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7 LONG TITLE
8 General Description:
9 This bill enacts the Housing and Transit Reinvestment Zone Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ enacts the Housing and Transit Reinvestment Zone Act;
13 ▸ defines terms;
14 ▸ establishes objectives and requirements for a municipality to create a housing and
15 transit reinvestment zone to capture tax increment revenue within a defined area
16 around a commuter rail station;
17 ▸ requires a municipality to submit a housing and transit reinvestment zone proposal
18 to the Governor's Office of Economic Development;
19 ▸ requires the Governor's Office of Economic Development to initiate an analysis of
20 the feasibility, efficiency, rate of return, and other aspects of the proposed housing
21 and transit reinvestment zone;
22 ▸ creates and defines membership of a committee to review the proposed housing and
23 transit reinvestment zone;
24 ▸ requires the committee to evaluate the proposed housing and transit reinvestment
25 zone and approve if certain criteria are met;
26 ▸ requires participation from local taxing entities if the housing and transit
27 reinvestment zone proposal meets the statutory requirements and is approved by the
28 committee;
29 ▸ defines permitted uses and administration of tax increment revenue generated
30 pursuant to the housing and transit reinvestment zone;
31 ▸ amends provisions related to prioritization of certain funds related to transportation
32 for a project that is part of an housing and transit reinvestment zone; and
33 ▸ makes technical changes.
34 Money Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 72-1-102, as last amended by Laws of Utah 2020, Chapters 243 and 377
41 72-1-304, as last amended by Laws of Utah 2020, Chapter 377
42 72-2-201, as last amended by Laws of Utah 2020, Chapter 366
43 ENACTS:
44 63N-3-601, Utah Code Annotated 1953
45 63N-3-602, Utah Code Annotated 1953
46 63N-3-603, Utah Code Annotated 1953
47 63N-3-604, Utah Code Annotated 1953
48 63N-3-605, Utah Code Annotated 1953
49 63N-3-606, Utah Code Annotated 1953
50 63N-3-607, Utah Code Annotated 1953
51
52 Be it enacted by the Legislature of the state of Utah:
53 Section 1. Section 63N-3-601 is enacted to read:
54
55 63N-3-601. Title.
56 This part is known as the "Housing and Transit Reinvestment Zone Act."
57 Section 2. Section 63N-3-602 is enacted to read:
58 63N-3-602. Definitions.
59 As used in this part:
60 (1) "Affordable housing" means the same as that term is defined in Section 11-38-102.
61 (2) "Agency" means the same as that term is defined in Section 17C-1-102.
62 (3) "Base taxable value" means a property's taxable value as shown upon the
63 assessment roll last equalized during the base year.
64 (4) "Base year" means, for a proposed housing and transit reinvestment zone area, a
65 year determined by the last equalized tax roll before the adoption of the housing and transit
66 reinvestment zone.
67 (5) (a) "Commuter rail" means a heavy-rail passenger rail transit facility operated by a
68 large public transit district.
69 (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
70 transit district.
71 (6) "Commuter rail station" means an existing or proposed station, stop, or terminal
72 along a commuter rail line.
73 (7) "Dwelling unit" means one or more rooms arranged for the use of one or more
74 individuals living together, as a single housekeeping unit normally having cooking, living,
75 sanitary, and sleeping facilities.
76 (8) "Enhanced development" means the construction of housing, mixed uses including
77 housing, commercial uses, and related facilities, at an average density of 50 dwelling units or
78 more per acre of the developable acres.
79 (9) "Enhanced development costs" means extra costs associated with structured
80 parking costs, vertical construction costs, horizontal construction costs, life safety costs,
81 structural costs, conveyor or elevator costs, and other costs incurred due to the increased height
82 of buildings or enhanced density.
83 (10) "Horizontal construction costs" means the additional costs associated with
84 earthwork, over excavation, utility work, transportation infrastructure, and landscaping to
85 achieve enhanced development in the housing and transit reinvestment zone.
