Representative V. Lowry Snow proposes the following substitute bill:


1     
POINT OF THE MOUNTAIN STATE LAND AUTHORITY

2     
AMENDMENTS

3     
2022 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: V. Lowry Snow

6     
Senate Sponsor: Jerry W. Stevenson

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to the Point of the Mountain State Land
11     Authority.
12     Highlighted Provisions:
13          This bill:
14          ▸     authorizes the Point of the Mountain State Land Authority to impose an energy sales
15     and use tax and an energy tax and to collect impact fees and other development
16     fees;
17          ▸     modifies the membership of a loan committee;
18          ▸     moves the ability to approve a loan from the loan committee to the Authority board
19     and requires Executive Appropriations Committee approval for a loan from the
20     point of the mountain loan fund;
21          ▸     modifies a provision relating to Authority powers;
22          ▸     requires a lessee of point of the mountain state land to pay an annual fee and
23     provides for the levy and collection of the fee;
24          ▸     requires the Authority to be paid a portion of increased property tax revenue from
25     parcels of land transferred to a private owner;

26          ▸     modifies limitations on individuals serving as board members;
27          ▸     modifies the purposes of a closed meeting to include certain discussions relating to
28     the development of land owned by the state;
29          ▸     modifies provisions relating to an Authority infrastructure fund; and
30          ▸     makes technical changes.
31     Money Appropriated in this Bill:
32          None
33     Other Special Clauses:
34          None
35     Utah Code Sections Affected:
36     AMENDS:
37          10-1-304, as last amended by Laws of Utah 2021, Chapter 414 and last amended by
38     Coordination Clause, Laws of Utah 2021, Chapter 367
39          11-36a-102, as last amended by Laws of Utah 2021, Chapter 35
40          11-59-102, as last amended by Laws of Utah 2021, Chapter 415
41          11-59-104, as enacted by Laws of Utah 2021, Chapter 415
42          11-59-202, as last amended by Laws of Utah 2020, Chapter 354
43          11-59-306, as enacted by Laws of Utah 2018, Chapter 388
44          17D-4-102, as last amended by Laws of Utah 2021, Chapter 415 and renumbered and
45     amended by Laws of Utah 2021, Chapter 314
46          52-4-205, as last amended by Laws of Utah 2021, Chapters 179 and 231
47          59-2-924, as last amended by Laws of Utah 2021, Chapters 214 and 388
48          63A-3-401.5, as enacted by Laws of Utah 2021, Chapter 415
49          63A-3-402, as enacted by Laws of Utah 2021, Chapter 415
50          63A-3-404, as enacted by Laws of Utah 2021, Chapter 415
51     ENACTS:
52          11-59-205, Utah Code Annotated 1953
53          11-59-206, Utah Code Annotated 1953
54          11-59-207, Utah Code Annotated 1953
55          11-59-208, Utah Code Annotated 1953
56     REPEALS:

57          11-59-101, as enacted by Laws of Utah 2018, Chapter 388
58     

59     Be it enacted by the Legislature of the state of Utah:
60          Section 1. Section 10-1-304 is amended to read:
61          10-1-304. Municipality, military installation development authority, and Point of
62     the Mountain State Land Authority may levy tax -- Rate -- Imposition or repeal of tax --
63     Tax rate change -- Effective date -- Notice requirements -- Exemptions.
64          (1) (a) Except as provided in Subsections (4) and (5), a municipality may levy a
65     municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
66          (i) by ordinance as provided in Section 10-1-305; and
67          (ii) of up to 6% of the delivered value of the taxable energy.
68          (b) Subject to Section 63H-1-203, the military installation development authority
69     created in Section 63H-1-201 may levy a municipal energy sales and use tax under this part
70     within a project area described in a project area plan adopted by the authority under Title 63H,
71     Chapter 1, Military Installation Development Authority Act, as though the authority were a
72     municipality.
73          (c) (i) Beginning July 1, 2022, the Point of the Mountain State Land Authority, created
74     in Section 11-59-201, may by resolution levy a municipal energy sales and use tax under this
75     part within the area that constitutes the point of the mountain state land, as defined in Section
76     11-59-102, as though the Point of the Mountain State Land Authority were a municipality.
77          (ii) The Point of the Mountain State Land Authority's adoption of a resolution under
78     Subsection (1)(c)(i) that otherwise complies with the requirements under this part applicable to
79     an ordinance is considered the equivalent of adopting an ordinance under this part.
80          (2) A municipal energy sales and use tax imposed under this part may be in addition to
81     any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
82     Tax Act.
83          (3) (a) For purposes of this Subsection (3):
84          (i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
85     Annexation.
86          (ii) "Annexing area" means an area that is annexed into a municipality.
87          (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the

88     rate of a tax under this part, the enactment, repeal, or change shall take effect:
89          (A) on the first day of a calendar quarter; and
90          (B) after a 90-day period beginning on the date the commission receives notice meeting
91     the requirements of Subsection (3)(b)(ii) from the municipality.
92          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
93          (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
94     part;
95          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
96          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
97          (D) if the city or town enacts the tax or changes the rate of the tax described in
98     Subsection (3)(b)(ii)(A), the new rate of the tax.
99          (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
100     result in a change in the rate of a tax under this part for an annexing area, the change shall take
101     effect:
102          (A) on the first day of a calendar quarter; and
103          (B) after a 90-day period beginning on the date the commission receives notice meeting
104     the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
105          (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
106          (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
107     rate of a tax under this part for the annexing area;
108          (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
109          (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
110          (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
111          (4) (a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
112     exempt from the tax authorized by this section if the sale or use is made under a tariff adopted
113     by the Public Service Commission of Utah only for purchase of electricity produced from a
114     new source of alternative energy, as defined in Section 59-12-102, as designated in the tariff by
115     the Public Service Commission of Utah.
116          (b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
117     customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
118     the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.

119          (5) (a) A municipality may not levy a municipal energy sales and use tax:
120          (i) within any portion of the municipality that is within a project area described in a
121     project area plan adopted by the military installation development authority under Title 63H,
122     Chapter 1, Military Installation Development Authority Act[.]; or
123          (ii) on or after July 1, 2022, within the point of the mountain state land, as defined in
124     Section 11-59-102.
125          (b) Subsection (5)(a) does not apply to:
126          (i) the military installation development authority's levy of a municipal energy sales
127     and use tax[.]; or
128          (ii) the Point of the Mountain State Land Authority's levy of a municipal energy sales
129     and use tax.
130          Section 2. Section 11-36a-102 is amended to read:
131          11-36a-102. Definitions.
132          As used in this chapter:
133          (1) (a) "Affected entity" means each county, municipality, local district under Title
134     17B, Limited Purpose Local Government Entities - Local Districts, special service district
135     under Title 17D, Chapter 1, Special Service District Act, school district, interlocal cooperation
136     entity established under Chapter 13, Interlocal Cooperation Act, and specified public utility:
137          (i) whose services or facilities are likely to require expansion or significant
138     modification because of the facilities proposed in the proposed impact fee facilities plan; or
139          (ii) that has filed with the local political subdivision or private entity a copy of the
140     general or long-range plan of the county, municipality, local district, special service district,
141     school district, interlocal cooperation entity, or specified public utility.
142          (b) "Affected entity" does not include the local political subdivision or private entity
143     that is required under Section 11-36a-501 to provide notice.
144          (2) "Charter school" includes:
145          (a) an operating charter school;
146          (b) an applicant for a charter school whose application has been approved by a charter
147     school authorizer as provided in Title 53G, Chapter 5, Part 6, Charter School Credit
148     Enhancement Program; and
149          (c) an entity that is working on behalf of a charter school or approved charter applicant

