          [(29)] (30) "Military installation project area" means a project area or a portion of a
             162      project area located within a federal military installation ordered closed by the federal Defense
             163      Base Realignment and Closure Commission.
             164          [(30)] (31) (a) "Municipal building" means a building owned and operated by a
             165      municipality for the purpose of providing one or more primary municipal functions, including:
             166          (i) a fire station;
             167          (ii) a police station;
             168          (iii) a city hall; or
             169          (iv) a court or other judicial building.


             170          (b) "Municipal building" does not include a building the primary purpose of which is
             171      cultural or recreational in nature.
             172          [(31)] (32) "Plan hearing" means the public hearing on a draft project area plan
             173      required under Subsection 17C-2-102 (1)(a)(vi) for an urban renewal project area plan,
             174      Subsection 17C-3-102 (1)(d) for an economic development project area plan, and Subsection
             175      17C-4-102 (1)(d) for a community development project area plan.
             176          [(32)] (33) "Post-June 30, 1993, project area plan" means a project area plan adopted
             177      on or after July 1, 1993, whether or not amended subsequent to its adoption.
             178          [(33)] (34) "Pre-July 1, 1993, project area plan" means a project area plan adopted
             179      before July 1, 1993, whether or not amended subsequent to its adoption.
             180          [(34)] (35) "Private," with respect to real property, means:
             181          (a) not owned by the United States or any agency of the federal government, a public
             182      entity, or any other governmental entity; and
             183          (b) not dedicated to public use.
             184          [(35)] (36) "Project area" means the geographic area described in a project area plan or
             185      draft project area plan where the urban renewal, economic development, or community
             186      development, as the case may be, set forth in the project area plan or draft project area plan
             187      takes place or is proposed to take place.
             188          [(36)] (37) "Project area budget" means a multiyear projection of annual or cumulative
             189      revenues and expenses and other fiscal matters pertaining to a urban renewal or economic
             190      development project area that includes:
             191          (a) the base taxable value of property in the project area;
             192          (b) the projected tax increment expected to be generated within the project area;
             193          (c) the amount of tax increment expected to be shared with other taxing entities;
             194          (d) the amount of tax increment expected to be used to implement the project area plan,
             195      including the estimated amount of tax increment to be used for land acquisition, public
             196      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             197      and public entities;


             198          (e) the tax increment expected to be used to cover the cost of administering the project
             199      area plan;
             200          (f) if the area from which tax increment is to be collected is less than the entire project
             201      area:
             202          (i) the tax identification numbers of the parcels from which tax increment will be
             203      collected; or
             204          (ii) a legal description of the portion of the project area from which tax increment will
             205      be collected;
             206          (g) for property that the agency owns and expects to sell, the expected total cost of the
             207      property to the agency and the expected selling price; and
             208          (h) (i) for an urban renewal project area, the information required under Subsection
             209      17C-2-201 (1)(b); and
             210          (ii) for an economic development project area, the information required under
             211      Subsection 17C-3-201 (1)(b).
             212          [(37)] (38) "Project area plan" means a written plan under Chapter 2, Part 1, Urban
             213      Renewal Project Area Plan, Chapter 3, Part 1, Economic Development Project Area Plan, or
             214      Chapter 4, Part 1, Community Development Project Area Plan, as the case may be, that, after
             215      its effective date, guides and controls the urban renewal, economic development, or community
             216      development activities within a project area.
             217          [(38)] (39) "Property tax" includes privilege tax and each levy on an ad valorem basis
             218      on tangible or intangible personal or real property.
             219          [(39)] (40) "Public entity" means:
             220          (a) the state, including any of its departments or agencies; or
             221          (b) a political subdivision of the state, including a county, city, town, school district,
             222      local district, special service district, or interlocal cooperation entity.
             223          [(40)] (41) "Publicly owned infrastructure and improvements" means water, sewer,
             224      storm drainage, electrical, and other similar systems and lines, streets, roads, curb, gutter,
             225      sidewalk, walkways, parking facilities, public transportation facilities, and other facilities,


