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8 LONG TITLE
9 General Description:
10 This bill amends provisions governing the Military Installation Development Authority
11 and related funds.
12 Highlighted Provisions:
13 This bill:
14 ▸ exempts the Military Installation Development Authority (authority) from
15 physically posting notice;
16 ▸ modifies provisions governing money repaid to the military development
17 infrastructure revolving loan fund;
18 ▸ directs the Division of Finance to deposit an amount equal to interest payments on
19 certain highway bonds into the Transportation Investment Fund of 2005;
20 ▸ redirects certain highway bond proceeds to the military development infrastructure
21 revolving loan fund;
22 ▸ authorizes an authority subsidiary to:
23 • create tax areas;
24 • apply different property tax rates to each tax area; and
25 • secure a bond from property taxes from one or more tax areas;
26 ▸ exempts the authority from Title 57, Chapter 11, Utah Uniform Land Sales Practices
27 Act, in certain circumstances;
28 ▸ provides that an official act by an officer who has failed to take the oath of office
29 may not be invalidated due to failure to take the oath;
30 ▸ prohibits a person who gives consent for the person's land to be included in a project
31 area from revoking that consent;
32 ▸ authorizes the authority to enforce a delinquent annual payment in the same manner
33 as a delinquent property tax;
34 ▸ amends provisions governing notice of the authority's public hearing on an annual
35 budget;
36 ▸ directs the Department of Transportation to transfer a loan made from the State
37 Infrastructure Bank Fund to the military development infrastructure revolving loan
38 fund; and
39 ▸ makes conforming changes.
40 Money Appropriated in this Bill:
41 None
42 Other Special Clauses:
43 None
44 Utah Code Sections Affected:
45 AMENDS:
46 59-2-1317, as last amended by Laws of Utah 2021, Chapter 314
47 63A-3-403, as enacted by Laws of Utah 2021, Chapter 415
48 63A-3-404, as enacted by Laws of Utah 2021, Chapter 415
49 63B-27-101, as last amended by Laws of Utah 2020, Chapter 366
50 63H-1-104, as enacted by Laws of Utah 2021, Chapter 415
51 63H-1-202, as last amended by Laws of Utah 2021, Chapter 414
52 63H-1-401, as last amended by Laws of Utah 2012, Chapter 80
53 63H-1-501, as last amended by Laws of Utah 2020, Chapter 282
54 63H-1-502, as last amended by Laws of Utah 2021, Chapter 414
55 63H-1-701, as last amended by Laws of Utah 2021, Chapters 84 and 345
56 72-2-202, as last amended by Laws of Utah 2021, Chapter 121
57
58 Be it enacted by the Legislature of the state of Utah:
59 Section 1. Section 59-2-1317 is amended to read:
60 59-2-1317. Tax notice -- Contents of notice -- Procedures and requirements for
61 providing notice.
62 (1) As used in this section, "political subdivision lien" means the same as that term is
63 defined in Section 11-60-102.
64 (2) Subject to the other provisions of this section, the county treasurer shall:
65 (a) collect the taxes and tax notice charges; and
66 (b) provide a notice to each taxpayer that contains the following:
67 (i) the kind and value of property assessed to the taxpayer;
68 (ii) the street address of the property, if available to the county;
69 (iii) that the property may be subject to a detailed review in the next year under Section
70 59-2-303.1;
71 (iv) the amount of taxes levied;
72 (v) a separate statement of the taxes levied only on a certain kind or class of property
73 for a special purpose;
74 (vi) property tax information pertaining to taxpayer relief, options for payment of
75 taxes, and collection procedures;
76 (vii) any tax notice charges applicable to the property, including:
77 (A) if applicable, a political subdivision lien for road damage that a railroad company
78 causes, as described in Section 10-7-30;
79 (B) if applicable, a political subdivision lien for municipal water distribution, as
80 described in Section 10-8-17, or a political subdivision lien for an increase in supply from a
81 municipal water distribution, as described in Section 10-8-19;
82 (C) if applicable, a political subdivision lien for unpaid abatement fees as described in
83 Section 10-11-4;
84 (D) if applicable, a political subdivision lien for the unpaid portion of an assessment
85 assessed in accordance with Title 11, Chapter 42, Assessment Area Act, or Title 11, Chapter
86 42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and
87 interest as of the date the local entity certifies the unpaid amount to the county treasurer;
88 (E) if applicable, for a local district in accordance with Section 17B-1-902, a political
89 subdivision lien for an unpaid fee, administrative cost, or interest;
90 (F) if applicable, a political subdivision lien for an unpaid irrigation district use charge
91 as described in Section 17B-2a-506;
92 (G) if applicable, a political subdivision lien for a contract assessment under a water
93 contract, as described in Section 17B-2a-1007; [
94 (H) if applicable, a property tax penalty that a public infrastructure district imposes, as
