S.B. 45 Enrolled






Chief Sponsor: Jerry W. Stevenson

House Sponsor: Brad L. Dee

             8      LONG TITLE
             9      General Description:
             10          This bill modifies Title 19, Chapter 6, Part 5, Solid Waste Management Act, and Title
             11      63H, Chapter 1, Military Installation Development Authority Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the definition of "solid waste management facility" to include an auxiliary
             15      energy facility that is connected to an existing resource recovery facility;
             16          .    repeals Section 19-6-504 , which discusses certain requirements for a public entity
             17      that issues bonds to finance a solid waste management facility;
             18          .    defines the term "development" to include certain activities within a project area;
             19          .    modifies the definition of "property tax" to not include a privilege tax on a portion
             20      of a facility on military land leased back to the military under certain circumstances;
             21          .    describes certain exemptions from the Condominium Ownership Act;
             22          .    modifies the definition of "publicly owned infrastructure and improvements"; and
             23          .    provides that the issuance of a certificate of occupancy by the authority, or an entity
             24      designated by the authority, determines when improvements on a parcel within a
             25      project area become subject to property tax.
             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None

             30      Utah Code Sections Affected:
             31      AMENDS:
             32           19-6-502 , as last amended by Laws of Utah 2008, Chapters 89 and 360
             33           63H-1-102 , as last amended by Laws of Utah 2013, Chapter 362
             34           63H-1-202 , as last amended by Laws of Utah 2010, Chapter 9
             35           63H-1-501 , as last amended by Laws of Utah 2013, Chapter 362
             36      REPEALS:
             37           19-6-504 , as renumbered and amended by Laws of Utah 1991, Chapter 112
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 19-6-502 is amended to read:
             41           19-6-502. Definitions.
             42          As used in this part:
             43          (1) "Governing body" means the governing board, commission, or council of a public
             44      entity.
             45          (2) "Jurisdiction" means the area within the incorporated limits of:
             46          (a) a municipality;
             47          (b) a special service district;
             48          (c) a municipal-type service district;
             49          (d) a service area; or
             50          (e) the territorial area of a county not lying within a municipality.
             51          (3) "Long-term agreement" means an agreement or contract having a term of more than
             52      five years but less than 50 years.
             53          (4) "Municipal residential waste" means solid waste that is:
             54          (a) discarded or rejected at a residence within the public entity's jurisdiction; and
             55          (b) collected at or near the residence by:
             56          (i) a public entity; or
             57          (ii) a person with whom the public entity has as an agreement to provide solid waste

             58      management.
             59          (5) "Public entity" means:
             60          (a) a county;
             61          (b) a municipality;
             62          (c) a special service district under Title 17D, Chapter 1, Special Service District Act;
             63          (d) a service area under Title 17B, Chapter 2a, Part 9, Service Area Act; or
             64          (e) a municipal-type service district created under Title 17, Chapter 34,
             65      Municipal-Type Services to Unincorporated Areas.
             66          (6) "Requirement" means an ordinance, policy, rule, mandate, or other directive that
             67      imposes a legal duty on a person.
             68          (7) "Residence" means an improvement to real property used or occupied as a primary
             69      or secondary detached single-family dwelling.
             70          (8) "Resource recovery" means the separation, extraction, recycling, or recovery of
             71      usable material, energy, fuel, or heat from solid waste and the disposition of it.
             72          (9) "Short-term agreement" means a contract or agreement having a term of five years
             73      or less.
             74          (10) (a) "Solid waste" means a putrescible or nonputrescible material or substance
             75      discarded or rejected as being spent, useless, worthless, or in excess of the owner's needs at the
             76      time of discard or rejection, including:
             77          (i) garbage;
             78          (ii) refuse;
             79          (iii) industrial and commercial waste;
             80          (iv) sludge from an air or water control facility;
             81          (v) rubbish;
             82          (vi) ash;
             83          (vii) contained gaseous material;
             84          (viii) incinerator residue;
             85          (ix) demolition and construction debris;

