1     
COMMUNITY REINVESTMENT AGENCY MODIFICATIONS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kim F. Coleman

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Community Reinvestment Agency Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     removes provisions that prevented the creation of an economic development project
13     area after 2016;
14          ▸     allows an economic development project area to receive tax increment through an
15     interlocal agreement between a taxing entity and the agency;
16          ▸     addresses measurement of the project area funds collection period;
17          ▸     requires a community that creates an agency having a housing allocation from tax
18     increment to create an affordable housing plan;
19          ▸     allows an agency to use the agency's housing allocation to implement the affordable
20     housing plan;
21          ▸     requires a description of how an agency used the agency's housing allocation in the
22     agency's annual budget report;
23          ▸     imposes certain requirements on jobs that will be created for post-performance
24     distribution;
25          ▸     for urban renewal project areas, removes the option to reduce the agency's housing
26     allocation;
27          ▸     requires an agency to start distributing the agency's housing allocation held from

28     project areas created in the past; and
29          ▸     makes technical and conforming changes.
30     Money Appropriated in this Bill:
31          None
32     Other Special Clauses:
33          None
34     Utah Code Sections Affected:
35     AMENDS:
36          17C-1-102, as last amended by Laws of Utah 2018, Chapter 364
37          17C-1-102.5, as enacted by Laws of Utah 2016, Chapter 350
38          17C-1-401.5, as last amended by Laws of Utah 2018, Chapter 364
39          17C-1-402, as last amended by Laws of Utah 2018, Chapter 364
40          17C-1-405, as last amended by Laws of Utah 2016, Chapter 350
41          17C-1-407, as last amended by Laws of Utah 2016, Chapter 350
42          17C-1-412, as last amended by Laws of Utah 2018, Chapter 312
43          17C-1-603, as last amended by Laws of Utah 2018, Chapter 364
44          17C-1-806, as last amended by Laws of Utah 2018, Chapter 364
45          17C-2-203, as last amended by Laws of Utah 2016, Chapter 350
46          17C-3-103, as last amended by Laws of Utah 2016, Chapter 350
47          17C-3-109, as last amended by Laws of Utah 2018, Chapter 364
48          17C-3-201, as last amended by Laws of Utah 2016, Chapter 350
49          17C-3-203, as last amended by Laws of Utah 2016, Chapter 350
50          17C-3-205, as last amended by Laws of Utah 2016, Chapter 350
51          17C-5-307, as enacted by Laws of Utah 2016, Chapter 350
52     REPEALS:
53          17C-3-101.2, as enacted by Laws of Utah 2016, Chapter 350
54     

55     Be it enacted by the Legislature of the state of Utah:
56          Section 1. Section 17C-1-102 is amended to read:
57          17C-1-102. Definitions.
58          As used in this title:

59          (1) "Active project area" means a project area that has not been dissolved in accordance
60     with Section 17C-1-702.
61          (2) "Adjusted tax increment" means the percentage of tax increment, if less than 100%,
62     that an agency is authorized to receive :
63          (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax
64     increment under Subsection 17C-1-403(3);
65          (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
66     increment under Section 17C-1-406;
67          (c) under a project area budget approved by a taxing entity committee; or
68          (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
69     tax increment.
70          (3) "Affordable housing" means housing owned or occupied by a low or moderate
71     income family, as determined by resolution of the agency.
72          (4) "Agency" or "community reinvestment agency" means a separate body corporate
73     and politic, created under Section 17C-1-201.5 or as a redevelopment agency or community
74     development and renewal agency under previous law:
75          (a) that is a political subdivision of the state;
76          (b) that is created to undertake or promote project area development as provided in this
77     title; and
78          (c) whose geographic boundaries are coterminous with:
79          (i) for an agency created by a county, the unincorporated area of the county; and
80          (ii) for an agency created by a municipality, the boundaries of the municipality.
81          (5) "Agency funds" means money that an agency collects or receives for agency
82     operations, implementing a project area plan, or other agency purposes, including:
83          (a) project area funds;
84          (b) income, proceeds, revenue, or property derived from or held in connection with the
85     agency's undertaking and implementation of project area development; or
86          (c) a contribution, loan, grant, or other financial assistance from any public or private
87     source.
88          (6) "Annual income" means the same as that term is defined in regulations of the
89     United States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as

90     amended or as superseded by replacement regulations.
91          (7) "Assessment roll" means the same as that term is defined in Section 59-2-102.
92          (8) "Base taxable value" means, unless otherwise adjusted in accordance with
93     provisions of this title, a property's taxable value as shown upon the assessment roll last
94     equalized during the base year.
95          (9) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year
96     during which the assessment roll is last equalized:
97          (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,
98     before the project area plan's effective date;
99          (b) for a post-June 30, 1993, urban renewal or economic development project area
100     plan, or a community reinvestment project area plan that is subject to a taxing entity
101     committee:
102          (i) before the date on which the taxing entity committee approves the project area
103     budget; or
104          (ii) if taxing entity committee approval is not required for the project area budget,
105     before the date on which the community legislative body adopts the project area plan;
106          (c) for a project on an inactive airport site, after the later of:
107          (i) the date on which the inactive airport site is sold for remediation and development;
108     or
109          (ii) the date on which the airport that operated on the inactive airport site ceased
110     operations; or
111          (d) for a community development [project area plan or a], economic development, or
112     community reinvestment project area plan that is subject to an interlocal agreement, as
113     described in the interlocal agreement.
114          (10) "Basic levy" means the portion of a school district's tax levy constituting the
115     minimum basic levy under Section 59-2-902.
116          (11) "Blight" or "blighted" means the condition of an area that meets the requirements
117     described in Subsection 17C-2-303(1) for an urban renewal project area or Section 17C-5-405
118     for a community reinvestment project area.
119          (12) "Blight hearing" means a public hearing regarding whether blight exists within a
120     proposed:

121          (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
122     17C-2-302; or
123          (b) community reinvestment project area under Section 17C-5-405.
124          (13) "Blight study" means a study to determine whether blight exists within a survey
125     area as described in Section 17C-2-301 for an urban renewal project area or Section 17C-5-403
126     for a community reinvestment project area.
127          (14) "Board" means the governing body of an agency, as described in Section
128     17C-1-203.
129          (15) "Budget hearing" means the public hearing on a proposed project area budget
130     required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget,
131     Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection
132     17C-5-302(2)(e) for a community reinvestment project area budget.
133          (16) "Closed military base" means land within a former military base that the Defense
134     Base Closure and Realignment Commission has voted to close or realign when that action has
135     been sustained by the president of the United States and Congress.
136          (17) "Combined incremental value" means the combined total of all incremental values
137     from all project areas, except project areas that contain some or all of a military installation or
138     inactive industrial site, within the agency's boundaries under project area plans and project area
139     budgets at the time that a project area budget for a new project area is being considered.
140          (18) "Community" means a county or municipality.
141          (19) "Community development project area plan" means a project area plan adopted
142     under Chapter 4, Part 1, Community Development Project Area Plan.
143          (20) "Community legislative body" means the legislative body of the community that
144     created the agency.
145          (21) "Community reinvestment project area plan" means a project area plan adopted
146     under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
147          (22) "Contest" means to file a written complaint in the district court of the county in
148     which the agency is located.
149          (23) "Economic development project area plan" means a project area plan adopted
150     under Chapter 3, Part 1, Economic Development Project Area Plan.
151          (24) "Fair share ratio" means the ratio derived by:

152          (a) for a municipality, comparing the percentage of all housing units within the
153     municipality that are publicly subsidized income targeted housing units to the percentage of all
154     housing units within the county in which the municipality is located that are publicly
155     subsidized income targeted housing units; or
156          (b) for the unincorporated part of a county, comparing the percentage of all housing
157     units within the unincorporated county that are publicly subsidized income targeted housing
158     units to the percentage of all housing units within the whole county that are publicly subsidized
159     income targeted housing units.
160          (25) "Family" means the same as that term is defined in regulations of the United
161     States Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended
162     or as superseded by replacement regulations.
163          (26) "Greenfield" means land not developed beyond agricultural, range, or forestry use.
164          (27) "Hazardous waste" means any substance defined, regulated, or listed as a
165     hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
166     or toxic substance, or identified as hazardous to human health or the environment, under state
167     or federal law or regulation.
168          (28) "Housing allocation" means project area funds allocated for housing under Section
169     17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
170          (29) "Housing fund" means a fund created by an agency for purposes described in
171     Section 17C-1-411 or 17C-1-412 that is comprised of:
172          (a) project area funds allocated for the purposes described in Section 17C-1-411; or
173          (b) an agency's housing allocation.
174          (30) (a) "Inactive airport site" means land that:
175          (i) consists of at least 100 acres;
176          (ii) is occupied by an airport:
177          (A) (I) that is no longer in operation as an airport; or
178          (II) (Aa) that is scheduled to be decommissioned; and
179          (Bb) for which a replacement commercial service airport is under construction; and
180          (B) that is owned or was formerly owned and operated by a public entity; and
181          (iii) requires remediation because:
182          (A) of the presence of hazardous waste or solid waste; or