86 (11) "Housing and transit reinvestment zone" means a housing and transit reinvestment
87 zone created pursuant to this part.
88 (12) "Housing and transit reinvestment zone committee" means a housing and transit
89 reinvestment committee created pursuant to Section 63N-3-605.
90 (13) "Large public transit district" means the same as that term is defined in Section
91 17B-2a-802.
92 (14) "Metropolitan planning organization" means the same as that term is defined in
93 Section 72-1-208.5.
94 (15) "Mixed use development" means development with a mix of multi-family
95 residential use and at least one additional land use.
96 (16) "Municipality" means the same as that term is defined in Section 10-1-104.
97 (17) "Participant" means the same as that term is defined in Section 17C-1-102.
98 (18) "Participation agreement" means the same as that term is defined in Section
99 17C-1-102.
100 (19) "Tax increment" means the difference between:
101 (a) the amount of property tax revenue generated each tax year by a taxing entity from
102 the area within a housing and transit reinvestment zone designated in the housing and transit
103 reinvestment zone plan as the area from which tax increment is to be collected, using the
104 current assessed value and each taxing entity's current certified tax rate as defined in Section
105 59-2-924; and
106 (b) the amount of property tax revenue that would be generated from that same area
107 using the base taxable value and each taxing entity's current certified tax rate as defined in
108 Section 59-2-924.
109 (20) "Taxing entity" means the same as that term is defined in Section 17C-1-102.
110 (21) "Vertical construction costs" means the additional costs associated with
111 construction above four stories and structured parking to achieve enhanced development in the
112 housing and transit reinvestment zone.
113 Section 3. Section 63N-3-603 is enacted to read:
114 63N-3-603. Applicability, requirements, and limitations on a housing and transit
115 reinvestment zone.
116 (1) A housing and transit reinvestment zone proposal created under this part shall
117 promote the following objectives:
118 (a) higher utilization of public transit;
119 (b) increasing availability of housing, including affordable housing;
120 (c) conservation of water resources through efficient land use;
121 (d) improving air quality by reducing fuel consumption and motor vehicle trips;
122 (e) encouraging transformative mixed-use development and investment in
123 transportation and public transit infrastructure in strategic areas;
124 (f) strategic land use and municipal planning in major transit investment corridors as
125 described in Section 10-9a-403; and
126 (g) increasing access to employment and educational opportunities.
127 (2) In order to accomplish the objectives described in Subsection (1), a municipality
128 that initiates the process to create a housing and transit reinvestment zone as described in this
129 part shall ensure that the proposed plan for a housing and transit reinvestment zone includes:
130 (a) except as provided in Subsection (3), at least 10% of the proposed housing units
131 within the housing and transit reinvestment zone are affordable housing units;
132 (b) a dedication of at least 51% of the developable acreage within the housing and
133 transit reinvestment zone to residential development with a minimum of 50 multi-family
134 dwelling units per acre; and
135 (c) mixed-use development.
136 (3) A municipality that, at the time the housing and transit reinvestment zone plan is
137 approved by the housing and transit reinvestment zone committee, meets the affordable
138 housing guidelines of the United States Department of Housing and Urban Development at
139 60% area median income is exempt from the requirement described in Subsection (2)(a).
140 (4) A municipality may only propose a housing and transit reinvestment zone that:
141 (a) creates a housing and transit reinvestment zone area that, subject to Subsection (5):
142 (i) does not exceed a 1/3 mile radius of a commuter rail station; and
143 (ii) has a total area of no more than 125 noncontiguous square acres;
144 (b) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each
145 taxing entity's tax increment above the base year for a term no more than 25 years within a 45
146 year period; and
147 (c) the commencement of collection of tax increment, for all or a portion of the
148 housing and transit reinvestment zone, will be triggered by providing notice as described in
149 Subsection 17C-1-416(2)(a)(ii), within five years of the date of approval of the housing and
150 transit reinvestment zone.