             226      infrastructure, and improvements benefitting the public and to be publicly owned or publicly
             227      maintained or operated.
             228          [(41)] (42) "Record property owner" or "record owner of property" means the owner of
             229      real property as shown on the records of the recorder of the county in which the property is
             230      located and includes a purchaser under a real estate contract if the contract is recorded in the
             231      office of the recorder of the county in which the property is located or the purchaser gives
             232      written notice of the real estate contract to the agency.
             233          [(42)] (43) "Superfund site":
             234          (a) means an area included in the National Priorities List under the Comprehensive
             235      Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
             236          (b) includes an area formerly included in the National Priorities List, as described in
             237      Subsection [(42)] (43)(a), but removed from the list following remediation that leaves on site
             238      the waste that caused the area to be included in the National Priorities List.
             239          [(43)] (44) "Survey area" means an area designated by a survey area resolution for
             240      study to determine whether one or more urban renewal projects within the area are feasible.
             241          [(44)] (45) "Survey area resolution" means a resolution adopted by the agency board
             242      under Subsection 17C-2-101 (1)(a) designating a survey area.
             243          [(45)] (46) "Taxable value" means the value of property as shown on the last equalized
             244      assessment roll as certified by the county assessor.
             245          [(46)] (47) (a) "Tax increment" means, except as provided in Subsection [(46)] (47)(b),
             246      the difference between:
             247          (i) the amount of property tax revenues generated each tax year by all taxing entities
             248      from the area within a project area designated in the project area plan as the area from which
             249      tax increment is to be collected, using the current assessed value of the property; and
             250          (ii) the amount of property tax revenues that would be generated from that same area
             251      using the base taxable value of the property.
             252          (b) "Tax increment" does not include taxes levied and collected under Section
             253      59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:


             254          (i) the project area plan was adopted before May 4, 1993, whether or not the project
             255      area plan was subsequently amended; and
             256          (ii) the taxes were pledged to support bond indebtedness or other contractual
             257      obligations of the agency.
             258          [(47)] (48) "Taxing entity" means a public entity that levies a tax on a parcel or parcels
             259      of property located within a community.
             260          [(48)] (49) "Taxing entity committee" means a committee representing the interests of
             261      taxing entities, created as provided in Section 17C-1-402 .
             262          [(49)] (50) "Unincorporated" means not within a city or town.
             263          [(50)] (51) (a) "Urban renewal" means the development activities under a project area
             264      plan within an urban renewal project area, including:
             265          (i) planning, design, development, demolition, clearance, construction, rehabilitation,
             266      environmental remediation, or any combination of these, of part or all of a project area;
             267          (ii) the provision of residential, commercial, industrial, public, or other structures or
             268      spaces, including recreational and other facilities incidental or appurtenant to them;
             269          (iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
             270      any combination of these, existing structures in a project area;
             271          (iv) providing open space, including streets and other public grounds and space around
             272      buildings;
             273          (v) providing public or private buildings, infrastructure, structures, and improvements;
             274      and
             275          (vi) providing improvements of public or private recreation areas and other public
             276      grounds.
             277          (b) "Urban renewal" means "redevelopment," as defined under the law in effect before
             278      May 1, 2006, if the context requires.
             279          Section 2. Section 17C-1-201 is amended to read:
             280           17C-1-201. Creation of agency -- Name change.
             281          (1) A community may, by ordinance adopted by its legislative body, approve the


             282      creation of a community development and renewal agency.
             283          (2) (a) The community legislative body shall:
             284          (i) [within 10 days] after adopting an ordinance under Subsection (1), file with the
             285      lieutenant governor[: (A)] a copy of a notice, subject to Subsection (2)(b), of an impending
             286      boundary action, as defined in Section 67-1a-6.5 , that meets the requirements of Subsection
             287      67-1a-6.5 (3); and
             288          [(B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5 ; and]
             289          (ii) upon the lieutenant governor's issuance of a certificate of creation under Section
             290      67-1a-6.5 , submit to the recorder of the county in which the agency is located:
             291          (A) the original notice of an impending boundary action;
             292          (B) the original certificate of creation; and
             293          [(C) the original approved final local entity plat; and]
             294          [(D)] (C) a certified copy of the ordinance approving the creation of the community
             295      development and renewal agency.
             296          (b) The notice required under Subsection (2)(a)(i) shall state that the agency's
             297      boundaries are, and shall always be, coterminous with the boundaries of the community that
             298      created the agency.
             299          [(b)] (c) Upon the lieutenant governor's issuance of the certificate of creation under
             300      Section 67-1a-6.5 , the agency is created and incorporated.
             301          [(c)] (d) Until the documents listed in Subsection (2)(a)(ii) are recorded in the office of
             302      the recorder of the county in which the property is located, an agency may not receive or spend
             303      tax increment funds.
             304          (3) (a) An agency may approve a change in its name, whether to indicate it is a
             305      community development and renewal agency or otherwise, by:
             306          (i) adopting a resolution approving a name change; and
             307          (ii) filing with the lieutenant governor a copy of a notice of an impending name
             308      change, as defined in Section 67-1a-6.7 , that meets the requirements of Subsection
             309      67-1a-6.7 (3).