183          (B) the site lacks sufficient public infrastructure and facilities, including public roads,
184     electric service, water system, and sewer system, needed to support development of the site.
185          (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
186     described in Subsection (30)(a).
187          (31) (a) "Inactive industrial site" means land that:
188          (i) consists of at least 1,000 acres;
189          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
190     facility; and
191          (iii) requires remediation because of the presence of hazardous waste or solid waste.
192          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
193     described in Subsection (31)(a).
194          (32) "Income targeted housing" means housing that is owned or occupied by a family
195     whose annual income is at or below 80% of the median annual income for a family within the
196     county in which the housing is located.
197          (33) "Incremental value" means a figure derived by multiplying the marginal value of
198     the property located within a project area on which tax increment is collected by a number that
199     represents the adjusted tax increment from that project area that is paid to the agency.
200          (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
201     established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
202          (35) (a) " Local government building" means a building owned and operated by a
203     community for the primary purpose of providing one or more primary community functions,
204     including:
205          (i) a fire station;
206          (ii) a police station;
207          (iii) a city hall; or
208          (iv) a court or other judicial building.
209          (b) " Local government building" does not include a building the primary purpose of
210     which is cultural or recreational in nature.
211          (36) "Marginal value" means the difference between actual taxable value and base
212     taxable value.
213          (37) "Military installation project area" means a project area or a portion of a project

214     area located within a federal military installation ordered closed by the federal Defense Base
215     Realignment and Closure Commission.
216          (38) "Municipality" means a city, town, or metro township as defined in Section
217     10-2a-403.
218          (39) "Participant" means one or more persons that enter into a participation agreement
219     with an agency.
220          (40) "Participation agreement" means a written agreement between a person and an
221     agency that:
222          (a) includes a description of:
223          (i) the project area development that the person will undertake;
224          (ii) the amount of project area funds the person may receive; and
225          (iii) the terms and conditions under which the person may receive project area funds;
226     and
227          (b) is approved by resolution of the board.
228          (41) "Plan hearing" means the public hearing on a proposed project area plan required
229     under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection
230     17C-3-102(1)(d) for an economic development project area plan, Subsection 17C-4-102(1)(d)
231     for a community development project area plan, or Subsection 17C-5-104(3)(e) for a
232     community reinvestment project area plan.
233          (42) "Post-June 30, 1993, project area plan" means a project area plan adopted on or
234     after July 1, 1993, and before May 10, 2016, whether or not amended subsequent to the project
235     area plan's adoption.
236          (43) "Pre-July 1, 1993, project area plan" means a project area plan adopted before July
237     1, 1993, whether or not amended subsequent to the project area plan's adoption.
238          (44) "Private," with respect to real property, means property not owned by a public
239     entity or any other governmental entity.
240          (45) "Project area" means the geographic area described in a project area plan within
241     which the project area development described in the project area plan takes place or is
242     proposed to take place.
243          (46) "Project area budget" means a multiyear projection of annual or cumulative
244     revenues and expenses and other fiscal matters pertaining to a project area prepared in

245     accordance with:
246          (a) for an urban renewal project area, Section 17C-2-202;
247          (b) for an economic development project area, Section 17C-3-202;
248          (c) for a community development project area, Section 17C-4-204; or
249          (d) for a community reinvestment project area, Section 17C-5-302.
250          (47) "Project area development" means activity within a project area that, as
251     determined by the board, encourages, promotes, or provides development or redevelopment for
252     the purpose of implementing a project area plan, including:
253          (a) promoting, creating, or retaining public or private jobs within the state or a
254     community;
255          (b) providing office, manufacturing, warehousing, distribution, parking, or other
256     facilities or improvements;
257          (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
258     remediating environmental issues;
259          (d) providing residential, commercial, industrial, public, or other structures or spaces,
260     including recreational and other facilities incidental or appurtenant to the structures or spaces;
261          (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
262     existing structures;
263          (f) providing open space, including streets or other public grounds or space around
264     buildings;
265          (g) providing public or private buildings, infrastructure, structures, or improvements;
266          (h) relocating a business;
267          (i) improving public or private recreation areas or other public grounds;
268          (j) eliminating blight or the causes of blight;
269          (k) redevelopment as defined under the law in effect before May 1, 2006; or
270          (l) any activity described in this Subsection (47) outside of a project area that the board
271     determines to be a benefit to the project area.
272          (48) "Project area funds" means tax increment or sales and use tax revenue that an
273     agency receives under a project area budget adopted by a taxing entity committee or an
274     interlocal agreement.
275          (49) "Project area funds collection period" means the period of time that:

276          (a) begins the day on which the first payment of project area funds is distributed to an
277     agency under a project area budget approved by a taxing entity committee or an interlocal
278     agreement; and
279          (b) ends the day on which the last payment of project area funds is distributed to an
280     agency under a project area budget approved by a taxing entity committee or an interlocal
281     agreement.
282          (50) "Project area plan" means an urban renewal project area plan, an economic
283     development project area plan, a community development project area plan, or a community
284     reinvestment project area plan that, after the project area plan's effective date, guides and
285     controls the project area development.
286          (51) (a) "Property tax" means each levy on an ad valorem basis on tangible or
287     intangible personal or real property.
288          (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
289     Tax.
290          (52) "Public entity" means:
291          (a) the United States, including an agency of the United States;
292          (b) the state, including any of the state's departments or agencies; or
293          (c) a political subdivision of the state, including a county, municipality, school district,
294     local district, special service district, community reinvestment agency, or interlocal cooperation
295     entity.
296          (53) "Publicly owned infrastructure and improvements" means water, sewer, storm
297     drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,
298     roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, or
299     other facilities, infrastructure, and improvements benefitting the public and to be publicly
300     owned or publicly maintained or operated.
301          (54) "Record property owner" or "record owner of property" means the owner of real
302     property, as shown on the records of the county in which the property is located, to whom the
303     property's tax notice is sent.
304          (55) "Sales and use tax revenue" means revenue that is:
305          (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act;
306     and

307          (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.
308          (56) "Superfund site":
309          (a) means an area included in the National Priorities List under the Comprehensive
310     Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
311          (b) includes an area formerly included in the National Priorities List, as described in
312     Subsection (56)(a), but removed from the list following remediation that leaves on site the
313     waste that caused the area to be included in the National Priorities List.
314          (57) "Survey area" means a geographic area designated for study by a survey area
315     resolution to determine whether:
316          (a) one or more project areas within the survey area are feasible; or
317          (b) blight exists within the survey area.
318          (58) "Survey area resolution" means a resolution adopted by a board that designates a
319     survey area.
320          (59) "Taxable value" means:
321          (a) the taxable value of all real property a county assessor assesses in accordance with
322     Title 59, Chapter 2, Part 3, County Assessment, for the current year;
323          (b) the taxable value of all real and personal property the commission assesses in
324     accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year; and
325          (c) the year end taxable value of all personal property a county assessor assesses in
326     accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the prior year's
327     tax rolls of the taxing entity.
328          (60) (a) "Tax increment" means the difference between:
329          (i) the amount of property tax revenue generated each tax year by a taxing entity from
330     the area within a project area designated in the project area plan as the area from which tax
331     increment is to be collected, using the current assessed value of the property; and
332          (ii) the amount of property tax revenue that would be generated from that same area
333     using the base taxable value of the property.
334          (b) "Tax increment" does not include taxes levied and collected under Section
335     59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:
336          (i) the project area plan was adopted before May 4, 1993, whether or not the project
337     area plan was subsequently amended; and