151 (5) If a parcel is bisected by the 1/3 mile radius, the full parcel may be included as part
152 of the housing and transit reinvestment zone area and will not count against the limitations
153 described in Subsection (4)(a).
154 Section 4. Section 63N-3-604 is enacted to read:
155 63N-3-604. Process for a proposal of a housing and transit reinvestment zone --
156 Analysis.
157 (1) Subject to approval of the housing and transit reinvestment zone committee as
158 described in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a
159 municipality that has general land use authority over the housing and transit reinvestment zone
160 area, shall:
161 (a) prepare a proposal for the housing and transit reinvestment zone that:
162 (i) defines the specific transportation infrastructure need, if any, and proposed
163 improvements;
164 (ii) defines the boundaries of the housing and transit reinvestment zone;
165 (iii) describes the proposed development plan, including the requirements described in
166 Section 63N-3-603;
167 (iv) establishes a base year and collection period to calculate the tax increment within
168 the housing and transit reinvestment zone; and
169 (v) describes projected revenues generated from each taxing entity and proposed
170 expenditures of revenue derived from the housing and transit reinvestment zone; and
171 (b) submit the housing and transit reinvestment zone proposal to the Governor's Office
172 of Economic Development.
173 (2) Before submitting the proposed housing and transit reinvestment zone to the
174 Governor's Office of Economic Development as described in Subsection (1)(b), the
175 municipality proposing the housing and transit reinvestment zone shall ensure that the area of
176 the proposed housing and transit reinvestment zone is zoned in such a manner to accommodate
177 the requirements of a housing and transit reinvestment zone described in this section and the
178 proposed construction.
179 (3) (a) After receiving the proposal as described in Subsection (1)(b), the Governor's
180 Office of Economic Development shall, at the expense of the proposing municipality, contract
181 with an independent entity to perform the gap analysis described in Subsection (3)(b).
182 (b) The gap analysis required in Subsection (3)(a) shall include:
183 (i) a market analysis relative to other comparable project developments absent the
184 proposed housing and transit reinvestment zone;
185 (ii) an evaluation to determine the adequacy and efficiency of proposed:
186 (A) lease and rental rates;
187 (B) operation and maintenance expenditures;
188 (C) project costs and required market rates of return;
189 (D) financing requirements for debt and equity components;
190 (E) capture levels of tax increment; and
191 (F) time constraints on the duration of the housing and transit reinvestment zone; and
192 (iii) based on the market analysis and other findings, an opinion relative to the amount
193 of potential public financing necessary to achieve the overall financing requirements of the
194 proposed housing and transit reinvestment zone.
195 (4) After receiving the results from the analysis described in Subsection (3)(b), the
196 municipality proposing the housing and transit reinvestment zone may:
197 (a) amend the housing and transit reinvestment zone proposal based on the findings of
198 the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic
199 Development submit the amended housing and transit reinvestment zone proposal to the
200 housing and transit reinvestment zone committee; or
201 (b) request that the Governor's Office of Economic Development submit the original
202 housing and transit reinvestment zone proposal to the housing and transit reinvestment zone
203 committee.
204 Section 5. Section 63N-3-605 is enacted to read:
205 63N-3-605. Housing and Transit Reinvestment Zone Committee -- Creation.
206 (1) For any housing and transit reinvestment zone proposed under this part, there is
207 created a housing and transit reinvestment zone committee with membership described in
