1     
COMMUNITY DEVELOPMENT AND RENEWAL AGENCIES

2     
ACT REVISIONS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Wayne A. Harper

6     
House Sponsor: Stephen G. Handy

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to community development and renewal agencies.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     beginning May 10, 2016:
15               •     provides a process for a community to create a community reinvestment agency;
16               •     allows an agency to create a community reinvestment project area; and
17               •     prohibits an agency from creating an urban renewal project area, an economic
18     development project area, or a community development project area;
19          ▸     amends the required contents of an agency's annual report;
20          ▸     for an agency that creates a community reinvestment project area:
21               •     authorizes an agency to fund a community reinvestment project area with tax
22     increment or sales and use tax revenue that is subject to an interlocal agreement;
23               •     requires the agency to conduct a blight study, make a blight determination, and
24     create a taxing entity committee if the agency plans to conduct certain activities
25     within a community reinvestment area, including eminent domain;
26               •     prohibits an agency from adopting a proposed community reinvestment project
27     area plan if 51% of the property owners within the proposed community

28     reinvestment project area object to the plan; and
29               •     requires the agency to adopt a community reinvestment project area budget;
30          ▸     clarifies how a project area's incremental value is factored into the new growth
31     calculation; and
32          ▸     makes technical and conforming changes.
33     Money Appropriated in this Bill:
34          None
35     Other Special Clauses:
36          None
37     Utah Code Sections Affected:
38     AMENDS:
39          10-1-203, as last amended by Laws of Utah 2014, Chapter 189
40          10-3-1303, as last amended by Laws of Utah 2011, Chapter 40
41          10-9a-508, as last amended by Laws of Utah 2013, Chapter 309
42          11-25-2, as last amended by Laws of Utah 2006, Chapter 359
43          11-25-3, as last amended by Laws of Utah 2010, Chapter 279
44          11-27-2, as last amended by Laws of Utah 2010, Chapter 279
45          11-31-2, as last amended by Laws of Utah 2010, Chapter 378
46          11-32-2, as last amended by Laws of Utah 2008, Chapter 360
47          11-34-1, as last amended by Laws of Utah 2010, Chapter 378
48          11-49-102, as enacted by Laws of Utah 2012, Chapter 202
49          11-50-102, as enacted by Laws of Utah 2013, Chapter 367
50          11-52-102, as enacted by Laws of Utah 2013, Chapter 347
51          14-1-18, as last amended by Laws of Utah 2012, Chapter 347
52          15-7-2, as last amended by Laws of Utah 2007, Chapter 329
53          17C-1-101, as last amended by Laws of Utah 2010, Chapter 279
54          17C-1-102, as last amended by Laws of Utah 2015, Chapter 397
55          17C-1-103, as renumbered and amended by Laws of Utah 2006, Chapter 359
56          17C-1-202, as renumbered and amended by Laws of Utah 2006, Chapter 359
57          17C-1-203, as last amended by Laws of Utah 2008, Chapter 125
58          17C-1-204, as last amended by Laws of Utah 2012, Chapter 212

59          17C-1-205, as renumbered and amended by Laws of Utah 2006, Chapter 359
60          17C-1-207, as last amended by Laws of Utah 2012, Chapter 235
61          17C-1-208, as renumbered and amended by Laws of Utah 2006, Chapter 359
62          17C-1-302, as renumbered and amended by Laws of Utah 2006, Chapter 359
63          17C-1-402, as last amended by Laws of Utah 2013, Chapter 80
64          17C-1-403, as last amended by Laws of Utah 2013, Chapter 80
65          17C-1-404, as renumbered and amended by Laws of Utah 2006, Chapter 359
66          17C-1-405, as last amended by Laws of Utah 2009, Chapter 387
67          17C-1-406, as enacted by Laws of Utah 2006, Chapter 359
68          17C-1-407, as last amended by Laws of Utah 2013, Chapter 80
69          17C-1-408, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
70          17C-1-409, as last amended by Laws of Utah 2011, Chapter 43
71          17C-1-410, as last amended by Laws of Utah 2007, Chapter 364
72          17C-1-411, as last amended by Laws of Utah 2009, Chapter 387
73          17C-1-412, as last amended by Laws of Utah 2012, Chapter 212
74          17C-1-413, as renumbered and amended by Laws of Utah 2006, Chapter 359
75          17C-1-502, as renumbered and amended by Laws of Utah 2006, Chapter 359
76          17C-1-504, as renumbered and amended by Laws of Utah 2006, Chapter 359
77          17C-1-505, as renumbered and amended by Laws of Utah 2006, Chapter 359
78          17C-1-506, as renumbered and amended by Laws of Utah 2006, Chapter 359
79          17C-1-507, as renumbered and amended by Laws of Utah 2006, Chapter 359
80          17C-1-508, as renumbered and amended by Laws of Utah 2006, Chapter 359
81          17C-1-602, as renumbered and amended by Laws of Utah 2006, Chapter 359
82          17C-1-603, as last amended by Laws of Utah 2011, Chapter 43
83          17C-1-605, as renumbered and amended by Laws of Utah 2006, Chapter 359
84          17C-1-606, as renumbered and amended by Laws of Utah 2006, Chapter 359
85          17C-1-607, as enacted by Laws of Utah 2006, Chapter 359
86          17C-2-102, as last amended by Laws of Utah 2008, Chapter 125
87          17C-2-103, as last amended by Laws of Utah 2006, Chapters 254, 292 and renumbered
88     and amended by Laws of Utah 2006, Chapter 359
89          17C-2-105, as renumbered and amended by Laws of Utah 2006, Chapter 359

90          17C-2-106, as last amended by Laws of Utah 2007, Chapter 364
91          17C-2-108, as last amended by Laws of Utah 2010, Chapter 279
92          17C-2-109, as renumbered and amended by Laws of Utah 2006, Chapter 359
93          17C-2-110, as last amended by Laws of Utah 2010, Chapter 279
94          17C-2-201, as last amended by Laws of Utah 2013, Chapter 80
95          17C-2-203, as renumbered and amended by Laws of Utah 2006, Chapter 359
96          17C-2-204, as renumbered and amended by Laws of Utah 2006, Chapter 359
97          17C-2-206, as last amended by Laws of Utah 2011, Chapter 43
98          17C-2-207, as enacted by Laws of Utah 2011, Chapter 43
99          17C-2-303, as last amended by Laws of Utah 2011, Chapter 43
100          17C-3-102, as enacted by Laws of Utah 2006, Chapter 359
101          17C-3-103, as enacted by Laws of Utah 2006, Chapter 359
102          17C-3-105, as enacted by Laws of Utah 2006, Chapter 359
103          17C-3-107, as last amended by Laws of Utah 2010, Chapter 279
104          17C-3-108, as enacted by Laws of Utah 2006, Chapter 359
105          17C-3-109, as last amended by Laws of Utah 2010, Chapter 279
106          17C-3-201, as last amended by Laws of Utah 2013, Chapter 80
107          17C-3-203, as last amended by Laws of Utah 2009, Chapter 387
108          17C-3-205, as last amended by Laws of Utah 2011, Chapter 43
109          17C-3-206, as enacted by Laws of Utah 2011, Chapter 43
110          17C-4-102, as enacted by Laws of Utah 2006, Chapter 359
111          17C-4-103, as enacted by Laws of Utah 2006, Chapter 359
112          17C-4-104, as enacted by Laws of Utah 2006, Chapter 359
113          17C-4-106, as last amended by Laws of Utah 2009, Chapter 388
114          17C-4-107, as enacted by Laws of Utah 2006, Chapter 359
115          17C-4-108, as last amended by Laws of Utah 2015, Chapter 302
116          17C-4-109, as enacted by Laws of Utah 2015, Chapter 302
117          17C-4-201, as last amended by Laws of Utah 2010, Chapter 279
118          17C-4-202, as last amended by Laws of Utah 2014, Chapter 189
119          17C-4-203, as last amended by Laws of Utah 2009, Chapter 387
120          17C-4-204, as last amended by Laws of Utah 2011, Chapter 43

121          20A-7-613, as last amended by Laws of Utah 2015, Chapter 258
122          35A-8-504, as last amended by Laws of Utah 2012, Chapter 347 and renumbered and
123     amended by Laws of Utah 2012, Chapter 212
124          38-1b-102, as enacted by Laws of Utah 2012, Chapter 278
125          53-3-207, as last amended by Laws of Utah 2015, Chapter 412
126          53A-16-106, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
127          53A-16-113, as last amended by Laws of Utah 2013, Chapter 287
128          53A-17a-133, as last amended by Laws of Utah 2015, Chapter 287
129          53A-17a-164, as last amended by Laws of Utah 2013, Chapters 178 and 313
130          53A-19-105, as last amended by Laws of Utah 2009, Chapter 204
131          59-2-913, as last amended by Laws of Utah 2014, Chapter 279
132          59-2-924, as last amended by Laws of Utah 2014, Chapter 270
133          59-2-924.2, as last amended by Laws of Utah 2015, Chapter 224
134          59-2-924.3, as last amended by Laws of Utah 2011, Chapter 371
135          59-7-614.2, as last amended by Laws of Utah 2015, Chapter 283
136          59-12-603, as last amended by Laws of Utah 2011, Chapter 309
137          63G-7-102, as renumbered and amended by Laws of Utah 2008, Chapter 382
138          63G-9-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
139          63I-1-259, as last amended by Laws of Utah 2015, Chapters 224, 275, and 467
140          63N-2-103, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
141     amended by Laws of Utah 2015, Chapter 283 and last amended by Coordination
142     Clause, Laws of Utah 2015, Chapter 344
143          63N-2-104, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
144     amended by Laws of Utah 2015, Chapter 283
145          63N-2-105, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
146     amended by Laws of Utah 2015, Chapter 283
147          63N-2-107, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
148     amended by Laws of Utah 2015, Chapter 283
149          63N-2-108, as renumbered and amended by Laws of Utah 2015, Chapter 283
150          63N-2-502, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
151     amended by Laws of Utah 2015, Chapter 283

152          63N-2-505, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
153     amended by Laws of Utah 2015, Chapter 283
154          63N-2-507, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
155     amended by Laws of Utah 2015, Chapter 283
156          63N-2-508, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
157     amended by Laws of Utah 2015, Chapter 283
158          67-1a-6.5, as last amended by Laws of Utah 2013, Chapters 42 and 371
159          72-1-208, as last amended by Laws of Utah 2010, Chapter 279
160     ENACTS:
161          17C-1-102.5, Utah Code Annotated 1953
162          17C-1-201.1, Utah Code Annotated 1953
163          17C-1-209, Utah Code Annotated 1953
164          17C-1-301.1, Utah Code Annotated 1953
165          17C-1-401.1, Utah Code Annotated 1953
166          17C-1-501.1, Utah Code Annotated 1953
167          17C-1-601.1, Utah Code Annotated 1953
168          17C-1-701.1, Utah Code Annotated 1953
169          17C-1-702, Utah Code Annotated 1953
170          17C-1-801, Utah Code Annotated 1953
171          17C-1-901, Utah Code Annotated 1953
172          17C-2-101.1, Utah Code Annotated 1953
173          17C-2-101.2, Utah Code Annotated 1953
174          17C-3-101.1, Utah Code Annotated 1953
175          17C-3-101.2, Utah Code Annotated 1953
176          17C-4-101.1, Utah Code Annotated 1953
177          17C-4-101.2, Utah Code Annotated 1953
178          17C-5-101, Utah Code Annotated 1953
179          17C-5-102, Utah Code Annotated 1953
180          17C-5-103, Utah Code Annotated 1953
181          17C-5-104, Utah Code Annotated 1953
182          17C-5-105, Utah Code Annotated 1953

183          17C-5-106, Utah Code Annotated 1953
184          17C-5-107, Utah Code Annotated 1953
185          17C-5-108, Utah Code Annotated 1953
186          17C-5-109, Utah Code Annotated 1953
187          17C-5-110, Utah Code Annotated 1953
188          17C-5-111, Utah Code Annotated 1953
189          17C-5-112, Utah Code Annotated 1953
190          17C-5-113, Utah Code Annotated 1953
191          17C-5-201, Utah Code Annotated 1953
192          17C-5-202, Utah Code Annotated 1953
193          17C-5-203, Utah Code Annotated 1953
194          17C-5-204, Utah Code Annotated 1953
195          17C-5-205, Utah Code Annotated 1953
196          17C-5-206, Utah Code Annotated 1953
197          17C-5-301, Utah Code Annotated 1953
198          17C-5-302, Utah Code Annotated 1953
199          17C-5-303, Utah Code Annotated 1953
200          17C-5-304, Utah Code Annotated 1953
201          17C-5-305, Utah Code Annotated 1953
202          17C-5-306, Utah Code Annotated 1953
203          17C-5-307, Utah Code Annotated 1953
204          17C-5-401, Utah Code Annotated 1953
205          17C-5-402, Utah Code Annotated 1953
206          17C-5-403, Utah Code Annotated 1953
207          17C-5-404, Utah Code Annotated 1953
208          17C-5-405, Utah Code Annotated 1953
209          17C-5-406, Utah Code Annotated 1953
210     RENUMBERS AND AMENDS:
211          17C-1-201.5, (Renumbered from 17C-1-201, as last amended by Laws of Utah 2012,
212     Chapter 235)
213          17C-1-301.5, (Renumbered from 17C-1-301, as renumbered and amended by Laws of

214     Utah 2006, Chapter 359)
215          17C-1-401.5, (Renumbered from 17C-1-401, as last amended by Laws of Utah 2012,
216     Chapter 235)
217          17C-1-501.5, (Renumbered from 17C-1-501, as renumbered and amended by Laws of
218     Utah 2006, Chapter 359)
219          17C-1-601.5, (Renumbered from 17C-1-601, as last amended by Laws of Utah 2010,
220     Chapter 90)
221          17C-1-701.5, (Renumbered from 17C-1-701, as last amended by Laws of Utah 2009,
222     Chapter 350)
223          17C-1-802, (Renumbered from 17C-2-401, as renumbered and amended by Laws of
224     Utah 2006, Chapter 359)
225          17C-1-803, (Renumbered from 17C-2-402, as renumbered and amended by Laws of
226     Utah 2006, Chapter 359)
227          17C-1-804, (Renumbered from 17C-2-403, as last amended by Laws of Utah 2010,
228     Chapter 90)
229          17C-1-805, (Renumbered from 17C-2-501, as renumbered and amended by Laws of
230     Utah 2006, Chapter 359)
231          17C-1-806, (Renumbered from 17C-2-502, as last amended by Laws of Utah 2010,
232     Chapter 279)
233          17C-1-807, (Renumbered from 17C-2-503, as last amended by Laws of Utah 2007,
234     Chapter 379)
235          17C-1-808, (Renumbered from 17C-2-504, as renumbered and amended by Laws of
236     Utah 2006, Chapter 359)
237          17C-1-809, (Renumbered from 17C-2-505, as renumbered and amended by Laws of
238     Utah 2006, Chapter 359)
239          17C-1-902, (Renumbered from 17C-1-206, as last amended by Laws of Utah 2007,
240     Chapter 379)
241          17C-1-903, (Renumbered from 17C-2-602, as last amended by Laws of Utah 2008,
242     Chapter 382)
243          17C-1-904, (Renumbered from 17C-2-601, as last amended by Laws of Utah 2012,
244     Chapter 235)

245          17C-1-905, (Renumbered from 17C-2-603, as enacted by Laws of Utah 2007, Chapter
246     379)
247          17C-2-101.5, (Renumbered from 17C-2-101, as renumbered and amended by Laws of
248     Utah 2006, Chapter 359)
249          17C-3-101.5, (Renumbered from 17C-3-101, as enacted by Laws of Utah 2006,
250     Chapter 359)
251          17C-4-101.5, (Renumbered from 17C-4-101, as enacted by Laws of Utah 2006,
252     Chapter 359)
253     REPEALS:
254          17C-1-303, as last amended by Laws of Utah 2010, Chapter 279
255          17C-3-301, as enacted by Laws of Utah 2006, Chapter 359
256          17C-3-302, as enacted by Laws of Utah 2006, Chapter 359
257          17C-3-303, as last amended by Laws of Utah 2009, Chapter 388
258          17C-3-401, as enacted by Laws of Utah 2006, Chapter 359
259          17C-3-402, as last amended by Laws of Utah 2010, Chapter 279
260          17C-3-403, as enacted by Laws of Utah 2006, Chapter 359
261          17C-3-404, as enacted by Laws of Utah 2006, Chapter 359
262          17C-4-301, as enacted by Laws of Utah 2006, Chapter 359
263          17C-4-302, as last amended by Laws of Utah 2010, Chapter 90
264          17C-4-401, as enacted by Laws of Utah 2006, Chapter 359
265          17C-4-402, as last amended by Laws of Utah 2010, Chapter 279
266     

267     Be it enacted by the Legislature of the state of Utah:
268          Section 1. Section 10-1-203 is amended to read:
269          10-1-203. License fees and taxes -- Application information to be transmitted to
270     the county assessor.
271          (1) As used in this section:
272          (a) "Business" means any enterprise carried on for the purpose of gain or economic
273     profit, except that the acts of employees rendering services to employers are not included in
274     this definition.
275          (b) "Telecommunications provider" [is as] means the same as that term is defined in

276     Section 10-1-402.
277          (c) "Telecommunications tax or fee" [is as] means the same as that term is defined in
278     Section 10-1-402.
279          (2) Except as provided in Subsections (3) through (5), the legislative body of a
280     municipality may license for the purpose of regulation and revenue any business within the
281     limits of the municipality and may regulate that business by ordinance.
282          (3) (a) The legislative body of a municipality may raise revenue by levying and
283     collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
284     and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
285     energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
286     Energy Sales and Use Tax Act.
287          (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
288     in Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
289          (ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1,
290     1997, or a future franchise shall remain in full force and effect.
291          (c) A municipality that collects a contractual franchise fee pursuant to a franchise
292     agreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July
293     1, 1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
294          (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
295     defined in Subsection 10-1-303(6) between a municipality and an energy supplier may contain
296     a provision that:
297          (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
298     otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
299          (B) imposes the contractual franchise fee on or after the day on which Part 3,
300     Municipal Energy Sales and Use Tax Act is:
301          (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
302     is reduced; and
303          (II) is not superseded by a law imposing a substantially equivalent tax.
304          (ii) A municipality may not charge a contractual franchise fee under the provisions
305     permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
306     fee or a tax on all energy suppliers.

307          (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
308     municipality may raise revenue by levying and providing for the collection of a municipal
309     telecommunications license tax as provided in Part 4, Municipal Telecommunications License
310     Tax Act.
311          (b) A municipality may not levy or collect a telecommunications tax or fee on a
312     telecommunications provider except as provided in Part 4, Municipal Telecommunications
313     License Tax Act.
314          (5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
315     levying and collecting a license fee or tax on:
316          (A) a parking service business in an amount that is less than or equal to:
317          (I) $1 per vehicle that parks at the parking service business; or
318          (II) 2% of the gross receipts of the parking service business;
319          (B) a public assembly or other related facility in an amount that is less than or equal to
320     $5 per ticket purchased from the public assembly or other related facility; and
321          (C) subject to the limitations of Subsections (5)(c) and (d):
322          (I) a business that causes disproportionate costs of municipal services; or
323          (II) a purchaser from a business for which the municipality provides an enhanced level
324     of municipal services.
325          (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
326     levy or collect a license fee or tax on a public assembly or other related facility owned and
327     operated by another political subdivision other than a community [development and renewal]
328     reinvestment agency without the written consent of the other political subdivision.
329          (b) As used in this Subsection (5):
330          (i) "Municipal services" includes:
331          (A) public utilities; and
332          (B) services for:
333          (I) police;
334          (II) fire;
335          (III) storm water runoff;
336          (IV) traffic control;
337          (V) parking;

338          (VI) transportation;
339          (VII) beautification; or
340          (VIII) snow removal.
341          (ii) "Parking service business" means a business:
342          (A) that primarily provides off-street parking services for a public facility that is
343     wholly or partially funded by public money;
344          (B) that provides parking for one or more vehicles; and
345          (C) that charges a fee for parking.
346          (iii) "Public assembly or other related facility" means an assembly facility that:
347          (A) is wholly or partially funded by public money;
348          (B) is operated by a business; and
349          (C) requires a person attending an event at the assembly facility to purchase a ticket.
350          (c) (i) Before the legislative body of a municipality imposes a license fee on a business
351     that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
352     legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
353     under Subsection (5)(a)(i)(C)(I):
354          (A) the costs that constitute disproportionate costs; and
355          (B) the amounts that are reasonably related to the costs of the municipal services
356     provided by the municipality.
357          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
358     the costs of the municipal services provided by the municipality.
359          (d) (i) Before the legislative body of a municipality imposes a license fee on a
360     purchaser from a business for which it provides an enhanced level of municipal services under
361     Subsection (5)(a)(i)(C)(II), the legislative body of the municipality shall adopt an ordinance
362     defining for purposes of the fee under Subsection (5)(a)(i)(C)(II):
363          (A) the level of municipal services that constitutes the basic level of municipal services
364     in the municipality; and
365          (B) the amounts that are reasonably related to the costs of providing an enhanced level
366     of municipal services in the municipality.
367          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
368     the costs of providing an enhanced level of the municipal services.

369          (6) All license fees and taxes shall be uniform in respect to the class upon which they
370     are imposed.
371          (7) The municipality shall transmit the information from each approved business
372     license application to the county assessor within 60 days following the approval of the
373     application.
374          (8) If challenged in court, an ordinance enacted by a municipality before January 1,
375     1994, imposing a business license fee on rental dwellings under this section shall be upheld
376     unless the business license fee is found to impose an unreasonable burden on the fee payer.
377          Section 2. Section 10-3-1303 is amended to read:
378          10-3-1303. Definitions.
379          As used in this part:
380          (1) "Appointed officer" means any person appointed to any statutory office or position
381     or any other person appointed to any position of employment with a city or with a community
382     [development and renewal] reinvestment agency under Title 17C, Limited Purpose Local
383     Government Entities - Community [Development and Renewal Agencies] Reinvestment
384     Agency Act. Appointed officers include, but are not limited to, persons serving on special,
385     regular, or full-time committees, agencies, or boards whether or not such persons are
386     compensated for their services. The use of the word "officer" in this part is not intended to
387     make appointed persons or employees "officers" of the municipality.
388          (2) "Assist" means to act, or offer or agree to act, in such a way as to help, represent,
389     aid, advise, furnish information to, or otherwise provide assistance to a person or business
390     entity, believing that such action is of help, aid, advice, or assistance to such person or business
391     entity and with the intent to assist such person or business entity.
392          (3) "Business entity" means a sole proprietorship, partnership, association, joint
393     venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
394     a business.
395          (4) "Compensation" means anything of economic value, however designated, which is
396     paid, loaned, granted, given, donated, or transferred to any person or business entity by anyone
397     other than the governmental employer for or in consideration of personal services, materials,
398     property, or any other thing whatsoever.
399          (5) "Elected officer" means a person:

400          (a) elected or appointed to the office of mayor, commissioner, or council member; or
401          (b) who is considered to be elected to the office of mayor, commissioner, or council
402     member by a municipal legislative body in accordance with Section 20A-1-206.
403          (6) "Improper disclosure" means disclosure of private, controlled, or protected
404     information to any person who does not have both the right and the need to receive the
405     information.
406          (7) "Municipal employee" means a person who is not an elected or appointed officer
407     who is employed on a full- or part-time basis by a municipality or by a community
408     [development and renewal] reinvestment agency under Title 17C, Limited Purpose Local
409     Government Entities - Community [Development and Renewal Agencies] Reinvestment
410     Agency Act.
411          (8) "Private, controlled, or protected information" means information classified as
412     private, controlled, or protected under Title 63G, Chapter 2, Government Records Access and
413     Management Act, or other applicable provision of law.
414          (9) "Substantial interest" means the ownership, either legally or equitably, by an
415     individual, the individual's spouse, or the individual's minor children, of at least 10% of the
416     outstanding shares of a corporation or 10% interest in any other business entity.
417          Section 3. Section 10-9a-508 is amended to read:
418          10-9a-508. Exactions -- Exaction for water interest -- Requirement to offer to
419     original owner property acquired by exaction.
420          (1) A municipality may impose an exaction or exactions on development proposed in a
421     land use application, including, subject to Subsection (3), an exaction for a water interest, if:
422          (a) an essential link exists between a legitimate governmental interest and each
423     exaction; and
424          (b) each exaction is roughly proportionate, both in nature and extent, to the impact of
425     the proposed development.
426          (2) If a land use authority imposes an exaction for another governmental entity:
427          (a) the governmental entity shall request the exaction; and
428          (b) the land use authority shall transfer the exaction to the governmental entity for
429     which it was exacted.
430          (3) (a) (i) A municipality shall base any exaction for a water interest on the culinary

431     water authority's established calculations of projected water interest requirements.
432          (ii) Upon an applicant's request, the culinary water authority shall provide the applicant
433     with the basis for the culinary water authority's calculations under Subsection (3)(a)(i) on
434     which an exaction for a water interest is based.
435          (b) A municipality may not impose an exaction for a water interest if the culinary water
436     authority's existing available water interests exceed the water interests needed to meet the
437     reasonable future water requirement of the public, as determined under Subsection
438     73-1-4(2)(f).
439          (4) (a) If a municipality plans to dispose of surplus real property that was acquired
440     under this section and has been owned by the municipality for less than 15 years, the
441     municipality shall first offer to reconvey the property, without receiving additional
442     consideration, to the person who granted the property to the municipality.
443          (b) A person to whom a municipality offers to reconvey property under Subsection
444     (4)(a) has 90 days to accept or reject the municipality's offer.
445          (c) If a person to whom a municipality offers to reconvey property declines the offer,
446     the municipality may offer the property for sale.
447          (d) Subsection (4)(a) does not apply to the disposal of property acquired by exaction by
448     a community [development and renewal] reinvestment agency.
449          Section 4. Section 11-25-2 is amended to read:
450          11-25-2. Legislative findings -- Liberal construction.
451          The Legislature finds and declares that it is necessary for the welfare of the state and its
452     inhabitants that community [development and renewal] reinvestment agencies be authorized
453     within cities, towns or counties, or cities or towns and counties to make long-term, low-interest
454     loans to finance residential rehabilitation in selected residential areas in order to encourage the
455     upgrading of property in those areas. Unless such agencies provide some form of assistance to
456     finance residential rehabilitation, many residential areas will deteriorate at an accelerated pace.
457     This act shall be liberally construed to effect its purposes.
458          Section 5. Section 11-25-3 is amended to read:
459          11-25-3. Definitions.
460          As used in this chapter:
461          [(4)] (1) "Agency" means a community [development and renewal] reinvestment

462     agency functioning pursuant to Title 17C, Limited Purpose Local Government Entities -
463     Community [Development and Renewal Agencies] Reinvestment Agency Act.
464          [(1)] (2) "Bonds" mean any bonds, notes, interim certificates, debentures, or other
465     obligations issued by an agency pursuant to this part and which are payable exclusively from
466     the revenues, as defined in Subsection (9), and from any other funds specified in this part upon
467     which the bonds may be made a charge and from which they are payable.
468          [(2)] (3) (a) "Citizen participation" means action by the agency to provide persons who
469     will be affected by residential rehabilitation financed under the provisions of this part with
470     opportunities to be involved in planning and carrying out the residential rehabilitation program.
471     "Citizen participation" shall include, but not be limited to, all of the following:
472          (i) Holding a public meeting prior to considering selection of the area for designation.
473          (ii) Consultation with representatives of owners of property in, and residents of, a
474     residential rehabilitation area, in developing plans for public improvements and
475     implementation of the residential rehabilitation program.
476          (iii) Dissemination of information relating to the time and location of meetings,
477     boundaries of the proposed residential rehabilitation area, and a general description of the
478     proposed residential rehabilitation program.
479          (b) (i) Public meetings and consultations described in Subsection (2)(a) shall be
480     conducted by an official designated by the agency.
481          (ii) Public meetings shall be held at times and places convenient to residents and
482     property owners.
483          [(3)] (4) "Financing" means the lending of money or any other thing of value for the
484     purpose of residential rehabilitation.
485          (5) "Participating party" means any person, company, corporation, partnership, firm,
486     agency, political subdivision of the state, or other entity or group of entities requiring financing
487     for residential rehabilitation pursuant to the provisions of this part. No elective officer of the
488     state or any of its political subdivisions shall be eligible to be a participating party under the
489     provision of this part.
490          [(8)] (6) "Rehabilitation standards" mean the applicable local or state standards for the
491     rehabilitation of buildings located in residential rehabilitation areas, including any higher
492     standards adopted by the agency as part of its residential rehabilitation financing program.

493          (7) "Residence" means a residential structure in residential rehabilitation areas. It also
494     means a commercial structure which, in the judgment of the agency, is an integral part of a
495     residential neighborhood.
496          [(6)] (8) "Residential rehabilitation" means the construction, reconstruction,
497     renovation, replacement, extension, repair, betterment, equipping, developing, embellishing, or
498     otherwise improving residences consistent with standards of strength, effectiveness, fire
499     resistance, durability, and safety, so that the structures are satisfactory and safe to occupy for
500     residential purposes and are not conducive to ill health, transmission of disease, infant
501     mortality, juvenile delinquency, or crime because of any one or more of the following factors:
502          (a) defective design and character of physical construction;
503          (b) faulty interior arrangement and exterior spacing;
504          (c) high density of population and overcrowding;
505          (d) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
506     facilities;
507          (e) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
508     and
509          (f) economic dislocation, deterioration, or disuse, resulting from faulty planning.
510          [(10)] (9) "Residential rehabilitation area" means the geographical area designated by
511     the agency as one for inclusion in a comprehensive residential rehabilitation financing program
512     pursuant to the provisions of this chapter.
513          [(9)] (10) "Revenues" mean all amounts received as repayment of principal, interest,
514     and all other charges received for, and all other income and receipts derived by, the agency
515     from the financing of residential rehabilitation, including money deposited in a sinking,
516     redemption, or reserve fund or other fund to secure the bonds or to provide for the payment of
517     the principal of, or interest on, the bonds and such other money as the legislative body may, in
518     its discretion, make available therefor.
519          Section 6. Section 11-27-2 is amended to read:
520          11-27-2. Definitions.
521          As used in this chapter:
522          (1) "Advance refunding bonds" means refunding bonds issued for the purpose of
523     refunding outstanding bonds in advance of their maturity.

524          (2) "Assessments" means a special tax levied against property within a special
525     improvement district to pay all or a portion of the costs of making improvements in the district.
526          (3) "Bond" means any revenue bond, general obligation bond, tax increment bond,
527     special improvement bond, local building authority bond, or refunding bond.
528          (4) "General obligation bond" means any bond, note, warrant, certificate of
529     indebtedness, or other obligation of a public body payable in whole or in part from revenues
530     derived from ad valorem taxes and that constitutes an indebtedness within the meaning of any
531     applicable constitutional or statutory debt limitation.
532          (5) "Governing body" means the council, commission, county legislative body, board
533     of directors, board of trustees, board of education, board of regents, or other legislative body of
534     a public body designated in this chapter that is vested with the legislative powers of the public
535     body, and, with respect to the state, the State Bonding Commission created by Section
536     63B-1-201.
537          (6) "Government obligations" means:
538          (a) direct obligations of the United States of America, or other securities, the principal
539     of and interest on which are unconditionally guaranteed by the United States of America; or
540          (b) obligations of any state, territory, or possession of the United States, or of any of
541     the political subdivisions of any state, territory, or possession of the United States, or of the
542     District of Columbia described in Section 103(a), Internal Revenue Code of 1986.
543          (7) "Issuer" means the public body issuing any bond or bonds.
544          (8) "Public body" means the state or any agency, authority, instrumentality, or
545     institution of the state, or any municipal or quasi-municipal corporation, political subdivision,
546     agency, school district, local district, special service district, or other governmental entity now
547     or hereafter existing under the laws of the state.
548          (9) "Refunding bonds" means bonds issued under the authority of this chapter for the
549     purpose of refunding outstanding bonds.
550          (10) "Resolution" means a resolution of the governing body of a public body taking
551     formal action under this chapter.
552          (11) "Revenue bond" means any bond, note, warrant, certificate of indebtedness, or
553     other obligation for the payment of money issued by a public body or any predecessor of any
554     public body and that is payable from designated revenues not derived from ad valorem taxes or

555     from a special fund composed of revenues not derived from ad valorem taxes, but excluding all
556     of the following:
557          (a) any obligation constituting an indebtedness within the meaning of any applicable
558     constitutional or statutory debt limitation;
559          (b) any obligation issued in anticipation of the collection of taxes, where the entire
560     issue matures not later than one year from the date of the issue; and
561          (c) any special improvement bond.
562          (12) "Special improvement bond" means any bond, note, warrant, certificate of
563     indebtedness, or other obligation of a public body or any predecessor of any public body that is
564     payable from assessments levied on benefitted property and from any special improvement
565     guaranty fund.
566          (13) "Special improvement guaranty fund" means any special improvement guaranty
567     fund established under Title 10, Chapter 6, Uniform Fiscal Procedures Act for Utah Cities;
568     Title 11, Chapter 42, Assessment Area Act; or any predecessor or similar statute.
569          (14) "Tax increment bond" means any bond, note, warrant, certificate of indebtedness,
570     or other obligation of a public body issued under authority of Title 17C, Limited Purpose Local
571     Government Entities - Community [Development and Renewal Agencies] Reinvestment
572     Agency Act.
573          Section 7. Section 11-31-2 is amended to read:
574          11-31-2. Definitions.
575          As used in this chapter:
576          (1) "Bonds" means any evidence or contract of indebtedness that is issued or
577     authorized by a public body, including, without limitation, bonds, refunding bonds, advance
578     refunding bonds, bond anticipation notes, tax anticipation notes, notes, certificates of
579     indebtedness, warrants, commercial paper, contracts, and leases, whether they are general
580     obligations of the issuing public body or are payable solely from a specified source, including
581     annual appropriations by the public body.
582          (2) "Legislative body" means, with respect to any action to be taken by a public body
583     with respect to bonds, the board, commission, council, agency, or other similar body authorized
584     by law to take legislative action on behalf of the public body, and in the case of the state, the
585     Legislature, the state treasurer, the commission created under Section 63B-1-201, and any other

586     entities the Legislature designates.
587          (3) "Public body" means the state and any public department, public agency, or other
588     public entity existing under the laws of the state, including, without limitation, any agency,
589     authority, instrumentality, or institution of the state, and any county, city, town, municipal
590     corporation, quasi-municipal corporation, state university or college, school district, special
591     service district, local district, separate legal or administrative entity created under the Interlocal
592     Cooperation Act or other joint agreement entity, community [development and renewal]
593     reinvestment agency, and any other political subdivision, public authority, public agency, or
594     public trust existing under the laws of the state.
595          Section 8. Section 11-32-2 is amended to read:
596          11-32-2. Definitions.
597          As used in this chapter:
598          (1) "Assignment agreement" means the agreement, security agreement, indenture, or
599     other documentation by which the county transfers the delinquent tax receivables to the
600     authority in consideration of the amounts paid by the authority under the assignment
601     agreement, as provided in this chapter.
602          (2) "Bonds" means any bonds, notes, or other evidence of indebtedness of the financing
603     authority issued under this chapter.
604          (3) "Delinquent tax receivables" means those ad valorem tangible property taxes levied
605     within any county, for any year, which remain unpaid and owing the participant members
606     within the county, as of January 15 of the following year, plus any interest and penalties
607     accruing or assessed to them.
608          (4) "Financing authority" or "authority" means a nonprofit corporation organized under
609     this chapter by a county on behalf of the participant members within the county as the
610     financing authority for the participant members solely for the purpose of financing the
611     assignment of the delinquent tax receivables of the participant members for which it was
612     created.
613          (5) "Governing body" means the council, commission, county legislative body, board
614     of education, board of trustees, or any other governing entity of a public body in which the
615     legislative powers of the public body are vested.
616          (6) "Participant members" means those public bodies, including the county, the

617     governing bodies of which approve the creation of an authority as provided in Section 11-32-3
618     and on whose behalf the authority acts.
619          (7) "Public body" means any city, town, county, school district, special service district,
620     local district, community [development and renewal] reinvestment agency, or any other entity
621     entitled to receive ad valorem property taxes, existing under the laws of the state.
622          Section 9. Section 11-34-1 is amended to read:
623          11-34-1. Definitions.
624          As used in this chapter:
625          (1) "Bonds" means any evidence or contract of indebtedness that is issued or
626     authorized by a public body, including, without limitation, bonds, refunding bonds, advance
627     refunding bonds, bond anticipation notes, tax anticipation notes, notes, certificates of
628     indebtedness, warrants, commercial paper, contracts, and leases, whether they are general
629     obligations of the issuing public body or are payable solely from a specified source, including
630     annual appropriations by the public body.
631          (2) "Public body" means the state and any public department, public agency, or other
632     public entity existing under the laws of the state, including, without limitation, any agency,
633     authority, instrumentality, or institution of the state, and any county, city, town, municipal
634     corporation, quasi-municipal corporation, state university or college, school district, special
635     service district, local district, separate legal or administrative entity created under the Interlocal
636     Cooperation Act or other joint agreement entity, community [development and renewal]
637     reinvestment agency, and any other political subdivision, public authority, public agency, or
638     public trust existing under the laws of this state.
639          Section 10. Section 11-49-102 is amended to read:
640          11-49-102. Definitions.
641          (1) "Commission" means the Political Subdivisions Ethics Review Commission
642     established in Section 11-49-201.
643          (2) "Complainant" means a person who files a complaint in accordance with Section
644     11-49-501.
645          (3) "Ethics violation" means a violation of:
646          (a) Title 10, Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act;
647          (b) Title 17, Chapter 16a, County Officers and Employees Disclosure Act; or

648          (c) Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
649          (4) "Local political subdivision ethics commission" means an ethics commission
650     established by a political subdivision within the political subdivision or with another political
651     subdivision by interlocal agreement in accordance with Section 11-49-103.
652          (5) "Political subdivision" means a county, municipality, school district, community
653     [development and renewal] reinvestment agency, local district, special service district, an entity
654     created by an interlocal agreement adopted under Title 11, Chapter 13, Interlocal Cooperation
655     Act, a local building authority, or any other governmental subdivision or public corporation.
656          (6) (a) "Political subdivision employee" means a person who is:
657          (i) (A) in a municipality, employed as a city manager or non-elected chief executive on
658     a full or part-time basis; or
659          (B) employed as the non-elected chief executive by a political subdivision other than a
660     municipality on a full or part-time basis; and
661          (ii) subject to:
662          (A) Title 10, Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act;
663          (B) Title 17, Chapter 16a, County Officers and Employees Disclosure Act; or
664          (C) Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
665          (b) "Political subdivision employee" does not include:
666          (i) a person who is a political subdivision officer;
667          (ii) an employee of a state entity; or
668          (iii) a legislative employee as defined in Section 67-16-3.
669          (7) "Political subdivision governing body" means:
670          (a) for a county, the county legislative body as defined in Section 68-3-12.5;
671          (b) for a municipality, the council of the city or town;
672          (c) for a school district, the local board of education described in Section 53A-3-101;
673          (d) for a community [development and renewal] reinvestment agency, the agency board
674     described in Section 17C-1-203;
675          (e) for a local district, the board of trustees described in Section 17B-1-301;
676          (f) for a special service district:
677          (i) the legislative body of the county, city, or town that established the special service
678     district, if no administrative control board has been appointed under Section 17D-1-301; or

679          (ii) the administrative control board of the special service district, if an administrative
680     control board has been appointed under Section 17D-1-301;
681          (g) for an entity created by an interlocal agreement, the governing body of an interlocal
682     entity, as defined in Section 11-13-103;
683          (h) for a local building authority, the governing body, as defined in Section 17D-2-102,
684     that creates the local building authority; or
685          (i) for any other governmental subdivision or public corporation, the board or other
686     body authorized to make executive and management decisions for the subdivision or public
687     corporation.
688          (8) (a) "Political subdivision officer" means a person elected in a political subdivision
689     who is subject to:
690          (i) Title 10, Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act;
691          (ii) Title 17, Chapter 16a, County Officers and Employees Disclosure Act; or
692          (iii) Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
693          (b) "Political subdivision officer" does not include:
694          (i) a person elected or appointed to a state entity;
695          (ii) the governor;
696          (iii) the lieutenant governor;
697          (iv) a member or member-elect of either house of the Legislature; or
698          (v) a member of Utah's congressional delegation.
699          (9) "Respondent" means a person who files a response in accordance with Section
700     11-49-604.
701          Section 11. Section 11-50-102 is amended to read:
702          11-50-102. Definitions.
703          As used in this chapter:
704          (1) "Annual financial report" means a comprehensive annual financial report or similar
705     financial report required by Section 51-2a-201.
706          (2) "Chief administrative officer" means the chief administrative officer designated in
707     accordance with Section 11-50-202.
708          (3) "Chief financial officer" means the chief financial officer designated in accordance
709     with Section 11-50-202.

710          (4) "Governing body" means:
711          (a) for a county, city, or town, the legislative body of the county, city, or town;
712          (b) for a local district, the board of trustees of the local district;
713          (c) for a school district, the local board of education; or
714          (d) for a special service district under Title 17D, Chapter 1, Special Service District
715     Act:
716          (i) the governing body of the county or municipality that created the special service
717     district, if no administrative control board has been established under Section 17D-1-301; or
718          (ii) the administrative control board, if one has been established under Section
719     17D-1-301.
720          (5) (a) "Political subdivision" means any county, city, town, school district, community
721     [development and renewal] reinvestment agency, special improvement or taxing district, local
722     district, special service district, an entity created by an interlocal agreement adopted under Title
723     11, Chapter 13, Interlocal Cooperation Act, or other governmental subdivision or public
724     corporation.
725          (b) Notwithstanding Subsection (5)(a), "political subdivision" does not mean a project
726     entity, as defined in Section 11-13-103.
727          Section 12. Section 11-52-102 is amended to read:
728          11-52-102. Definitions.
729          As used in this chapter:
730          (1) "Federal receipts" means the federal financial assistance, as defined in 31 U.S.C.
731     Sec. 7501, that is reported as part of a single audit.
732          (2) "Political subdivision" means:
733          (a) a county, as defined in Section 17-50-101;
734          (b) a municipality, as defined in Section 10-1-104;
735          (c) a local district, as defined in Section 17B-1-102;
736          (d) a special service district, as defined in Section 17D-1-102;
737          (e) an interlocal entity, as defined in Section 11-13-103;
738          (f) a community [development and renewal] reinvestment agency created under Title
739     17C, Limited Purpose Local Government Entities - Community [Development and Renewal
740     Agencies] Reinvestment Agency Act;

741          (g) a local building authority, as defined in Section 17D-2-102; or
742          (h) a conservation district, as defined in Section 17D-3-102.
743          (3) "Single audit" has the same meaning as defined in 31 U.S.C. Sec. 7501.
744          Section 13. Section 14-1-18 is amended to read:
745          14-1-18. Definitions -- Application of Procurement Code to payment and
746     performance bonds.
747          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
748     town, school district, local district, special service district, community [development and
749     renewal] reinvestment agency, public corporation, institution of higher education of the state,
750     public agency of any political subdivision, and, to the extent provided by law, any other entity
751     which expends public funds for construction.
752          (b) For purposes of applying Section 63G-6a-1103 to a political subdivision, "state"
753     includes "political subdivision."
754          (2) Notwithstanding any provision of Title 63G, Chapter 6a, Utah Procurement Code,
755     to the contrary, Section 63G-6a-1103 applies to all contracts for the construction, alteration, or
756     repair of any public building or public work of the state or a political subdivision of the state.
757          Section 14. Section 15-7-2 is amended to read:
758          15-7-2. Definitions.
759          As used in this chapter:
760          (1) "Authorized officer" means any individual required or permitted by any law or by
761     the issuing public entity to execute on behalf of the public entity, a certificated registered
762     public obligation or a writing relating to an uncertificated registered public obligation.
763          (2) "Certificated registered public obligation" means a registered public obligation
764     which is represented by an instrument.
765          (3) "Code" means the Internal Revenue Code of 1954.
766          (4) "Facsimile seal" means the reproduction by engraving, imprinting, stamping, or
767     other means of the seal of the issuer, official, or official body.
768          (5) "Facsimile signature" means the reproduction by engraving, imprinting, stamping,
769     or other means of a manual signature.
770          (6) "Financial intermediary" means a bank, broker, clearing corporation or other
771     person, or the nominee of any of them, which in the ordinary course of its business maintains

772     registered public obligation accounts for its customers.
773          (7) "Issuer" means a public entity which issues an obligation.
774          (8) "Obligation" means an agreement by a public entity to pay principal and any
775     interest on the obligation, whether in the form of a contract to repay borrowed money, a lease,
776     an installment purchase agreement, or otherwise, and includes a share, participation, or other
777     interest in any such agreement.
778          [(10)] (9) "Official" or "official body" means the person or group of persons that is
779     empowered to provide for the original issuance of an obligation of the issuer, by defining the
780     obligation and its terms, conditions, and other incidents, or to perform duties with respect to a
781     registered public obligation and any successor of such person or group of persons.
782          [(9)] (10) "Official actions" means the actions by statute, order, ordinance, resolution,
783     contract, or other authorized means by which the issuer provides for issuance of a registered
784     public obligation.
785          (11) "Public entity" means any entity, department, or agency which is empowered
786     under the laws of one or more states, territories, possessions of the United States or the District
787     of Columbia, including this state, to issue obligations any interest with respect to which may,
788     under any provision of law, be provided an exemption from the income tax referred to in the
789     Code. The term "public entity" includes, without limitation, this state, an entity deriving
790     powers from and acting pursuant to a state constitution or legislative act, a county, city, town, a
791     municipal corporation, a quasi-municipal corporation, a state university or college, a school
792     district, a special service district, a local district, a separate legal or administrative entity
793     created under the Interlocal Cooperation Act or other joint agreement entity, a community
794     [development and renewal] reinvestment agency, any other political subdivision, a public
795     authority or public agency, a public trust, a nonprofit corporation, or other organizations.
796          (12) "Registered public obligation" means an obligation issued by a public entity which
797     is issued pursuant to a system of registration.
798          (13) "System of registration" and its variants means a plan that provides:
799          (a) with respect to a certificated registered public obligation, that:
800          (i) the certificated registered public obligation specifies a person entitled to the
801     registered public obligation and the rights it represents; and
802          (ii) transfer of the certificated registered public obligation and the rights it represents

803     may be registered upon books maintained for that purpose by or on behalf of the issuer; and
804          (b) with respect to an uncertificated registered public obligation, that:
805          (i) books maintained by or on behalf of the issuer for the purpose of registration of the
806     transfer of a registered public obligation specify a person entitled to the registered public
807     obligation and the rights evidenced by it; and
808          (ii) transfer of the uncertificated registered public obligation and the rights evidenced
809     by it be registered upon such books.
810          (14) "Uncertificated registered public obligation" means a registered public obligation
811     which is not represented by an instrument.
812          Section 15. Section 17C-1-101 is amended to read:
813     
TITLE 17C. LIMITED PURPOSE LOCAL GOVERNMENT ENTITIES -

814     
COMMUNITY REINVESTMENT AGENCY ACT

815     
CHAPTER 1. AGENCY OPERATIONS

816     
Part 1. General Provisions

817          17C-1-101. Title.
818          (1) This title is known as the "Limited Purpose Local Government Entities -
819     Community [Development and Renewal Agencies] Reinvestment Agency Act."
820          (2) This chapter is known as "Agency Operations."
821          (3) This part is known as "General Provisions."
822          Section 16. Section 17C-1-102 is amended to read:
823          17C-1-102. Definitions.
824          As used in this title:
825          (1) "Active project area" means a project area that has not been dissolved in accordance
826     with Section 17C-1-702.
827          [(1)] (2) "Adjusted tax increment" means the percentage of tax increment, if less than
828     100%, that an agency is authorized to receive :
829          [(a) for tax increment under a pre-July 1, 1993, project area plan, tax increment under
830     Section 17C-1-403, excluding tax increment under Subsection 17C-1-403(3); and]
831          [(b) for tax increment under a post-June 30, 1993, project area plan, tax increment
832     under Section 17C-1-404, excluding tax increment under Section 17C-1-406.]
833          (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax

834     increment under Subsection 17C-1-403(3);
835          (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
836     increment under Section 17C-1-406;
837          (c) under a project area budget approved by a taxing entity committee; or
838          (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
839     tax increment.
840          [(2)] (3) "Affordable housing" means housing [to be] owned or occupied by [persons
841     and families of low or moderate income] a low or moderate income family, as determined by
842     resolution of the agency.
843          [(3)] (4) "Agency" or "community [development and renewal] reinvestment agency"
844     means a separate body corporate and politic, created under Section [17C-1-201] 17C-1-201.5
845     or as a redevelopment agency or community development and renewal agency under previous
846     law[,]:
847          (a) that is a political subdivision of the state[,];
848          (b) that is created to undertake or promote [urban renewal, economic development, or
849     community development, or any combination of them,] project area development as provided
850     in this title[,]; and
851          (c) whose geographic boundaries are coterminous with:
852          [(a)] (i) for an agency created by a county, the unincorporated area of the county; and
853          [(b)] (ii) for an agency created by a [city or town] municipality, the boundaries of the
854     [city or town] municipality.
855          (5) "Agency funds" means money that an agency collects or receives for the purpose of
856     implementing a project area plan, including:
857          (a) project area funds;
858          (b) income, proceeds, revenue, or property derived from or held in connection with the
859     agency's undertaking and implementation of project area development; or
860          (c) a contribution, loan, grant, or other financial assistance from any public or private
861     source.
862          [(4)] (6) "Annual income" [has the meaning as] means the same as that term is defined
863     [under] in regulations of the United States Department of Housing and Urban Development, 24
864     C.F.R. Sec. 5.609, as amended or as superseded by replacement regulations.

865          [(5)] (7) "Assessment roll" [has the meaning as] means the same as that term is defined
866     in Section 59-2-102.
867          [(6)] (8) "Base taxable value" means[:], unless otherwise adjusted in accordance with
868     provisions of this title, a property's taxable value as shown upon the assessment roll last
869     equalized during the base year.
870          [(a) unless otherwise designated by the taxing entity committee in accordance with
871     Subsection 17C-1-402(4)(b)(ix), for an urban renewal or economic development project area,
872     the taxable value of the property within a project area from which tax increment will be
873     collected, as shown upon the assessment roll last equalized before:]
874          [(i) for a pre-July 1, 1993, project area plan, the effective date of the project area plan;]
875          [(ii) for a post-June 30, 1993, project area plan:]
876          [(A) the date of the taxing entity committee's approval of the first project area budget;
877     or]
878          [(B) if no taxing entity committee approval is required for the project area budget, the
879     later of:]
880          [(I) the date the project area plan is adopted by the community legislative body; and]
881          [(II) the date the agency adopts the first project area budget;]
882          [(iii) for a project on an inactive industrial site, a year after the date on which the
883     inactive industrial site is sold for remediation and development; or]
884          [(iv) for a project on an inactive airport site, a year after the later of:]
885          [(A) the date on which the inactive airport site is sold for remediation and
886     development; and]
887          [(B) the date on which the airport that had been operated on the inactive airport site
888     ceased operations; and]
889          [(b) for a community development project area, the agreed value specified in a
890     resolution or interlocal agreement under Subsection 17C-4-201(2).]
891          (9) "Base year" means the year during which the assessment roll is last equalized:
892          (a) unless otherwise designated by a taxing entity committee in accordance with
893     provisions of this title:
894          (i) for a pre-July 1, 1993, urban renewal or economic development project area plan,
895     before the project area plan's effective date; or

896          (ii) for a post-June 30, 1993, urban renewal or economic development project area
897     plan, or a community reinvestment project area plan that is subject to a taxing entity
898     committee:
899          (A) before the date on which the taxing entity committee approves the project area
900     budget; or
901          (B) if taxing entity committee approval is not required for the project area budget,
902     before the date on which the community legislative body adopts the project area plan;
903          (b) for a project on an inactive airport site, after the later of:
904          (i) the date on which the inactive airport site is sold for remediation and development;
905     or
906          (ii) the date on which the airport that operated on the inactive airport site ceased
907     operations; or
908          (c) for a community development project area plan or a community reinvestment
909     project area plan that is subject to an interlocal agreement, as described in the interlocal
910     agreement.
911          [(7)] (10) "Basic levy" means the portion of a school district's tax levy constituting the
912     minimum basic levy under Section 59-2-902.
913          [(8)] (11) "Blight" or "blighted" means the condition of an area that meets the
914     requirements [of] described in Subsection 17C-2-303(1) for an urban renewal project area or
915     Section 17C-5-405 for a community reinvestment project area.
916          [(9)] (12) "Blight hearing" means a public hearing regarding whether blight exists
917     within a proposed:
918          (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
919     17C-2-302; or [regarding the existence or nonexistence of blight within the proposed urban
920     renewal project area.]
921          (b) community reinvestment project area under Section 17C-5-405.
922          [(10)] (13) "Blight study" means a study to determine [the existence or nonexistence of
923     blight] whether blight exists within a survey area as [provided] described in Section 17C-2-301
924     for an urban renewal project area or Section 17C-5-403 for a community reinvestment project
925     area.
926          [(11)] (14) "Board" means the governing body of an agency, as [provided] described in

927     Section 17C-1-203.
928          [(12)] (15) "Budget hearing" means the public hearing on a [draft] proposed project
929     area budget required under Subsection 17C-2-201(2)(d) for an urban renewal project area
930     budget [or], Subsection 17C-3-201(2)(d) for an economic development project area budget, or
931     Subsection 17C-5-302(2)(e) for a community reinvestment project area budget.
932          [(13)] (16) "Closed military base" means land within a former military base that the
933     Defense Base Closure and Realignment Commission has voted to close or realign when that
934     action has been sustained by the president of the United States and Congress.
935          [(14)] (17) "Combined incremental value" means the combined total of all incremental
936     values from all [urban renewal] project areas, except project areas that contain some or all of a
937     military installation or inactive industrial site, within the agency's boundaries under [adopted]
938     project area plans and [adopted] project area budgets at the time that a project area budget for a
939     new [urban renewal] project area is being considered.
940          [(15)] (18) "Community" means a county[, city, or town] or municipality.
941          [(16) "Community development" means development activities within a community,
942     including the encouragement, promotion, or provision of development.]
943          (19) "Community development project area plan" means a project area plan adopted
944     under Chapter 4, Part 1, Community Development Project Area Plan.
945          (20) "Community legislative body" means the legislative body of the community that
946     created the agency.
947          (21) "Community reinvestment project area plan" means a project area plan adopted
948     under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
949          [(17)] (22) "Contest" means to file a written complaint in the district court of the
950     county in which [the person filing the complaint resides] the agency is located.
951          [(18) "Economic development" means to promote the creation or retention of public or
952     private jobs within the state through:]
953          [(a) planning, design, development, construction, rehabilitation, business relocation, or
954     any combination of these, within a community; and]
955          [(b) the provision of office, industrial, manufacturing, warehousing, distribution,
956     parking, public, or other facilities, or other improvements that benefit the state or a
957     community.]