             86          (x) a discarded automobile; and
             87          (xi) offal.
             88          (b) "Solid waste" does not include sewage or another highly diluted water carried
             89      material or substance and those in gaseous form.
             90          (11) "Solid waste management" means the purposeful and systematic collection,
             91      transportation, storage, processing, recovery, or disposal of solid waste.
             92          (12) "Solid waste management facility" means a facility employed for solid waste
             93      management, including:
             94          (a) a transfer station;
             95          (b) a transport system;
             96          (c) a baling facility;
             97          (d) a landfill; and
             98          (e) a processing system, including:
             99          (i) a resource recovery facility;
             100          (ii) a facility for reducing solid waste volume;
             101          (iii) a plant or facility for compacting, composting, or pyrolization of solid waste;
             102          (iv) an incinerator;
             103          (v) a solid waste disposal, reduction, or conversion facility; [and]
             104          (vi) a facility for resource recovery of energy consisting of:
             105          (A) a facility for the production, transmission, distribution, and sale of heat and steam;
             106          (B) a facility for the generation and sale of electric energy to a public utility,
             107      municipality, or other public entity that owns and operates an electric power system on March
             108      15, 1982; and
             109          (C) a facility for the generation, sale, and transmission of electric energy on an
             110      emergency basis only to a military installation of the United States[.]; and
             111          (vii) an auxiliary energy facility that is connected to a facility for resource recovery of
             112      energy as described in Subsection (12)(e)(vi), that:
             113          (A) is fueled by natural gas, landfill gas, or both;

             114          (B) consists of a facility for the production, transmission, distribution, and sale of
             115      supplemental heat and steam to meet all or a portion of the heat and steam requirements of a
             116      military installation of the United States; and
             117          (C) consists of a facility for the generation, transmission, distribution, and sale of
             118      electric energy to a public utility, a municipality described in Subsection (12)(e)(vi)(B), or a
             119      political subdivision created under Title 11, Chapter 13, Interlocal Cooperation Act.
             120          Section 2. Section 63H-1-102 is amended to read:
             121           63H-1-102. Definitions.
             122          As used in this chapter:
             123          (1) "Authority" means the Military Installation Development Authority, created under
             124      Section 63H-1-201 .
             125          (2) "Base taxable value" means:
             126          (a) for military land or other land that was exempt from a property tax at the time that a
             127      project area was created that included the military land or other land, a taxable value of zero; or
             128          (b) for private property that is included in a project area, the taxable value of the
             129      property within any portion of the project area, as designated by board resolution, from which
             130      tax increment will be collected, as shown upon the assessment roll last equalized before the
             131      year in which the authority issues a building permit for a building within that portion of the
             132      project area.
             133          (3) "Board" means the governing body of the authority created under Section
             134      63H-1-301 .
             135          (4) (a) "Dedicated tax collections" means the property tax that remains after the
             136      authority is paid the tax increment it is entitled to receive under Subsection 63H-1-501 (1), for a
             137      property tax levied by:
             138          (i) a county, including a district the county has established under Subsection 17-34-3 (2)
             139      to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
             140      Areas; or
             141          (ii) an included municipality.

             142          (b) "Dedicated tax collections" does not include a property tax levied by a county to
             143      assess and collect property taxes under Subsections 59-2-1602 (1) and (4).
             144          (5) (a) "Development" means an activity occurring on land within a project area that is
             145      owned or operated by the military, the authority, another public entity, or a private entity.
             146          (b) "Development" includes the demolition, construction, reconstruction, modification,
             147      expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
             148      recreational amenity.
             149          [(5)] (6) "Development project" means a project to develop land within a project area.
             150          [(6)] (7) "Elected member" means a member of the authority board who:
             151          (a) is a mayor or member of a legislative body appointed under Subsection
             152      63H-1-302 (2)(b); or
             153          (b) (i) is appointed to the authority board under Subsection 63H-1-302 (2)(a) or (3); and
             154          (ii) concurrently serves in an elected state, county, or municipal office.
             155          [(7)] (8) "Included municipality" means a municipality, some or all of which is
             156      included within a project area.
             157          [(8)] (9) "Military Installation Development Authority energy tax" or "MIDA energy
             158      tax" means the tax levied under Section 63H-1-204 .
             159          [(9)] (10) "Military land" means land or a facility, including leased land or a leased
             160      facility, that is part of or affiliated with a base, camp, post, station, yard, center, or installation
             161      under the jurisdiction of the U.S. Department of Defense or the Utah National Guard.
             162          [(10)] (11) "Municipal energy tax" means a municipal energy sales and use tax under
             163      Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
             164          [(11)] (12) "Municipal services revenue" means revenue that the authority:
             165          (a) collects from the authority's:
             166          (i) levy of a municipal energy tax;
             167          (ii) levy of a MIDA energy tax;
             168          (iii) levy of a telecommunications tax;
             169          (iv) imposition of a transient room tax; and