             310          (b) (i) Upon the lieutenant governor's issuance of a certificate of name change under
             311      Section 67-1a-6.7 , the agency shall file with the recorder of the county in which the agency is
             312      located:
             313          (A) the original notice of an impending name change;
             314          (B) the original certificate of name change; and
             315          (C) a certified copy of the resolution approving a name change.
             316          (ii) Until the documents listed in Subsection (3)(b)(i) are recorded in the office of the
             317      county recorder, the agency may not operate under the new name.
             318          Section 3. Section 17C-1-207 is amended to read:
             319           17C-1-207. Public entities may assist with urban renewal, economic development,
             320      or community development project.
             321          (1) In order to assist and cooperate in the planning, undertaking, construction, or
             322      operation of urban renewal, economic development, or community development within the
             323      area in which it is authorized to act, a public entity may:
             324          (a) (i) provide or cause to be furnished:
             325          (A) parks, playgrounds, or other recreational facilities;
             326          (B) community, educational, water, sewer, or drainage facilities; or
             327          (C) any other works which the public entity is otherwise empowered to undertake;
             328          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
             329      replan streets, roads, roadways, alleys, sidewalks, or other places;
             330          (iii) in any part of the project area:
             331          (A) (I) plan or replan any property within the project area;
             332          (II) plat or replat any property within the project area;
             333          (III) vacate a plat;
             334          (IV) amend a plat; or
             335          (V) zone or rezone any property within the project area; and
             336          (B) make any legal exceptions from building regulations and ordinances;
             337          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the


             338      rights of any holder of the bonds;
             339          (v) enter into an agreement with another public entity concerning action to be taken
             340      pursuant to any of the powers granted in this title;
             341          (vi) do any and all things necessary to aid or cooperate in the planning or carrying out
             342      of the urban renewal, economic development, or community development;
             343          (vii) in connection with the project area plan, become obligated to the extent
             344      authorized and funds have been made available to make required improvements or construct
             345      required structures; and
             346          (viii) lend, grant, or contribute funds to an agency for an urban renewal, economic
             347      development, or community development project; and
             348          (b) 15 days after posting public notice:
             349          (i) purchase or otherwise acquire property or lease property from an agency; or
             350          (ii) sell, grant, convey, or otherwise dispose of the public entity's property or lease the
             351      public entity's property to an agency.
             352          (2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
             353      may extend over any period.
             354          (3) A grant or contribution of funds from a public entity to an agency, or from an
             355      agency under a project area plan or project area budget, is not subject to the requirements of
             356      Section 10-8-2 .
             357          Section 4. Section 17C-1-401 is amended to read:
             358           17C-1-401. Agency receipt and use of tax increment and sales tax -- Distribution
             359      of tax increment and sales tax.
             360          (1) An agency may receive and use tax increment and sales tax, as provided in this
             361      part.
             362          (2) (a) The applicable length of time or number of years for which an agency is to be
             363      paid tax increment or sales tax under this part shall be measured:
             364          (i) for a pre-July 1, 1993, project area plan, from the first tax year regarding which the
             365      agency accepts tax increment from the project area;


             366          (ii) for a post-June 30, 1993, urban renewal or economic development project area
             367      plan[,]:
             368          (A) with respect to tax increment, from the first tax year for which the agency receives
             369      tax increment under the project area budget; or
             370          (B) with respect to sales tax, as indicated in the interlocal agreement between the
             371      agency and the taxing entity that established the agency's right to receive sales tax; or
             372          (iii) for a community development project area plan, as indicated in the resolution or
             373      interlocal agreement of a taxing entity that establishes the agency's right to receive tax
             374      increment or sales tax.
             375          (b) Unless otherwise provided in a project area budget that is approved by a taxing
             376      entity committee, or in an interlocal agreement or resolution adopted by a taxing entity, tax
             377      increment may not be paid to an agency for a tax year prior to the tax year following:
             378          (i) for an urban renewal or economic development project area plan, the effective date
             379      of the project area plan; and
             380          (ii) for a community development project area plan, the effective date of the interlocal
             381      agreement that establishes the agency's right to receive tax increment.
             382          (3) With respect to a community development project area plan:
             383          (a) a taxing entity or public entity may, by resolution or through interlocal agreement,
             384      authorize an agency to be paid any or all of that taxing entity or public entity's tax increment or
             385      sales tax for any period of time; and
             386          (b) the resolution or interlocal agreement authorizing the agency to be paid tax
             387      increment or sales tax shall specify:
             388          (i) the base taxable value of the project area; and
             389          (ii) the method of calculating the amount of tax increment or sales tax to be paid to the
             390      agency.
             391          (4) (a) (i) The boundaries of one project area may overlap and include the boundaries
             392      of an existing project area.
             393          (ii) If a taxing entity committee is required to approve the project area budget of an