958          (23) "Economic development project area plan" means a project area plan adopted
959     under Chapter 3, Part 1, Economic Development Project Area Plan.
960          [(19)] (24) "Fair share ratio" means the ratio derived by:
961          (a) for a [city or town] municipality, comparing the percentage of all housing units
962     within the [city or town] municipality that are publicly subsidized income targeted housing
963     units to the percentage of all housing units within the [whole] county in which the municipality
964     is located that are publicly subsidized income targeted housing units; or
965          (b) for the unincorporated part of a county, comparing the percentage of all housing
966     units within the unincorporated county that are publicly subsidized income targeted housing
967     units to the percentage of all housing units within the whole county that are publicly subsidized
968     income targeted housing units.
969          [(20)] (25) "Family" [has the meaning as] means the same as that term is defined
970     [under] in regulations of the United States Department of Housing and Urban Development, 24
971     C.F.R. Section 5.403, as amended or as superseded by replacement regulations.
972          [(21)] (26) "Greenfield" means land not developed beyond agricultural, range, or
973     forestry use.
974          [(22)] (27) "Hazardous waste" means any substance defined, regulated, or listed as a
975     hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
976     or toxic substance, or identified as hazardous to human health or the environment, under state
977     or federal law or regulation.
978          [(23) "Housing funds" means the funds allocated in an urban renewal project area
979     budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412(1).]
980          (28) "Housing allocation" means tax increment allocated for housing under Section
981     17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
982          (29) "Housing fund" means a fund created by an agency for purposes described in
983     Section 17C-1-411 or 17C-1-412 that is comprised of:
984          (a) project area funds allocated for the purposes described in Section 17C-1-411; or
985          (b) an agency's housing allocation.
986          [(24)] (30) (a) "Inactive airport site" means land that:
987          (i) consists of at least 100 acres;
988          (ii) is occupied by an airport:

989          (A) (I) that is no longer in operation as an airport; or
990          (II) (Aa) that is scheduled to be decommissioned; and
991          (Bb) for which a replacement commercial service airport is under construction; and
992          (B) that is owned or was formerly owned and operated by a public entity; and
993          (iii) requires remediation because:
994          (A) of the presence of hazardous waste or solid waste; or
995          (B) the site lacks sufficient public infrastructure and facilities, including public roads,
996     electric service, water system, and sewer system, needed to support development of the site.
997          (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
998     described in Subsection [(24)] (30)(a).
999          [(25)] (31) (a) "Inactive industrial site" means land that:
1000          (i) consists of at least 1,000 acres;
1001          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
1002     facility; and
1003          (iii) requires remediation because of the presence of hazardous waste or solid waste.
1004          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
1005     described in Subsection [(25)] (31)(a).
1006          [(26)] (32) "Income targeted housing" means housing [to be] that is owned or occupied
1007     by a family whose annual income is at or below 80% of the median annual income for a family
1008     within the county in which the housing is located.
1009          [(27)] (33) "Incremental value" means a figure derived by multiplying the marginal
1010     value of the property located within [an urban renewal] a project area on which tax increment
1011     is collected by a number that represents the [percentage of] adjusted tax increment from that
1012     project area that is paid to the agency.
1013          [(28)] (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
1014     established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
1015          [(31)] (35) (a) "[Municipal] Local government building" means a building owned and
1016     operated by a [municipality] community for the purpose of providing one or more primary
1017     [municipal] community functions, including:
1018          (i) a fire station;
1019          (ii) a police station;

1020          (iii) a city hall; or
1021          (iv) a court or other judicial building.
1022          (b) "[Municipal] Local government building" does not include a building the primary
1023     purpose of which is cultural or recreational in nature.
1024          [(29)] (36) "Marginal value" means the difference between actual taxable value and
1025     base taxable value.
1026          [(30)] (37) "Military installation project area" means a project area or a portion of a
1027     project area located within a federal military installation ordered closed by the federal Defense
1028     Base Realignment and Closure Commission.
1029          (38) "Municipality" means a city, town, or metro township as defined in Section
1030     10-2a-403.
1031          (39) "Participant" means one or more persons that enter into a participation agreement
1032     with an agency.
1033          (40) "Participation agreement" means a written agreement between a person and an
1034     agency that:
1035          (a) includes a description of:
1036          (i) the project area development that the person will undertake;
1037          (ii) the amount of project area funds the person may receive; and
1038          (iii) the terms and conditions under which the person may receive project area funds;
1039     and
1040          (b) is approved by resolution of the board.
1041          [(32)] (41) "Plan hearing" means the public hearing on a [draft] proposed project area
1042     plan required under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan,
1043     Subsection 17C-3-102(1)(d) for an economic development project area plan, [and] Subsection
1044     17C-4-102(1)(d) for a community development project area plan, or Subsection
1045     17C-5-104(3)(e) for a community reinvestment project area plan.
1046          [(33)] (42) "Post-June 30, 1993, project area plan" means a project area plan adopted
1047     on or after July 1, 1993, and before May 10, 2016, whether or not amended subsequent to [its]
1048     the project area plan's adoption.
1049          [(34)] (43) "Pre-July 1, 1993, project area plan" means a project area plan adopted
1050     before July 1, 1993, whether or not amended subsequent to [its] the project area plan's

1051     adoption.
1052          [(35)] (44) "Private," with respect to real property, means:
1053          (a) not owned by [the United States or any agency of the federal government,] a public
1054     entity[,] or any other governmental entity; and
1055          (b) not dedicated to public use.
1056          [(36)] (45) "Project area" means the geographic area described in a project area plan [or
1057     draft project area plan where the urban renewal, economic development, or community
1058     development, as the case may be, set forth in the project area plan or draft project area plan
1059     takes place or is proposed to take place] within which the project area development described
1060     in the project area plan takes place or is proposed to take place.
1061          [(37)] (46) "Project area budget" means a multiyear projection of annual or cumulative
1062     revenues and expenses and other fiscal matters pertaining to a [urban renewal or economic
1063     development] project area prepared in accordance with:
1064          (a) for an urban renewal project area, Section 17C-2-202;
1065          (b) for an economic development project area, Section 17C-3-202;
1066          (c) for a community development project area, Section 17C-4-204; or
1067          (d) for a community reinvestment project area, Section 17C-5-302. [that includes:]
1068          [(a) the base taxable value of property in the project area;]
1069          [(b) the projected tax increment expected to be generated within the project area;]
1070          [(c) the amount of tax increment expected to be shared with other taxing entities;]
1071          [(d) the amount of tax increment expected to be used to implement the project area
1072     plan, including the estimated amount of tax increment to be used for land acquisition, public
1073     improvements, infrastructure improvements, and loans, grants, or other incentives to private
1074     and public entities;]
1075          [(e) the tax increment expected to be used to cover the cost of administering the project
1076     area plan;]
1077          [(f) if the area from which tax increment is to be collected is less than the entire project
1078     area:]
1079          [(i) the tax identification numbers of the parcels from which tax increment will be
1080     collected; or]
1081          [(ii) a legal description of the portion of the project area from which tax increment will

1082     be collected;]
1083          [(g) for property that the agency owns and expects to sell, the expected total cost of the
1084     property to the agency and the expected selling price; and]
1085          [(h) (i) for an urban renewal project area, the information required under Subsection
1086     17C-2-201(1)(b); and]
1087          [(ii) for an economic development project area, the information required under
1088     Subsection 17C-3-201(1)(b).]
1089          (47) "Project area development" means activity within a project area that encourages,
1090     promotes, or provides development or redevelopment for the purpose of implementing a
1091     project area plan, including:
1092          (a) promoting, creating, or retaining public or private jobs within the state or a
1093     community;
1094          (b) providing office, manufacturing, warehousing, distribution, parking, or other
1095     facilities or improvements;
1096          (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
1097     remediating environmental issues;
1098          (d) providing residential, commercial, industrial, public, or other structures or spaces,
1099     including recreational and other facilities incidental or appurtenant to the structures or spaces;
1100          (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
1101     existing structures;
1102          (f) providing open space, including streets or other public grounds or space around
1103     buildings;
1104          (g) providing public or private buildings, infrastructure, structures, or improvements;
1105          (h) relocating a business;
1106          (i) improving public or private recreation areas or other public grounds;
1107          (j) eliminating blight or the causes of blight;
1108          (k) redevelopment as defined under the law in effect before May 1, 2006; or
1109          (l) any activity described in Subsections (47)(a) through (k) outside of a project area
1110     that the board determines to be a benefit to the project area.
1111          (48) "Project area funds" means tax increment or sales and use tax revenue that an
1112     agency receives under a project area budget adopted by a taxing entity committee or an

1113     interlocal agreement.
1114          (49) "Project area funds collection period" means the period of time that:
1115          (a) begins the day on which an agency receives the first payment of project area funds
1116     from a taxing entity under a project area budget adopted by a taxing entity committee or an
1117     interlocal agreement; and
1118          (b) ends the day on which an agency receives the last payment of project area funds
1119     from a taxing entity under a project area budget adopted by a taxing entity committee or an
1120     interlocal agreement.
1121          [(38)] (50) "Project area plan" means [a written plan under Chapter 2, Part 1, Urban
1122     Renewal Project Area Plan, Chapter 3, Part 1, Economic Development Project Area Plan, or
1123     Chapter 4, Part 1, Community Development Project Area Plan, as the case may be,] an urban
1124     renewal project area plan, an economic development project area plan, a community
1125     development project area plan, or a community reinvestment project area plan that, after [its]
1126     the project area plan's effective date, guides and controls the [urban renewal, economic
1127     development, or community development activities within a project area] project area
1128     development.
1129          [(39)] (51) (a) "Property tax" [includes privilege tax and each levy on an ad valorem
1130     basis on tangible or intangible personal or real property.] means each levy on an ad valorem
1131     basis on tangible or intangible personal or real property.
1132          (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
1133     Tax.
1134          [(40)] (52) "Public entity" means:
1135          (a) the United States, including an agency of the United States;
1136          [(a)] (b) the state, including any of [its] the state's departments or agencies; or
1137          [(b)] (c) a political subdivision of the state, including a county, [city, town,]
1138     municipality, school district, local district, special service district, or interlocal cooperation
1139     entity.
1140          [(41)] (53) "Publicly owned infrastructure and improvements" means water, sewer,
1141     storm drainage, electrical, [and] natural gas, telecommunication, or other similar systems and
1142     lines, streets, roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation
1143     facilities, [and] or other facilities, infrastructure, and improvements benefitting the public and

1144     to be publicly owned or publicly maintained or operated.
1145          [(42)] (54) "Record property owner" or "record owner of property" means [the owner
1146     of real property as shown on the records of the recorder of the county in which the property is
1147     located and includes a purchaser under a real estate contract if the contract is recorded in the
1148     office of the recorder of the county in which the property is located or the purchaser gives
1149     written notice of the real estate contract to the agency.] the owner of real property, as shown on
1150     the records of the county in which the property is located, to whom the property's tax notice is
1151     sent.
1152          (55) "Sales and use tax revenue" means revenue that is:
1153          (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act;
1154     and
1155          (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.
1156          [(43)] (56) "Superfund site":
1157          (a) means an area included in the National Priorities List under the Comprehensive
1158     Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
1159          (b) includes an area formerly included in the National Priorities List, as described in
1160     Subsection [(43)] (56)(a), but removed from the list following remediation that leaves on site
1161     the waste that caused the area to be included in the National Priorities List.
1162          [(44)] (57) "Survey area" means [an] a geographic area designated for study by a
1163     survey area resolution [for study] to determine whether one or more [urban renewal projects]
1164     project areas within the survey area are feasible.
1165          [(45)] (58) "Survey area resolution" means a resolution adopted by [the agency] a
1166     board under Subsection [17C-2-101(1)(a)] 17C-2-101.5(1) or 17C-5-103(1) designating a
1167     survey area.
1168          [(46)] (59) "Taxable value" means [the value of property as shown on the last
1169     equalized assessment roll as certified by the county assessor.]:
1170          (a) the taxable value of all real property a county assessor assesses in accordance with
1171     Title 59, Chapter 2, Part 3, County Assessment, for the current year;
1172          (b) the taxable value of all real and personal property the commission assesses in
1173     accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year; and
1174          (c) the year end taxable value of all personal property a county assessor assesses in

1175     accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the prior year's
1176     tax rolls of the taxing entity.
1177          [(47) (a) Except as provided in Subsection (47) (b),]
1178          (60) (a) "Tax increment" means the difference between:
1179          (i) the amount of property tax [revenues] revenue generated each tax year by [all] a
1180     taxing [entities] entity from the area within a project area designated in the project area plan as
1181     the area from which tax increment is to be collected[: (A)], using the current assessed value of
1182     the property; and
1183          [(B) that are paid to the agency from funds from all of the tax levies used in
1184     establishing the certified tax rate in accordance with Section 59-2-924 of the taxing entity
1185     within which the agency is located, including funds that are restricted for a particular use by
1186     statute to the extent bond covenants are not impaired; and]
1187          (ii) the amount of property tax [revenues] revenue that would be generated from that
1188     same area using the base taxable value of the property.
1189          (b) "Tax increment" does not include taxes levied and collected under Section
1190     59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:
1191          (i) the project area plan was adopted before May 4, 1993, whether or not the project
1192     area plan was subsequently amended; and
1193          (ii) the taxes were pledged to support bond indebtedness or other contractual
1194     obligations of the agency.
1195          [(48)] (61) "Taxing entity" means a public entity that [levies] is authorized to:
1196          (a) levy a tax on [a parcel or parcels of] property located within a [community.] project
1197     area; or
1198          (b) impose a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
1199          [(49)] (62) "Taxing entity committee" means a committee representing the interests of
1200     taxing entities, created [as provided] in accordance with Section 17C-1-402.
1201          [(50)] (63) "Unincorporated" means not within a [city or town] municipality.
1202          [(51) (a) "Urban renewal" means the development activities under a project area plan
1203     within an urban renewal project area, including:]
1204          [(i) planning, design, development, demolition, clearance, construction, rehabilitation,
1205     environmental remediation, or any combination of these, of part or all of a project area;]

1206          [(ii) the provision of residential, commercial, industrial, public, or other structures or
1207     spaces, including recreational and other facilities incidental or appurtenant to them;]
1208          [(iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating,
1209     or any combination of these, existing structures in a project area;]
1210          [(iv) providing open space, including streets and other public grounds and space
1211     around buildings;]
1212          [(v) providing public or private buildings, infrastructure, structures, and improvements;
1213     and]
1214          [(vi) providing improvements of public or private recreation areas and other public
1215     grounds.]
1216          [(b) "Urban renewal" means "redevelopment," as defined under the law in effect before
1217     May 1, 2006, if the context requires.]
1218          (64) "Urban renewal project area plan" means a project area plan adopted under
1219     Chapter 2, Part 1, Urban Renewal Project Area Plan.
1220          Section 17. Section 17C-1-102.5 is enacted to read:
1221          17C-1-102.5. Project area created on or after May 10, 2016.
1222          Beginning on May 10, 2016, an agency:
1223          (1) may create a community reinvestment project area under Chapter 5, Community
1224     Reinvestment;
1225          (2) except as provided in Subsection (3), may not create:
1226          (a) an urban renewal project area under Chapter 2, Urban Renewal;
1227          (b) an economic development project area under Chapter 3, Economic Development;
1228     or
1229          (c) a community development project area under Chapter 4, Community Development;
1230     and
1231          (3) may create an urban renewal project area, an economic development project area,
1232     or a community development project area if:
1233          (a) before April 1, 2016, the agency adopts a resolution in accordance with:
1234          (i) Section 17C-2-101.5 for an urban renewal project area;
1235          (ii) Section 17C-3-101 for an economic development project area; or
1236          (iii) Section 17C-4-102 for a community development project area; and

1237          (b) the urban renewal project area, economic development project area, or community
1238     development project area is effective before September 1, 2016.
1239          Section 18. Section 17C-1-103 is amended to read:
1240          17C-1-103. Limitations on applicability of title -- Amendment of previously
1241     adopted project area plan.
1242          (1) [Nothing] Except where expressly provided, nothing in this title may be construed
1243     to:
1244          (a) impose a requirement or obligation on an agency, with respect to a project area plan
1245     adopted or an agency action taken, that was not imposed by the law in effect at the time the
1246     project area plan was adopted or the action taken;
1247          (b) prohibit an agency from taking an action that:
1248          (i) was allowed by the law in effect immediately before an applicable amendment to
1249     this title;
1250          (ii) is permitted or required under the project area plan adopted before the amendment;
1251     and
1252          (iii) is not explicitly prohibited under this title;
1253          (c) revive any right to challenge any action of the agency that had already expired; or
1254          (d) require a project area plan to contain a provision that was not required by the law in
1255     effect at the time the project area plan was adopted.
1256          (2) (a) A project area plan adopted before an amendment to this title becomes effective
1257     may be amended as provided in this title.
1258          (b) Unless explicitly prohibited by this title, an amendment under Subsection (2)(a)
1259     may include a provision that is allowed under this title but that was not required or allowed by
1260     the law in effect before the applicable amendment.
1261          Section 19. Section 17C-1-201.1 is enacted to read:
1262     
Part 2. Agency Creation, Powers, and Board

1263          17C-1-201.1. Title.
1264          This part is known as "Agency Creation, Powers, and Board."
1265          Section 20. Section 17C-1-201.5, which is renumbered from Section 17C-1-201 is
1266     renumbered and amended to read:
1267          [17C-1-201].      17C-1-201.5. Creation of agency -- Name change.

1268          (1) A community [may, by ordinance adopted by its legislative body, approve the
1269     creation of a community development and renewal agency.] legislative body may, by
1270     ordinance, create a community reinvestment agency.
1271          (2) (a) The community legislative body shall:
1272          (i) after adopting an ordinance under Subsection (1), file with the lieutenant governor a
1273     copy of a notice, subject to Subsection (2)(b), of an impending boundary action, as defined in
1274     Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
1275          (ii) upon the lieutenant governor's issuance of a certificate of creation under Section
1276     67-1a-6.5, submit to the recorder of the county in which the agency is located:
1277          (A) the original notice of an impending boundary action;
1278          (B) the original certificate of creation; and
1279          (C) a certified copy of the ordinance approving the creation of the community
1280     [development and renewal] reinvestment agency.
1281          (b) The notice required under Subsection (2)(a)(i) shall state that the agency's
1282     boundaries are, and shall always be, coterminous with the boundaries of the community that
1283     created the agency.
1284          (c) Upon the lieutenant governor's issuance of the certificate of creation under Section
1285     67-1a-6.5, the agency is created and incorporated.
1286          (d) Until the documents listed in Subsection (2)(a)(ii) are recorded in the office of the
1287     recorder of the county in which the [property] agency is located, an agency may not receive or
1288     spend [tax increment] agency funds.
1289          (3) (a) An agency may [approve a] change [in its] the agency's name[, whether to
1290     indicate it is a community development and renewal agency or otherwise,] by:
1291          (i) adopting a resolution approving a name change; and
1292          (ii) filing with the lieutenant governor a copy of a notice of an impending name
1293     change, as defined in Section 67-1a-6.7, that meets the requirements of Subsection
1294     67-1a-6.7(3).
1295          (b) (i) Upon the lieutenant governor's issuance of a certificate of name change under
1296     Section 67-1a-6.7, the agency shall file with the recorder of the county in which the agency is
1297     located:
1298          (A) the original notice of an impending name change;

1299          (B) the original certificate of name change; and
1300          (C) a certified copy of the resolution approving a name change.
1301          (ii) Until the documents listed in Subsection (3)(b)(i) are recorded in the office of the
1302     county recorder, the agency may not operate under the new name.
1303          Section 21. Section 17C-1-202 is amended to read:
1304          17C-1-202. Agency powers.
1305          (1) [A community development and renewal] An agency may:
1306          (a) sue and be sued;
1307          (b) enter into contracts generally;
1308          (c) buy, obtain an option upon, or otherwise acquire any interest in real or personal
1309     property;
1310          (d) sell, convey, grant, [dispose of by] gift, or otherwise dispose of any interest in real
1311     or personal property;
1312          (e) enter into a lease agreement on real or personal property, either as lessee or lessor;
1313          (f) provide for [urban renewal, economic development, and community] project area
1314     development as provided in this title;
1315          (g) receive [tax increment] and use agency funds as provided in this title;
1316          (h) if disposing of or leasing land, retain controls or establish restrictions and
1317     covenants running with the land consistent with the project area plan;
1318          (i) accept financial or other assistance from any public or private source for the
1319     agency's activities, powers, and duties, and expend any funds [so received for any of the
1320     purposes of] the agency receives for any purpose described in this title;
1321          (j) borrow money or accept financial or other assistance from [the federal government,]
1322     a public entity, or any other source for any of the purposes of this title and comply with any
1323     conditions of [the] any loan or assistance;
1324          (k) issue bonds to finance the undertaking of any [urban renewal, economic
1325     development, or community] project area development or for any of the agency's other
1326     purposes, including:
1327          (i) reimbursing an advance made by the agency or by a public entity [or the federal
1328     government] to the agency;
1329          (ii) refunding bonds to pay or retire bonds previously issued by the agency; and

1330          (iii) refunding bonds to pay or retire bonds previously issued by the community that
1331     created the agency for expenses associated with [an urban renewal, economic development, or
1332     community development project; and] project area development;
1333          (l) pay an impact fee, exaction, or other fee imposed by a community in connection
1334     with land development; or
1335          [(l)] (m) transact other business and exercise all other powers [provided for] described
1336     in this title.
1337          (2) The establishment of controls or restrictions and covenants under Subsection (1)(h)
1338     is a public purpose.
1339          Section 22. Section 17C-1-203 is amended to read:
1340          17C-1-203. Agency board -- Quorum.
1341          (1) The governing body of an agency is a board consisting of the current members of
1342     the community legislative body [of the community that created the agency].
1343          (2) A majority of board members constitutes a quorum for the transaction of agency
1344     business.
1345          (3) [An agency] A board may not adopt a resolution, pass a motion, or take any other
1346     official board action without the concurrence of at least a majority of the board members
1347     present at a meeting at which a quorum is present.
1348          (4) (a) The mayor or the mayor's designee of a municipality operating under a
1349     council-mayor form of government, as defined in Section 10-3b-102:
1350          [(a)] (i) serves as the executive director of an agency created by the municipality; and
1351          [(b)] (ii) exercises the [executive powers of the agency] agency's executive powers.
1352          (b) The county executive or the county executive's designee of a county operating
1353     under a county executive-council form of government, as described in Section 17-52-504:
1354          (i) serves as the executive director of an agency created by the county; and
1355          (ii) exercises the agency's executive powers.
1356          Section 23. Section 17C-1-204 is amended to read:
1357          17C-1-204. Project area development by an adjoining agency -- Requirements.
1358          [(1) An agency or community may, by resolution of its board or legislative body,
1359     respectively, authorize an agency to conduct urban renewal, economic development, or
1360     community development activities in a project area that includes an area within the authorizing

1361     agency's boundaries or within the boundaries of the authorizing community if the project area
1362     or community is contiguous to the boundaries of the other agency.]
1363          [(2) If an agency board or community legislative body adopts a resolution under
1364     Subsection (1) authorizing another agency to undertake urban renewal, economic development,
1365     or community development activities in the authorizing agency's project area or within the
1366     boundaries of the authorizing community:]
1367          (1) (a) A community that has not created an agency may enter into an interlocal
1368     agreement with an agency located in the same or an abutting county that authorizes the agency
1369     to exercise all the powers granted to an agency under this title within the community.
1370          (b) The agency and the community shall adopt an interlocal agreement described in
1371     Subsection (1)(a) by resolution.
1372          (2) If an agency and a community enter into an interlocal agreement under Subsection
1373     (1):
1374          (a) the [other] agency may act in all respects as if [the] a project area [were] within the
1375     community were within [its own] the agency's boundaries;
1376          (b) the board [of the other agency] has all the rights, powers, and privileges with
1377     respect to [the] a project area within the community as if [it were] the project area were within
1378     [its own] the agency's boundaries; [and]
1379          (c) the [other] agency may be paid [tax increment] project area funds to the same extent
1380     as if [the] a project area [were] within the community were within [its own] the agency's
1381     boundaries[.]; and
1382          (d) the community legislative body shall adopt, by ordinance, each project area plan
1383     within the community approved by the agency.
1384          [(3) Each project area plan approved by the other agency for the project area that is the
1385     subject of a resolution under Subsection (1) shall be adopted by ordinance of the legislative
1386     body of the community in which the project area is located.]
1387          (3) If an agency's project area abuts another agency's project area, the agencies may
1388     coordinate with each other in order to assist and cooperate in the planning, undertaking,
1389     construction, or operation of project area development located within each agency's project
1390     area.
1391          (4) (a) As used in this Subsection (4):

1392          (i) "County agency" means an agency that [was] is created by a county.
1393          (ii) "Industrial property" means private real property:
1394          (A) over half of which is located within the boundary of a town, as defined in Section
1395     10-1-104; and
1396          (B) comprises some or all of an inactive industrial site.
1397          (iii) "Perimeter portion" means the portion of an inactive industrial site that is:
1398          (A) part of the inactive industrial site because [it] the site lies within the perimeter
1399     described in [Subsection] Section 17C-1-102[(24)(b)]; and
1400          (B) located within the boundary of a city, as defined in Section 10-1-104.
1401          (b) (i) Subject to Subsection (4)(b)(ii), a county agency may undertake [urban renewal,
1402     economic development, or community] project area development on industrial property if the
1403     record property owner of the industrial property submits a written request to the county agency
1404     to do so.
1405          (ii) A county agency may not include a perimeter portion within a project area without
1406     the approval of the city in which the perimeter portion is located.
1407          (c) If a county agency undertakes [urban renewal, economic development, or
1408     community] project area development on industrial property:
1409          (i) the county agency may act in all respects as if the project area that includes the
1410     industrial property were within the county agency's boundary;
1411          (ii) the board of the county agency has each right, power, and privilege with respect to
1412     the project area as if the project area were within the county agency's boundary; and
1413          (iii) the county agency may be paid [tax increment] project area funds to the same
1414     extent as if the project area were within the county agency's boundary.
1415          (d) A project area plan for a project on industrial property that is approved by the
1416     county agency shall be adopted by ordinance of the legislative body of the county in which the
1417     project area is located.
1418          Section 24. Section 17C-1-205 is amended to read:
1419          17C-1-205. Transfer of project area from one community to another.
1420          (1) [For purposes of] As used in this section:
1421          (a) "New agency" means the agency created by the new community.
1422          (b) "New community" means the community in which the relocated project area is

1423     located after the change in community boundaries takes place.
1424          (c) "Original agency" means the agency created by the original community.
1425          (d) "Original community" means the community that adopted the project area plan that
1426     created the project area that has been relocated.
1427          (e) "Relocated" means that a project area under a project area plan adopted by the
1428     original community has ceased to be located within that community and has become part of a
1429     new community because of a change in community boundaries through:
1430          (i) a county or municipal annexation;
1431          (ii) the creation of a new county;
1432          (iii) a municipal incorporation, consolidation, dissolution, or boundary adjustment; or
1433          (iv) any other action resulting in a change in community boundaries.
1434          (2) [If a] A relocated project area [under a project area plan adopted by a community
1435     becomes relocated, the project area] shall, for purposes of this title, be considered to remain in
1436     the original community until[: (a) the new community has created an agency; (b) the original
1437     agency has transferred or assigned] the original agency and the new agency enter into an
1438     interlocal agreement, adopted by resolution of the original agency's and the new agency's board,
1439     that authorizes the original agency to transfer or assign to the new agency the original agency's
1440     real property, rights, indebtedness, obligations, tax increment, [and] or other assets and
1441     liabilities [related to] resulting from the relocated project area[;].
1442          [(c) the new agency by resolution approves the original agency's project area plan as
1443     the project area plan of the new agency; and]
1444          [(d) the new community by ordinance adopts the project area plan that was approved
1445     by the new agency.]
1446          Section 25. Section 17C-1-207 is amended to read:
1447          17C-1-207. Public entities may assist with project area development.
1448          (1) In order to assist and cooperate in the planning, undertaking, construction, or
1449     operation of [urban renewal, economic development, or community] project area development
1450     within [the] an area in which [it] the public entity is authorized to act, a public entity may:
1451          (a) (i) provide or cause to be furnished:
1452          (A) parks, playgrounds, or other recreational facilities;
1453          (B) community, educational, water, sewer, or drainage facilities; or

1454          (C) any other works which the public entity is otherwise empowered to undertake;
1455          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
1456     replan streets, roads, roadways, alleys, sidewalks, or other places;
1457          (iii) in any part of the project area:
1458          (A) (I) plan or replan any property within the project area;
1459          (II) plat or replat any property within the project area;
1460          (III) vacate a plat;
1461          (IV) amend a plat; or
1462          (V) zone or rezone any property within the project area; and
1463          (B) make any legal exceptions from building regulations and ordinances;
1464          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
1465     rights of any holder of the bonds;
1466          (v) enter into an agreement with another public entity concerning action to be taken
1467     pursuant to any of the powers granted in this title;
1468          (vi) do [any and all things] anything necessary to aid or cooperate in the planning or
1469     [carrying out] implementation of the [urban renewal, economic development, or community]
1470     project area development;
1471          (vii) in connection with the project area plan, become obligated to the extent
1472     authorized and funds have been made available to make required improvements or construct
1473     required structures; and
1474          (viii) lend, grant, or contribute funds to an agency for [an urban renewal, economic
1475     development, or community development project] project area development; and
1476          (b) 15 days after posting public notice:
1477          (i) purchase or otherwise acquire property or lease property from [an] the agency; or
1478          (ii) sell, grant, convey, or otherwise dispose of the public entity's property or lease the
1479     public entity's property to [an] the agency.
1480          (2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
1481     may extend over any period.
1482          (3) A grant or contribution of funds from a public entity to an agency, or from an
1483     agency under a project area plan or project area budget, is not subject to the requirements of
1484     Section 10-8-2.

1485          Section 26. Section 17C-1-208 is amended to read:
1486          17C-1-208. Agency funds.
1487          (1) Agency funds shall be accounted for separately from the funds of the community
1488     that created the agency.
1489          (2) An agency may accumulate retained earnings or fund balances, as appropriate, in
1490     any fund.
1491          Section 27. Section 17C-1-209 is enacted to read:
1492          17C-1-209. Agency records.
1493          An agency shall maintain the agency's minutes, resolutions, and other records separate
1494     from those of the community that created the agency.
1495          Section 28. Section 17C-1-301.1 is enacted to read:
1496          17C-1-301.1. Title.
1497          This part is known as "Agency Property."
1498          Section 29. Section 17C-1-301.5, which is renumbered from Section 17C-1-301 is
1499     renumbered and amended to read:
1500     
Part 3. Agency Property

1501          [17C-1-301].      17C-1-301.5. Agency property exempt from taxation --
1502     Exception.
1503          (1) Agency property acquired or held for purposes of this title is [declared to be] public
1504     property used for essential public and governmental purposes and, subject to Subsection (2), is
1505     exempt from [all taxes of a public] taxation by a taxing entity.
1506          (2) The exemption in Subsection (1) does not apply to property that the agency leases
1507     to a lessee [that is not] unless the lessee is entitled to a tax exemption with respect to the
1508     property.
1509          Section 30. Section 17C-1-302 is amended to read:
1510          17C-1-302. Agency property exempt from levy and execution sale -- Judgment
1511     against community or agency.
1512          (1) (a) (i) All agency property, including funds the agency owns or holds for purposes
1513     of this title, is exempt from levy and execution sale, and no execution or judicial process may
1514     issue against [agency] the property.
1515          (ii) A judgment against an agency may not be a charge or lien upon agency property.

1516          (b) Subsection (1)(a) does not apply to or limit the right of [obligees] an obligee to
1517     pursue any [remedies] remedy for the enforcement of any pledge or lien given by an agency on
1518     [its] the agency's funds or revenues.
1519          (2) A judgment against the community that created the agency may not be a charge or
1520     lien upon agency property.
1521          (3) A judgment against an agency may not be a charge or lien upon property of the
1522     community that created the agency.
1523          Section 31. Section 17C-1-401.1 is enacted to read:
1524     
Part 4. Project Area Funds

1525          17C-1-401.1. Title.
1526          This part is known as "Project Area Funds."
1527          Section 32. Section 17C-1-401.5, which is renumbered from Section 17C-1-401 is
1528     renumbered and amended to read:
1529          [17C-1-401].      17C-1-401.5. Agency receipt and use of project area funds --
1530     Distribution of project area funds.
1531          (1) An agency may receive and use [tax increment and sales tax, as provided in this
1532     part] project area funds in accordance with this title.
1533          (2) (a) A county that collects property tax on property located within a project area
1534     shall, in accordance with Section 59-12-1365, distribute to an agency any tax increment that the
1535     agency is authorized to receive.
1536          (b) Tax increment distributed to an agency in accordance with Subsection (2)(a) is not
1537     revenue of the taxing entity.
1538          [(2)] (3) (a) The [applicable length of time or number of years for which an agency is
1539     to be paid tax increment or sales tax under this part] project area funds collection period shall
1540     be measured:
1541          (i) for a pre-July 1, 1993, project area plan, from the first tax year regarding which the
1542     agency accepts tax increment from the project area;
1543          (ii) for a post-June 30, 1993, urban renewal or economic development project area
1544     plan:
1545          (A) with respect to tax increment, from the first tax year for which the agency receives
1546     tax increment under the project area budget; or

1547          (B) with respect to sales and use tax revenue, as indicated in the interlocal agreement
1548     between the agency and the taxing entity that [established the agency's right to receive sales
1549     tax; or] authorizes the agency to receive the taxing entity's sales and use tax revenue;
1550          (iii) for a community development project area plan, as indicated in the resolution or
1551     interlocal agreement of a taxing entity that [establishes the agency's right to receive tax
1552     increment or sales tax.] authorizes the agency to receive the taxing entity's project area funds;
1553          (iv) for a community reinvestment project area plan that is subject to a taxing entity
1554     committee:
1555          (A) with respect to tax increment, from the first tax year for which the agency receives
1556     tax increment under the project area budget; or
1557          (B) with respect to sales and use tax revenue, in accordance with the interlocal
1558     agreement between the agency and the taxing entity that authorizes the agency to receive the
1559     taxing entity's sales and use tax revenue; or
1560          (v) for a community reinvestment project area plan that is subject to an interlocal
1561     agreement, in accordance with the interlocal agreement between the agency and the taxing
1562     entity that authorizes the agency to receive the taxing entity's project area funds.
1563          (b) Unless otherwise provided in a project area budget that is approved by a taxing
1564     entity committee, or in an interlocal agreement [or resolution] adopted by a taxing entity, tax
1565     increment may not be paid to an agency for a tax year [prior to] before the tax year following:
1566          (i) for an urban renewal [or] project area plan, an economic development project area
1567     plan, or a community reinvestment project area plan that is subject to a taxing entity
1568     committee, the effective date of the project area plan; and
1569          (ii) for a community development project area plan or a community reinvestment
1570     project area plan that is subject to an interlocal agreement, the effective date of the interlocal
1571     agreement that [establishes the agency's right] authorizes the agency to receive tax increment.
1572          [(3)] (4) With respect to a community development project area plan or a community
1573     reinvestment project area plan that is subject to an interlocal agreement:
1574          (a) a taxing entity [or public entity] may, [by resolution or] through interlocal
1575     agreement, authorize an agency to be paid any or all of [that taxing entity or public entity's tax
1576     increment or sales tax] the taxing entity's project area funds for any period of time; and
1577          (b) the [resolution or] interlocal agreement authorizing the agency to be paid [tax

1578     increment or sales tax] project area funds shall specify:
1579          (i) the base taxable value of the project area; and
1580          (ii) the method of calculating the amount of [tax increment or sales tax] project area
1581     funds to be paid to the agency.
1582          [(4)] (5) (a) (i) The boundaries of one project area may overlap and include the
1583     boundaries of an existing project area.
1584          (ii) If a taxing entity committee is required to approve the project area budget of an
1585     overlapping project area described in Subsection [(4)] (5)(a)(i), the agency shall, before the first
1586     meeting of the taxing entity committee at which the project area budget will be considered,
1587     inform each taxing entity of the location of the overlapping boundaries.
1588          (b) (i) Before an agency may [collect] receive tax increment from the newly created
1589     overlapping portion of a project area, the agency shall inform the county auditor regarding the
1590     respective amount of tax increment that the agency is authorized to receive from the
1591     overlapping portion of each of the project areas.
1592          (ii) The combined amount of tax increment described in Subsection [(4)] (5)(b)(i) may
1593     not exceed 100% of the tax increment generated from a property located within the overlapping
1594     boundaries.
1595          (c) Nothing in this Subsection [(4) shall give] (5) gives an agency a right to [collect or]
1596     receive [tax increment or sales tax] project area funds that [an] the agency is not otherwise
1597     [entitled to collect] authorized to receive under this title.
1598          (d) The collection of [tax increment or sales tax] project area funds from an
1599     overlapping project area described in Subsection [(4)] (5)(a) does not affect [in any way] an
1600     agency's use of [tax increment or sales tax] project area funds within the other overlapping
1601     project area.
1602          [(5)] (6) With the written consent of a taxing entity, an agency may be paid tax
1603     increment, from [that] the taxing entity's property tax [revenues] revenue only, in a higher
1604     percentage or for a longer period of time, or both, than otherwise authorized under this title.
1605          [(6) (a)] (7) Subject to Section 17C-1-407, an agency is [entitled] authorized to receive
1606     tax increment as [authorized by] described in:
1607          [(i)] (a) for a pre-July 1, 1993, project area plan, Section 17C-1-403;
1608          [(ii)] (b) for a post-June 30, 1993, project area plan:

1609          [(A)] (i) Section 17C-1-404 under a project area budget adopted by the agency in
1610     accordance with this title;
1611          [(B)] (ii) a project area budget approved by the taxing entity committee and adopted by
1612     the agency in accordance with this title; or
1613          [(C)] (iii) Section 17C-1-406; [or]
1614          [(iii)] (c) a resolution or interlocal agreement entered into under Section 17C-2-207,
1615     17C-3-206, 17C-4-201, or 17C-4-202[.];
1616          (d) for a community reinvestment project area plan that is subject to a taxing entity
1617     committee, a project area budget approved by the taxing entity committee and adopted by the
1618     agency in accordance with this title; or
1619          (e) for a community reinvestment project area plan that is subject to an interlocal
1620     agreement, an interlocal agreement entered into under Section 17C-5-204.
1621          [(b) A county that collects property tax on property located within a project area shall
1622     pay and distribute any tax increment:]
1623          [(i) to an agency that the agency is entitled to collect; and]
1624          [(ii) in accordance with Section 59-2-1365.]
1625          Section 33. Section 17C-1-402 is amended to read:
1626          17C-1-402. Taxing entity committee.
1627          [(1) Each agency that adopts or proposes to adopt a post-June 30, 1993, urban renewal
1628     or economic development project area plan shall, and any other agency may, cause a taxing
1629     entity committee to be created.]
1630          (1) The provisions of this section apply to a taxing entity committee that is created by
1631     an agency for:
1632          (a) a post-June 30, 1993, urban renewal project area plan or economic development
1633     project area plan;
1634          (b) any other project area plan adopted before May 10, 2016, for which the agency
1635     created a taxing entity committee; and
1636          (c) a community reinvestment project area plan that is subject to a taxing entity
1637     committee.
1638          (2) (a) (i) Each taxing entity committee shall be composed of:
1639          (A) two school district representatives appointed [as provided in] in accordance with

1640     Subsection (2)(a)(ii);
1641          (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
1642     appointed by resolution of the legislative body of the county in which the agency is located; or
1643          (II) in a county of the first class, one representative appointed by the county executive
1644     and one representative appointed by the legislative body of the county in which the agency is
1645     located;
1646          (C) if the agency [was] is created by a [city or town] municipality, two representatives
1647     appointed by resolution of the legislative body of [that city or town] the municipality;
1648          (D) one representative appointed by the State Board of Education; and
1649          (E) one representative selected by majority vote of the legislative bodies or governing
1650     boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
1651     represent the interests of those taxing entities on the taxing entity committee.
1652          (ii) (A) If the agency boundaries include only one school district, that school district
1653     shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
1654          (B) If the agency boundaries include more than one school district, those school
1655     districts shall jointly appoint the two school district representatives under Subsection
1656     (2)(a)(i)(A).
1657          (b) (i) Each taxing entity committee representative [under] described in Subsection
1658     (2)(a) shall be appointed within 30 days after the day on which the agency provides notice of
1659     the creation of the taxing entity committee.
1660          (ii) If a representative is not appointed within the time required under Subsection
1661     (2)(b)(i), the [agency] board may appoint [a person] an individual to serve on the taxing entity
1662     committee in the place of the missing representative until that representative is appointed.
1663          (c) (i) A taxing entity committee representative may be appointed for a set term or
1664     period of time, as determined by the appointing authority under Subsection (2)(a)(i).
1665          (ii) Each taxing entity committee representative shall serve until a successor is
1666     appointed and qualified.
1667          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
1668     an initial appointment or an appointment to replace an already serving representative, the
1669     appointing authority shall:
1670          (A) notify the agency in writing of the name and address of the newly appointed

1671     representative; and
1672          (B) provide the agency a copy of the resolution making the appointment or, if the
1673     appointment is not made by resolution, other evidence of the appointment.
1674          (ii) Each appointing authority of a taxing entity committee representative under
1675     Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
1676     representative appointed by that appointing authority.
1677          (3) At [its] a taxing entity committee's first meeting, [a] the taxing entity committee
1678     shall adopt an organizing resolution that:
1679          (a) [designating] designates a chair and a secretary of the taxing entity committee; and
1680          (b) if the taxing entity committee considers it appropriate, [governing] governs the use
1681     of electronic meetings under Section 52-4-207.
1682          (4) (a) A taxing entity committee represents all taxing entities regarding:
1683          (i) an urban renewal project area plan; [or]
1684          (ii) an economic development project area[.] plan; or
1685          (iii) a community reinvestment project area plan that is subject to a taxing entity
1686     committee.
1687          (b) A taxing entity committee may:
1688          (i) cast votes that [will be] are binding on all taxing entities;
1689          (ii) negotiate with the agency concerning a [draft] proposed project area plan;
1690          (iii) approve or disapprove:
1691          (A) an urban renewal project area budget as [provided] described in Section
1692     17C-2-204; [or]
1693          (B) an economic development project area budget as [provided] described in Section
1694     17C-3-203; or
1695          (C) for a community reinvestment project area plan that is subject to a taxing entity
1696     committee, a community reinvestment project area budget as described in Section 17C-5-302;
1697          (iv) approve or disapprove [amendments] an amendment to a project area budget as
1698     [provided in:] described in Section 17C-2-206, 17C-3-205, or 17C-5-306;
1699          [(A) Section 17C-2-206 for an urban renewal project area budget; or]
1700          [(B) Section 17C-3-205 for an economic development project area budget;]
1701          (v) approve [exceptions] an exception to the limits on the value and size of a project

1702     area imposed under this title;
1703          (vi) approve:
1704          (A) [exceptions] an exception to the percentage of tax increment to be paid to the
1705     agency;
1706          (B) [the period of time that tax increment is to be paid to the agency] each project area
1707     funds collection period; and
1708          (C) [exceptions] an exception to the requirement for an urban renewal [or] project area
1709     budget, an economic development project area budget, or a community reinvestment project
1710     area budget to include a maximum cumulative dollar amount of tax increment that the agency
1711     may receive;
1712          (vii) approve the use of tax increment for publicly owned infrastructure and
1713     improvements outside of [an urban renewal or economic development] a project area that the
1714     agency and community legislative body determine to be of benefit to the [urban renewal or
1715     economic development] project area, as [provided] described in Subsection
1716     17C-1-409(1)(a)(iii)(D);
1717          (viii) waive the restrictions [imposed by] described in Subsection 17C-2-202(1);
1718          (ix) subject to Subsection (4)(c), designate [in an approved urban renewal or economic
1719     development project area budget] the base taxable value for [that] a project area budget; and
1720          (x) give other taxing entity committee approval or consent required or allowed under
1721     this title.
1722          (c) [The] Unless otherwise approved by a taxing entity committee or an interlocal
1723     agreement, the base year used for calculation of the base taxable value in Subsection (4)(b)(ix)
1724     may not be a year that is earlier than:
1725          (i) the year during which the project area plan [became] becomes effective[.]; or
1726          (ii) five years before the beginning of a project area funds collection period.
1727          (5) A quorum of a taxing entity committee consists of:
1728          (a) if the project area is located within a [city or town] municipality, five members; or
1729          (b) if the project area is not located within a [city or town] municipality, four members.
1730          (6) Taxing entity committee approval, consent, or other action requires:
1731          (a) the affirmative vote of a majority of all members present at a taxing entity
1732     committee meeting:

1733          (i) at which a quorum is present; and
1734          (ii) considering an action relating to a project area budget for, or approval of a finding
1735     of blight within, a project area or proposed project area that contains:
1736          (A) an inactive industrial site;
1737          (B) an inactive airport site; or
1738          (C) a closed military base; or
1739          (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
1740     two-thirds of all members present at a taxing entity committee meeting at which a quorum is
1741     present.
1742          (7) (a) An agency may call a meeting of the taxing entity committee by sending written
1743     notice to the members of the taxing entity committee at least 10 days before the date of the
1744     meeting.
1745          (b) Each notice under Subsection (7)(a) shall be accompanied by:
1746          (i) the proposed agenda for the taxing entity committee meeting; and
1747          (ii) if not previously provided and if [they] the documents exist and are to be
1748     considered at the meeting:
1749          (A) the project area plan or proposed project area plan;
1750          (B) the project area budget or proposed project area budget;
1751          (C) the analysis required under Subsection 17C-2-103(2) [or], 17C-3-103(2), or
1752     17C-5-105(2);
1753          (D) the blight study;
1754          (E) the agency's resolution making a finding of blight under Subsection
1755     17C-2-102(1)(a)(ii)(B) or Subsection 17C-5-402(1)(c)(ii); and
1756          (F) other documents to be considered by the taxing entity committee at the meeting.
1757          (c) (i) An agency may not schedule a taxing entity committee meeting [to meet] on a
1758     day on which the Legislature is in session.
1759          (ii) Notwithstanding Subsection (7)(c)(i), [the] a taxing entity committee may, by
1760     unanimous consent, waive the scheduling restriction described in Subsection (7)(c)(i).
1761          (8) (a) A taxing entity committee may not vote on a proposed project area budget or
1762     proposed amendment to a project area budget at the first meeting at which the proposed project
1763     area budget or amendment is considered unless all members of the taxing entity committee

1764     present at the meeting consent.
1765          (b) A second taxing entity committee meeting to consider a proposed project area
1766     budget or a proposed amendment to a project area budget may not be held within 14 days after
1767     the first meeting unless all members of the taxing entity committee present at the first meeting
1768     consent.
1769          (9) (a) Except as provided in Subsection (9)(b), each taxing entity committee shall
1770     meet at least annually during [the time that the agency receives tax increment] a project area
1771     funds collection period under an urban renewal [or], an economic development, or a
1772     community reinvestment project area budget [in order] to review the status of the project area.
1773          (b) A taxing entity committee is not required [under Subsection (9)(a)] to meet in
1774     accordance with Subsection (9)(a) if the agency [submits] prepares and distributes on or before
1775     November 1 of each year [to the county auditor, the State Tax Commission, the State Board of
1776     Education, and each taxing entity that levies a tax on property from which the agency collects
1777     tax increment, a report containing the following:] a report as described in Section 17C-1-603.
1778          [(i) an assessment of growth of incremental values for each active project area,
1779     including:]
1780          [(A) the base year assessed value;]
1781          [(B) the prior year's assessed value;]
1782          [(C) the estimated current year assessed value for the project area; and]
1783          [(D) a narrative description of the relative growth in assessed value within the project
1784     area;]
1785          [(ii) a description of the amount of tax increment received by the agency and passed
1786     through to other taxing entities from each active project area, including:]
1787          [(A) a comparison of the original forecasted amount of tax increment to actual
1788     receipts;]
1789          [(B) a narrative discussion regarding the use of tax increment; and]
1790          [(C) a description of the benefits derived by the taxing entities;]
1791          [(iii) a description of activity within each active project area, including:]
1792          [(A) a narrative of any significant development activity, including infrastructure
1793     development, site development, and vertical construction within the project area; and]
1794          [(B) a narrative discussion regarding the status of any agreements for development

1795     within the project area;]
1796          [(iv) a revised multi-year tax increment budget related to each active project area,
1797     including:]
1798          [(A) the prior year's tax increment receipts;]
1799          [(B) the base year value and adjusted base year value, as applicable;]
1800          [(C) the applicable tax rates within the project area; and]
1801          [(D) a description of private and public investment within the project area;]
1802          [(v) an estimate of the tax increment to be paid to the agency for the calendar years
1803     ending December 31 and beginning the next January 1; and]
1804          [(vi) any other project highlights included by the agency.]
1805          (10) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
1806     Public Meetings Act.
1807          (11) A taxing entity committee's records shall be:
1808          (a) considered the records of the agency that created the taxing entity committee; and
1809          (b) maintained by the agency in accordance with Section 17C-1-209.
1810          [(11)] (12) Each time a school district representative or a representative of the State
1811     Board of Education votes as a member of a taxing entity committee to allow an agency to [be
1812     paid] receive tax increment [or], to increase the amount [or length of time that an agency may
1813     be paid tax increment] of tax increment the agency receives, or to extend a project area funds
1814     collection period, that representative shall, within 45 days after the vote, provide to the
1815     representative's respective school board an explanation in writing of the representative's vote
1816     and the reasons for the vote.
1817          [(12)] (13) (a) The auditor of each county in which [the] an agency is located shall
1818     provide a written report to the taxing entity committee stating, with respect to property within
1819     each [urban renewal and economic development] project area:
1820          (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408;
1821     and
1822          (ii) the assessed value.
1823          (b) With respect to the information required under Subsection [(12)] (13)(a), the
1824     auditor shall provide:
1825          (i) actual amounts for each year from the adoption of the project area plan to the time

1826     of the report; and
1827          (ii) estimated amounts for each year beginning the year after the time of the report and
1828     ending the time that [the agency expects no longer to be paid tax increment from property
1829     within the urban renewal and economic development project area] each project area funds
1830     collection period ends.
1831          (c) The auditor of the county in which the agency is located shall provide a report
1832     under this Subsection [(12)] (13):
1833          (i) at least annually; and
1834          (ii) upon request of the taxing entity committee, before a taxing entity committee
1835     meeting at which the committee [will consider] considers whether to allow the agency to [be
1836     paid] receive tax increment [or], to increase the amount of tax increment that the agency [may
1837     be paid or the length of time that the agency may be paid tax increment] receives, or to extend a
1838     project area funds collection period.
1839          [(13)] (14) This section does not apply to:
1840          (a) a community development project area plan[.]; or
1841          (b) a community reinvestment project area plan that is subject to an interlocal
1842     agreement.
1843          [(14)] (15) (a) A taxing entity committee resolution[, whether adopted before, on, or
1844     after May 10, 2011,] approving a blight finding, approving a project area budget, or approving
1845     an amendment to a project area budget:
1846          [(a)] (i) is final; and
1847          [(b)] (ii) is not subject to repeal, amendment, or reconsideration unless the agency first
1848     consents by resolution to the proposed repeal, amendment, or reconsideration.
1849          (b) The provisions of Subsection (15)(a) apply regardless of when the resolution is
1850     adopted.
1851          Section 34. Section 17C-1-403 is amended to read:
1852          17C-1-403. Tax increment under a pre-July 1, 1993, project area plan.
1853          (1) Notwithstanding any other provision of law, this section applies retroactively to tax
1854     increment under all pre-July 1, 1993, project area plans, regardless of when the applicable
1855     project area was created or the applicable project area plan was adopted.
1856          (2) (a) Beginning with the first tax year after April 1, 1983, for which an agency

1857     accepts tax increment, an agency is [entitled to be paid] authorized to receive:
1858          (i) (A) for the first through the fifth tax years, 100% of tax increment;
1859          (B) for the sixth through the tenth tax years, 80% of tax increment;
1860          (C) for the eleventh through the fifteenth tax years, 75% of tax increment;
1861          (D) for the sixteenth through the twentieth tax years, 70% of tax increment; and
1862          (E) for the twenty-first through the twenty-fifth tax years, 60% of tax increment; or
1863          (ii) for an agency that has caused a taxing entity committee to be created under
1864     Subsection 17C-1-402(1)(a), any percentage of tax increment up to 100% and for any length of
1865     time that the taxing entity committee approves.
1866          (b) Notwithstanding any other provision of this section:
1867          (i) an agency is [entitled to be paid] authorized to receive 100% of tax increment from
1868     a project area for 32 years after April 1, 1983, to pay principal and interest on agency
1869     indebtedness incurred before April 1, 1983, even though the size of the project area from which
1870     tax increment is paid to the agency exceeds 100 acres of privately owned property under a
1871     project area plan adopted on or before April 1, 1983; and
1872          (ii) for up to 32 years after April 1, 1983, an agency debt incurred before April 1, 1983,
1873     may be refinanced and paid from 100% of tax increment if the principal amount of the debt is
1874     not increased in the refinancing.
1875          (3) (a) For purposes of this Subsection (3), "additional tax increment" means the
1876     difference between 100% of tax increment for a tax year and the amount of tax increment an
1877     agency is paid for that tax year under the percentages and time periods specified in Subsection
1878     (2)(a).
1879          (b) Notwithstanding the tax increment percentages and time periods in Subsection
1880     (2)(a), an agency is [entitled to be paid] authorized to receive additional tax increment for a
1881     period ending 32 years after the first tax year after April 1, 1983, for which the agency receives
1882     tax increment from the project area if:
1883          (i) (A) the additional tax increment is used solely to pay all or part of the value of the
1884     land for and the cost of the installation and construction of a publicly or privately owned
1885     convention center or sports complex or any building, facility, structure, or other improvement
1886     related to the convention center or sports complex, including parking and infrastructure
1887     improvements;

1888          (B) construction of the convention center or sports complex or related building,
1889     facility, structure, or other improvement is commenced on or before June 30, 2002;
1890          (C) the additional tax increment is pledged to pay all or part of the value of the land for
1891     and the cost of the installation and construction of the convention center or sports complex or
1892     related building, facility, structure, or other improvement; and
1893          (D) the [agency] board and the community legislative body have determined by
1894     resolution that the convention center or sports complex is:
1895          (I) within and a benefit to a project area;
1896          (II) not within but still a benefit to a project area; or
1897          (III) within a project area in which substantially all of the land is publicly owned and a
1898     benefit to the community; or
1899          (ii) (A) the additional tax increment is used to pay some or all of the cost of the land
1900     for and installation and construction of a recreational facility, as defined in Section 59-12-702,
1901     or a cultural facility, including parking and infrastructure improvements related to the
1902     recreational or cultural facility, whether or not the facility is located within a project area;
1903          (B) construction of the recreational or cultural facility is commenced on or before
1904     December 31, 2005; and
1905          (C) the additional tax increment is pledged on or before July 1, 2005, to pay all or part
1906     of the cost of the land for and the installation and construction of the recreational or cultural
1907     facility, including parking and infrastructure improvements related to the recreational or
1908     cultural facility.
1909          (c) Notwithstanding Subsection (3)(b)(ii), a school district may not, without [its] the
1910     school district's consent, be paid less tax increment because of application of Subsection
1911     (3)(b)(ii) than it would have been paid without that subsection.
1912          (4) Notwithstanding any other provision of this section, an agency may use tax
1913     increment received under Subsection (2) for any of the uses indicated in Subsection (3).
1914          Section 35. Section 17C-1-404 is amended to read:
1915          17C-1-404. Tax increment under a post-June 30, 1993, project area plan.
1916          (1) This section applies to tax increment under a post-June 30, 1993, project area plan
1917     adopted before May 1, 2006, only.
1918          (2) [An agency] A board may provide in the project area budget for the agency to be

1919     paid:
1920          (a) if 20% of the project area budget is allocated for housing under Section 17C-2-203:
1921          (i) 100% of annual tax increment for 15 years;
1922          (ii) 75% of annual tax increment for 24 years; or
1923          (iii) if approved by the taxing entity committee, any percentage of tax increment up to
1924     100%, or any specified dollar amount, for any period of time; or
1925          (b) if 20% of the project area budget is not allocated for housing under Section
1926     17C-2-203:
1927          (i) 100% of annual tax increment for 12 years;
1928          (ii) 75% of annual tax increment for 20 years; or
1929          (iii) if approved by the taxing entity committee, any percentage of tax increment up to
1930     100%, or any specified dollar amount, for any period of time.
1931          Section 36. Section 17C-1-405 is amended to read:
1932          17C-1-405. Tax increment under a project area plan adopted on or after May 1,
1933     2006.
1934          (1) This section applies to tax increment under a project area plan adopted on or after
1935     May 1, 2006, and before May 10, 2016.
1936          (2) Subject to the approval of the taxing entity committee, [an agency] a board may
1937     provide in the urban renewal or economic development project area budget for the agency to be
1938     paid:
1939          (a) for an urban renewal project area plan that proposes development of an inactive
1940     industrial site or inactive airport site, at least 60% of tax increment for at least 20 years; or
1941          (b) for each other project, any percentage of tax increment up to 100% or any specified
1942     dollar amount of tax increment for any period of time.
1943          (3) A resolution or interlocal agreement relating to an agency's use of tax increment for
1944     a community development project area plan may provide for the agency to be paid any
1945     percentage of tax increment up to 100% or any specified dollar amount of tax increment for
1946     any period of time.
1947          Section 37. Section 17C-1-406 is amended to read:
1948          17C-1-406. Additional tax increment under certain post-June 30, 1993, project
1949     area plans.