95 described in Section 17D-4-304; and
96 (I) if applicable, an annual payment to the Military Installation Development Authority
97 or an entity designated by the authority in accordance with Section 63H-1-501;
98 (viii) if a county's tax notice includes an assessment area charge, a statement that, due
99 to potentially ongoing assessment area charges, costs, penalties, and interest, payment of a tax
100 notice charge may not:
101 (A) pay off the full amount the property owner owes to the tax notice entity; or
102 (B) cause a release of the lien underlying the tax notice charge;
103 (ix) the date the taxes and tax notice charges are due;
104 (x) the street address at which the taxes and tax notice charges may be paid;
105 (xi) the date on which the taxes and tax notice charges are delinquent;
106 (xii) the penalty imposed on delinquent taxes and tax notice charges;
107 (xiii) a statement that explains the taxpayer's right to direct allocation of a partial
108 payment in accordance with Subsection (9);
109 (xiv) other information specifically authorized to be included on the notice under this
110 chapter; and
111 (xv) other property tax information approved by the commission.
112 (3) (a) Unless expressly allowed under this section or another statutory provision, the
113 treasurer may not add an amount to be collected to the property tax notice.
114 (b) If the county treasurer adds an amount to be collected to the property tax notice
115 under this section or another statutory provision that expressly authorizes the item's inclusion
116 on the property tax notice:
117 (i) the amount constitutes a tax notice charge; and
118 (ii) (A) the tax notice charge has the same priority as property tax; and
119 (B) a delinquency of the tax notice charge triggers a tax sale, in accordance with
120 Section 59-2-1343.
121 (4) For any property for which property taxes or tax notice charges are delinquent, the
122 notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent
123 on this parcel."
124 (5) Except as provided in Subsection (6), the county treasurer shall:
125 (a) mail the notice required by this section, postage prepaid; or
126 (b) leave the notice required by this section at the taxpayer's residence or usual place of
127 business, if known.
128 (6) (a) Subject to the other provisions of this Subsection (6), a county treasurer may, at
129 the county treasurer's discretion, provide the notice required by this section by electronic mail if
130 a taxpayer makes an election, according to procedures determined by the county treasurer, to
131 receive the notice by electronic mail.
132 (b) A taxpayer may revoke an election to receive the notice required by this section by
133 electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
134 (c) A revocation of an election under this section does not relieve a taxpayer of the
135 duty to pay a tax or tax notice charge due under this chapter on or before the due date for
136 paying the tax or tax notice charge.
137 (d) A county treasurer shall provide the notice required by this section using a method
138 described in Subsection (5), until a taxpayer makes a new election in accordance with this
139 Subsection (6), if:
140 (i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the
141 notice required by this section by electronic mail; or
142 (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
143 (e) A person is considered to be a taxpayer for purposes of this Subsection (6)
144 regardless of whether the property that is the subject of the notice required by this section is
145 exempt from taxation.
146 (7) (a) The county treasurer shall provide the notice required by this section to a
147 taxpayer on or before November 1.
148 (b) The county treasurer shall keep on file in the county treasurer's office the
149 information set forth in the notice.
150 (c) The county treasurer is not required to mail a tax receipt acknowledging payment.
151 (8) This section does not apply to property taxed under Section 59-2-1302 or
152 59-2-1307.
153 (9) (a) A taxpayer who pays less than the full amount due on the taxpayer's property tax
154 notice may, on a form provided by the county treasurer, direct how the county treasurer
155 allocates the partial payment between:
156 (i) the total amount due for property tax;
157 (ii) the amount due for assessments, past due local district fees, and other tax notice
158 charges; and
159 (iii) any other amounts due on the property tax notice.
160 (b) The county treasurer shall comply with a direction submitted to the county treasurer
161 in accordance with Subsection (9)(a).
162 (c) The provisions of this Subsection (9) do not:
163 (i) affect the right or ability of a local entity to pursue any available remedy for
164 non-payment of any item listed on a taxpayer's property tax notice; or
165 (ii) toll or otherwise change any time period related to a remedy described in
166 Subsection (9)(c)(i).
167 Section 2. Section 63A-3-403 is amended to read:
168 63A-3-403. Money in infrastructure funds.