             394      overlapping project area described in Subsection (4)(a)(i), the agency shall, before the first
             395      meeting of the taxing entity committee at which the project area budget will be considered,
             396      inform each taxing entity of the location of the overlapping boundaries.
             397          (b) (i) Before an agency may collect tax increment from the newly created overlapping
             398      portion of a project area, the agency shall inform the county auditor regarding the respective
             399      amount of tax increment that the agency is authorized to receive from the overlapping portion
             400      of each of the project areas.
             401          (ii) The combined amount of tax increment described in Subsection (4)(b)(i) may not
             402      exceed 100% of the tax increment generated from a property located within the overlapping
             403      boundaries.
             404          (c) Nothing in this Subsection (4) shall give an agency a right to collect or receive tax
             405      increment or sales tax that an agency is not otherwise entitled to collect under this title.
             406          (d) The collection of tax increment or sales tax from an overlapping project area
             407      described in Subsection (4)(a) does not affect in any way an agency's use of tax increment or
             408      sales tax within the other overlapping project area.
             409          [(4)] (5) With the written consent of a taxing entity, an agency may be paid tax
             410      increment, from that taxing entity's tax revenues only, in a higher percentage or for a longer
             411      period of time, or both, than otherwise authorized under this title.
             412          [(5)] (6) (a) Subject to Section 17C-1-407 , an agency is entitled to receive tax
             413      increment as authorized by:
             414          (i) for a pre-July 1, 1993, project area plan, Section 17C-1-403 ;
             415          (ii) for a post-June 30, 1993, project area plan:
             416          (A) Section 17C-1-404 under a project area budget adopted by the agency in
             417      accordance with this title;
             418          (B) a project area budget approved by the taxing entity committee and adopted by the
             419      agency in accordance with this title; or
             420          (C) Section 17C-1-406 ; or
             421          (iii) a resolution or interlocal agreement entered into under Section 17C-2-207 ,


             422      17C-3-206 , 17C-4-201 , or 17C-4-202 .
             423          (b) A county that collects property tax on property located within a project area shall
             424      pay and distribute any tax increment:
             425          (i) to an agency that the agency is entitled to collect; and
             426          (ii) in accordance with Section 59-2-1365 .
             427          Section 5. Section 17C-1-402 is amended to read:
             428           17C-1-402. Taxing entity committee.
             429          (1) Each agency that adopts or proposes to adopt a post-June 30, 1993, urban renewal
             430      or economic development project area plan shall, and any other agency may, cause a taxing
             431      entity committee to be created.
             432          (2) (a) (i) Each taxing entity committee shall be composed of:
             433          (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
             434          (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
             435      appointed by resolution of the legislative body of the county in which the agency is located; or
             436          (II) in a county of the first class, one representative appointed by the county executive
             437      and one representative appointed by the legislative body of the county in which the agency is
             438      located;
             439          (C) if the agency was created by a city or town, two representatives appointed by
             440      resolution of the legislative body of that city or town;
             441          (D) one representative appointed by the State Board of Education; and
             442          (E) one representative selected by majority vote of the legislative bodies or governing
             443      boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
             444      represent the interests of those taxing entities on the taxing entity committee.
             445          (ii) (A) If the agency boundaries include only one school district, that school district
             446      shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
             447          (B) If the agency boundaries include more than one school district, those school
             448      districts shall jointly appoint the two school district representatives under Subsection
             449      (2)(a)(i)(A).


             450          (b) (i) Each taxing entity committee representative under Subsection (2)(a) shall be
             451      appointed within 30 days after the agency provides notice of the creation of the taxing entity
             452      committee.
             453          (ii) If a representative is not appointed within the time required under Subsection
             454      (2)(b)(i), the agency board may appoint a person to serve on the taxing entity committee in the
             455      place of the missing representative until that representative is appointed.
             456          (c) (i) A taxing entity committee representative may be appointed for a set term or
             457      period of time, as determined by the appointing authority under Subsection (2)(a)(i).
             458          (ii) Each taxing entity committee representative shall serve until a successor is
             459      appointed and qualified.
             460          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
             461      an initial appointment or an appointment to replace an already serving representative, the
             462      appointing authority shall:
             463          (A) notify the agency in writing of the name and address of the newly appointed
             464      representative; and
             465          (B) provide the agency a copy of the resolution making the appointment or, if the
             466      appointment is not made by resolution, other evidence of the appointment.
             467          (ii) Each appointing authority of a taxing entity committee representative under
             468      Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
             469      representative appointed by that appointing authority.
             470          (3) At its first meeting, a taxing entity committee shall adopt an organizing resolution:
             471          (a) designating a chair and a secretary of the committee; and
             472          (b) if the committee considers it appropriate, governing the use of electronic meetings
             473      under Section 52-4-207 .
             474          (4) (a) A taxing entity committee represents all taxing entities regarding:
             475          (i) an urban renewal project area; or
             476          (ii) an economic development project area.
             477          (b) A taxing entity committee may:


             478          (i) cast votes that will be binding on all taxing entities;
             479          (ii) negotiate with the agency concerning a draft project area plan;
             480          (iii) approve or disapprove:
             481          (A) an urban renewal project area budget as provided in Section 17C-2-204 ; or
             482          (B) an economic development project area budget as provided in Section 17C-3-203 ;
             483          (iv) approve or disapprove amendments to a project area budget as provided in:
             484          (A) Section 17C-2-206 for an urban renewal project area budget; or
             485          (B) Section 17C-3-205 for an economic development project area budget;
             486          (v) approve exceptions to the limits on the value and size of a project area imposed
             487      under this title;
             488          (vi) approve exceptions to the percentage of tax increment and the period of time that
             489      tax increment is paid to the agency as provided in this title;
             490          (vii) approve the use of tax increment for publicly owned infrastructure and
             491      improvements outside of an urban renewal or economic development project area that the
             492      agency and community legislative body determine to be of benefit to the urban renewal or
             493      economic development project area, as provided in Subsection 17C-1-409 (1)(a)(iii)(D);
             494          (viii) waive the restrictions imposed by Subsection 17C-2-202 (1); [and]
             495          (ix) subject to Subsection (4)(c), designate in an approved urban renewal or economic
             496      development project area budget the base taxable value for that project area budget; and
             497          [(ix)] (x) give other taxing entity committee approval or consent required or allowed
             498      under this title.
             499          (c) The base year used for calculation of the base taxable value in Subsection (4)(b)(ix)
             500      may not be a year that is earlier than the year during which the project area plan became
             501      effective.
             502          (5) A quorum of a taxing entity committee consists of:
             503          (a) if the project area is located within a city or town, five members; or
             504          (b) if the project area is not located within a city or town, four members.
             505          (6) Taxing entity committee approval, consent, or other action requires:


             506          (a) the affirmative vote of a majority of all members present at a taxing entity
             507      committee meeting:
             508          (i) at which a quorum is present; and
             509          (ii) considering an action relating to a project area budget for, or approval of a finding
             510      of blight within, a project area or proposed project area that contains:
             511          (A) an inactive industrial site;
             512          (B) an inactive airport site; or
             513          (C) a closed military base; or
             514          (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
             515      two-thirds of all members present at a taxing entity committee meeting at which a quorum is
             516      present.
             517          (7) (a) An agency may call a meeting of the taxing entity committee by sending written
             518      notice to the members of the taxing entity committee at least 10 days before the date of the
             519      meeting.
             520          (b) Each notice under Subsection (7)(a) shall be accompanied by:
             521          (i) the proposed agenda for the taxing entity committee meeting; and
             522          (ii) if not previously provided and if they exist and are to be considered at the meeting:
             523          (A) the project area plan or proposed plan;
             524          (B) the project area budget or proposed budget;
             525          (C) the analysis required under Subsection 17C-2-103 (2) or 17C-3-103 (2);
             526          (D) the blight study;
             527          (E) the agency's resolution making a finding of blight under Subsection
             528      17C-2-102 (1)(a) (ii)(B); and
             529          (F) other documents to be considered by the taxing entity committee at the meeting.
             530          (c) (i) An agency may not schedule a taxing entity committee meeting to meet on a day
             531      on which the Legislature is in session.
             532          (ii) Notwithstanding Subsection (7)(c)(i), the taxing entity committee may, by
             533      unanimous consent, waive the scheduling restriction described in Subsection (7)(c)(I).


             534          (8) (a) A taxing entity committee may not vote on a proposed project area budget or
             535      proposed amendment to a project area budget at the first meeting at which the proposed budget
             536      or amendment is considered unless all members of the taxing entity committee present at the
             537      meeting consent.
             538          (b) A second taxing entity committee meeting to consider a project area budget or a
             539      proposed amendment to a project area budget may not be held within 14 days after the first
             540      meeting unless all members of the taxing entity committee present at the first meeting consent.
             541          (9) (a) Except as provided in Subsection (9)(b), each taxing entity committee shall
             542      meet at least annually during the time that the agency receives tax increment under an urban
             543      renewal or economic development project area budget in order to review the status of the
             544      project area.
             545          (b) A taxing entity committee is not required under Subsection (9)(a) to meet if the
             546      agency submits on or before November 1 of each year to the county auditor, the State Tax
             547      Commission, the State Board of Education, and each taxing entity that levies a tax on property
             548      from which the agency collects tax increment, a report containing the following:
             549          (i) an assessment of growth of incremental values for each active project area,
             550      including:
             551          (A) the base year assessed value;
             552          (B) the prior year's assessed value;
             553          (C) the estimated current year assessed value for the project area; and
             554          (D) a narrative description of the relative growth in assessed value within the project
             555      area;
             556          (ii) a description of the amount of tax increment received by the agency and passed
             557      through to other taxing entities from each active project area, including:
             558          (A) a comparison of the original forecasted amount of tax increment to actual receipts;
             559          (B) a narrative discussion regarding the use of tax increment; and
             560          (C) a description of the benefits derived by the taxing entities;
             561          (iii) a description of activity within each active project area, including:


             562          (A) a narrative of any significant development activity, including infrastructure
             563      development, site development, and vertical construction within the project area; and
             564          (B) a narrative discussion regarding the status of any agreements for development
             565      within the project area;
             566          (iv) a revised multi-year tax increment budget related to each active project area,
             567      including:
             568          (A) the prior year's tax increment receipts;
             569          (B) the base year value and adjusted base year value, as applicable;
             570          (C) the applicable tax rates within the project area; and
             571          (D) a [schedule] description of private and public investment within the project area;
             572      [and]
             573          (v) an estimate of the tax increment to be paid to the agency for the calendar years
             574      ending December 31 and beginning the next January 1; and
             575          [(v)] (vi) any other project highlights included by the agency.
             576          (10) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
             577      Public Meetings Act.
             578          (11) Each time a school district representative or a representative of the State Board of
             579      Education votes as a member of a taxing entity committee to allow an agency to be paid tax
             580      increment or to increase the amount or length of time that an agency may be paid tax
             581      increment, that representative shall, within 45 days after the vote, provide to the
             582      representative's respective school board an explanation in writing of the representative's vote
             583      and the reasons for the vote.
             584          (12) (a) The auditor of each county in which the agency is located shall provide a
             585      written report to the taxing entity committee stating, with respect to property within each urban
             586      renewal and economic development project area:
             587          (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408 ;
             588      and
             589          (ii) the assessed value.


             590          (b) With respect to the information required under Subsection (12)(a), the auditor shall
             591      provide:
             592          (i) actual amounts for each year from the adoption of the project area plan to the time
             593      of the report; and
             594          (ii) estimated amounts for each year beginning the year after the time of the report and
             595      ending the time that the agency expects no longer to be paid tax increment from property
             596      within the urban renewal and economic development project area.
             597          (c) The auditor of the county in which the agency is located shall provide a report
             598      under this Subsection (12):
             599          (i) at least annually; and
             600          (ii) upon request of the taxing entity committee, before a taxing entity committee
             601      meeting at which the committee will consider whether to allow the agency to be paid tax
             602      increment or to increase the amount of tax increment that the agency may be paid or the length
             603      of time that the agency may be paid tax increment.
             604          (13) This section does not apply to a community development project area plan.
             605          (14) A taxing entity committee resolution, whether adopted before, on, or after May 10,
             606      2011, approving a blight finding, approving a project area budget, or approving an amendment
             607      to a project area budget:
             608          (a) is final; and
             609          (b) is not subject to repeal, amendment, or reconsideration unless the agency first
             610      consents by resolution to the proposed repeal, amendment, or reconsideration.
             611          Section 6. Section 17C-2-601 is amended to read:
             612           17C-2-601. Use of eminent domain in an urban renewal project area --
             613      Conditions -- Acquiring single family owner occupied residential property or commercial
             614      property -- Acquiring property already devoted to a public use -- Relocation assistance
             615      requirement.
             616          (1) Subject to Section 17C-2-602 , an agency may use eminent domain to acquire
             617      property:


             618          (a) within an urban renewal project area if:
             619          (i) the agency board makes a finding of blight under Part 3, Blight Determination in
             620      Urban Renewal Project Areas;
             621          (ii) the urban renewal project area plan provides for the use of eminent domain; and
             622          (iii) the agency commences the acquisition of the property within five years after the
             623      effective date of the urban renewal project area plan; or
             624          (b) within a project area established after December 31, 2001 but before April 30, 2007
             625      if:
             626          (i) the agency board made a finding of blight with respect to the project area as
             627      provided under the law in effect at the time of the finding;
             628          (ii) the project area plan provides for the use of eminent domain; and
             629          (iii) the agency commences the acquisition of the property before January 1, 2010.
             630          (2) (a) As used in this Subsection (2):
             631          (i) "Commercial property" means a property used, in whole or in part, by the owner or
             632      possessor of the property for a commercial, industrial, retail, or other business purpose,
             633      regardless of the identity of the property owner.
             634          [(i)] (ii) "Owner occupied property" means private real property:
             635          (A) whose use is single-family residential or commercial; and
             636          (B) that is occupied by the owner of the property.
             637          [(ii)] (iii) "Relevant area" means:
             638          (A) except as provided in Subsection (2)(a)[(ii)](iii)(B), the project area; or
             639          (B) the area included within a phase of a project under a project area plan if the phase
             640      and the area included within the phase are described in the project area plan.
             641          (b) For purposes of each provision of this Subsection (2) relating to the submission of a
             642      petition by the owners of property, a parcel of real property is included in the calculation of the
             643      applicable percentage if the petition is signed by:
             644          (i) except as provided in Subsection (2)(b)(ii), owners representing a majority
             645      ownership interest in that parcel; or