1950          (1) This section applies to a post-June 30, 1993, project area plan adopted before May
1951     1, 2006.
1952          (2) An agency may, without the approval of the taxing entity committee, elect to be
1953     paid 100% of annual tax increment for each year beyond the periods specified in Subsection
1954     17C-1-404(2) to a maximum of 25 years, including the years the agency is paid tax increment
1955     under Subsection 17C-1-404(2), if:
1956          (a) for an agency in a city in which is located all or a portion of an interchange on I-15
1957     or that would directly benefit from an interchange on I-15:
1958          (i) the tax increment paid to the agency during the additional years is used to pay some
1959     or all of the cost of the installation, construction, or reconstruction of:
1960          (A) an interchange on I-15, whether or not the interchange is located within a project
1961     area; or
1962          (B) frontage and other roads connecting to the interchange, as determined by the
1963     Department of Transportation created under Section 72-1-201 and the Transportation
1964     Commission created under Section 72-1-301, whether or not the frontage or other road is
1965     located within a project area; and
1966          (ii) the installation, construction, or reconstruction of the interchange or frontage and
1967     other roads has begun on or before June 30, 2002; or
1968          (b) for an agency in a city of the first or second class:
1969          (i) the tax increment paid to the agency during the additional years is used to pay some
1970     or all of the cost of the land for and installation and construction of a recreational facility, as
1971     defined in Section 59-12-702, or a cultural facility, including parking and infrastructure
1972     improvements related to the recreational or cultural facility, whether or not the facility is
1973     located within a project area; and
1974          (ii) the installation or construction of the recreational or cultural facility has begun on
1975     or before June 30, 2002.
1976          (3) Notwithstanding any other provision of this section, an agency may use tax
1977     increment received under Subsection 17C-1-404(2) for any of the uses indicated in this section.
1978          (4) Notwithstanding Subsection (2), a school district may not, without [its] the school
1979     district's consent, receive less tax increment because of application of Subsection (2) than it
1980     would have received without that subsection.

1981          Section 38. Section 17C-1-407 is amended to read:
1982          17C-1-407. Limitations on tax increment.
1983          (1) (a) If the development of retail sales [of goods] is the primary objective of an urban
1984     renewal project area, tax increment from the urban renewal project area may not be paid to or
1985     used by an agency unless a finding of blight is made under Chapter 2, Part 3, Blight
1986     Determination in Urban Renewal Project Areas.
1987          (b) Development of retail sales [of goods] does not disqualify an agency from receiving
1988     tax increment.
1989          (c) After July 1, 2005, an agency may not [be paid] receive or use tax increment
1990     generated from the value of property within an economic development project area that is
1991     attributable to the development of retail sales [of goods], unless the tax increment was
1992     previously pledged to pay for bonds or other contractual obligations of the agency.
1993          (2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from
1994     an increase in the taxing entity's tax rate that occurs after the taxing entity committee approves
1995     the project area budget unless, at the time the taxing entity committee approves the project area
1996     budget, the taxing entity committee approves payment of those increased taxes to the agency.
1997          (b) If the taxing entity committee does not approve [of] payment of the increased taxes
1998     to the agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxes
1999     attributable to the tax rate increase in the same manner as other property taxes.
2000          (c) Notwithstanding any other provision of this section, if, [prior to] before tax year
2001     2013, increased taxes are paid to an agency without the approval of the taxing entity
2002     committee, and notwithstanding the law at the time that the tax was collected or increased:
2003          (i) the State Tax Commission, the county as the collector of the taxes, a taxing entity,
2004     or any other person or entity may not recover, directly or indirectly, the increased taxes from
2005     the agency by adjustment of a tax rate used to calculate tax increment or otherwise;
2006          (ii) the county is not liable to a taxing entity or any other person or entity for the
2007     increased taxes that were paid to the agency; and
2008          (iii) tax increment, including the increased taxes, shall continue to be paid to the
2009     agency subject to the same number of tax years, percentage of tax increment, and cumulative
2010     dollar amount of tax increment as approved in the project area budget and previously paid to
2011     the agency.

2012          (3) Except as the taxing entity committee otherwise agrees, an agency may not receive
2013     tax increment under an urban renewal or economic development project area budget adopted
2014     on or after March 30, 2009:
2015          (a) that exceeds the percentage of tax increment or cumulative dollar amount of tax
2016     increment specified in the project area budget; or
2017          (b) for more tax years than specified in the project area budget.
2018          Section 39. Section 17C-1-408 is amended to read:
2019          17C-1-408. Base taxable value to be adjusted to reflect other changes.
2020          (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
2021          (A) a decrease of more than 20% from the previous tax year's levy; or
2022          (B) a cumulative decrease over a consecutive five-year period of more than 100% from
2023     the levy in effect at the beginning of the five-year period.
2024          (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
2025     fifth year of the five-year period.
2026          (b) If there is a qualifying decrease in the minimum basic school levy under Section
2027     59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
2028     agency:
2029          (i) the base taxable value [of taxable property within the project area] shall be reduced
2030     in the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
2031     agency with approximately the same amount of tax increment that would have been paid to the
2032     agency each year had the qualifying decrease not occurred; and
2033          (ii) the amount of tax increment paid to the agency each year for the payment of bonds
2034     and indebtedness may not be less than what would have been paid to the agency if there had
2035     been no qualifying decrease.
2036          (2) (a) The [amount of the] base taxable value to be used in determining tax increment
2037     shall be:
2038          (i) increased or decreased by the amount of an increase or decrease that results from:
2039          (A) a statute enacted by the Legislature or by the people through an initiative;
2040          (B) a judicial decision;
2041          (C) an order from the State Tax Commission to a county to adjust or factor [its] the
2042     county's assessment rate under Subsection 59-2-704(2);

2043          (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
2044     Section 59-2-103; or
2045          (E) an increase or decrease in the percentage of fair market value, as defined under
2046     Section 59-2-102; and
2047          (ii) reduced for any year to the extent necessary, even if below zero, to provide an
2048     agency with approximately the same amount of money the agency would have received without
2049     a reduction in the county's certified tax rate if:
2050          (A) in that year there is a decrease in the county's certified tax rate under Subsection
2051     59-2-924.2(2) or (3)(a);
2052          (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
2053     previous year; and
2054          (C) the decrease would result in a reduction of the amount of tax increment to be paid
2055     to the agency.
2056          (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
2057     increment paid to an agency each year for payment of bonds or other indebtedness may not be
2058     less than would have been paid to the agency each year if there had been no increase or
2059     decrease under Subsection (2)(a).
2060          Section 40. Section 17C-1-409 is amended to read:
2061          17C-1-409. Allowable uses of agency funds.
2062          (1) (a) An agency may use [tax increment and sales tax proceeds received from a
2063     taxing entity] agency funds:
2064          (i) for any [of the purposes for which the use of tax increment is] purpose authorized
2065     under this title;
2066          (ii) for administrative, overhead, legal, [and] or other operating expenses of the agency,
2067     including consultant fees and expenses under Subsection 17C-2-102(1)(b)(ii)(B) or funding for
2068     a business resource center;
2069          (iii) to pay for, including financing or refinancing, all or part of:
2070          (A) [urban renewal activities] project area development in [the] a project area [from
2071     which the tax increment funds are collected], including environmental remediation activities
2072     occurring before or after adoption of the project area plan;
2073          [(B) economic development or community development activities, including

2074     environmental remediation activities occurring before or after adoption of the project area plan,
2075     in the project area from which the tax increment funds are collected;]
2076          [(C) housing] (B) housing-related expenditures, projects, or programs as [provided]
2077     described in Section 17C-1-411 or 17C-1-412;
2078          (C) an incentive or other consideration paid to a participant under a participation
2079     agreement;
2080          (D) subject to Subsections (1)(c) and [(6)] (4), the value of the land for and the cost of
2081     the installation and construction of any publicly owned building, facility, structure,
2082     landscaping, or other improvement within the project area from which the [tax increment]
2083     project area funds [were] are collected; [and] or
2084          (E) [subject to Subsection (1)(d),] the cost of the installation of publicly owned
2085     infrastructure and improvements outside the project area from which the [tax increment]
2086     project area funds [were] are collected if the [agency] board and the community legislative
2087     body determine by resolution that the publicly owned infrastructure and improvements [are of]
2088     benefit [to] the project area; or
2089          (iv) in an urban renewal project area that includes some or all of an inactive industrial
2090     site and subject to Subsection (1)[(f)](e), to reimburse the Department of Transportation
2091     created under Section 72-1-201, or a public transit district created under Title 17B, Chapter 2a,
2092     Part 8, Public Transit District Act, for the cost of:
2093          (A) construction of a public road, bridge, or overpass;
2094          (B) relocation of a railroad track within the urban renewal project area; or
2095          (C) relocation of a railroad facility within the urban renewal project area.
2096          (b) The determination of the [agency] board and the community legislative body under
2097     Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
2098          (c) An agency may not use [tax increment or sales tax proceeds] project area funds
2099     received from a taxing entity for the purposes stated in Subsection (1)(a)(iii)(D) under an urban
2100     renewal [or] project area plan, an economic development project area plan, or a community
2101     reinvestment project area plan without [the consent of] the community legislative [body] body's
2102     consent.
2103          [(d) An agency may not use tax increment or sales tax proceeds received from a taxing
2104     entity for the purposes stated in Subsection (1)(a)(iii)(E) under an urban renewal or economic

2105     development project area plan without the consent of the community legislative body and the
2106     taxing entity committee.]
2107          [(e)] (d) (i) Subject to Subsection (1)[(e)](d)(ii), an agency may loan [tax increment or
2108     sales tax proceeds, or a combination of tax increment and sales tax proceeds,] project area
2109     funds from a project area fund to another project area fund if:
2110          (A) the [agency's] board approves; and
2111          (B) the community legislative body [of each community that created the agency]
2112     approves.
2113          (ii) An agency may not loan [tax increment or sales tax proceeds, or a combination of
2114     tax increment and sales tax proceeds,] project area funds under Subsection (1)[(e)](d)(i) unless
2115     the projections for [the future tax increment or sales tax proceeds of the borrowing project
2116     area] agency funds are sufficient to repay the loan amount [prior to when the tax increment or
2117     sales tax proceeds are intended for use under the loaning project area's plan].
2118          [(iii) If a borrowing project area's funds are not sufficient to repay a loan made under
2119     Subsection (1)(e)(i) prior to when the tax increment or sales tax proceeds are intended for use
2120     under the loaning project area's plan, the community that created the agency shall repay the
2121     loan to the loaning project area's fund prior to when the tax increment or sales tax proceeds are
2122     intended for use under the loaning project area's plan, unless the taxing entity committee adopts
2123     a resolution to waive this requirement.]
2124          (iii) A loan described in Subsection (1)(d) is not subject to Title 10, Chapter 5,
2125     Uniform Fiscal Procedures Act for Utah Towns, Title 10, Chapter 6, Uniform Fiscal
2126     Procedures Act for Utah Cities, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local
2127     Districts.
2128          [(f)] (e) Before an agency may pay any tax increment or sales tax revenue under
2129     Subsection (1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of
2130     the reimbursement with:
2131          (i) the Department of Transportation; or
2132          (ii) a public transit district.
2133          (2) [Sales tax proceeds] (a) Sales and use tax revenue that an agency receives from
2134     [another public entity are] a taxing entity is not subject to the prohibition or limitations of Title
2135     11, Chapter 41, Prohibition on Sales and Use Tax Incentive Payments Act.

2136          [(3)] (b) An agency may use [sales tax proceeds it] sales and use tax revenue that the
2137     agency receives under [a resolution or] an interlocal agreement under Section 17C-4-201 or
2138     17C-5-204 for the uses authorized in the [resolution or] interlocal agreement.
2139          [(4)] (3) (a) An agency may contract with the community that created the agency or
2140     another public entity to use [tax increment] agency funds to reimburse the cost of items
2141     authorized by this title to be paid by the agency that [have been or will be] are paid by the
2142     community or other public entity.
2143          (b) If land [has been or will be] is acquired or the cost of an improvement [has been or
2144     will be] is paid by another public entity and the land or improvement [has been or will be] is
2145     leased to the community, an agency may contract with and make reimbursement from [tax
2146     increment] agency funds to the community.
2147          [(5) An agency created by a city of the first or second class may use tax increment from
2148     one project area in another project area to pay all or part of the value of the land for and the
2149     cost of the installation and construction of a publicly or privately owned convention center or
2150     sports complex or any building, facility, structure, or other improvement related to the
2151     convention center or sports complex, including parking and infrastructure improvements, if:]
2152          [(a) construction of the convention center or sports complex or related building,
2153     facility, structure, or other improvement is commenced on or before December 31, 2012; and]
2154          [(b) the tax increment is pledged to pay all or part of the value of the land for and the
2155     cost of the installation and construction of the convention center or sports complex or related
2156     building, facility, structure, or other improvement.]
2157          [(6) Notwithstanding any other provision of this title, an agency may not use tax
2158     increment to construct municipal buildings unless the taxing entity committee adopts a
2159     resolution to waive this requirement.]
2160          [(7) Notwithstanding any other provision of this title, an agency may not use tax
2161     increment under an urban renewal or economic development project area plan, to pay any of
2162     the cost of the land, infrastructure, or construction of a stadium or arena constructed after
2163     March 1, 2005, unless the tax increment has been pledged for that purpose before February 15,
2164     2005.]
2165          [(8) (a) An agency may not use tax increment to pay the debt service of or any other
2166     amount related to a bond issued or other obligation incurred if the bond was issued or the

2167     obligation was incurred:]
2168          [(i) by an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation
2169     Act;]
2170          [(ii) on or after March 30, 2009; and]
2171          [(iii) to finance a telecommunication facility.]
2172          [(b) Subsection (8)(a) may not be construed to prohibit the refinancing, restatement, or
2173     refunding of a bond issued before March 30, 2009.]
2174          (4) Notwithstanding any other provision of this title, an agency may not use project
2175     area funds to construct a local government building unless the taxing entity committee or each
2176     taxing entity party to the interlocal agreement with the agency consents.
2177          Section 41. Section 17C-1-410 is amended to read:
2178          17C-1-410. Agency may make payments to other taxing entities.
2179          (1) Subject to Subsection (3), an agency may grant [tax increment or other] agency
2180     funds to a taxing entity to offset some or all of the tax [revenues] revenue that the taxing entity
2181     did not receive because of tax increment paid to the agency.
2182          (2) (a) Subject to Subsection (3), an agency may use [tax increment or other] agency
2183     funds to pay to a school district an amount of money that the agency determines to be
2184     appropriate to alleviate a financial burden or detriment borne by the school district because of
2185     the [urban renewal, economic development, or community] project area development.
2186          (b) Each agency that agrees to pay money to a school district under [the authority of]
2187     Subsection (2)(a) shall provide a copy of [that] the agreement to the State Board of Education.
2188          (3) (a) If an agency intends to pay agency funds to one or more taxing entities under
2189     Subsection (1) or (2) but does not intend to pay funds to all taxing entities in proportionally
2190     equal amounts, the agency shall provide written notice to each taxing entity of [its] the agency's
2191     intent.
2192          (b) (i) A taxing entity [receiving] that receives notice under Subsection (3)(a) may elect
2193     not to have [its] the taxing entity's tax increment collected and used to pay funds to other taxing
2194     entities under this section.
2195          (ii) Each election under Subsection (3)(b)(i) shall be:
2196          (A) in writing; and
2197          (B) delivered to the agency within 30 days after the taxing entity's receipt of the notice

2198     under Subsection (3)(a).
2199          (c) If a taxing entity makes an election under Subsection (3)(b), the portion of [that] the
2200     taxing entity's tax increment that would have been used by the agency to pay funds under this
2201     section to one or more other taxing entities may not be collected by the agency.
2202          Section 42. Section 17C-1-411 is amended to read:
2203          17C-1-411. Use of project area funds for housing-related improvements and for
2204     relocating mobile home park residents -- Funds to be held in separate accounts.
2205          (1) An agency may use project area funds:
2206          (a) [use tax increment from a project area] to pay all or part of the value of the land for
2207     and the cost of installation, construction, [and] or rehabilitation of any housing-related
2208     building, facility, structure, or other housing improvement, including infrastructure
2209     improvements related to housing, located in any project area within the agency's boundaries;
2210     [and]
2211          (b) [use up to 20% of tax increment: (i)] outside of [project areas] a project area for the
2212     purpose of:
2213          [(A)] (i) replacing housing units lost by [urban renewal, economic development, or
2214     community] project area development; or
2215          [(B)] (ii) increasing, improving, [and] or preserving [generally] the affordable housing
2216     supply within the boundary of the agency; or
2217          [(ii)] (c) for relocating mobile home park residents displaced by project area
2218     development, whether inside or outside a project area.
2219          (2) (a) Each agency shall create a housing fund and separately account for [funds]
2220     project area funds allocated under this section.
2221          (b) Interest earned by the housing fund described in Subsection (2)(a), and any
2222     payments or repayments made to the agency for loans, advances, or grants of any kind from the
2223     housing fund, shall accrue to the housing fund.
2224          (c) [Each] An agency [designating] that designates a housing fund under this section
2225     shall use the housing fund for[: (i)] the purposes set forth in this section[;] or Section
2226     17C-1-412.
2227          [(ii) the purposes set forth in this title relating to the urban renewal, economic
2228     development, or community development project area from which the funds originated.]

2229          (3) An agency may lend, grant, or contribute funds from the housing fund to a person,
2230     public entity, housing authority, private entity or business, or nonprofit corporation for
2231     affordable housing or homeless assistance.
2232          Section 43. Section 17C-1-412 is amended to read:
2233          17C-1-412. Use of housing allocation -- Separate accounting required -- Issuance
2234     of bonds for housing -- Action to compel agency to provide housing allocation.
2235          (1) (a) [Each] An agency shall use [all funds allocated for housing under Section
2236     17C-2-203 or 17C-3-202] the agency's housing allocation, if applicable, to:
2237          (i) pay part or all of the cost of land or construction of income targeted housing within
2238     the boundary of the agency, if practicable in a mixed income development or area;
2239          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
2240     boundary of the agency;
2241          (iii) lend, grant, or contribute money to a person, public entity, housing authority,
2242     private entity or business, or nonprofit corporation for income targeted housing within the
2243     boundary of the agency;
2244          (iv) plan or otherwise promote income targeted housing within the boundary of the
2245     agency;
2246          (v) pay part or all of the cost of land or installation, construction, or rehabilitation of
2247     any building, facility, structure, or other housing improvement, including infrastructure
2248     improvements, related to housing located in a project area where blight has been found to exist;
2249          (vi) replace housing units lost as a result of the [urban renewal, economic development,
2250     or community] project area development;
2251          (vii) make payments on or establish a reserve fund for bonds:
2252          (A) issued by the agency, the community, or the housing authority that provides
2253     income targeted housing within the community; and
2254          (B) all or part of the proceeds of which are used within the community for the purposes
2255     stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
2256          (viii) if the community's fair share ratio at the time of the first adoption of the project
2257     area budget is at least 1.1 to 1.0, make payments on bonds:
2258          (A) that were previously issued by the agency, the community, or the housing authority
2259     that provides income targeted housing within the community; and

2260          (B) all or part of the proceeds of which were used within the community for the
2261     purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi); or
2262          (ix) relocate mobile home park residents displaced by [an urban renewal, economic
2263     development, or community development project] project area development.
2264          (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
2265     any portion of the agency's housing [funds] allocation to:
2266          (i) the community for use as [provided under] described in Subsection (1)(a);
2267          (ii) [the] a housing authority that provides income targeted housing within the
2268     community for use in providing income targeted housing within the community; [or]
2269          (iii) a housing authority established by the county in which the agency is located for
2270     providing:
2271          (A) income targeted housing within the county;
2272          (B) permanent housing, permanent supportive housing, or a transitional facility, as
2273     defined in Section 35A-5-302, within the county; or
2274          (C) homeless assistance within the county; or
2275          [(iii)] (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter
2276     8, Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing
2277     within the community.
2278          (2) The agency [or community] shall create a housing fund and separately account for
2279     the agency's housing [funds] allocation, together with all interest earned by the housing [funds]
2280     allocation and all payments or repayments for loans, advances, or grants from the housing
2281     [funds] allocation.
2282          (3) An agency may:
2283          (a) issue bonds [from time to time] to finance a [housing undertaking] housing-related
2284     project under this section, including the payment of principal and interest upon advances for
2285     surveys and plans or preliminary loans; and
2286          (b) issue refunding bonds for the payment or retirement of bonds under Subsection
2287     (3)(a) previously issued by the agency.
2288          [(4) An agency:]
2289          (4) (a) Except as provided in Subsection (4)(b), an agency shall allocate [housing
2290     funds] money to the housing fund each year in which the agency receives sufficient tax

2291     increment to make a housing allocation required by the project area budget[; and].
2292          (b) [is relieved, to the extent tax increment is insufficient in a year, of an obligation to
2293     allocate housing funds for the year] Subsection (4)(a) does not apply in a year in which tax
2294     increment is insufficient.
2295          (5) (a) Except as provided in Subsection (4)(b), if an agency fails to provide a housing
2296     [funds] allocation in accordance with the project area budget and, if applicable, the housing
2297     plan adopted under Subsection 17C-2-204(2), the loan fund board may bring legal action to
2298     compel the agency to provide the housing [funds] allocation.
2299          (b) In an action under Subsection (5)(a), the court:
2300          (i) shall award the loan fund board reasonable attorney fees, unless the court finds that
2301     the action was frivolous; and
2302          (ii) may not award the agency [its] the agency's attorney fees, unless the court finds that
2303     the action was frivolous.
2304          Section 44. Section 17C-1-413 is amended to read:
2305          17C-1-413. Base taxable value for new tax.
2306          For purposes of calculating tax increment with respect to a tax that a taxing entity levies
2307     for the first time after the effective date of [the] a project area plan, the base taxable value shall
2308     be used, subject to any adjustments under Section 17C-1-408.
2309          Section 45. Section 17C-1-501.1 is enacted to read:
2310     
Part 5. Agency Bonds

2311          17C-1-501.1. Title.
2312          This part is known as "Agency Bonds."
2313          Section 46. Section 17C-1-501.5, which is renumbered from Section 17C-1-501 is
2314     renumbered and amended to read:
2315          [17C-1-501].      17C-1-501.5. Resolution authorizing issuance of agency
2316     bonds -- Characteristics of bonds.
2317          (1) An agency may not issue [bonds] a bond under this part unless the [agency] board
2318     first adopts a resolution authorizing [their] the bond issuance.
2319          (2) (a) As provided in the agency resolution authorizing the issuance of [bonds] a bond
2320     under this part or the trust indenture under which the [bonds are] bond is issued, [bonds] a
2321     bond issued under this part may be issued in one or more series and may be sold at public or

2322     private sale and in the manner provided in the resolution or indenture.
2323          (b) [Bonds] A bond issued by an agency under this part shall bear the date, be payable
2324     at the time, bear interest at the rate, be in the denomination and in the form, carry the
2325     conversion or registration privileges, have the rank or priority, be executed in the manner, be
2326     subject to the terms of redemption or tender, with or without premium, be payable in the
2327     medium of payment and at the place, and have other characteristics as provided in the agency
2328     resolution authorizing [their] the bond issuance or the trust indenture under which [they are]
2329     the bond is issued.
2330          Section 47. Section 17C-1-502 is amended to read:
2331          17C-1-502. Sources from which bonds may be made payable -- Agency powers
2332     regarding bonds.
2333          (1) The principal and interest on [bonds] a bond issued by an agency may be [made
2334     payable] paid from:
2335          (a) the income and revenues of the [projects] project area development financed with
2336     the proceeds of the [bonds] bond;
2337          (b) the income and [revenues] revenue of certain designated [projects whether or not
2338     they were] project area development regardless of whether the project area development is
2339     financed in whole or in part with the proceeds of the [bonds] bond;
2340          (c) the income, proceeds, [revenues] revenue, property, [and funds of the] or agency
2341     funds derived from or held in connection with [its] the agency's undertaking and [carrying out
2342     urban renewal, economic development, or community] implementation of project area
2343     development;
2344          (d) [tax increment] project area funds;
2345          (e) agency revenues generally;
2346          (f) a contribution, loan, grant, or other financial assistance from [the federal
2347     government or] a public entity in aid of [urban renewal, economic development, or community]
2348     project area development; or
2349          (g) funds derived from any combination of the methods listed in Subsections (1)(a)
2350     through (f).
2351          (2) In connection with the issuance of [agency bonds] an agency bond, an agency may:
2352          (a) pledge all or any part of [its] the agency's gross or net rents, fees, or revenues to

2353     which [its] the agency's right then exists or may thereafter come into existence;
2354          (b) encumber by mortgage, deed of trust, or otherwise all or any part of [its] the
2355     agency's real or personal property, then owned or thereafter acquired; and
2356          (c) make the covenants and take the action that:
2357          (i) may be necessary, convenient, or desirable to secure [its bonds, or,] the bond; or
2358          (ii) except as otherwise provided in this chapter, [that] will tend to make the [bonds]
2359     bond more marketable, even though such covenants or actions are not specifically enumerated
2360     in this chapter.
2361          Section 48. Section 17C-1-504 is amended to read:
2362          17C-1-504. Contesting the legality of resolution authorizing bonds -- Time limit --
2363     Presumption.
2364          (1) Any person may contest the legality of the resolution authorizing issuance of the
2365     [bonds] bond or any provisions for the security and payment of the [bonds] bond for a period of
2366     30 days after:
2367          (a) publication of the resolution authorizing the [bonds] bond; or
2368          (b) publication of a notice of [bonds] bond containing substantially the items required
2369     under Subsection 11-14-316(2).
2370          (2) After the 30-day period [under] described in Subsection (1), no person may bring a
2371     lawsuit or other proceeding [may be brought] contesting the regularity, formality, or legality of
2372     the [bonds] bond for any reason.
2373          (3) In a lawsuit or other proceeding involving the question of whether a bond issued
2374     under this part is valid or enforceable or involving the security for a bond, if a bond recites that
2375     the agency issued the bond in connection with [an urban renewal, economic development, or
2376     community development project] project area development:
2377          (a) the bond shall be conclusively presumed to have been issued for that purpose; and
2378          (b) the project area plan and project area shall be conclusively presumed to have been
2379     properly formed, adopted, planned, located, and [carried out] implemented in accordance with
2380     this title.
2381          Section 49. Section 17C-1-505 is amended to read:
2382          17C-1-505. Authority to purchase agency bonds.
2383          (1) Any person, firm, corporation, association, political subdivision of the state, or

2384     other entity or public or private officer may purchase [bonds] a bond issued by an agency under
2385     this part with funds owned or controlled by the purchaser.
2386          (2) Nothing in this section may be construed to relieve a purchaser of [agency bonds]
2387     an agency bond of any duty to exercise reasonable care in selecting securities.
2388          Section 50. Section 17C-1-506 is amended to read:
2389          17C-1-506. Those executing bonds not personally liable -- Limitation of
2390     obligations under bonds -- Negotiability.
2391          (1) A member of [an agency] a board or other person executing an agency bond is not
2392     liable personally on the bond.
2393          (2) (a) A bond issued by an agency is not a general obligation or liability of the
2394     community, the state, or any of [its] the state's political subdivisions and does not constitute a
2395     charge against their general credit or taxing powers.
2396          (b) A bond issued by an agency is not payable out of any funds or properties other than
2397     those of the agency.
2398          (c) The community, the state, and [its] the state's political subdivisions may not be
2399     liable on a bond issued by an agency.
2400          (d) A bond issued by an agency does not constitute indebtedness within the meaning of
2401     any constitutional or statutory debt limitation.
2402          (3) A bond issued by an agency under this part is fully negotiable.
2403          Section 51. Section 17C-1-507 is amended to read:
2404          17C-1-507. Obligee rights -- Board may confer other rights.
2405          (1) In addition to all other rights that are conferred on an obligee of a bond issued by an
2406     agency under this part and subject to contractual restrictions binding on the obligee, an obligee
2407     may:
2408          (a) by mandamus, suit, action, or other proceeding, compel an agency and [its] the
2409     agency's board, officers, agents, or employees to perform every term, provision, and covenant
2410     contained in any contract of the agency with or for the benefit of the obligee, and require the
2411     agency to carry out the covenants and agreements of the agency and to fulfill all duties imposed
2412     on the agency by this part; and
2413          (b) by suit, action, or other proceeding [in equity], enjoin any acts or things that may be
2414     unlawful or violate the rights of the obligee.

2415          (2) (a) In a board resolution authorizing the issuance of [bonds] a bond or in a trust
2416     indenture, mortgage, lease, or other contract, [an agency] a board may confer upon an obligee
2417     holding or representing a specified amount in bonds, the rights described in Subsection (2)(b),
2418     to accrue upon the happening of an event or default prescribed in the resolution, indenture,
2419     mortgage, lease, or other contract, and to be exercised by suit, action, or proceeding in any
2420     court of competent jurisdiction.
2421          (b) (i) The rights that the board may confer under Subsection (2)(a) are the rights to:
2422          (A) cause possession of all or part of [an urban renewal, economic development, or
2423     community development project] the project area development to be surrendered to an obligee;
2424          (B) obtain the appointment of a receiver of all or part of an agency's [urban renewal,
2425     economic development, or community development project] project area development and of
2426     the rents and profits from [it] the project area development; and
2427          (C) require the agency and [its] the board and employees to account as if the agency
2428     and the board and employees were the trustees of an express trust.
2429          (ii) If a receiver is appointed through the exercise of a right granted under Subsection
2430     (2)(b)(i)(B), the receiver:
2431          (A) may enter and take possession of the [urban renewal, economic development, or
2432     community development project] project area development or any part of [it] the project area
2433     development, operate and maintain [it] the project area development, and collect and receive
2434     all fees, rents, revenues, or other charges arising from [it] the project area development after the
2435     receiver's appointment; and
2436          (B) shall keep money collected as receiver for the agency in [separate accounts] a
2437     separate account and apply [it] the money pursuant to the agency obligations as the court
2438     directs.
2439          Section 52. Section 17C-1-508 is amended to read:
2440          17C-1-508. Bonds exempt from taxes -- Agency may purchase an agency's own
2441     bonds.
2442          (1) A bond issued by an agency under this part is issued for an essential public and
2443     governmental purpose and is, together with interest on the bond and income from it, exempt
2444     from all state taxes except the corporate franchise tax.
2445          (2) An agency may purchase [its] the agency's own bonds at a price that [its] the board

2446     determines.
2447          (3) Nothing in this section may be construed to limit the right of an obligee to pursue a
2448     remedy for the enforcement of a pledge or lien given under this part by an agency on [its] the
2449     agency's rents, fees, grants, properties, or revenues.
2450          Section 53. Section 17C-1-601.1 is enacted to read:
2451     
Part 6. Agency Annual Report, Budget, and Audit Requirements

2452          17C-1-601.1. Title.
2453          This part is known as "Agency Annual Report, Budget, and Audit Requirements."
2454          Section 54. Section 17C-1-601.5, which is renumbered from Section 17C-1-601 is
2455     renumbered and amended to read:
2456          [17C-1-601].      17C-1-601.5. Annual agency budget -- Fiscal year -- Public
2457     hearing required -- Auditor forms -- Requirement to file form.
2458          (1) Each agency shall prepare [and its board adopt] an annual budget of the agency's
2459     revenues and expenditures [for the agency] for each fiscal year.
2460          (2) [Each annual agency budget shall be adopted] The board shall adopt each agency
2461     budget:
2462          (a) for an agency created by a [city or town] municipality, before June 22; or
2463          (b) for an agency created by a county, before December 15.
2464          (3) The agency's fiscal year shall be the same as the fiscal year of the community that
2465     created the agency.
2466          (4) (a) Before adopting an annual budget, each [agency] board shall hold a public
2467     hearing on the annual budget.
2468          (b) Each agency shall provide notice of the public hearing on the annual budget by:
2469          (i) (A) publishing at least one notice in a newspaper of general circulation within the
2470     agency boundaries, one week before the public hearing; or
2471          (B) if there is no newspaper of general circulation within the agency boundaries,
2472     posting a notice of the public hearing in at least three public places within the agency
2473     boundaries; and
2474          (ii) publishing notice on the Utah Public Notice Website created in Section 63F-1-701,
2475     at least one week before the public hearing.
2476          (c) Each agency shall make the annual budget available for public inspection at least

2477     three days before the date of the public hearing.
2478          (5) The state auditor shall prescribe the budget forms and the categories to be contained
2479     in each [agency] annual budget, including:
2480          (a) revenues and expenditures for the budget year;
2481          (b) legal fees; and
2482          (c) administrative costs, including rent, supplies, and other materials, and salaries of
2483     agency personnel.
2484          (6) (a) Within 90 days after adopting an annual budget, each [agency] board shall file a
2485     copy of the annual budget with the auditor of the county in which the agency is located, the
2486     State Tax Commission, the state auditor, the State Board of Education, and each taxing entity
2487     [that levies a tax on property] from which the agency [collects tax increment] receives project
2488     area funds.
2489          (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
2490     state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
2491     state auditor.
2492          Section 55. Section 17C-1-602 is amended to read:
2493          17C-1-602. Amending the agency annual budget.
2494          (1) [An agency] A board may by resolution amend an annual [agency] budget.
2495          (2) An amendment [of the] to an annual [agency] budget that would increase the total
2496     expenditures may be made only after a public hearing [by notice published as required for
2497     initial adoption of the annual budget] is held in accordance with Subsection 17C-1-601.5(4).
2498          (3) An agency may not make expenditures in excess of the total expenditures
2499     established in the annual budget as [it] the annual budget is adopted or amended.
2500          Section 56. Section 17C-1-603 is amended to read:
2501          17C-1-603. Annual report.
2502          [(1) (a) Unless an agency submits a report to the county auditor, the State Tax
2503     Commission, the State Board of Education, and each taxing entity that levies a tax on property
2504     from which the agency collects tax increment as provided under Subsection 17C-1-402(9)(b),
2505     on or before November 1 of each year, each agency shall prepare and file a report with the
2506     county auditor, the State Tax Commission, the State Board of Education, and each taxing entity
2507     that levies a tax on property from which the agency collects tax increment.]

2508          [(b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
2509     taxing entity is met if the agency files a copy with the State Tax Commission and the state
2510     auditor.]
2511          [(2) Each report under Subsection (1) shall contain:]
2512          [(a) an estimate of the tax increment to be paid to the agency for the calendar year
2513     ending December 31;]
2514          [(b) an estimate of the tax increment to be paid to the agency for the calendar year
2515     beginning the next January 1;]
2516          [(c) a narrative description of each active project area within the agency's boundaries;]
2517          [(d) a narrative description of any significant activity related to each active project area
2518     that occurred during the immediately preceding fiscal year;]
2519          [(e) a summary description of the overall project timeline for each active project area;]
2520          [(f) any other information specifically requested by the taxing entity committee or
2521     required by the project area plan or budget; and]
2522          [(g) any other information included by the agency.]
2523          (1) Beginning in 2016, on or before November 1 of each year, an agency shall:
2524          (a) prepare an annual report as described in Subsection (2); and
2525          (b) submit the annual report electronically to the county auditor, the State Tax
2526     Commission, the State Board of Education, and each taxing entity from which the agency
2527     receives project area funds.
2528          (2) The annual report shall, for each active project area, contain the following
2529     information:
2530          (a) an assessment of the change in marginal value, including:
2531          (i) the base taxable value;
2532          (ii) the prior year's assessed value;
2533          (iii) the estimated current assessed value; and
2534          (iv) a narrative description of the relative growth in assessed value;
2535          (b) the amount of project area funds the agency received, including:
2536          (i) a comparison of the actual project area funds received for the previous year to the
2537     amount of project area funds forecasted when the project area was created, if available;
2538          (ii) (A) the agency's historical receipts of project area funds, including the tax year for

2539     which the agency first received project area funds from the project area; or
2540          (B) if the agency has not yet received project area funds from the project area, the year
2541     in which the agency expects each project area funds collection period to begin;
2542          (iii) a list of each taxing entity that levies or imposes a tax within the project area and a
2543     description of the benefits that each taxing entity receives from the project area; and
2544          (iv) the amount paid to other taxing entities under Section 17C-1-410, if applicable;
2545          (c) a description of current and anticipated project area development, including:
2546          (i) a narrative of any significant project area development, including infrastructure
2547     development, site development, participation agreements, or vertical construction; and
2548          (ii) other details of development within the project area, including total developed
2549     acreage and total undeveloped acreage;
2550          (d) the project area budget , if applicable, or other project area funds analysis,
2551     including:
2552          (i) each project area funds collection period;
2553          (ii) the number of years remaining in each project area funds collection period;
2554          (iii) the total amount of project area funds the agency is authorized to receive from the
2555     project area cumulatively and from each taxing entity; and
2556          (iv) the remaining amount of project area funds the agency is authorized to receive
2557     from the project area cumulatively and from each taxing entity;
2558          (e) the estimated amount of project area funds that the agency is authorized to receive
2559     from the project area for the current calendar year;
2560          (f) the estimated amount of project area funds to be paid to the agency for the next
2561     calendar year;
2562          (g) a map of the project area; and
2563          (h) any other relevant information the agency elects to provide.
2564          (3) A report prepared in accordance with this section:
2565          (a) is for informational purposes only; and
2566          (b) does not alter the amount of [tax increment] project area funds that an agency is
2567     [entitled to collect] authorized to receive from a project area.
2568          (4) The provisions of this section apply regardless of when the agency is created.
2569          Section 57. Section 17C-1-605 is amended to read:

2570          17C-1-605. Audit report.
2571          (1) Each agency required to be audited under Section 17C-1-604 shall, within 180 days
2572     after the end of the agency's fiscal year, file a copy of the audit report with the county auditor,
2573     the State Tax Commission, the State Board of Education, and each taxing entity [that levies a
2574     tax on property] from which the agency [collects] receives tax increment.
2575          (2) Each audit report under Subsection (1) shall include:
2576          (a) the tax increment collected by the agency for each project area;
2577          (b) the amount of tax increment paid to each taxing entity under Section 17C-1-410;
2578          (c) the outstanding principal amount of bonds issued or other loans incurred to finance
2579     the costs associated with the agency's project areas; and
2580          (d) the actual amount expended for:
2581          (i) acquisition of property;
2582          (ii) site improvements or site preparation costs;
2583          (iii) installation of public utilities or other public improvements; and
2584          (iv) administrative costs of the agency.
2585          Section 58. Section 17C-1-606 is amended to read:
2586          17C-1-606. County auditor report on project areas.
2587          (1) (a) On or before March 31 of each year, the auditor of each county in which an
2588     agency is located shall prepare a report on the project areas within each agency.
2589          (b) The county auditor shall send a copy of each report under Subsection (1)(a) to the
2590     agency that is the subject of the report, the State Tax Commission, the State Board of
2591     Education, and each taxing entity [that levies a tax on property] from which the agency
2592     [collects] receives tax increment.
2593          (2) Each report under Subsection (1)(a) shall report:
2594          (a) the total assessed property value within each project area for the previous tax year;
2595          (b) the base taxable value of [property within] each project area for the previous tax
2596     year;
2597          (c) the tax increment available to be paid to the agency for the previous tax year;
2598          (d) the tax increment requested by the agency for the previous tax year; and
2599          (e) the tax increment paid to the agency for the previous tax year.
2600          (3) Within 30 days after a request by an agency, the State Tax Commission, the State

2601     Board of Education, or any taxing entity [that levies a tax on property] from which the agency
2602     receives tax increment, the county auditor or the county assessor shall provide access to:
2603          (a) the county auditor's method and calculations used to make adjustments under
2604     Section 17C-1-408;
2605          (b) the unequalized assessed valuation of an existing or proposed project area, or any
2606     parcel or parcels within an existing or proposed project area, if the equalized assessed valuation
2607     has not yet been determined for that year;
2608          (c) the most recent equalized assessed valuation of an existing or proposed project area
2609     or any parcel or parcels within an existing or proposed project area; and
2610          (d) the tax rate of each taxing entity adopted as of November 1 for the previous tax
2611     year.
2612          (4) Each report described in Subsection (1)(a) shall include:
2613          (a) sufficient detail regarding the calculations performed by a county auditor so that an
2614     agency or other interested party could repeat and verify the calculations; and
2615          (b) a detailed explanation of any adjustments made to the base taxable value of each
2616     project area.
2617          Section 59. Section 17C-1-607 is amended to read:
2618          17C-1-607. State Tax Commission and county assessor required to account for
2619     new growth.
2620          Upon the expiration of a project area funds collection period, the State Tax
2621     Commission and the assessor of each county in which [an urban renewal, economic
2622     development, or community development] a project area is located shall count as new growth
2623     the assessed value of property with respect to which the taxing entity is receiving taxes or
2624     increased taxes for the first time.
2625          Section 60. Section 17C-1-701.1 is enacted to read:
2626     
Part 7. Agency and Project Area Dissolution

2627          17C-1-701.1. Title.
2628          This part is known as "Agency and Project Area Dissolution."
2629          Section 61. Section 17C-1-701.5, which is renumbered from Section 17C-1-701 is
2630     renumbered and amended to read:
2631          [17C-1-701].      17C-1-701.5. Agency dissolution -- Restrictions -- Notice --

2632     Recording requirements -- Agency records -- Dissolution expenses.
2633          (1) (a) Subject to Subsection (1)(b), the community legislative body [of the community
2634     that created an agency] may, by ordinance, [approve the deactivation and dissolution of the]
2635     dissolve an agency.
2636          (b) [An] A community legislative body may adopt an ordinance [under] described in
2637     Subsection (1)(a) [approving the deactivation and dissolution of an agency may not be
2638     adopted unless] only if the agency has no outstanding bonded indebtedness, other unpaid loans,
2639     indebtedness, or advances, and no legally binding contractual obligations with [persons or
2640     entities] a person other than the community.
2641          (2) (a) The community legislative body shall:
2642          (i) within 10 days after adopting an ordinance [under] described in Subsection (1), file
2643     with the lieutenant governor a copy of a notice of an impending boundary action, as defined in
2644     Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
2645          (ii) upon the lieutenant governor's issuance of a certificate of dissolution under Section
2646     67-1a-6.5, submit to the recorder of the county in which the agency is located:
2647          (A) the original notice of an impending boundary action;
2648          (B) the original certificate of dissolution; and
2649          (C) a certified copy of the ordinance [approving the deactivation and dissolution of]
2650     that dissolves the agency.
2651          (b) Upon the lieutenant governor's issuance of the certificate of dissolution under
2652     Section 67-1a-6.5, the agency is dissolved.
2653          (c) Within 10 days after receiving the certificate of dissolution from the lieutenant
2654     governor under Section 67-1a-6.5, the community legislative body shall send a copy of the
2655     certificate of dissolution and the ordinance adopted under Subsection (1) to the State Board of
2656     Education, and each taxing entity.
2657          (d) The community legislative body shall publish a notice of dissolution in a
2658     newspaper of general circulation in the county in which the dissolved agency is located.
2659          (3) The books, documents, records, papers, and seal of each dissolved agency shall be
2660     deposited for safekeeping and reference with the recorder of the community that dissolved the
2661     agency.
2662          (4) The agency shall pay all expenses of the [deactivation and] dissolution.

2663          Section 62. Section 17C-1-702 is enacted to read:
2664          17C-1-702. Project area dissolution.
2665          (1) Regardless of when a project area funds collection period ends, the project area
2666     remains in existence until:
2667          (a) the agency adopts a resolution dissolving the project area; and
2668          (b) the community legislative body adopts an ordinance dissolving the project area.
2669          (2) The ordinance described in Subsection (1)(b) shall include:
2670          (a) the name of the project area; and
2671          (b) a project area map or boundary description.
2672          (3) Within 30 days after the day on which the community legislative body adopts an
2673     ordinance described in Subsection (1)(b), the community legislative body shall:
2674          (a) submit a copy of the ordinance to the county recorder of the county in which the
2675     dissolved project area is located; and
2676          (b) mail or electronically submit a copy of the ordinance to the county auditor, the State
2677     Tax Commission, the State Board of Education, and each taxing entity that levies or imposes a
2678     tax dissolved project area.
2679          Section 63. Section 17C-1-801 is enacted to read:
2680     
Part 8. Hearing and Notice Requirements

2681          17C-1-801. Title.
2682          This part is known as "Hearing and Notice Requirements."
2683          Section 64. Section 17C-1-802, which is renumbered from Section 17C-2-401 is
2684     renumbered and amended to read:
2685          [17C-2-401].      17C-1-802. Combining hearings.
2686          A board may combine any combination of a blight hearing, a plan hearing, and a budget
2687     hearing.
2688          Section 65. Section 17C-1-803, which is renumbered from Section 17C-2-402 is
2689     renumbered and amended to read:
2690          [17C-2-402].      17C-1-803. Continuing a hearing.
2691          Subject to Section [17C-2-403] 17C-1-804, the board may continue [from time to time
2692     a]:
2693          (1) a blight hearing;

2694          (2) a plan hearing;
2695          (3) a budget hearing; or
2696          (4) a combined hearing under Section [17C-2-401] 17C-1-802.
2697          Section 66. Section 17C-1-804, which is renumbered from Section 17C-2-403 is
2698     renumbered and amended to read:
2699          [17C-2-403].      17C-1-804. Notice required for continued hearing.
2700          The board shall give notice of a hearing continued under Section [17C-2-402]
2701     17C-1-802 by announcing at the hearing:
2702          (1) the date, time, and place the hearing will be resumed; or
2703          (2) (a) that [it] the hearing is being continued to a later time; and [causing]
2704          (b) that the board will cause a notice of the continued hearing to be[:(a) (i) published
2705     once in a newspaper of general circulation within the agency boundaries at least seven days
2706     before the hearing is scheduled to resume; or(ii) if there is no newspaper of general circulation,
2707     posted in at least three conspicuous places within the boundaries of the agency in which the
2708     project area or proposed project area is located; and (b)] published on the Utah Public Notice
2709     Website created in Section 63F-1-701, at least seven days before the day on which the hearing
2710     is [schedule] scheduled to resume.
2711          Section 67. Section 17C-1-805, which is renumbered from Section 17C-2-501 is
2712     renumbered and amended to read:
2713          [17C-2-501].      17C-1-805. Agency to provide notice of hearings.
2714          (1) Each agency shall provide notice, [as provided] in accordance with this part, of
2715     each:
2716          (a) blight hearing;
2717          (b) plan hearing; [and] or
2718          (c) budget hearing.
2719          (2) The notice required under Subsection (1) [for any of the hearings listed in that
2720     subsection] may be combined with the notice required for any of the other hearings if the
2721     hearings are combined under Section [17C-2-401] 17C-1-802.
2722          Section 68. Section 17C-1-806, which is renumbered from Section 17C-2-502 is
2723     renumbered and amended to read:
2724          [17C-2-502].      17C-1-806. Requirements for notice provided by agency.