150     to develop or construct a charter school building.
151          (3) "Development activity" means any construction or expansion of a building,
152     structure, or use, any change in use of a building or structure, or any changes in the use of land
153     that creates additional demand and need for public facilities.
154          (4) "Development approval" means:
155          (a) except as provided in Subsection (4)(b), any written authorization from a local
156     political subdivision that authorizes the commencement of development activity;
157          (b) development activity, for a public entity that may develop without written
158     authorization from a local political subdivision;
159          (c) a written authorization from a public water supplier, as defined in Section 73-1-4,
160     or a private water company:
161          (i) to reserve or provide:
162          (A) a water right;
163          (B) a system capacity; or
164          (C) a distribution facility; or
165          (ii) to deliver for a development activity:
166          (A) culinary water; or
167          (B) irrigation water; or
168          (d) a written authorization from a sanitary sewer authority, as defined in Section
169     10-9a-103:
170          (i) to reserve or provide:
171          (A) sewer collection capacity; or
172          (B) treatment capacity; or
173          (ii) to provide sewer service for a development activity.
174          (5) "Enactment" means:
175          (a) a municipal ordinance, for a municipality;
176          (b) a county ordinance, for a county; and
177          (c) a governing board resolution, for a local district, special service district, or private
178     entity.
179          (6) "Encumber" means:
180          (a) a pledge to retire a debt; or

181          (b) an allocation to a current purchase order or contract.
182          (7) "Expense for overhead" means a cost that a local political subdivision or private
183     entity:
184          (a) incurs in connection with:
185          (i) developing an impact fee facilities plan;
186          (ii) developing an impact fee analysis; or
187          (iii) imposing an impact fee, including any related overhead expenses; and
188          (b) calculates in accordance with a methodology that is consistent with generally
189     accepted cost accounting practices.
190          (8) "Hookup fee" means a fee for the installation and inspection of any pipe, line,
191     meter, or appurtenance to connect to a gas, water, sewer, storm water, power, or other utility
192     system of a municipality, county, local district, special service district, or private entity.
193          (9) (a) "Impact fee" means a payment of money imposed upon new development
194     activity as a condition of development approval to mitigate the impact of the new development
195     on public infrastructure.
196          (b) "Impact fee" does not mean a tax, a special assessment, a building permit fee, a
197     hookup fee, a fee for project improvements, or other reasonable permit or application fee.
198          (10) "Impact fee analysis" means the written analysis of each impact fee required by
199     Section 11-36a-303.
200          (11) "Impact fee facilities plan" means the plan required by Section 11-36a-301.
201          (12) "Level of service" means the defined performance standard or unit of demand for
202     each capital component of a public facility within a service area.
203          (13) (a) "Local political subdivision" means a county, a municipality, a local district
204     under Title 17B, Limited Purpose Local Government Entities - Local Districts, [or] a special
205     service district under Title 17D, Chapter 1, Special Service District Act, or the Point of the
206     Mountain State Land Authority, created in Section 11-59-201.
207          (b) "Local political subdivision" does not mean a school district, whose impact fee
208     activity is governed by Section 11-36a-206.
209          (14) "Private entity" means an entity in private ownership with at least 100 individual
210     shareholders, customers, or connections, that is located in a first, second, third, or fourth class
211     county and provides water to an applicant for development approval who is required to obtain

212     water from the private entity either as a:
213          (a) specific condition of development approval by a local political subdivision acting
214     pursuant to a prior agreement, whether written or unwritten, with the private entity; or
215          (b) functional condition of development approval because the private entity:
216          (i) has no reasonably equivalent competition in the immediate market; and
217          (ii) is the only realistic source of water for the applicant's development.
218          (15) (a) "Project improvements" means site improvements and facilities that are:
219          (i) planned and designed to provide service for development resulting from a
220     development activity;
221          (ii) necessary for the use and convenience of the occupants or users of development
222     resulting from a development activity; and
223          (iii) not identified or reimbursed as a system improvement.
224          (b) "Project improvements" does not mean system improvements.
225          (16) "Proportionate share" means the cost of public facility improvements that are
226     roughly proportionate and reasonably related to the service demands and needs of any
227     development activity.
228          (17) "Public facilities" means only the following impact fee facilities that have a life
229     expectancy of 10 or more years and are owned or operated by or on behalf of a local political
230     subdivision or private entity:
231          (a) water rights and water supply, treatment, storage, and distribution facilities;
232          (b) wastewater collection and treatment facilities;
233          (c) storm water, drainage, and flood control facilities;
234          (d) municipal power facilities;
235          (e) roadway facilities;
236          (f) parks, recreation facilities, open space, and trails;
237          (g) public safety facilities;
238          (h) environmental mitigation as provided in Section 11-36a-205; or
239          (i) municipal natural gas facilities.
240          (18) (a) "Public safety facility" means:
241          (i) a building constructed or leased to house police, fire, or other public safety entities;
242     or

243          (ii) a fire suppression vehicle costing in excess of $500,000.
244          (b) "Public safety facility" does not mean a jail, prison, or other place of involuntary
245     incarceration.
246          (19) (a) "Roadway facilities" means a street or road that has been designated on an
247     officially adopted subdivision plat, roadway plan, or general plan of a political subdivision,
248     together with all necessary appurtenances.
249          (b) "Roadway facilities" includes associated improvements to a federal or state
250     roadway only when the associated improvements:
251          (i) are necessitated by the new development; and
252          (ii) are not funded by the state or federal government.
253          (c) "Roadway facilities" does not mean federal or state roadways.
254          (20) (a) "Service area" means a geographic area designated by an entity that imposes an
255     impact fee on the basis of sound planning or engineering principles in which a public facility,
256     or a defined set of public facilities, provides service within the area.
257          (b) "Service area" may include the entire local political subdivision or an entire area
258     served by a private entity.
259          (21) "Specified public agency" means:
260          (a) the state;
261          (b) a school district; or
262          (c) a charter school.
263          (22) (a) "System improvements" means:
264          (i) existing public facilities that are:
265          (A) identified in the impact fee analysis under Section 11-36a-304; and
266          (B) designed to provide services to service areas within the community at large; and
267          (ii) future public facilities identified in the impact fee analysis under Section
268     11-36a-304 that are intended to provide services to service areas within the community at large.
269          (b) "System improvements" does not mean project improvements.
270          Section 3. Section 11-59-102 is amended to read:
271          11-59-102. Definitions.
272          As used in this chapter:
273          (1) "Authority" means the Point of the Mountain State Land Authority, created in

274     Section 11-59-201.
275          (2) "Board" means the authority's board, created in Section 11-59-301.
276          (3) "Development":
277          (a) means the construction, reconstruction, modification, expansion, or improvement of
278     a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
279     other facility, including:
280          (i) the demolition or preservation or repurposing of a building, infrastructure, or other
281     facility;
282          (ii) surveying, testing, locating existing utilities and other infrastructure, and other
283     preliminary site work; and
284          (iii) any associated planning, design, engineering, and related activities; and
285          (b) includes all activities associated with:
286          (i) marketing and business recruiting activities and efforts;
287          (ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
288     mountain state land; and
289          (iii) planning and funding for mass transit infrastructure to service the point of the
290     mountain state land.
291          (4) "New correctional facility" means the state correctional facility being developed in
292     Salt Lake City to replace the state correctional facility in Draper.
293          (5) "Point of the mountain state land" means the approximately 700 acres of
294     state-owned land in Draper, including land used for the operation of a state correctional facility
295     until completion of the new correctional facility and state-owned land in the vicinity of the
296     current state correctional facility.
297          (6) "Public entity" means:
298          (a) the state, including each department, division, or other agency of the state; or
299          (b) a county, city, town, metro township, school district, local district, special service
300     district, interlocal cooperation entity, community reinvestment agency, or other political
301     subdivision of the state, including the authority.
302          (7) "Publicly owned infrastructure and improvements":
303          (a) means infrastructure, improvements, facilities, or buildings that:
304          (i) benefit the public; and