             170          (v) imposition of a resort communities tax;
             171          (b) receives under Subsection 59-12-205 (2)(b)(ii); and
             172          (c) receives as dedicated tax collections.
             173          [(12)] (13) "Municipal tax" means a municipal energy tax, MIDA energy tax,
             174      telecommunications tax, transient room tax, or resort communities tax.
             175          [(13)] (14) "Project area" means the land, including military land, whether consisting
             176      of a single contiguous area or multiple noncontiguous areas, described in a project area plan or
             177      draft project area plan, where the development project set forth in the project area plan or draft
             178      project area plan takes place or is proposed to take place.
             179          [(14)] (15) "Project area budget" means a multiyear projection of annual or cumulative
             180      revenues and expenses and other fiscal matters pertaining to a project area that includes:
             181          (a) the base taxable value of property in the project area;
             182          (b) the projected tax increment expected to be generated within the project area;
             183          (c) the amount of the tax increment expected to be shared with other taxing entities;
             184          (d) the amount of the tax increment expected to be used to implement the project area
             185      plan, including the estimated amount of the tax increment to be used for land acquisition,
             186      public improvements, infrastructure improvements, and loans, grants, or other incentives to
             187      private and public entities;
             188          (e) the tax increment expected to be used to cover the cost of administering the project
             189      area plan;
             190          (f) if the tax increment is to be collected at different times or from different portions of
             191      the project area, or both:
             192          (i) (A) the tax identification numbers of the parcels from which the tax increment will
             193      be collected; or
             194          (B) a legal description of the portion of the project area from which the tax increment
             195      will be collected; and
             196          (ii) an estimate of when other portions of the project area will become subject to
             197      collection of the tax increment; and

             198          (g) for property that the authority owns or leases and expects to sell or sublease, the
             199      expected total cost of the property to the authority and the expected selling price or lease
             200      payments.
             201          [(15)] (16) "Project area plan" means a written plan that, after its effective date, guides
             202      and controls the development within a project area.
             203          [(16)] (17) (a) "Property tax" includes a privilege tax, except as described in
             204      Subsection (17)(b), and each levy on an ad valorem basis on tangible or intangible personal or
             205      real property.
             206          (b) "Property tax" does not include a privilege tax on the taxable value attributable to a
             207      portion of a facility leased to the military for a calendar year when:
             208          (i) a lessee of military land has constructed a facility on the military land that is part of
             209      a project area;
             210          (ii) the lessee leases space in the facility to the military for the entire calendar year; and
             211          (iii) the lease rate paid by the military for the space is $1 or less for the entire calendar
             212      year, not including any common charges that are reimbursements for actual expenses.
             213          [(17)] (18) "Public entity" means:
             214          (a) the state, including each department or agency of the state; or
             215          (b) a political subdivision of the state, including a county, city, town, school district,
             216      local district, special service district, or interlocal cooperation entity.
             217          [(18) "Publicly owned infrastructure and improvements" means water, sewer, storm
             218      drainage, electrical, telecommunications, and other similar systems and lines, streets, roads,
             219      curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, and other
             220      buildings, facilities, infrastructure, and improvements that:]
             221          [(a) benefit the public; and]
             222          [(b) are:]
             223          [(i) publicly owned or owned by a utility; or]
             224          [(ii) publicly maintained or operated by the authority or another public entity.]
             225          (19) (a) "Publicly owned infrastructure and improvements" means infrastructure,