2725          (1) The notice required by Section [17C-2-501] 17C-1-805 shall be given by:
2726          (a) (i) publishing one notice, excluding the map referred to in Subsection (3)(b), in a
2727     newspaper of general circulation within the county in which the project area or proposed
2728     project area is located, at least 14 days before the hearing;
2729          (ii) if there is no newspaper of general circulation, posting notice at least 14 days
2730     before the day of the hearing in at least three conspicuous places within the county in which the
2731     project area or proposed project area is located; or
2732          (iii) posting notice, excluding the map described in Subsection (3)(b), at least 14 days
2733     before the day on which the hearing is held on:
2734          (A) the Utah Public Notice Website described in Section 63F-1-701; and
2735          (B) the public website of a community located within the boundaries of the project
2736     area; and
2737          (b) at least 30 days before the hearing, mailing notice to:
2738          (i) [mailing notice to] each record owner of property located within the project area or
2739     proposed project area; [and]
2740          [(ii) mailing notice to:]
2741          [(A)] (ii) the State Tax Commission;
2742          [(B)] (iii) the assessor and auditor of the county in which the project area or proposed
2743     project area is located; and
2744          [(C) (I)] (iv) (A) each member of the taxing entity committee, if applicable; or
2745          [(II)] (B) if a taxing entity committee has not [yet] been formed, the State Board of
2746     Education and the legislative body or governing board of each taxing entity.
2747          (2) The mailing of the notice to record property owners required under Subsection
2748     (1)(b)(i) shall be conclusively considered to have been properly completed if:
2749          (a) the agency mails the notice to the property owners as shown in the records,
2750     including an electronic database, of the county recorder's office and at the addresses shown in
2751     those records; and
2752          (b) the county recorder's office records used by the agency in identifying owners to
2753     whom the notice is mailed and their addresses were obtained or accessed from the county
2754     recorder's office no earlier than 30 days before the mailing.
2755          (3) The agency shall include in each notice required under Section [17C-2-501]

2756     17C-1-805:
2757          (a) (i) a [specific description of the boundaries] boundary description of the project
2758     area or proposed project area; or
2759          (ii) (A) a mailing address or telephone number where a person may request that a copy
2760     of the boundary description be sent at no cost to the person by mail, email, or facsimile
2761     transmission; and
2762          (B) if the agency or community has an Internet website, an Internet address where a
2763     person may gain access to an electronic, printable copy of the boundary description and other
2764     related information;
2765          (b) a map of the boundaries of the project area or proposed project area;
2766          (c) an explanation of the purpose of the hearing; and
2767          (d) a statement of the date, time, and location of the hearing.
2768          (4) The agency shall include in each notice under Subsection (1)(b)[(ii)]:
2769          (a) a statement that property tax revenues resulting from an increase in valuation of
2770     property within the project area or proposed project area will be paid to the agency for [urban
2771     renewal purposes] project area development rather than to the taxing entity to which the tax
2772     revenues would otherwise have been paid if:
2773          (i) the taxing entity committee consents to the project area budget; and
2774          (ii) the project area plan provides for the agency to receive tax increment; and
2775          (b) an invitation to the recipient of the notice to submit to the agency comments
2776     concerning the subject matter of the hearing before the date of the hearing.
2777          (5) An agency may include in a notice under Subsection (1) any other information the
2778     agency considers necessary or advisable, including the public purpose [served] achieved by the
2779     project area development and any future tax benefits expected to result from the project area
2780     development.
2781          Section 69. Section 17C-1-807, which is renumbered from Section 17C-2-503 is
2782     renumbered and amended to read:
2783          [17C-2-503].      17C-1-807. Additional requirements for notice of a blight
2784     hearing.
2785          Each notice under Section [17C-2-502] 17C-1-806 for a blight hearing shall also
2786     include:

2787          (1) a statement that:
2788          (a) [an urban renewal] a project area is being proposed;
2789          (b) the proposed [urban renewal] project area may be declared to have blight;
2790          (c) the record owner of property within the proposed project area has the right to
2791     present evidence at the blight hearing contesting the existence of blight;
2792          (d) except for a hearing continued under Section [17C-2-402] 17C-1-803, the agency
2793     will notify the record owner of property [owners] referred to in Subsection [17C-2-502]
2794     17C-1-806(1)(b)(i) of each additional public hearing held by the agency concerning the [urban
2795     renewal project prior to] proposed project area before the adoption of the [urban renewal]
2796     project area plan; and
2797          (e) [persons] a person contesting the existence of blight in the proposed [urban
2798     renewal] project area may appear before the [agency] board and show cause why the proposed
2799     [urban renewal] project area should not be designated as [an urban renewal] a project area; and
2800          (2) if the agency anticipates acquiring property in an urban renewal project area or a
2801     community reinvestment project area by eminent domain, a clear and plain statement that:
2802          (a) the project area plan may require the agency to use eminent domain; and
2803          (b) the proposed use of eminent domain will be discussed at the blight hearing.
2804          Section 70. Section 17C-1-808, which is renumbered from Section 17C-2-504 is
2805     renumbered and amended to read:
2806          [17C-2-504].      17C-1-808. Additional requirements for notice of a plan
2807     hearing.
2808          Each notice under Section [17C-2-502] 17C-1-806 of a plan hearing shall also include:
2809          (1) a statement that any person objecting to the [draft] proposed project area plan or
2810     contesting the regularity of any of the proceedings to adopt [it] the proposed project area plan
2811     may appear before the [agency] board at the hearing to show cause why the [draft] proposed
2812     project area plan should not be adopted; and
2813          (2) a statement that the proposed project area plan is available for inspection at the
2814     agency offices.
2815          Section 71. Section 17C-1-809, which is renumbered from Section 17C-2-505 is
2816     renumbered and amended to read:
2817          [17C-2-505].      17C-1-809. Additional requirements for notice of a budget

2818     hearing.
2819          Each notice under Section [17C-2-502] 17C-1-806 of a budget hearing shall contain:
2820          (1) the following statement:
2821          "The (name of agency) has requested $________ in property tax revenues that will be
2822     generated by development within the (name of project area) to fund a portion of project costs
2823     within the (name of project area). These property tax revenues will be used for the following:
2824     (list major budget categories and amounts). These property taxes will be taxes levied by the
2825     following governmental entities, and, assuming current tax rates, the taxes paid to the agency
2826     for this project area from each taxing entity will be as follows: (list each taxing entity levying
2827     taxes and the amount of total taxes that would be paid from each taxing entity). All of the
2828     property taxes to be paid to the agency for the development in the project area are taxes that
2829     will be generated only if the project area is developed.
2830          All concerned citizens are invited to attend the project area budget hearing scheduled
2831     for (date, time, and place of hearing). A copy of the (name of project area) project area budget
2832     is available at the offices of (name of agency and office address)."; and
2833          (2) other information that the agency considers appropriate.
2834          Section 72. Section 17C-1-901 is enacted to read:
2835     
Part 9. Eminent Domain

2836          17C-1-901. Title.
2837          This part is known as "Eminent Domain."
2838          Section 73. Section 17C-1-902, which is renumbered from Section 17C-1-206 is
2839     renumbered and amended to read:
2840          [17C-1-206].      17C-1-902. Use of eminent domain -- Conditions.
2841          (1) Except as provided in Subsection (2), an agency may not use eminent domain to
2842     acquire property.
2843          (2) [An] Subject to the provisions of this part, an agency may, in accordance with Title
2844     78B, Chapter 6, Part 5, Eminent Domain, use eminent domain to acquire an interest in
2845     property:
2846          (a) [any interest in property] within an urban renewal project area[, subject to Chapter
2847     2, Part 6, Eminent Domain in an Urban Renewal Project Area; and] if:
2848          (i) the board makes a finding of blight under Chapter 2, Part 3, Blight Determination in

2849     Urban Renewal Project Areas; and
2850          (ii) the urban renewal project area plan provides for the use of eminent domain;
2851          [(b) any interest in property that is owned by an agency board member or officer and
2852     located within a project area, if the board member or officer consents.]
2853          (b) within a community reinvestment project area if:
2854          (i) the board makes a finding of blight under Section 17C-5-405;
2855          (ii) the community reinvestment project area plan provides for the use of eminent
2856     domain; and
2857          (iii) the agency creates a taxing entity committee in accordance with Section
2858     17C-1-402; or
2859          (c) that, subject to Subsection (3):
2860          (i) is owned by a participant or a property owner that is entitled to receive tax
2861     increment or other assistance from the agency;
2862          (ii) is within a project area for which the agency made a finding of blight under Section
2863     17C-2-102 or 17C-5-405; and
2864          (iii) (A) the participant or property owner described in Subsection (2)(c)(i) fails to
2865     develop or improve in accordance with the participation agreement or the project area plan; or
2866          (B) for a period of 36 months does not generate the amount of tax increment that the
2867     agency projected to receive under the project area budget.
2868          (3) An agency may use eminent domain to acquire an interest in property described in
2869     Subsection (2)(c) only if the conditions that formed the basis for the finding of blight exist at
2870     the time the agency exercises eminent domain.
2871          (4) An agency shall commence the acquisition of property by eminent domain within
2872     five years after the day on which the project area plan is effective.
2873          Section 74. Section 17C-1-903, which is renumbered from Section 17C-2-602 is
2874     renumbered and amended to read:
2875          [17C-2-602].      17C-1-903. Prerequisites to the acquisition of property by
2876     eminent domain -- Civil action authorized -- Record of good faith negotiations to be
2877     retained.
2878          (1) Before an agency may acquire property by eminent domain, the agency shall:
2879          (a) negotiate in good faith with the affected record property owner;

2880          (b) provide to each affected record property owner a written declaration that includes:
2881          (i) an explanation of the eminent domain process and the reasons for using it,
2882     including:
2883          (A) the need for the agency to obtain an independent appraisal that indicates the fair
2884     market value of the property and how the fair market value was determined;
2885          (B) a statement that the agency may adopt a resolution authorizing the agency to make
2886     an offer to the record property owner to purchase the property for the fair market value amount
2887     determined by the appraiser and that, if the offer is rejected, the agency has the right to acquire
2888     the property through an eminent domain proceeding; and
2889          (C) a statement that the agency will prepare an offer that will include the price the
2890     agency is offering for the property, an explanation of how the agency determined the price
2891     being offered, the legal description of the property, conditions of the offer, and the time at
2892     which the offer will expire;
2893          (ii) an explanation of the record property owner's relocation rights under Title 57,
2894     Chapter 12, Utah Relocation Assistance Act, and how to receive relocation assistance; and
2895          (iii) a statement that the owner has the right to receive just compensation and an
2896     explanation of how to obtain it; and
2897          (c) provide to the affected record property owner or the owner's designated
2898     representative a notice that is printed in a type size of at least ten-point type that contains:
2899          (i) a description of the property to be acquired;
2900          (ii) the name of the agency acquiring the property and the agency's contact person and
2901     telephone number; and
2902          (iii) a copy of Title 57, Chapter 12, Utah Relocation Assistance Act.
2903          (2) A person may bring a civil action against an agency for a violation of Subsection
2904     (1)(b) that results in damage to that person.
2905          (3) Each agency shall keep a record and evidence of the good faith negotiations
2906     required under Subsection (1)(a) and retain the record and evidence as provided in:
2907          (a) Title 63G, Chapter 2, Government Records Access and Management Act; or
2908          (b) an ordinance or policy that the agency had adopted under Section 63G-2-701.
2909          (4) A record property owner whose property is being taken by an agency through the
2910     exercise of eminent domain may elect to receive for the real property being taken:

2911          (a) fair market value; or
2912          (b) replacement property under Section 57-12-7.
2913          Section 75. Section 17C-1-904, which is renumbered from Section 17C-2-601 is
2914     renumbered and amended to read:
2915          [17C-2-601].      17C-1-904. Acquiring single family owner occupied
2916     residential property or commercial property -- Acquiring property already devoted to a
2917     public use -- Relocation assistance requirement.
2918          [(1) Subject to Section 17C-2-602, an agency may use eminent domain to acquire
2919     property:]
2920          [(a) within an urban renewal project area if:]
2921          [(i) the agency board makes a finding of blight under Part 3, Blight Determination in
2922     Urban Renewal Project Areas;]
2923          [(ii) the urban renewal project area plan provides for the use of eminent domain; and]
2924          [(iii) the agency commences the acquisition of the property within five years after the
2925     effective date of the urban renewal project area plan; or]
2926          [(b) within a project area established after December 31, 2001 but before April 30,
2927     2007 if:]
2928          [(i) the agency board made a finding of blight with respect to the project area as
2929     provided under the law in effect at the time of the finding;]
2930          [(ii) the project area plan provides for the use of eminent domain; and]
2931          [(iii) the agency commences the acquisition of the property before January 1, 2010.]
2932          [(2) (a) As used in this Subsection (2):]
2933          [(i) "Commercial property" means a property used, in whole or in part, by the owner or
2934     possessor of the property for a commercial, industrial, retail, or other business purpose,
2935     regardless of the identity of the property owner.]
2936          [(ii) "Owner occupied property" means private real property:]
2937          [(A) whose use is single-family residential or commercial; and]
2938          [(B) that is occupied by the owner of the property.]
2939          [(iii) "Relevant area" means:]
2940          [(A) except as provided in Subsection (2)(a)(iii)(B), the project area; or]
2941          [(B) the area included within a phase of a project under a project area plan if the phase

2942     and the area included within the phase are described in the project area plan.]
2943          [(b) For purposes of each provision of this Subsection (2) relating to the submission of
2944     a petition by the owners of property, a parcel of real property is included in the calculation of
2945     the applicable percentage if the petition is signed by:]
2946          [(i) except as provided in Subsection (2)(b)(ii), owners representing a majority
2947     ownership interest in that parcel; or]
2948          [(ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the
2949     number of owners of that parcel.]
2950          [(c) An agency may not acquire by eminent domain single-family residential owner
2951     occupied property unless:]
2952          [(i) the owner consents; or]
2953          [(ii) (A) a written petition requesting the agency to use eminent domain to acquire the
2954     property is submitted by the owners of at least 80% of the owner occupied property within the
2955     relevant area representing at least 70% of the value of owner occupied property within the
2956     relevant area; and]
2957          [(B) 2/3 of all agency board members vote in favor of using eminent domain to acquire
2958     the property.]
2959          [(d) An agency may not acquire commercial property by eminent domain unless:]
2960          [(i) the owner consents; or]
2961          [(ii) (A) a written petition requesting the agency to use eminent domain to acquire the
2962     property is submitted by the owners of at least 75% of the commercial property within the
2963     relevant area representing at least 60% of the value of commercial property within the relevant
2964     area; and]
2965          [(B) 2/3 of all agency board members vote in favor of using eminent domain to acquire
2966     the property.]
2967          [(3) An agency may not acquire any real property on which an existing building is to be
2968     continued on its present site and in its present form and use unless:]
2969          [(a) the owner consents; or]
2970          [(b) (i) the building requires structural alteration, improvement, modernization, or
2971     rehabilitation;]
2972          [(ii) the site or lot on which the building is situated requires modification in size,

2973     shape, or use; or]
2974          [(iii) (A) it is necessary to impose upon the property any of the standards, restrictions,
2975     and controls of the project area plan; and]
2976          [(B) the owner fails or refuses to agree to participate in the project area plan.]
2977          [(4) (a) Subject to Subsection (4)(b), an agency may acquire by eminent domain
2978     property that is already devoted to a public use and located in:]
2979          [(i) an urban renewal project area; or]
2980          [(ii) a project area described in Subsection (1)(b).]
2981          [(b) An agency may not acquire property of a public entity under Subsection (4)(a)
2982     without the public entity's consent.]
2983          (1) As used in this section:
2984          (a) "Commercial property" means real property used, in whole or in part, by the owner
2985     or possessor of the property for a commercial, industrial, retail, or other business purpose,
2986     regardless of the identity of the property owner.
2987          (b) "Owner occupied property" means private real property that is:
2988          (i) used for a single-family residential or commercial purpose; and
2989          (ii) occupied by the owner of the property.
2990          (c) "Relevant area" means:
2991          (i) except as provided in Subsection (1)(c)(ii), the project area; or
2992          (ii) the area included within a phase of a project under a project area plan if the phase
2993     and the area included within the phase are described in the project area plan.
2994          (2) An agency may not acquire by eminent domain a residential owner occupied
2995     property unless:
2996          (a) (i) a written petition requesting the agency to use eminent domain to acquire the
2997     property is submitted by the owners of at least 80% of the residential owner occupied property
2998     within the relevant area representing at least 70% of the value of residential owner occupied
2999     property within the relevant area; or
3000          (ii) a written petition of 90% of the owners of real property, including property owned
3001     by the agency or a public entity within the project area is submitted to the agency, requesting
3002     the use of eminent domain to acquire the property; and
3003          (b) at least two-thirds of all board members vote in favor of using eminent domain to

3004     acquire the property.
3005          (3) An agency may not acquire commercial owner occupied property by eminent
3006     domain unless:
3007          (a) a written petition requesting the agency to use eminent domain to acquire the
3008     property is submitted by the owners of at least 75% of the commercial property within the
3009     relevant area representing at least 60% of the value of commercial property within the relevant
3010     area; and
3011          (b) at least two-thirds of all board members vote in favor of using eminent domain to
3012     acquire the property.
3013          (4) For purposes of this section an owner is considered to have signed a petition if:
3014          (a) owners representing a majority ownership interest in the property sign the petition;
3015     or
3016          (b) if the property is owned by joint tenants or tenants by the entirety, 50% of the
3017     number of owners of the property sign the petition.
3018          (5) An agency may not acquire by eminent domain any real property on which an
3019     existing building is to be continued on the building's present site and in the building's present
3020     form and use unless:
3021          (a) the building requires structural alteration, improvement, modernization, or
3022     rehabilitation;
3023          (b) the site or lot on which the building is situated requires modification in size, shape,
3024     or use; or
3025          (c) (i) it is necessary to impose upon the property a standard, restriction, or control of
3026     the project area plan; and
3027          (ii) the owner fails or refuses to agree to participate in the project area plan.
3028          [(5) Each] (6) An agency that acquires property by eminent domain shall comply with
3029     Title 57, Chapter 12, Utah Relocation Assistance Act.
3030          Section 76. Section 17C-1-905, which is renumbered from Section 17C-2-603 is
3031     renumbered and amended to read:
3032          [17C-2-603].      17C-1-905. Court award for court costs and attorney fees,
3033     relocation expenses, and damage to fixtures or personal property.
3034          [If a property owner brings an action in district court contesting an agency's exercise of]

3035     In an eminent domain [against that owner's property] action under this part, the court may
3036     award:
3037          (1) [award court] costs and [a] reasonable attorney [fee, as determined by the court, to
3038     the owner,] fees to the condemnee if the amount of the court or jury award for the property
3039     exceeds the amount offered by the agency;
3040          (2) [award] a reasonable sum, as determined by the court or jury, as compensation for
3041     any costs [and] or expenses [of] relating to relocating:
3042          (a) an owner who occupied the acquired property[,];
3043          (b) a party conducting a business on the acquired property[,]; or
3044          (c) a person displaced from the property, as permitted by Title 57, Chapter 12, Utah
3045     Relocation Assistance Act; and
3046          (3) [award] an amount[, as determined by the court or jury,] to compensate for any
3047     fixtures or personal property that is:
3048          (a) owned by the owner of the acquired property or by a person conducting a business
3049     on the acquired property; and
3050          (b) damaged as a result of the acquisition or relocation.
3051          Section 77. Section 17C-2-101.1 is enacted to read:
3052     
CHAPTER 2. URBAN RENEWAL

3053          17C-2-101.1. Title.
3054          This chapter is known as "Urban Renewal."
3055          Section 78. Section 17C-2-101.2 is enacted to read:
3056          17C-2-101.2. Applicability of chapter.
3057          This chapter applies to an urban renewal project area that is effective:
3058          (1) before May 10, 2016; or
3059          (2) before September 1, 2016, if an agency adopted a resolution in accordance with
3060     Section 17C-2-101.5 before April 1, 2016.
3061          Section 79. Section 17C-2-101.5, which is renumbered from Section 17C-2-101 is
3062     renumbered and amended to read:
3063          [17C-2-101].      17C-2-101.5. Resolution designating survey area -- Request
3064     to adopt resolution.
3065          (1) [An agency] A board may begin the process of adopting an urban renewal project

3066     area plan by adopting a resolution that:
3067          (a) designates an area located within the agency's boundaries as a survey area;
3068          (b) contains a statement that the survey area requires study to determine whether:
3069          (i) one or more urban renewal [projects] project areas within the survey area are
3070     feasible; and
3071          (ii) blight exists within the survey area; and
3072          (c) contains a boundary description or map [of the boundaries] of the survey area.
3073          (2) (a) Any person or any group, association, corporation, or other entity may submit a
3074     written request to the board to adopt a resolution under Subsection (1).
3075          (b) A request under Subsection (2)(a) may include plans showing the [urban renewal]
3076     project area development proposed for an area within the agency's boundaries.
3077          (c) The board may, in [its] the board's sole discretion, grant or deny a request under
3078     Subsection (2)(a).
3079          Section 80. Section 17C-2-102 is amended to read:
3080          17C-2-102. Process for adopting urban renewal project area plan -- Prerequisites
3081     -- Restrictions.
3082          (1) (a) In order to adopt an urban renewal project area plan, after adopting a resolution
3083     under Subsection [17C-2-101] 17C-2-101.5(1) the agency shall:
3084          (i) unless a finding of blight is based on a finding made under Subsection
3085     17C-2-303(1)(b) relating to an inactive industrial site or inactive airport site:
3086          (A) cause a blight study to be conducted within the survey area as provided in Section
3087     17C-2-301;
3088          (B) provide notice of a blight hearing as required under [Part 5, Urban Renewal]
3089     Chapter 1, Part 8, Hearing and Notice Requirements; and
3090          (C) hold a blight hearing as [provided] described in Section 17C-2-302;
3091          (ii) after the blight hearing has been held or, if no blight hearing is required under
3092     Subsection (1)(a)(i), after adopting a resolution under Subsection [17C-2-101] 17C-2-101.5(1),
3093     hold a board meeting at which the board shall:
3094          (A) consider:
3095          (I) the issue of blight and the evidence and information relating to the existence or
3096     nonexistence of blight; and

3097          (II) whether adoption of one or more urban renewal project area plans should be
3098     pursued; and
3099          (B) by resolution:
3100          (I) make a finding regarding the existence of blight in the proposed urban renewal
3101     project area;
3102          (II) select one or more project areas comprising part or all of the survey area; and
3103          (III) authorize the preparation of a [draft] proposed project area plan for each project
3104     area;
3105          (iii) prepare a [draft of a] proposed project area plan and conduct any examination,
3106     investigation, and negotiation regarding the project area plan that the agency considers
3107     appropriate;
3108          (iv) make the [draft] proposed project area plan available to the public at the agency's
3109     offices during normal business hours;
3110          (v) provide notice of the plan hearing [as provided] in accordance with Sections
3111     [17C-2-502 and 17C-2-504] 17C-1-806 and 17C-1-808;
3112          (vi) hold a [public] plan hearing on the [draft] proposed project area plan and, at [that
3113     public] the plan hearing:
3114          (A) allow public comment on:
3115          (I) the [draft] proposed project area plan; and
3116          (II) whether the [draft] proposed project area plan should be revised, approved, or
3117     rejected; and
3118          (B) receive all written and hear all oral objections to the [draft] proposed project area
3119     plan;
3120          (vii) before holding the plan hearing, provide an opportunity for the State Board of
3121     Education and each taxing entity that levies a tax on property within the proposed project area
3122     to consult with the agency regarding the [draft] proposed project area plan;
3123          (viii) if applicable, hold the election required under Subsection 17C-2-105(3);
3124          (ix) after holding the plan hearing, at the same meeting or at a subsequent meeting
3125     consider:
3126          (A) the oral and written objections to the [draft] proposed project area plan and
3127     evidence and testimony for and against adoption of the [draft] proposed project area plan; and

3128          (B) whether to revise, approve, or reject the [draft] proposed project area plan;
3129          (x) approve the [draft] proposed project area plan, with or without revisions, as the
3130     project area plan by a resolution that complies with Section 17C-2-106; and
3131          (xi) submit the project area plan to the community legislative body for adoption.
3132          (b) (i) If an agency makes a finding under Subsection (1)(a)(ii)(B) that blight exists in
3133     the proposed urban renewal project area, the agency may not adopt the project area plan until
3134     the taxing entity committee approves the finding of blight.
3135          (ii) (A) A taxing entity committee may not disapprove an agency's finding of blight
3136     unless the committee demonstrates that the conditions the agency found to exist in the urban
3137     renewal project area that support the agency's finding of blight under Section 17C-2-303:
3138          (I) do not exist; or
3139          (II) do not constitute blight.
3140          (B) (I) If the taxing entity committee questions or disputes the existence of some or all
3141     of the blight conditions that the agency found to exist in the urban renewal project area or that
3142     those conditions constitute blight, the taxing entity committee may hire a consultant, mutually
3143     agreed upon by the taxing entity committee and the agency, with the necessary expertise to
3144     assist the taxing entity committee to make a determination as to the existence of the questioned
3145     or disputed blight conditions.
3146          (II) The agency shall pay the fees and expenses of each consultant hired under
3147     Subsection (1)(b)(ii)(B)(I).
3148          (III) The findings of a consultant under this Subsection (1)(b)(ii)(B) shall be binding on
3149     the taxing entity committee and the agency.
3150          (2) An agency may not propose a project area plan under Subsection (1) unless the
3151     community in which the proposed project area is located:
3152          (a) has a planning commission; and
3153          (b) has adopted a general plan under:
3154          (i) if the community is a [city or town] municipality, Title 10, Chapter 9a, Part 4,
3155     General Plan; or
3156          (ii) if the community is a county, Title 17, Chapter 27a, Part 4, General Plan.
3157          (3) (a) Subject to Subsection (3)(b), [an agency] a board may not approve a project area
3158     plan more than one year after adoption of a resolution making a finding of blight under

3159     Subsection (1)(a)(ii)(B).
3160          (b) If a project area plan is submitted to an election under Subsection 17C-2-105(3),
3161     the time between the plan hearing and the date of the election does not count for purposes of
3162     calculating the year period under Subsection (3)(a).
3163          (4) (a) Except as provided in Subsection (4)(b), a [draft] proposed project area plan
3164     may not be modified to add real property to the proposed project area unless the board holds a
3165     plan hearing to consider the addition and gives notice of the plan hearing as required under
3166     Sections [17C-2-502 and 17C-2-504] 17C-1-806 and 17C-1-808.
3167          (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a
3168     [draft] proposed project area plan being modified to add real property to the proposed project
3169     area if:
3170          (i) the property is contiguous to the property already included in the proposed project
3171     area under the [draft] proposed project area plan;
3172          (ii) the record owner of the property consents to adding the real property to the
3173     proposed project area; and
3174          (iii) the property is located within the survey area.
3175          Section 81. Section 17C-2-103 is amended to read:
3176          17C-2-103. Urban renewal project area plan requirements.
3177          (1) Each urban renewal project area plan and [draft] proposed project area plan shall:
3178          (a) describe the boundaries of the project area, subject to Section 17C-1-414, if
3179     applicable;
3180          (b) contain a general statement of the land uses, layout of principal streets, population
3181     densities, and building intensities of the project area and how they will be affected by the
3182     [urban renewal] project area development;
3183          (c) state the standards that will guide the [urban renewal] project area development;
3184          (d) show how the purposes of this title will be attained by the [urban renewal] project
3185     area development;
3186          (e) be consistent with the general plan of the community in which the project area is
3187     located and show that the [urban renewal] project area development will conform to the
3188     community's general plan;
3189          (f) describe how the [urban renewal] project area development will reduce or eliminate

3190     blight in the project area;
3191          (g) describe any specific project or projects that are the object of the proposed [urban
3192     renewal] project area development;
3193          (h) identify how [private developers, if any,] a participant will be selected to undertake
3194     the [urban renewal] project area development and identify each [private developer] participant
3195     currently involved in the [urban renewal process] project area development;
3196          (i) state the reasons for the selection of the project area;
3197          (j) describe the physical, social, and economic conditions existing in the project area;
3198          (k) describe any tax incentives offered private entities for facilities located in the
3199     project area;
3200          (l) include the analysis described in Subsection (2);
3201          (m) if any of the existing buildings or uses in the project area are included in or eligible
3202     for inclusion in the National Register of Historic Places or the State Register, state that the
3203     agency shall comply with Section 9-8-404 as though the agency were a state agency; and
3204          (n) include other information that the agency determines to be necessary or advisable.
3205          (2) Each analysis under Subsection (1)(l) shall consider:
3206          (a) the benefit of any financial assistance or other public subsidy proposed to be
3207     provided by the agency, including:
3208          (i) an evaluation of the reasonableness of the costs of the [urban renewal] project area
3209     development;
3210          (ii) efforts the agency or [developer] participant has made or will make to maximize
3211     private investment;
3212          (iii) the rationale for use of tax increment, including an analysis of whether the
3213     proposed project area development might reasonably be expected to occur in the foreseeable
3214     future solely through private investment; and
3215          (iv) an estimate of the total amount of tax increment that will be expended in
3216     undertaking [urban renewal] project area development and the [length of time for which it will
3217     be expended] project area funds collection period; and
3218          (b) the anticipated public benefit to be derived from the [urban renewal] project area
3219     development, including:
3220          (i) the beneficial influences upon the tax base of the community;

3221          (ii) the associated business and economic activity likely to be stimulated; and
3222          (iii) whether adoption of the project area plan is necessary and appropriate to reduce or
3223     eliminate blight.
3224          Section 82. Section 17C-2-105 is amended to read:
3225          17C-2-105. Objections to urban renewal project area plan -- Owners' alternative
3226     project area plan -- Election if 40% of property owners object.
3227          (1) At any time before the plan hearing, any person may file with the agency a written
3228     statement of objections to the [draft] proposed urban renewal project area plan.
3229          (2) If the record owners of property of a majority of the private real property included
3230     within the proposed urban renewal project area file a written petition before or at the plan
3231     hearing, proposing an alternative project area plan, the agency shall consider that proposed plan
3232     in conjunction with the project area plan proposed by the agency.
3233          (3) (a) If the record property owners of at least 40% of the private land area within the
3234     proposed urban renewal project area object [in writing] to the [draft] proposed project area plan
3235     before or at the plan hearing, either in writing or orally, and do not withdraw their objections,
3236     an agency may not approve the project area plan until approved by voters within the boundaries
3237     of the agency in which the proposed project area is located at an election as provided in
3238     Subsection (3)(b).
3239          (b) (i) Except as provided in this section, each election required under Subsection
3240     (3)(a) shall comply with Title 20A, Election Code.
3241          (ii) An election under Subsection (3)(a) may be held on the same day and with the
3242     same election officials as an election held by the community in which the proposed project area
3243     is located.
3244          (iii) If a majority of those voting on the proposed project area plan vote in favor of it,
3245     the project area plan shall be considered approved and the agency shall confirm the approval by
3246     resolution.
3247          (4) If the record property owners of 2/3 of the private land area within the proposed
3248     project area object in writing to the [draft] proposed project area plan before or at the plan
3249     hearing and do not withdraw their objections, the project area plan may not be adopted and the
3250     agency may not reconsider the project area plan for three years.
3251          Section 83. Section 17C-2-106 is amended to read:

3252          17C-2-106. Board resolution approving urban renewal project area plan --
3253     Requirements.
3254          Each board resolution approving a [draft] proposed urban renewal project area plan as
3255     the project area plan under Subsection 17C-2-102(1)(a)(x) shall contain:
3256          (1) a [legal] boundary description of the boundaries of the project area that is the
3257     subject of the project area plan;
3258          (2) the agency's purposes and intent with respect to the project area;
3259          (3) the project area plan incorporated by reference;
3260          (4) a statement that the board previously made a finding of blight within the project
3261     area and the date of the board's finding of blight; and
3262          (5) the board findings and determinations that:
3263          (a) there is a need to effectuate a public purpose;
3264          (b) there is a public benefit under the analysis described in Subsection 17C-2-103(2);
3265          (c) it is economically sound and feasible to adopt and carry out the project area plan;
3266          (d) the project area plan conforms to the community's general plan; and
3267          (e) carrying out the project area plan will promote the public peace, health, safety, and
3268     welfare of the community in which the project area is located.
3269          Section 84. Section 17C-2-108 is amended to read:
3270          17C-2-108. Notice of urban renewal project area plan adoption -- Effective date
3271     of plan -- Contesting the formation of the plan.
3272          (1) (a) Upon the community legislative body's adoption of an urban renewal project
3273     area plan, or an amendment to a project area plan under Section 17C-2-110, the community
3274     legislative body shall provide notice as provided in Subsection (1)(b) by:
3275          (i) (A) publishing or causing to be published a notice in a newspaper of general
3276     circulation within the agency's boundaries; or
3277          (B) if there is no newspaper of general circulation within the agency's boundaries,
3278     causing a notice to be posted in at least three public places within the agency's boundaries; and
3279          (ii) posting a notice on the Utah Public Notice Website described in Section
3280     63F-1-701.
3281          (b) Each notice under Subsection (1)(a) shall:
3282          (i) set forth the community legislative body's ordinance adopting the project area plan

3283     or a summary of the ordinance; and
3284          (ii) include a statement that the project area plan is available for general public
3285     inspection and the hours for inspection.
3286          (2) The project area plan shall become effective on the date of:
3287          (a) if notice was published under Subsection (1)(a), publication of the notice; or
3288          (b) if notice was posted under Subsection (1)(a), posting of the notice.
3289          (3) (a) For a period of 30 days after the effective date of the project area plan under
3290     Subsection (2), any person [in interest] may contest the project area plan or the procedure used
3291     to adopt the project area plan if the plan or procedure fails to comply with applicable statutory
3292     requirements.
3293          (b) After the 30-day period under Subsection (3)(a) expires, [no] a person may not
3294     contest the project area plan or procedure used to adopt the project area plan for any cause.
3295          (4) Upon adoption of the project area plan by the [community's] community legislative
3296     body, the agency may carry out the project area plan.
3297          (5) Each agency shall make the [adopted] project area plan available to the general
3298     public at [its offices] the agency's office during normal business hours.
3299          Section 85. Section 17C-2-109 is amended to read:
3300          17C-2-109. Agency required to transmit and record documents after adoption of
3301     an urban renewal project area plan.
3302          Within 30 days after the community legislative body adopts, under Section 17C-2-107,
3303     an urban renewal project area plan, the agency shall:
3304          (1) record with the recorder of the county in which the project area is located a
3305     document containing:
3306          (a) a description of the land within the project area;
3307          (b) a statement that the project area plan for the project area has been adopted; and
3308          (c) the date of adoption;
3309          (2) transmit a copy of the description of the land within the project area and an accurate
3310     map or plat indicating the boundaries of the project area to the Automated Geographic
3311     Reference Center created under Section 63F-1-506; and
3312          (3) for a project area plan that provides for the payment of tax increment to the agency,
3313     transmit a copy of the description of the land within the project area, a copy of the community

3314     legislative body ordinance adopting the project area plan, and a map or plat indicating the
3315     boundaries of the project area to:
3316          (a) the auditor, recorder, attorney, surveyor, and assessor of each county in which any
3317     part of the project area is located;
3318          (b) the officer or officers performing the function of auditor or assessor for each taxing
3319     entity that does not use the county assessment roll or collect [its] the taxing entity's taxes
3320     through the county;
3321          (c) the legislative body or governing board of each taxing entity;
3322          (d) the State Tax Commission; and
3323          (e) the State Board of Education.
3324          Section 86. Section 17C-2-110 is amended to read:
3325          17C-2-110. Amending an urban renewal project area plan.
3326          (1) An [adopted] urban renewal project area plan may be amended as provided in this
3327     section.
3328          (2) If an agency proposes to amend [an adopted] an urban renewal project area plan to
3329     enlarge the project area:
3330          (a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
3331     a project area plan apply equally to the proposed amendment as if it were a proposed project
3332     area plan;
3333          (b) for a pre-July 1, 1993 project area plan, the base year [taxable value] for the new
3334     area added to the project area shall be determined under Subsection 17C-1-102[(6)](9)(a)(i)
3335     using the effective date of the amended project area plan;
3336          (c) for a post-June 30, 1993 project area plan:
3337          (i) the base year [taxable value] for the new area added to the project area shall be
3338     determined under Subsection 17C-1-102[(6)](9)(a)(ii) using the date of the taxing entity
3339     committee's consent referred to in Subsection (2)(c)(ii); and
3340          (ii) the agency shall obtain the consent of the taxing entity committee before the agency
3341     may collect tax increment from the area added to the project area by the amendment;
3342          (d) the agency shall make a finding regarding the existence of blight in the area
3343     proposed to be added to the project area by following the procedure set forth in Subsections
3344     17C-2-102(1)(a)(i) and (ii); and

3345          (e) the agency need not make a finding regarding the existence of blight in the project
3346     area as described in the original project area plan, if the agency made a finding of the existence
3347     of blight regarding that project area in connection with adoption of the original project area
3348     plan.
3349          (3) If a proposed amendment does not propose to enlarge an urban renewal project
3350     area, [an agency] a board may adopt a resolution approving an amendment to [an adopted] a
3351     project area plan after:
3352          (a) the agency gives notice, as provided in Section [17C-2-502] 17C-1-806, of the
3353     proposed amendment and of the public hearing required by Subsection (3)(b);
3354          (b) the [agency] board holds a public hearing on the proposed amendment that meets
3355     the requirements of a plan hearing;
3356          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
3357     amendment proposes:
3358          (i) to enlarge the area within the project area from which tax increment is collected;
3359          (ii) to permit the agency to receive a greater percentage of tax increment or to [receive
3360     tax increment for a longer period of time] extend the project area funds collection period, or
3361     both, than allowed under the adopted project area plan; or
3362          (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
3363     expand the area from which tax increment is collected to exceed 100 acres of private property;
3364     and
3365          (d) the agency obtains the consent of the legislative body or governing board of each
3366     taxing entity affected, if the amendment proposes to permit the agency to receive, from less
3367     than all taxing entities, a greater percentage of tax increment or to [receive tax increment for a
3368     longer period of time] extend the project area funds collection period, or both, than allowed
3369     under the adopted project area plan.
3370          (4) (a) An [adopted] urban renewal project area plan may be amended without
3371     complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
3372     (b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
3373     amendment:
3374          (i) makes a minor adjustment in the [legal] boundary description of a project area
3375     boundary requested by a county assessor or county auditor to avoid inconsistent property

3376     boundary lines; or
3377          (ii) subject to Subsection (4)(b), removes a parcel [of real property] from a project area
3378     because the agency determines that the parcel is:
3379          [(A) the parcel is no longer blighted; or]
3380          [(B) inclusion of the parcel is no longer necessary or desirable to the project area.]
3381          (A) no longer blighted;
3382          (B) tax exempt; or
3383          (C) no longer necessary or desirable to the project area.
3384          (b) An amendment removing a parcel [of real property] from a project area under
3385     Subsection (4)(a)(ii) may not be made without the consent of the record property owner of the
3386     parcel being removed.
3387          (5) (a) An amendment approved by board resolution under this section may not take
3388     effect until adopted by ordinance of the legislative body of the community in which the project
3389     area that is the subject of the project area plan being amended is located.
3390          (b) Upon a community legislative body passing an ordinance adopting an amendment
3391     to a project area plan, the agency whose project area plan was amended shall comply with the
3392     requirements of Sections 17C-2-108 and 17C-2-109 to the same extent as if the amendment
3393     were a project area plan.
3394          Section 87. Section 17C-2-201 is amended to read:
3395          17C-2-201. Project area budget -- Requirements for adopting -- Contesting the
3396     budget or procedure -- Time limit.
3397          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993 urban
3398     renewal project area plan with tax increment, the agency shall, subject to Section 17C-2-202,
3399     adopt a project area budget as provided in this part.
3400          (b) An urban renewal project area budget adopted on or after March 30, 2009 shall
3401     specify:
3402          (i) for a project area budget adopted on or after March 30, 2009:
3403          (A) the [number of tax years for which the agency will be allowed to receive tax
3404     increment from the project area] project area funds collection period; and
3405          (B) the percentage of tax increment the agency is [entitled] authorized to receive from
3406     the project area under the project area budget; and

3407          (ii) for a project area budget adopted on or after March 30, 2013, unless approval is
3408     obtained under Subsection 17C-1-402(4)(b)(vi)(C), the maximum cumulative dollar amount of
3409     tax increment that the agency may receive from the project area under the project area budget.
3410          (2) To adopt an urban renewal project area budget, the agency shall:
3411          (a) prepare a [draft of a] proposed project area budget;
3412          (b) make a copy of the [draft] proposed project area budget available to the public at
3413     the agency's offices during normal business hours;
3414          (c) provide notice of the budget hearing as required by [Part 5, Urban Renewal Notice
3415     Requirements] Chapter 1, Part 8, Hearing and Notice Requirements;
3416          (d) hold a public hearing on the [draft] proposed project area budget and, at that public
3417     hearing, allow public comment on:
3418          (i) the [draft] proposed project area budget; and
3419          (ii) whether the [draft] proposed project area budget should be revised, adopted, or
3420     rejected;
3421          (e) (i) if required under Subsection 17C-2-204(1), obtain the approval of the taxing
3422     entity committee on the [draft] proposed project area budget or a revised version of the [draft]
3423     proposed project area budget; or
3424          (ii) if applicable, comply with the requirements of Subsection 17C-2-204(2);
3425          (f) if approval of the taxing entity committee is required under Subsection (2)(e)(i),
3426     obtain a written certification, signed by an attorney licensed to practice law in this state, stating
3427     that the taxing entity committee followed the appropriate procedures to approve the project
3428     area budget; and
3429          (g) after the budget hearing, hold a board meeting in the same meeting as the public
3430     hearing or in a subsequent meeting to:
3431          (i) consider comments made and information presented at the public hearing relating to
3432     the [draft] proposed project area budget; and
3433          (ii) adopt by resolution the [draft] proposed project area budget, with any revisions, as
3434     the project area budget.
3435          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
3436     under Subsection (2)(g), any person [in interest] may contest the project area budget or the
3437     procedure used to adopt the project area budget if the budget or procedure fails to comply with

3438     applicable statutory requirements.
3439          (b) After the 30-day period under Subsection (3)(a) expires, a person, [for any cause,]
3440     may not contest:
3441          (i) the project area budget or procedure used by either the taxing entity committee or
3442     the agency to approve and adopt the project area budget;
3443          (ii) a payment to the agency under the project area budget; or
3444          (iii) the agency's use of tax increment under the project area budget.
3445          Section 88. Section 17C-2-203 is amended to read:
3446          17C-2-203. Part of tax increment funds in urban renewal project area budget to
3447     be used for housing -- Waiver of requirement.
3448          (1) (a) Except as provided in Subsection (1)(b), each urban renewal project area budget
3449     adopted on or after May 1, 2000, that provides for more than $100,000 of annual tax increment
3450     to be paid to the agency shall allocate at least 20% of the tax increment for housing as provided
3451     in Section 17C-1-412.
3452          (b) The 20% requirement of Subsection (1)(a) may be waived in part or whole by the
3453     [mutual consent of the loan fund board and the] taxing entity committee if [they determine] the
3454     taxing entity committee determines that 20% of tax increment is more than is needed to address
3455     the community's need for income targeted housing.
3456          (2) An urban renewal project area budget not required under Subsection (1)(a) to
3457     allocate tax increment for housing may allocate 20% of tax increment payable to the agency
3458     over the life of the project area for housing as provided in Section 17C-1-412 if the project area
3459     budget is under a project area plan that is adopted on or after July 1, 1998.
3460          Section 89. Section 17C-2-204 is amended to read:
3461          17C-2-204. Consent of taxing entity committee required for urban renewal
3462     project area budget -- Exception.
3463          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), each
3464     agency shall obtain the consent of the taxing entity committee for each urban renewal project
3465     area budget under a post-June 30, 1993 project area plan before the agency may [collect]
3466     receive any tax increment from the urban renewal project area.
3467          (b) For an urban renewal project area budget adopted from July 1, 1998 through May 1,
3468     2000 that allocates 20% or more of the tax increment for housing as provided in Section

3469     17C-1-412, an agency:
3470          (i) need not obtain the consent of the taxing entity committee for the project area
3471     budget; and
3472          (ii) may not [collect] receive any tax increment from all or part of the project area until
3473     after:
3474          (A) the loan fund board has certified the project area budget as complying with the
3475     requirements of Section 17C-1-412; and
3476          (B) the [agency] board has approved and adopted the project area budget by a
3477     two-thirds vote.
3478          (2) (a) Before a taxing entity committee may consent to an urban renewal project area
3479     budget adopted on or after May 1, 2000 that is required under Subsection 17C-2-203(1)(a) to
3480     allocate 20% of tax increment for housing, the agency shall:
3481          (i) adopt a housing plan showing the uses for the housing funds; and
3482          (ii) provide a copy of the housing plan to the taxing entity committee and the loan fund
3483     board.
3484          (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency
3485     shall provide a copy of the amendment to the taxing entity committee and the loan fund board.
3486          Section 90. Section 17C-2-206 is amended to read:
3487          17C-2-206. Amending an urban renewal project area budget.
3488          (1) An agency may by resolution amend an urban renewal project area budget as
3489     provided in this section.
3490          (2) To amend an adopted urban renewal project area budget, the agency shall:
3491          (a) advertise and hold one public hearing on the proposed amendment as provided in
3492     Subsection (3);
3493          (b) if approval of the taxing entity committee was required for adoption of the original
3494     project area budget, obtain the approval of the taxing entity committee to the same extent that
3495     the agency was required to obtain the consent of the taxing entity committee for the project
3496     area budget as originally adopted;
3497          (c) if approval of the taxing entity committee is required under Subsection (2)(b),
3498     obtain a written certification, signed by an attorney licensed to practice law in this state, stating
3499     that the taxing entity committee followed the appropriate procedures to approve the project

3500     area budget; and
3501          (d) adopt a resolution amending the project area budget.
3502          (3) The public hearing required under Subsection (2)(a) shall be conducted according
3503     to the procedures and requirements of Subsections 17C-2-201(2)(c) and (d), except that if the
3504     amended project area budget proposes that the agency be paid a greater proportion of tax
3505     increment from a project area than was to be paid under the previous project area budget, the
3506     notice shall state the percentage paid under the previous project area budget and the percentage
3507     proposed under the amended project area budget.
3508          (4) If the removal of a parcel under Subsection 17C-2-110(4)(a)(ii) reduces the base
3509     taxable value of the project area, an agency may amend the project area budget to conform with
3510     the new base taxable value without:
3511          (a) complying with Subsections (2)(a) and (3); and
3512          (b) if applicable, obtaining taxing entity committee approval described in Subsection
3513     (2)(b).
3514          [(4)] (5) If a proposed amendment is not adopted, the agency shall continue to operate
3515     under the previously adopted project area budget without the proposed amendment.
3516          [(5)] (6) (a) A person may contest the agency's adoption of a budget amendment within
3517     30 days after the day on which the agency adopts the amendment.
3518          (b) A person who fails to contest a budget amendment under Subsection [(5)] (6)(a):
3519          (i) forfeits any claim against an agency's adoption of the amendment; and
3520          (ii) may not contest:
3521          (A) a payment to the agency under the budget amendment; or
3522          (B) an agency's use of a tax increment under the budget amendment.
3523          Section 91. Section 17C-2-207 is amended to read:
3524          17C-2-207. Extending collection of tax increment in an urban renewal project
3525     area budget.
3526          (1) An [amendment or] extension approved by a taxing entity or taxing entity
3527     committee before May 10, 2011, is not subject to this section.
3528          (2) (a) An agency's collection of tax increment under an [adopted] urban renewal
3529     project area budget may be extended by:
3530          (i) following the project area budget amendment procedures outlined in Section

3531     17C-2-206; or
3532          (ii) following the procedures outlined in this section.
3533          (b) The base taxable value for an urban renewal project area budget may not be altered
3534     as a result of an extension under this section unless otherwise expressly provided for in an
3535     interlocal agreement adopted in accordance with Subsection (3)(a).
3536          (3) To extend under this section the [agency's collection of tax increment from a taxing
3537     entity] project area funds collection period under a previously approved project area budget, the
3538     agency shall:
3539          (a) obtain the approval of the taxing entity through an interlocal agreement;
3540          (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
3541     17C-2-201(2)(d) in the same manner as required for a [draft] proposed project area budget; and
3542          (ii) provide notice of the hearing:
3543          (A) as required by [Part 5, Urban Renewal] Chapter 1, Part 8, Hearing and Notice
3544     Requirements; and
3545          (B) including the proposed [period of extension of the project area budget] project area
3546     budget's extension period; and
3547          (c) after obtaining the [approval of the taxing entity] taxing entity's approval in
3548     accordance with Subsection (3)(a), at or after the public hearing, adopt a resolution approving
3549     the extension.
3550          (4) After the [expiration of a project area budget] project area funds collection period
3551     expires, an agency may continue to receive [tax increment] project area funds from those
3552     taxing entities that [have agreed] agree to an extension through an interlocal agreement in
3553     accordance with Subsection (3)(a).
3554          (5) (a) A person may contest the agency's adoption of [a budget] an extension within 30
3555     days after the day on which the agency adopts the resolution providing for the extension.
3556          (b) A person who fails to contest [a budget] an extension under Subsection (5)(a):
3557          (i) shall forfeit any claim against the agency's adoption of the extension; and
3558          (ii) may not contest:
3559          (A) a payment to the agency under the budget, as extended; or
3560          (B) an agency's use of tax increment under the budget, as extended.
3561          Section 92. Section 17C-2-303 is amended to read:

3562          17C-2-303. Conditions on board determination of blight -- Conditions of blight
3563     caused by the participant.
3564          (1) [An agency] A board may not make a finding of blight in a resolution under
3565     Subsection 17C-2-102(1)(a)(ii)(B) unless the board finds that:
3566          (a) (i) the proposed project area consists predominantly of nongreenfield parcels;
3567          (ii) the proposed project area is currently zoned for urban purposes and generally
3568     served by utilities;
3569          (iii) at least 50% of the parcels within the proposed project area contain nonagricultural
3570     or nonaccessory buildings or improvements used or intended for residential, commercial,
3571     industrial, or other urban purposes, or any combination of those uses;
3572          (iv) the present condition or use of the proposed project area substantially impairs the
3573     sound growth of the municipality, retards the provision of housing accommodations, or
3574     constitutes an economic liability or is detrimental to the public health, safety, or welfare, as
3575     shown by the existence within the proposed project area of at least four of the following
3576     factors:
3577          (A) one of the following, although sometimes interspersed with well maintained
3578     buildings and infrastructure:
3579          (I) substantial physical dilapidation, deterioration, or defective construction of
3580     buildings or infrastructure; or
3581          (II) significant noncompliance with current building code, safety code, health code, or
3582     fire code requirements or local ordinances;
3583          (B) unsanitary or unsafe conditions in the proposed project area that threaten the
3584     health, safety, or welfare of the community;
3585          (C) environmental hazards, as defined in state or federal law, that require remediation
3586     as a condition for current or future use and development;
3587          (D) excessive vacancy, abandoned buildings, or vacant lots within an area zoned for
3588     urban use and served by utilities;
3589          (E) abandoned or outdated facilities that pose a threat to public health, safety, or
3590     welfare;
3591          (F) criminal activity in the project area, higher than that of comparable nonblighted
3592     areas in the municipality or county; and

3593          (G) defective or unusual conditions of title rendering the title nonmarketable; and
3594          (v) (A) at least 50% of the privately-owned parcels within the proposed project area are
3595     affected by at least one of the factors, but not necessarily the same factor, listed in Subsection
3596     (1)(a)(iv); and
3597          (B) the affected parcels comprise at least 66% of the privately-owned acreage of the
3598     proposed project area; or
3599          (b) the proposed project area includes some or all of a superfund site, inactive
3600     industrial site, or inactive airport site.
3601          (2) No single parcel comprising 10% or more of the acreage of the proposed project
3602     area may be counted as satisfying Subsection (1)(a)(iii) or (iv) unless at least 50% of the area of
3603     that parcel is occupied by buildings or improvements.
3604          (3) (a) For purposes of Subsection (1), if a [developer] participant involved in the
3605     [urban renewal] project area development has caused a condition listed in Subsection (1)(a)(iv)
3606     within the proposed project area, that condition may not be used in the determination of blight.
3607          (b) Subsection (3)(a) does not apply to a condition that was caused by an owner or
3608     tenant who becomes a [developer] participant.
3609          Section 93. Section 17C-3-101.1 is enacted to read:
3610     
CHAPTER 3. ECONOMIC DEVELOPMENT

3611          17C-3-101.1. Title.
3612          This chapter is known as "Economic Development."
3613          Section 94. Section 17C-3-101.2 is enacted to read:
3614          17C-3-101.2. Applicability of chapter.
3615          This chapter applies to an economic development project area that is effective:
3616          (1) before May 10, 2016; or
3617          (2) before September 1, 2016, if an agency adopted a resolution in accordance with
3618     Section 17C-3-101 before April 1, 2016.
3619          Section 95. Section 17C-3-101.5, which is renumbered from Section 17C-3-101 is
3620     renumbered and amended to read:
3621          [17C-3-101].      17C-3-101.5. Resolution authorizing the preparation of a
3622     proposed economic development project area plan -- Request to adopt resolution.
3623          (1) [An agency] A board may begin the process of adopting an economic development

3624     project area plan by adopting a resolution that authorizes the preparation of a [draft] proposed
3625     project area plan.
3626          (2) (a) Any person or any group, association, corporation, or other entity may submit a
3627     written request to the board to adopt a resolution under Subsection (1).
3628          (b) A request under Subsection (2)(a) may include plans showing the [economic]
3629     project area development proposed for an area within the agency's boundaries.
3630          (c) The board may, in [its] the board's sole discretion, grant or deny a request under
3631     Subsection (2)(a).
3632          Section 96. Section 17C-3-102 is amended to read:
3633          17C-3-102. Process for adopting an economic development project area plan --
3634     Prerequisites -- Restrictions.
3635          (1) In order to adopt an economic development project area plan, after adopting a
3636     resolution under Subsection [17C-3-101] 17C-3-101.5(1) the agency shall:
3637          (a) prepare a [draft of an] proposed economic development project area plan and
3638     conduct any examination, investigation, and negotiation regarding the project area plan that the
3639     agency considers appropriate;
3640          (b) make the [draft] proposed project area plan available to the public at the agency's
3641     offices during normal business hours;
3642          (c) provide notice of the plan hearing as provided in [Part 4, Economic Development
3643     Notice Requirements] Chapter 1, Part 8, Hearing and Notice Requirements;
3644          (d) hold a public hearing on the [draft] proposed project area plan and, at that public
3645     hearing:
3646          (i) allow public comment on:
3647          (A) the [draft] proposed project area plan; and
3648          (B) whether the [draft] proposed project area plan should be revised, approved, or
3649     rejected; and
3650          (ii) receive all written and hear all oral objections to the [draft] proposed project area
3651     plan;
3652          (e) before holding the plan hearing, provide an opportunity for the State Board of
3653     Education and each taxing entity [that levies a tax on property] within the proposed project area
3654     to consult with the agency regarding the [draft] proposed project area plan;

3655          (f) after holding the plan hearing, at the same meeting or at a subsequent meeting
3656     consider:
3657          (i) the oral and written objections to the [draft] proposed project area plan and evidence
3658     and testimony for or against adoption of the [draft] proposed project area plan; and
3659          (ii) whether to revise, approve, or reject the [draft] proposed project area plan;
3660          (g) approve the [draft] proposed project area plan, with or without revisions, as the
3661     project area plan by a resolution that complies with Section 17C-3-105; and
3662          (h) submit the project area plan to the community legislative body for adoption.
3663          (2) An agency may not propose a project area plan under Subsection (1) unless the
3664     community in which the proposed project area is located:
3665          (a) has a planning commission; and
3666          (b) has adopted a general plan under:
3667          (i) if the community is a [city or town] municipality, Title 10, Chapter 9a, Part 4,
3668     General Plan; or
3669          (ii) if the community is a county, Title 17, Chapter 27a, Part 4, General Plan.
3670          (3) [An agency] A board may not approve a project area plan more than one year after
3671     the date of the plan hearing.
3672          (4) (a) Except as provided in Subsection (4)(b), a [draft] proposed project area plan
3673     may not be modified to add [real property] one or more parcels to the proposed project area
3674     unless the board holds a plan hearing to consider the addition and gives notice of the plan
3675     hearing as required under [Part 4, Economic Development] Chapter 1, Part 8, Hearing and
3676     Notice Requirements.
3677          (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a
3678     [draft] proposed project area plan being modified to add [real property] one or more parcels to
3679     the proposed project area if:
3680          (i) the [property] parcel is contiguous to the [property] parcels already included in the
3681     proposed project area under the [draft] proposed project area plan; and
3682          (ii) the record owner of the property consents to adding the [real property] parcel to the
3683     proposed project area.
3684          Section 97. Section 17C-3-103 is amended to read:
3685          17C-3-103. Economic development project area plan requirements.