169 (1) Money in each of the infrastructure funds shall be kept separate and accounted for
170 separately from money in the other infrastructure funds.
171 (2) Each infrastructure fund includes money:
172 (a) appropriated to that fund by the Legislature;
173 (b) transferred to the fund from the State Infrastructure Bank Fund created in Section
174 72-2-202, if applicable;
175 (c) from federal, state, or other public grants or contributions;
176 (d) that an independent political subdivision transfers to the fund from other money
177 available to the independent political subdivision;
178 (e) contributed or granted to the infrastructure fund from a private source; and
179 (f) collected from repayments of loans of infrastructure fund money.
180 (3) In addition to money identified in Subsection (2), the military development fund
181 includes money repaid [
182 Section 63A-3-404, executed on or after October 1, 2021, from a loan under Subsection
183 63B-27-101(3)(a)(i).
184 (4) (a) Each infrastructure fund shall earn interest.
185 (b) All interest earned on infrastructure fund money shall be deposited into the
186 respective infrastructure fund and included in the money of the infrastructure fund available to
187 be loaned.
188 (5) The state treasurer shall invest infrastructure fund money as provided in Title 51,
189 Chapter 7, State Money Management Act.
190 Section 3. Section 63A-3-404 is amended to read:
191 63A-3-404. Loan agreement.
192 (1) (a) A borrower that borrows money from an infrastructure fund shall enter into a
193 loan agreement with the division for repayment of the money.
194 (b) (i) A loan agreement under Subsection (1)(a) shall be secured by:
195 (A) bonds, notes, or another evidence of indebtedness validly issued under state law; or
196 (B) revenue generated from an infrastructure project.
197 (ii) The security provided under Subsection (1)(b)(i) may include the borrower's pledge
198 of some or all of a revenue source that the borrower controls.
199 (c) The respective loan approval committee may determine that property tax revenue or
200 revenue from the infrastructure project for which the infrastructure loan is obtained is sufficient
201 security for an infrastructure loan.
202 (2) An infrastructure loan shall bear interest at a rate not to exceed .5% above bond
203 market interest rates available to the state.
204 (3) (a) Subject to Subsection (3)(b), the respective loan approval committee shall
205 determine the length of term of an infrastructure loan.
206 (b) If the security for an infrastructure loan is property tax revenue, the repayment
207 terms of the infrastructure loan agreement shall allow sufficient time for the property tax
208 revenue to generate sufficient money to cover payments under the infrastructure loan.
209 (4) An infrastructure loan agreement may provide for a portion of the loan proceeds to
210 be applied to a reserve fund to secure repayment of the infrastructure loan.
211 (5) (a) If a borrower fails to comply with the terms of an infrastructure loan agreement,
212 the division may:
213 (i) seek any legal or equitable remedy to obtain:
214 (A) compliance with the agreement; or
215 (B) the payment of damages; and
216 (ii) request a state agency with money due to the borrower to withhold payment of the
217 money to the borrower and instead to pay the money to the division to pay any amount due
218 under the infrastructure loan agreement.
219 (b) A state agency that receives a request from the division under Subsection (5)(a)(ii)
220 shall pay to the division the money due to the borrower to the extent of the amount due under
221 the infrastructure loan agreement.
222 (6) Upon approval from the respective loan approval committee, the division shall loan
223 money from an infrastructure fund according to the terms established by the respective loan
224 approval committee.
225 (7) (a) The division shall administer and enforce an infrastructure loan according to the
226 terms of the infrastructure loan agreement.
227 (b) (i) Beginning May 5, 2021, the division shall assume responsibility from the State
228 Infrastructure Bank Fund for servicing the loan under Subsection 63B-27-101(3)(a)(i).
229 (ii) Payments due [
230 Subsection 63B-27-101(3)(a)(i) shall be made to the division rather than to the State
231 Infrastructure Bank Fund, to be deposited into the military development fund.
232 (iii) Notwithstanding Subsection (7)(b)(ii) and upon receipt of each debt service
233 payment, the division shall deposit an amount equal to interest payments due on the bond
234 described in Subsection 63B-27-101(3)(a)(i) into the Transportation Investment Fund of 2005
235 created in Section 72-2-124.
236 Section 4. Section 63B-27-101 is amended to read:
237 63B-27-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
238 projects.
