1     
COMMUNITY REINVESTMENT AGENCIES REVISIONS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Douglas V. Sagers

5     
Senate Sponsor: Daniel W. Thatcher

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions in Title 17C, Limited Purpose Local Government Entities -
10     Community Reinvestment Agency Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies agency powers;
14          ▸     allows a community to enter into an interlocal agreement with an agency to exercise
15     agency power within the community, regardless of whether the community has
16     created an agency;
17          ▸     authorizes a public entity to dispose of or lease the public entity's property to an
18     agency for less than fair market value; and
19          ▸     makes technical and conforming changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          This bill provides a coordination clause.
24     Utah Code Sections Affected:
25     AMENDS:
26          17C-1-202, as last amended by Laws of Utah 2016, Chapter 350
27          17C-1-204, as last amended by Laws of Utah 2016, Chapter 350
28          17C-1-207, as last amended by Laws of Utah 2016, Chapter 350
29     Utah Code Sections Affected by Coordination Clause:
30          17C-1-207, as last amended by Laws of Utah 2016, Chapter 350
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 17C-1-202 is amended to read:
34          17C-1-202. Agency powers.
35          (1) An agency may:
36          (a) sue and be sued;
37          (b) enter into contracts generally;
38          (c) buy, obtain an option upon, or otherwise acquire any interest in real or personal
39     property;
40          (d) hold, sell, convey, grant, gift, or otherwise dispose of any interest in real or personal
41     property;
42          (e) own, hold, maintain, utilize, manage, or operate real or personal property, which
43     may include the use of agency funds or the collection of revenue;
44          [(e)] (f) enter into a lease agreement on real or personal property, either as lessee or
45     lessor;
46          [(f)] (g) provide for project area development as provided in this title;
47          [(g)] (h) receive and use agency funds as provided in this title;
48          [(h)] (i) if disposing of or leasing land, retain controls or establish restrictions and
49     covenants running with the land consistent with the project area plan;
50          [(i)] (j) accept financial or other assistance from any public or private source for the
51     agency's activities, powers, and duties, and expend any funds the agency receives for any
52     purpose described in this title;
53          [(j)] (k) borrow money or accept financial or other assistance from a public entity or
54     any other source for any of the purposes of this title and comply with any conditions of any
55     loan or assistance;
56          [(k)] (l) issue bonds to finance the undertaking of any project area development or for
57     any of the agency's other purposes, including:
58          (i) reimbursing an advance made by the agency or by a public entity to the agency;
59          (ii) refunding bonds to pay or retire bonds previously issued by the agency; and
60          (iii) refunding bonds to pay or retire bonds previously issued by the community that
61     created the agency for expenses associated with project area development;
62          [(l)] (m) pay an impact fee, exaction, or other fee imposed by a community in
63     connection with land development; or
64          [(m)] (n) transact other business and exercise all other powers described in this title.
65          (2) The establishment of controls or restrictions and covenants under Subsection
66     (1)[(h)](i) is a public purpose.
67          (3) An agency is not subject to Section 10-8-2 or 17-50-312.
68          Section 2. Section 17C-1-204 is amended to read:
69          17C-1-204. Project area development by an adjoining agency -- Requirements.
70          (1) (a) A community [that has not], regardless of whether the community has created
71     an agency, may enter into an interlocal agreement with an agency located in the same or an
72     abutting county that authorizes the agency to exercise all the powers granted to an agency under
73     this title within all or a portion of the community.
74          (b) The agency and the community shall adopt an interlocal agreement described in
75     Subsection (1)(a) by resolution.
76          (2) If an agency and a community enter into an interlocal agreement under Subsection
77     (1):
78          (a) the agency may act in all respects as if a project area within the community were
79     within the agency's boundaries;
80          (b) the board has all the rights, powers, and privileges with respect to a project area
81     within the community as if the project area were within the agency's boundaries;
82          (c) the agency may be paid project area funds to the same extent as if a project area
83     within the community were within the agency's boundaries; and
84          (d) the community legislative body shall adopt, by ordinance, each project area plan
85     within the community approved by the agency.
86          (3) If an agency's project area abuts another agency's project area, the agencies may
87     coordinate with each other in order to assist and cooperate in the planning, undertaking,
88     construction, or operation of project area development located within each agency's project
89     area.
90          (4) (a) As used in this Subsection (4):
91          (i) "County agency" means an agency that is created by a county.
92          (ii) "Industrial property" means private real property:
93          (A) over half of which is located within the boundary of a town, as defined in Section
94     10-1-104; and
95          (B) comprises some or all of an inactive industrial site.
96          (iii) "Perimeter portion" means the portion of an inactive industrial site that is:
97          (A) part of the inactive industrial site because the site lies within the perimeter
98     described in Section 17C-1-102; and
99          (B) located within the boundary of a city, as defined in Section 10-1-104.
100          (b) (i) Subject to Subsection (4)(b)(ii), a county agency may undertake project area
101     development on industrial property if the record property owner of the industrial property
102     submits a written request to the county agency to do so.
103          (ii) A county agency may not include a perimeter portion within a project area without
104     the approval of the city in which the perimeter portion is located.
105          (c) If a county agency undertakes project area development on industrial property:
106          (i) the county agency may act in all respects as if the project area that includes the
107     industrial property were within the county agency's boundary;
108          (ii) the board of the county agency has each right, power, and privilege with respect to
109     the project area as if the project area were within the county agency's boundary; and
110          (iii) the county agency may be paid project area funds to the same extent as if the
111     project area were within the county agency's boundary.
112          (d) A project area plan for a project on industrial property that is approved by the
113     county agency shall be adopted by ordinance of the legislative body of the county in which the
114     project area is located.