305          (ii) (A) are owned by a public entity or a utility; or
306          (B) are publicly maintained or operated by a public entity; and
307          (b) includes:
308          (i) facilities, lines, or systems that provide:
309          (A) water, chilled water, or steam; or
310          (B) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
311     microgrids, or telecommunications service;
312          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
313     facilities, and public transportation facilities; and
314          (iii) greenspace, parks, trails, recreational amenities, or other similar facilities.
315          (8) "Taxing entity" means the same as that term is defined in Section 59-2-102.
316          Section 4. Section 11-59-104 is amended to read:
317          11-59-104. Loan committee -- Approval of infrastructure loans.
318          (1) As used in this section:
319          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
320          (b) "Infrastructure loan" means the same as that term is defined in Section
321     63A-3-401.5.
322          (c) "Infrastructure project" means the same as that term is defined in Section
323     63A-3-401.5.
324          (d) "Point of the mountain fund" means the same as that term is defined in Section
325     63A-3-401.5.
326          (e) "Loan [approval] committee" means a committee [consisting of:] established under
327     Subsection (2).
328          [(i) the board member:]
329          [(A) who is a member of the Senate appointed under Subsection 11-59-302(2)(a); and]
330          [(B) whose Senate district is closer to the boundary of the point of the mountain state
331     land than is the Senate district of the other member of the Senate appointed under Subsection
332     11-59-302(2)(a);]
333          [(ii) the board member:]
334          [(A) who is a member of the House of Representatives appointed under Subsection
335     11-59-302(2)(b); and]

336          [(B) whose House district is closer to the boundary of the point of the mountain state
337     land than is the House district of the other member of the House of Representatives appointed
338     under Subsection 11-59-302(2)(b);]
339          [(iii) the board member who is appointed by the governor under Subsection
340     11-59-302(2)(c)(i);]
341          [(iv) the board member who is appointed by the governor under Subsection
342     11-59-302(2)(c)(ii); and]
343          [(v) the board member who is the mayor of Draper or a member of the Draper city
344     council.]
345          (2) The authority shall establish a five-member loan committee consisting of:
346          (a) the individual who is the board member appointed by the governor under
347     Subsection 11-59-302(2)(c)(ii);
348          (b) the individual who is a board member under Subsection 11-59-302(2)(e) because
349     the individual is the mayor of Draper or a member of the Draper city council;
350          (c) the executive director of the Department of Transportation, or the executive
351     director's designee;
352          (d) an individual, appointed by the governor, who:
353          (i) is not an elected official; and
354          (ii) has expertise in public finance or infrastructure development; and
355          (e) an individual, appointed jointly by the president of the Senate and speaker of the
356     House of Representatives, who:
357          (i) is not an elected official; and
358          (ii) has expertise in public finance or infrastructure development.
359          [(2)] (3) (a) The loan [approval] committee may [approve] recommend for board
360     approval an infrastructure loan from the point of the mountain fund to a borrower for an
361     infrastructure project undertaken by the borrower.
362          (b) An infrastructure loan from the point of the mountain fund may not be made unless:
363          (i) the infrastructure loan is recommended by the loan committee; and
364          (ii) the board approves the infrastructure loan.
365          [(3)] (4) [The loan approval committee shall establish] If the loan committee
366     recommends an infrastructure loan, the loan committee shall recommend the terms of [an] the

367     infrastructure loan in accordance with Section 63A-3-404.
368          [(4)] (5) The [loan approval committee] board may establish policies and guidelines
369     with respect to prioritizing requests for infrastructure loans and approving infrastructure loans.
370          [(5)] (6) Within 60 days after the execution of an infrastructure loan, the [loan approval
371     committee] board shall report the infrastructure loan, including the loan amount, terms, and
372     security, to the Executive Appropriations Committee.
373          [(6)] (7) (a) Salaries and expenses of committee members who are legislators shall be
374     paid in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3,
375     Legislator Compensation.
376          (b) A committee member who is not a legislator may not receive compensation or
377     benefits for the member's service on the committee, but may receive per diem and
378     reimbursement for travel expenses incurred as a committee member at the rates established by
379     the Division of Finance under:
380          (i) Sections 63A-3-106 and 63A-3-107; and
381          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
382     63A-3-107.
383          Section 5. Section 11-59-202 is amended to read:
384          11-59-202. Authority powers.
385          The authority may:
386          (1) as provided in this chapter, plan, manage, and implement the development of the
387     point of the mountain state land, including the ongoing operation of facilities on the point of
388     the mountain state land;
389          (2) undertake, or engage a consultant to undertake, any study, effort, or activity the
390     board considers appropriate to assist or inform the board about any aspect of the proposed
391     development of the point of the mountain state land, including the best development model and
392     financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
393     under this section and Section 11-59-203;
394          (3) sue and be sued;
395          (4) enter into contracts generally, including a contract for the sharing of records under
396     Section 63G-2-206;
397          (5) buy, obtain an option upon, or otherwise acquire any interest in real or personal

398     property, as necessary to accomplish the duties and responsibilities of the authority, including
399     an interest in real property, apart from point of the mountain state land, or personal property,
400     outside point of the mountain state land, for publicly owned infrastructure and improvements,
401     if the board considers the purchase, option, or other interest acquisition to be necessary for
402     fulfilling the authority's development objectives;
403          (6) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
404     personal property;
405          (7) enter into a lease agreement on real or personal property, either as lessee or lessor;
406          (8) provide for the development of the point of the mountain state land under one or
407     more contracts, including the development of publicly owned infrastructure and improvements
408     and other infrastructure and improvements on or related to the point of the mountain state land;
409          (9) exercise powers and perform functions under a contract, as authorized in the
410     contract;
411          (10) accept financial or other assistance from any public or private source for the
412     authority's activities, powers, and duties, and expend any funds so received for any of the
413     purposes of this chapter;
414          (11) borrow money, contract with, or accept financial or other assistance from the
415     federal government, a public entity, or any other source for any of the purposes of this chapter
416     and comply with any conditions of the loan, contract, or assistance;
417          (12) issue bonds to finance the undertaking of any development objectives of the
418     authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
419     Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
420          (13) hire employees, including contract employees, in addition to or in place of staff
421     provided under Section 11-59-304;
422          (14) transact other business and exercise all other powers provided for in this chapter;
423          (15) enter into a development agreement with a developer of some or all of the point of
424     the mountain state land;
425          (16) provide for or finance an energy efficiency upgrade, a renewable energy system, or
426     electric vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with
427     Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
428          (17) exercise powers and perform functions that the authority is authorized by statute