239 (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
240 under this section may not exceed $1,000,000,000 for acquisition and construction proceeds ,
241 plus additional amounts necessary to pay costs of issuance, to pay capitalized interest, and to
242 fund any existing debt service reserve requirements, with the total amount of the bonds not to
243 exceed $1,010,000,000 .
244 (b) When the Department of Transportation certifies to the commission that the
245 requirements of Subsection 72-2-124(7) have been met and certifies the amount of bond
246 proceeds that the commission needs to provide funding for the projects described in Subsection
247 (2) for the current or next fiscal year, the commission may issue and sell general obligation
248 bonds in an amount equal to the certified amount, plus additional amounts necessary to pay
249 costs of issuance , to pay capitalized interest, and to fund any existing debt service reserve
250 requirements, not to exceed 1% of the certified amount .
251 (c) The commission may not issue general obligation bonds authorized under this
252 section if the issuance of the general obligation bonds would result in the total current
253 outstanding general obligation debt of the state exceeding 50% of the limitation described in
254 the Utah Constitution, Article XIV, Section 1.
255 (2) Except as provided in Subsections (3) and (4), proceeds from the issuance of bonds
256 shall be provided to the Department of Transportation to pay all or part of the costs of the
257 following state highway construction or reconstruction projects:
258 (a) state and federal highways prioritized by the Transportation Commission through
259 the prioritization process for new transportation capacity projects adopted under Section
260 72-1-304, giving priority consideration for projects with a regional significance or that support
261 economic development within the state, including:
262 (i) projects that are prioritized but exceed available cash flow beyond the normal
263 programming horizon; or
264 (ii) projects prioritized in the state highway construction program; and
265 (b) $100,000,000 to be used by the Department of Transportation for transportation
266 improvements as prioritized by the Transportation Commission for projects that:
267 (i) have a significant economic development impact associated with recreation and
268 tourism within the state; and
269 (ii) address significant needs for congestion mitigation.
270 (3) (a) Forty-six million dollars of the bond proceeds issued under this section shall be
271 provided to the State Infrastructure Bank Fund created by Section 72-2-202 to make funds
272 available for a transportation infrastructure loan or transportation infrastructure assistance
273 under Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, including the amounts as
274 follows:
275 [
276 development authority created in Section 63H-1-201;
277 [
278 highway, infrastructure, and rail right-of-way acquisition, design, engineering, and
279 construction, to be repaid through tax differential; and
280 [
281 intermodal transportation facility that enhances economic development within the city.
282 (b) When the loan described in Subsection (3)(a)(i) is transferred in accordance with
283 Section 72-2-202, the bond proceeds for the loan shall be provided to the military development
284 infrastructure revolving loan fund created in Section 63A-3-402.
285 (4) (a) Four million dollars of the bond proceeds issued under this section shall be used
286 for a public transit fixed guideway rail station associated with or adjacent to an institution of
287 higher education.
288 (b) Nineteen million dollars of the bond proceeds issued under this section shall be used
289 by the Department of Transportation for the design, engineering, construction, or
290 reconstruction of underpasses under a state highway connecting a state park and a project area
291 created by a military installation development authority created in Section 63H-1-201.
292 (c) Nine million dollars of the bond proceeds issued under this section shall be used by
293 the Department of Transportation for infrastructure improvements related to the Provo Airport.
294 (d) If project savings are identified by the Department of Transportation from the funds
295 provided to the Department of Transportation as described in this section, the Department of
296 Transportation may use available funding to study, design, engineer, and construct rail access
297 through I-80 in western Salt Lake County.
298 (5) The bond proceeds issued under this section shall be provided to the Department of
299 Transportation.
300 (6) The costs under Subsection (2) may include the costs of studies necessary to make
301 transportation infrastructure improvements, the costs of acquiring land, interests in land, and
302 easements and rights-of-way, the costs of improving sites, and making all improvements
303 necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
304 accrue on these bonds during the period to be covered by construction of the projects plus a
305 period of six months after the end of the construction period, interest estimated to accrue on
306 any bond anticipation notes issued under the authority of this title, and all related engineering,
307 architectural, and legal fees.
308 (7) The commission or the state treasurer may make any statement of intent relating to
309 a reimbursement that is necessary or desirable to comply with federal tax law.
310 (8) The Department of Transportation may enter into agreements related to the projects
311 described in Subsection (2) before the receipt of proceeds of bonds issued under this section.