3686          (1) Each economic development project area plan and [draft] proposed project area
3687     plan shall:
3688          (a) describe the boundaries of the project area, subject to Section 17C-1-414, if
3689     applicable;
3690          (b) contain a general statement of the land uses, layout of principal streets, population
3691     densities, and building intensities of the project area and how they will be affected by the
3692     [economic] project area development;
3693          (c) state the standards that will guide the [economic] project area development;
3694          (d) show how the purposes of this title will be attained by the [economic] project area
3695     development;
3696          (e) be consistent with the general plan of the community in which the project area is
3697     located and show that the [economic] project area development will conform to the
3698     community's general plan;
3699          (f) describe how the [economic] project area development will create additional jobs;
3700          (g) describe any specific project or projects that are the object of the proposed
3701     [economic] project area development;
3702          (h) identify how [private developers, if any,] a participant will be selected to undertake
3703     the [economic] project area development and identify each [private developer] participant
3704     currently involved in the [economic] project area development [process];
3705          (i) state the reasons for the selection of the project area;
3706          (j) describe the physical, social, and economic conditions existing in the project area;
3707          (k) describe any tax incentives offered private entities for facilities located in the
3708     project area;
3709          (l) include an analysis, as provided in Subsection (2), of whether adoption of the
3710     project area plan is beneficial under a benefit analysis;
3711          (m) if any of the existing buildings or uses in the project area are included in or eligible
3712     for inclusion in the National Register of Historic Places or the State Register, state that the
3713     agency shall comply with Subsection 9-8-404(1) as though the agency were a state agency; and
3714          (n) include other information that the agency determines to be necessary or advisable.
3715          (2) Each analysis under Subsection (1)(l) shall consider:
3716          (a) the benefit of any financial assistance or other public subsidy proposed to be

3717     provided by the agency, including:
3718          (i) an evaluation of the reasonableness of the costs of [economic] project area
3719     development;
3720          (ii) efforts the agency or [developer] participant has made or will make to maximize
3721     private investment;
3722          (iii) the rationale for use of tax increment, including an analysis of whether the
3723     proposed project area development might reasonably be expected to occur in the foreseeable
3724     future solely through private investment; and
3725          (iv) an estimate of the total amount of tax increment that will be expended in
3726     undertaking [economic] project area development and the length of time for which it will be
3727     expended; and
3728          (b) the anticipated public benefit to be derived from the [economic] project area
3729     development, including:
3730          (i) the beneficial influences upon the tax base of the community;
3731          (ii) the associated business and economic activity likely to be stimulated; and
3732          (iii) the number of jobs or employment anticipated to be generated or preserved.
3733          Section 98. Section 17C-3-105 is amended to read:
3734          17C-3-105. Board resolution approving an economic development project area
3735     plan -- Requirements.
3736          Each board resolution approving a [draft] proposed economic development project area
3737     plan as the project area plan under Subsection 17C-3-102(1)(g) shall contain:
3738          (1) a [legal] boundary description of the boundaries of the project area that is the
3739     subject of the project area plan;
3740          (2) the agency's purposes and intent with respect to the project area;
3741          (3) the project area plan incorporated by reference; and
3742          (4) the board findings and determinations that:
3743          (a) there is a need to effectuate a public purpose;
3744          (b) there is a public benefit under the analysis described in Subsection 17C-3-103(2);
3745          (c) it is economically sound and feasible to adopt and carry out the project area plan;
3746          (d) the project area plan conforms to the community's general plan; and
3747          (e) carrying out the project area plan will promote the public peace, health, safety, and

3748     welfare of the community in which the project area is located.
3749          Section 99. Section 17C-3-107 is amended to read:
3750          17C-3-107. Notice of economic development project area plan adoption --
3751     Effective date of plan -- Contesting the formation of the plan.
3752          (1) (a) Upon the community legislative body's adoption of an economic development
3753     project area plan, or an amendment to the project area plan under Section 17C-3-109 that
3754     requires notice, the legislative body shall provide notice as provided in Subsection (1)(b) by:
3755          (i) publishing or causing to be published a notice:
3756          (A) in a newspaper of general circulation within the agency's boundaries; or
3757          (B) if there is no newspaper of general circulation within the agency's boundaries,
3758     causing a notice to be posted in at least three public places within the agency's boundaries; and
3759          (ii) on the Utah Public Notice Website described in Section 63F-1-701.
3760          (b) Each notice under Subsection (1)(a) shall:
3761          (i) set forth the community legislative body's ordinance adopting the project area plan
3762     or a summary of the ordinance; and
3763          (ii) include a statement that the project area plan is available for [general] public
3764     inspection and the hours for inspection.
3765          (2) The project area plan shall become effective on the date of:
3766          (a) if notice was published under Subsection (1)(a), publication of the notice; or
3767          (b) if notice was posted under Subsection (1)(a), posting of the notice.
3768          (3) (a) For a period of 30 days after the effective date of the project area plan under
3769     Subsection (2), any person [in interest] may contest the project area plan or the procedure used
3770     to adopt the project area plan if the plan or procedure fails to comply with applicable statutory
3771     requirements.
3772          (b) After the 30-day period under Subsection (3)(a) expires, [no] a person may not
3773     contest the project area plan or procedure used to adopt the project area plan for any cause.
3774          (4) Upon adoption of the economic development project area plan by the
3775     [community's] community legislative body, the agency may [carry out] implement the project
3776     area plan.
3777          (5) Each agency shall make the [adopted] economic development project area plan
3778     available to the general public at [its offices] the agency's office during normal business hours.

3779          Section 100. Section 17C-3-108 is amended to read:
3780          17C-3-108. Agency required to transmit and record documents after adoption of
3781     economic development project area plan.
3782          Within 30 days after the community legislative body adopts, under Section 17C-3-106,
3783     an economic development project area plan, the agency shall:
3784          (1) record with the recorder of the county in which the economic development project
3785     area is located a document containing:
3786          (a) a description of the land within the project area;
3787          (b) a statement that the project area plan for the project area has been adopted; and
3788          (c) the date of adoption;
3789          (2) transmit a copy of the description of the land within the project area and an accurate
3790     map or plat indicating the boundaries of the project area to the Automated Geographic
3791     Reference Center created under Section 63F-1-506; and
3792          (3) for a project area plan that provides for the payment of tax increment to the agency,
3793     transmit a copy of the description of the land within the project area, a copy of the community
3794     legislative body ordinance adopting the project area plan, and a map or plat indicating the
3795     boundaries of the project area to:
3796          (a) the auditor, recorder, attorney, surveyor, and assessor of each county in which any
3797     part of the project area is located;
3798          (b) the officer or officers performing the function of auditor or assessor for each taxing
3799     entity that does not use the county assessment roll or collect [its] the taxing entity's taxes
3800     through the county;
3801          (c) the legislative body or governing board of each taxing entity;
3802          (d) the State Tax Commission; and
3803          (e) the State Board of Education.
3804          Section 101. Section 17C-3-109 is amended to read:
3805          17C-3-109. Amending an economic development project area plan.
3806          (1) An [adopted] economic development project area plan may be amended as
3807     provided in this section.
3808          (2) If an agency proposes to amend an [adopted] economic development project area
3809     plan to enlarge the project area:

3810          (a) the requirements under this part that apply to adopting a project area plan apply
3811     equally to the proposed amendment as if it were a proposed project area plan;
3812          (b) the base year [taxable value] for the new area added to the project area shall be
3813     determined under Subsection 17C-1-102[(6)](9)(a)(ii) using the date of the taxing entity
3814     committee's consent referred to in Subsection (2)(c); and
3815          (c) the agency shall obtain the consent of the taxing entity committee before the agency
3816     may collect tax increment from the area added to the project area by the amendment.
3817          (3) If a proposed amendment does not propose to enlarge an economic development
3818     project area, [an agency] a board may adopt a resolution approving an amendment to an
3819     [adopted] economic development project area plan after:
3820          (a) the agency gives notice, as provided in [Section 17C-3-402] Chapter 1, Part 8,
3821     Hearing and Notice Requirement, of the proposed amendment and of the public hearing
3822     required by Subsection (3)(b);
3823          (b) the [agency] board holds a public hearing on the proposed amendment that meets
3824     the requirements of a plan hearing;
3825          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
3826     amendment proposes:
3827          (i) to enlarge the area within the project area from which tax increment is [collected]
3828     received; or
3829          (ii) to permit the agency to receive a greater percentage of tax increment or to [receive
3830     tax increment for a longer period of time than allowed] extend the project area funds collection
3831     period under the [adopted] economic development project area plan; and
3832          (d) the agency obtains the consent of the legislative body or governing board of each
3833     taxing entity affected, if the amendment proposes to permit the agency to receive, from less
3834     than all taxing entities, a greater percentage of tax increment or to [receive tax increment for a
3835     longer period of time] extend the project area funds collection period, or both, than allowed
3836     under the [adopted] economic development project area plan.
3837          (4) (a) An [adopted] economic development project area plan may be amended without
3838     complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
3839     (b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
3840     amendment:

3841          (i) makes a minor adjustment in the [legal] boundary description of a project area
3842     boundary requested by a county assessor or county auditor to avoid inconsistent property
3843     boundary lines; or
3844          (ii) subject to Subsection (4)(b), removes a parcel [of real property] from a project area
3845     because the agency determines that [inclusion of the parcel is no longer necessary or desirable
3846     to the project area] the parcel is:
3847          (A) tax exempt; or
3848          (B) no longer necessary or desirable to the project area.
3849          (b) An amendment removing a parcel [of real property] from a project area under
3850     Subsection (4)(a) may not be made without the consent of the record property owner of the
3851     parcel being removed.
3852          (5) (a) An amendment approved by board resolution under this section may not take
3853     effect until adopted by ordinance of the legislative body of the community in which the project
3854     area that is the subject of the project area plan being amended is located.
3855          (b) Upon a community legislative body passing an ordinance adopting an amendment
3856     to a project area plan, the agency whose project area plan was amended shall comply with the
3857     requirements of Sections 17C-3-107 and 17C-3-108 to the same extent as if the amendment
3858     were a project area plan.
3859          Section 102. Section 17C-3-201 is amended to read:
3860          17C-3-201. Economic development project area budget -- Requirements for
3861     adopting -- Contesting the budget or procedure -- Time limit.
3862          (1) (a) If an agency anticipates funding all or a portion of a post-June 30, 1993
3863     economic development project area plan with tax increment, the agency shall, subject to
3864     Section 17C-3-202, adopt a project area budget as provided in this part.
3865          (b) An economic development project area budget adopted on or after March 30, 2009
3866     shall specify:
3867          (i) for a project area budget adopted on or after March 30, 2009:
3868          (A) the [number of tax years for which the agency will be allowed to receive tax
3869     increment from the project area] project area funds collection period; and
3870          (B) the percentage of tax increment the agency is [entitled] authorized to receive from
3871     the project area under the project area budget; and

3872          (ii) for a project area budget adopted on or after March 30, 2013, unless approval is
3873     obtained under Subsection 17C-1-402(4)(b)(vi)(C), the maximum cumulative dollar amount of
3874     tax increment that the agency may receive from the project area under the project area budget.
3875          (2) To adopt an economic development project area budget, the agency shall:
3876          (a) prepare a [draft of an] proposed economic development project area budget;
3877          (b) make a copy of the [draft] proposed project area budget available to the public at
3878     the agency's offices during normal business hours;
3879          (c) provide notice of the budget hearing as required by [Part 4, Economic
3880     Development] Chapter 1, Part 8, Hearing and Notice Requirements;
3881          (d) hold a public hearing on the [draft] proposed project area budget and, at that public
3882     hearing, allow public comment on:
3883          (i) the [draft] proposed project area budget; and
3884          (ii) whether the [draft] proposed project area budget should be revised, adopted, or
3885     rejected;
3886          (e) (i) if required under Subsection 17C-3-203(1), obtain the approval of the taxing
3887     entity committee on the [draft] proposed project area budget or a revised version of the [draft]
3888     proposed project area budget; or
3889          (ii) if applicable, comply with the requirements of Subsection 17C-3-203(2);
3890          (f) if approval of the taxing entity committee is required under Subsection (2)(e)(i),
3891     obtain a written certification, signed by an attorney licensed to practice law in this state, stating
3892     that the taxing entity committee followed the appropriate procedures to approve the project
3893     area budget; and
3894          (g) after the budget hearing, hold a board meeting in the same meeting as the public
3895     hearing or in a subsequent meeting to:
3896          (i) consider comments made and information presented at the public hearing relating to
3897     the [draft] proposed project area budget; and
3898          (ii) adopt by resolution the [draft] proposed project area budget, with any revisions, as
3899     the project area budget.
3900          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
3901     under Subsection (2)(g), any person [in interest] may contest the project area budget or the
3902     procedure used to adopt the project area budget if the budget or procedure fails to comply with

3903     applicable statutory requirements.
3904          (b) After the 30-day period under Subsection (3)(a) expires, a person[, for any cause,]
3905     may not contest:
3906          (i) the project area budget or procedure used by either the taxing entity committee or
3907     the agency to approve and adopt the project area budget;
3908          (ii) a payment to the agency under the project area budget; or
3909          (iii) the agency's use of tax increment under the project area budget.
3910          Section 103. Section 17C-3-203 is amended to read:
3911          17C-3-203. Consent of taxing entity committee required for economic
3912     development project area budget -- Exception.
3913          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), each
3914     agency shall obtain the consent of the taxing entity committee for each economic development
3915     project area budget under a post-June 30, 1993 economic development project area plan before
3916     the agency may collect any tax increment from the project area.
3917          (b) For an economic development project area budget adopted from July 1, 1998
3918     through May 1, 2000 that allocates 20% or more of the tax increment for housing as provided
3919     in Section 17C-1-412, an agency:
3920          (i) need not obtain the consent of the taxing entity committee for the project area
3921     budget; and
3922          (ii) may not [collect] receive any tax increment from all or part of the project area until
3923     after:
3924          (A) the loan fund board has certified the project area budget as complying with the
3925     requirements of Section 17C-1-412; and
3926          (B) the [agency] board has approved and adopted the project area budget by a
3927     two-thirds vote.
3928          (2) (a) Before a taxing entity committee may consent to an economic development
3929     project area budget adopted on or after May 1, 2000 that allocates 20% of tax increment for
3930     housing under Subsection 17C-3-202(2)(a) or (3), the agency shall:
3931          (i) adopt a housing plan showing the uses for the housing funds; and
3932          (ii) provide a copy of the housing plan to the taxing entity committee and the loan fund
3933     board.

3934          (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency
3935     shall provide a copy of the amendment to the taxing entity committee and the loan fund board.
3936          Section 104. Section 17C-3-205 is amended to read:
3937          17C-3-205. Amending an economic development project area budget.
3938          (1) An agency may by resolution amend an economic development project area budget
3939     as provided in this section.
3940          (2) To amend an adopted economic development project area budget, the agency shall:
3941          (a) advertise and hold one public hearing on the proposed amendment as provided in
3942     Subsection (3);
3943          (b) if approval of the taxing entity committee was required for adoption of the original
3944     project area budget, obtain the approval of the taxing entity committee to the same extent that
3945     the agency was required to obtain the consent of the taxing entity committee for the project
3946     area budget as originally adopted;
3947          (c) if approval of the taxing entity committee is required under Subsection (2)(b),
3948     obtain a written certification, signed by an attorney licensed to practice law in this state, stating
3949     that the taxing entity committee followed the appropriate procedures to approve the project
3950     area budget; and
3951          (d) adopt a resolution amending the project area budget.
3952          (3) The public hearing required under Subsection (2)(a) shall be conducted according
3953     to the procedures and requirements of Section 17C-3-201, except that if the amended project
3954     area budget proposes that the agency be paid a greater proportion of tax increment from a
3955     project area than was to be paid under the previous project area budget, the notice shall state
3956     the percentage paid under the previous project area budget and the percentage proposed under
3957     the amended project area budget.
3958          (4) If the removal of a parcel under Subsection 17C-3-109(4)(a)(ii) reduces the base
3959     taxable value of the project area, an agency may amend the project area budget to conform with
3960     the new base taxable value without:
3961          (a) complying with Subsections (2)(a) and (3); and
3962          (b) if applicable, obtaining taxing entity committee approval described in Subsection
3963     (2)(b).
3964          [(4)] (5) If a proposed amendment is not adopted, the agency shall continue to operate

3965     under the previously adopted economic development project area budget without the proposed
3966     amendment.
3967          [(5)] (6) (a) A person may contest the agency's adoption of a budget amendment within
3968     30 days after the day on which the agency adopts the amendment.
3969          (b) A person who fails to contest a budget amendment under Subsection [(5)] (6)(a):
3970          (i) forfeits any claim against an agency's adoption of the amendment; and
3971          (ii) may not contest:
3972          (A) a payment to the agency under the budget amendment; or
3973          (B) an agency's use of a tax increment under a budget amendment.
3974          Section 105. Section 17C-3-206 is amended to read:
3975          17C-3-206. Extending collection of tax increment under an economic
3976     development project area budget.
3977          (1) An amendment or extension approved by a taxing entity or taxing entity committee
3978     before May 10, 2011, is not subject to this section.
3979          (2) (a) An agency's collection of tax increment under an adopted economic
3980     development project area budget may be extended by:
3981          (i) following the project area budget amendment procedures outlined in Section
3982     17C-3-205; or
3983          (ii) following the procedures outlined in this section.
3984          (b) The base taxable value for an urban renewal project area budget may not be altered
3985     as a result of an extension under this section unless otherwise expressly provided for in an
3986     interlocal agreement adopted in accordance with Subsection (3)(a).
3987          (3) To extend under this section the agency's collection of tax increment from a taxing
3988     entity under a previously approved project area budget, the agency shall:
3989          (a) obtain the approval of the taxing entity through an interlocal agreement;
3990          (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
3991     17C-2-201(2)(d) in the same manner as required for a [draft] proposed project area budget; and
3992          (ii) provide notice of the hearing:
3993          (A) as required by [Part 4, Economic Development] Chapter 1, Part 8, Hearing and
3994     Notice Requirements; and
3995          (B) including the proposed period of extension of the project area budget; and

3996          (c) after obtaining the approval of the taxing entity in accordance with Subsection
3997     (3)(a), at or after the public hearing, adopt a resolution approving the extension.
3998          (4) After the expiration of a project area budget, an agency may continue to receive tax
3999     increment from those taxing entities that have agreed to an extension through an interlocal
4000     agreement in accordance with Subsection (3)(a).
4001          (5) (a) A person may contest the agency's adoption of a budget extension within 30
4002     days after the day on which the agency adopts the resolution providing for the extension.
4003          (b) A person who fails to contest a budget extension under Subsection (5)(a):
4004          (i) shall forfeit any claim against the agency's adoption of the extension; and
4005          (ii) may not contest:
4006          (A) a payment to the agency under the budget, as extended; or
4007          (B) an agency's use of tax increment under the budget, as extended.
4008          Section 106. Section 17C-4-101.1 is enacted to read:
4009     
CHAPTER 4. COMMUNITY DEVELOPMENT

4010          17C-4-101.1. Title.
4011          This chapter is known as "Community Development."
4012          Section 107. Section 17C-4-101.2 is enacted to read:
4013          17C-4-101.2. Applicability of chapter.
4014          This chapter applies to a community development project area that is effective:
4015          (1) before May 10, 2016; or
4016          (2) before September 1, 2016, if an agency adopted a resolution in accordance with
4017     Section 17C-4-102 before April 1, 2016.
4018          Section 108. Section 17C-4-101.5, which is renumbered from Section 17C-4-101 is
4019     renumbered and amended to read:
4020          [17C-4-101].      17C-4-101.5. Resolution authorizing the preparation of a
4021     community development proposed project area plan -- Request to adopt resolution.
4022          (1) [An agency] A board may begin the process of adopting a community development
4023     project area plan by adopting a resolution that authorizes the preparation of a [draft] proposed
4024     community development project area plan.
4025          (2) (a) Any person or any group, association, corporation, or other entity may submit a
4026     written request to the board to adopt a resolution under Subsection (1).

4027          (b) A request under Subsection (2)(a) may include plans showing the [community]
4028     project area development proposed for an area within the agency's boundaries.
4029          (c) The board may, in [its] the board's sole discretion, grant or deny a request under
4030     Subsection (2)(a).
4031          Section 109. Section 17C-4-102 is amended to read:
4032          17C-4-102. Process for adopting a community development project area plan --
4033     Prerequisites -- Restrictions.
4034          (1) In order to adopt a community development project area plan, after adopting a
4035     resolution under Subsection [17C-4-101] 17C-4-101.5(1) the agency shall:
4036          (a) prepare a [draft of a] proposed community development project area plan and
4037     conduct any examination, investigation, and negotiation regarding the project area plan that the
4038     agency considers appropriate;
4039          (b) make the [draft] proposed project area plan available to the public at the agency's
4040     offices during normal business hours;
4041          (c) provide notice of the plan hearing as [provided in Section 17C-4-402] described in
4042     Chapter 1, Part 8, Hearing and Notice Requirements;
4043          (d) hold a public hearing on the [draft] proposed project area plan and, at that public
4044     hearing:
4045          (i) allow public comment on:
4046          (A) the [draft] proposed project area plan; and
4047          (B) whether the [draft] proposed project area plan should be revised, approved, or
4048     rejected; and
4049          (ii) receive all written and hear all oral objections to the [draft] proposed project area
4050     plan;
4051          (e) after holding the plan hearing, at the same meeting or at one or more subsequent
4052     meetings consider:
4053          (i) the oral and written objections to the [draft] proposed project area plan and evidence
4054     and testimony for or against adoption of the [draft] proposed project area plan; and
4055          (ii) whether to revise, approve, or reject the [draft] proposed project area plan;
4056          (f) approve the [draft] proposed project area plan, with or without revisions, as the
4057     project area plan by a resolution that complies with Section 17C-4-104; and

4058          (g) submit the project area plan to the community legislative body for adoption.
4059          (2) An agency may not propose a community development project area plan under
4060     Subsection (1) unless the community in which the proposed project area is located:
4061          (a) has a planning commission; and
4062          (b) has adopted a general plan under:
4063          (i) if the community is a [city or town] municipality, Title 10, Chapter 9a, Part 4,
4064     General Plan; or
4065          (ii) if the community is a county, Title 17, Chapter 27a, Part 4, General Plan.
4066          (3) (a) Except as provided in Subsection (3)(b), a [draft] proposed project area plan
4067     may not be modified to add [real property] a parcel to the proposed project area unless the
4068     board holds a plan hearing to consider the addition and gives notice of the plan hearing as
4069     required under [Section 17C-4-402] Chapter 1, Part 8, Hearing and Notice Requirements.
4070          (b) The notice and hearing requirements under Subsection (3)(a) do not apply to a
4071     [draft] proposed project area plan being modified to add [real property] a parcel to the proposed
4072     project area if:
4073          (i) the [property] parcel is contiguous to [the property] one or more parcels already
4074     included in the proposed project area under the [draft] proposed project area plan; and
4075          (ii) the record owner of the property consents to adding the [real property] parcel to the
4076     proposed project area.
4077          Section 110. Section 17C-4-103 is amended to read:
4078          17C-4-103. Community development project area plan requirements.
4079          Each community development project area plan and [draft] proposed project area plan
4080     shall:
4081          (1) describe the boundaries of the project area, subject to Section 17C-1-414, if
4082     applicable;
4083          (2) contain a general statement of the land uses, layout of principal streets, population
4084     densities, and building intensities of the project area and how they will be affected by the
4085     community development;
4086          (3) state the standards that will guide the [community] project area development;
4087          (4) show how the purposes of this title will be attained by the [community] project area
4088     development;

4089          (5) be consistent with the general plan of the community in which the project area is
4090     located and show that the [community] project area development will conform to the
4091     community's general plan;
4092          (6) describe any specific project or projects that are the object of the proposed
4093     [community] project area development;
4094          (7) identify how [private developers, if any,] a participant will be selected to undertake
4095     the [community] project area development and identify each [private developer] participant
4096     currently involved in the [community] project area development [process];
4097          (8) state the reasons for the selection of the project area;
4098          (9) describe the physical, social, and economic conditions existing in the project area;
4099          (10) describe any tax incentives offered private entities for facilities located in the
4100     project area;
4101          (11) include an analysis or description of the anticipated public benefit to be derived
4102     from the [community] project area development, including:
4103          (a) the beneficial influences upon the tax base of the community; and
4104          (b) the associated business and economic activity likely to be stimulated; and
4105          (12) include other information that the agency determines to be necessary or advisable.
4106          Section 111. Section 17C-4-104 is amended to read:
4107          17C-4-104. Board resolution approving a community development project area
4108     plan -- Requirements.
4109          Each board resolution approving a [draft] proposed community development project
4110     area plan as the project area plan under Subsection 17C-4-102(1)(f) shall contain:
4111          (1) a [legal] boundary description of the boundaries of the project area that is the
4112     subject of the project area plan;
4113          (2) the agency's purposes and intent with respect to the project area;
4114          (3) the project area plan incorporated by reference; and
4115          (4) the board findings and determinations that adoption of the community development
4116     project area plan will:
4117          (a) satisfy a public purpose;
4118          (b) provide a public benefit as shown by the analysis described in Subsection
4119     17C-4-103(11);

4120          (c) be economically sound and feasible;
4121          (d) conform to the community's general plan; and
4122          (e) promote the public peace, health, safety, and welfare of the community in which the
4123     project area is located.
4124          Section 112. Section 17C-4-106 is amended to read:
4125          17C-4-106. Notice of community development project area plan adoption --
4126     Effective date of plan -- Contesting the formation of the plan.
4127          (1) (a) Upon the community legislative body's adoption of a community development
4128     project area plan, the community legislative body shall provide notice as provided in
4129     Subsection (1)(b) by:
4130          (i) (A) publishing or causing to be published a notice in a newspaper of general
4131     circulation within the agency's boundaries; or
4132          (B) if there is no newspaper of general circulation within the agency's boundaries,
4133     causing a notice to be posted in at least three public places within the agency's boundaries; and
4134          (ii) publishing or causing to be published in accordance with Section 45-1-101.
4135          (b) Each notice under Subsection (1)(a) shall:
4136          (i) set forth the community legislative body's ordinance adopting the community
4137     development project area plan or a summary of the ordinance; and
4138          (ii) include a statement that the project area plan is available for general public
4139     inspection and the hours for inspection.
4140          (2) The community development project area plan shall become effective on the date
4141     of:
4142          (a) if notice was published under Subsection (1)(a), publication of the notice; or
4143          (b) if notice was posted under Subsection (1)(a), posting of the notice.
4144          (3) (a) For a period of 30 days after the effective date of the community development
4145     project area plan under Subsection (2), any person [in interest] may contest the project area
4146     plan or the procedure used to adopt the project area plan if the plan or procedure fails to
4147     comply with applicable statutory requirements.
4148          (b) After the 30-day period under Subsection (3)(a) expires, [no] a person may not
4149     contest the community development project area plan or procedure used to adopt the project
4150     area plan for any cause.

4151          (4) Upon adoption of the community development project area plan by the
4152     [community's] community legislative body, the agency may carry out the project area plan.
4153          (5) Each agency shall make the adopted project area plan available to the [general]
4154     public at [its offices] the agency's office during normal business hours.
4155          Section 113. Section 17C-4-107 is amended to read:
4156          17C-4-107. Agency required to transmit and record documents after adoption of
4157     community development project area plan.
4158          Within 30 days after the community legislative body adopts, under Section 17C-4-105,
4159     a community development project area plan, the agency shall:
4160          (1) record with the recorder of the county in which the project area is located a
4161     document containing:
4162          (a) a description of the land within the project area;
4163          (b) a statement that the project area plan for the project area has been adopted; and
4164          (c) the date of adoption;
4165          (2) transmit a copy of the description of the land within the project area and an accurate
4166     map or plat indicating the boundaries of the project area to the Automated Geographic
4167     Reference Center created under Section 63F-1-506; and
4168          (3) for a project area plan that provides for the payment of tax increment to the agency,
4169     transmit a copy of the description of the land within the project area, a copy of the community
4170     legislative body ordinance adopting the project area plan, and a map or plat indicating the
4171     boundaries of the project area to:
4172          (a) the auditor, recorder, attorney, surveyor, and assessor of each county in which any
4173     part of the project area is located;
4174          (b) the officer or officers performing the function of auditor or assessor for each taxing
4175     entity that does not use the county assessment roll or collect [its] the taxing entity's taxes
4176     through the county;
4177          (c) the legislative body or governing board of each taxing entity;
4178          (d) the State Tax Commission; and
4179          (e) the State Board of Education.
4180          Section 114. Section 17C-4-108 is amended to read:
4181          17C-4-108. Amending a community development project area plan.

4182          (1) Except as provided in Subsection (2) and Section 17C-4-109, the requirements
4183     under this part that apply to adopting a community development project area plan apply equally
4184     to a proposed amendment of a community development project area plan as though the
4185     amendment were a proposed project area plan.
4186          (2) (a) Notwithstanding Subsection (1), [an adopted] a community development project
4187     area plan may be amended without complying with the [notice and public hearing]
4188     requirements of [this part] Chapter 1, Part 8, Hearing and Notice Requirements, if the proposed
4189     amendment:
4190          (i) makes a minor adjustment in the [legal] boundary description of a project area
4191     boundary requested by a county assessor or county auditor to avoid inconsistent property
4192     boundary lines; or
4193          (ii) subject to Subsection (2)(b), removes a parcel [of real property] from a project area
4194     because the agency determines that [inclusion of the parcel is no longer necessary or desirable
4195     to the project area.] the parcel is:
4196          (A) tax exempt; or
4197          (B) no longer necessary or desirable to the project area.
4198          (b) An amendment removing a parcel [of real property] from a community
4199     development project area under Subsection (2)(a)(ii) may not be made without the consent of
4200     the record property owner of the parcel being removed.
4201          (3) (a) An amendment approved by board resolution under this section may not take
4202     effect until adopted by ordinance of the legislative body of the community in which the project
4203     area that is the subject of the project area plan being amended is located.
4204          (b) Upon a community legislative body passing an ordinance adopting an amendment
4205     to a community development project area plan, the agency whose project area plan was
4206     amended shall comply with the requirements of Sections 17C-4-106 and 17C-4-107 to the
4207     same extent as if the amendment were a project area plan.
4208          Section 115. Section 17C-4-109 is amended to read:
4209          17C-4-109. Expedited community development project area plan.
4210          (1) As used in this section, "tax increment incentive" means the portion of tax
4211     increment awarded to an industry or business.
4212          (2) A community development project area plan may be adopted or amended without

4213     complying with the notice and public hearing requirements of this part and [Section
4214     17C-4-402] Chapter 1, Part 8, Hearing and Notice Requirements, if the following requirements
4215     are met:
4216          (a) the agency determines by resolution adopted in an open and public meeting the
4217     need to create or amend a project area plan on an expedited basis, which resolution shall
4218     include a description of why expedited action is needed;
4219          (b) a public hearing on the amendment or adoption of the project area plan is held by
4220     the agency;
4221          (c) notice of the public hearing is published at least 14 days before the public hearing
4222     on:
4223          (i) the website of the community that created the agency; and
4224          (ii) the Utah Public Notice Website created in Section 63F-1-701;
4225          (d) written consent to the amendment or adoption of the project area plan is given by
4226     all record property owners within the existing or proposed project area;
4227          (e) each taxing entity [and public entity] that will be affected by the tax increment
4228     incentive [enter] enters into or [amend] amends an interlocal agreement in accordance with
4229     Title 11, Chapter 13, Interlocal Cooperation Act, and Sections 17C-4-201, 17C-4-203, and
4230     17C-4-204;
4231          (f) the primary market for the goods or services that will be created by the industry or
4232     business entity that will receive a tax increment incentive from the amendment or adoption of
4233     the project area plan is outside of the state;
4234          (g) the industry or business entity that will receive a tax increment incentive from the
4235     amendment or adoption of the project area plan is not primarily engaged in retail trade; and
4236          (h) a tax increment incentive is only provided to an industry or business entity:
4237          (i) on a postperformance basis as described in Subsection (3); and
4238          (ii) on an annual basis after the tax increment is received by the agency.
4239          (3) An industry or business entity may only receive a tax increment incentive under this
4240     section after entering into an agreement with the agency that sets postperformance targets that
4241     shall be met before the industry or business entity may receive the tax increment incentive,
4242     including annual targets for:
4243          (a) capital investment in the project area;

4244          (b) the increase in the taxable value of the project area;
4245          (c) the number of new jobs created in the project area;
4246          (d) the average wages of the jobs created, which shall be at least 110% of the
4247     prevailing wage of the county where the project area is located; and
4248          (e) the amount of local vendor opportunity generated by the industry or business entity.
4249          Section 116. Section 17C-4-201 is amended to read:
4250          17C-4-201. Consent of a taxing entity to an agency receiving tax increment or
4251     sales tax funds for community development project.
4252          (1) An agency may negotiate with a taxing entity [and public entity] for the taxing
4253     entity's [or public entity's] consent to the agency receiving the taxing entity's [or public entity's
4254     tax increment or sales tax revenues, or both,] project area funds for the purpose of providing
4255     [funds] money to carry out a proposed or adopted community development project area plan.
4256          (2) The consent of a taxing entity [or public entity] under Subsection (1) may be
4257     expressed in:
4258          (a) a resolution adopted by the taxing entity [or public entity]; or
4259          (b) an interlocal agreement, under Title 11, Chapter 13, Interlocal Cooperation Act,
4260     between the taxing entity [or public entity] and the agency.
4261          (3) Before an agency may use [tax increment or sales tax revenues collected] project
4262     area funds received under a resolution or interlocal agreement adopted for the purpose of
4263     providing [funds] money to [carry out] implement a proposed or adopted community
4264     development project area plan, the agency shall:
4265          (a) obtain a written certification, signed by an attorney licensed to practice law in this
4266     state, stating that the agency and the taxing entity have each followed all legal requirements
4267     relating to the adoption of the resolution or interlocal agreement, respectively; and
4268          (b) provide a signed copy of the certification described in Subsection (3)(a) to the
4269     appropriate taxing entity.
4270          (4) A resolution adopted or interlocal agreement entered under Subsection (2) on or
4271     after March 30, 2009 shall specify:
4272          (a) if the resolution or interlocal agreement provides for the agency to be paid tax
4273     increment:
4274          (i) the method of calculating the amount of the taxing entity's tax increment from the

4275     project area that will be paid to the agency, including the agreed base year and agreed base
4276     taxable value;
4277          (ii) the [number of tax years that the agency will be paid the taxing entity's tax
4278     increment from the project area] project area funds collection period; and
4279          (iii) the percentage of the taxing entity's tax increment or maximum cumulative dollar
4280     amount of the taxing entity's tax increment that the agency will be paid; and
4281          (b) if the resolution or interlocal agreement provides for the agency to be paid a
4282     [public] taxing entity's sales and use tax revenue:
4283          (i) the method of calculating the amount of the [public] taxing entity's sales and use tax
4284     revenue that the agency will be paid;
4285          (ii) [the number of tax years that the agency will be paid the sales tax revenue] the
4286     project area funds collection period; and
4287          (iii) the percentage of sales tax revenue or the maximum cumulative dollar amount of
4288     sales and use tax revenue that the agency will be paid.
4289          (5) (a) Unless the taxing entity otherwise agrees, an agency may not be paid a taxing
4290     entity's tax increment:
4291          (i) that exceeds the percentage or maximum cumulative dollar amount of tax increment
4292     specified in the resolution or interlocal agreement under Subsection (2); or
4293          (ii) for more tax years than specified in the resolution or interlocal agreement under
4294     Subsection (2).
4295          (b) Unless the [public] taxing entity otherwise agrees, an agency may not be paid a
4296     [public] taxing entity's sales and use tax revenue:
4297          (i) that exceeds the percentage or maximum cumulative dollar amount of sales and use
4298     tax revenue specified in the resolution or interlocal agreement under Subsection (2); or
4299          (ii) for more tax years than specified in the resolution or interlocal agreement under
4300     Subsection (2).
4301          (6) A school district may consent to an agency receiving tax increment from the school
4302     district's basic levy only to the extent that the school district also consents to the agency
4303     receiving tax increment from the school district's local levy.
4304          (7) (a) A resolution or interlocal agreement under this section may be amended from
4305     time to time.

4306          (b) Each amendment of a resolution or interlocal agreement shall be subject to and
4307     receive the benefits of the provisions of this part to the same extent as if the amendment were
4308     an original resolution or interlocal agreement.
4309          (8) A taxing entity's [or public entity's] consent to an agency receiving funds under this
4310     section is not subject to the requirements of Section 10-8-2.
4311          (9) (a) For purposes of this Subsection (9), "successor taxing entity" means any taxing
4312     entity that:
4313          (i) is created after the date of adoption of a resolution or execution of an interlocal
4314     agreement under this section; and
4315          (ii) levies a tax on any parcel of property located within the project area that is the
4316     subject of the resolution or the interlocal agreement described in Subsection (9)(a)(i).
4317          (b) A resolution or interlocal agreement executed by a taxing entity under this section
4318     may be enforced by or against any successor taxing entity.
4319          Section 117. Section 17C-4-202 is amended to read:
4320          17C-4-202. Resolution or interlocal agreement to provide project area funds for
4321     the community development project area plan -- Notice -- Effective date of resolution or
4322     interlocal agreement -- Time to contest resolution or interlocal agreement -- Availability
4323     of resolution or interlocal agreement.
4324          (1) The approval and adoption of each resolution or interlocal agreement under
4325     Subsection 17C-4-201(2) shall be in an open and public meeting.
4326          (2) (a) Upon the adoption of a resolution or interlocal agreement under Section
4327     17C-4-201, the agency shall provide notice as provided in Subsection (2)(b) by:
4328          (i) (A) publishing or causing to be published a notice in a newspaper of general
4329     circulation within the agency's boundaries; or
4330          (B) if there is no newspaper of general circulation within the agency's boundaries,
4331     causing a notice to be posted in at least three public places within the agency's boundaries; and
4332          (ii) publishing or causing to be published a notice on the Utah Public Notice Website
4333     created in Section 63F-1-701.
4334          (b) Each notice under Subsection (2)(a) shall:
4335          (i) set forth a summary of the resolution or interlocal agreement; and
4336          (ii) include a statement that the resolution or interlocal agreement is available for

4337     [general] public inspection and the hours of inspection.
4338          (3) The resolution or interlocal agreement shall become effective on the date of:
4339          (a) if notice was published under Subsection (2)(a)(i)(A) or (2)(a)(ii), publication of the
4340     notice; or
4341          (b) if notice was posted under Subsection (2)(a)(i)(B), posting of the notice.
4342          (4) (a) For a period of 30 days after the effective date of the resolution or interlocal
4343     agreement under Subsection (3), any person [in interest] may contest the resolution or
4344     interlocal agreement or the procedure used to adopt the resolution or interlocal agreement if the
4345     resolution or interlocal agreement or procedure fails to comply with applicable statutory
4346     requirements.
4347          (b) After the 30-day period under Subsection (4)(a) expires, a person may not[, for any
4348     cause,] contest:
4349          (i) the resolution or interlocal agreement;
4350          (ii) a payment to the agency under the resolution or interlocal agreement; or
4351          (iii) the agency's use of [tax increment] project area funds under the resolution or
4352     interlocal agreement.
4353          (5) Each agency that is to receive project area funds under a resolution or interlocal
4354     agreement under Section 17C-4-201 and each taxing entity [or public entity] that approves a
4355     resolution or enters into an interlocal agreement under Section 17C-4-201 shall make the
4356     resolution or interlocal agreement, as the case may be, available at [its] the taxing entity's
4357     offices to the [general] public for inspection and copying during normal business hours.
4358          Section 118. Section 17C-4-203 is amended to read:
4359          17C-4-203. Requirement to file a copy of the resolution or interlocal agreement --
4360     County payment of tax increment to the agency.
4361          (1) Each agency that is to receive funds under a resolution or interlocal agreement
4362     under Section 17C-4-201 shall, within 30 days after the effective date of the resolution or
4363     interlocal agreement, file a copy of it with:
4364          (a) the State Tax Commission, the State Board of Education, and the state auditor; and
4365          (b) the auditor of the county in which the project area is located, if the resolution or
4366     interlocal agreement provides for the agency to receive tax increment from the taxing entity [or
4367     public entity] that adopted the resolution or entered into the interlocal agreement.

4368          (2) Each county that collects property tax on property within a community
4369     development project area shall, in the manner and at the time provided in Section 59-2-1365,
4370     pay and distribute to the agency the tax increment that the agency is [entitled] authorized to
4371     receive under a resolution approved or an interlocal agreement adopted under Section
4372     17C-4-201.
4373          Section 119. Section 17C-4-204 is amended to read:
4374          17C-4-204. Adoption of a budget for a community development project area plan
4375     -- Amendment.
4376          (1) An agency may prepare and, by resolution adopted at a regular or special meeting
4377     of the [agency] board, adopt a community development project area budget setting forth:
4378          (a) the anticipated costs, including administrative costs, of implementing the
4379     community development project area plan; and
4380          (b) the tax increment, sales and use tax revenue, and other revenue the agency
4381     anticipates receiving to fund the project.
4382          (2) An agency may, by resolution adopted at a regular or special meeting of the
4383     [agency] board, amend a budget adopted under Subsection (1).
4384          (3) Each resolution to adopt or amend a budget under this section shall appear as an
4385     item on the agenda for the regular or special [agency] board meeting at which the resolution is
4386     adopted without additional required notice.
4387          (4) An agency is not required to obtain approval of the taxing entity committee for a
4388     community development project area budget.
4389          Section 120. Section 17C-5-101 is enacted to read:
4390     
CHAPTER 5. COMMUNITY REINVESTMENT

4391     
Part 1. Community Reinvestment Project Area Plan

4392          17C-5-101. Title.
4393          (1) This chapter is known as "Community Reinvestment."
4394          (2) This part is known as "Community Reinvestment Project Area Plan."
4395          Section 121. Section 17C-5-102 is enacted to read:
4396          17C-5-102. Applicability of chapter.
4397          This chapter applies to a community reinvestment project area created on or after May
4398     10, 2016.

4399          Section 122. Section 17C-5-103 is enacted to read:
4400          17C-5-103. Initiating a community reinvestment project area plan.
4401          (1) A board shall initiate the process of adopting a community reinvestment project
4402     area plan by adopting a survey area resolution that:
4403          (a) designates a geographic area located within the agency's boundaries as a survey
4404     area;
4405          (b) contains a description or map of the boundaries of the survey area;
4406          (c) contains a statement that the survey area requires study to determine whether
4407     project area development is feasible within one or more proposed community reinvestment
4408     project areas within the survey area; and
4409          (d) authorizes the agency to:
4410          (i) prepare a proposed community reinvestment project area plan for each proposed
4411     community reinvestment project area; and
4412          (ii) conduct any examination, investigation, or negotiation regarding the proposed
4413     community reinvestment project area that the agency considers appropriate.
4414          (2) If an agency anticipates an activity described in Subsection 17C-5-402(1) within the
4415     survey area, the resolution described in Subsection (1) shall include:
4416          (a) a statement that the survey area requires study to determine whether blight exists
4417     within the survey area; and
4418          (b) authorization for the agency to conduct a blight study in accordance with Section
4419     17C-5-403.
4420          Section 123. Section 17C-5-104 is enacted to read:
4421          17C-5-104. Process for adopting a community reinvestment project area plan --
4422     Prerequisites -- Restrictions.
4423          (1) An agency may not propose a community reinvestment project area plan unless the
4424     community in which the proposed community reinvestment project area plan is located:
4425          (a) has a planning commission; and
4426          (b) has adopted a general plan under:
4427          (i) if the community is a municipality, Title 10, Chapter 9a, Part 4, General Plan; or
4428          (ii) if the community is a county, Title 17, Chapter 27a, Part 4, General Plan.
4429          (2) (a) Before an agency may adopt a proposed community reinvestment project area

4430     plan, the agency shall make a blight determination in accordance with Section 17C-5-402 if the
4431     agency anticipates an activity described in Subsection 17C-5-402(1) for which a blight
4432     determination is required.
4433          (b) If applicable, an agency may not approve a community reinvestment project area
4434     plan more than one year after the adoption of a resolution making a finding of blight under
4435     Section 17C-5-402.
4436          (3) To adopt a community reinvestment project area plan, an agency shall:
4437          (a) prepare a proposed community reinvestment project area plan in accordance with
4438     Section 17C-5-105;
4439          (b) make the proposed community reinvestment project area plan available to the
4440     public at the agency's office during normal business hours for at least 30 days before the plan
4441     hearing described in Subsection (3)(e);
4442          (c) before holding the plan hearing described in Subsection (3)(e), provide an
4443     opportunity for the State Board of Education and each taxing entity that levies or imposes a tax
4444     within the proposed community reinvestment project area to consult with the agency regarding
4445     the proposed community reinvestment project area plan;
4446          (d) provide notice of the plan hearing in accordance with Chapter 1, Part 8, Hearing
4447     and Notice Requirements;
4448          (e) hold a plan hearing on the proposed community reinvestment project area plan and,
4449     at the plan hearing:
4450          (i) allow public comment on:
4451          (A) the proposed community reinvestment project area plan; and
4452          (B) whether the agency should revise, approve, or reject the proposed community
4453     reinvestment project area plan; and
4454          (ii) receive all written and oral objections to the proposed community reinvestment
4455     project area plan; and
4456          (f) following the plan hearing described in Subsection (3)(e), or at a subsequent agency
4457     meeting:
4458          (i) consider:
4459          (A) the oral and written objections to the proposed community reinvestment project
4460     area plan and evidence and testimony for and against adoption of the proposed community

4461     reinvestment project area plan; and
4462          (B) whether to revise, approve, or reject the proposed community reinvestment project
4463     area plan;
4464          (ii) adopt a resolution in accordance with Section 17C-5-108 that approves the
4465     proposed community reinvestment project area plan, with or without revisions, as the
4466     community reinvestment project area plan; and
4467          (iii) submit the community reinvestment project area plan to the community legislative
4468     body for adoption.
4469          (4) (a) Except as provided in Subsection (4)(b), an agency may not modify a proposed
4470     community reinvestment project area plan to add a parcel to the proposed community
4471     reinvestment project area unless the agency holds a plan hearing to consider the addition and
4472     gives notice of the plan hearing in accordance with Chapter 1, Part 8, Hearing and Notice
4473     Requirements.
4474          (b) The notice and hearing requirements described in Subsection (4)(a) do not apply to
4475     a proposed community reinvestment project area plan being modified to add a parcel to the
4476     proposed community reinvestment project area if:
4477          (i) the parcel is contiguous to one or more parcels already included in the proposed
4478     community reinvestment project area under the proposed community reinvestment project area
4479     plan;
4480          (ii) the record owner of the parcel consents to adding the parcel to the proposed
4481     community reinvestment project area; and
4482          (iii) the parcel is located within the survey area.
4483          Section 124. Section 17C-5-105 is enacted to read:
4484          17C-5-105. Community reinvestment project area plan requirements.
4485          (1) Each community reinvestment project area plan and proposed community
4486     reinvestment project area plan shall:
4487          (a) subject to Section 17C-1-414, if applicable, include a boundary description and a
4488     map of the community reinvestment project area;
4489          (b) contain a general statement of the existing land uses, layout of principal streets,
4490     population densities, and building intensities of the community reinvestment project area and
4491     how each will be affected by the project area development;

4492          (c) state the standards that will guide the project area development;
4493          (d) show how the project area development will further purposes of this title;
4494          (e) be consistent with the general plan of the community in which the community
4495     reinvestment project area is located and show that the project area development will conform to
4496     the community's general plan;
4497          (f) if applicable, describe how project area development will eliminate or reduce blight
4498     in the community reinvestment project area;
4499          (g) describe any specific project area development that is the object of the community
4500     reinvestment project area plan;
4501          (h) if applicable, explain how the agency plans to select a participant;
4502          (i) state each reason the agency selected the community reinvestment project area;
4503          (j) describe the physical, social, and economic conditions that exist in the community
4504     reinvestment project area;
4505          (k) describe each type of financial assistance that the agency anticipates offering a
4506     participant;
4507          (l) report the results of the public benefit analysis described in Subsection (2);
4508          (m) if applicable, state that the agency shall comply with Section 9-8-404 as required
4509     under Section 17C-5-106;
4510          (n) state whether the community reinvestment project area plan or proposed
4511     community reinvestment project area plan is subject to a taxing entity committee or an
4512     interlocal agreement; and
4513          (o) include other information that the agency determines to be necessary or advisable.
4514          (2) (a) An agency shall conduct an analysis in accordance with Subsection (2)(b) to
4515     determine whether the proposed community reinvestment project area plan will provide a
4516     public benefit.
4517          (b) The analysis described in Subsection (2)(a) shall consider:
4518          (i) the benefit of any financial assistance or other public subsidy proposed to be
4519     provided by the agency, including:
4520          (A) an evaluation of the reasonableness of the costs of the proposed project area
4521     development;
4522          (B) efforts that have been, or will be made, to maximize private investment;

4523          (C) the rationale for use of project area funds, including an analysis of whether the
4524     proposed project area development might reasonably be expected to occur in the foreseeable
4525     future solely through private investment; and
4526          (D) an estimate of the total amount of project area funds that the agency intends to
4527     spend on project area development and the length of time over which the project area funds
4528     will be spent; and
4529          (ii) the anticipated public benefit derived from the proposed project area development,
4530     including:
4531          (A) the beneficial influences on the community's tax base;
4532          (B) the associated business and economic activity the proposed project area
4533     development will likely stimulate; and
4534          (C) whether adoption of the proposed community reinvestment project area plan is
4535     necessary and appropriate to undertake the proposed project area development.
4536          Section 125. Section 17C-5-106 is enacted to read:
4537          17C-5-106. Existing and historic buildings and uses in a community reinvestment
4538     project area.
4539          An agency shall comply with Section 9-8-404 as though the agency is a state agency if:
4540          (1) any of the existing buildings or uses in a community reinvestment project area are
4541     included in, or eligible for inclusion in, the National Register of Historic Places or the State
4542     Register; and
4543          (2) the agency spends agency funds on the demolition or rehabilitation of existing
4544     buildings described in Subsection (1).
4545          Section 126. Section 17C-5-107 is enacted to read:
4546          17C-5-107. Objections to a community reinvestment project area plan.
4547          (1) At any time before or during a plan hearing, a person may object in writing or
4548     orally to a proposed community reinvestment project area plan.
4549          (2) An agency may not approve a proposed community reinvestment project area plan
4550     if, after receiving public comment at a plan hearing in accordance with Subsection
4551     17C-5-104(3)(e)(i), the record property owners of at least 51% of the private land area within
4552     the proposed community reinvestment project area object to the proposed community
4553     reinvestment project area plan.