429     to exercise or perform;
430          (18) enter into one or more interlocal agreements under Title 11, Chapter 13, Interlocal
431     Cooperation Act, with one or more local government entities for the delivery of services to the
432     point of the mountain state land; [and]
433          (19) enter into an agreement with the federal government or an agency of the federal
434     government, as the board considers necessary or advisable, to enable or assist the authority to
435     exercise its powers or fulfill its duties and responsibilities under this chapter[.];
436          (20) provide funding for the development of publicly owned infrastructure and
437     improvements or other infrastructure and improvements on or related to the point of the
438     mountain state land; and
439          (21) impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other fees
440     related to development activities.
441          Section 6. Section 11-59-205 is enacted to read:
442          11-59-205. Authority funds.
443          (1) Authority funds consist of all money that the authority receives from any source,
444     including:
445          (a) money appropriated by the Legislature;
446          (b) money from lease revenue;
447          (c) revenue from fees or other charges imposed by the authority; and
448          (d) other money paid to or acquired by the authority, as provided in this chapter or
449     other applicable law.
450          (2) The authority may use authority funds to carry out any of the powers of the
451     authority under this chapter or for any purpose authorized under this chapter, including:
452          (a) providing long-term benefits to the state from the development or use of point of
453     the mountain state land;
454          (b) investment in authority projects;
455          (c) repayment of point of the mountain infrastructure loans;
456          (d) repayment of or collateral for authority bonds;
457          (e) the sharing of money with other governmental entities under an interlocal
458     agreement; and
459          (f) paying any consulting fees, staff salaries, and other administrative, overhead, legal,

460     and operating expenses of the authority.
461          (3) The authority may not spend or use any money the authority receives under Section
462     10-1-304, 11-59-206, 11-59-207, or 11-59-208 until after June 30, 2023.
463          Section 7. Section 11-59-206 is enacted to read:
464          11-59-206. Energy sales and use tax.
465          (1) As provided in Subsection 10-1-304(1)(c), the authority may by resolution levy an
466     energy sales and use tax, under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use
467     Tax Act, on an energy supplier, as defined in Section 10-1-303, that supplies energy to a
468     facility on the point of the mountain state land.
469          (2) An energy sales and use tax under this section is subject to the maximum rate under
470     Subsection 10-3-304(1)(a)(ii), except that delivered value does not include the amount of a tax
471     paid under this section.
472          (3) (a) An energy supplier may recover from the energy supplier's customers an amount
473     equal to the energy sales and use tax, if the energy supplier includes the amount as a separate
474     billing line item.
475          (b) An energy sales and use tax levied under this section is in addition to the rate
476     approved by the Public Service Commission and charged to the customer.
477          (4) (a) An energy sales and use tax under this section is payable by the energy supplier
478     to the authority on a monthly basis as described by the ordinance levying the tax.
479          (b) A resolution levying an energy sales and use tax shall allow the energy supplier to
480     retain 1% of the tax remittance each month to offset the energy supplier's costs of collecting
481     and remitting the tax.
482          (5) Beginning July 1, 2022, a municipality may not levy an energy sales and use tax on
483     an energy supplier for energy that the energy supplier supplies to a facility located on the point
484     of the mountain state land.
485          Section 8. Section 11-59-207 is enacted to read:
486          11-59-207. Annual fee in lieu of property tax.
487          (1) As used in this section:
488          (a) "Annual fee" means a fee:
489          (i) that is levied and collected each year, as provided in this section; and
490          (ii) in an amount that is the equivalent of the cumulative real property tax that would

491     be levied and collected on leased property by all taxing entities if the leased property were not
492     exempt property.
493          (b) "Exempt property" means real property that is exempt from ad valorem property tax
494     because the real property is owned by the state.
495          (c) "Lease agreement" means an agreement by which a private person leases from the
496     state real property that is part of the point of the mountain state land.
497          (d) (i) "Leased property" means real property that:
498          (A) is part of the point of the mountain state land;
499          (B) is leased by a private person; and
500          (C) would be subject to ad valorem property tax if the real property were owned by the
501     private person.
502          (ii) "Leased property" includes attachments and other improvements to the real
503     property that would be included in an assessment of the value of the real property if the real
504     property were not exempt property.
505          (e) "Leased property value" means the value that leased property would have if the
506     leased property were subject to ad valorem property tax.
507          (f) "Lessee" means a private person that leases property that is part of the point of the
508     mountain state land under a lease agreement.
509          (2) Beginning January 1 of the year immediately following the execution of a lease
510     agreement, a lessee under the lease agreement shall pay an annual fee with respect to the leased
511     property that is the subject of the lease agreement.
512          (3) In a county in which the point of the mountain state land is located:
513          (a) the county assessor shall determine the leased property value of leased property that
514     is subject to an annual fee as though the leased property were subject to ad valorem property
515     tax;
516          (b) the county treasurer shall collect an annual fee in the same way and at the same
517     time that the treasurer would collect ad valorem property tax on the leased property if the
518     leased property were subject to ad valorem property tax;
519          (c) the county may retain an administrative fee for collecting and distributing the
520     annual fee in the same amount that would apply if the leased property were not exempt
521     property; and

522          (d) the county treasurer shall distribute to the authority all revenue from an annual fee
523     on leased property in the same way and at the same time as the treasurer distributes ad valorem
524     property tax revenue to taxing entities in accordance with Section 59-2-1365.
525          (4) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege
526     Tax.
527          Section 9. Section 11-59-208 is enacted to read:
528          11-59-208. Portion of property tax augmentation to be paid to authority.
529          (1) As used in this section:
530          (a) "Base taxable value" means the taxable value in the year before the transfer date.
531          (b) "Property tax augmentation":
532          (i) means the amount of property tax that is the difference between:
533          (A) the amount of property tax revenues generated each tax year by all taxing entities
534     from a transferred parcel, using the current assessed value of the property; and
535          (B) the amount of property tax revenues that would be generated from that same
536     transferred parcel using the base taxable value of the property; and
537          (ii) does not include property tax revenue from:
538          (A) a county additional property tax or multicounty assessing and collecting levy
539     imposed in accordance with Section 59-2-1602;
540          (B) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
541     or
542          (C) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
543     obligation bond.
544          (c) "Transfer date" means the date that fee title to land that is part of the point of the
545     mountain state land is transferred to a private person.
546          (d) "Transferred parcel" means a parcel of land:
547          (i) that is part of the point of the mountain state land; and
548          (ii) the fee title to which has been transferred to a private person.
549          (2) Beginning with the first tax year that begins on or after January 1, 2023, the
550     authority shall be paid 75% of property tax augmentation from a transferred parcel:
551          (a) for a period of 25 years beginning January 1 of the year immediately following the
552     transfer date for the transferred parcel; and

553          (b) for a period of an additional 15 years beyond the period stated in Subsection (2)(a)
554     if:
555          (i) the board determines by resolution that the additional years will produce a
556     significant benefit to the authority; and
557          (ii) the resolution is adopted before the end of the 25-year period under Subsection
558     (2)(a).
559          (3) A county that collects property tax on property within the county in which the point
560     of the mountain state land is located shall pay and distribute to the authority the amount of
561     property tax augmentation that the authority is entitled to collect under Subsection (2), in the
562     manner and at the time provided in Section 59-2-1365.
563          Section 10. Section 11-59-306 is amended to read:
564          11-59-306. Limitations on board members.
565          (1) As used in this section:
566          (a) "Designated individual" means an individual:
567          (i) (A) who is a member of the Senate or House of Representatives:
568          (B) who has been appointed as a member of the board under Subsection
569     11-59-302(2)(a) or (b); and
570          (C) whose legislative district includes some or all of the point of the mountain state
571     land; or
572          (ii) who is designated to serve as a board member under Subsection 11-59-302(2)(e) or
573     (f).
574          [(a)] (b) "Direct financial benefit":
575          (i) means any form of financial benefit that accrues to an individual directly as a result
576     of the development of the point of the mountain state land, including:
577          (A) compensation, commission, or any other form of a payment or increase of money;
578     and
579          (B) an increase in the value of a business or property; and
580          (ii) does not include a financial benefit that accrues to the public generally as a result of
581     the development of the point of the mountain state land.
582          [(b)] (c) "Family member" means a parent, spouse, sibling, child, or grandchild.
583          [(c)] (d) "Interest in real property" means every type of real property interest, whether