312 Section 5. Section 63H-1-104 is amended to read:
313 63H-1-104. Loan approval committee -- Approval of infrastructure loans.
314 (1) As used in this section:
315 (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
316 (b) "Infrastructure loan" means the same as that term is defined in Section
317 63A-3-401.5.
318 (c) "Infrastructure project" means the same as that term is defined in Section
319 63A-3-401.5.
320 (d) "Military development fund" means the same as that term is defined in Section
321 63A-3-401.5.
322 (e) "Loan approval committee" means a committee consisting of:
323 (i) the board member who is appointed by the governor under Subsection
324 63H-1-302(2)(a);
325 (ii) the board member who is appointed by the governor under Subsection
326 63H-1-302(2)(c);
327 (iii) the board members who are appointed by the president of the Senate and the
328 speaker of the House of Representatives under Subsection 63H-1-302(3); and
329 (iv) a voting or nonvoting board member designated by the board.
330 (2) The loan approval committee may approve an infrastructure loan from the military
331 development fund to a borrower for an infrastructure project undertaken by the borrower.
332 (3) The loan approval committee shall establish the terms of an infrastructure loan in
333 accordance with Section 63A-3-404.
334 (4) The loan approval committee may establish policies and guidelines with respect to
335 prioritizing requests for infrastructure loans and approving infrastructure loans.
336 (5) Beginning May 5, 2021, the loan approval committee shall assume jurisdiction
337 from the State Infrastructure Bank Fund relating to the terms of a loan under Subsection
338 63B-27-101(3)(a)(i).
339 (6) Within 60 days after the execution of an infrastructure loan, the loan approval
340 committee shall report the infrastructure loan, including the loan amount, terms, and security,
341 to the Executive Appropriations Committee.
342 (7) (a) A meeting of the loan approval committee does not constitute a meeting of the
343 board, even if a quorum of the board is present at a loan approval committee meeting.
344 (b) A quorum of board members present at a meeting of the loan approval committee
345 may not conduct board business at the loan approval committee meeting.
346 (8) (a) Salaries and expenses of committee members who are legislators shall be paid
347 in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
348 Compensation.
349 (b) A committee member who is not a legislator may not receive compensation or
350 benefits for the member's service on the committee, but may receive per diem and
351 reimbursement for travel expenses incurred as a committee member at the rates established by
352 the Division of Finance under:
353 (i) Sections 63A-3-106 and 63A-3-107; and
354 (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
355 63A-3-107.
356 Section 6. Section 63H-1-202 is amended to read:
357 63H-1-202. Applicability of other law.
358 (1) As used in this section:
359 (a) "Subsidiary" means an authority subsidiary that is a public body as defined in
360 Section 52-4-103.
361 (b) "Subsidiary board" means the governing body of a subsidiary.
362 (2) The authority or land within a project area is not subject to:
363 (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
364 (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
365 (c) ordinances or regulations of a county or municipality, including those relating to
366 land use, health, business license, or franchise; or
367 (d) the jurisdiction of a local district under Title 17B, Limited Purpose Local
368 Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
369 Special Service District Act.
370 (3) The authority is subject to and governed by Sections 63E-2-106, 63E-2-107,
371 63E-2-108, 63E-2-109, 63E-2-110, and 63E-2-111, but is not otherwise subject to or governed
372 by Title 63E, Independent Entities Code.
373 (4) (a) The definitions in Section 57-8-3 apply to this Subsection (4).
374 (b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
375 Act, or any other provision of law:
376 (i) if the military is the owner of land in a project area on which a condominium project
377 is constructed, the military is not required to sign, execute, or record a declaration of a
378 condominium project; and
379 (ii) if a condominium unit in a project area is owned by the military or owned by the
380 authority and leased to the military for $1 or less per calendar year, not including any common
381 charges that are reimbursements for actual expenses:
382 (A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
383 Condominium Ownership Act;
384 (B) condominium unit owners within the same building or commercial condominium
385 project may agree on any method of allocation and payment of common area expenses,
386 regardless of the size or par value of each unit; and
387 (C) the condominium project may not be dissolved without the consent of all the
388 condominium unit owners.
389 (5) Notwithstanding any other provision, when a law requires the consent of a local
390 government, the authority is the consenting entity for a project area.
391 (6) (a) A department, division, or other agency of the state and a political subdivision
392 of the state shall cooperate with the authority to the fullest extent possible to provide whatever
393 support, information, or other assistance the authority requests that is reasonably necessary to
394 help the authority fulfill the authority's duties and responsibilities under this chapter.