4554          Section 127. Section 17C-5-108 is enacted to read:
4555          17C-5-108. Board resolution approving a community reinvestment project area
4556     plan -- Requirements.
4557          A board resolution approving a proposed community reinvestment area plan as the
4558     community reinvestment project area plan under Section 17C-5-104 shall contain:
4559          (1) a boundary description of the community reinvestment project area that is the
4560     subject of the community reinvestment project area plan;
4561          (2) the agency's purposes and intent with respect to the community reinvestment
4562     project area;
4563          (3) the proposed community reinvestment project area plan incorporated by reference;
4564          (4) the board findings and determinations that the proposed community reinvestment
4565     project area plan:
4566          (a) serves a public purpose;
4567          (b) produces a public benefit as demonstrated by the analysis described in Subsection
4568     17C-5-105(2);
4569          (c) is economically sound and feasible;
4570          (d) conforms to the community's general plan; and
4571          (e) promotes the public peace, health, safety, and welfare of the community in which
4572     the proposed community reinvestment project area is located; and
4573          (5) if the board made a finding of blight under Section 17C-5-402, a statement that the
4574     board made a finding of blight within the proposed community reinvestment project area and
4575     the date on which the board made the finding of blight.
4576          Section 128. Section 17C-5-109 is enacted to read:
4577          17C-5-109. Community reinvestment project area plan to be adopted by
4578     community legislative body.
4579          (1) A proposed community reinvestment project area plan approved by board
4580     resolution under Section 17C-5-104 may not take effect until the community legislative body:
4581          (a) by ordinance, adopts the proposed community reinvestment project area plan; and
4582          (b) provides notice in accordance with Section 17C-5-110.
4583          (2) An ordinance described in Subsection (1)(a) shall designate the community
4584     reinvestment project area plan as the official plan of the community reinvestment project area.

4585          Section 129. Section 17C-5-110 is enacted to read:
4586          17C-5-110. Notice of community reinvestment project area plan adoption --
4587     Effective date of plan -- Contesting the formation of the plan.
4588          (1) (a) Upon a community legislative body's adoption of a community reinvestment
4589     project area plan in accordance with Section 17C-5-109, or an amendment to a community
4590     reinvestment project area plan in accordance with Section 17C-5-112, the community
4591     legislative body shall provide notice of the adoption or amendment in accordance with
4592     Subsection (1)(b) by:
4593          (i) (A) causing a notice to be published in a newspaper of general circulation within the
4594     community; or
4595          (B) if there is no newspaper of general circulation within the community, causing a
4596     notice to be posted in at least three public places within the community; and
4597          (ii) posting a notice on the Utah Public Notice Website described in Section
4598     63F-1-701.
4599          (b) A notice described in Subsection (1)(a) shall include:
4600          (i) a copy of the community legislative body's ordinance, or a summary of the
4601     ordinance, that adopts the community reinvestment project area plan; and
4602          (ii) a statement that the community reinvestment project area plan is available for
4603     public inspection and the hours for inspection.
4604          (2) A community reinvestment project area plan is effective on the day on which notice
4605     of adoption is published or posted in accordance with Subsection (1)(a).
4606          (3) A community reinvestment project area is considered created the day on which the
4607     community reinvestment project area plan becomes effective as described in Subsection (2).
4608          (4) (a) Within 30 days after the day on which a community reinvestment project area
4609     plan is effective, a person may contest the community reinvestment project area plan or the
4610     procedure used to adopt the community reinvestment project area plan if the community
4611     reinvestment project area plan or the procedure fails to comply with a provision of this title.
4612          (b) After the 30-day period described in Subsection (4)(a) expires, a person may not
4613     contest the community reinvestment project area plan or the procedure used to adopt the
4614     community reinvestment project area plan.
4615          (5) Upon adoption of a community reinvestment project area plan by the community

4616     legislative body, the agency may implement the community reinvestment project area plan.
4617          (6) The agency shall make the community reinvestment project area plan available to
4618     the public at the agency's office during normal business hours.
4619          Section 130. Section 17C-5-111 is enacted to read:
4620          17C-5-111. Agency required to transmit and record documentation after adoption
4621     of community reinvestment project area plan.
4622          Within 30 days after the day on which a community legislative body adopts a
4623     community reinvestment project area plan under Section 17C-5-109, the agency shall:
4624          (1) record with the recorder of the county in which the community reinvestment project
4625     area is located a document containing:
4626          (a) the name of the community reinvestment project area;
4627          (b) a boundary description of the community reinvestment project area; and
4628          (c) (i) a statement that the community legislative body adopted the community
4629     reinvestment project area plan; and
4630          (ii) the day on which the community legislative body adopted the community
4631     reinvestment project area plan;
4632          (2) transmit a copy of a description of the land within the community reinvestment
4633     project area and an accurate map or plat indicating the boundaries of the community
4634     reinvestment project area to the Automated Geographic Reference Center created in Section
4635     63F-1-506; and
4636          (3) for a community reinvestment project area plan that provides for the payment of tax
4637     increment to the agency, transmit a copy of a description of the land within the community
4638     reinvestment project area, a copy of the community legislative body ordinance adopting the
4639     community reinvestment project area plan, and an accurate map or plat indicating the
4640     boundaries of the community reinvestment project area to:
4641          (a) the auditor, recorder, county or district attorney, surveyor, and assessor of each
4642     county in which any part of the community reinvestment project area is located;
4643          (b) the officer or officers performing the function of auditor or assessor for each taxing
4644     entity that does not use the county assessment roll or collect the taxing entity's taxes through
4645     the county;
4646          (c) the legislative body or governing board of each taxing entity;

4647          (d) the State Tax Commission; and
4648          (e) the State Board of Education.
4649          Section 131. Section 17C-5-112 is enacted to read:
4650          17C-5-112. Amending a community reinvestment area plan.
4651          (1) An agency may amend a community reinvestment project area plan in accordance
4652     with this section.
4653          (2) (a) If an amendment proposes to enlarge a community reinvestment project area's
4654     geographic area, the agency shall:
4655          (i) comply with this part as though the agency were creating a community reinvestment
4656     project area;
4657          (ii) if the agency anticipates receiving project area funds from the area proposed to be
4658     added to the community reinvestment project area, before the agency may collect project area
4659     funds:
4660          (A) for a community reinvestment project area plan that is subject to a taxing entity
4661     committee, obtain approval to receive tax increment from the taxing entity committee; or
4662          (B) for a community reinvestment project area plan that is subject to an interlocal
4663     agreement, obtain the approval of the taxing entity that is a party to the interlocal agreement;
4664     and
4665          (iii) if the agency anticipates activity within the area proposed to be added to the
4666     community reinvestment project area that requires a finding of blight under Subsection
4667     17C-5-402(2), follow the procedures described in Section 17C-5-402.
4668          (b) The base year for the area proposed to be added to the community reinvestment
4669     project area shall be determined using the date of:
4670          (i) the taxing entity committee's consent as described in Subsection (2)(a)(ii)(A); or
4671          (ii) the taxing entity's consent as described in Subsection (2)(a)(ii)(B).
4672          (3) If an amendment does not propose to enlarge a community reinvestment project
4673     area's geographic area, the board may adopt a resolution approving the amendment after the
4674     agency:
4675          (a) if the amendment does not propose to allow the agency to receive a greater amount
4676     of project area funds or to extend a project area funds collection period:
4677          (i) gives notice in accordance with Section 17C-1-806; and

4678          (ii) holds a public hearing on the proposed amendment that meets the requirements
4679     described in Subsection 17C-5-104(2); or
4680          (b) if the amendment proposes to also allow the agency to receive a greater amount of
4681     project area funds or to extend a project area funds collection period:
4682          (i) complies with Subsection (3)(a)(i) and (ii); and
4683          (ii) (A) for a community reinvestment project area plan that is subject to a taxing entity
4684     committee, obtains approval from the taxing entity committee; or
4685          (B) for a community reinvestment project area plan that is subject to an interlocal
4686     agreement, obtains approval to receive project area funds from the taxing entity that is a party
4687     to the interlocal agreement.
4688          (4) An agency may amend a community reinvestment project area plan without
4689     obtaining the consent of a taxing entity or a taxing entity committee and without providing
4690     notice or holding a public hearing if the amendment:
4691          (a) makes a minor adjustment in the community reinvestment project area boundary
4692     that is requested by a county assessor or county auditor to avoid inconsistent property boundary
4693     lines; or
4694          (b) removes a parcel from a community reinvestment project area because the agency
4695     determines that the parcel is:
4696          (i) no longer blighted;
4697          (ii) tax exempt; or
4698          (iii) no longer necessary or desirable to the project area.
4699          (5) (a) An amendment approved by board resolution under this section may not take
4700     effect until the community legislative body adopts an ordinance approving the amendment.
4701          (b) Upon the community legislative body adopting an ordinance approving an
4702     amendment under Subsection (5)(a), the agency shall comply with the requirements described
4703     in Sections 17C-5-110 and 17C-5-111 as if the amendment were a community reinvestment
4704     project area plan.
4705          Section 132. Section 17C-5-113 is enacted to read:
4706          17C-5-113. Expedited community reinvestment project area plan.
4707          (1) As used in this section:
4708          (a) "Qualified business entity" means a business entity that:

4709          (i) has a primary market for the qualified business entity's goods or services outside of
4710     the state; and
4711          (ii) is not primarily engaged in retail sales.
4712          (b) "Tax increment incentive" means the portion of an agency's tax increment that is
4713     paid to a qualified business entity for the purpose of implementing a community reinvestment
4714     project area plan.
4715          (2) An agency and a qualified business entity may, in accordance with Subsection (3),
4716     enter into an agreement that allows the qualified business entity to receive a tax increment
4717     incentive.
4718          (3) An agreement described in Subsection (2) shall set annual postperformance targets
4719     for:
4720          (a) capital investment within the community reinvestment project area;
4721          (b) the number of new jobs created within the community reinvestment project area;
4722          (c) the average wage of the jobs described in Subsection (3)(b) that is at least 110% of
4723     the prevailing wage of the county within which the community reinvestment project area is
4724     located; and
4725          (d) the amount of local vendor opportunity generated by the qualified business entity.
4726          (4) A qualified business entity may only receive a tax increment incentive:
4727          (a) if the qualified business entity complies with the agreement described in Subsection
4728     (3);
4729          (b) on a postperformance basis; and
4730          (c) on an annual basis after the agency receives tax increment from a taxing entity.
4731          (5) An agency may create or amend a community reinvestment project area plan for the
4732     purpose of providing a tax increment incentive without complying with the requirements
4733     described in Chapter 1, Part 8, Hearing and Notice Requirements, if:
4734          (a) the agency:
4735          (i) holds a public hearing to consider the need to create or amend a community
4736     reinvestment project area plan on an expedited basis;
4737          (ii) posts notice at least 14 days before the day on which the public hearing described
4738     in Subsection (5)(a)(i) is held on:
4739          (A) the community's website; and

4740          (B) the Utah Public Notice Website as described in Section 63F-1-701; and
4741          (iii) at the hearing described in Subsection (5)(a)(i), adopts a resolution to create or
4742     amend the community reinvestment project area plan on an expedited basis;
4743          (b) all record property owners within the existing or proposed community reinvestment
4744     project area plan give written consent; and
4745          (c) each taxing entity affected by the tax increment incentive consents and enters into
4746     an interlocal agreement with the agency authorizing the agency to pay a tax increment incentive
4747     to the qualified business entity.
4748          Section 133. Section 17C-5-201 is enacted to read:
4749     
Part 2. Community Reinvestment Project Area Funds

4750          17C-5-201. Title.
4751          This part is known as "Community Reinvestment Project Area Funds."
4752          Section 134. Section 17C-5-202 is enacted to read:
4753          17C-5-202. Community reinvestment project area funding options.
4754          (1) (a) Except as provided in Subsection (1)(b), for the purpose of funding project area
4755     development within a community reinvestment project area, an agency shall negotiate and enter
4756     into an interlocal agreement with a taxing entity in accordance with Section 17C-5-204 to
4757     receive all or a portion of the taxing entity's tax increment or sales and use tax revenue in
4758     accordance with the interlocal agreement.
4759          (b) If an agency plans to use eminent domain to acquire property within a community
4760     reinvestment project area, the agency shall create a taxing entity committee as described in
4761     Section 17C-1-402 and receive tax increment in accordance with Section 17C-5-203.
4762          (2) An agency shall comply with Chapter 5, Part 3, Community Reinvestment Project
4763     Area Budget, regardless of whether an agency enters into an interlocal agreement under
4764     Subsection (1)(a) or creates a taxing entity committee under Subsection (1)(b).
4765          Section 135. Section 17C-5-203 is enacted to read:
4766          17C-5-203. Community reinvestment project area subject to taxing entity
4767     committee -- Tax increment.
4768          (1) This section applies to a community reinvestment project area that is subject to a
4769     taxing entity committee under Subsection 17C-5-202(1)(b).
4770          (2) Subject to the taxing entity committee's approval of a community reinvestment

4771     project area budget under Section 17C-5-304, and for the purpose of implementing a
4772     community reinvestment project area plan, an agency may receive up to 100% of a taxing
4773     entity's tax increment, or any specified dollar amount of tax increment, for any period of time.
4774          (3) Notwithstanding Subsection (2), an agency that adopts a community reinvestment
4775     project area plan that is subject to a taxing entity committee may negotiate and enter into an
4776     interlocal agreement with a taxing entity and receive all or a portion of the taxing entity's sales
4777     and use tax revenue for any period of time.
4778          Section 136. Section 17C-5-204 is enacted to read:
4779          17C-5-204. Community reinvestment project area subject to interlocal agreement
4780     -- Consent of a taxing entity to an agency receiving project area funds.
4781          (1) As used in this section, "successor taxing entity" means a taxing entity that:
4782          (a) is created after the day on which an interlocal agreement is executed to allow an
4783     agency to receive a taxing entity's project area funds; and
4784          (b) levies or imposes a tax within the community reinvestment project area.
4785          (2) This section applies to a community reinvestment project area that is subject to an
4786     interlocal agreement under Subsection 17C-5-202(1)(a).
4787          (3) For the purpose of implementing a community reinvestment project area plan, an
4788     agency may negotiate with a taxing entity for all or a portion of the taxing entity's project area
4789     funds.
4790          (4) A taxing entity may agree to pay an agency the taxing entity's project area funds by
4791     executing an interlocal agreement with the agency in accordance with Title 11, Chapter 13,
4792     Interlocal Cooperation Act.
4793          (5) Before an agency may use project area funds received under an interlocal
4794     agreement described in Subsection (4), the agency shall:
4795          (a) obtain a written certification, signed by an attorney licensed to practice law in the
4796     state, stating that the agency and the taxing entity have each followed all legal requirements
4797     relating to the adoption of the interlocal agreement; and
4798          (b) provide a signed copy of the certification described in Subsection (5)(a) to the
4799     taxing entity.
4800          (6) An interlocal agreement described in Subsection (4) shall:
4801          (a) if the interlocal agreement provides for the taxing entity to pay the agency tax

4802     increment, state:
4803          (i) the method of calculating the amount of the taxing entity's tax increment from the
4804     community reinvestment project area that the taxing entity will pay to the agency, including the
4805     base year and base taxable value;
4806          (ii) the project area funds collection period; and
4807          (iii) the percentage of the taxing entity's tax increment or the maximum cumulative
4808     dollar amount of the taxing entity's tax increment that the taxing entity will pay the agency;
4809          (b) if the interlocal agreement provides for the taxing entity to pay the agency the
4810     taxing entity's sales and use tax revenue, state:
4811          (i) the method of calculating the amount of the taxing entity's sales and use tax revenue
4812     that the taxing entity will pay the agency;
4813          (ii) the project area funds collection period; and
4814          (iii) the percentage of sales tax revenue or the maximum cumulative dollar amount of
4815     sales and use tax revenue that the taxing entity will pay the agency; and
4816          (c) include a copy of the community reinvestment project area budget.
4817          (7) A school district may consent to pay an agency tax increment from the school
4818     district's basic levy only to the extent that the school district also consents to pay the agency tax
4819     increment from the school district's local levy.
4820          (8) The parties may amend an interlocal agreement under this section by mutual
4821     consent.
4822          (9) A taxing entity's consent to pay an agency project area funds under this section is
4823     not subject to the requirements of Section 10-8-2.
4824          (10) An interlocal agreement executed by a taxing entity under this section may be
4825     enforced by or against any successor taxing entity.
4826          Section 137. Section 17C-5-205 is enacted to read:
4827          17C-5-205. Interlocal agreement to provide project area funds for the community
4828     reinvestment project area subject to interlocal agreement -- Notice -- Effective date of
4829     interlocal agreement -- Time to contest interlocal agreement -- Availability of interlocal
4830     agreement.
4831          (1) The agency shall approve and adopt an interlocal agreement described in Section
4832     17C-5-204 at an open and public meeting.

4833          (2) (a) Upon the execution of an interlocal agreement described in Section 17C-5-204,
4834     the agency shall provide notice of the execution by:
4835          (i) (A) publishing or causing to be published a notice in a newspaper of general
4836     circulation within the agency's boundaries; or
4837          (B) if there is no newspaper of general circulation within the agency's boundaries,
4838     causing the notice to be posted in at least three public places within the agency's boundaries;
4839     and
4840          (ii) publishing or causing the notice to be published on the Utah Public Notice Website
4841     created in Section 63F-1-701.
4842          (b) A notice described in Subsection (2)(a) shall include:
4843          (i) a summary of the interlocal agreement; and
4844          (ii) a statement that the interlocal agreement is available for public inspection and the
4845     hours for inspection.
4846          (3) An interlocal agreement described in Section 17C-5-204 is effective the day on
4847     which the notice described in Subsection (2) is published or posted in accordance with
4848     Subsection (2)(a).
4849          (4) (a) Within 30 days after the day on which the interlocal agreement is effective, a
4850     person may contest the interlocal agreement or the procedure used to adopt the interlocal
4851     agreement if the interlocal agreement or procedure fails to comply with a provision of this title.
4852          (b) After the 30-day period described in Subsection (4)(a) expires, a person may not
4853     contest:
4854          (i) the interlocal agreement;
4855          (ii) a payment to the agency under the interlocal agreement; or
4856          (iii) the agency's use of project area funds under the interlocal agreement.
4857          (5) A taxing entity that enters into an interlocal agreement under Section 17C-5-204
4858     shall make a copy of the interlocal agreement available to the public at the taxing entity's office
4859     for inspection and copying during normal business hours.
4860          Section 138. Section 17C-5-206 is enacted to read:
4861          17C-5-206. Requirement to file a copy of the interlocal agreement -- County
4862     payment of tax increment.
4863          (1) An agency that receives project area funds under an interlocal agreement shall,

4864     within 30 days after the day on which the interlocal agreement is effective, file a copy of the
4865     interlocal agreement with:
4866          (a) the State Tax Commission, the State Board of Education, and the state auditor; and
4867          (b) the auditor of the county in which the community reinvestment project area is
4868     located, if the interlocal agreement authorizes the agency to receive tax increment.
4869          (2) A county that collects property tax on property within a community reinvestment
4870     project area that is subject to an interlocal agreement shall, in accordance with Section
4871     59-2-1365, pay and distribute to the agency the tax increment that the agency is authorized to
4872     receive under the interlocal agreement.
4873          Section 139. Section 17C-5-301 is enacted to read:
4874     
Part 3. Community Reinvestment Project Area Budget

4875          17C-5-301. Title.
4876          This part is known as "Community Reinvestment Project Area Budget."
4877          Section 140. Section 17C-5-302 is enacted to read:
4878          17C-5-302. Procedure for adopting a community reinvestment project area
4879     budget -- Contesting the budget -- Time limit.
4880          (1) An agency shall adopt a community reinvestment project area budget in accordance
4881     with this part.
4882          (2) To adopt a community reinvestment project area budget, an agency shall:
4883          (a) prepare a proposed community reinvestment project area budget in accordance with
4884     Section 17C-5-303;
4885          (b) obtain the consent of the taxing entity committee or taxing entity in accordance
4886     with Section 17C-5-304;
4887          (c) make a copy of the proposed community reinvestment project area budget available
4888     to the public at the agency's office during normal business hours for at least 30 days before the
4889     budget hearing described in Subsection (2)(e);
4890          (d) provide notice of the budget hearing in accordance with Chapter 1, Part 8, Hearing
4891     and Notice Requirements;
4892          (e) hold a budget hearing on the proposed community reinvestment project area budget
4893     and, at the budget hearing, allow public comment on:
4894          (i) the proposed community reinvestment project area budget; and

4895          (ii) whether the agency should revise, adopt, or reject the proposed community
4896     reinvestment project area budget; and
4897          (f) after the budget hearing described in Subsection (2)(e), or at a subsequent meeting:
4898          (i) consider the comments and information from the budget hearing relating to the
4899     proposed community reinvestment project area budget; and
4900          (ii) reject or adopt by resolution the proposed community reinvestment project area
4901     budget, with any revisions, as the community reinvestment project area budget.
4902          (3) (a) Within 30 days after the day on which the agency adopts a community
4903     reinvestment project area budget, a person may contest the community reinvestment project
4904     area budget or the procedure used to adopt the community reinvestment project area budget if
4905     the community reinvestment project area budget or procedure fails to comply with a provision
4906     of this title.
4907          (b) After the 30-day period described in Subsection (3)(a) expires, a person may not
4908     contest:
4909          (i) the community reinvestment project area budget or the procedure used by the taxing
4910     entity, the taxing entity committee, or the agency to adopt the community reinvestment project
4911     area budget;
4912          (ii) a payment to the agency under the community reinvestment project area budget; or
4913          (iii) the agency's use of project area funds under the community reinvestment project
4914     area budget.
4915          Section 141. Section 17C-5-303 is enacted to read:
4916          17C-5-303. Community reinvestment project area budget -- Requirements.
4917          A community reinvestment project area budget shall include:
4918          (1) if the agency receives tax increment:
4919          (a) the base taxable value;
4920          (b) the projected amount of tax increment to be generated within the community
4921     reinvestment project area;
4922          (c) each project area funds collection period;
4923          (d) if applicable, the projected amount of tax increment to be paid to other taxing
4924     entities in accordance with Section 17C-1-410;
4925          (e) if the area from which tax increment is collected is less than the entire community

4926     reinvestment project area:
4927          (i) a boundary description of the portion or portions of the community reinvestment
4928     project area from which the agency receives tax increment; and
4929          (ii) for each portion described in Subsection (1)(e)(i), the period of time during which
4930     tax increment is collected;
4931          (f) the percentage of tax increment the agency is authorized to receive from the
4932     community reinvestment project area; and
4933          (g) the maximum cumulative dollar amount of tax increment the agency is authorized
4934     to receive from the community reinvestment project area;
4935          (2) if the agency receives sales and use tax revenue:
4936          (a) the percentage and total amount of sales and use tax revenue to be paid to the
4937     agency; and
4938          (b) each project area funds collection period;
4939          (3) the amount of project area funds the agency will use to implement the community
4940     reinvestment project area plan, including the estimated amount of project area funds that will
4941     be used for land acquisition, public improvements, infrastructure improvements, or any loans,
4942     grants, or other incentives to private or public entities;
4943          (4) the agency's combined incremental value;
4944          (5) the amount of project area funds that will be used to cover the cost of administering
4945     the community reinvestment project area plan; and
4946          (6) for property that the agency owns and expects to sell, the expected total cost of the
4947     property to the agency and the expected sale price.
4948          Section 142. Section 17C-5-304 is enacted to read:
4949          17C-5-304. Consent of each taxing entity or taxing entity committee required for
4950     community reinvestment project area budget.
4951          Before an agency may collect any project area funds from a community reinvestment
4952     project area, the agency shall obtain consent for each community reinvestment project area
4953     budget from:
4954          (1) for a community reinvestment project area that is subject to an interlocal
4955     agreement, each taxing entity that is a party to an interlocal agreement; or
4956          (2) for a community reinvestment project area that is subject to a taxing entity

4957     committee, the taxing entity committee.
4958          Section 143. Section 17C-5-305 is enacted to read:
4959          17C-5-305. Filing a copy of the community reinvestment project area budget.
4960          Within 30 days after the day on which an agency adopts a community reinvestment
4961     project area budget, the agency shall file a copy of the community reinvestment project area
4962     budget with:
4963          (1) the State Tax Commission;
4964          (2) the State Board of Education;
4965          (3) the state auditor;
4966          (4) the auditor of the county in which the community reinvestment project area is
4967     located; and
4968          (5) each taxing entity affected by the agency's collection of project area funds under the
4969     community reinvestment project area budget.
4970          Section 144. Section 17C-5-306 is enacted to read:
4971          17C-5-306. Amending a community reinvestment project area budget.
4972          (1) Before a project area funds collection period ends, an agency may amend a
4973     community reinvestment project area budget in accordance with this section.
4974          (2) To amend a community reinvestment project area budget, an agency shall:
4975          (a) provide notice and hold a public hearing on the proposed amendment in accordance
4976     with Chapter 1, Part 8, Hearing and Notice Requirements;
4977          (b) (i) if the community reinvestment project area budget required approval from a
4978     taxing entity committee, obtain the taxing entity committee's approval; or
4979          (ii) if the community reinvestment project area budget required an interlocal agreement
4980     with a taxing entity, obtain approval from the taxing entity that is a party to the interlocal
4981     agreement; and
4982          (c) at the public hearing described in Subsection (2)(a) or at a subsequent board
4983     meeting, by resolution, adopt the community reinvestment project area budget amendment.
4984          (3) If an agency proposes a community reinvestment project area budget amendment
4985     under which the agency is paid a greater proportion of tax increment from the community
4986     reinvestment project area than provided under the community reinvestment project area budget,
4987     the notice described in Subsection (2)(a) shall state:

4988          (a) the percentage of tax increment paid under the community reinvestment project
4989     area budget; and
4990          (b) the proposed percentage of tax increment paid under the community reinvestment
4991     project area budget amendment.
4992          (4) (a) If an agency proposes a community reinvestment project area budget
4993     amendment that extends a project area funds collection period, before a taxing entity
4994     committee or taxing entity may provide the taxing entity committee's or taxing entity's approval
4995     described in Subsection (2)(b), the agency shall provide to the taxing entity committee or
4996     taxing entity:
4997          (i) the reasons why the extension is required;
4998          (ii) a description of the project area development for which project area funds received
4999     by the agency under the extension will be used;
5000          (iii) a statement of whether the project area funds received by the agency under the
5001     extension will be used within an active project area or a proposed project area; and
5002          (iv) a revised community reinvestment project area budget that includes:
5003          (A) the annual and total amounts of project area funds that the agency receives under
5004     the extension; and
5005          (B) the number of years that are added to each project area funds collection period
5006     under the extension.
5007          (b) With respect to an amendment described in Subsection (4)(a), a taxing entity
5008     committee or taxing entity may consent to:
5009          (i) allow an agency to use project area funds received under an extension within a
5010     different project area from which the project area funds are generated; or
5011          (ii) alter the base taxable value in connection with a community reinvestment project
5012     area budget extension.
5013          (5) If an agency proposes a community reinvestment project area budget amendment
5014     that reduces the base taxable value of the project area due to the removal of a parcel under
5015     Subsection 17C-5-112(4)(b), an agency may amend a project area budget without:
5016          (a) complying with Subsection (2)(a); and
5017          (b) obtaining taxing entity committee or taxing entity approval described in Subsection
5018     (2)(b).

5019          (6) (a) A person may contest an agency's adoption of a community reinvestment project
5020     area budget amendment within 30 days after the day on which the agency adopts the
5021     community reinvestment project area budget amendment.
5022          (b) After the 30-day period described in Subsection (6)(a), a person may not contest:
5023          (i) the agency's adoption of the community reinvestment project area budget
5024     amendment;
5025          (ii) a payment to the agency under the community reinvestment project area budget
5026     amendment; or
5027          (iii) the agency's use of project area funds received under the community reinvestment
5028     project area budget amendment.
5029          Section 145. Section 17C-5-307 is enacted to read:
5030          17C-5-307. Allocating project area funds for housing.
5031          (1) (a) For a community reinvestment project area that is subject to a taxing entity
5032     committee, an agency shall allocate at least 20% of the agency's annual tax increment for
5033     housing in accordance with Section 17C-1-412 if the community reinvestment project area
5034     budget provides for more than $100,000 of annual tax increment to be paid to the agency.
5035          (b) The taxing entity committee may waive the 20% allocation described in Subsection
5036     (1)(a) in part or whole if the taxing entity committee determines that 20% of tax increment is
5037     more than is needed to address the community's need for income targeted housing or homeless
5038     assistance.
5039          (2) For a community reinvestment project area that is subject to an interlocal
5040     agreement, the agency and the taxing entity that is a party to the interlocal agreement shall
5041     determine whether to allocate a portion of the project area funds under a community
5042     reinvestment project area budget for housing in accordance with Section 17C-1-411 or
5043     17C-1-412.
5044          Section 146. Section 17C-5-401 is enacted to read:
5045     
Part 4. Blight Determination in a Community Reinvestment Project Area

5046          17C-5-401. Title.
5047          This part is known as "Blight Determination in a Community Reinvestment Project
5048     Area."
5049          Section 147. Section 17C-5-402 is enacted to read:

5050          17C-5-402. Blight determination in a community reinvestment project area --
5051     Prerequisites -- Restrictions.
5052          (1) An agency shall comply with the provisions of this section before the agency may
5053     use eminent domain to acquire property under Chapter 1, Part 9, Eminent Domain.
5054          (2) An agency shall, after adopting a survey area resolution as described in Section
5055     17C-5-103:
5056          (a) cause a blight study to be conducted within the survey area in accordance with
5057     Section 17C-5-403;
5058          (b) provide notice and hold a blight hearing in accordance with Chapter 1, Part 8,
5059     Hearing and Notice Requirements; and
5060          (c) after the blight hearing, at the same or at a subsequent meeting:
5061          (i) consider:
5062          (A) the issue of blight and the evidence and information relating to the existence or
5063     nonexistence of blight; and
5064          (B) whether the agency should pursue adoption of one or more community
5065     reinvestment project area plans; and
5066          (ii) by resolution, make a finding regarding whether blight exists in the proposed
5067     community reinvestment project area.
5068          (3) (a) If an agency makes a finding of blight under Subsection (2), the agency may not
5069     adopt the community reinvestment project area plan until the taxing entity committee approves
5070     the finding of blight.
5071          (b) (i) A taxing entity committee shall approve an agency's finding of blight unless the
5072     taxing entity committee demonstrates that the conditions the agency found to exist in the
5073     community reinvestment project area that support the agency's finding of blight:
5074          (A) do not exist; or
5075          (B) do not constitute blight under Section 17C-5-405.
5076          (ii) (A) If the taxing entity committee questions or disputes the existence of some or all
5077     of the blight conditions that the agency found to exist in the proposed community reinvestment
5078     area, the taxing entity committee may hire a consultant, mutually agreed upon by the taxing
5079     entity committee and the agency, with the necessary expertise to assist the taxing entity
5080     committee in making a determination as to the existence of the questioned or disputed blight

5081     conditions.
5082          (B) The agency shall pay the fees and expenses of each consultant hired under
5083     Subsection (3)(b)(ii)(A).
5084          (C) The findings of a consultant hired under Subsection (3)(b)(ii)(A) are binding on the
5085     taxing entity committee and the agency.
5086          Section 148. Section 17C-5-403 is enacted to read:
5087          17C-5-403. Blight study -- Requirements -- Deadline.
5088          (1) A blight study shall:
5089          (a) undertake a parcel by parcel survey of the survey area;
5090          (b) provide data so the board and taxing entity committee may determine:
5091          (i) whether the conditions described in Subsection 17C-5-405:
5092          (A) exist in part or all of the survey area; and
5093          (B) meet the qualifications for a finding of blight in all or part of the survey area; and
5094          (ii) whether the survey area contains all or part of a superfund site;
5095          (c) include a written report that states:
5096          (i) the conclusions reached;
5097          (ii) any area within the survey area that meets the statutory criteria of blight under
5098     Section 17C-5-405; and
5099          (iii) any other information requested by the agency to determine whether blight exists
5100     within the survey area; and
5101          (d) be completed within one year after the day on which the survey area resolution is
5102     adopted.
5103          (2) (a) If a blight study is not completed within the time described in Subsection (1)(d),
5104     the agency may not approve a community reinvestment project area plan based on a blight
5105     study unless the agency first adopts a new resolution under Subsection 17C-5-103(1).
5106          (b) A new resolution described in Subsection (2)(a) shall in all respects be considered
5107     to be a resolution under Subsection 17C-5-103(1) adopted for the first time, except that any
5108     actions taken toward completing a blight study under the resolution that the new resolution
5109     replaces shall be considered to have been taken under the new resolution.
5110          (3) (a) For the purpose of making a blight determination under Subsection
5111     17C-5-402(2)(c)(ii), a blight study is valid for one year from the day on which the blight study

5112     is completed.
5113          (b) (i) Except as provided in Subsection (3)(b)(ii), an agency that makes a blight
5114     determination under a valid blight study and subsequently adopts a community reinvestment
5115     project area plan in accordance with Section 17C-5-104 may amend the community
5116     reinvestment project area plan without conducting a new blight study.
5117          (ii) An agency shall conduct a new blight study if the agency proposes an amendment
5118     to a community reinvestment project area plan that:
5119          (A) increases the community reinvestment project area's geographic boundary and the
5120     area proposed to be added was not included in the original blight study; and
5121          (B) provides for the use of eminent domain within the area proposed to be added to the
5122     community reinvestment project area.
5123          Section 149. Section 17C-5-404 is enacted to read:
5124          17C-5-404. Blight hearing -- Owners may review evidence of blight.
5125          (1) In a hearing required under Subsection 17C-5-402(2)(b), an agency shall:
5126          (a) permit all evidence of the existence or nonexistence of blight within the survey area
5127     to be presented; and
5128          (b) permit each record owner of property located within the survey area or the record
5129     property owner's representative the opportunity to:
5130          (i) examine and cross-examine each witness that provides evidence of the existence or
5131     nonexistence of blight; and
5132          (ii) present evidence and testimony, including expert testimony, concerning the
5133     existence or nonexistence of blight.
5134          (2) An agency shall allow each record owner of property located within a survey area
5135     the opportunity, for at least 30 days before the day on which the hearing takes place, to review
5136     the evidence of blight compiled by the agency or by the person or firm conducting the blight
5137     study for the agency, including any expert report.
5138          Section 150. Section 17C-5-405 is enacted to read:
5139          17C-5-405. Conditions on board determination of blight -- Conditions of blight
5140     caused by a participant.
5141          (1) A board may not make a finding of blight in a resolution under Subsection
5142     17C-5-402(2)(c)(ii) unless the board finds that:

5143          (a) (i) the survey area consists predominantly of nongreenfield parcels;
5144          (ii) the survey area is currently zoned for urban purposes and generally served by
5145     utilities;
5146          (iii) at least 50% of the parcels within the survey area contain nonagricultural or
5147     nonaccessory buildings or improvements used or intended for residential, commercial,
5148     industrial, or other urban purposes;
5149          (iv) the present condition or use of the survey area substantially impairs the sound
5150     growth of the community, delays the provision of housing accommodations, constitutes an
5151     economic liability, or is detrimental to the public health, safety, or welfare, as shown by the
5152     existence within the survey area of at least four of the following factors:
5153          (A) although sometimes interspersed with well maintained buildings and infrastructure,
5154     substantial physical dilapidation, deterioration, or defective construction of buildings or
5155     infrastructure, or significant noncompliance with current building code, safety code, health
5156     code, or fire code requirements or local ordinances;
5157          (B) unsanitary or unsafe conditions in the survey area that threaten the health, safety, or
5158     welfare of the community;
5159          (C) environmental hazards, as defined in state or federal law, which require
5160     remediation as a condition for current or future use and development;
5161          (D) excessive vacancy, abandoned buildings, or vacant lots within an area zoned for
5162     urban use and served by utilities;
5163          (E) abandoned or outdated facilities that pose a threat to public health, safety, or
5164     welfare;
5165          (F) criminal activity in the survey area, higher than that of comparable nonblighted
5166     areas in the municipality or county; and
5167          (G) defective or unusual conditions of title rendering the title nonmarketable; and
5168          (v) (A) at least 50% of the privately owned parcels within the survey area are affected
5169     by at least one of the factors, but not necessarily the same factor, listed in Subsection (1)(a)(iv);
5170     and
5171          (B) the affected parcels comprise at least 66% of the privately owned acreage within
5172     the survey area; or
5173          (b) the survey area includes some or all of a superfund site, inactive industrial site, or

5174     inactive airport site.
5175          (2) A single parcel comprising 10% or more of the acreage within the survey area may
5176     not be counted as satisfying the requirement described in Subsection (1)(a)(iii) or (iv) unless at
5177     least 50% of the area of the parcel is occupied by buildings or improvements.
5178          (3) (a) Except as provided in Subsection (3)(b), for purposes of Subsection (1), if a
5179     participant or proposed participant involved in the project area development has caused a
5180     condition listed in Subsection (1)(a)(iv) within the survey area, that condition may not be used
5181     in the determination of blight.
5182          (b) Subsection (3)(a) does not apply to a condition that was caused by an owner or
5183     tenant who later becomes a participant.
5184          Section 151. Section 17C-5-406 is enacted to read:
5185          17C-5-406. Challenging a finding of blight -- Time limit -- De novo review.
5186          (1) If a board makes a finding of blight under Subsection 17C-5-402(2)(c)(ii) and the
5187     finding is approved by resolution adopted by the taxing entity committee, a record owner of
5188     property located within the survey area may challenge the finding by filing an action in the
5189     district court in the county in which the property is located.
5190          (2) A person shall file an action under Subsection (1) no later than 30 days after the day
5191     on which the taxing entity committee approves the board's finding of blight.
5192          (3) In an action under this section, the district court shall review the finding of blight
5193     under the standards of review provided in Subsection 10-9a-801(3).
5194          Section 152. Section 20A-7-613 is amended to read:
5195          20A-7-613. Property tax referendum petition.
5196          (1) As used in this section:
5197          (a) "Certified tax rate" [is as] means the same as that term is defined in Subsection
5198     59-2-924[(3)](5)(a).
5199          (b) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year
5200     that begins on July 1 and ends on June 30.
5201          (2) Except as provided in this section, the requirements of this part apply to a
5202     referendum petition challenging a fiscal year taxing entity's legislative body's vote to impose a
5203     tax rate that exceeds the certified tax rate.
5204          (3) Notwithstanding Subsection 20A-7-604(5), the local clerk shall number each of the

5205     referendum packets and return them to the sponsors within two working days.
5206          (4) Notwithstanding Subsection 20A-7-606(1), the sponsors shall deliver each signed
5207     and verified referendum packet to the county clerk of the county in which the packet was
5208     circulated no later than 40 days after the day on which the local clerk complies with Subsection
5209     (3).
5210          (5) Notwithstanding Subsections 20A-7-606(2) and (3), the county clerk shall take the
5211     actions required in Subsections 20A-7-606(2) and (3) within 10 working days after the day on
5212     which the county clerk receives the signed and verified referendum packet as described in
5213     Subsection (4).
5214          (6) The local clerk shall take the actions required by Section 20A-7-607 within two
5215     working days after the day on which the local clerk receives the referendum packets from the
5216     county clerk.
5217          (7) Notwithstanding Subsection 20A-7-608(2), the local attorney shall prepare the
5218     ballot title within two working days after the day on which the referendum petition is declared
5219     sufficient for submission to a vote of the people.
5220          (8) Notwithstanding Subsection 20A-7-609(2)(c), a referendum that qualifies for the
5221     ballot under this section shall appear on the ballot for the earlier of the next regular general
5222     election or the next municipal general election unless a special election is called.
5223          (9) Notwithstanding the requirements related to absentee ballots under this title:
5224          (a) the election officer shall prepare absentee ballots for those voters who have
5225     requested an absentee ballot as soon as possible after the ballot title is prepared as described in
5226     Subsection (7); and
5227          (b) the election officer shall mail absentee ballots on a referendum under this section
5228     the later of:
5229          (i) the time provided in Section 20A-3-305 or 20A-16-403; or
5230          (ii) the time that absentee ballots are prepared for mailing under this section.
5231          (10) Section 20A-7-402 does not apply to a referendum described in this section.
5232          (11) (a) If a majority of voters does not vote against imposing the tax at a rate
5233     calculated to generate the increased revenue budgeted, adopted, and approved by the fiscal year
5234     taxing entity's legislative body:
5235          (i) the certified tax rate for the fiscal year during which the referendum petition is filed

5236     is its most recent certified tax rate; and
5237          (ii) the proposed increased revenues for purposes of establishing the certified tax rate
5238     for the fiscal year after the fiscal year described in Subsection (11)(a)(i) are the proposed
5239     increased revenues budgeted, adopted, and approved by the fiscal year taxing entity's legislative
5240     body before the filing of the referendum petition.
5241          (b) If a majority of voters votes against imposing a tax at the rate established by the
5242     vote of the fiscal year taxing entity's legislative body, the certified tax rate for the fiscal year
5243     taxing entity is its most recent certified tax rate.
5244          (c) If the tax rate is set in accordance with Subsection (11)(a)(ii), a fiscal year taxing
5245     entity is not required to comply with the notice and public hearing requirements of Section
5246     59-2-919 if the fiscal year taxing entity complies with those notice and public hearing
5247     requirements before the referendum petition is filed.
5248          (12) The ballot title shall, at a minimum, include in substantially this form the
5249     following: "Shall the [name of the taxing entity] be authorized to levy a tax rate in the amount
5250     sufficient to generate an increased property tax revenue of [amount] for fiscal year [year] as
5251     budgeted, adopted, and approved by the [name of the taxing entity]".
5252          (13) A fiscal year taxing entity shall pay the county the costs incurred by the county
5253     that are directly related to meeting the requirements of this section and that the county would
5254     not have incurred but for compliance with this section.
5255          (14) (a) An election officer shall include on a ballot a referendum that has not yet
5256     qualified for placement on the ballot, if:
5257          (i) sponsors file an application for a referendum described in this section;
5258          (ii) the ballot will be used for the election for which the sponsors are attempting to
5259     qualify the referendum; and
5260          (iii) the deadline for qualifying the referendum for placement on the ballot occurs after
5261     the day on which the ballot will be printed.
5262          (b) If an election officer includes on a ballot a referendum described in Subsection
5263     (14)(a), the ballot title shall comply with Subsection (12).
5264          (c) If an election officer includes on a ballot a referendum described in Subsection
5265     (14)(a) that does not qualify for placement on the ballot, the election officer shall inform the
5266     voters by any practicable method that the referendum has not qualified for the ballot and that

5267     votes cast in relation to the referendum will not be counted.
5268          Section 153. Section 35A-8-504 is amended to read:
5269          35A-8-504. Distribution of fund money.
5270          (1) The executive director shall:
5271          (a) make grants and loans from the fund for any of the activities authorized by Section
5272     35A-8-505, as directed by the board;
5273          (b) establish the criteria with the approval of the board by which loans and grants will
5274     be made; and
5275          (c) determine with the approval of the board the order in which projects will be funded.
5276          (2) The executive director shall distribute, as directed by the board, any federal money
5277     contained in the fund according to the procedures, conditions, and restrictions placed upon the
5278     use of the money by the federal government.
5279          (3) (a) The executive director shall distribute, as directed by the board, any funds
5280     received under Section 17C-1-412 to pay the costs of providing income targeted housing within
5281     the community that created the community [development and renewal] reinvestment agency
5282     under Title 17C, Limited Purpose Local Government Entities - Community [Development and
5283     Renewal Agencies] Reinvestment Agency Act.
5284          (b) As used in Subsection (3)(a):
5285          (i) "Community" [has the meaning as] means the same as that term is defined in
5286     Section 17C-1-102.
5287          (ii) "Income targeted housing" [has the meaning as] means the same as that term is
5288     defined in Section 17C-1-102.
5289          (4) Except for federal money and money received under Section 17C-1-412, the
5290     executive director shall distribute, as directed by the board, money from the fund according to
5291     the following requirements:
5292          (a) Not less than 30% of all fund money shall be distributed to rural areas of the state.
5293          (b) At least 50% of the money in the fund shall be distributed as loans to be repaid to
5294     the fund by the entity receiving them.
5295          (i) (A) Of the fund money distributed as loans, at least 50% shall be distributed to
5296     benefit persons whose annual income is at or below 50% of the median family income for the
5297     state.

5298          (B) The remaining loan money shall be distributed to benefit persons whose annual
5299     income is at or below 80% of the median family income for the state.
5300          (ii) The executive director or the executive director's designee shall lend money in
5301     accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
5302          (c) Any fund money not distributed as loans shall be distributed as grants.
5303          (i) At least 90% of the fund money distributed as grants shall be distributed to benefit
5304     persons whose annual income is at or below 50% of the median family income for the state.
5305          (ii) The remaining fund money distributed as grants may be used by the executive
5306     director to obtain federal matching funds or for other uses consistent with the intent of this part,
5307     including the payment of reasonable loan servicing costs, but no more than 3% of the revenues
5308     of the fund may be used to offset other department or board administrative expenses.
5309          (5) The executive director may with the approval of the board:
5310          (a) enact rules to establish procedures for the grant and loan process by following the
5311     procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
5312     and
5313          (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
5314     servicing of loans made by the fund.
5315          Section 154. Section 38-1b-102 is amended to read:
5316          38-1b-102. Definitions.
5317          As used in this chapter:
5318          (1) "Alternate means" [has the same meaning as] means the same as that term is
5319     defined in Section 38-1a-102.
5320          (2) "Construction project" [has the same meaning as] means the same as that term is
5321     defined in Section 38-1a-102.
5322          (3) "Construction work" [has the same meaning as] means the same as that term is
5323     defined in Section 38-1a-102.
5324          (4) "Designated agent" [has the same meaning as] means the same as that term is
5325     defined in Section 38-1a-102.
5326          (5) "Division" means the Division of Occupational and Professional Licensing created
5327     in Section 58-1-103.
5328          (6) "Government project" means a construction project undertaken by or for:

5329          (a) the state, including a department, division, or other agency of the state; or
5330          (b) a county, city, town, school district, local district, special service district,
5331     community [development and renewal] reinvestment agency, or other political subdivision of
5332     the state.
5333          (7) "Government project-identifying information" means:
5334          (a) the lot or parcel number of each lot included in the project property that has a lot or
5335     parcel number; or
5336          (b) the unique project number assigned by the designated agent.
5337          (8) "Original contractor" [has the same meaning as] means the same as that term is
5338     defined in Section 38-1a-102.
5339          (9) "Owner" [has the same meaning as] means the same as that term is defined in
5340     Section 38-1a-102.
5341          (10) "Owner-builder" [has the same meaning as] means the same as that term is
5342     defined in Section 38-1a-102.
5343          (11) "Private project" means a construction project that is not a government project.
5344          (12) "Project property" [has the same meaning as] means the same as that term is
5345     defined in Section 38-1a-102.
5346          (13) "Registry" [has the same meaning as] means the same as that term is defined in
5347     Section 38-1a-102.
5348          Section 155. Section 53-3-207 is amended to read:
5349          53-3-207. License certificates or driving privilege cards issued to drivers by class
5350     of motor vehicle -- Contents -- Release of anatomical gift information -- Temporary
5351     licenses or driving privilege cards -- Minors' licenses, cards, and permits -- Violation.
5352          (1) As used in this section:
5353          (a) "Driving privilege" means the privilege granted under this chapter to drive a motor
5354     vehicle.
5355          (b) "Governmental entity" means the state and its political subdivisions as defined in
5356     this Subsection (1).
5357          (c) "Political subdivision" means any county, city, town, school district, public transit
5358     district, community [development and renewal] reinvestment agency, special improvement or
5359     taxing district, local district, special service district, an entity created by an interlocal

5360     agreement adopted under Title 11, Chapter 13, Interlocal Cooperation Act, or other
5361     governmental subdivision or public corporation.
5362          (d) "State" means this state, and includes any office, department, agency, authority,
5363     commission, board, institution, hospital, college, university, children's justice center, or other
5364     instrumentality of the state.
5365          (2) (a) The division shall issue to every person privileged to drive a motor vehicle, a
5366     regular license certificate, a limited-term license certificate, or a driving privilege card
5367     indicating the type or class of motor vehicle the person may drive.
5368          (b) A person may not drive a class of motor vehicle unless granted the privilege in that
5369     class.
5370          (3) (a) Every regular license certificate, limited-term license certificate, or driving
5371     privilege card shall bear:
5372          (i) the distinguishing number assigned to the person by the division;
5373          (ii) the name, birth date, and Utah residence address of the person;
5374          (iii) a brief description of the person for the purpose of identification;
5375          (iv) any restrictions imposed on the license under Section 53-3-208;
5376          (v) a photograph of the person;
5377          (vi) a photograph or other facsimile of the person's signature;
5378          (vii) an indication whether the person intends to make an anatomical gift under Title
5379     26, Chapter 28, Revised Uniform Anatomical Gift Act, unless the driving privilege is extended
5380     under Subsection 53-3-214(3); and
5381          (viii) except as provided in Subsection (3)(b), if the person states that the person is a
5382     veteran of the United States military on the application for a driver license in accordance with
5383     Section 53-3-205 and provides verification that the person was granted an honorable or general
5384     discharge from the United States Armed Forces, an indication that the person is a United States
5385     military veteran for a regular license certificate or limited-term license certificate issued on or
5386     after July 1, 2011.
5387          (b) A regular license certificate or limited-term license certificate issued to any person
5388     younger than 21 years on a portrait-style format as required in Subsection (5)(b)(i) is not
5389     required to include an indication that the person is a United States military veteran under
5390     Subsection (3)(a)(viii).