338          (ii) the taxes were pledged to support bond indebtedness or other contractual
339     obligations of the agency.
340          (61) "Taxing entity" means a public entity that:
341          (a) levies a tax on property located within a project area; or
342          (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
343          (62) "Taxing entity committee" means a committee representing the interests of taxing
344     entities, created in accordance with Section 17C-1-402.
345          (63) "Unincorporated" means not within a municipality.
346          (64) "Urban renewal project area plan" means a project area plan adopted under
347     Chapter 2, Part 1, Urban Renewal Project Area Plan.
348          Section 2. Section 17C-1-102.5 is amended to read:
349          17C-1-102.5. Project area created on or after May 10, 2016.
350          Beginning on May 10, 2016, an agency:
351          (1) may create:
352          (a) an economic development project area under Chapter 3, Economic Development; or
353          (b) a community reinvestment project area under Chapter 5, Community Reinvestment;
354          (2) except as provided in Subsection (3), may not create:
355          (a) an urban renewal project area under Chapter 2, Urban Renewal; or
356          [(b) an economic development project area under Chapter 3, Economic Development;
357     or]
358          [(c)] (b) a community development project area under Chapter 4, Community
359     Development; and
360          (3) may create an urban renewal project area[, an economic development project area,]
361     or a community development project area if:
362          (a) before April 1, 2016, the agency adopts a resolution in accordance with:
363          (i) Section 17C-2-101.5 for an urban renewal project area; or
364          [(ii) Section 17C-3-101.5 for an economic development project area; or]
365          [(iii)] (ii) Section 17C-4-101.5 for a community development project area; and
366          (b) the urban renewal project area[, economic development project area,] or community
367     development project area is effective before September 1, 2016.
368          Section 3. Section 17C-1-401.5 is amended to read:

369          17C-1-401.5. Agency receipt and use of project area funds -- Distribution of
370     project area funds.
371          (1) An agency may receive and use project area funds in accordance with this title.
372          (2) (a) A county that collects property tax on property located within a project area
373     shall, in accordance with Section 59-2-1365, distribute to an agency any tax increment that the
374     agency is authorized to receive.
375          (b) Tax increment distributed to an agency in accordance with Subsection (2)(a) is not
376     revenue of the taxing entity.
377          (c) For an economic development project area plan that an agency adopts after May 9,
378     2019, the county in which the agency is located shall withhold tax increment that the agency is
379     authorized to receive from the project area until the agency provides the county evidence that
380     jobs have been created in accordance with Subsection 17C-3-103(3).
381          (3) (a) The project area funds collection period shall be measured:
382          (i) for a pre-July 1, 1993, project area plan, from the first tax year regarding which the
383     agency accepts tax increment from the project area;
384          (ii) for a post-June 30, 1993, urban renewal or economic development project area
385     plan:
386          (A) with respect to tax increment, from the first tax year for which the agency receives
387     tax increment under the project area budget; or
388          (B) with respect to sales and use tax revenue, as indicated in the interlocal agreement
389     between the agency and the taxing entity that authorizes the agency to receive all or a portion
390     of the taxing entity's sales and use tax revenue;
391          (iii) for a community development project area plan, as indicated in the resolution or
392     interlocal agreement of a taxing entity that authorizes the agency to receive the taxing entity's
393     project area funds;
394          (iv) for a community reinvestment project area plan that is subject to a taxing entity
395     committee:
396          (A) with respect to tax increment, from the first tax year for which the agency receives
397     tax increment under the project area budget; or
398          (B) with respect to sales and use tax revenue, in accordance with the interlocal
399     agreement between the agency and the taxing entity that authorizes the agency to receive all or

400     a portion of the taxing entity's sales and use tax revenue; [or]
401          (v) for a community reinvestment project area plan that is subject to an interlocal
402     agreement, in accordance with the interlocal agreement between the agency and the taxing
403     entity that authorizes the agency to receive the taxing entity's project area funds[.]; or
404          (vi) for an economic development project area plan that an agency adopts after May 10,
405     2016, in accordance with the project area budget.
406          (b) Unless otherwise provided in a project area budget that is approved by a taxing
407     entity committee, or in an interlocal agreement adopted by a taxing entity, tax increment may
408     not be paid to an agency for a tax year before the tax year following:
409          (i) for an urban renewal project area plan, an economic development project area plan,
410     or a community reinvestment project area plan that is subject to a taxing entity committee, the
411     effective date of the project area plan; and
412          (ii) for a community development [project area plan or a], economic development, or
413     community reinvestment project area plan that is subject to an interlocal agreement, the
414     effective date of the interlocal agreement that authorizes the agency to receive tax increment.
415          (4) With respect to a community development project area plan or a community
416     reinvestment project area plan that is subject to an interlocal agreement:
417          (a) a taxing entity may, through interlocal agreement, authorize an agency to be paid
418     any or all of the taxing entity's project area funds for any period of time; and
419          (b) the interlocal agreement authorizing the agency to be paid project area funds shall
420     specify:
421          (i) the base taxable value of the project area; and
422          (ii) the method of calculating the amount of project area funds to be paid to the agency.
423          (5) (a) (i) The boundaries of one project area may overlap and include the boundaries
424     of another project area.
425          (ii) If a taxing entity committee is required to approve the project area budget of an
426     overlapping project area described in Subsection (5)(a)(i), the agency shall, before the first
427     meeting of the taxing entity committee at which the project area budget will be considered,
428     inform each taxing entity of the location of the overlapping boundaries.
429          (b) (i) Before an agency may receive tax increment from the newly created overlapping
430     portion of a project area, the agency shall inform the county auditor regarding the respective

431     amount of tax increment that the agency is authorized to receive from the overlapping portion
432     of each of the project areas.
433          (ii) The combined amount of tax increment described in Subsection (5)(b)(i) may not
434     exceed 100% of the tax increment generated from a property located within the overlapping
435     boundaries.
436          (c) Nothing in this Subsection (5) gives an agency a right to receive project area funds
437     that the agency is not otherwise authorized to receive under this title.
438          (d) The collection of project area funds from an overlapping project area described in
439     Subsection (5)(a)(i) does not affect an agency's use of project area funds within the other
440     overlapping project area.
441          (6) With the written consent of a taxing entity, an agency may be paid tax increment,
442     from the taxing entity's property tax revenue only, in a higher percentage or for a longer period
443     of time, or both, than otherwise authorized under this title.
444          (7) Subject to Section 17C-1-407, an agency is authorized to receive tax increment as
445     described in:
446          (a) for a pre-July 1, 1993, project area plan, Section 17C-1-403;
447          (b) for a post-June 30, 1993, project area plan:
448          (i) Section 17C-1-404 under a project area budget adopted by the agency in accordance
449     with this title;
450          (ii) a project area budget approved by the taxing entity committee and adopted by the
451     agency in accordance with this title; or
452          (iii) Section 17C-1-406;
453          (c) a resolution or interlocal agreement entered into under Section 17C-2-207,
454     17C-3-206, 17C-4-201, or 17C-4-202;
455          (d) for a community reinvestment project area plan that is subject to a taxing entity
456     committee, a project area budget approved by the taxing entity committee and adopted by the
457     agency in accordance with this title; [or]
458          (e) for a community reinvestment project area plan that is subject to an interlocal
459     agreement, an interlocal agreement entered into under Section 17C-5-204[.]; or
460          (f) for an economic development project area plan that an agency adopts after May 10,
461     2016, Chapter 3, Economic Development.

462          Section 4. Section 17C-1-402 is amended to read:
463          17C-1-402. Taxing entity committee.
464          (1) The provisions of this section apply to a taxing entity committee that is created by
465     an agency for:
466          (a) a post-June 30, 1993, urban renewal project area plan [or economic development
467     project area plan];
468          (b) any other project area plan adopted before May 10, 2016, for which the agency
469     created a taxing entity committee; [and]
470          (c) an economic development project area plan; and
471          [(c)] (d) a community reinvestment project area plan that is subject to a taxing entity
472     committee.
473          (2) (a) (i) Each taxing entity committee shall be composed of:
474          (A) two school district representatives appointed in accordance with Subsection
475     (2)(a)(ii);
476          (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
477     appointed by resolution of the legislative body of the county in which the agency is located; or
478          (II) in a county of the first class, one representative appointed by the county executive
479     and one representative appointed by the legislative body of the county in which the agency is
480     located;
481          (C) if the agency is created by a municipality, two representatives appointed by
482     resolution of the legislative body of the municipality;
483          (D) one representative appointed by the State Board of Education; and
484          (E) one representative selected by majority vote of the legislative bodies or governing
485     boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
486     represent the interests of those taxing entities on the taxing entity committee.
487          (ii) (A) If the agency boundaries include only one school district, that school district
488     shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
489          (B) If the agency boundaries include more than one school district, those school
490     districts shall jointly appoint the two school district representatives under Subsection
491     (2)(a)(i)(A).
492          (b) (i) Each taxing entity committee representative described in Subsection (2)(a) shall