208 Subsection (2).
209 (2) Each housing and transit reinvestment zone committee shall consist of the
210 following members:
211 (a) one representative from the Governor's Office of Economic Development,
212 designated by the executive director of the Governor's Office of Economic Development;
213 (b) one representative from each city that is a party to the proposed housing and transit
214 reinvestment zone, designated by the chief executive officer of each respective city;
215 (c) one representative from the Department of Transportation created in Section
216 72-1-201, designated by the executive director of the Department of Transportation;
217 (d) one representative from a large public transit district that serves the proposed
218 housing and transit reinvestment zone area, designated by the chair of the board of trustees
219 large public transit district;
220 (e) one representative of each relevant metropolitan planning organization, designated
221 by the chair of the metropolitan planning organization;
222 (f) one member designated by the president of the Senate;
223 (g) one member designated by the speaker of the House of Representatives;
224 (h) one member designated by the chair of the State Board of Education;
225 (i) one member designated by the chief executive officer of each county affected by the
226 housing and transit reinvestment zone;
227 (j) one representative designated by the school superintendent from the school district
228 affected by the housing and transit reinvestment zone; and
229 (k) one representative, representing the largest participating local taxing entity, after
230 the city, county, and school district.
231 (3) The individual designated by the Governor's Office of Economic as described in
232 Subsection (2)(a) shall serve as chair of the housing and transit reinvestment zone committee.
233 (4) (a) A majority of the members of the housing and transit reinvestment zone
234 committee constitutes a quorum of the housing and transit reinvestment zone committee.
235 (b) An action by a majority of a quorum of the housing and transit reinvestment zone
236 committee is an action of the housing and transit reinvestment zone committee.
237 (5) After the Governor's Office of Economic Development receives the results of the
238 analysis described in Section 63N-3-604, and after the Governor's Office of Economic
239 Development has received a request from the submitting municipality to submit the housing
240 and transit reinvestment zone proposal to the housing and transit reinvestment zone committee,
241 the Governor's Office of Economic Development shall notify each of the entities described in
242 Subsection (2) of the formation of the housing and transit reinvestment zone committee.
243 (6) (a) The chair of the housing and transit reinvestment zone committee shall convene
244 a public meeting to consider the proposed housing and transit reinvestment zone.
245 (b) A meeting of the housing and transit reinvestment zone committee is subject to
246 Title 52, Chapter 4, Open and Public Meetings Act.
247 (7) (a) The proposing municipality shall present the housing and transit reinvestment
248 zone proposal to the housing and transit reinvestment zone committee in a public meeting.
249 (b) The housing and transit reinvestment zone committee shall:
250 (i) evaluate and verify whether the elements of a housing and transit reinvestment zone
251 described in Subsections 63N-3-603(2) and (4) have been met; and
252 (ii) evaluate the proposed housing and transit reinvestment zone relative to the analysis
253 described in Subsection 63N-3-604(2).
254 (8) The housing and transit reinvestment zone committee may:
255 (a) request changes to the housing and transit reinvestment zone proposal based on the
256 analysis described in Section 63N-3-604; or
257 (b) vote to approve or deny the proposal.
258 (9) If approved by the committee:
259 (a) the proposed housing and transit reinvestment zone is established according to the
260 terms of the housing and transit reinvestment proposal; and
261 (b) affected local taxing entities are required to participate according to the terms of the
262 housing and transit reinvestment zone proposal.
263 Section 6. Section 63N-3-606 is enacted to read:
264 63N-3-606. Notice requirements.
265 (1) In approving a housing and transit reinvestment zone proposal the housing and
266 transit reinvestment zone committee shall follow the hearing and notice requirements for
267 creating a housing and transit reinvestment zone area plan and budget.
268 (2) Within 30 days after the housing and transit reinvestment zone committee approves
269 a proposed housing and transit reinvestment zone, the municipality shall:
270 (a) record with the recorder of the county in which the housing and transit reinvestment
271 zone is located a document containing:
272 (i) a description of the land within the housing and transit reinvestment zone;
273 (ii) a statement that the proposed housing and transit reinvestment zone has been
274 approved; and
275 (iii) the date of adoption;
276 (b) transmit a copy of the description of the land within the housing and transit
277 reinvestment zone and an accurate map or plat indicating the boundaries of the housing and
278 transit reinvestment zone to the Automated Geographic Reference Center created under Section
279 63F-1-506; and
280 (c) transmit a copy of the approved housing and transit reinvestment zone plan, map,
281 and description of the land within the housing and transit reinvestment zone, to:
282 (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
283 part of the housing and transit reinvestment zone is located;
284 (ii) the officer or officers performing the function of auditor or assessor for each taxing
285 entity that does not use the county assessment roll or collect the taxing entity's taxes through
286 the county;
287 (iii) the legislative body or governing board of each taxing entity;
288 (iv) the State Tax Commission; and
289 (v) the State Board of Education.