5391          (c) A new license certificate issued by the division may not bear the person's Social
5392     Security number.
5393          (d) (i) The regular license certificate, limited-term license certificate, or driving
5394     privilege card shall be of an impervious material, resistant to wear, damage, and alteration.
5395          (ii) Except as provided under Subsection (4)(b), the size, form, and color of the regular
5396     license certificate, limited-term license certificate, or driving privilege card shall be as
5397     prescribed by the commissioner.
5398          (iii) The commissioner may also prescribe the issuance of a special type of limited
5399     regular license certificate, limited-term license certificate, or driving privilege card under
5400     Subsection 53-3-220(4).
5401          (4) (a) (i) The division, upon determining after an examination that an applicant is
5402     mentally and physically qualified to be granted a driving privilege, may issue to an applicant a
5403     receipt for the fee if the applicant is eligible for a regular license certificate or limited-term
5404     license certificate.
5405          (ii) (A) The division shall issue a temporary regular license certificate or temporary
5406     limited-term license certificate allowing the person to drive a motor vehicle while the division
5407     is completing its investigation to determine whether the person is entitled to be granted a
5408     driving privilege.
5409          (B) A temporary regular license certificate or a temporary limited-term license
5410     certificate issued under this Subsection (4) shall be recognized and have the same rights and
5411     privileges as a regular license certificate or a limited-term license certificate.
5412          (b) The temporary regular license certificate or temporary limited-term license
5413     certificate shall be in the person's immediate possession while driving a motor vehicle, and it is
5414     invalid when the person's regular license certificate or limited-term license certificate has been
5415     issued or when, for good cause, the privilege has been refused.
5416          (c) The division shall indicate on the temporary regular license certificate or temporary
5417     limited-term license certificate a date after which it is not valid as a temporary license.
5418          (d) (i) Except as provided in Subsection (4)(d)(ii), the division may not issue a
5419     temporary driving privilege card or other temporary permit to an applicant for a driving
5420     privilege card.
5421          (ii) The division may issue a learner permit issued in accordance with Section

5422     53-3-210.5 to an applicant for a driving privilege card.
5423          (5) (a) The division shall distinguish learner permits, temporary permits, regular
5424     license certificates, limited-term license certificates, and driving privilege cards issued to any
5425     person younger than 21 years of age by use of plainly printed information or the use of a color
5426     or other means not used for other regular license certificates, limited-term license certificates,
5427     or driving privilege cards.
5428          (b) The division shall distinguish a regular license certificate, limited-term license
5429     certificate, or driving privilege card issued to any person:
5430          (i) younger than 21 years of age by use of a portrait-style format not used for other
5431     regular license certificates, limited-term license certificates, or driving privilege cards and by
5432     plainly printing the date the regular license certificate, limited-term license certificate, or
5433     driving privilege card holder is 21 years of age, which is the legal age for purchasing an
5434     alcoholic beverage or alcoholic product under Section 32B-4-403; and
5435          (ii) younger than 19 years of age, by plainly printing the date the regular license
5436     certificate, limited-term license certificate, or driving privilege card holder is 19 years of age,
5437     which is the legal age for purchasing tobacco products under Section 76-10-104.
5438          (6) The division shall distinguish a limited-term license certificate by clearly indicating
5439     on the document:
5440          (a) that it is temporary; and
5441          (b) its expiration date.
5442          (7) (a) The division shall only issue a driving privilege card to a person whose privilege
5443     was obtained without providing evidence of lawful presence in the United States as required
5444     under Subsection 53-3-205(8).
5445          (b) The division shall distinguish a driving privilege card from a license certificate by:
5446          (i) use of a format, color, font, or other means; and
5447          (ii) clearly displaying on the front of the driving privilege card a phrase substantially
5448     similar to "FOR DRIVING PRIVILEGES ONLY -- NOT VALID FOR IDENTIFICATION".
5449          (8) The provisions of Subsection (5)(b) do not apply to a learner permit, temporary
5450     permit, temporary regular license certificate, temporary limited-term license certificate, or any
5451     other temporary permit.
5452          (9) The division shall issue temporary license certificates of the same nature, except as

5453     to duration, as the license certificates that they temporarily replace, as are necessary to
5454     implement applicable provisions of this section and Section 53-3-223.
5455          (10) (a) A governmental entity may not accept a driving privilege card as proof of
5456     personal identification.
5457          (b) A driving privilege card may not be used as a document providing proof of a
5458     person's age for any government required purpose.
5459          (11) A person who violates Subsection (2)(b) is guilty of an infraction.
5460          (12) Unless otherwise provided, the provisions, requirements, classes, endorsements,
5461     fees, restrictions, and sanctions under this code apply to a:
5462          (a) driving privilege in the same way as a license or limited-term license issued under
5463     this chapter; and
5464          (b) limited-term license certificate or driving privilege card in the same way as a
5465     regular license certificate issued under this chapter.
5466          Section 156. Section 53A-16-106 is amended to read:
5467          53A-16-106. Annual certification of tax rate proposed by local school board --
5468     Inclusion of school district budget -- Modified filing date.
5469          (1) Prior to June 22 of each year, each local school board shall certify to the county
5470     legislative body in which the district is located, on forms prescribed by the State Tax
5471     Commission, the proposed tax rate approved by the local school board.
5472          (2) A copy of the district's budget, including items under Section 53A-19-101, and a
5473     certified copy of the local school board's resolution which approved the budget and set the tax
5474     rate for the subsequent school year beginning July 1 shall accompany the tax rate.
5475          (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
5476     defined under Subsection 59-2-924[(3)](5)(a), the date for filing the tax rate and budget
5477     adopted by the board shall be that established under Section 59-2-919.
5478          Section 157. Section 53A-16-113 is amended to read:
5479          53A-16-113. Capital local levy -- First class county required levy -- Allowable
5480     uses of collected revenue.
5481          (1) (a) Subject to the other requirements of this section, a local school board may levy a
5482     tax to fund the school district's capital projects.
5483          (b) A tax rate imposed by a school district pursuant to this section may not exceed

5484     .0030 per dollar of taxable value in any calendar year.
5485          (2) A school district that imposes a capital local levy in the calendar year beginning on
5486     January 1, 2012, is exempt from the public notice and hearing requirements of Section
5487     59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
5488     or less than the sum of the following amounts:
5489          (a) the amount of revenue generated during the calendar year beginning on January 1,
5490     2011, from the sum of the following levies of a school district:
5491          (i) a capital outlay levy imposed under Section 53A-16-107; and
5492          (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
5493     budgeted for debt service or capital outlay; and
5494          (b) revenue from new growth as defined in Subsection 59-2-924[(4)(c)](1).
5495          (3) Beginning January 1, 2012, in order to qualify for receipt of the state contribution
5496     toward the minimum school program described in Section 53A-17a-103, a local school board
5497     in a county of the first class shall impose a capital local levy of at least .0006 per dollar of
5498     taxable value.
5499          (4) (a) The county treasurer of a county of the first class shall distribute revenues
5500     generated by the .0006 portion of the capital local levy required in Subsection (2) to school
5501     districts within the county in accordance with Section 53A-16-114.
5502          (b) If a school district in a county of the first class imposes a capital local levy pursuant
5503     to this section that exceeds .0006 per dollar of taxable value, the county treasurer shall
5504     distribute revenues generated by the portion of the capital local levy that exceeds .0006 to the
5505     school district imposing the levy.
5506          (5) (a) Subject to Subsections (5)(b), (c), and (d), for fiscal year 2013-14, a local school
5507     board may utilize the proceeds of a maximum of .0024 per dollar of taxable value of the local
5508     school board's annual capital local levy for general fund purposes if the proceeds are not
5509     committed or dedicated to pay debt service or bond payments.
5510          (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
5511     fund purposes, the local school board shall notify the public of the local school board's use of
5512     the capital local levy proceeds for general fund purposes:
5513          (i) prior to the local school board's budget hearing in accordance with the notification
5514     requirements described in Section 53A-19-102; and

5515          (ii) at a budget hearing required in Section 53A-19-102.
5516          (c) A local school board may not use the proceeds described in Subsection (5)(a) to
5517     fund the following accounting function classifications as provided in the Financial Accounting
5518     for Local and State School Systems guidelines developed by the National Center for Education
5519     Statistics:
5520          (i) 2300 Support Services - General District Administration; or
5521          (ii) 2500 Support Services - Central Services.
5522          (d) A local school board may not use the proceeds from a distribution described in
5523     Subsection (4) for general fund purposes.
5524          Section 158. Section 53A-17a-133 is amended to read:
5525          53A-17a-133. State-supported voted local levy authorized -- Election
5526     requirements -- State guarantee -- Reconsideration of the program.
5527          (1) As used in this section, "voted and board local levy funding balance" means the
5528     difference between:
5529          (a) the amount appropriated for the voted and board local levy program in a fiscal year;
5530     and
5531          (b) the amount necessary to provide the state guarantee per weighted pupil unit as
5532     determined under this section and Section 53A-17a-164 in the same fiscal year.
5533          (2) An election to consider adoption or modification of a voted local levy is required if
5534     initiative petitions signed by 10% of the number of electors who voted at the last preceding
5535     general election are presented to the local school board or by action of the board.
5536          (3) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
5537     an election in the manner set forth in Subsections (9) and (10) must vote in favor of a special
5538     tax.
5539          (ii) The tax rate may not exceed .002 per dollar of taxable value.
5540          (b) Except as provided in Subsection (3)(c), in order to receive state support the first
5541     year, a district must receive voter approval no later than December 1 of the year prior to
5542     implementation.
5543          (c) Beginning on or after January 1, 2012, a school district may receive state support in
5544     accordance with Subsection (4) without complying with the requirements of Subsection (3)(b)
5545     if the local school board imposed a tax in accordance with this section during the taxable year

5546     beginning on January 1, 2011, and ending on December 31, 2011.
5547          (4) (a) In addition to the revenue a school district collects from the imposition of a levy
5548     pursuant to this section, the state shall contribute an amount sufficient to guarantee $33.27 per
5549     weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.
5550          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
5551     of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
5552     authorized in Section 53A-17a-164, so that the guarantee shall apply up to a total of .002 per
5553     dollar of taxable value if a school district levies a tax rate under both programs.
5554          (c) (i) Beginning July 1, 2015, the $33.27 guarantee under Subsections (4)(a) and (b)
5555     shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
5556     program by making the value of the guarantee equal to .011194 times the value of the prior
5557     year's weighted pupil unit for the grades 1 through 12 program.
5558          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
5559     pupil unit for the grades 1 through 12 program for each succeeding year subject to the
5560     Legislature appropriating funds for an increase in the guarantee.
5561          (d) (i) The amount of state guarantee money to which a school district would otherwise
5562     be entitled to receive under this Subsection (4) may not be reduced for the sole reason that the
5563     district's levy is reduced as a consequence of changes in the certified tax rate under Section
5564     59-2-924 pursuant to changes in property valuation.
5565          (ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
5566     the certified tax rate.
5567          (e) The guarantee provided under this section does not apply to the portion of a voted
5568     local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
5569     year, unless an increase in the voted local levy rate was authorized in an election conducted on
5570     or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
5571          (f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
5572     State Board of Education shall:
5573          (A) use the voted and board local levy funding balance to increase the value of the state
5574     guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
5575          (B) distribute the state contribution to the voted and board local levy programs to
5576     school districts based on the increased value of the state guarantee per weighted pupil unit

5577     described in Subsection (4)(f)(i)(A).
5578          (ii) The State Board of Education shall report action taken under this Subsection (4)(f)
5579     to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
5580     Budget.
5581          (5) (a) An election to modify an existing voted local levy is not a reconsideration of the
5582     existing authority unless the proposition submitted to the electors expressly so states.
5583          (b) A majority vote opposing a modification does not deprive the district of authority to
5584     continue the levy.
5585          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
5586     school board levies, the board must allow the electors, in an election, to consider modifying or
5587     discontinuing the imposition of the levy prior to a subsequent increase in other levies that
5588     would increase the total local school board levy.
5589          (d) Nothing contained in this section terminates, without an election, the authority of a
5590     school district to continue imposing an existing voted local levy previously authorized by the
5591     voters as a voted leeway program.
5592          (6) Notwithstanding Section 59-2-919, a school district may budget an increased
5593     amount of ad valorem property tax revenue derived from a voted local levy imposed under this
5594     section in addition to revenue from new growth as defined in Subsection 59-2-924[(4)](1),
5595     without having to comply with the notice requirements of Section 59-2-919, if:
5596          (a) the voted local levy is approved:
5597          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
5598          (ii) within the four-year period immediately preceding the year in which the school
5599     district seeks to budget an increased amount of ad valorem property tax revenue derived from
5600     the voted local levy; and
5601          (b) for a voted local levy approved or modified in accordance with this section on or
5602     after January 1, 2009, the school district complies with the requirements of Subsection (8).
5603          (7) Notwithstanding Section 59-2-919, a school district may levy a tax rate under this
5604     section that exceeds the certified tax rate without having to comply with the notice
5605     requirements of Section 59-2-919 if:
5606          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
5607     increased amount of ad valorem property tax revenue derived from a voted local levy imposed

5608     under this section;
5609          (b) the voted local levy was approved:
5610          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
5611          (ii) within the four-year period immediately preceding the year in which the school
5612     district seeks to budget an increased amount of ad valorem property tax revenue derived from
5613     the voted local levy; and
5614          (c) for a voted local levy approved or modified in accordance with this section on or
5615     after January 1, 2009, the school district complies with requirements of Subsection (8).
5616          (8) For purposes of Subsection (6)(b) or (7)(c), the proposition submitted to the
5617     electors regarding the adoption or modification of a voted local levy shall contain the following
5618     statement:
5619          "A vote in favor of this tax means that (name of the school district) may increase
5620     revenue from this property tax without advertising the increase for the next five years."
5621          (9) (a) Before imposing a property tax levy pursuant to this section, a school district
5622     shall submit an opinion question to the school district's registered voters voting on the
5623     imposition of the tax rate so that each registered voter has the opportunity to express the
5624     registered voter's opinion on whether the tax rate should be imposed.
5625          (b) The election required by this Subsection (9) shall be held:
5626          (i) at a regular general election conducted in accordance with the procedures and
5627     requirements of Title 20A, Election Code, governing regular elections;
5628          (ii) at a municipal general election conducted in accordance with the procedures and
5629     requirements of Section 20A-1-202; or
5630          (iii) at a local special election conducted in accordance with the procedures and
5631     requirements of Section 20A-1-203.
5632          (c) Notwithstanding the requirements of Subsections (9)(a) and (b), beginning on or
5633     after January 1, 2012, a school district may levy a tax rate in accordance with this section
5634     without complying with the requirements of Subsections (9)(a) and (b) if the school district
5635     imposed a tax in accordance with this section at any time during the taxable year beginning on
5636     January 1, 2011, and ending on December 31, 2011.
5637          (10) If a school district determines that a majority of the school district's registered
5638     voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax

5639     rate in accordance with Subsection (9), the school district may impose the tax rate.
5640          Section 159. Section 53A-17a-164 is amended to read:
5641          53A-17a-164. Board local levy -- State guarantee.
5642          (1) Subject to the other requirements of this section, for a calendar year beginning on
5643     or after January 1, 2012, a local school board may levy a tax to fund the school district's
5644     general fund.
5645          (2) (a) Except as provided in Subsection (2)(b), a tax rate imposed by a school district
5646     pursuant to this section may not exceed .0018 per dollar of taxable value in any calendar year.
5647          (b) A tax rate imposed by a school district pursuant to this section may not exceed
5648     .0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
5649     January 1, 2011, the school district's combined tax rate for the following levies was greater
5650     than .0018 per dollar of taxable value:
5651          (i) a recreation levy imposed under Section 11-2-7;
5652          (ii) a transportation levy imposed under Section 53A-17a-127;
5653          (iii) a board-authorized levy imposed under Section 53A-17a-134;
5654          (iv) an impact aid levy imposed under Section 53A-17a-143;
5655          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
5656     budgeted for purposes other than capital outlay or debt service;
5657          (vi) a reading levy imposed under Section 53A-17a-151; and
5658          (vii) a tort liability levy imposed under Section 63G-7-704.
5659          (3) (a) In addition to the revenue a school district collects from the imposition of a levy
5660     pursuant to this section, the state shall contribute an amount sufficient to guarantee that each
5661     .0001 of the first .0004 per dollar of taxable value generates an amount equal to the state
5662     guarantee per weighted pupil unit described in Subsection 53A-17a-133(4).
5663          (b) (i) The amount of state guarantee money to which a school district would otherwise
5664     be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
5665     levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
5666     pursuant to changes in property valuation.
5667          (ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
5668     certified tax rate.
5669          (4) A school district that imposes a board local levy in the calendar year beginning on

5670     January 1, 2012, is exempt from the public notice and hearing requirements of Section
5671     59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
5672     or less than the sum of the following amounts:
5673          (a) the amount of revenue generated during the calendar year beginning on January 1,
5674     2011, from the sum of the following levies of a school district:
5675          (i) a recreation levy imposed under Section 11-2-7;
5676          (ii) a transportation levy imposed under Section 53A-17a-127;
5677          (iii) a board-authorized levy imposed under Section 53A-17a-134;
5678          (iv) an impact aid levy imposed under Section 53A-17a-143;
5679          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
5680     budgeted for purposes other than capital outlay or debt service;
5681          (vi) a reading levy imposed under Section 53A-17a-151; and
5682          (vii) a tort liability levy imposed under Section 63G-7-704; and
5683          (b) revenue from new growth as defined in Subsection 59-2-924[(4)(c)](1).
5684          Section 160. Section 53A-19-105 is amended to read:
5685          53A-19-105. School district interfund transfers.
5686          (1) A school district shall spend revenues only within the fund for which they were
5687     originally authorized, levied, collected, or appropriated.
5688          (2) Except as otherwise provided in this section, school district interfund transfers of
5689     residual equity are prohibited.
5690          (3) The State Board of Education may authorize school district interfund transfers of
5691     residual equity when a district states its intent to create a new fund or expand, contract, or
5692     liquidate an existing fund.
5693          (4) The State Board of Education may also authorize school district interfund transfers
5694     of residual equity for a financially distressed district if the board determines the following:
5695          (a) the district has a significant deficit in its maintenance and operations fund caused
5696     by circumstances not subject to the administrative decisions of the district;
5697          (b) the deficit cannot be reasonably reduced under Section 53A-19-104; and
5698          (c) without the transfer, the school district will not be capable of meeting statewide
5699     educational standards adopted by the State Board of Education.
5700          (5) The board shall develop standards for defining and aiding financially distressed

5701     school districts under this section in accordance with Title 63G, Chapter 3, Utah
5702     Administrative Rulemaking Act.
5703          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
5704     and reported in the debt service fund.
5705          (b) Debt service levies under Subsection 59-2-924[(3)](5)(e)(iii) that are not subject to
5706     the public hearing provisions of Section 59-2-919 may not be used for any purpose other than
5707     retiring general obligation debt.
5708          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
5709     year shall be used in subsequent years for general obligation debt retirement.
5710          (d) Any amounts left in the debt service fund after all general obligation debt has been
5711     retired may be transferred to the capital projects fund upon completion of the budgetary hearing
5712     process required under Section 53A-19-102.
5713          Section 161. Section 59-2-913 is amended to read:
5714          59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
5715     statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
5716     establishing tax levies -- Format of statement.
5717          (1) As used in this section, "budgeted property tax revenues" does not include property
5718     tax revenue received by a taxing entity from personal property that is:
5719          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
5720          (b) semiconductor manufacturing equipment.
5721          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
5722     this section with the county auditor of the county in which the taxing entity is located.
5723          (b) The auditor shall annually transmit the statement to the commission:
5724          (i) before June 22; or
5725          (ii) with the approval of the commission, on a subsequent date prior to the date
5726     required by Section 59-2-1317 for the county treasurer to provide the notice under Section
5727     59-2-1317.
5728          (c) The statement shall contain the amount and purpose of each levy fixed by the
5729     legislative body of the taxing entity.
5730          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
5731     funds, the legislative body of the taxing entity shall calculate an amount determined by dividing

5732     the budgeted property tax revenues, specified in a budget [which] that has been adopted and
5733     approved prior to setting the levy, by the amount calculated under Subsections
5734     59-2-924[(3)](5)(c)(ii)(A) through (C).
5735          (4) The format of the statement under this section shall:
5736          (a) be determined by the commission; and
5737          (b) cite any applicable statutory provisions that:
5738          (i) require a specific levy; or
5739          (ii) limit the property tax levy for any taxing entity.
5740          (5) The commission may require certification that the information submitted on a
5741     statement under this section is true and correct.
5742          Section 162. Section 59-2-924 is amended to read:
5743          59-2-924. Report of valuation of property to county auditor and commission --
5744     Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
5745     tax rate -- Rulemaking authority -- Adoption of tentative budget.
5746          (1) (a) Subject to Subsection (2), "new growth" means:
5747          (i) the difference between the taxable value of the following property of the taxing
5748     entity from the previous calendar year to the current year:
5749          (A) real property assessed by a county assessor in accordance with Part 3, County
5750     Assessment; and
5751          (B) property assessed by the commission under Section 59-2-201; plus
5752          (ii) the difference between the taxable year end value of personal property of the taxing
5753     entity for:
5754          (A) the calendar year immediately preceding the previous calendar year; and
5755          (B) the previous calendar year; minus
5756          (iii) the amount of an increase in taxable value described in Subsection (2)(b).
5757          (b) Except as provided in Subsection (1)(c), new growth shall equal the greater of:
5758          (i) the amount calculated under Subsection (1)(a); or
5759          (ii) zero.
5760          (c) (i) When a project area funds collection period as defined in Section 17C-1-102
5761     ends, the project area's incremental value as defined in Section 17C-1-102 shall be:
5762          (A) considered new growth; and

5763          (B) added to the amount described in Subsection (1)(b).
5764          (ii) The amount calculated in Subsection (1)(c)(i)(B) shall not equal less than zero.
5765          (2) (a) For purposes of Subsection (1)(a)(ii), taxable value of personal property of the
5766     taxing entity does not include the taxable value of personal property that is:
5767          (i) contained on the tax rolls of the taxing entity if that property is assessed by a county
5768     assessor in accordance with Part 3, County Assessment; and
5769          (ii) semiconductor manufacturing equipment.
5770          (b) Subsection (1)(a)(iii) applies to the following increases in taxable value:
5771          (i) the amount of increase to locally assessed real property taxable values resulting
5772     from factoring, reappraisal, or any other adjustments; or
5773          (ii) the amount of an increase in the taxable value of property assessed by the
5774     commission under Section 59-2-201 resulting from a change in the method of apportioning the
5775     taxable value prescribed by:
5776          (A) the Legislature;
5777          (B) a court;
5778          (C) the commission in an administrative rule; or
5779          (D) the commission in an administrative order.
5780          [(1)] (3) Before June 1 of each year, the county assessor of each county shall deliver to
5781     the county auditor and the commission the following statements:
5782          (a) a statement containing the aggregate valuation of all taxable real property assessed
5783     by a county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
5784          (b) a statement containing the taxable value of all personal property assessed by a
5785     county assessor in accordance with Part 3, County Assessment, from the prior year end values.
5786          [(2)] (4) The county auditor shall, on or before June 8, transmit to the governing body
5787     of each taxing entity:
5788          (a) the statements described in Subsections [(1)] (3)(a) and (b);
5789          (b) an estimate of the revenue from personal property;
5790          (c) the certified tax rate; and
5791          (d) all forms necessary to submit a tax levy request.
5792          [(3)] (5) (a) The "certified tax rate" means a tax rate that will provide the same ad
5793     valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the

5794     prior year.
5795          (b) For purposes of this Subsection [(3)] (5):
5796          (i) "Ad valorem property tax revenues" do not include:
5797          (A) interest;
5798          (B) penalties; and
5799          (C) revenue received by a taxing entity from personal property that is:
5800          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
5801          (II) semiconductor manufacturing equipment.
5802          (ii) "Aggregate taxable value of all property taxed" means:
5803          (A) the aggregate taxable value of all real property assessed by a county assessor in
5804     accordance with Part 3, County Assessment, for the current year;
5805          (B) the aggregate taxable year end value of all personal property assessed by a county
5806     assessor in accordance with Part 3, County Assessment, for the prior year; and
5807          (C) the aggregate taxable value of all real and personal property assessed by the
5808     commission in accordance with Part 2, Assessment of Property, for the current year.
5809          (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
5810     calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
5811     taxing entity by the amount calculated under Subsection [(3)] (5)(c)(ii).
5812          (ii) For purposes of Subsection [(3)] (5)(c)(i), the legislative body of a taxing entity
5813     shall calculate an amount as follows:
5814          (A) calculate for the taxing entity the difference between:
5815          (I) the aggregate taxable value of all property taxed; and
5816          (II) any redevelopment adjustments for the current calendar year;
5817          (B) after making the calculation required by Subsection [(3)] (5)(c)(ii)(A), calculate an
5818     amount determined by increasing or decreasing the amount calculated under Subsection [(3)]
5819     (5)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for the
5820     equalization period for the three calendar years immediately preceding the current calendar
5821     year;
5822          (C) after making the calculation required by Subsection [(3)] (5)(c)(ii)(B), calculate the
5823     product of:
5824          (I) the amount calculated under Subsection [(3)] (5)(c)(ii)(B); and

5825          (II) the percentage of property taxes collected for the five calendar years immediately
5826     preceding the current calendar year; and
5827          (D) after making the calculation required by Subsection [(3)] (5)(c)(ii)(C), calculate an
5828     amount determined by subtracting from the amount calculated under Subsection [(3)]
5829     (5)(c)(ii)(C) any new growth as defined in this section:
5830          (I) within the taxing entity; and
5831          (II) for the following calendar year:
5832          (Aa) for new growth from real property assessed by a county assessor in accordance
5833     with Part 3, County Assessment and all property assessed by the commission in accordance
5834     with Section 59-2-201, the current calendar year; and
5835          (Bb) for new growth from personal property assessed by a county assessor in
5836     accordance with Part 3, County Assessment, the prior calendar year.
5837          (iii) For purposes of Subsection [(3)] (5)(c)(ii)(A), the aggregate taxable value of all
5838     property taxed:
5839          (A) except as provided in Subsection [(3)] (5)(c)(iii)(B) or [(3)] (5)(c)(ii)(C), is as
5840     defined in Subsection [(3)] (5)(b)(ii);
5841          (B) does not include the total taxable value of personal property contained on the tax
5842     rolls of the taxing entity that is:
5843          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
5844          (II) semiconductor manufacturing equipment; and
5845          (C) for personal property assessed by a county assessor in accordance with Part 3,
5846     County Assessment, the taxable value of personal property is the year end value of the personal
5847     property contained on the prior year's tax rolls of the entity.
5848          (iv) For purposes of Subsection [(3)] (5)(c)(ii)(B), for calendar years beginning on or
5849     after January 1, 2007, the value of taxable property does not include the value of personal
5850     property that is:
5851          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
5852     County Assessment; and
5853          (B) semiconductor manufacturing equipment.
5854          (v) For purposes of Subsection [(3)] (5)(c)(ii)(C)(II), for calendar years beginning on or
5855     after January 1, 2007, the percentage of property taxes collected does not include property taxes

5856     collected from personal property that is:
5857          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
5858     County Assessment; and
5859          (B) semiconductor manufacturing equipment.
5860          (vi) For purposes of Subsection [(3)] (5)(c)(ii)(B), for calendar years beginning on or
5861     after January 1, 2009, the value of taxable property does not include the value of personal
5862     property that is within the taxing entity assessed by a county assessor in accordance with Part 3,
5863     County Assessment.
5864          (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5865     the commission may prescribe rules for calculating redevelopment adjustments for a calendar
5866     year.
5867          (viii) (A) Except as provided in Subsections [(3)] (5)(c)(ix) and (x), for purposes of
5868     Subsection [(3)] (5)(c)(i), a taxing entity's ad valorem property tax revenues budgeted for the
5869     prior year shall be decreased by an amount of revenue equal to the five-year average of the
5870     most recent prior five years of redemptions adjusted by the five-year average redemption
5871     calculated for the prior year as reported on the county treasurer's final annual settlement
5872     required under Subsection 59-2-1365(2).
5873          (B) A decrease under Subsection [(3)] (5)(c)(viii)(A) does not apply to the multicounty
5874     assessing and collecting levy authorized in Subsection 59-2-1602(2)(a), the certified revenue
5875     levy, or the minimum basic tax rate established in Section 53A-17a-135.
5876          (ix) As used in Subsection [(3)] (5)(c)(x):
5877          (A) "One-fourth of qualifying redemptions excess amount" means a qualifying
5878     redemptions excess amount divided by four.
5879          (B) "Qualifying redemptions" means that, for a calendar year, a taxing entity's total
5880     amount of redemptions is greater than three times the five-year average of the most recent prior
5881     five years of redemptions calculated for the prior year under Subsection [(3)] (5)(c)(viii)(A).
5882          (C) "Qualifying redemptions base amount" means an amount equal to three times the
5883     five-year average of the most recent prior five years of redemptions for a taxing entity, as
5884     reported on the county treasurer's final annual settlement required under Subsection
5885     59-2-1365(2).
5886          (D) "Qualifying redemptions excess amount" means the amount by which a taxing

5887     entity's qualifying redemptions for a calendar year exceed the qualifying redemptions base
5888     amount for that calendar year.
5889          (x) (A) If, for a calendar year, a taxing entity has qualifying redemptions, the
5890     redemption amount for purposes of calculating the five-year redemption average required by
5891     Subsection [(3)] (5)(c)(viii)(A) is as provided in Subsections [(3)] (5)(c)(x)(B) and (C).
5892          (B) For the initial calendar year a taxing entity has qualifying redemptions, the taxing
5893     entity's redemption amount for that calendar year is the qualifying redemptions base amount.
5894          (C) For each of the four calendar years after the calendar year described in Subsection
5895     [(3)] (5)(c)(x)(B), one-fourth of the qualifying redemptions excess amount shall be added to the
5896     redemption amount.
5897          (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5898     the commission shall make rules determining the calculation of ad valorem property tax
5899     revenues budgeted by a taxing entity.
5900          (ii) For purposes of Subsection [(3)] (5)(d)(i), ad valorem property tax revenues
5901     budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
5902     revenues are calculated for purposes of Section 59-2-913.
5903          (e) The certified tax rates for the taxing entities described in this Subsection [(3)] (5)(e)
5904     shall be calculated as follows:
5905          (i) except as provided in Subsection [(3)] (5)(e)(ii), for new taxing entities the certified
5906     tax rate is zero;
5907          (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
5908          (A) in a county of the first, second, or third class, the levy imposed for municipal-type
5909     services under Sections 17-34-1 and 17-36-9; and
5910          (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
5911     purposes and such other levies imposed solely for the municipal-type services identified in
5912     Section 17-34-1 and Subsection 17-36-3(22); and
5913          (iii) for debt service voted on by the public, the certified tax rate shall be the actual
5914     levy imposed by that section, except that the certified tax rates for the following levies shall be
5915     calculated in accordance with Section 59-2-913 and this section:
5916          (A) school levies provided for under Sections 53A-16-113, 53A-17a-133, and
5917     53A-17a-164; and

5918          (B) levies to pay for the costs of state legislative mandates or judicial or administrative
5919     orders under Section 59-2-1602.
5920          (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
5921     established at that rate which is sufficient to generate only the revenue required to satisfy one
5922     or more eligible judgments, as defined in Section 59-2-102.
5923          (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
5924     considered in establishing the taxing entity's aggregate certified tax rate.
5925          (g) The ad valorem property tax revenue generated by the capital local levy described
5926     in Section 53A-16-113 within a taxing entity in a county of the first class:
5927          (i) may not be considered in establishing the school district's aggregate certified tax
5928     rate; and
5929          (ii) shall be included by the commission in establishing a certified tax rate for that
5930     capital outlay levy determined in accordance with the calculation described in Subsection
5931     59-2-913(3).
5932          [(4)] (6) (a) For the purpose of calculating the certified tax rate, the county auditor shall
5933     use:
5934          (i) the taxable value of real property assessed by a county assessor contained on the
5935     assessment roll;
5936          (ii) the taxable value of real and personal property assessed by the commission; and
5937          (iii) the taxable year end value of personal property assessed by a county assessor
5938     contained on the prior year's assessment roll.
5939          (b) For purposes of Subsection [(4)] (6)(a)(i), the taxable value of real property on the
5940     assessment roll does not include new growth as defined in Subsection [(4)(c)] (1).
5941          [(c) "New growth" means:]
5942          [(i) the difference between the increase in taxable value of the following property of
5943     the taxing entity from the previous calendar year to the current year:]
5944          [(A) real property assessed by a county assessor in accordance with Part 3, County
5945     Assessment; and]
5946          [(B) property assessed by the commission under Section 59-2-201; plus]
5947          [(ii) the difference between the increase in taxable year end value of personal property
5948     of the taxing entity from the year prior to the previous calendar year to the previous calendar

5949     year; minus]
5950          [(iii) the amount of an increase in taxable value described in Subsection (4)(e).]
5951          [(d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
5952     taxing entity does not include the taxable value of personal property that is:]
5953          [(i) contained on the tax rolls of the taxing entity if that property is assessed by a
5954     county assessor in accordance with Part 3, County Assessment; and]
5955          [(ii) semiconductor manufacturing equipment.]
5956          [(e) Subsection (4)(c)(iii) applies to the following increases in taxable value:]
5957          [(i) the amount of increase to locally assessed real property taxable values resulting
5958     from factoring, reappraisal, or any other adjustments; or]
5959          [(ii) the amount of an increase in the taxable value of property assessed by the
5960     commission under Section 59-2-201 resulting from a change in the method of apportioning the
5961     taxable value prescribed by:]
5962          [(A) the Legislature;]
5963          [(B) a court;]
5964          [(C) the commission in an administrative rule; or]
5965          [(D) the commission in an administrative order.]
5966          [(f)] (c) For purposes of Subsection [(4)] (6)(a)(ii), the taxable year end value of
5967     personal property on the prior year's assessment roll does not include:
5968          (i) new growth as defined in Subsection [(4)(c)] (1); or
5969          (ii) the total taxable year end value of personal property contained on the prior year's
5970     tax rolls of the taxing entity that is:
5971          (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
5972          (B) semiconductor manufacturing equipment.
5973          [(5)] (7) (a) On or before June 22, each taxing entity shall annually adopt a tentative
5974     budget.
5975          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
5976     auditor of:
5977          (i) its intent to exceed the certified tax rate; and
5978          (ii) the amount by which it proposes to exceed the certified tax rate.
5979          (c) The county auditor shall notify property owners of any intent to levy a tax rate that

5980     exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
5981          Section 163. Section 59-2-924.2 is amended to read:
5982          59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
5983          (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
5984     in accordance with Section 59-2-924.
5985          (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
5986     uniform fees on tangible personal property under Section 59-2-404, 59-2-405, 59-2-405.1,
5987     59-2-405.2, or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
5988     12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
5989     rate to offset the increased revenues.
5990          (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
5991     Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
5992          (i) decreased on a one-time basis by the amount of the estimated sales and use tax
5993     revenue to be distributed to the county under Subsection 59-12-1102(3); and
5994          (ii) increased by the amount necessary to offset the county's reduction in revenue from
5995     uniform fees on tangible personal property under Section 59-2-404, 59-2-405, 59-2-405.1,
5996     59-2-405.2, or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
5997     (3)(a)(i).
5998          (b) The commission shall determine estimates of sales and use tax distributions for
5999     purposes of Subsection (3)(a).
6000          (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
6001     communities sales and use tax under Section 59-12-402, the municipality's certified tax rate
6002     shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of
6003     estimated revenue from the additional resort communities sales and use tax imposed under
6004     Section 59-12-402.
6005          (5) (a) This Subsection (5) applies to each county that:
6006          (i) establishes a countywide special service district under Title 17D, Chapter 1, Special
6007     Service District Act, to provide jail service, as provided in Subsection 17D-1-201(10); and
6008          (ii) levies a property tax on behalf of the special service district under Section
6009     17D-1-105.
6010          (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be

6011     decreased by the amount necessary to reduce county revenues by the same amount of revenues
6012     that will be generated by the property tax imposed on behalf of the special service district.
6013          (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
6014     levy on behalf of the special service district under Section 17D-1-105.
6015          (6) (a) As used in this Subsection (6):
6016          (i) "Annexing county" means a county whose unincorporated area is included within a
6017     public safety district by annexation.
6018          (ii) "Annexing municipality" means a municipality whose area is included within a
6019     public safety district by annexation.
6020          (iii) "Equalized public safety protection tax rate" means the tax rate that results from:
6021          (A) calculating, for each participating county and each participating municipality, the
6022     property tax revenue necessary:
6023          (I) in the case of a fire district, to cover all of the costs associated with providing fire
6024     protection, paramedic, and emergency services:
6025          (Aa) for a participating county, in the unincorporated area of the county; and
6026          (Bb) for a participating municipality, in the municipality; or
6027          (II) in the case of a police district, to cover all the costs:
6028          (Aa) associated with providing law enforcement service:
6029          (Ii) for a participating county, in the unincorporated area of the county; and
6030          (IIii) for a participating municipality, in the municipality; and
6031          (Bb) that the police district board designates as the costs to be funded by a property
6032     tax; and
6033          (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
6034     participating counties and all participating municipalities and then dividing that sum by the
6035     aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913:
6036          (I) for participating counties, in the unincorporated area of all participating counties;
6037     and
6038          (II) for participating municipalities, in all the participating municipalities.
6039          (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
6040     Area Act:
6041          (A) created to provide fire protection, paramedic, and emergency services; and

6042          (B) in the creation of which an election was not required under Subsection
6043     17B-1-214(3)(c).
6044          (v) "Participating county" means a county whose unincorporated area is included
6045     within a public safety district at the time of the creation of the public safety district.
6046          (vi) "Participating municipality" means a municipality whose area is included within a
6047     public safety district at the time of the creation of the public safety district.
6048          (vii) "Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service
6049     Area Act, within a county of the first class:
6050          (A) created to provide law enforcement service; and
6051          (B) in the creation of which an election was not required under Subsection
6052     17B-1-214(3)(c).
6053          (viii) "Public safety district" means a fire district or a police district.
6054          (ix) "Public safety service" means:
6055          (A) in the case of a public safety district that is a fire district, fire protection,
6056     paramedic, and emergency services; and
6057          (B) in the case of a public safety district that is a police district, law enforcement
6058     service.
6059          (b) In the first year following creation of a public safety district, the certified tax rate of
6060     each participating county and each participating municipality shall be decreased by the amount
6061     of the equalized public safety tax rate.
6062          (c) In the first budget year following annexation to a public safety district, the certified
6063     tax rate of each annexing county and each annexing municipality shall be decreased by an
6064     amount equal to the amount of revenue budgeted by the annexing county or annexing
6065     municipality:
6066          (i) for public safety service; and
6067          (ii) in:
6068          (A) for a taxing entity operating under a January 1 through December 31 fiscal year,
6069     the prior calendar year; or
6070          (B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
6071     fiscal year.
6072          (d) Each tax levied under this section by a public safety district shall be considered to

6073     be levied by:
6074          (i) each participating county and each annexing county for purposes of the county's tax
6075     limitation under Section 59-2-908; and
6076          (ii) each participating municipality and each annexing municipality for purposes of the
6077     municipality's tax limitation under Section 10-5-112, for a town, or Section 10-6-133, for a
6078     city.
6079          (e) The calculation of a public safety district's certified tax rate for the year of
6080     annexation shall be adjusted to include an amount of revenue equal to one half of the amount
6081     of revenue budgeted by the annexing entity for public safety service in the annexing entity's
6082     prior fiscal year if:
6083          (i) the public safety district operates on a January 1 through December 31 fiscal year;
6084          (ii) the public safety district approves an annexation of an entity operating on a July 1
6085     through June 30 fiscal year; and
6086          (iii) the annexation described in Subsection (6)(e)(ii) takes effect on July 1.
6087          (7) (a) The base taxable value under [Subsection] Section 17C-1-102[(6)] shall be
6088     reduced for any year to the extent necessary to provide a community [development and
6089     renewal] reinvestment agency established under Title 17C, Limited Purpose Local Government
6090     Entities - Community [Development and Renewal Agencies] Reinvestment Agency Act, with
6091     approximately the same amount of money the agency would have received without a reduction
6092     in the county's certified tax rate, calculated in accordance with Section 59-2-924, if:
6093          (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
6094          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
6095     previous year; and
6096          (iii) the decrease results in a reduction of the amount to be paid to the agency under
6097     Section 17C-1-403 or 17C-1-404.
6098          (b) The base taxable value under [Subsection] Section 17C-1-102[(6)] shall be
6099     increased in any year to the extent necessary to provide a community [development and
6100     renewal] reinvestment agency with approximately the same amount of money as the agency
6101     would have received without an increase in the certified tax rate that year if:
6102          (i) in that year the base taxable value under [Subsection] Section 17C-1-102[(6)] is
6103     reduced due to a decrease in the certified tax rate under Subsection (2) or (3)(a); and

6104          (ii) the certified tax rate of a city, school district, local district, or special service
6105     district increases independent of the adjustment to the taxable value of the base year.
6106          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
6107     the amount of money allocated and, when collected, paid each year to a community
6108     [development and renewal] reinvestment agency established under Title 17C, Limited Purpose
6109     Local Government Entities - Community [Development and Renewal Agencies] Reinvestment
6110     Agency Act, for the payment of bonds or other contract indebtedness, but not for administrative
6111     costs, may not be less than that amount would have been without a decrease in the certified tax
6112     rate under Subsection (2) or (3)(a).
6113          (8) (a) For the calendar year beginning on January 1, 2014, the calculation of a county
6114     assessing and collecting levy shall be adjusted by the amount necessary to offset:
6115          (i) any change in the certified tax rate that may result from amendments to Part 16,
6116     Multicounty Assessing and Collecting Levy, in Laws of Utah 2014, Chapter 270, Section 3;
6117     and
6118          (ii) the difference in the amount of revenue a taxing entity receives from or contributes
6119     to the Property Tax Valuation Agency Fund, created in Section 59-2-1602, that may result from
6120     amendments to Part 16, Multicounty Assessing and Collecting Levy, in Laws of Utah 2014,
6121     Chapter 270, Section 3.
6122          (b) A taxing entity is not required to comply with the notice and public hearing
6123     requirements in Section 59-2-919 for an adjustment to the county assessing and collecting levy
6124     described in Subsection (8)(a).
6125          (9) (a) For the calendar year beginning on January 1, 2017, the commission shall
6126     increase or decrease a school district's certified tax rate to offset a change in revenues from the
6127     calendar year beginning on January 1, 2016, to the calendar year beginning on January 1, 2017,
6128     as follows:
6129          (i) the commission shall increase a school district's certified tax rate by the amount
6130     necessary to offset a decrease in revenues that may result from the repeal of Section 59-2-924.3
6131     on December 31, 2016; and
6132          (ii) the commission shall decrease a school district's certified tax rate by the amount
6133     necessary to offset an increase in revenues that may result from the repeal of Section
6134     59-2-924.3 on December 31, 2016.

6135          (b) (i) A school district is not required to comply with the notice and public hearing
6136     requirements of Section 59-2-919 for an offset to the certified tax rate described in Subsection
6137     (9)(a).
6138          (ii) If a school district's certified tax rate is increased in accordance with Subsection
6139     (9)(a)(i), the school district shall:
6140          (A) on or before June 15, 2017, publish the statement provided in Subsection (9)(c)
6141     one or more times in a newspaper or combination of newspapers of general circulation in the
6142     taxing entity, in a portion of the newspaper where legal notices and classified advertisements
6143     do not appear;
6144          (B) on or before June 30, 2017, read the statement provided in Subsection (9)(c) at a
6145     public meeting of the school district; and
6146          (C) if the school district maintains a database containing electronic mail addresses of
6147     one or more persons who reside within the school district boundaries, send the statement
6148     provided in Subsection (9)(c) to those electronic mail addresses.
6149          (c) For purposes of Subsection (9)(b)(ii), the statement is: "For calendar year 2017, the
6150     State Tax Commission is required to increase a property tax rate of this school district to offset
6151     a loss in revenue due to the repeal of a statute to equalize certain school district property taxes.
6152     This offset may result in an increase in your property taxes."
6153          Section 164. Section 59-2-924.3 is amended to read:
6154          59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
6155     district imposing a capital local levy in a county of the first class.
6156          (1) As used in this section:
6157          (a) "Capital local levy increment" means the amount of revenue equal to the difference
6158     between:
6159          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
6160     within a school district during a fiscal year; and
6161          (ii) the amount of revenue the school district received during the same fiscal year from
6162     the distribution described in Section 53A-16-114.
6163          (b) "Contributing school district" means a school district in a county of the first class
6164     that in a fiscal year receives less revenue from the distribution described in Section
6165     53A-16-114 than it would have received during the same fiscal year from a levy imposed

6166     within the school district of .0006 per dollar of taxable value.
6167          (c) "Receiving school district" means a school district in a county of the first class that
6168     in a fiscal year receives more revenue from the distribution described in Section 53A-16-114
6169     than it would have received during the same fiscal year from a levy imposed within the school
6170     district of .0006 per dollar of taxable value.
6171          (2) A receiving school district shall decrease its capital local levy certified tax rate
6172     under Subsection 59-2-924[(3)](5)(g)(ii) by the amount required to offset the receiving school
6173     district's estimated capital local levy increment for the prior fiscal year.
6174          (3) A contributing school district is exempt from the notice and public hearing
6175     provisions of Section 59-2-919 for the school district's capital local levy certified tax rate
6176     calculated pursuant to Subsection 59-2-924[(3)](5)(g)(ii) if:
6177          (a) the contributing school district budgets an increased amount of ad valorem property
6178     tax revenue exclusive of new growth as defined in Subsection 59-2-924[(4)](1) for the capital
6179     local levy described in Section 53A-16-113; and
6180          (b) the increased amount of ad valorem property tax revenue described in Subsection
6181     (3)(a) is less than or equal to the difference between:
6182          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
6183     imposed within the contributing school district during the current taxable year; and
6184          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
6185     imposed within the contributing school district during the prior taxable year.
6186          (4) Regardless of the amount a school district receives from the revenue collected from
6187     the .0006 portion of the capital local levy required in Section 53A-16-113, the revenue
6188     generated within the school district from the .0006 portion of the capital local levy required in
6189     Section 53A-16-113 shall be considered to be budgeted ad valorem property tax revenues of
6190     the school district that levies the .0006 portion of the capital local levy for purposes of
6191     calculating the school district's certified tax rate in accordance with Subsection
6192     59-2-924[(3)](5)(g)(ii).
6193          Section 165. Section 59-7-614.2 is amended to read:
6194          59-7-614.2. Refundable economic development tax credit.
6195          (1) As used in this section:
6196          (a) "Business entity" means a taxpayer that meets the definition of "business entity" as

6197     defined in Section 63N-2-103.
6198          (b) "Community [development and renewal] reinvestment agency" is as defined in
6199     Section 17C-1-102.
6200          (c) "Local government entity" is as defined in Section 63N-2-103.
6201          (d) "Office" means the Governor's Office of Economic Development.
6202          (2) Subject to the other provisions of this section, a business entity, local government
6203     entity, or community [development and renewal] reinvestment agency may claim a refundable
6204     tax credit for economic development.
6205          (3) The tax credit under this section is the amount listed as the tax credit amount on the
6206     tax credit certificate that the office issues to the business entity, local government entity, or
6207     community [development and renewal] reinvestment agency for the taxable year.
6208          (4) A community [development and renewal] reinvestment agency may claim a tax
6209     credit under this section only if a local government entity assigns the tax credit to the
6210     community [development and renewal] reinvestment agency in accordance with Section
6211     63N-2-104.
6212          (5) (a) In accordance with any rules prescribed by the commission under Subsection
6213     (5)(b), the commission shall make a refund to the following that claim a tax credit under this
6214     section:
6215          (i) a local government entity;
6216          (ii) a community [development and renewal] reinvestment agency; or
6217          (iii) a business entity if the amount of the tax credit exceeds the business entity's tax
6218     liability for a taxable year.
6219          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
6220     commission may make rules providing procedures for making a refund to a business entity,
6221     local government entity, or community [development and renewal] reinvestment agency as
6222     required by Subsection (5)(a).
6223          (6) (a) On or before October 1, 2013, and every five years after October 1, 2013, the
6224     Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and
6225     make recommendations to the Legislative Management Committee concerning whether the tax
6226     credit should be continued, modified, or repealed.
6227          (b) For purposes of the study required by this Subsection (6), the office shall provide

6228     the following information to the Revenue and Taxation Interim Committee:
6229          (i) the amount of tax credit that the office grants to each business entity, local
6230     government entity, or community [development and renewal] reinvestment agency for each
6231     calendar year;
6232          (ii) the criteria that the office uses in granting a tax credit;
6233          (iii) (A) for a business entity, the new state revenues generated by the business entity
6234     for the calendar year; or
6235          (B) for a local government entity, regardless of whether the local government entity
6236     assigns the tax credit in accordance with Section 63N-2-104, the new state revenues generated
6237     as a result of a new commercial project within the local government entity for each calendar
6238     year;
6239          (iv) the information contained in the office's latest report to the Legislature under
6240     Section 63N-2-106; and
6241          (v) any other information that the Revenue and Taxation Interim Committee requests.
6242          (c) The Revenue and Taxation Interim Committee shall ensure that its
6243     recommendations under Subsection (6)(a) include an evaluation of:
6244          (i) the cost of the tax credit to the state;
6245          (ii) the purpose and effectiveness of the tax credit; and
6246          (iii) the extent to which the state benefits from the tax credit.
6247          Section 166. Section 59-12-603 is amended to read:
6248          59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
6249     ordinance required -- Advisory board -- Administration -- Collection -- Administrative
6250     charge -- Distribution -- Enactment or repeal of tax or tax rate change -- Effective date --
6251     Notice requirements.
6252          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
6253     part, impose a tax as follows:
6254          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
6255     on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
6256     and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
6257     vehicle that is being repaired pursuant to a repair or an insurance agreement; and
6258          (B) beginning on or after January 1, 1999, a county legislative body of any county

6259     imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
6260     Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
6261     of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
6262     for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
6263     to a repair or an insurance agreement;
6264          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
6265     sales of the following that are sold by a restaurant:
6266          (A) alcoholic beverages;
6267          (B) food and food ingredients; or
6268          (C) prepared food; and
6269          (iii) a county legislative body of a county of the first class may impose a tax of not to
6270     exceed .5% on charges for the accommodations and services described in Subsection
6271     59-12-103(1)(i).
6272          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
6273     17-31-5.5.
6274          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
6275     for in Subsections (1)(a)(i) through (iii) may be used for:
6276          (i) financing tourism promotion; and
6277          (ii) the development, operation, and maintenance of:
6278          (A) an airport facility;
6279          (B) a convention facility;
6280          (C) a cultural facility;
6281          (D) a recreation facility; or
6282          (E) a tourist facility.
6283          (b) A county of the first class shall expend at least $450,000 each year of the revenues
6284     from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
6285     marketing and ticketing system designed to:
6286          (i) promote tourism in ski areas within the county by persons that do not reside within
6287     the state; and
6288          (ii) combine the sale of:
6289          (A) ski lift tickets; and

6290          (B) accommodations and services described in Subsection 59-12-103(1)(i).
6291          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
6292     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
6293     Government Bonding Act, or a community [development and renewal] reinvestment agency
6294     under Title 17C, Chapter 1, Part 5, Agency Bonds, to finance:
6295          (a) an airport facility;
6296          (b) a convention facility;
6297          (c) a cultural facility;
6298          (d) a recreation facility; or
6299          (e) a tourist facility.
6300          (4) (a) In order to impose the tax under Subsection (1), each county legislative body
6301     shall adopt an ordinance imposing the tax.
6302          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
6303     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
6304     those items and sales described in Subsection (1).
6305          (c) The name of the county as the taxing agency shall be substituted for that of the state
6306     where necessary, and an additional license is not required if one has been or is issued under
6307     Section 59-12-106.
6308          (5) In order to maintain in effect its tax ordinance adopted under this part, each county
6309     legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
6310     Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
6311     amendments to Part 1, Tax Collection.
6312          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
6313     board in accordance with Section 17-31-8, the county legislative body of the county of the first
6314     class shall create a tax advisory board in accordance with this Subsection (6).
6315          (b) The tax advisory board shall be composed of nine members appointed as follows:
6316          (i) four members shall be appointed by the county legislative body of the county of the
6317     first class as follows:
6318          (A) one member shall be a resident of the unincorporated area of the county;
6319          (B) two members shall be residents of the incorporated area of the county; and
6320          (C) one member shall be a resident of the unincorporated or incorporated area of the

6321     county; and
6322          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
6323     towns within the county of the first class appointed by an organization representing all mayors
6324     of cities and towns within the county of the first class.
6325          (c) Five members of the tax advisory board constitute a quorum.
6326          (d) The county legislative body of the county of the first class shall determine:
6327          (i) terms of the members of the tax advisory board;
6328          (ii) procedures and requirements for removing a member of the tax advisory board;
6329          (iii) voting requirements, except that action of the tax advisory board shall be by at
6330     least a majority vote of a quorum of the tax advisory board;
6331          (iv) chairs or other officers of the tax advisory board;
6332          (v) how meetings are to be called and the frequency of meetings; and
6333          (vi) the compensation, if any, of members of the tax advisory board.
6334          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
6335     body of the county of the first class on the expenditure of revenues collected within the county
6336     of the first class from the taxes described in Subsection (1)(a).
6337          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
6338     shall be administered, collected, and enforced in accordance with:
6339          (A) the same procedures used to administer, collect, and enforce the tax under:
6340          (I) Part 1, Tax Collection; or
6341          (II) Part 2, Local Sales and Use Tax Act; and
6342          (B) Chapter 1, General Taxation Policies.
6343          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
6344     Subsections 59-12-205(2) through (6).
6345          (b) Except as provided in Subsection (7)(c):
6346          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
6347     commission shall distribute the revenues to the county imposing the tax; and
6348          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
6349     according to the distribution formula provided in Subsection (8).
6350          (c) The commission shall retain and deposit an administrative charge in accordance
6351     with Section 59-1-306 from the revenues the commission collects from a tax under this part.