493     be appointed within 30 days after the day on which the agency provides notice of the creation
494     of the taxing entity committee.
495          (ii) If a representative is not appointed within the time required under Subsection
496     (2)(b)(i), the board may appoint an individual to serve on the taxing entity committee in the
497     place of the missing representative until that representative is appointed.
498          (c) (i) A taxing entity committee representative may be appointed for a set term or
499     period of time, as determined by the appointing authority under Subsection (2)(a)(i).
500          (ii) Each taxing entity committee representative shall serve until a successor is
501     appointed and qualified.
502          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
503     an initial appointment or an appointment to replace an already serving representative, the
504     appointing authority shall:
505          (A) notify the agency in writing of the name and address of the newly appointed
506     representative; and
507          (B) provide the agency a copy of the resolution making the appointment or, if the
508     appointment is not made by resolution, other evidence of the appointment.
509          (ii) Each appointing authority of a taxing entity committee representative under
510     Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
511     representative appointed by that appointing authority.
512          (3) At a taxing entity committee's first meeting, the taxing entity committee shall adopt
513     an organizing resolution that:
514          (a) designates a chair and a secretary of the taxing entity committee; and
515          (b) if the taxing entity committee considers it appropriate, governs the use of electronic
516     meetings under Section 52-4-207.
517          (4) (a) A taxing entity committee represents all taxing entities regarding:
518          (i) an urban renewal project area plan;
519          (ii) an economic development project area plan that is subject to a taxing entity
520     committee; or
521          (iii) a community reinvestment project area plan that is subject to a taxing entity
522     committee.
523          (b) A taxing entity committee may:

524          (i) cast votes that are binding on all taxing entities;
525          (ii) negotiate with the agency concerning a proposed project area plan;
526          (iii) approve or disapprove:
527          (A) an urban renewal project area budget as described in Section 17C-2-204;
528          (B) for an economic development project area plan that is subject to a taxing entity
529     committee, an economic development project area budget as described in Section 17C-3-203;
530     or
531          (C) for a community reinvestment project area plan that is subject to a taxing entity
532     committee, a community reinvestment project area budget as described in Section 17C-5-302;
533          (iv) approve or disapprove an amendment to a project area budget as described in
534     Section 17C-2-206, 17C-3-205, or 17C-5-306;
535          (v) approve an exception to the limits on the value and size of a project area imposed
536     under this title;
537          (vi) approve:
538          (A) an exception to the percentage of tax increment to be paid to the agency;
539          (B) except for a project area funds collection period that is approved by an interlocal
540     agreement, each project area funds collection period; and
541          (C) an exception to the requirement for an urban renewal project area budget, an
542     economic development project area budget, or a community reinvestment project area budget
543     to include a maximum cumulative dollar amount of tax increment that the agency may receive;
544          (vii) approve the use of tax increment for publicly owned infrastructure and
545     improvements outside of a project area that the agency and community legislative body
546     determine to be of benefit to the project area, as described in Subsection
547     17C-1-409(1)(a)(iii)(D);
548          (viii) waive the restrictions described in Subsection 17C-2-202(1);
549          (ix) subject to Subsection (4)(c), designate the base taxable value for a project area
550     budget; and
551          (x) give other taxing entity committee approval or consent required or allowed under
552     this title.
553          (c) (i) Except as provided in Subsection (4)(c)(ii), the base year may not be a year that
554     is earlier than five years before the beginning of a project area funds collection period.

555          (ii) The taxing entity committee may approve a base year that is earlier than the year
556     described in Subsection (4)(c)(i).
557          (5) A quorum of a taxing entity committee consists of:
558          (a) if the project area is located within a municipality, five members; or
559          (b) if the project area is not located within a municipality, four members.
560          (6) Taxing entity committee approval, consent, or other action requires:
561          (a) the affirmative vote of a majority of all members present at a taxing entity
562     committee meeting:
563          (i) at which a quorum is present; and
564          (ii) considering an action relating to a project area budget for, or approval of a finding
565     of blight within, a project area or proposed project area that contains:
566          (A) an inactive industrial site;
567          (B) an inactive airport site; or
568          (C) a closed military base; or
569          (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
570     two-thirds of all members present at a taxing entity committee meeting at which a quorum is
571     present.
572          (7) (a) An agency may call a meeting of the taxing entity committee by sending written
573     notice to the members of the taxing entity committee at least 10 days before the date of the
574     meeting.
575          (b) Each notice under Subsection (7)(a) shall be accompanied by:
576          (i) the proposed agenda for the taxing entity committee meeting; and
577          (ii) if not previously provided and if the documents exist and are to be considered at
578     the meeting:
579          (A) the project area plan or proposed project area plan;
580          (B) the project area budget or proposed project area budget;
581          (C) the analysis required under Subsection 17C-2-103(2), 17C-3-103(2), or
582     17C-5-105(12);
583          (D) the blight study;
584          (E) the agency's resolution making a finding of blight under Subsection
585     17C-2-102(1)(a)(ii)(B) or Subsection 17C-5-402(2)(c)(ii); and

586          (F) other documents to be considered by the taxing entity committee at the meeting.
587          (c) (i) An agency may not schedule a taxing entity committee meeting on a day on
588     which the Legislature is in session.
589          (ii) Notwithstanding Subsection (7)(c)(i), a taxing entity committee may, by unanimous
590     consent, waive the scheduling restriction described in Subsection (7)(c)(i).
591          (8) (a) A taxing entity committee may not vote on a proposed project area budget or
592     proposed amendment to a project area budget at the first meeting at which the proposed project
593     area budget or amendment is considered unless all members of the taxing entity committee
594     present at the meeting consent.
595          (b) A second taxing entity committee meeting to consider a proposed project area
596     budget or a proposed amendment to a project area budget may not be held within 14 days after
597     the first meeting unless all members of the taxing entity committee present at the first meeting
598     consent.
599          (9) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
600     Public Meetings Act.
601          (10) A taxing entity committee's records shall be:
602          (a) considered the records of the agency that created the taxing entity committee; and
603          (b) maintained by the agency in accordance with Section 17C-1-209.
604          (11) Each time a school district representative or a representative of the State Board of
605     Education votes as a member of a taxing entity committee to allow an agency to receive tax
606     increment, to increase the amount of tax increment the agency receives, or to extend a project
607     area funds collection period, that representative shall, within 45 days after the vote, provide to
608     the representative's respective school board an explanation in writing of the representative's
609     vote and the reasons for the vote.
610          (12) (a) The auditor of each county in which an agency is located shall provide a
611     written report to the taxing entity committee stating, with respect to property within each
612     project area:
613          (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408;
614     and
615          (ii) the assessed value.
616          (b) With respect to the information required under Subsection (12)(a), the auditor shall

617     provide:
618          (i) actual amounts for each year from the adoption of the project area plan to the time
619     of the report; and
620          (ii) estimated amounts for each year beginning the year after the time of the report and
621     ending the time that each project area funds collection period ends.
622          (c) The auditor of the county in which the agency is located shall provide a report
623     under this Subsection (12):
624          (i) at least annually; and
625          (ii) upon request of the taxing entity committee, before a taxing entity committee
626     meeting at which the committee considers whether to allow the agency to receive tax
627     increment, to increase the amount of tax increment that the agency receives, or to extend a
628     project area funds collection period.
629          (13) This section does not apply to:
630          (a) a community development project area plan; or
631          (b) a community reinvestment project area plan that is subject to an interlocal
632     agreement.
633          (14) (a) A taxing entity committee resolution approving a blight finding, approving a
634     project area budget, or approving an amendment to a project area budget:
635          (i) is final; and
636          (ii) is not subject to repeal, amendment, or reconsideration unless the agency first
637     consents by resolution to the proposed repeal, amendment, or reconsideration.
638          (b) The provisions of Subsection (14)(a) apply regardless of when the resolution is
639     adopted.
640          Section 5. Section 17C-1-405 is amended to read:
641          17C-1-405. Tax increment under a project area plan adopted on or after May 1,
642     2006.
643          (1) This section applies to tax increment under [a]:
644          (a) an urban renewal project area plan adopted on or after May 1, 2006, and before
645     May 10, 2016[.]; and
646          (b) an economic development project area plan adopted on or after May 1, 2006, that is
647     subject to a taxing entity committee.