290 Section 7. Section 63N-3-607 is enacted to read:
291 63N-3-607. Payment, use, and administration of revenue from a housing and
292 transit reinvestment zone.
293 (1) A municipality may receive and use tax increment and housing and transit
294 reinvestment zone funds in accordance with this part.
295 (2) (a) A county that collects property tax on property located within a housing and
296 transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the
297 municipality any tax increment the municipality is authorized to receive.
298 (b) Tax increment distributed to a municipality in accordance with Subsection (2)(a) is
299 not revenue of the taxing entity or municipality.
300 (c) Tax increment paid to the municipality are housing and transit reinvestment zone
301 funds and shall be administered by an agency created by the municipality within which the
302 housing and transit reinvestment zone is located.
303 (3) (a) A municipality and agency shall use housing and transit reinvestment zone
304 funds within, or for the direct benefit of, the housing and transit reinvestment zone.
305 (b) If any housing and transit reinvestment zone funds will be used outside of the
306 housing and transit reinvestment zone there must be a finding in the approved proposal for a
307 housing and transit reinvestment zone that the use of the housing and transit reinvestment zone
308 funds outside of the housing and transit reinvestment zone will directly benefit the housing and
309 transit reinvestment zone.
310 (4) A municipality shall use housing and transit reinvestment zone funds to achieve the
311 purposes described in Subsections 63N-3-603(1) and (2), by paying all or part of the costs of
312 any of the following:
313 (a) structured parking within the housing and transit reinvestment zone;
314 (b) increased building and infrastructure costs caused by densification;
315 (c) horizontal construction costs;
316 (d) vertical construction costs;
317 (e) income targeted housing costs; or
318 (f) the costs of the municipality to create and administer the housing and transit
319 reinvestment zone, which may not exceed 1% of the total housing and transit reinvestment
320 zone funds.
321 (5) Housing and transit reinvestment zone funds may be paid to a participant, if the
322 housing and transit reinvestment zone and participant enter into a participation agreement
323 which requires the participant to utilize the housing and transit reinvestment zone funds as
324 allowed in this section.
325 (6) Housing and transit reinvestment zone funds may be used to pay all of the costs of
326 bonds issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency
327 Bonds, including the cost to issue and repay the bonds including interest.
328 (7) A municipality may create one or more public infrastructure districts within the
329 housing and transit reinvestment zone under Title 17B, Chapter 2a, Part 12, Public
330 Infrastructure District Act, and pledge and utilize the housing and transit reinvestment zone
331 funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure
332 district.
333 Section 8. Section 72-1-102 is amended to read:
334 72-1-102. Definitions.
335 As used in this title:
336 (1) "Circulator alley" means a publicly owned passageway:
337 (a) with a right-of-way width of 20 feet or greater;
338 (b) located within a master planned community;
339 (c) established by the city having jurisdictional authority as part of the street network
340 for traffic circulation that may also be used for:
341 (i) garbage collection;
342 (ii) access to residential garages; or
343 (iii) access rear entrances to a commercial establishment; and
344 (d) constructed with a bituminous or concrete pavement surface.
345 (2) "Commission" means the Transportation Commission created under Section
346 72-1-301.
347 (3) "Construction" means the construction, reconstruction, replacement, and
348 improvement of the highways, including the acquisition of rights-of-way and material sites.
349 (4) "Department" means the Department of Transportation created in Section 72-1-201.
350 (5) "Executive director" means the executive director of the department appointed
351 under Section 72-1-202.
352 (6) "Farm tractor" has the meaning set forth in Section 41-1a-102.