             646          (ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
             647      of owners of that parcel.
             648          (c) An agency may not acquire by eminent domain single-family residential owner
             649      occupied property unless:
             650          (i) the owner consents; or
             651          (ii) (A) a written petition requesting the agency to use eminent domain to acquire the
             652      property is submitted by the owners of at least 80% of the owner occupied property within the
             653      relevant area representing at least 70% of the value of owner occupied property within the
             654      relevant area; and
             655          (B) 2/3 of all agency board members vote in favor of using eminent domain to acquire
             656      the property.
             657          (d) An agency may not acquire commercial property by eminent domain unless:
             658          (i) the owner consents; or
             659          (ii) (A) a written petition requesting the agency to use eminent domain to acquire the
             660      property is submitted by the owners of at least 75% of the commercial property within the
             661      relevant area representing at least 60% of the value of commercial property within the relevant
             662      area; and
             663          (B) 2/3 of all agency board members vote in favor of using eminent domain to acquire
             664      the property.
             665          (3) An agency may not acquire any real property on which an existing building is to be
             666      continued on its present site and in its present form and use unless:
             667          (a) the owner consents; or
             668          (b) (i) the building requires structural alteration, improvement, modernization, or
             669      rehabilitation;
             670          (ii) the site or lot on which the building is situated requires modification in size, shape,
             671      or use; or
             672          (iii) (A) it is necessary to impose upon the property any of the standards, restrictions,
             673      and controls of the project area plan; and


             674          (B) the owner fails or refuses to agree to participate in the project area plan.
             675          (4) (a) Subject to Subsection (4)(b), an agency may acquire by eminent domain
             676      property that is already devoted to a public use and located in:
             677          (i) an urban renewal project area; or
             678          (ii) a project area described in Subsection (1)(b).
             679          (b) An agency may not acquire property of a public entity under Subsection (4)(a)
             680      without the public entity's consent.
             681          (5) Each agency that acquires property by eminent domain shall comply with Title 57,
             682      Chapter 12, Utah Relocation Assistance Act.
             683          Section 7. Section 63G-6-103 is amended to read:
             684           63G-6-103. Definitions.
             685          As used in this chapter:
             686          (1) "Architect-engineer services" are those professional services within the scope of the
             687      practice of architecture as defined in Section 58-3a-102 , or professional engineering as defined
             688      in Section 58-22-102 .
             689          (2) "Business" means any corporation, partnership, individual, sole proprietorship,
             690      joint stock company, joint venture, or any other private legal entity.
             691          (3) "Change order" means a written order signed by the procurement officer, directing
             692      the contractor to suspend work or make changes, which the appropriate clauses of the contract
             693      authorize the procurement officer to order without the consent of the contractor or any written
             694      alteration in specifications, delivery point, rate of delivery, period of performance, price,
             695      quantity, or other provisions of any contract accomplished by mutual action of the parties to the
             696      contract.
             697          (4) (a) "Construction" means the process of building, renovation, alteration,
             698      improvement, or repair of any public building or public work.
             699          (b) "Construction" does not mean the routine operation, routine repair, or routine
             700      maintenance of existing structures, buildings, or real property.
             701          (5) (a) "Construction Manager/General Contractor" means any contractor who enters


             702      into a contract for the management of a construction project when that contract allows the
             703      contractor to subcontract for additional labor and materials that were not included in the
             704      contractor's cost proposal submitted at the time of the procurement of the Construction
             705      Manager/General Contractor's services.
             706          (b) "Construction Manager/General Contractor" does not mean a contractor whose only
             707      subcontract work not included in the contractor's cost proposal submitted as part of the
             708      procurement of construction is to meet subcontracted portions of change orders approved
             709      within the scope of the project.
             710          (6) "Contract" means any state agreement for the procurement or disposal of supplies,
             711      services, or construction.
             712          (7) "Cooperative purchasing" means procurement conducted by, or on behalf of, more
             713      than one public procurement unit, or by a public procurement unit with an external
             714      procurement unit.
             715          (8) "Cost-reimbursement contract" means a contract under which a contractor is
             716      reimbursed for costs which are allowed and allocated in accordance with the contract terms and
             717      the provisions of this chapter, and a fee, if any.
             718          (9) (a) "Design-build" means the procurement of architect-engineer services and
             719      construction by the use of a single contract with the design-build provider.
             720          (b) This method of design and construction can include the design-build provider
             721      supplying the site as part of the contract.
             722          (10) "Established catalogue price" means the price included in a catalogue, price list,
             723      schedule, or other form that:
             724          (a) is regularly maintained by a manufacturer or contractor;
             725          (b) is either published or otherwise available for inspection by customers; and
             726          (c) states prices at which sales are currently or were last made to a significant number
             727      of any category of buyers or buyers constituting the general buying public for the supplies or
             728      services involved.
             729          (11) "External procurement unit" means any buying organization not located in this


