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S.B. 165 Enrolled
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:
22 Other Special Clauses:
24 Utah Code Sections Affected:
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
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;
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;
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.
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.
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.
121 Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as
122 superseded by replacement regulations.
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.
129 budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
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 [
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 [
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.
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.
158 established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
160 base taxable value.
162 project area located within a federal military installation ordered closed by the federal Defense
163 Base Realignment and Closure Commission.
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.
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.
177 on or after July 1, 1993, whether or not amended subsequent to its adoption.
179 before July 1, 1993, whether or not amended subsequent to its adoption.
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.
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.
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
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).
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.
218 on tangible or intangible personal or real property.
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.
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.
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.
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 [
238 the waste that caused the area to be included in the National Priorities List.
240 study to determine whether one or more urban renewal projects within the area are feasible.
242 under Subsection 17C-2-101 (1)(a) designating a survey area.
244 assessment roll as certified by the county assessor.
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.
259 of property located within a community.
261 taxing entities, created as provided in Section 17C-1-402 .
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
273 (v) providing public or private buildings, infrastructure, structures, and improvements;
275 (vi) providing improvements of public or private recreation areas and other public
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) [
285 lieutenant governor[
286 boundary action, as defined in Section 67-1a-6.5 , that meets the requirements of Subsection
287 67-1a-6.5 (3); 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
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.
300 Section 67-1a-6.5 , the agency is created and incorporated.
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
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
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
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
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
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.
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.
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
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
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
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); [
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
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
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
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
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,
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
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,
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 [
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
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 ;
589 (ii) the assessed value.
590 (b) With respect to the information required under Subsection (12)(a), the auditor shall
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
616 (1) Subject to Section 17C-2-602 , an agency may use eminent domain to acquire
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
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.
635 (A) whose use is single-family residential or commercial; and
636 (B) that is occupied by the owner of the property.
638 (A) except as provided in Subsection (2)(a)[
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
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
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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