Representative Brad R. Wilson proposes the following substitute bill:


1     
MILITARY INSTALLATION DEVELOPMENT AUTHORITY

2     
AMENDMENTS

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jerry W. Stevenson

6     
House Sponsor: Brad R. Wilson

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to the military installation development authority.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides that the military installation development authority may provide for the
14     development of land associated with a military installation development authority
15     project area; and
16          ▸     defines the military installation development authority as a public agency for the
17     purposes of the Transportation Infrastructure Loan Fund.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          63H-1-102, as last amended by Laws of Utah 2015, Chapter 377
25          63H-1-201, as last amended by Laws of Utah 2016, Chapter 371

26          72-2-201, as last amended by Laws of Utah 2008, Chapter 396
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 63H-1-102 is amended to read:
30          63H-1-102. Definitions.
31          As used in this chapter:
32          (1) "Authority" means the Military Installation Development Authority, created under
33     Section 63H-1-201.
34          (2) "Base taxable value" means:
35          (a) for military land or other land that was exempt from a property tax at the time that a
36     project area was created that included the military land or other land, a taxable value of zero; or
37          (b) for private property that is included in a project area, the taxable value of the
38     property within any portion of the project area, as designated by board resolution, from which
39     the property tax allocation will be collected, as shown upon the assessment roll last equalized
40     before the year in which the authority issues a building permit for a building within that portion
41     of the project area.
42          (3) "Board" means the governing body of the authority created under Section
43     63H-1-301.
44          (4) (a) "Dedicated tax collections" means the property tax that remains after the
45     authority is paid the property tax allocation it is entitled to receive under Subsection
46     63H-1-501(1), for a property tax levied by:
47          (i) a county, including a district the county has established under Subsection 17-34-3(2)
48     to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
49     Areas; or
50          (ii) an included municipality.
51          (b) "Dedicated tax collections" does not include a county additional property tax or
52     multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602.
53          (5) (a) "Development" means an activity occurring on land within a project area that is
54     owned or operated by the military, the authority, another public entity, or a private entity or an
55     activity occurring on military land associated with a project area.
56          (b) "Development" includes the demolition, construction, reconstruction, modification,

57     expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
58     recreational amenity.
59          (6) "Development project" means a project to develop land within a project area.
60          (7) "Elected member" means a member of the authority board who:
61          (a) is a mayor or member of a legislative body appointed under Subsection
62     63H-1-302(2)(b); or
63          (b) (i) is appointed to the authority board under Subsection 63H-1-302(2)(a) or (3); and
64          (ii) concurrently serves in an elected state, county, or municipal office.
65          (8) "Included municipality" means a municipality, some or all of which is included
66     within a project area.
67          (9) (a) "Military" means a branch of the armed forces of the United States, including
68     the Utah National Guard.
69          (b) "Military" includes, in relation to property, property that is occupied by the military
70     and is owned by the government of the United States or the state.
71          (10) "Military Installation Development Authority energy tax" or "MIDA energy tax"
72     means the tax levied under Section 63H-1-204.
73          (11) "Military land" means land or a facility, including leased land or a leased facility,
74     that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
75     jurisdiction of the United States Department of Defense or the Utah National Guard.
76          (12) "Municipal energy tax" means a municipal energy sales and use tax under Title
77     10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
78          (13) "Municipal services revenue" means revenue that the authority:
79          (a) collects from the authority's:
80          (i) levy of a municipal energy tax;
81          (ii) levy of a MIDA energy tax;
82          (iii) levy of a telecommunications tax;
83          (iv) imposition of a transient room tax; and
84          (v) imposition of a resort communities tax;
85          (b) receives under Subsection 59-12-205(2)(b)(ii); and
86          (c) receives as dedicated tax collections.
87          (14) "Municipal tax" means a municipal energy tax, MIDA energy tax,