353 (7) "Federal aid primary highway" means that portion of connected main highways
354 located within this state officially designated by the department and approved by the United
355 States Secretary of Transportation under Title 23, Highways, U.S.C.
356 (8) "Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel,
357 culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the
358 public, or made public in an action for the partition of real property, including the entire area
359 within the right-of-way.
360 (9) "Highway authority" means the department or the legislative, executive, or
361 governing body of a county or municipality.
362 (10) "Housing and transit reinvestment zone" means the same as that term is defined in
363 Section 63N-3-602.
364 [
365 [
366 department and included as part of the national interstate and defense highways, as provided in
367 the Federal Aid Highway Act of 1956 and any supplemental acts or amendments.
368 [
369 through traffic, and over, from, or to which neither owners nor occupants of abutting lands nor
370 other persons have any right or easement, or have only a limited right or easement of access,
371 light, air, or view.
372 [
373 (a) designated by the city as a master planned community; and
374 (b) comprised of a single development agreement for a development larger than 500
375 acres.
376 [
377 [
378 [
379 main highways located within this state officially designated by the department and approved
380 by the United States Secretary of Transportation under Title 23, Highways, U.S.C.
381 [
382 operated, and maintained by the department where drivers, vehicles, and vehicle loads are
383 checked or inspected for compliance with state and federal laws as specified in Section
384 72-9-501.
385 (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
386 [
387 the duties specified in Section 72-9-501.
388 [
389 17B-2a-802.
390 [
391 passenger loading or unloading zone, parking lot, or other facility:
392 (a) leased by or operated by or on behalf of a public transit district; and
393 (b) related to the public transit services provided by the district, including:
394 (i) railway or other right-of-way;
395 (ii) railway line; and
396 (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
397 a transit vehicle.
398 [
399 in a strip, acquired for or devoted to a highway.
400 [
401 submitted bids or proposals in addition to bids or proposals manually sealed and submitted.
402 [
403 [
404 defined in this section.
405 [
406 Title 72, Chapter 4, Designation of State Highways Act.
407 [
408 72-5-102.
409 [
410 pathways, and thoroughfares of any kind, including connected structures, airports, aerial
411 corridor infrastructure, spaceports, public transit facilities, and all other modes and forms of
412 conveyance used by the public.
413 [
414 (30) "Transportation reinvestment zone" means a transportation reinvestment zone
415 created pursuant to Section 11-13-227.
416 [
417 [
418 [
419 Section 9. Section 72-1-304 is amended to read:
420 72-1-304. Written project prioritization process for new transportation capacity
421 projects -- Rulemaking.
422 (1) (a) The Transportation Commission, in consultation with the department and the
423 metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
424 prioritization process for the prioritization of:
425 (i) new transportation capacity projects that are or will be part of the state highway
426 system under Chapter 4, Part 1, State Highways;
427 (ii) paved pedestrian or paved nonmotorized transportation projects that:
428 (A) mitigate traffic congestion on the state highway system; and
429 (B) are part of an active transportation plan approved by the department;
430 (iii) public transit projects that add capacity to the public transit systems within the
431 state; and
432 (iv) pedestrian or nonmotorized transportation projects that provide connection to a
433 public transit system.
434 (b) (i) A local government or district may nominate a project for prioritization in
435 accordance with the process established by the commission in rule.
436 (ii) If a local government or district nominates a project for prioritization by the
437 commission, the local government or district shall provide data and evidence to show that:
438 (A) the project will advance the purposes and goals described in Section 72-1-211;
439 (B) for a public transit project, the local government or district has an ongoing funding
440 source for operations and maintenance of the proposed development; and
441 (C) the local government or district will provide 40% of the costs for the project as
442 required by Subsection 72-2-124(4)(a)(viii) or 72-2-124(9)(e).