584     recorded or unrecorded, including:
585          (i) a legal or equitable interest;
586          (ii) an option on real property;
587          (iii) an interest under a contract;
588          (iv) fee simple ownership;
589          (v) ownership as a tenant in common or in joint tenancy or another joint ownership
590     arrangement;
591          (vi) ownership through a partnership, limited liability company, or corporation that
592     holds title to a real property interest in the name of the partnership, limited liability company,
593     or corporation;
594          (vii) leasehold interest; and
595          (viii) any other real property interest that is capable of being owned.
596          (2) An individual may not serve as a member of the board if:
597          (a) subject to Subsection (5) for a designated individual. the individual owns an interest
598     in real property, other than a personal residence in which the individual resides, on or within
599     five miles of the point of the mountain state land;
600          (b) a family member of the individual owns an interest in real property, other than a
601     personal residence in which the family member resides, located on or within one-half mile of
602     the point of the mountain state land; [or]
603          (c) the individual or a family member of the individual owns an interest in, is directly
604     affiliated with, or is an employee or officer of a firm, company, or other entity that the
605     individual reasonably believes is likely to participate in or receive compensation or other direct
606     financial benefit from the development of the point of the mountain state land[.]; or
607          (d) the individual or a family member of the individual receives or is expected to
608     receive a direct financial benefit.
609          (3) (a) Before taking office as a board member, an individual shall submit to the
610     authority a statement:
611          (i) verifying that the individual's service as a board member does not violate
612     Subsection (2)[.]; and
613          (ii) for a designated individual, identifying any interest in real property, other than a
614     personal residence in which the individual resides, located on or within five miles of the point

615     of the mountain state land.
616          (b) If a designated individual takes action, during the individual's service as a board
617     member, to initiate, negotiate, or otherwise arrange for the acquisition of an interest in real
618     property, other than a personal residence in which the individual intends to live, located on or
619     within five miles of the point of the mountain state land, the designated individual shall submit
620     a written statement to the board chair describing the action, the interest in real property that the
621     designated individual intends to acquire, and the location of the real property.
622          (4) [A] Except for a board member who is a designated individual, a board member
623     [may not,] is disqualified from further service as a board member if the board member, at any
624     time during the board member's service on the board, [take] takes any action to initiate,
625     negotiate, or otherwise arrange for the acquisition of an interest in real property, other than a
626     personal residence in which the member intends to reside, located on or within five miles of the
627     point of the mountain state land.
628          (5) A designated individual who submits a written statement under Subsection
629     (3)(a)(ii) or (b) may not serve or continue to serve as a board member unless at least two-thirds
630     of all other board members conclude that the designated individual's service as a board member
631     does not and will not create a material conflict of interest impairing the ability of the
632     designated individual to exercise fair and impartial judgment as a board member and to act in
633     the best interests of the authority.
634          [(5)] (6) (a) The board may not allow a firm, company, or other entity to participate in
635     planning, managing, or implementing the development of the point of the mountain state land
636     if a board member or a family member of a board member owns an interest in, is directly
637     affiliated with, or is an employee or officer of the firm, company, or other entity.
638          (b) Before allowing a firm, company, or other entity to participate in planning,
639     managing, or implementing the development of the point of the mountain state land, the board
640     may require the firm, company, or other entity to certify that no board member or family
641     member of a board member owns an interest in, is directly affiliated with, or is an employee or
642     officer of the firm, company, or other entity.
643          Section 11. Section 17D-4-102 is amended to read:
644          17D-4-102. Definitions.
645          As used in this chapter:

646          (1) "Board" means the board of trustees of a public infrastructure district.
647          (2) "Creating entity" means the county, municipality, or development authority that
648     approves the creation of a public infrastructure district.
649          (3) "Development authority" means:
650          (a) the Utah Inland Port Authority created in Section 11-58-201; [or]
651          (b) the Point of the Mountain State Land Authority created in Section 11-59-201; or
652          [(b)] (c) the military installation development authority created in Section 63H-1-201.
653          (4) "District applicant" means the person proposing the creation of a public
654     infrastructure district.
655          (5) "Division" means a division of a public infrastructure district:
656          (a) that is relatively equal in number of eligible voters or potential eligible voters to all
657     other divisions within the public infrastructure district, taking into account existing or potential
658     developments which, when completed, would increase or decrease the population within the
659     public infrastructure district; and
660          (b) which a member of the board represents.
661          (6) "Governing document" means the document governing a public infrastructure
662     district to which the creating entity agrees before the creation of the public infrastructure
663     district, as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
664     Provisions Applicable to All Local Districts, and this chapter.
665          (7) (a) "Limited tax bond" means a bond:
666          (i) that is directly payable from and secured by ad valorem property taxes that are
667     levied:
668          (A) by a public infrastructure district that issues the bond; and
669          (B) on taxable property within the district;
670          (ii) that is a general obligation of the public infrastructure district; and
671          (iii) for which the ad valorem property tax levy for repayment of the bond does not
672     exceed the property tax levy rate limit established under Section 17D-4-303 for any fiscal year,
673     except as provided in Subsection 17D-4-301(8).
674          (b) "Limited tax bond" does not include:
675          (i) a short-term bond;
676          (ii) a tax and revenue anticipation bond; or

677          (iii) a special assessment bond.
678          (8) "Public infrastructure and improvements" means:
679          (a) publicly owned infrastructure and improvements, as defined in Section 11-58-102,
680     for a public infrastructure district created by the Utah Inland Port Authority created in Section
681     11-58-201; and
682          (b) the same as that term is defined in Section 63H-1-102, for a public infrastructure
683     district created by the military installation development authority created in Section 63H-1-201.
684          Section 12. Section 52-4-205 is amended to read:
685          52-4-205. Purposes of closed meetings -- Certain issues prohibited in closed
686     meetings.
687          (1) A closed meeting described under Section 52-4-204 may only be held for:
688          (a) except as provided in Subsection (3), discussion of the character, professional
689     competence, or physical or mental health of an individual;
690          (b) strategy sessions to discuss collective bargaining;
691          (c) strategy sessions to discuss pending or reasonably imminent litigation;
692          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,
693     including any form of a water right or water shares, or to discuss a proposed development
694     agreement, project proposal, or financing proposal related to the development of land owned by
695     the state, if public discussion [of the transaction] would:
696          (i) disclose the appraisal or estimated value of the property under consideration; or
697          (ii) prevent the public body from completing the transaction on the best possible terms;
698          (e) strategy sessions to discuss the sale of real property, including any form of a water
699     right or water shares, if:
700          (i) public discussion of the transaction would:
701          (A) disclose the appraisal or estimated value of the property under consideration; or
702          (B) prevent the public body from completing the transaction on the best possible terms;
703          (ii) the public body previously gave public notice that the property would be offered for
704     sale; and
705          (iii) the terms of the sale are publicly disclosed before the public body approves the
706     sale;
707          (f) discussion regarding deployment of security personnel, devices, or systems;