88     telecommunications tax, transient room tax, or resort communities tax.
89          (15) "Project area" means the land, including military land, whether consisting of a
90     single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
91     project area plan, where the development project set forth in the project area plan or draft
92     project area plan takes place or is proposed to take place.
93          (16) "Project area budget" means a multiyear projection of annual or cumulative
94     revenues and expenses and other fiscal matters pertaining to a project area that includes:
95          (a) the base taxable value of property in the project area;
96          (b) the projected property tax allocation expected to be generated within the project
97     area;
98          (c) the amount of the property tax allocation expected to be shared with other taxing
99     entities;
100          (d) the amount of the property tax allocation expected to be used to implement the
101     project area plan, including the estimated amount of the property tax allocation to be used for
102     land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
103     incentives to private and public entities;
104          (e) the property tax allocation expected to be used to cover the cost of administering
105     the project area plan;
106          (f) if the property tax allocation is to be collected at different times or from different
107     portions of the project area, or both:
108          (i) (A) the tax identification numbers of the parcels from which the property tax
109     allocation will be collected; or
110          (B) a legal description of the portion of the project area from which the property tax
111     allocation will be collected; and
112          (ii) an estimate of when other portions of the project area will become subject to
113     collection of the property tax allocation; and
114          (g) for property that the authority owns or leases and expects to sell or sublease, the
115     expected total cost of the property to the authority and the expected selling price or lease
116     payments.
117          (17) "Project area plan" means a written plan that, after its effective date, guides and
118     controls the development within a project area.

119          (18) (a) "Property tax" includes a privilege tax, except as described in Subsection
120     (18)(b), and each levy on an ad valorem basis on tangible or intangible personal or real
121     property.
122          (b) "Property tax" does not include a privilege tax on the taxable value attributable to a
123     portion of a facility leased to the military for a calendar year when:
124          (i) a lessee of military land has constructed a facility on the military land that is part of
125     a project area;
126          (ii) the lessee leases space in the facility to the military for the entire calendar year; and
127          (iii) the lease rate paid by the military for the space is $1 or less for the entire calendar
128     year, not including any common charges that are reimbursements for actual expenses.
129          (19) "Property tax allocation" means the difference between:
130          (a) the amount of property tax revenues generated each tax year by all taxing entities
131     from the area within a project area designated in the project area plan as the area from which
132     the property tax allocation is to be collected, using the current assessed value of the property;
133     and
134          (b) the amount of property tax revenues that would be generated from that same area
135     using the base taxable value of the property.
136          (20) "Public entity" means:
137          (a) the state, including each department or agency of the state; or
138          (b) a political subdivision of the state, including a county, city, town, school district,
139     local district, special service district, or interlocal cooperation entity.
140          (21) (a) "Publicly owned infrastructure and improvements" means infrastructure,
141     improvements, facilities, or buildings that benefit the public and are:
142          (i) publicly owned by the military, the authority, or another public entity;
143          (ii) owned by a utility; or
144          (iii) publicly maintained or operated by the military, the authority, or another public
145     entity.
146          (b) "Publicly owned infrastructure and improvements" includes:
147          (i) facilities, lines, or systems that provide water, chilled water, steam, sewer, storm
148     drainage, natural gas, electricity, or telecommunications; and
149          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking

150     facilities, and public transportation facilities.
151          (22) "Remaining municipal services revenue" means municipal services revenue that
152     the authority has not spent during its fiscal year for municipal services as provided in
153     Subsection 63H-1-503(1).
154          (23) "Resort communities tax" means a sales and use tax imposed under Section
155     59-12-401.
156          (24) "Taxable value" means the value of property as shown on the last equalized
157     assessment roll as certified by the county assessor.
158          (25) "Taxing entity" means a public entity that levies a tax on property within a project
159     area.
160          (26) "Telecommunications tax" means a telecommunications license tax under Title
161     10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
162          (27) "Transient room tax" means a tax under Section 59-12-352.
163          Section 2. Section 63H-1-201 is amended to read:
164          63H-1-201. Creation of military installation development authority -- Status and
165     powers of authority -- Limitation.
166          (1) There is created a military installation development authority.
167          (2) The authority is:
168          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
169     succession and statewide jurisdiction, whose purpose is to facilitate the development of
170     [military land in] land within a project area or on military land associated with a project area;
171          (b) a political subdivision of the state; and
172          (c) a public corporation, as defined in Section 63E-1-102.
173          (3) The authority may:
174          (a) as provided in this chapter, facilitate the development of land within one or more
175     project areas, including the ongoing operation of facilities within a project area, or
176     development of military land associated with a project area;
177          (b) sue and be sued;
178          (c) enter into contracts generally;
179          (d) buy, obtain an option upon, or otherwise acquire any interest in real or personal
180     property:

181          (i) in a project area; or
182          (ii) outside a project area for publicly owned infrastructure and improvements, if the
183     board considers the purchase, option, or other interest acquisition to be necessary for fulfilling
184     the authority's development objectives;
185          (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
186     personal property;
187          (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
188          (i) in a project area; or
189          (ii) outside a project area, if the board considers the lease to be necessary for fulfilling
190     the authority's development objectives;
191          (g) provide for the development of land within a project area or military land
192     associated with the project area under one or more contracts;
193          (h) exercise powers and perform functions under a contract, as authorized in the
194     contract;
195          (i) exercise exclusive police power within a project area to the same extent as though
196     the authority were a municipality, including the collection of regulatory fees;
197          (j) receive the property tax allocation and other taxes and fees as provided in this
198     chapter;
199          (k) accept financial or other assistance from any public or private source for the
200     authority's activities, powers, and duties, and expend any funds so received for any of the
201     purposes of this chapter;
202          (l) borrow money, contract with, or accept financial or other assistance from the federal
203     government, a public entity, or any other source for any of the purposes of this chapter and
204     comply with any conditions of the loan, contract, or assistance;
205          (m) issue bonds to finance the undertaking of any development objectives of the
206     authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
207     Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
208          (n) hire employees, including contract employees;
209          (o) transact other business and exercise all other powers provided for in this chapter;
210          (p) enter into a development agreement with a developer of land within a project area;
211          (q) enter into an agreement with a political subdivision of the state under which the

212     political subdivision provides one or more municipal services within a project area;
213          (r) enter into an agreement with a private contractor to provide one or more municipal
214     services within a project area;
215          (s) provide for or finance an energy efficiency upgrade, a renewable energy system, or
216     electric vehicle charging infrastructure as defined in Section 11-42-102, in accordance with
217     Title 11, Chapter 42, Assessment Area Act;
218          (t) exercise powers and perform functions that the authority is authorized by statute to
219     exercise or perform; and
220          (u) enter into an agreement with the federal government or an agency of the federal
221     government under which the federal government or agency:
222          (i) provides law enforcement services only to military land within a project area; and
223          (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
224     agency of the state or a political subdivision of the state.
225          (4) The authority may not itself provide law enforcement service or fire protection
226     service within a project area but may enter into an agreement for one or both of those services,
227     as provided in Subsection (3)(q).
228          Section 3. Section 72-2-201 is amended to read:
229          72-2-201. Definitions.
230          As used in this part:
231          (1) "Fund" means the Transportation Infrastructure Loan Fund created under Section
232     72-2-202.
233          (2) "Infrastructure assistance" means any use of fund money, except an infrastructure
234     loan, to provide financial assistance for transportation projects, including:
235          (a) capital reserves and other security for bond or debt instrument financing; or
236          (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
237     a public entity to finance transportation projects.
238          (3) "Infrastructure loan" means a loan of fund money to finance a transportation
239     project.
240          (4) "Public entity" means a state agency, county, municipality, local district, special
241     service district, [or] an intergovernmental entity organized under state law[.], or the military
242     installation development authority created in Section 63H-1-201.

243          (5) "Transportation project":
244          (a) means a project to improve a state or local highway; and
245          (b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
246     equipping, and fixturing.