648          (2) Subject to the approval of the taxing entity committee, a board may provide in the
649     urban renewal or economic development project area budget for the agency to be paid:
650          (a) for an urban renewal project area plan that proposes development of an inactive
651     industrial site or inactive airport site, at least 60% of tax increment for at least 20 years; or
652          (b) for each other project, any percentage of tax increment up to 100% or any specified
653     dollar amount of tax increment for any period of time.
654          (3) A resolution or interlocal agreement relating to an agency's use of tax increment for
655     a community development project area plan may provide for the agency to be paid any
656     percentage of tax increment up to 100% or any specified dollar amount of tax increment for
657     any period of time.
658          Section 6. Section 17C-1-407 is amended to read:
659          17C-1-407. Limitations on tax increment.
660          (1) (a) If the development of retail sales of goods is the primary objective of an urban
661     renewal project area, tax increment from the urban renewal project area may not be paid to or
662     used by an agency unless a finding of blight is made under Chapter 2, Part 3, Blight
663     Determination in Urban Renewal Project Areas.
664          (b) Development of retail sales of goods does not disqualify an agency from receiving
665     tax increment.
666          (c) After July 1, 2005, an agency may not receive or use tax increment generated from
667     the value of property within an economic development project area that is attributable to the
668     development of retail sales of goods, unless the tax increment was previously pledged to pay
669     for bonds or other contractual obligations of the agency.
670          (2) (a) An agency with a project area plan that is subject to a taxing entity committee
671     may not be paid any portion of a taxing entity's taxes resulting from an increase in the taxing
672     entity's tax rate that occurs after the taxing entity committee or each taxing entity that is a party
673     to an interlocal agreement with the agency approves the project area budget unless, at the time
674     [the taxing entity committee approves] of the approval of the project area budget, the taxing
675     entity committee or each taxing entity that is a party to an interlocal agreement with the agency
676     approves payment of those increased taxes to the agency.
677          (b) If the taxing entity committee or each taxing entity that is a party to an interlocal
678     agreement with the agency does not approve payment of the increased taxes to the agency

679     under Subsection (2)(a), the county shall distribute to the taxing entity the taxes attributable to
680     the tax rate increase in the same manner as other property taxes.
681          (c) Notwithstanding any other provision of this section, if, before tax year 2013,
682     increased taxes are paid to an agency without the approval of the taxing entity committee or
683     each taxing entity that is a party to an interlocal agreement with the agency, and
684     notwithstanding the law at the time that the tax was collected or increased:
685          (i) the State Tax Commission, the county as the collector of the taxes, a taxing entity,
686     or any other person or entity may not recover, directly or indirectly, the increased taxes from
687     the agency by adjustment of a tax rate used to calculate tax increment or otherwise;
688          (ii) the county is not liable to a taxing entity or any other person or entity for the
689     increased taxes that were paid to the agency; and
690          (iii) tax increment, including the increased taxes, shall continue to be paid to the
691     agency subject to the same number of tax years, percentage of tax increment, and cumulative
692     dollar amount of tax increment as approved in the project area budget and previously paid to
693     the agency.
694          (3) Except as the taxing entity committee or each taxing entity that is a party to an
695     interlocal agreement with the agency otherwise agrees, an agency may not receive tax
696     increment under an urban renewal or economic development project area budget adopted on or
697     after March 30, 2009:
698          (a) that exceeds the percentage of tax increment or cumulative dollar amount of tax
699     increment specified in the project area budget; or
700          (b) for more tax years than specified in the project area budget.
701          Section 7. Section 17C-1-412 is amended to read:
702          17C-1-412. Use of housing allocation -- Separate accounting required -- Issuance
703     of bonds for housing -- Action to compel agency to provide housing allocation.
704          (1) (a) An agency shall use the agency's housing allocation, if applicable, to:
705          (i) pay part or all of the cost of land or construction of income targeted housing within
706     the boundary of the agency, if practicable in a mixed income development or area;
707          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
708     boundary of the agency;
709          (iii) lend, grant, or contribute money to a person, public entity, housing authority,

710     private entity or business, or nonprofit corporation for income targeted housing within the
711     boundary of the agency;
712          (iv) plan or otherwise promote income targeted housing within the boundary of the
713     agency;
714          (v) pay part or all of the cost of land or installation, construction, or rehabilitation of
715     any building, facility, structure, or other housing improvement, including infrastructure
716     improvements, related to housing located in a project area where blight has been found to exist;
717          (vi) replace housing units lost as a result of the project area development;
718          (vii) make payments on or establish a reserve fund for bonds:
719          (A) issued by the agency, the community, or the housing authority that provides
720     income targeted housing within the community; and
721          (B) all or part of the proceeds of which are used within the community for the purposes
722     stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
723          (viii) if the community's fair share ratio at the time of the first adoption of the project
724     area budget is at least 1.1 to 1.0, make payments on bonds:
725          (A) that were previously issued by the agency, the community, or the housing authority
726     that provides income targeted housing within the community; and
727          (B) all or part of the proceeds of which were used within the community for the
728     purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
729          (ix) relocate mobile home park residents displaced by project area development; or
730          (x) subject to Subsection (6), transfer funds to a community that created the agency.
731          (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
732     any portion of the agency's housing allocation to:
733          (i) the community for use as described in Subsection (1)(a);
734          (ii) a housing authority that provides income targeted housing within the community
735     for use in providing income targeted housing within the community;
736          (iii) a housing authority established by the county in which the agency is located for
737     providing:
738          (A) income targeted housing within the county;
739          (B) permanent housing, permanent supportive housing, or a transitional facility, as
740     defined in Section 35A-5-302, within the county; or

741          (C) homeless assistance within the county; or
742          (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8,
743     Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within
744     the community.
745          (2) (a) The agency shall create a housing fund and separately account for the agency's
746     housing allocation, together with all interest earned by the housing allocation and all payments
747     or repayments for loans, advances, or grants from the housing allocation.
748          (b) An agency that creates a housing fund described in Subsection (2)(a):
749          (i) shall dedicate or expend the agency's housing allocation for a use described in
750     Subsection (1); and
751          (ii) may not accumulate a fund balance that exceeds the agency's housing allocations
752     for the previous two years unless funds are reserved for a purpose identified in the agency's
753     affordable housing plan.
754          (3) An agency may:
755          (a) issue bonds to finance a housing-related project under this section, including the
756     payment of principal and interest upon advances for surveys and plans or preliminary loans;
757     and
758          (b) issue refunding bonds for the payment or retirement of bonds under Subsection
759     (3)(a) previously issued by the agency.
760          (4) (a) Except as provided in Subsection (4)(b), [an] if a project area budget requires an
761     agency to make a housing allocation, the agency shall allocate money to the housing fund each
762     year in which the agency receives sufficient tax increment to make [a] the housing allocation
763     [required by the project area budget].
764          (b) Subsection (4)(a) does not apply in a year in which tax increment is insufficient.
765          (5) (a) Except as provided in Subsection (4)(b), if an agency fails to provide a housing
766     allocation [in accordance with] that the project area budget requires and, if applicable, the
767     housing plan adopted under Subsection 17C-2-204(2), the loan fund board may bring legal
768     action to compel the agency to provide the housing allocation.
769          (b) In an action under Subsection (5)(a), the court:
770          (i) shall award the loan fund board reasonable attorney fees, unless the court finds that
771     the action was frivolous; and

772          (ii) may not award the agency the agency's attorney fees, unless the court finds that the
773     action was frivolous.
774          (6) For the purpose of offsetting the community's annual local contribution to the
775     Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
776     a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and
777     17C-1-411(1)(d) may not exceed the community's annual local contribution as defined in
778     Section 35A-8-606.
779          (7) (a) If the community that created the agency is a municipality, the community shall
780     create an affordable housing plan in accordance with this Subsection (7).
781          (b) (i) A community described in Subsection (7)(a) shall ensure that the affordable
782     housing plan that the community creates includes:
783          (A) an estimate of the need for the development of additional moderate income
784     housing within the community; and
785          (B) a plan to provide an opportunity to meet the estimated needs described in
786     Subsection (7)(b)(i)(A) if long-term projections for land use and development occur.
787          (ii) The community may include the following in the affordable housing plan:
788          (A) existing housing rehabilitation within the boundaries of the project area;
789          (B) homeless service offerings within the boundaries of the project area;
790          (C) contribution to or utilization of the statewide Olene Walker Housing Loan Fund,
791     created in Section 35A-8-502;
792          (D) contribution to or utilization of a county-wide affordable housing fund;
793          (E) federal low-income housing tax credits described in Section 42, Internal Revenue
794     Code;
795          (F) housing projects under programs like the United States Department of Housing and
796     Urban Development's Community Development Block Grant Program;
797          (G) donations to municipal and county housing services; and
798          (H) contributions to statewide funding of homeless resource centers.
799          (c) In drafting the moderate income housing plan, the community:
800          (i) shall consider the legislative determination that cities facilitate a reasonable
801     opportunity for a variety of housing, including moderate income housing:
802          (A) to meet the needs of people desiring to live in the community; and