             730      state which, if located in this state, would qualify as a public procurement unit. An agency of
             731      the United States is an external procurement unit.
             732          (12) "Grant" means the furnishing by the state or by any other public or private source
             733      assistance, whether financial or otherwise, to any person to support a program authorized by
             734      law. It does not include an award whose primary purpose is to procure an end product, whether
             735      in the form of supplies, services, or construction. A contract resulting from the award is not a
             736      grant but a procurement contract.
             737          (13) "Invitation for bids" means all documents, whether attached or incorporated by
             738      reference, utilized for soliciting bids.
             739          (14) "Local public procurement unit" means any political subdivision or institution of
             740      higher education of the state or public agency of any subdivision, public authority, educational,
             741      health, or other institution, and to the extent provided by law, any other entity which expends
             742      public funds for the procurement of supplies, services, and construction, but not counties,
             743      municipalities, an agency created under Title 17C, Limited Purpose Local Government Entities
             744      - Community Development and Renewal Agencies Act, political subdivisions created by
             745      counties or municipalities under the Interlocal Cooperation Act, the Utah Housing Corporation,
             746      or the Legislature and its staff offices. It includes two or more local public procurement units
             747      acting under legislation which authorizes intergovernmental cooperation.
             748          (15) "Person" means any business, individual, union, committee, club, other
             749      organization, or group of individuals, not including a state agency or a local public
             750      procurement unit.
             751          (16) "Policy board" means the procurement policy board created by Section
             752      63G-6-201 .
             753          (17) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
             754      under the requirements of this chapter.
             755          (18) "Procurement" means buying, purchasing, renting, leasing, leasing with an option
             756      to purchase, or otherwise acquiring any supplies, services, or construction. It also includes all
             757      functions that pertain to the obtaining of any supply, service, or construction, including


             758      description of requirements, selection, and solicitation of sources, preparation, and award of a
             759      contract, and all phases of contract administration.
             760          (19) "Procurement officer" means any person or board duly authorized to enter into and
             761      administer contracts and make written determinations with respect thereto. It also includes an
             762      authorized representative acting within the limits of authority.
             763          (20) "Public procurement unit" means either a local public procurement unit or a state
             764      public procurement unit.
             765          (21) "Purchase description" means the words used in a solicitation to describe the
             766      supplies, services, or construction to be purchased, and includes specifications attached to or
             767      made a part of the solicitation.
             768          (22) "Purchasing agency" means any state agency other than the Division of Purchasing
             769      and General Services that is authorized by this chapter or its implementing regulations, or by
             770      delegation from the chief procurement officer, to enter into contracts.
             771          (23) "Request for proposals" means all documents, whether attached or incorporated by
             772      reference, used for soliciting proposals.
             773          (24) "Responsible bidder or offeror" means a person who has the capability in all
             774      respects to perform fully the contract requirements and who has the integrity and reliability
             775      which will assure good faith performance.
             776          (25) "Responsive bidder" means a person who has submitted a bid which conforms in
             777      all material respects to the invitation for bids.
             778          (26) "Sealed" does not preclude acceptance of electronically sealed and submitted bids
             779      or proposals in addition to bids or proposals manually sealed and submitted.
             780          (27) "Services" means the furnishing of labor, time, or effort by a contractor, not
             781      involving the delivery of a specific end product other than reports which are merely incidental
             782      to the required performance. It does not include employment agreements or collective
             783      bargaining agreements.
             784          (28) "Specification" means any description of the physical or functional characteristics,
             785      or of the nature of a supply, service, technology, or construction item. It may include a


             786      description of any requirement for inspecting, testing, or preparing a supply, service,
             787      technology, or construction item for delivery.
             788          (29) "State agency" or "the state" means any department, division, commission,
             789      council, board, bureau, committee, institution, government corporation, or other establishment,
             790      official, or employee of this state.
             791          (30) "State public procurement unit" means the Division of Purchasing and General
             792      Services and any other purchasing agency of this state.
             793          (31) "Supplies" means all property, including equipment, materials, and printing.
             794          (32) "Using agency" means any state agency which utilizes any supplies, services, or
             795      construction procured under this chapter.


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