6352          (8) The commission shall distribute the revenues generated by the tax under Subsection
6353     (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
6354     following formula:
6355          (a) the commission shall distribute 70% of the revenues based on the percentages
6356     generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
6357     the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
6358          (b) the commission shall distribute 30% of the revenues based on the percentages
6359     generated by dividing the population of each county collecting a tax under Subsection
6360     (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
6361          (9) (a) For purposes of this Subsection (9):
6362          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
6363     County Annexation.
6364          (ii) "Annexing area" means an area that is annexed into a county.
6365          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
6366     enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
6367     change shall take effect:
6368          (A) on the first day of a calendar quarter; and
6369          (B) after a 90-day period beginning on the date the commission receives notice meeting
6370     the requirements of Subsection (9)(b)(ii) from the county.
6371          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
6372          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
6373          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
6374          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
6375          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
6376     (9)(b)(ii)(A), the rate of the tax.
6377          (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
6378     the first billing period:
6379          (A) that begins after the effective date of the enactment of the tax or the tax rate
6380     increase; and
6381          (B) if the billing period for the transaction begins before the effective date of the
6382     enactment of the tax or the tax rate increase imposed under Subsection (1).

6383          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
6384     billing period:
6385          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
6386     and
6387          (B) if the billing period for the transaction begins before the effective date of the repeal
6388     of the tax or the tax rate decrease imposed under Subsection (1).
6389          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
6390     after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
6391     tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
6392          (A) on the first day of a calendar quarter; and
6393          (B) after a 90-day period beginning on the date the commission receives notice meeting
6394     the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
6395          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
6396          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
6397     repeal, or change in the rate of a tax under this part for the annexing area;
6398          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
6399          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
6400          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
6401     (9)(d)(ii)(A), the rate of the tax.
6402          (e) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
6403     the first billing period:
6404          (A) that begins after the effective date of the enactment of the tax or the tax rate
6405     increase; and
6406          (B) if the billing period for the transaction begins before the effective date of the
6407     enactment of the tax or the tax rate increase imposed under Subsection (1).
6408          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
6409     billing period:
6410          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
6411     and
6412          (B) if the billing period for the transaction begins before the effective date of the repeal
6413     of the tax or the tax rate decrease imposed under Subsection (1).

6414          Section 167. Section 63G-7-102 is amended to read:
6415          63G-7-102. Definitions.
6416          As used in this chapter:
6417          (1) "Claim" means any asserted demand for or cause of action for money or damages,
6418     whether arising under the common law, under state constitutional provisions, or under state
6419     statutes, against a governmental entity or against an employee in the employee's personal
6420     capacity.
6421          (2) (a) "Employee" includes:
6422          (i) a governmental entity's officers, employees, servants, trustees, or commissioners;
6423          (ii) members of a governing body;
6424          (iii) members of a government entity board;
6425          (iv) members of a government entity commission;
6426          (v) members of an advisory body, officers, and employees of a Children's Justice
6427     Center created in accordance with Section 67-5b-104;
6428          (vi) student teachers holding a letter of authorization in accordance with Sections
6429     53A-6-103 and 53A-6-104;
6430          (vii) educational aides;
6431          (viii) students engaged in providing services to members of the public in the course of
6432     an approved medical, nursing, or other professional health care clinical training program;
6433          (ix) volunteers as defined by Subsection 67-20-2(3); and
6434          (x) tutors.
6435          (b) "Employee" includes all of the positions identified in Subsection (2)(a), whether or
6436     not the individual holding that position receives compensation.
6437          (c) "Employee" does not include an independent contractor.
6438          (3) "Governmental entity" means the state and its political subdivisions as both are
6439     defined in this section.
6440          (4) (a) "Governmental function" means each activity, undertaking, or operation of a
6441     governmental entity.
6442          (b) "Governmental function" includes each activity, undertaking, or operation
6443     performed by a department, agency, employee, agent, or officer of a governmental entity.
6444          (c) "Governmental function" includes a governmental entity's failure to act.

6445          (5) "Injury" means death, injury to a person, damage to or loss of property, or any other
6446     injury that a person may suffer to the person or estate, that would be actionable if inflicted by a
6447     private person or the private person's agent.
6448          (6) "Personal injury" means an injury of any kind other than property damage.
6449          (7) "Political subdivision" means any county, city, town, school district, community
6450     [development and renewal] reinvestment agency, special improvement or taxing district, local
6451     district, special service district, an entity created by an interlocal agreement adopted under Title
6452     11, Chapter 13, Interlocal Cooperation Act, or other governmental subdivision or public
6453     corporation.
6454          (8) "Property damage" means injury to, or loss of, any right, title, estate, or interest in
6455     real or personal property.
6456          (9) "State" means the state of Utah, and includes each office, department, division,
6457     agency, authority, commission, board, institution, hospital, college, university, Children's
6458     Justice Center, or other instrumentality of the state.
6459          (10) "Willful misconduct" means the intentional doing of a wrongful act, or the
6460     wrongful failure to act, without just cause or excuse, where the actor is aware that the actor's
6461     conduct will probably result in injury.
6462          Section 168. Section 63G-9-201 is amended to read:
6463          63G-9-201. Members -- Functions.
6464          (1) As used in this chapter:
6465          (a) "Political subdivision" means any county, city, town, school district, community
6466     [development and renewal] reinvestment agency, special improvement or taxing district, local
6467     district, special service district, an entity created by an interlocal agreement adopted under Title
6468     11, Chapter 13, Interlocal Cooperation Act, or other governmental subdivision or public
6469     corporation.
6470          (b) "State" means the state of Utah, and includes each office, department, division,
6471     agency, authority, commission, board, institution, college, university, Children's Justice Center,
6472     or other instrumentality of the state.
6473          (2) The governor, the state auditor, and the attorney general shall constitute a Board of
6474     Examiners, with power to examine all claims against the state or a political subdivision, for the
6475     payment of which funds appropriated by the Legislature or derived from any other source are

6476     not available.
6477          (3) No claim against the state or a political subdivision, for the payment of which
6478     specifically designated funds are required to be appropriated by the Legislature shall be passed
6479     upon by the Legislature without having been considered and acted upon by the Board of
6480     Examiners.
6481          (4) The governor shall be the president, and the state auditor shall be the secretary of
6482     the board, and in the absence of either an officer pro tempore may be elected from among the
6483     members of the board.
6484          Section 169. Section 63I-1-259 is amended to read:
6485          63I-1-259. Repeal dates, Title 59.
6486          (1) Subsection 59-2-924[(3)](5)(g) is repealed on December 31, 2016.
6487          (2) Subsection 59-2-924.2(9) is repealed on December 31, 2017.
6488          (3) Section 59-2-924.3 is repealed on December 31, 2016.
6489          (4) Section 59-7-618 is repealed July 1, 2020.
6490          (5) Section 59-9-102.5 is repealed December 31, 2020.
6491          (6) Section 59-10-1033 is repealed July 1, 2020.
6492          (7) Subsection 59-12-2219(10) is repealed on June 30, 2020.
6493          Section 170. Section 63N-2-103 is amended to read:
6494          63N-2-103. Definitions.
6495          As used in this part:
6496          (1) "Business entity" means a person that enters into an agreement with the office to
6497     initiate a new commercial project in Utah that will qualify the person to receive a tax credit
6498     under Section 59-7-614.2 or 59-10-1107.
6499          (2) "Community [development and renewal] reinvestment agency" has the same
6500     meaning as that term is defined in Section 17C-1-102.
6501          (3) "Development zone" means an economic development zone created under Section
6502     63N-2-104.
6503          (4) "High paying jobs" means:
6504          (a) with respect to a business entity, the aggregate average annual gross wages, not
6505     including healthcare or other paid or unpaid benefits, of newly created full-time employment
6506     positions in a business entity that are at least 110% of the average wage of a community in

6507     which the employment positions will exist;
6508          (b) with respect to a county, the aggregate average annual gross wages, not including
6509     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
6510     a new commercial project within the county that are at least 110% of the average wage of the
6511     county in which the employment positions will exist; or
6512          (c) with respect to a city or town, the aggregate average annual gross wages, not
6513     including healthcare or other paid or unpaid benefits of newly created full-time employment
6514     positions in a new commercial project within the city or town that are at least 110% of the
6515     average wages of the city or town in which the employment positions will exist.
6516          (5) "Local government entity" means a county, city, or town that enters into an
6517     agreement with the office to have a new commercial project that:
6518          (a) is initiated within the county's, city's, or town's boundaries; and
6519          (b) qualifies the county, city, or town to receive a tax credit under Section 59-7-614.2.
6520          (6) (a) "New commercial project" means an economic development opportunity that
6521     involves new or expanded industrial, manufacturing, distribution, or business services in Utah.
6522          (b) "New commercial project" does not include retail business.
6523          (7) (a) "New incremental jobs" means full-time employment positions that are filled by
6524     employees who work at least 30 hours per week and that are:
6525          (i) with respect to a business entity, created in addition to the baseline count of
6526     employment positions that existed within the business entity before the new commercial
6527     project;
6528          (ii) with respect to a county, created as a result of a new commercial project with
6529     respect to which the county or a community development and renewal agency seeks to claim a
6530     tax credit under Section 59-7-614.2; or
6531          (iii) with respect to a city or town, created as a result of a new commercial project with
6532     respect to which the city, town, or a community development and renewal agency seeks to
6533     claim a tax credit under Section 59-7-614.2.
6534          (b) "New incremental jobs" may include full-time equivalent positions that are filled by
6535     more than one employee, if each employee who works less than 30 hours per week is provided
6536     benefits comparable to a full-time employee.
6537          (c) "New incremental jobs" does not include jobs that are shifted from one jurisdiction

6538     in the state to another jurisdiction in the state.
6539          (8) "New state revenues" means:
6540          (a) with respect to a business entity:
6541          (i) incremental new state sales and use tax revenues that a business entity pays under
6542     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
6543     development zone;
6544          (ii) incremental new state tax revenues that a business entity pays as a result of a new
6545     commercial project in a development zone under:
6546          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
6547          (B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
6548     Information;
6549          (C) Title 59, Chapter 10, Part 2, Trusts and Estates;
6550          (D) Title 59, Chapter 10, Part 4, Withholding of Tax; or
6551          (E) a combination of Subsections (8)(a)(ii)(A) through (D);
6552          (iii) incremental new state tax revenues paid as individual income taxes under Title 59,
6553     Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
6554     employees of a new or expanded industrial, manufacturing, distribution, or business service
6555     within a new commercial project as evidenced by payroll records that indicate the amount of
6556     employee income taxes withheld and transmitted to the State Tax Commission by the new or
6557     expanded industrial, manufacturing, distribution, or business service within the new
6558     commercial project; or
6559          (iv) a combination of Subsections (8)(a)(i) through (iii); or
6560          (b) with respect to a local government entity:
6561          (i) incremental new state sales and use tax revenues that are collected under Title 59,
6562     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
6563     zone;
6564          (ii) incremental new state tax revenues that are collected as a result of a new
6565     commercial project in a development zone under:
6566          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
6567          (B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
6568     Information;

6569          (C) Title 59, Chapter 10, Part 2, Trusts and Estates;
6570          (D) Title 59, Chapter 10, Part 4, Withholding of Tax; or
6571          (E) a combination of Subsections (8)(b)(ii)(A) through (D);
6572          (iii) incremental new state tax revenues paid as individual income taxes under Title 59,
6573     Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
6574     employees of a new or expanded industrial, manufacturing, distribution, or business service
6575     within a new commercial project as evidenced by payroll records that indicate the amount of
6576     employee income taxes withheld and transmitted to the State Tax Commission by the new or
6577     expanded industrial, manufacturing, distribution, or business service within the new
6578     commercial project; or
6579          (iv) a combination of Subsections (8)(b)(i) through (iii).
6580          (9) "Significant capital investment" means an amount of at least $10,000,000 to
6581     purchase capital or fixed assets, which may include real property, personal property, and other
6582     fixtures related to a new commercial project:
6583          (a) that represents an expansion of existing operations in the state; or
6584          (b) that maintains or increases the business entity's existing work force in the state.
6585          (10) "Tax credit" means an economic development tax credit created by Section
6586     59-7-614.2 or 59-10-1107.
6587          (11) "Tax credit amount" means the amount the office lists as a tax credit on a tax
6588     credit certificate for a taxable year.
6589          (12) "Tax credit certificate" means a certificate issued by the office that:
6590          (a) lists the name of the business entity, local government entity, or community
6591     development and renewal agency to which the office authorizes a tax credit;
6592          (b) lists the business entity's, local government entity's, or community development and
6593     renewal agency's taxpayer identification number;
6594          (c) lists the amount of tax credit that the office authorizes the business entity, local
6595     government entity, or community development and renewal agency for the taxable year; and
6596          (d) may include other information as determined by the office.
6597          Section 171. Section 63N-2-104 is amended to read:
6598          63N-2-104. Creation of economic development zones -- Tax credits -- Assignment
6599     of tax credit.

6600          (1) The office, with advice from the board, may create an economic development zone
6601     in the state if the following requirements are satisfied:
6602          (a) the area is zoned commercial, industrial, manufacturing, business park, research
6603     park, or other appropriate business related use in a community-approved master plan;
6604          (b) the request to create a development zone has first been approved by an appropriate
6605     local government entity; and
6606          (c) local incentives have been or will be committed to be provided within the area.
6607          (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
6608     the office shall make rules establishing the requirements for a business entity or local
6609     government entity to qualify for a tax credit for a new commercial project in a development
6610     zone under this part.
6611          (b) The office shall ensure that the requirements described in Subsection (2)(a) include
6612     the following:
6613          (i) the new commercial project is within the development zone;
6614          (ii) the new commercial project includes direct investment within the geographic
6615     boundaries of the development zone;
6616          (iii) the new commercial project brings new incremental jobs to Utah;
6617          (iv) the new commercial project includes the creation of high paying jobs in the state,
6618     significant capital investment in the state, or significant purchases from vendors and providers
6619     in the state, or a combination of these three economic factors;
6620          (v) the new commercial project generates new state revenues; and
6621          (vi) a business entity, a local government entity, or a community [development and
6622     renewal] reinvestment agency to which a local government entity assigns a tax credit under this
6623     section meets the requirements of Section 63N-2-105.
6624          (3) (a) The office, after consultation with the board, may enter into a written agreement
6625     with a business entity or local government entity authorizing a tax credit to the business entity
6626     or local government entity if the business entity or local government entity meets the
6627     requirements described in this section.
6628          (b) (i) With respect to a new commercial project, the office may authorize a tax credit
6629     to a business entity or a local government entity, but not both.
6630          (ii) In determining whether to authorize a tax credit with respect to a new commercial

6631     project to a business entity or a local government entity, the office shall authorize the tax credit
6632     in a manner that the office determines will result in providing the most effective incentive for
6633     the new commercial project.
6634          (c) (i) Except as provided in Subsection (3)(c)(ii), the office may not authorize or
6635     commit to authorize a tax credit that exceeds:
6636          (A) 50% of the new state revenues from the new commercial project in any given year;
6637     or
6638          (B) 30% of the new state revenues from the new commercial project over the lesser of
6639     the life of a new commercial project or 20 years.
6640          (ii) If the eligible business entity makes capital expenditures in the state of
6641     $1,500,000,000 or more associated with a new commercial project, the office may:
6642          (A) authorize or commit to authorize a tax credit not exceeding 60% of new state
6643     revenues over the lesser of the life of the project or 20 years, if the other requirements of this
6644     part are met;
6645          (B) establish the year that state revenues and incremental jobs baseline data are
6646     measured for purposes of an incentive under this Subsection (3)(c)(ii); and
6647          (C) offer an incentive under this Subsection (3)(c)(ii) or modify an existing incentive
6648     previously granted under Subsection (3)(c)(i) that is based on the baseline measurements
6649     described in Subsection (3)(c)(ii)(B), except that the incentive may not authorize or commit to
6650     authorize a tax credit of more than 60% of new state revenues in any one year.
6651          (d) (i) A local government entity may by resolution assign a tax credit authorized by
6652     the office to a community [development and renewal] reinvestment agency.
6653          (ii) The local government entity shall provide a copy of the resolution described in
6654     Subsection (3)(d)(i) to the office.
6655          (iii) If a local government entity assigns a tax credit to a community [development and
6656     renewal] reinvestment agency, the written agreement described in Subsection (3)(a) shall:
6657          (A) be between the office, the local government entity, and the community
6658     [development and renewal] reinvestment agency;
6659          (B) establish the obligations of the local government entity and the community
6660     [development and renewal] reinvestment agency; and
6661          (C) establish the extent to which any of the local government entity's obligations are

6662     transferred to the community [development and renewal] reinvestment agency.
6663          (iv) If a local government entity assigns a tax credit to a community [development and
6664     renewal] reinvestment agency:
6665          (A) the community [development and renewal] reinvestment agency shall retain
6666     records as described in Subsection (4)(d); and
6667          (B) a tax credit certificate issued in accordance with Section 63N-2-106 shall list the
6668     community [development and renewal] reinvestment agency as the named applicant.
6669          (4) The office shall ensure that the written agreement described in Subsection (3):
6670          (a) specifies the requirements that the business entity or local government entity shall
6671     meet to qualify for a tax credit under this part;
6672          (b) specifies the maximum amount of tax credit that the business entity or local
6673     government entity may be authorized for a taxable year and over the life of the new commercial
6674     project;
6675          (c) establishes the length of time the business entity or local government entity may
6676     claim a tax credit;
6677          (d) requires the business entity or local government entity to retain records supporting a
6678     claim for a tax credit for at least four years after the business entity or local government entity
6679     claims a tax credit under this part; and
6680          (e) requires the business entity or local government entity to submit to audits for
6681     verification of the tax credit claimed.
6682          Section 172. Section 63N-2-105 is amended to read:
6683          63N-2-105. Qualifications for tax credit -- Procedure.
6684          (1) The office shall certify a business entity's or local government entity's eligibility for
6685     a tax credit as provided in this part.
6686          (2) A business entity or local government entity seeking to receive a tax credit as
6687     provided in this part shall provide the office with:
6688          (a) an application for a tax credit certificate, including a certification, by an officer of
6689     the business entity, of any signature on the application;
6690          (b) (i) for a business entity, documentation of the new state revenues from the business
6691     entity's new commercial project that were paid during the preceding calendar year; or
6692          (ii) for a local government entity, documentation of the new state revenues from the

6693     new commercial project within the area of the local government entity that were paid during
6694     the preceding calendar year;
6695          (c) known or expected detriments to the state or existing businesses in the state;
6696          (d) if a local government entity seeks to assign the tax credit to a community
6697     [development and renewal] reinvestment agency as described in Section 63N-2-104, a
6698     statement providing the name and taxpayer identification number of the community
6699     [development and renewal] reinvestment agency to which the local government entity seeks to
6700     assign the tax credit;
6701          (e) (i) with respect to a business entity, a document that expressly directs and
6702     authorizes the State Tax Commission to disclose to the office the business entity's returns and
6703     other information that would otherwise be subject to confidentiality under Section 59-1-403 or
6704     Section 6103, Internal Revenue Code;
6705          (ii) with respect to a local government entity that seeks to claim the tax credit:
6706          (A) a document that expressly directs and authorizes the State Tax Commission to
6707     disclose to the office the local government entity's returns and other information that would
6708     otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal
6709     Revenue Code; and
6710          (B) if the new state revenues collected as a result of a new commercial project are
6711     attributable in whole or in part to a new or expanded industrial, manufacturing, distribution, or
6712     business service within a new commercial project within the area of the local government
6713     entity, a document signed by an authorized representative of the new or expanded industrial,
6714     manufacturing, distribution, or business service that:
6715          (I) expressly directs and authorizes the State Tax Commission to disclose to the office
6716     the returns of the new or expanded industrial, manufacturing, distribution, or business service
6717     and other information that would otherwise be subject to confidentiality under Section
6718     59-1-403 or Section 6103, Internal Revenue Code; and
6719          (II) lists the taxpayer identification number of the new or expanded industrial,
6720     manufacturing, distribution, or business service; or
6721          (iii) with respect to a local government entity that seeks to assign the tax credit to a
6722     community [development and renewal] reinvestment agency:
6723          (A) a document signed by the members of the governing body of the community

6724     [development and renewal] reinvestment agency that expressly directs and authorizes the State
6725     Tax Commission to disclose to the office the returns of the community [development and
6726     renewal] reinvestment agency and other information that would otherwise be subject to
6727     confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code; and
6728          (B) if the new state revenues collected as a result of a new commercial project are
6729     attributable in whole or in part to a new or expanded industrial, manufacturing, distribution, or
6730     business service within a new commercial project within the community [development and
6731     renewal] reinvestment agency, a document signed by an authorized representative of the new or
6732     expanded industrial, manufacturing, distribution, or business service that:
6733          (I) expressly directs and authorizes the State Tax Commission to disclose to the office
6734     the returns of the new or expanded industrial, manufacturing, distribution, or business service
6735     and other information that would otherwise be subject to confidentiality under Section
6736     59-1-403 or Section 6103, Internal Revenue Code; and
6737          (II) lists the taxpayer identification number of the new or expanded industrial,
6738     manufacturing, distribution, or business service; and
6739          (f) for a business entity only, documentation that the business entity has satisfied the
6740     performance benchmarks outlined in the written agreement described in Subsection
6741     63N-2-104(3)(a), including:
6742          (i) the creation of new incremental jobs that are also high paying jobs;
6743          (ii) significant capital investment;
6744          (iii) significant purchases from Utah vendors and providers; or
6745          (iv) a combination of these benchmarks.
6746          (3) (a) The office shall submit the documents described in Subsection (2)(e) to the
6747     State Tax Commission.
6748          (b) Upon receipt of a document described in Subsection (2)(e), the State Tax
6749     Commission shall provide the office with the returns and other information requested by the
6750     office that the State Tax Commission is directed or authorized to provide to the office in
6751     accordance with Subsection (2)(e).
6752          (4) If, after review of the returns and other information provided by the State Tax
6753     Commission, or after review of the ongoing performance of the business entity or local
6754     government entity, the office determines that the returns and other information are inadequate

6755     to provide a reasonable justification for authorizing or continuing a tax credit, the office shall:
6756          (a) (i) deny the tax credit; or
6757          (ii) terminate the agreement described in Subsection 63N-2-104(3)(a) for failure to
6758     meet the performance standards established in the agreement; or
6759          (b) inform the business entity or local government entity that the returns or other
6760     information were inadequate and ask the business entity or local government entity to submit
6761     new documentation.
6762          (5) If after review of the returns and other information provided by the State Tax
6763     Commission, the office determines that the returns and other information provided by the
6764     business entity or local government entity provide reasonable justification for authorizing a tax
6765     credit, the office shall, based upon the returns and other information:
6766          (a) determine the amount of the tax credit to be granted to the business entity, local
6767     government entity, or if the local government entity assigns the tax credit as described in
6768     Section 63N-2-104, to the community [development and renewal] reinvestment agency to
6769     which the local government entity assigns the tax credit;
6770          (b) issue a tax credit certificate to the business entity, local government entity, or if the
6771     local government entity assigns the tax credit as described in Section 63N-2-104, to the
6772     community [development and renewal] reinvestment agency to which the local government
6773     entity assigns the tax credit; and
6774          (c) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
6775          (6) A business entity, local government entity, or community [development and
6776     renewal] reinvestment agency may not claim a tax credit unless the business entity, local
6777     government entity, or community [development and renewal] reinvestment agency has a tax
6778     credit certificate issued by the office.
6779          (7) (a) A business entity, local government entity, or community [development and
6780     renewal] reinvestment agency may claim a tax credit in the amount listed on the tax credit
6781     certificate on its tax return.
6782          (b) A business entity, local government entity, or community [development and
6783     renewal] reinvestment agency that claims a tax credit under this section shall retain the tax
6784     credit certificate in accordance with Section 59-7-614.2 or 59-10-1107.
6785          Section 173. Section 63N-2-107 is amended to read:

6786          63N-2-107. Reports of new state revenues, partial rebates, and tax credits.
6787          (1) Before October 1 of each year, the office shall submit a report to the Governor's
6788     Office of Management and Budget, the Office of Legislative Fiscal Analyst, and the Division
6789     of Finance identifying:
6790          (a) (i) the total estimated amount of new state revenues created from new commercial
6791     projects in development zones;
6792          (ii) the estimated amount of new state revenues from new commercial projects in
6793     development zones that will be generated from:
6794          (A) sales tax;
6795          (B) income tax; and
6796          (C) corporate franchise and income tax; and
6797          (iii) the minimum number of new incremental jobs and high paying jobs that will be
6798     created before any tax credit is awarded; and
6799          (b) the total estimated amount of tax credits that the office projects that business
6800     entities, local government entities, or community [development and renewal] reinvestment
6801     agencies will qualify to claim under this part.
6802          (2) By the first business day of each month, the office shall submit a report to the
6803     Governor's Office of Management and Budget, the Office of Legislative Fiscal Analyst, and the
6804     Division of Finance identifying:
6805          (a) each new agreement entered into by the office since the last report;
6806          (b) the estimated amount of new state revenues that will be generated under each
6807     agreement;
6808          (c) the estimated maximum amount of tax credits that a business entity, local
6809     government entity, or community [development and renewal] reinvestment agency could
6810     qualify for under each agreement; and
6811          (d) the minimum number of new incremental jobs and high paying jobs that will be
6812     created before any tax credit is awarded.
6813          (3) At the reasonable request of the Governor's Office of Management and Budget, the
6814     Office of Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
6815     additional information about the tax credit, new incremental jobs and high paying jobs, costs,
6816     and economic benefits related to this part, if the information is part of a public record as

6817     defined in Section 63G-2-103.
6818          Section 174. Section 63N-2-108 is amended to read:
6819          63N-2-108. Expenditure of amounts received by a local government entity or
6820     community reinvestment agency as a tax credit -- Commingling of tax credit amounts
6821     with certain other amounts.
6822          (1) Subject to Subsections (2) and (3), a local government entity or community
6823     [development and renewal] reinvestment agency may expend amounts the local government
6824     entity or community [development and renewal] reinvestment agency receives as a tax credit
6825     under Section 59-7-614.2:
6826          (a) for infrastructure, including real property or personal property, if that infrastructure
6827     is related to the new commercial project with respect to which the local government entity or
6828     community [development and renewal] reinvestment agency claims the tax credit under
6829     Section 59-7-614.2; or
6830          (b) for another economic development purpose related to the new commercial project
6831     with respect to which the local government entity or community [development and renewal]
6832     reinvestment agency claims the tax credit under Section 59-7-614.2.
6833          (2) A local government entity may:
6834          (a) commingle amounts the local government entity receives as a tax credit under
6835     Section 59-7-614.2 with amounts the local government entity receives under Title 63N,
6836     Chapter 3, Part 1, Industrial Assistance Account; and
6837          (b) expend the commingled amounts described in Subsection (2)(a) for a purpose
6838     described in Title 63N, Chapter 3, Part 1, Industrial Assistance Account, if that purpose is
6839     related to the new commercial project with respect to which the local government entity claims
6840     the tax credit under Section 59-7-614.2.
6841          (3) A community [development and renewal] reinvestment agency may:
6842          (a) commingle amounts the community [development and renewal] reinvestment
6843     agency receives as a tax credit under Section 59-7-614.2 with amounts the community
6844     [development and renewal] reinvestment agency receives under Title 17C, Chapter 1, Part 4,
6845     [Tax Increment and Sales Tax] Project Area Funds; and
6846          (b) expend the commingled amounts described in Subsection (3)(a) for a purpose
6847     described in Title 17C, Chapter 1, Part 4, [Tax Increment and Sales Tax] Project Area Funds, if

6848     that purpose is related to the new commercial project with respect to which the community
6849     [development and renewal] reinvestment agency claims the tax credit under Section
6850     59-7-614.2.
6851          Section 175. Section 63N-2-502 is amended to read:
6852          63N-2-502. Definitions.
6853          As used in this part:
6854          (1) "Agreement" means an agreement described in Section 63N-2-503.
6855          (2) "Base taxable value" means the value of hotel property before the construction on a
6856     qualified hotel begins, as that value is established by the county in which the hotel property is
6857     located, using a reasonable valuation method that may include the value of the hotel property
6858     on the county assessment rolls the year before the year during which construction on the
6859     qualified hotel begins.
6860          (3) "Certified claim" means a claim that the office has approved and certified as
6861     provided in Section 63N-2-505.
6862          (4) "Claim" means a written document submitted by a qualified hotel owner or host
6863     local government to request a convention incentive.
6864          (5) "Claimant" means the qualified hotel owner or host local government that submits a
6865     claim under Subsection 63N-2-505(1)(a) for a convention incentive.
6866          (6) "Commission" means the Utah State Tax Commission.
6867          (7) "Community [development and renewal] reinvestment agency" means the same as
6868     that term is defined in Section 17C-1-102.
6869          (8) "Construction revenue" means revenue generated from state taxes and local taxes
6870     imposed on transactions occurring during the eligibility period as a result of the construction of
6871     the hotel property, including purchases made by a qualified hotel owner and its subcontractors.
6872          (9) "Convention incentive" means an incentive for the development of a qualified
6873     hotel, in the form of payment from the incentive fund as provided in this part, as authorized in
6874     an agreement.
6875          (10) "Eligibility period" means:
6876          (a) the period that:
6877          (i) begins the date construction of a qualified hotel begins; and
6878          (ii) ends:

6879          (A) for purposes of the state portion, 20 years after the date of initial occupancy of that
6880     qualified hotel; or
6881          (B) for purposes of the local portion and incremental property tax revenue, 25 years
6882     after the date of initial occupancy of that hotel; or
6883          (b) as provided in an agreement between the office and a qualified hotel owner or host
6884     local government, a period that:
6885          (i) begins no earlier than the date construction of a qualified hotel begins; and
6886          (ii) is shorter than the period described in Subsection (10)(a).
6887          (11) "Endorsement letter" means a letter:
6888          (a) from the county in which a qualified hotel is located or is proposed to be located;
6889          (b) signed by the county executive; and
6890          (c) expressing the county's endorsement of a developer of a qualified hotel as meeting
6891     all the county's criteria for receiving the county's endorsement.
6892          (12) "Host agency" means the community [development and renewal] reinvestment
6893     agency of the host local government.
6894          (13) "Host local government" means:
6895          (a) a county that enters into an agreement with the office for the construction of a
6896     qualified hotel within the unincorporated area of the county; or
6897          (b) a city or town that enters into an agreement with the office for the construction of a
6898     qualified hotel within the boundary of the city or town.
6899          (14) "Hotel property" means a qualified hotel and any property that is included in the
6900     same development as the qualified hotel, including convention, exhibit, and meeting space,
6901     retail shops, restaurants, parking, and other ancillary facilities and amenities.
6902          (15) "Incentive fund" means the Convention Incentive Fund created in Section
6903     63N-2-503.5.
6904          (16) "Incremental property tax revenue" means the amount of property tax revenue
6905     generated from hotel property that equals the difference between:
6906          (a) the amount of property tax revenue generated in any tax year by all taxing entities
6907     from hotel property, using the current assessed value of the hotel property; and
6908          (b) the amount of property tax revenue that would be generated that tax year by all
6909     taxing entities from hotel property, using the hotel property's base taxable value.

6910          (17) "Local portion" means the portion of new tax revenue that is generated by local
6911     taxes.
6912          (18) "Local taxes" means a tax imposed under:
6913          (a) Section 59-12-204;
6914          (b) Section 59-12-301;
6915          (c) Sections 59-12-352 and 59-12-353;
6916          (d) Subsection 59-12-603(1)(a)(i)(A);
6917          (e) Subsection 59-12-603(1)(a)(i)(B);
6918          (f) Subsection 59-12-603(1)(a)(ii);
6919          (g) Subsection 59-12-603(1)(a)(iii); or
6920          (h) Section 59-12-1102.
6921          (19) "New tax revenue" means construction revenue, offsite revenue, and onsite
6922     revenue.
6923          (20) "Offsite revenue" means revenue generated from state taxes and local taxes
6924     imposed on transactions by a third-party seller occurring other than on hotel property during the
6925     eligibility period, if:
6926          (a) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax
6927     Act; and
6928          (b) the third-party seller voluntarily consents to the disclosure of information to the
6929     office, as provided in Subsection 63N-2-505(2)(b)(i)(E).
6930          (21) "Onsite revenue" means revenue generated from state taxes and local taxes
6931     imposed on transactions occurring on hotel property during the eligibility period.
6932          (22) "Public infrastructure" means:
6933          (a) water, sewer, storm drainage, electrical, telecommunications, and other similar
6934     systems and lines;
6935          (b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
6936     transportation facilities; and
6937          (c) other buildings, facilities, infrastructure, and improvements that benefit the public.
6938          (23) "Qualified hotel" means a full-service hotel development constructed in the state
6939     on or after July 1, 2014 that:
6940          (a) requires a significant capital investment;

6941          (b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
6942     room; and
6943          (c) is located within 1,000 feet of a convention center that contains at least 500,000
6944     square feet of convention, exhibit, and meeting space.
6945          (24) "Qualified hotel owner" means a person who owns a qualified hotel.
6946          (25) "Review committee" means the independent review committee established under
6947     Section 63N-2-504.
6948          (26) "Significant capital investment" means an amount of at least $200,000,000.
6949          (27) "State portion" means the portion of new tax revenue that is generated by state
6950     taxes.
6951          (28) "State taxes" means a tax imposed under Subsection 59-12-103(2)(a)(i), (2)(b)(i),
6952     (2)(c)(i), or (2)(d)(i)(A).
6953          (29) "Third-party seller" means a person who is a seller in a transaction:
6954          (a) occurring other than on hotel property;
6955          (b) that is:
6956          (i) the sale, rental, or lease of a room or of convention or exhibit space or other
6957     facilities on hotel property; or
6958          (ii) the sale of tangible personal property or a service that is part of a bundled
6959     transaction, as defined in Section 59-12-102, with a sale, rental, or lease described in
6960     Subsection (29)(b)(i); and
6961          (c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
6962          Section 176. Section 63N-2-505 is amended to read:
6963          63N-2-505. Submission of written claim for convention incentive -- Disclosure of
6964     tax returns and other information -- Determination of claim.
6965          (1) The office may not pay any money from the incentive fund to a qualified hotel
6966     owner or host local government unless:
6967          (a) the qualified hotel owner or host local government submits a claim and other
6968     required documentation, as provided in this section; and
6969          (b) the office approves and certifies the claim, as provided in this section.
6970          (2) A qualified hotel owner or host local government that desires to qualify for a
6971     convention incentive shall submit to the office:

6972          (a) a written claim for a convention incentive;
6973          (b) (i) for a claim submitted by a qualified hotel owner:
6974          (A) a certification by the individual signing the claim that the individual is duly
6975     authorized to sign the claim on behalf of the qualified hotel owner;
6976          (B) documentation of the new tax revenue previously generated, itemized by
6977     construction revenue, offsite revenue, onsite revenue, type of sales or use tax, and the location
6978     of the transaction generating the new tax revenue as determined under Sections 59-12-211,
6979     59-12-211.1, 59-12-212, 59-12-213, 59-12-214, and 59-12-215;
6980          (C) the identity of sellers collecting onsite revenue and the date the sellers will begin
6981     collecting onsite revenue;
6982          (D) a document in which the qualified hotel owner expressly directs and authorizes the
6983     commission to disclose to the office the qualified hotel owner's tax returns and other
6984     information that would otherwise be subject to confidentiality under Section 59-1-403 or
6985     Section 6103, Internal Revenue Code;
6986          (E) a document in which the qualified hotel's direct vendors, lessees, or subcontractors,
6987     as applicable, expressly direct and authorize the commission to disclose to the office the tax
6988     returns and other information of those vendors, lessees, or subcontractors that would otherwise
6989     be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code;
6990          (F) a document in which a third-party seller expressly and voluntarily directs and
6991     authorizes the commission to disclose to the office the third-party seller's tax returns and other
6992     information that would otherwise be subject to confidentiality under Section 59-1-403 or
6993     Section 6103, Internal Revenue Code;
6994          (G) documentation verifying that the qualified hotel owner is in compliance with the
6995     terms of the agreement; and
6996          (H) any other documentation that the agreement or office requires; and
6997          (ii) for an application submitted by a host local government, documentation of the new
6998     tax revenue generated during the preceding year;
6999          (c) if the host local government intends to assign the convention incentive to a
7000     community [development and renewal] reinvestment agency, a document signed by the
7001     governing body members of the community [development and renewal] reinvestment agency
7002     that expressly directs and authorizes the commission to disclose to the office the agency's tax

7003     returns and other information that would otherwise be subject to confidentiality under Section
7004     59-1-403 or Section 6103, Internal Revenue Code; and
7005          (d) an audit level attestation, or other level of review approved by the office, from an
7006     independent certified public accountant, hired by the claimant, attesting to the accuracy and
7007     validity of the amount of the state portion and the local portion being claimed by the claimant.
7008          (3) (a) The office shall submit to the commission the documents described in
7009     Subsections (2)(b)(i)(C), (D), and (E) and (2)(c) authorizing disclosure of the tax returns and
7010     other information.
7011          (b) Upon receipt of the documents described in Subsection (3)(a), the commission shall
7012     provide to the office the tax returns and other information described in those documents.
7013          (4) If the office determines that the tax returns and other information are inadequate to
7014     enable the office to approve and certify a claim, the office shall inform the claimant that the tax
7015     returns and other information were inadequate and request the tax credit applicant to submit
7016     additional documentation to validate the claim.
7017          (5) If the office determines that the returns and other information, including any
7018     additional documentation provided under Subsection (4), comply with applicable requirements
7019     and provide reasonable justification to approve and certify the claim, the office shall:
7020          (a) approve and certify the claim;
7021          (b) determine the amount of the certified claim; and
7022          (c) disburse money from the incentive fund to pay the certified claim as provided in
7023     Subsection (6).
7024          (6) The office shall pay claims from available money in the incentive fund at least
7025     annually.
7026          (7) For each certified claim, the office shall provide the commission:
7027          (a) for onsite revenue:
7028          (i) the identity of sellers operating upon the hotel property;
7029          (ii) the date that the commission is to begin depositing or transferring onsite revenue
7030     under Section 63N-2-503.5 for each seller operating upon the hotel property;
7031          (iii) the date that the commission is to stop depositing or transferring onsite revenue to
7032     the incentive fund under Section 63N-2-503.5 for each seller operating upon the hotel property;
7033     and

7034          (iv) the type of sales or use tax subject to the commission's deposit or transfer to the
7035     incentive fund under Section 63N-2-503.5;
7036          (b) for construction revenue and offsite revenue:
7037          (i) the amount of new tax revenue authorized under the agreement constituting
7038     construction revenue or offsite revenue;
7039          (ii) the location of the transactions generating the construction revenue and offsite
7040     revenue, as determined under Sections 59-12-211, 59-12-211.1, 59-12-212, 59-12-213,
7041     59-12-214, and 59-12-215; and
7042          (iii) the type of sales or use tax that constitutes the construction revenue of offsite
7043     revenue described in Subsection (7)(b)(ii); and
7044          (c) any other information the commission requires.
7045          Section 177. Section 63N-2-507 is amended to read:
7046          63N-2-507. Assigning convention incentive.
7047          (1) A host local government that enters into an agreement with the office may, by
7048     resolution, assign a convention incentive to a community [development and renewal]
7049     reinvestment agency, in accordance with rules adopted by the office.
7050          (2) A host local government that adopts a resolution assigning a convention incentive
7051     under Subsection (1) shall provide a copy of the resolution to the office.
7052          Section 178. Section 63N-2-508 is amended to read:
7053          63N-2-508. Payment of incremental property tax revenue.
7054          (1) As used in this section:
7055          (a) "Displaced tax increment" means the amount of tax increment that a county would
7056     have paid to the host agency, except for Subsection (2)(b), from tax increment revenue
7057     generated from the project area in which the hotel property is located.
7058          (b) "Secured obligations" means bonds or other obligations of a host agency for the
7059     payment of which the host agency has, before March 13, 2015, pledged tax increment
7060     generated from the project area in which the hotel property is located.
7061          (c) "Tax increment" means the same as that term is defined in Section 17C-1-102.
7062          (d) "Tax increment shortfall" means the amount of displaced tax increment a host
7063     agency needs to receive, in addition to any other tax increment the host agency receives from
7064     the project area in which the hotel property is located, to provide the host agency sufficient tax

7065     increment funds to be able to pay the debt service on its secured obligations.
7066          (2) (a) In accordance with rules adopted by the office and subject to Subsection (5), a
7067     county in which a qualified hotel is located shall retain incremental property tax revenue during
7068     the eligibility period.
7069          (b) The amount of incremental property tax revenue that a county retains under
7070     Subsection (2)(a) for a taxable year reduces by that amount any tax increment that the county
7071     would otherwise have paid to the host agency for that year, subject to Subsection (5).
7072          (c) For any taxable year in which a reduction of tax increment occurs as provided in
7073     Subsection (2)(b), the county shall provide the host agency a notice that:
7074          (i) states the amount of displaced tax increment for that year;
7075          (ii) states the number of years remaining in the eligibility period;
7076          (iii) provides a detailed accounting of how the displaced tax increment was used; and
7077          (iv) explains how the displaced tax increment will be used in the following taxable
7078     year.
7079          (3) Incremental property tax revenue may be used only for:
7080          (a) the purchase of or payment for, or reimbursement of a previous purchase of or
7081     payment for:
7082          (i) tangible personal property used in the construction of convention, exhibit, or
7083     meeting space on hotel property;
7084          (ii) tangible personal property that, upon the construction of hotel property, becomes
7085     affixed to hotel property as real property; or
7086          (iii) any labor and overhead costs associated with the construction described in
7087     Subsections (3)(a)(i) and (ii); and
7088          (b) public infrastructure.
7089          (4) (a) Incremental property tax:
7090          (i) is not tax increment; and
7091          (ii) is not subject to:
7092          (A) Title 17C, Limited Purpose Local Government Entities - Community
7093     [Development and Renewal Agencies] Reinvestment Agency Act; or
7094          (B) any other law governing tax increment, except as provided in Subsection (4)(c).
7095          (b) The payment and use of incremental property tax, as provided in this part, is not

7096     subject to the approval of any taxing entity, as defined in Section 17C-1-102.
7097          (c) Revenue from an increase in the taxable value of hotel property is considered to be
7098     a redevelopment adjustment for purposes of calculating the certified tax rate under Section
7099     59-2-924.
7100          (5) (a) Subject to Subsection (5)(b), a county may not spend the portion of incremental
7101     property tax revenue that is displaced tax increment until after 30 days after the county
7102     provides the notice required under Subsection (2)(c).
7103          (b) If, within 30 days after the county provides the notice required under Subsection
7104     (2)(c), a host agency provides written notice to the county that the host agency will experience
7105     a tax increment shortfall, the county shall, unless the host agency agrees otherwise, pay to the
7106     host agency displaced tax increment in the amount of the tax increment shortfall.
7107          Section 179. Section 67-1a-6.5 is amended to read:
7108          67-1a-6.5. Certification of local entity boundary actions -- Definitions -- Notice
7109     requirements -- Electronic copies -- Filing.
7110          (1) As used in this section:
7111          (a) "Applicable certificate" means:
7112          (i) for the impending incorporation of a city, town, local district, conservation district,
7113     or incorporation of a local district from a reorganized special service district, a certificate of
7114     incorporation;
7115          (ii) for the impending creation of a county, school district, special service district,
7116     community [development and renewal] reinvestment agency, or interlocal entity, a certificate
7117     of creation;
7118          (iii) for the impending annexation of territory to an existing local entity, a certificate of
7119     annexation;
7120          (iv) for the impending withdrawal or disconnection of territory from an existing local
7121     entity, a certificate of withdrawal or disconnection, respectively;
7122          (v) for the impending consolidation of multiple local entities, a certificate of
7123     consolidation;
7124          (vi) for the impending division of a local entity into multiple local entities, a certificate
7125     of division;
7126          (vii) for the impending adjustment of a common boundary between local entities, a

7127     certificate of boundary adjustment; and
7128          (viii) for the impending dissolution of a local entity, a certificate of dissolution.
7129          (b) "Approved final local entity plat" means a final local entity plat, as defined in
7130     Section 17-23-20, that has been approved under Section 17-23-20 as a final local entity plat by
7131     the county surveyor.
7132          (c) "Approving authority" has the same meaning as defined in Section 17-23-20.
7133          (d) "Boundary action" has the same meaning as defined in Section 17-23-20.
7134          (e) "Center" means the Automated Geographic Reference Center created under Section
7135     63F-1-506.
7136          (f) "Community [development and renewal] reinvestment agency" has the same
7137     meaning as defined in Section 17C-1-102.
7138          (g) "Conservation district" has the same meaning as defined in Section 17D-3-102.
7139          (h) "Interlocal entity" has the same meaning as defined in Section 11-13-103.
7140          (i) "Local district" has the same meaning as defined in Section 17B-1-102.
7141          (j) "Local entity" means a county, city, town, school district, local district, community
7142     [development and renewal] reinvestment agency, special service district, conservation district,
7143     or interlocal entity.
7144          (k) "Notice of an impending boundary action" means a written notice, as described in
7145     Subsection (3), that provides notice of an impending boundary action.
7146          (l) "Special service district" has the same meaning as defined in Section 17D-1-102.
7147          (2) Within 10 days after receiving a notice of an impending boundary action, the
7148     lieutenant governor shall:
7149          (a) (i) issue the applicable certificate, if:
7150          (A) the lieutenant governor determines that the notice of an impending boundary action
7151     meets the requirements of Subsection (3); and
7152          (B) except in the case of an impending local entity dissolution, the notice of an
7153     impending boundary action is accompanied by an approved final local entity plat;
7154          (ii) send the applicable certificate to the local entity's approving authority;
7155          (iii) return the original of the approved final local entity plat to the local entity's
7156     approving authority;
7157          (iv) send a copy of the applicable certificate and approved final local entity plat to:

7158          (A) the State Tax Commission;
7159          (B) the center; and
7160          (C) the county assessor, county surveyor, county auditor, and county attorney of each
7161     county in which the property depicted on the approved final local entity plat is located; and
7162          (v) send a copy of the applicable certificate to the state auditor, if the boundary action
7163     that is the subject of the applicable certificate is:
7164          (A) the incorporation or creation of a new local entity;
7165          (B) the consolidation of multiple local entities;
7166          (C) the division of a local entity into multiple local entities; or
7167          (D) the dissolution of a local entity; or
7168          (b) (i) send written notification to the approving authority that the lieutenant governor
7169     is unable to issue the applicable certificate, if:
7170          (A) the lieutenant governor determines that the notice of an impending boundary action
7171     does not meet the requirements of Subsection (3); or
7172          (B) the notice of an impending boundary action is:
7173          (I) not accompanied by an approved final local entity plat; or
7174          (II) accompanied by a plat or final local entity plat that has not been approved as a final
7175     local entity plat by the county surveyor under Section 17-23-20; and
7176          (ii) explain in the notification under Subsection (2)(b)(i) why the lieutenant governor is
7177     unable to issue the applicable certificate.
7178          (3) Each notice of an impending boundary action shall:
7179          (a) be directed to the lieutenant governor;
7180          (b) contain the name of the local entity or, in the case of an incorporation or creation,
7181     future local entity, whose boundary is affected or established by the boundary action;
7182          (c) describe the type of boundary action for which an applicable certificate is sought;
7183          (d) be accompanied by a letter from the Utah State Retirement Office, created under
7184     Section 49-11-201, to the approving authority that identifies the potential provisions under
7185     Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity shall comply
7186     with, related to the boundary action, if the boundary action is an impending incorporation or
7187     creation of a local entity that may result in the employment of personnel; and
7188          (e) (i) contain a statement, signed and verified by the approving authority, certifying

7189     that all requirements applicable to the boundary action have been met; or
7190          (ii) in the case of the dissolution of a municipality, be accompanied by a certified copy
7191     of the court order approving the dissolution of the municipality.
7192          (4) The lieutenant governor may require the approving authority to submit a paper or
7193     electronic copy of a notice of an impending boundary action and approved final local entity plat
7194     in conjunction with the filing of the original of those documents.
7195          (5) (a) The lieutenant governor shall:
7196          (i) keep, index, maintain, and make available to the public each notice of an impending
7197     boundary action, approved final local entity plat, applicable certificate, and other document that
7198     the lieutenant governor receives or generates under this section;
7199          (ii) make a copy of each document listed in Subsection (5)(a)(i) available on the
7200     Internet for 12 months after the lieutenant governor receives or generates the document;
7201          (iii) furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any
7202     person who requests a paper copy; and
7203          (iv) furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to
7204     any person who requests a certified copy.
7205          (b) The lieutenant governor may charge a reasonable fee for a paper copy or certified
7206     copy of a document that the lieutenant governor provides under this Subsection (5).
7207          Section 180. Section 72-1-208 is amended to read:
7208          72-1-208. Cooperation with counties, cities, towns, the federal government, and
7209     all state departments -- Inspection of work done by a public transit district.
7210          (1) The department shall cooperate with the counties, cities, towns, and community
7211     [development and renewal] reinvestment agencies in the construction, maintenance, and use of
7212     the highways and in all related matters, and may provide services to the counties, cities, towns,
7213     and community [development and renewal] reinvestment agencies on terms mutually agreed
7214     upon.
7215          (2) The department, with the approval of the governor, shall cooperate with the federal
7216     government in all federal-aid projects and with all state departments in all matters in
7217     connection with the use of the highways.
7218          (3) The department:
7219          (a) shall inspect all work done by a public transit district under Title 17B, Chapter 2a,

7220     Part 8, Public Transit District Act, relating to safety appliances and procedures; and
7221          (b) may make further additions or changes necessary for the purpose of safety to
7222     employees and the general public.
7223          Section 181. Repealer.
7224          This bill repeals:
7225          Section 17C-1-303, Summary of sale or other disposition of agency property --
7226     Publication of summary.
7227          Section 17C-3-301, Combining hearings.
7228          Section 17C-3-302, Continuing a hearing.
7229          Section 17C-3-303, Notice required for continued hearing.
7230          Section 17C-3-401, Agency to provide notice of hearings.
7231          Section 17C-3-402, Requirements for notice provided by agency.
7232          Section 17C-3-403, Additional requirements for notice of a plan hearing.
7233          Section 17C-3-404, Additional requirements for notice of a budget hearing.
7234          Section 17C-4-301, Continuing a plan hearing.
7235          Section 17C-4-302, Notice required for continued hearing.
7236          Section 17C-4-401, Agency required to provide notice of plan hearing.
7237          Section 17C-4-402, Requirements for notice provided by agency.






Legislative Review Note
Office of Legislative Research and General Counsel