803          (B) to allow individuals with moderate incomes to benefit from and fully participate in
804     all aspects of neighborhood and community life;
805          (ii) may recommend means and techniques for providing a realistic opportunity for the
806     development of moderate income housing, including:
807          (A) rezoning for densities necessary to assure the production of moderate income
808     housing;
809          (B) facilitating the rehabilitation or expansion of infrastructure that will encourage the
810     construction of moderate income housing;
811          (C) encouraging the rehabilitation of existing uninhabitable housing stock into
812     moderate income housing;
813          (D) considering general fund subsidies to waive construction-related fees that are
814     otherwise generally imposed by the city;
815          (E) considering utilization of state or federal funds or tax incentives to promote the
816     construction of moderate income housing;
817          (F) considering utilization of programs offered by the Utah Housing Corporation,
818     created in Section 63H-8-201, within that agency's funding capacity; and
819          (G) considering utilization of affordable housing programs administered by the
820     Department of Workforce Services; and
821          (iii) may include an analysis of why any recommendation described in Subsection
822     (7)(c)(ii) provides a realistic opportunity for the development of moderate income housing
823     within the planning horizon.
824          Section 8. Section 17C-1-603 is amended to read:
825          17C-1-603. Annual report.
826          (1) Beginning in 2016, on or before November 1 of each year, an agency shall:
827          (a) prepare an annual report as described in Subsection (2);
828          (b) submit the annual report electronically to the community in which the agency
829     operates, the county auditor, the State Tax Commission, the State Board of Education, and each
830     taxing entity from which the agency receives project area funds;
831          (c) post the annual report on the agency's website; and
832          (d) ensure that the community in which the agency operates posts the annual report on
833     the community's website.

834          (2) The annual report shall, for each active project area whose project area funds
835     collection period has not expired, contain the following information:
836          (a) an assessment of the change in marginal value, including:
837          (i) the base year;
838          (ii) the base taxable value;
839          (iii) the prior year's assessed value;
840          (iv) the estimated current assessed value;
841          (v) the percentage change in marginal value; and
842          (vi) a narrative description of the relative growth in assessed value;
843          (b) the amount of project area funds the agency received for each year of the project
844     area funds collection period, including:
845          (i) a comparison of the actual project area funds received for each year to the amount of
846     project area funds forecasted for each year when the project area was created, if available;
847          (ii) (A) the agency's historical receipts of project area funds, including the tax year for
848     which the agency first received project area funds from the project area; or
849          (B) if the agency has not yet received project area funds from the project area, the year
850     in which the agency expects each project area funds collection period to begin;
851          (iii) a list of each taxing entity that levies or imposes a tax within the project area and a
852     description of the benefits that each taxing entity receives from the project area; and
853          (iv) the amount paid to other taxing entities under Section 17C-1-410, if applicable;
854          (c) a description of how the agency expended the agency's housing allocation, if
855     applicable;
856          [(c)] (d) a description of current and anticipated project area development, including:
857          (i) a narrative of any significant project area development, including infrastructure
858     development, site development, participation agreements, or vertical construction; and
859          (ii) other details of development within the project area, including:
860          (A) the total developed acreage;
861          (B) the total undeveloped acreage;
862          (C) the percentage of residential development; and
863          (D) the total number of housing units authorized, if applicable;
864          [(d)] (e) the project area budget , if applicable, or other project area funds analyses,

865     including:
866          (i) each project area funds collection period, including:
867          (A) the start and end date of the project area funds collection period; and
868          (B) the number of years remaining in each project area funds collection period;
869          (ii) the amount of project area funds the agency is authorized to receive from the
870     project area cumulatively and from each taxing entity, including:
871          (A) the total dollar amount; and
872          (B) the percentage of the total amount of project area funds generated within the
873     project area;
874          (iii) the remaining amount of project area funds the agency is authorized to receive
875     from the project area cumulatively and from each taxing entity; and
876          (iv) the amount of project area funds the agency is authorized to use to pay for the
877     agency's administrative costs, as described in Subsection [17B-1-409] 17C-1-409(1), including:
878          (A) the total dollar amount; and
879          (B) the percentage of the total amount of all project area funds;
880          [(e)] (f) the estimated amount of project area funds that the agency is authorized to
881     receive from the project area for the current calendar year;
882          [(f)] (g) the estimated amount of project area funds to be paid to the agency for the next
883     calendar year;
884          [(g)] (h) a map of the project area; and
885          [(h)] (i) any other relevant information the agency elects to provide.
886          (3) A report prepared in accordance with this section:
887          (a) is for informational purposes only; and
888          (b) does not alter the amount of project area funds that an agency is authorized to
889     receive from a project area.
890          (4) The provisions of this section apply regardless of when the agency or project area is
891     created.
892          Section 9. Section 17C-1-806 is amended to read:
893          17C-1-806. Requirements for notice provided by agency.
894          (1) The notice required by Section 17C-1-805 shall be given by:
895          (a) (i) publishing one notice, excluding the map referred to in Subsection (3)(b), in a

896     newspaper of general circulation within the county in which the project area or proposed
897     project area is located, at least 14 days before the hearing;
898          (ii) if there is no newspaper of general circulation, posting notice at least 14 days
899     before the day of the hearing in at least three conspicuous places within the county in which the
900     project area or proposed project area is located; or
901          (iii) posting notice, excluding the map described in Subsection (3)(b), at least 14 days
902     before the day on which the hearing is held on:
903          (A) the Utah Public Notice Website described in Section 63F-1-701; and
904          (B) the public website of a community located within the boundaries of the project
905     area; and
906          (b) at least 30 days before the hearing, mailing notice to:
907          (i) each record owner of property located within the project area or proposed project
908     area;
909          (ii) the State Tax Commission;
910          (iii) the assessor and auditor of the county in which the project area or proposed project
911     area is located; and
912          (iv) (A) if a project area is subject to a taxing entity committee, each member of the
913     taxing entity committee and the State Board of Education; or
914          (B) if a project area is not subject to a taxing entity committee, the legislative body or
915     governing board of each taxing entity within the boundaries of the project area or proposed
916     project area.
917          (2) The mailing of the notice to record property owners required under Subsection
918     (1)(b)(i) shall be conclusively considered to have been properly completed if:
919          (a) the agency mails the notice to the property owners as shown in the records,
920     including an electronic database, of the county recorder's office and at the addresses shown in
921     those records; and
922          (b) the county recorder's office records used by the agency in identifying owners to
923     whom the notice is mailed and their addresses were obtained or accessed from the county
924     recorder's office no earlier than 30 days before the mailing.
925          (3) The agency shall include in each notice required under Section 17C-1-805:
926          (a) (i) a boundary description of the project area or proposed project area; or

927          (ii) (A) a mailing address or telephone number where a person may request that a copy
928     of the boundary description be sent at no cost to the person by mail, email, or facsimile
929     transmission; and
930          (B) if the agency or community has an Internet website, an Internet address where a
931     person may gain access to an electronic, printable copy of the boundary description and other
932     related information;
933          (b) a map of the boundaries of the project area or proposed project area;
934          (c) an explanation of the purpose of the hearing; and
935          (d) a statement of the date, time, and location of the hearing.
936          (4) The agency shall include in each notice under Subsection (1)(b):
937          (a) a statement that property tax revenue resulting from an increase in valuation of
938     property within the project area or proposed project area will be paid to the agency for project
939     area development rather than to the taxing entity to which the tax revenue would otherwise
940     have been paid if:
941          (i) (A) for a project area plan that is subject to a taxing entity committee, the taxing
942     entity committee consents to the project area budget; or
943          (B) one or more taxing entities agree to share property tax revenue under an interlocal
944     agreement and each taxing entity that is party to the interlocal agreement consents; and
945          (ii) the project area plan provides for the agency to receive tax increment; and
946          (b) an invitation to the recipient of the notice to submit to the agency comments
947     concerning the subject matter of the hearing before the date of the hearing.
948          (5) An agency may include in a notice under Subsection (1) any other information the
949     agency considers necessary or advisable, including the public purpose achieved by the project
950     area development and any future tax benefits expected to result from the project area
951     development.
952          Section 10. Section 17C-2-203 is amended to read:
953          17C-2-203. Part of tax increment funds in urban renewal project area budget to
954     be used for housing -- Waiver of requirement.
955          (1) (a) Except as provided in [Subsections (1)(b) and (c)] Subsection (1)(b), each urban
956     renewal project area budget adopted on or after May 1, 2000, that provides for more than
957     $100,000 of annual tax increment to be paid to the agency shall allocate at least 20% of the tax