708          (g) investigative proceedings regarding allegations of criminal misconduct;
709          (h) as relates to the Independent Legislative Ethics Commission, conducting business
710     relating to the receipt or review of ethics complaints;
711          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
712     Subsection 52-4-204(1)(a)(iii)(C);
713          (j) as relates to the Independent Executive Branch Ethics Commission created in
714     Section 63A-14-202, conducting business relating to an ethics complaint;
715          (k) as relates to a county legislative body, discussing commercial information as
716     defined in Section 59-1-404;
717          (l) as relates to the Utah Higher Education Assistance Authority and its appointed
718     board of directors, discussing fiduciary or commercial information as defined in Section
719     53B-12-102;
720          (m) deliberations, not including any information gathering activities, of a public body
721     acting in the capacity of:
722          (i) an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
723     during the process of evaluating responses to a solicitation, as defined in Section 63G-6a-103;
724          (ii) a protest officer, defined in Section 63G-6a-103, during the process of making a
725     decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
726          (iii) a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
727     Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part 17,
728     Procurement Appeals Board;
729          (n) the purpose of considering information that is designated as a trade secret, as
730     defined in Section 13-24-2, if the public body's consideration of the information is necessary in
731     order to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement Code;
732          (o) the purpose of discussing information provided to the public body during the
733     procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the time of
734     the meeting:
735          (i) the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be
736     disclosed to a member of the public or to a participant in the procurement process; and
737          (ii) the public body needs to review or discuss the information in order to properly
738     fulfill its role and responsibilities in the procurement process;

739          (p) as relates to the governing board of a governmental nonprofit corporation, as that
740     term is defined in Section 11-13a-102, the purpose of discussing information that is designated
741     as a trade secret, as that term is defined in Section 13-24-2, if:
742          (i) public knowledge of the discussion would reasonably be expected to result in injury
743     to the owner of the trade secret; and
744          (ii) discussion of the information is necessary for the governing board to properly
745     discharge the board's duties and conduct the board's business; or
746          (q) a purpose for which a meeting is required to be closed under Subsection (2).
747          (2) The following meetings shall be closed:
748          (a) a meeting of the Health and Human Services Interim Committee to review a report
749     described in Subsection 62A-16-301(1)(a), and the responses to the report described in
750     Subsections 62A-16-301(2) and (4);
751          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
752          (i) review a report described in Subsection 62A-16-301(1)(a), and the responses to the
753     report described in Subsections 62A-16-301(2) and (4); or
754          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207(5);
755          (c) a meeting of the Opioid and Overdose Fatality Review Committee, created in
756     Section 26-7-13, to review and discuss an individual case, as described in Subsection
757     26-7-13(10);
758          (d) a meeting of a conservation district as defined in Section 17D-3-102 for the
759     purpose of advising the Natural Resource Conservation Service of the United States
760     Department of Agriculture on a farm improvement project if the discussed information is
761     protected information under federal law;
762          (e) a meeting of the Compassionate Use Board established in Section 26-61a-105 for
763     the purpose of reviewing petitions for a medical cannabis card in accordance with Section
764     26-61a-105; and
765          (f) a meeting of the Colorado River Authority of Utah if:
766          (i) the purpose of the meeting is to discuss an interstate claim to the use of the water in
767     the Colorado River system; and
768          (ii) failing to close the meeting would:
769          (A) reveal the contents of a record classified as protected under Subsection

770     63G-2-305(82);
771          (B) reveal a legal strategy relating to the state's claim to the use of the water in the
772     Colorado River system;
773          (C) harm the ability of the Colorado River Authority of Utah or river commissioner to
774     negotiate the best terms and conditions regarding the use of water in the Colorado River
775     system; or
776          (D) give an advantage to another state or to the federal government in negotiations
777     regarding the use of water in the Colorado River system.
778          (3) In a closed meeting, a public body may not:
779          (a) interview a person applying to fill an elected position;
780          (b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,
781     Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in Elected Office;
782     or
783          (c) discuss the character, professional competence, or physical or mental health of the
784     person whose name was submitted for consideration to fill a midterm vacancy or temporary
785     absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and Vacancy and
786     Temporary Absence in Elected Office.
787          Section 13. Section 59-2-924 is amended to read:
788          59-2-924. Definitions -- Report of valuation of property to county auditor and
789     commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
790     rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
791     commission.
792          (1) As used in this section:
793          (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
794     this chapter.
795          (ii) "Ad valorem property tax revenue" does not include:
796          (A) interest;
797          (B) penalties;
798          (C) collections from redemptions; or
799          (D) revenue received by a taxing entity from personal property that is semiconductor
800     manufacturing equipment assessed by a county assessor in accordance with Part 3, County

801     Assessment.
802          (b) "Adjusted tax increment" means the same as that term is defined in Section
803     17C-1-102.
804          (c) (i) "Aggregate taxable value of all property taxed" means:
805          (A) the aggregate taxable value of all real property a county assessor assesses in
806     accordance with Part 3, County Assessment, for the current year;
807          (B) the aggregate taxable value of all real and personal property the commission
808     assesses in accordance with Part 2, Assessment of Property, for the current year; and
809          (C) the aggregate year end taxable value of all personal property a county assessor
810     assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
811     of the taxing entity.
812          (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
813     end taxable value of personal property that is:
814          (A) semiconductor manufacturing equipment assessed by a county assessor in
815     accordance with Part 3, County Assessment; and
816          (B) contained on the prior year's tax rolls of the taxing entity.
817          (d) "Base taxable value" means:
818          (i) for an authority created under Section 11-58-201, the same as that term is defined in
819     Section 11-58-102;
820          (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
821     the same as that term is defined in Section 11-59-207;
822          [(ii)] (iii) for an agency created under Section 17C-1-201.5, the same as that term is
823     defined in Section 17C-1-102;
824          [(iii)] (iv) for an authority created under Section 63H-1-201, the same as that term is
825     defined in Section 63H-1-102; or
826          [(iv)] (v) for a host local government, the same as that term is defined in Section
827     63N-2-502.
828          (e) "Centrally assessed benchmark value" means an amount equal to the highest year
829     end taxable value of real and personal property the commission assesses in accordance with
830     Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
831     2015, adjusted for taxable value attributable to:

832          (i) an annexation to a taxing entity; or
833          (ii) an incorrect allocation of taxable value of real or personal property the commission
834     assesses in accordance with Part 2, Assessment of Property.
835          (f) (i) "Centrally assessed new growth" means the greater of:
836          (A) zero; or
837          (B) the amount calculated by subtracting the centrally assessed benchmark value
838     adjusted for prior year end incremental value from the taxable value of real and personal
839     property the commission assesses in accordance with Part 2, Assessment of Property, for the
840     current year, adjusted for current year incremental value.
841          (ii) "Centrally assessed new growth" does not include a change in value as a result of a
842     change in the method of apportioning the value prescribed by the Legislature, a court, or the
843     commission in an administrative rule or administrative order.
844          (g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
845     tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
846          (h) "Community reinvestment agency" means the same as that term is defined in
847     Section 17C-1-102.
848          (i) "Eligible new growth" means the greater of:
849          (i) zero; or
850          (ii) the sum of:
851          (A) locally assessed new growth;
852          (B) centrally assessed new growth; and
853          (C) project area new growth or hotel property new growth.
854          (j) "Host local government" means the same as that term is defined in Section
855     63N-2-502.
856          (k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
857          (l) "Hotel property new growth" means an amount equal to the incremental value that
858     is no longer provided to a host local government as incremental property tax revenue.
859          (m) "Incremental property tax revenue" means the same as that term is defined in
860     Section 63N-2-502.
861          (n) "Incremental value" means:
862          (i) for an authority created under Section 11-58-201, the amount calculated by