             226      improvements, facilities, or buildings that benefit the public and are:
             227          (i) publicly owned by the military, the authority, or another public entity;
             228          (ii) owned by a utility; or
             229          (iii) publicly maintained or operated by the military, the authority, or another public
             230      entity.
             231          (b) "Publicly owned infrastructure and improvements" includes:
             232          (i) facilities, lines, or systems that provide water, chilled water, steam, sewer, storm
             233      drainage, natural gas, electricity, or telecommunications; and
             234          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
             235      facilities, and public transportation facilities.
             236          [(19)] (20) "Remaining municipal services revenue" means municipal services revenue
             237      that the authority has not spent during its fiscal year for municipal services as provided in
             238      Subsection 63H-1-503 (1).
             239          [(20)] (21) "Resort communities tax" means a sales and use tax imposed under Section
             240      59-12-401 .
             241          [(21)] (22) "Taxable value" means the value of property as shown on the last equalized
             242      assessment roll as certified by the county assessor.
             243          [(22)] (23) "Tax increment" means the difference between:
             244          (a) the amount of property tax revenues generated each tax year by all taxing entities
             245      from the area within a project area designated in the project area plan as the area from which
             246      the tax increment is to be collected, using the current assessed value of the property; and
             247          (b) the amount of property tax revenues that would be generated from that same area
             248      using the base taxable value of the property.
             249          [(23)] (24) "Taxing entity" means a public entity that levies a tax on property within a
             250      project area.
             251          [(24)] (25) "Telecommunications tax" means a telecommunications license tax under
             252      Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
             253          [(25)] (26) "Transient room tax" means a tax under Section 59-12-352 .

             254          Section 3. Section 63H-1-202 is amended to read:
             255           63H-1-202. Applicability of other law.
             256          (1) The authority or land within a project area is not subject to:
             257          (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
             258          (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
             259          (c) [any] ordinances or regulations of a county or municipality, including those relating
             260      to land use, health, business license, or franchise; or
             261          (d) the jurisdiction of [any] a local district under Title 17B, Limited Purpose Local
             262      Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
             263      Special Service District Act.
             264          (2) The authority is subject to and governed by Sections 63E-2-106 , 63E-2-107 ,
             265      63E-2-108 , 63E-2-109 , 63E-2-110 , and 63E-2-111 , but is not otherwise subject to or governed
             266      by Title 63E, Independent Entities Code.
             267          (3) (a) The definitions in Section 57-8-3 apply to this Subsection (3).
             268          (b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
             269      Act:
             270          (i) if the military is the owner of land on which a condominium project is constructed,
             271      it is not required to sign, execute, or record a declaration of a condominium project; and
             272          (ii) if a condominium unit is owned by the authority and leased to the military for $1 or
             273      less per calendar year, not including any common charges that are reimbursements for actual
             274      expenses:
             275          (A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
             276      Condominium Ownership Act; and
             277          (B) condominium unit owners within the same building or commercial condominium
             278      project may agree on any method of allocation and payment of common area expenses,
             279      regardless of the size or par value of each unit.
             280          Section 4. Section 63H-1-501 is amended to read:
             281           63H-1-501. Authority receipt and use of tax increment -- Distribution of tax

             282      increment.
             283          (1) (a) The authority may:
             284          (i) subject to Subsection (1)(b), receive up to 75% of the tax increment for up to 25
             285      years, as provided in this part; and
             286          (ii) use the tax increment during and after the period described in Subsection (1)(a)(i).
             287          (b) With respect to a parcel located within a project area, the 25-year period described
             288      in Subsection (1)(a)(i) shall begin on the day on which the authority receives the first tax
             289      increment from that parcel.
             290          (2) Improvements on a parcel within a project area become subject to property tax on
             291      January 1 immediately following the day on which the authority or an entity designated by the
             292      authority issues a certificate of occupancy with respect to those improvements.
             293          (3) Each county that collects property tax on property within a project area shall pay
             294      and distribute to the authority the tax increment and dedicated tax collections that the authority
             295      is entitled to collect under this title, in the manner and at the time provided in Section
             296      59-2-1365 .
             297          (4) (a) The board shall determine by resolution when the entire project area or an
             298      individual parcel within a project area is subject to tax increment.
             299          (b) The board shall amend the project area budget to reflect whether a parcel within a
             300      project area is subject to tax increment.
             301          Section 5. Repealer.
             302          This bill repeals:
             303          Section 19-6-504 , Assurance of sufficient revenue to pay bonds.

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