958     increment for housing as provided in Section 17C-1-412.
959          [(b) The 20% requirement of Subsection (1)(a) may be waived in part or whole by the
960     taxing entity committee if the taxing entity committee determines that 20% of tax increment is
961     more than is needed to address the community's need for income targeted housing.]
962          [(c)] (b) An agency is not subject to the 20% requirement described in Subsection
963     (1)(a) if:
964          (i) an inactive industrial site is located within an urban renewal project area; and
965          (ii) the inactive industrial site's remediation costs are estimated to exceed 20% of the
966     project area funds under the urban renewal project area budget.
967          (2) An urban renewal project area budget not required under Subsection (1)(a) to
968     allocate tax increment for housing may allocate 20% of tax increment received by the agency
969     over the life of the project area for housing as provided in Section 17C-1-412 if the project area
970     budget is under a project area plan that is adopted on or after July 1, 1998.
971          Section 11. Section 17C-3-103 is amended to read:
972          17C-3-103. Economic development project area plan requirements.
973          (1) Each economic development project area plan and proposed project area plan shall:
974          (a) describe the boundaries of the project area, subject to Section 17C-1-414, if
975     applicable;
976          (b) contain a general statement of the land uses, layout of principal streets, population
977     densities, and building intensities of the project area and how they will be affected by the
978     project area development;
979          (c) state the standards that will guide the project area development;
980          (d) show how the purposes of this title will be attained by the project area
981     development;
982          (e) be consistent with the general plan of the community in which the project area is
983     located and show that the project area development will conform to the community's general
984     plan;
985          (f) describe how the project area development will create additional jobs in accordance
986     with Subsection (3), if applicable;
987          (g) describe any specific project or projects that are the object of the proposed project
988     area development;

989          (h) identify how a participant will be selected to undertake the project area
990     development and identify each participant currently involved in the project area development;
991          (i) state the reasons for the selection of the project area;
992          (j) describe the physical, social, and economic conditions existing in the project area;
993          (k) describe any tax incentives offered private entities for facilities located in the
994     project area;
995          (l) include an analysis, as provided in Subsection (2), of whether adoption of the
996     project area plan is beneficial under a benefit analysis;
997          (m) if any of the existing buildings or uses in the project area are included in or eligible
998     for inclusion in the National Register of Historic Places or the State Register, state that the
999     agency shall comply with Subsection 9-8-404(1) as though the agency were a state agency; and
1000          (n) include other information that the agency determines to be necessary or advisable.
1001          (2) Each analysis under Subsection (1)(l) shall consider:
1002          (a) the benefit of any financial assistance or other public subsidy proposed to be
1003     provided by the agency, including:
1004          (i) an evaluation of the reasonableness of the costs of project area development;
1005          (ii) efforts the agency or participant has made or will make to maximize private
1006     investment;
1007          (iii) the rationale for use of tax increment, including an analysis of whether the
1008     proposed project area development might reasonably be expected to occur in the foreseeable
1009     future solely through private investment; and
1010          (iv) an estimate of the total amount of tax increment that will be expended in
1011     undertaking project area development and the length of time for which it will be expended; and
1012          (b) the anticipated public benefit to be derived from the project area development,
1013     including:
1014          (i) the beneficial influences upon the tax base of the community;
1015          (ii) the associated business and economic activity likely to be stimulated; [and]
1016          (iii) the number of jobs or employment anticipated to be generated or preserved[.]; and
1017          (iv) the salary associated with any jobs generated or preserved.
1018          (3) For an economic development project area plan adopted after May 9, 2019, an
1019     agency shall require that project area development under the plan creates at least 50 new jobs

1020     that pay a salary that is 150% of area median income for the county in which the agency is
1021     located.
1022          Section 12. Section 17C-3-109 is amended to read:
1023          17C-3-109. Amending an economic development project area plan.
1024          (1) An economic development project area plan may be amended as provided in this
1025     section.
1026          (2) If an agency proposes to amend an economic development project area plan to
1027     enlarge the project area:
1028          (a) the requirements under this part that apply to adopting a project area plan apply
1029     equally to the proposed amendment as if it were a proposed project area plan;
1030          (b) the base year for the new area added to the project area shall be determined under
1031     Subsection 17C-1-102(9) using the date of the taxing entity committee's consent [referred to]
1032     or the taxing entities' consent described in Subsection (2)(c); and
1033          (c) the agency shall obtain the consent of the taxing entity committee or each taxing
1034     entity that is party to an interlocal agreement with the agency before the agency may collect tax
1035     increment from the area added to the project area by the amendment.
1036          (3) If a proposed amendment does not propose to enlarge an economic development
1037     project area, a board may adopt a resolution approving an amendment to an economic
1038     development project area plan after:
1039          (a) the agency gives notice, as provided in Chapter 1, Part 8, Hearing and Notice
1040     Requirements, of the proposed amendment and of the public hearing required by Subsection
1041     (3)(b);
1042          (b) the board holds a public hearing on the proposed amendment that meets the
1043     requirements of a plan hearing;
1044          (c) the agency obtains the taxing entity committee's consent to the amendment or the
1045     consent of each taxing entity that is party to an interlocal agreement with the agency, if the
1046     amendment proposes:
1047          (i) to enlarge the area within the project area from which tax increment is received; or
1048          (ii) to permit the agency to receive a greater percentage of tax increment or to extend
1049     the project area funds collection period under the economic development project area plan; and
1050          (d) the agency obtains the consent of the legislative body or governing board of each

1051     taxing entity affected, if the amendment proposes to permit the agency to receive, from less
1052     than all taxing entities, a greater percentage of tax increment or to extend the project area funds
1053     collection period, or both, than allowed under the economic development project area plan.
1054          (4) (a) An economic development project area plan may be amended without
1055     complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
1056     (b) and without obtaining [taxing entity committee approval] consent under Subsection (3)(c) if
1057     the amendment:
1058          (i) makes a minor adjustment in the boundary description of a project area boundary
1059     requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
1060     or
1061          (ii) subject to Subsection (4)(b), removes one or more parcels from a project area
1062     because the agency determines that each parcel removed is:
1063          (A) tax exempt; or
1064          (B) no longer necessary or desirable to the project area.
1065          (b) An amendment removing one or more parcels from a project area under Subsection
1066     (4)(a) may be made without the consent of the record property owner of each parcel being
1067     removed.
1068          (5) (a) An amendment approved by board resolution under this section may not take
1069     effect until adopted by ordinance of the legislative body of the community in which the project
1070     area that is the subject of the project area plan being amended is located.
1071          (b) Upon a community legislative body passing an ordinance adopting an amendment
1072     to a project area plan, the agency whose project area plan was amended shall comply with the
1073     requirements of Sections 17C-3-107 and 17C-3-108 to the same extent as if the amendment
1074     were a project area plan.
1075          (6) (a) Within 30 days after the day on which an amendment to a project area plan
1076     becomes effective, a person may contest the amendment to the project area plan or the
1077     procedure used to adopt the amendment to the project area plan if the amendment or procedure
1078     fails to comply with a provision of this title.
1079          (b) After the 30-day period described in Subsection (6)(a) expires, a person may not
1080     contest the amendment to the project area plan or procedure used to adopt the amendment to
1081     the project area plan for any cause.