115          Section 3. Section 17C-1-207 is amended to read:
116          17C-1-207. Public entities may assist with project area development.
117          (1) In order to assist and cooperate in the planning, undertaking, construction, or
118     operation of project area development within an area in which the public entity is authorized to
119     act, a public entity may:
120          (a) (i) provide or cause to be furnished:
121          (A) parks, playgrounds, or other recreational facilities;
122          (B) community, educational, water, sewer, or drainage facilities; or
123          (C) any other works which the public entity is otherwise empowered to undertake;
124          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
125     replan streets, roads, roadways, alleys, sidewalks, or other places;
126          (iii) in any part of the project area:
127          (A) (I) plan or replan any property within the project area;
128          (II) plat or replat any property within the project area;
129          (III) vacate a plat;
130          (IV) amend a plat; or
131          (V) zone or rezone any property within the project area; and
132          (B) make any legal exceptions from building regulations and ordinances;
133          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
134     rights of any holder of the bonds;
135          (v) notwithstanding any law to the contrary, enter into an agreement for any period of
136     time with another public entity concerning action to be taken pursuant to any of the powers
137     granted in this title;
138          (vi) do anything necessary to aid or cooperate in the planning or implementation of the
139     project area development;
140          (vii) in connection with the project area plan, become obligated to the extent
141     authorized and funds have been made available to make required improvements or construct
142     required structures; and
143          (viii) lend, grant, or contribute funds to an agency for project area development or
144     proposed project area development, including assigning revenue or taxes in support of an
145     agency bond or obligation; and
146          (b) [15 days after posting public notice] for less than fair market value or for no
147     consideration, and subject to Subsection (2):
148          (i) purchase or otherwise acquire property [or] from an agency;
149          (ii) lease property from [the] an agency; [or]
150          [(ii)] (iii) sell, grant, convey, donate, or otherwise dispose of the public entity's
151     property to an agency; or
152          (iv) lease the public entity's property to [the] an agency.
153          [(2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
154     may extend over any period.]
155          [(3) A grant or contribution of funds from a public entity to an agency, or from an
156     agency under a project area plan or project area budget, is not subject to the requirements of
157     Section 10-8-2.]
158          (2) A public entity may provide project area development assistance described in
159     Subsection (1)(b) no sooner than 15 days after the day on which the public entity posts notice
160     of the assistance:
161          (a) on the Utah Public Notice Website described in Section 63F-1-701; and
162          (b) (i) on the public entity's public website; or
163          (ii) if the public entity does not have a public website, in a newspaper of general
164     circulation within the county in which the project area for which the entity provides the
165     assistance is located.
166          (3) The following are not subject to Sections 10-8-2 or 17-50-312:
167          (a) project area development assistance that a public entity provides under this section;
168     or
169          (b) a transfer of funds or property from an agency to a public entity.
170          Section 4. Coordinating H.B. 17 with H.B. 15 -- Substantive and technical
171     amendments.
172          If this H.B. 17 and H.B. 15, Community Reinvestment Agency Amendments, both pass
173     and become law, it is the intent of the Legislature that the Office of Legislative Research and
174     General Counsel shall prepare the Utah Code database for publication by amending Section
175     17C-1-207 to read:
176          "17C-1-207. Public entities may assist with project area development.
177          (1) In order to assist and cooperate in the planning, undertaking, construction, or
178     operation of project area development within an area in which the public entity is authorized to
179     act, a public entity may:
180          (a) (i) provide or cause to be furnished:
181          (A) parks, playgrounds, or other recreational facilities;
182          (B) community, educational, water, sewer, or drainage facilities; or
183          (C) any other works which the public entity is otherwise empowered to undertake;
184          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
185     replan streets, roads, roadways, alleys, sidewalks, or other places;
186          (iii) in any part of the project area:
187          (A) (I) plan or replan any property within the project area;
188          (II) plat or replat any property within the project area;
189          (III) vacate a plat;
190          (IV) amend a plat; or
191          (V) zone or rezone any property within the project area; and
192          (B) make any legal exceptions from building regulations and ordinances;
193          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
194     rights of any holder of the bonds;
195          (v) notwithstanding any law to the contrary, enter into an agreement for a period of
196     time with another public entity concerning action to be taken pursuant to any of the powers
197     granted in this title;
198          (vi) do anything necessary to aid or cooperate in the planning or implementation of the
199     project area development;
200          (vii) in connection with the project area plan, become obligated to the extent
201     authorized and funds have been made available to make required improvements or construct
202     required structures; and
203          (viii) lend, grant, or contribute funds to an agency for project area development or
204     proposed project area development, including assigning revenue or taxes in support of an
205     agency bond or obligation; and
206          (b) [15 days after posting public notice] for less than fair market value or for no
207     consideration, and subject to Subsection (3):
208          (i) purchase or otherwise acquire property [or] from an agency;
209          (ii) lease property from [the] an agency; [or]
210          [(ii)] (iii) sell, grant, convey, donate, or otherwise dispose of the public entity's
211     property to an agency; or
212          (iv) lease the public entity's property to [the] an agency.
213          [(2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
214     may extend over any period.]
215          [(3) A grant or contribution of funds from a public entity to an agency, or from an
216     agency under a project area plan or project area budget, is not subject to the requirements of
217     Section 10-8-2.]
218          (2) The following are not subject to Sections 10-8-2 or 17-50-312:
219          (a) project area development assistance that a public entity provides under this section;
220     or
221          (b) a transfer of funds or property from an agency to a public entity.
222          (3) A public entity may provide assistance described in Subsection (1)(b) no sooner
223     than 15 days after the day on which the public entity posts notice of the assistance on:
224          (a) the Utah Public Notice Website described in Section 63F-1-701; and
225          (b) the public entity's public website."
226