443 (2) The following shall be included in the written prioritization process under
444 Subsection (1):
445 (a) a description of how the strategic initiatives of the department adopted under
446 Section 72-1-211 are advanced by the written prioritization process;
447 (b) a definition of the type of projects to which the written prioritization process
448 applies;
449 (c) specification of a weighted criteria system that is used to rank proposed projects
450 and how it will be used to determine which projects will be prioritized;
451 (d) specification of the data that is necessary to apply the weighted ranking criteria; and
452 (e) any other provisions the commission considers appropriate, which may include
453 consideration of:
454 (i) regional and statewide economic development impacts, including improved local
455 access to:
456 (A) employment;
457 (B) educational facilities;
458 (C) recreation;
459 (D) commerce; and
460 (E) residential areas, including moderate income housing as demonstrated in the local
461 government's or district's general plan pursuant to Section 10-9a-403 or 17-27a-403;
462 (ii) the extent to which local land use plans relevant to a project support and
463 accomplish the strategic initiatives adopted under Section 72-1-211; and
464 (iii) any matching funds provided by a political subdivision or public transit district in
465 addition to the 40% required by Subsections 72-2-124(4)(a)(viii) and 72-2-124(9)(e).
466 (3) (a) When prioritizing a public transit project that increases capacity, the
467 commission:
468 (i) may give priority consideration to projects that are part of a transit-oriented
469 development or transit-supportive development as defined in Section 17B-2a-802[
470 (ii) shall give priority consideration to projects that are part of a housing and transit
471 reinvestment zone created pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit
472 Reinvestment Zone Act.
473 (b) When prioritizing a [
474 the commission may give priority consideration to projects that are:
475 (i) part of a transportation reinvestment zone created under Section 11-13-227 if:
476 [
477 [
478 benefit to the state transportation system[
479 (ii) part of a housing and transit reinvestment zone created pursuant to Title 63N,
480 Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
481 (4) In developing the written prioritization process, the commission:
482 (a) shall seek and consider public comment by holding public meetings at locations
483 throughout the state; and
484 (b) may not consider local matching dollars as provided under Section 72-2-123 unless
485 the state provides an equal opportunity to raise local matching dollars for state highway
486 improvements within each county.
487 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
488 Transportation Commission, in consultation with the department, shall make rules establishing
489 the written prioritization process under Subsection (1).
490 (6) The commission shall submit the proposed rules under this section to a committee
491 or task force designated by the Legislative Management Committee for review prior to taking
492 final action on the proposed rules or any proposed amendment to the rules described in
493 Subsection (5).
494 Section 10. Section 72-2-201 is amended to read:
495 72-2-201. Definitions.
496 As used in this part:
497 (1) "Fund" means the State Infrastructure Bank Fund created under Section 72-2-202.
498 (2) "Infrastructure assistance" means any use of fund money, except an infrastructure
499 loan, to provide financial assistance for transportation projects, including:
500 (a) capital reserves and other security for bond or debt instrument financing; or
501 (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
502 a public entity to finance transportation projects.
503 (3) "Infrastructure loan" means a loan of fund money to finance a transportation
504 project.
505 (4) "Public entity" means a state agency, county, municipality, local district, special
506 service district, an intergovernmental entity organized under state law, or the military
507 installation development authority created in Section 63H-1-201.
508 (5) "Transportation project":
509 (a) means a project:
510 (i) to improve a state or local highway;
511 (ii) to improve a public transportation facility or nonmotorized transportation facility;
512 (iii) to construct or improve parking facilities; [
513 (iv) that is subject to a transportation reinvestment zone agreement pursuant to Section
514 11-13-227 if the state is party to the agreement; or
515 (v) that is part of a housing and transit reinvestment zone created pursuant to Title
516 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
517 (b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
518 equipping, and fixturing; and
519 (c) may only include a project if the project is part of:
520 (i) the statewide long range plan;
521 (ii) a regional transportation plan of the area metropolitan planning organization if a
522 metropolitan planning organization exists for the area; or
523 (iii) a local government general plan or economic development initiative.