1082          Section 13. Section 17C-3-201 is amended to read:
1083          17C-3-201. Economic development project area budget -- Requirements for
1084     adopting -- Contesting the budget or procedure -- Time limit.
1085          (1) (a) If an agency anticipates funding all or a portion of [a post-June 30, 1993] an
1086     economic development project area plan with tax increment, the agency shall, subject to
1087     Section 17C-3-202, adopt a project area budget as provided in this part.
1088          (b) An economic development project area budget adopted on or after March 30, 2009,
1089     shall specify:
1090          (i) for a project area budget adopted on or after March 30, 2009:
1091          (A) the project area funds collection period; and
1092          (B) the percentage of tax increment the agency is authorized to receive from the project
1093     area under the project area budget; and
1094          (ii) for a project area budget adopted on or after March 30, 2013, unless approval is
1095     obtained under Subsection 17C-1-402(4)(b)(vi)(C), the maximum cumulative dollar amount of
1096     tax increment that the agency may receive from the project area under the project area budget.
1097          (2) To adopt an economic development project area budget, the agency shall:
1098          (a) prepare a proposed economic development project area budget;
1099          (b) make a copy of the proposed project area budget available to the public at the
1100     agency's offices during normal business hours;
1101          (c) provide notice of the budget hearing as required by Chapter 1, Part 8, Hearing and
1102     Notice Requirements;
1103          (d) hold a public hearing on the proposed project area budget and, at that public
1104     hearing, allow public comment on:
1105          (i) the proposed project area budget; and
1106          (ii) whether the proposed project area budget should be revised, adopted, or rejected;
1107          (e) (i) if required under Subsection 17C-3-203(1), obtain the approval of the taxing
1108     entity committee on the proposed project area budget or a revised version of the proposed
1109     project area budget; or
1110          (ii) if applicable, comply with the requirements of Subsection 17C-3-203(2);
1111          (f) if required under Subsection 17C-3-203(3), obtain approval on the proposed project
1112     area budget or a revised version of the proposed project area budget from each taxing entity

1113     that is party to an interlocal agreement with the agency;
1114          [(f)] (g) if approval of the taxing entity committee is required under Subsection
1115     (2)(e)(i) or if approval of each taxing entity is required under Subsection (2)(f), obtain a written
1116     certification, signed by an attorney licensed to practice law in this state, stating that the taxing
1117     entity committee followed the appropriate procedures to approve the project area budget; and
1118          [(g)] (h) after the budget hearing, hold a board meeting in the same meeting as the
1119     public hearing or in a subsequent meeting to:
1120          (i) consider comments made and information presented at the public hearing relating to
1121     the proposed project area budget; and
1122          (ii) adopt by resolution the proposed project area budget, with any revisions, as the
1123     project area budget.
1124          (3) (a) For a period of 30 days after the agency's adoption of the project area budget
1125     under Subsection (2)[(g)](h), any person may contest the project area budget or the procedure
1126     used to adopt the project area budget if the budget or procedure fails to comply with applicable
1127     statutory requirements.
1128          (b) After the 30-day period under Subsection (3)(a) expires, a person may not contest:
1129          (i) the project area budget or procedure used by either the taxing entity committee, a
1130     taxing entity committee that is party to an interlocal agreement with the agency, or the agency
1131     to approve and adopt the project area budget;
1132          (ii) a distribution of tax increment to the agency under the project area budget; or
1133          (iii) the agency's use of tax increment under the project area budget.
1134          Section 14. Section 17C-3-203 is amended to read:
1135          17C-3-203. Consent of taxing entity committee required for economic
1136     development project area budget -- Exception.
1137          (1) (a) Except as provided in Subsection (1)(b) or (3) and subject to Subsection (2),
1138     each agency shall obtain the consent of the taxing entity committee for each economic
1139     development project area budget under a post-June 30, 1993, economic development project
1140     area plan before the agency may collect any tax increment from the project area.
1141          (b) For an economic development project area budget adopted from July 1, 1998,
1142     through May 1, 2000, that allocates 20% or more of the tax increment for housing as provided
1143     in Section 17C-1-412, an agency:

1144          (i) need not obtain the consent of the taxing entity committee for the project area
1145     budget; and
1146          (ii) may not receive any tax increment from all or part of the project area until after:
1147          (A) the loan fund board has certified the project area budget as complying with the
1148     requirements of Section 17C-1-412; and
1149          (B) the board has approved and adopted the project area budget by a two-thirds vote.
1150          (2) (a) Before a taxing entity committee may consent to an economic development
1151     project area budget adopted on or after May 1, 2000, that allocates 20% of tax increment for
1152     housing under Subsection 17C-3-202(2)(a) or (3), the agency shall:
1153          (i) adopt a housing plan showing the uses for the housing funds; and
1154          (ii) provide a copy of the housing plan to the taxing entity committee and the loan fund
1155     board.
1156          (b) If an agency amends a housing plan prepared under Subsection (2)(a), the agency
1157     shall provide a copy of the amendment to the taxing entity committee and the loan fund board.
1158          (3) Notwithstanding Subsection (1), an agency:
1159          (a) may enter into an interlocal agreement with each taxing entity within the economic
1160     development project area; and
1161          (b) for a project area subject to an interlocal agreement, shall obtain the consent of a
1162     taxing entity before collecting tax increment attributable to that taxing entity from the project
1163     area.
1164          Section 15. Section 17C-3-205 is amended to read:
1165          17C-3-205. Amending an economic development project area budget.
1166          (1) An agency may by resolution amend an economic development project area budget
1167     as provided in this section.
1168          (2) To amend an adopted economic development project area budget, the agency shall:
1169          (a) advertise and hold one public hearing on the proposed amendment as provided in
1170     Subsection (3);
1171          (b) if approval of the taxing entity committee or each taxing entity that is a party to an
1172     interlocal agreement with the agency was required for adoption of the original project area
1173     budget, obtain the approval of the taxing entity committee or each taxing entity that is a party
1174     to an interlocal agreement with the agency to the same extent that the agency was required to

1175     obtain [the consent of the taxing entity committee] consent for the project area budget as
1176     originally adopted;
1177          (c) if approval of the taxing entity committee or each taxing entity that is a party to an
1178     interlocal agreement with the agency is required under Subsection (2)(b), obtain a written
1179     certification, signed by an attorney licensed to practice law in this state, stating that the taxing
1180     entity committee or each taxing entity that is a party to an interlocal agreement with the agency
1181     followed the appropriate procedures to approve the project area budget; and
1182          (d) adopt a resolution amending the project area budget.
1183          (3) The public hearing required under Subsection (2)(a) shall be conducted according
1184     to the procedures and requirements of Section 17C-3-201, except that if the amended project
1185     area budget proposes that the agency be paid a greater proportion of tax increment from a
1186     project area than was to be paid under the previous project area budget, the notice shall state
1187     the percentage paid under the previous project area budget and the percentage proposed under
1188     the amended project area budget.
1189          (4) If the removal of a parcel under Subsection 17C-3-109(4)(a)(ii) reduces the base
1190     taxable value of the project area, an agency may amend the project area budget to conform with
1191     the new base taxable value without:
1192          (a) complying with Subsections (2)(a) and (3); and
1193          (b) if applicable, obtaining taxing entity committee approval or the approval of each
1194     taxing entity that is a party to an interlocal agreement with the agency as described in
1195     Subsection (2)(b).
1196          (5) If a proposed amendment is not adopted, the agency shall continue to operate under
1197     the previously adopted economic development project area budget without the proposed
1198     amendment.
1199          (6) (a) A person may contest the agency's adoption of a budget amendment within 30
1200     days after the day on which the agency adopts the amendment.
1201          (b) A person who fails to contest a budget amendment under Subsection (6)(a):
1202          (i) forfeits any claim against an agency's adoption of the amendment; and
1203          (ii) may not contest:
1204          (A) a distribution of tax increment to the agency under the budget amendment; or
1205          (B) an agency's use of a tax increment under a budget amendment.

1206          Section 16. Section 17C-5-307 is amended to read:
1207          17C-5-307. Allocating project area funds for housing.
1208          (1) (a) For a community reinvestment project area that is subject to a taxing entity
1209     committee, which does not include an economic development project area under Chapter 3,
1210     Economic Development, an agency shall allocate at least 20% of the agency's annual tax
1211     increment for housing in accordance with Section 17C-1-412 if the community reinvestment
1212     project area budget provides for more than $100,000 of annual tax increment to be distributed
1213     to the agency.
1214          (b) The taxing entity committee may waive a portion of the allocation described in this
1215     Subsection (1)[(a)] if:
1216          (i) the taxing entity committee determines that 20% of the agency's annual tax
1217     increment is more than is needed to address the community's need for income targeted housing
1218     or homeless assistance; and
1219          (ii) after the waiver, the agency's housing allocation is equal to at least 10% of the
1220     agency's annual tax increment.
1221          (2) For a community reinvestment project area that is subject to an interlocal
1222     agreement, an agency shall allocate at least 10% of the project area funds for housing in
1223     accordance with Section 17C-1-412 if the community reinvestment project area budget
1224     provides for more than $100,000 of annual project area funds to be distributed to the agency.
1225          (3) The agency may use the housing allocation described in Subsection (1) to achieve
1226     the affordable housing plan the community establishes in accordance with Section 17C-1-412.
1227          Section 17. Repealer.
1228          This bill repeals:
1229          Section 17C-3-101.2, Applicability of chapter.