863     multiplying:
864          (A) the difference between the taxable value and the base taxable value of the property
865     that is located within a project area and on which property tax differential is collected; and
866          (B) the number that represents the percentage of the property tax differential that is
867     paid to the authority;
868          (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
869     an amount calculated by multiplying:
870          (A) the difference between the current assessed value of the property and the base
871     taxable value; and
872          (B) the number that represents the percentage of the property tax augmentation, as
873     defined in Section 11-59-207, that is paid to the Point of the Mountain State Land Authority;

874          [(ii)] (iii) for an agency created under Section 17C-1-201.5, the amount calculated by
875     multiplying:
876          (A) the difference between the taxable value and the base taxable value of the property
877     located within a project area and on which tax increment is collected; and
878          (B) the number that represents the adjusted tax increment from that project area that is
879     paid to the agency;
880          [(iii)] (iv) for an authority created under Section 63H-1-201, the amount calculated by
881     multiplying:
882          (A) the difference between the taxable value and the base taxable value of the property
883     located within a project area and on which property tax allocation is collected; and
884          (B) the number that represents the percentage of the property tax allocation from that
885     project area that is paid to the authority; or
886          [(iv)] (v) for a host local government, an amount calculated by multiplying:
887          (A) the difference between the taxable value and the base taxable value of the hotel
888     property on which incremental property tax revenue is collected; and
889          (B) the number that represents the percentage of the incremental property tax revenue
890     from that hotel property that is paid to the host local government.
891          (o) (i) "Locally assessed new growth" means the greater of:
892          (A) zero; or

893          (B) the amount calculated by subtracting the year end taxable value of real property the
894     county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
895     adjusted for prior year end incremental value from the taxable value of real property the county
896     assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
897     for current year incremental value.
898          (ii) "Locally assessed new growth" does not include a change in:
899          (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
900     another adjustment;
901          (B) assessed value based on whether a property is allowed a residential exemption for a
902     primary residence under Section 59-2-103;
903          (C) assessed value based on whether a property is assessed under Part 5, Farmland
904     Assessment Act; or
905          (D) assessed value based on whether a property is assessed under Part 17, Urban
906     Farming Assessment Act.
907          (p) "Project area" means:
908          (i) for an authority created under Section 11-58-201, the same as that term is defined in
909     Section 11-58-102;
910          (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
911     in Section 17C-1-102; or
912          (iii) for an authority created under Section 63H-1-201, the same as that term is defined
913     in Section 63H-1-102.
914          (q) "Project area new growth" means:
915          (i) for an authority created under Section 11-58-201, an amount equal to the
916     incremental value that is no longer provided to an authority as property tax differential;
917          (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
918     an amount equal to the incremental value that is no longer provided to the Point of the
919     Mountain State Land Authority as property tax augmentation, as defined in Section 11-59-207;
920          [(ii)] (iii) for an agency created under Section 17C-1-201.5, an amount equal to the
921     incremental value that is no longer provided to an agency as tax increment; or
922          [(iii)] (iv) for an authority created under Section 63H-1-201, an amount equal to the
923     incremental value that is no longer provided to an authority as property tax allocation.

924          (r) "Project area incremental revenue" means the same as that term is defined in
925     Section 17C-1-1001.
926          (s) "Property tax allocation" means the same as that term is defined in Section
927     63H-1-102.
928          (t) "Property tax differential" means the same as that term is defined in Section
929     11-58-102.
930          (u) "Qualifying exempt revenue" means revenue received:
931          (i) for the previous calendar year;
932          (ii) by a taxing entity;
933          (iii) from tangible personal property contained on the prior year's tax rolls that is
934     exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year beginning on
935     January 1, 2022; and
936          (iv) on the aggregate 2021 year end taxable value of the tangible personal property that
937     exceeds $15,300.
938          (v) "Tax increment" means the same as that term is defined in Section 17C-1-102.
939          (2) Before June 1 of each year, the county assessor of each county shall deliver to the
940     county auditor and the commission the following statements:
941          (a) a statement containing the aggregate valuation of all taxable real property a county
942     assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
943          (b) a statement containing the taxable value of all personal property a county assessor
944     assesses in accordance with Part 3, County Assessment, from the prior year end values.
945          (3) The county auditor shall, on or before June 8, transmit to the governing body of
946     each taxing entity:
947          (a) the statements described in Subsections (2)(a) and (b);
948          (b) an estimate of the revenue from personal property;
949          (c) the certified tax rate; and
950          (d) all forms necessary to submit a tax levy request.
951          (4) (a) Except as otherwise provided in this section, the certified tax rate shall be
952     calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
953     prior year minus the qualifying exempt revenue by the amount calculated under Subsection
954     (4)(b).

955          (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
956     calculate an amount as follows:
957          (i) calculate for the taxing entity the difference between:
958          (A) the aggregate taxable value of all property taxed; and
959          (B) any adjustments for current year incremental value;
960          (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
961     determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the
962     average of the percentage net change in the value of taxable property for the equalization
963     period for the three calendar years immediately preceding the current calendar year;
964          (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
965     of:
966          (A) the amount calculated under Subsection (4)(b)(ii); and
967          (B) the percentage of property taxes collected for the five calendar years immediately
968     preceding the current calendar year; and
969          (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
970     determined by:
971          (A) multiplying the percentage of property taxes collected for the five calendar years
972     immediately preceding the current calendar year by eligible new growth; and
973          (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount
974     calculated under Subsection (4)(b)(iii).
975          (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
976     calculated as follows:
977          (a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
978     tax rate is zero;
979          (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
980          (i) in a county of the first, second, or third class, the levy imposed for municipal-type
981     services under Sections 17-34-1 and 17-36-9; and
982          (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
983     purposes and such other levies imposed solely for the municipal-type services identified in
984     Section 17-34-1 and Subsection 17-36-3(23);
985          (c) for a community reinvestment agency that received all or a portion of a taxing

986     entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10,
987     Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4)
988     except that the commission shall treat the total revenue transferred to the community
989     reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the
990     prior year; and
991          (d) for debt service voted on by the public, the certified tax rate is the actual levy
992     imposed by that section, except that a certified tax rate for the following levies shall be
993     calculated in accordance with Section 59-2-913 and this section:
994          (i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
995          (ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
996     orders under Section 59-2-1602.
997          (6) (a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be
998     imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
999     eligible judgments.
1000          (b) The ad valorem property tax revenue generated by a judgment levy described in
1001     Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
1002     rate.
1003          (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
1004          (i) the taxable value of real property:
1005          (A) the county assessor assesses in accordance with Part 3, County Assessment; and
1006          (B) contained on the assessment roll;
1007          (ii) the year end taxable value of personal property:
1008          (A) a county assessor assesses in accordance with Part 3, County Assessment; and
1009          (B) contained on the prior year's assessment roll; and
1010          (iii) the taxable value of real and personal property the commission assesses in
1011     accordance with Part 2, Assessment of Property.
1012          (b) For purposes of Subsection (7)(a), taxable value does not include eligible new
1013     growth.
1014          (8) (a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
1015          (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
1016     notify the county auditor of:

1017          (i) the taxing entity's intent to exceed the certified tax rate; and
1018          (ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
1019          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
1020     exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
1021          (9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through
1022     electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
1023     Committee if:
1024          (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
1025     taxable value of the real and personal property the commission assesses in accordance with
1026     Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
1027     value; and
1028          (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
1029     taxable value of the real and personal property of a taxpayer the commission assesses in
1030     accordance with Part 2, Assessment of Property, for the previous year.
1031          (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
1032     subtracting the taxable value of real and personal property the commission assesses in
1033     accordance with Part 2, Assessment of Property, for the current year, adjusted for current year
1034     incremental value, from the year end taxable value of the real and personal property the
1035     commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
1036     adjusted for prior year end incremental value.
1037          (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
1038     subtracting the total taxable value of real and personal property of a taxpayer the commission
1039     assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
1040     year end taxable value of the real and personal property of a taxpayer the commission assesses
1041     in accordance with Part 2, Assessment of Property, for the previous year.
1042          (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
1043     the requirement under Subsection (9)(a)(ii).
1044          Section 14. Section 63A-3-401.5 is amended to read:
1045          63A-3-401.5. Definitions.
1046          As used in this part:
1047          (1) "Borrower" means a person who borrows money from an infrastructure fund for an

1048     infrastructure project.
1049          (2) "Independent political subdivision" means:
1050          (a) the Utah Inland Port Authority created in Section 11-58-201;
1051          (b) the Point of the Mountain State Land Authority created in Section 11-59-201; or
1052          (c) the Military Installation Development Authority created in Section 63H-1-201.
1053          (3) "Infrastructure fund" means a fund created in Subsection 63A-3-402(1).
1054          (4) "Infrastructure loan" means a loan of infrastructure fund money to finance an
1055     infrastructure project.
1056          (5) "Infrastructure project" means a project to acquire, construct, reconstruct,
1057     rehabilitate, equip, or improve public infrastructure and improvements:
1058          (a) within a project area; or
1059          (b) outside a project area, if the respective loan approval [committee] body determines
1060     by resolution that the public infrastructure and improvements are of benefit to the project area.
1061          (6) "Inland port" means the same as that term is defined in Section 11-58-102.
1062          (7) "Inland port fund" means the infrastructure fund created in Subsection
1063     63A-3-402(1)(a).
1064          (8) "Military development fund" means the infrastructure fund created in Subsection
1065     63A-3-402(1)(c).
1066          (9) "Point of the mountain fund" means the infrastructure fund created in Subsection
1067     63A-3-402(1)(b).
1068          (10) "Project area" means:
1069          (a) the same as that term is defined in Section 11-58-102, for purposes of an
1070     infrastructure loan from the inland port fund;
1071          (b) the point of the mountain state land, as defined in Section 11-59-102, for purposes
1072     of an infrastructure loan from the point of the mountain fund; and
1073          (c) the same as that term is defined in Section 63H-1-102, for purposes of an
1074     infrastructure loan from the military development fund.
1075          (11) "Property tax revenue" means:
1076          (a) property tax differential, as defined in Section 11-58-102, for purposes of an
1077     infrastructure loan from the inland port fund; or
1078          (b) property tax allocation, as defined in Section 63H-1-102, for purposes of an

1079     infrastructure loan from the military development fund.
1080          (12) "Public infrastructure and improvements":
1081          (a) for purposes of an infrastructure loan from the inland port fund:
1082          (i) means publicly owned infrastructure and improvements, as defined in Section
1083     11-58-102; and
1084          (ii) includes an inland port facility; [and]
1085          (b) means publicly owned infrastructure and improvements, as defined in Section
1086     11-59-102, for purposes of an infrastructure loan from the point of the mountain fund; and
1087          [(b)] (c) means the same as that term is defined in Section 63H-1-102, for purposes of
1088     an infrastructure loan from the military development fund.
1089          (13) "Respective loan approval [committee] body" means:
1090          (a) the committee created in Section 11-58-106, for purposes of an infrastructure loan
1091     from the inland port fund;
1092          (b) the [committee] board created in Section [11-59-104] 11-59-301, for purposes of an
1093     infrastructure loan from the point of the mountain fund; and
1094          (c) the committee created in Section 63H-1-104, for purposes of an infrastructure loan
1095     from the military development fund.
1096          Section 15. Section 63A-3-402 is amended to read:
1097          63A-3-402. Infrastructure funds established -- Purpose of funds -- Use of money
1098     in funds.
1099          (1) There are created, as enterprise revolving loan funds:
1100          (a) the inland port infrastructure revolving loan fund;
1101          (b) the point of the mountain infrastructure revolving loan fund; and
1102          (c) the military development infrastructure revolving loan fund.
1103          (2) The purpose of each infrastructure fund is to provide funding, through
1104     infrastructure loans, for infrastructure projects undertaken by a borrower.
1105          (3) (a) Money in an infrastructure fund may be used only to provide loans for
1106     infrastructure projects.
1107          (b) The division may not loan money in an infrastructure fund without the approval of:
1108          (i) the respective loan approval [committee.] body; and
1109          (ii) the Executive Appropriations Committee of the Legislature, for a loan from the

1110     point of the mountain fund.
1111          Section 16. Section 63A-3-404 is amended to read:
1112          63A-3-404. Loan agreement.
1113          (1) (a) A borrower that borrows money from an infrastructure fund shall enter into a
1114     loan agreement with the division for repayment of the money.
1115          (b) (i) A loan agreement under Subsection (1)(a) shall be secured by:
1116          (A) bonds, notes, or another evidence of indebtedness validly issued under state law; or
1117          (B) revenue generated from an infrastructure project.
1118          (ii) The security provided under Subsection (1)(b)(i) may include the borrower's pledge
1119     of some or all of a revenue source that the borrower controls.
1120          (c) The respective loan approval [committee] body may determine that property tax
1121     revenue or revenue from the infrastructure project for which the infrastructure loan is obtained
1122     is sufficient security for an infrastructure loan.
1123          (2) An infrastructure loan shall bear interest at a rate not to exceed .5% above bond
1124     market interest rates available to the state.
1125          (3) (a) Subject to Subsection (3)(b), the respective loan approval [committee] body
1126     shall determine the length of term of an infrastructure loan.
1127          (b) If the security for an infrastructure loan is property tax revenue, the repayment
1128     terms of the infrastructure loan agreement shall allow sufficient time for the property tax
1129     revenue to generate sufficient money to cover payments under the infrastructure loan.
1130          (4) An infrastructure loan agreement may provide for a portion of the loan proceeds to
1131     be applied to a reserve fund to secure repayment of the infrastructure loan.
1132          (5) (a) If a borrower fails to comply with the terms of an infrastructure loan agreement,
1133     the division may:
1134          (i) seek any legal or equitable remedy to obtain:
1135          (A) compliance with the agreement; or
1136          (B) the payment of damages; and
1137          (ii) request a state agency with money due to the borrower to withhold payment of the
1138     money to the borrower and instead to pay the money to the division to pay any amount due
1139     under the infrastructure loan agreement.
1140          (b) A state agency that receives a request from the division under Subsection (5)(a)(ii)

1141     shall pay to the division the money due to the borrower to the extent of the amount due under
1142     the infrastructure loan agreement.
1143          (6) Upon approval from the respective loan approval [committee] body, the division
1144     shall loan money from an infrastructure fund according to the terms established by the
1145     respective loan approval [committee] body.
1146          (7) (a) The division shall administer and enforce an infrastructure loan according to the
1147     terms of the infrastructure loan agreement.
1148          (b) (i) Beginning May 5, 2021, the division shall assume responsibility from the State
1149     Infrastructure Bank Fund for servicing the loan under Subsection 63B-27-101(3)(a).
1150          (ii) Payments due after May 5, 2021 under the loan under Subsection 63B-27-101(3)(a)
1151     shall be made to the division rather than to the State Infrastructure Bank Fund, to be deposited
1152     into the military development fund.
1153          Section 17. Repealer.
1154          This bill repeals:
1155          Section 11-59-101, Title.