1     
IMPACT FEE AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Walt Brooks

5     
Senate Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to impact fees.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies a provision relating to spending or encumbering impact fees; and
13          ▸     provides a process for a refund of unspent and unencumbered impact fees.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          11-36a-602, as enacted by Laws of Utah 2011, Chapter 47
21          11-36a-603, as enacted by Laws of Utah 2011, Chapter 47
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 11-36a-602 is amended to read:
25          11-36a-602. Expenditure of impact fees.
26          (1) A local political subdivision may expend impact fees only for a system
27     improvement:
28          (a) identified in the impact fee facilities plan; and
29          (b) for the specific public facility type for which the fee was collected.
30          (2) (a) Except as provided in Subsection (2)(b), a local political subdivision shall
31     expend or encumber [the] an impact [fees] fee collected with respect to a lot:
32          (i) for a permissible use; and
33          (ii) within six years [of their receipt.] after the impact fee with respect to that lot is
34     collected.
35          (b) A local political subdivision may hold the fees for longer than six years if it
36     identifies, in writing:
37          (i) an extraordinary and compelling reason why the fees should be held longer than six
38     years; and
39          (ii) an absolute date by which the fees will be expended.
40          Section 2. Section 11-36a-603 is amended to read:
41          11-36a-603. Refunds.
42          (1) A local political subdivision shall refund any impact fee paid by a developer, plus
43     interest earned, when:
44          [(1)] (a) the developer does not proceed with the development activity and has filed a
45     written request for a refund;
46          [(2)] (b) the fee has not been spent or encumbered; and
47          [(3)] (c) no impact has resulted.
48          (2) (a) As used in this Subsection (2):
49          (i) "Affected lot" means the lot or parcel with respect to which a local political
50     subdivision collected an impact fee that is subject to a refund under this Subsection (2).
51          (ii) "Claimant" means:
52          (A) the original owner; or
53          (B) another person who, under Subsection (2)(d), submits a timely notice of the
54     person's valid legal claim to an impact fee refund.
55          (iii) "Original owner" means the record owner of an affected lot at the time the local
56     political subdivision collected the impact fee.
57          (iv) "Unclaimed refund" means an impact fee that:
58          (A) is subject to refund under this Subsection (2); and
59          (B) the local political subdivision has not refunded after application of Subsections
60     (2)(b) and (c).
61          (b) If an impact fee is not spent or encumbered within the time specified in Subsection
62     11-36a-602(2), the local political subdivision shall, subject to Subsection (2)(c):
63          (i) refund the impact fee to:
64          (A) the original owner, if the original owner is the sole claimant; or
65          (B) to the claimants, as the claimants agree, if there are multiple claimants; or
66          (ii) interplead the impact fee refund to a court of competent jurisdiction for a
67     determination of the entitlement to the refund, if there are multiple claimants who fail to agree
68     on how the refund should be paid to the claimants.
69          (c) If the original owner's last known address is no longer valid at the time a local
70     political subdivision attempts under Subsection (2)(b) to refund an impact fee to the original
71     owner, the local political subdivision shall:
72          (i) post a notice on the local political subdivision's website, stating the local political
73     subdivision's intent to refund the impact fee and identifying the original owner;
74          (ii) maintain the notice on the website for a period of one year; and
75          (iii) disqualify the original owner as a claimant unless the original owner submits a
76     written request for the refund within one year after the first posting of the notice under
77     Subsection (2)(c)(i).
78          (d) (i) In order to be considered as a claimant for an impact fee refund under this
79     Subsection (2), a person, other than the original owner, shall submit a written notice of the
80     person's valid legal claim to the impact fee refund.
81          (ii) A notice under Subsection (2)(d)(i) shall:
82          (A) explain the person's valid legal claim to the refund; and
83          (B) be submitted to the local political subdivision no later than 30 days after expiration
84     of the time specified in Subsection 11-36a-602(2) for the impact fee that is the subject of the
85     refund.
86          (e) A local political subdivision:
87          (i) may retain an unclaimed refund; and
88          (ii) shall expend any unclaimed refund on capital facilities identified in the current
89     capital facilities plan for the type of public facility for which the impact fee was collected.