395 (b) Subsection (6)(a) does not apply to a political subdivision that does not have any of
396 a project area located within the boundary of the political subdivision.
397 (7) (a) The authority and a subsidiary are subject to Title 52, Chapter 4, Open and
398 Public Meetings Act, except that:
399 [
400 authority board members or subsidiary board members on the requirements of Title 52, Chapter
401 4, Open and Public Meetings Act, may be determined by:
402 [
403 [
404 [
405 under Section 52-4-207, if, under Subsection 63H-1-301(3), the board delegates to authority
406 staff the power to adopt the rule; and
407 [
408 otherwise complies with Section 52-4-207, the authority board or subsidiary board,
409 respectively:
410 [
411 [
412 otherwise required under Subsection 52-4-207(4).
413 (b) Except as provided in Subsection (7)(c), the authority is not required to physically
414 post notice notwithstanding any other provision of law.
415 (c) The authority shall physically post notice in accordance with Subsection
416 52-4-202(3)(a)(i).
417 (8) The authority and a subsidiary are subject to Title 63G, Chapter 2, Government
418 Records Access and Management Act, except that:
419 (a) notwithstanding Section 63G-2-701:
420 (i) the authority may establish an appeals board consisting of at least three members;
421 (ii) an appeals board established under Subsection (8)(a)(i) shall include:
422 (A) one of the authority board members appointed by the governor;
423 (B) the authority board member appointed by the president of the Senate; and
424 (C) the authority board member appointed by the speaker of the House of
425 Representatives; and
426 (iii) an appeal of a decision of an appeals board is to district court, as provided in
427 Section 63G-2-404, except that the State Records Committee is not a party; and
428 (b) a record created or retained by the authority or a subsidiary acting in the role of a
429 facilitator under Subsection 63H-1-201(3)(v) is a protected record under Title 63G, Chapter 2,
430 Government Records Access and Management Act.
431 (9) The authority or a subsidiary acting in the role of a facilitator under Subsection
432 63H-1-201(3)(v) is not prohibited from receiving a benefit from a public-private partnership
433 that results from the facilitator's work as a facilitator.
434 (10) (a) (i) A subsidiary created as a public infrastructure district under [
435
436 Infrastructure District Act, may, subject to limitations of [
437
438 property tax for the operations and maintenance of the public infrastructure district's financed
439 infrastructure and related improvements, subject to a maximum rate of .015.
440 (ii) A levy under Subsection (10)(a)(i) may be separate from a public infrastructure
441 district property tax levy for a bond.
442 (b) If a subsidiary created as a public infrastructure district issues a bond:
443 (i) the subsidiary may:
444 (A) delay the effective date of the property tax levy for the bond until after the period
445 of capitalized interest payments; and
446 (B) covenant with bondholders not to reduce or impair the property tax levy; and
447 (ii) notwithstanding a provision to the contrary in [
448
449 tax rate for the property tax levy for the bond may not exceed a rate that generates more
450 revenue than required to pay the annual debt service of the bond plus administrative costs,
451 subject to a maximum of .02.
452 (c) (i) A subsidiary created as a public infrastructure district under Title 17D, Chapter
453 4, Public Infrastructure District Act, may create tax areas, as defined in Section 59-2-102,
454 within the public infrastructure district and apply a different property tax rate to each tax area,
455 subject to the maximum rate limitations described in Subsections (10)(a)(i) and (10)(b)(ii).
456 (ii) If a subsidiary created by a public infrastructure district issues bonds, the subsidiary
457 may issue bonds secured by property taxes from:
458 (A) the entire public infrastructure district; or
459 (B) one or more tax areas within the public infrastructure district.
460 (11) (a) Terms defined in Section 57-11-2 apply to this Subsection (11).
461 (b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act, does not apply to an
462 offer or disposition of an interest in land if the interest in land lies within the boundaries of the
463 project area and the authority:
464 (i) (A) has a development review committee using at least one professional planner;
465 (B) enacts standards and guidelines that require approval of planning, land use, and
466 plats, including the approval of plans for streets, culinary water, sanitary sewer, and flood
467 control; and
468 (C) will have the improvements described in Subsection (11)(b)(i)(B) plus
469 telecommunications and electricity; and
470 (ii) if at the time of the offer or disposition, the subdivider furnishes satisfactory
471 assurance of completion of the improvements described in Subsection (11)(b)(i)(C).
472 (12) (a) As used in this Subsection (12), "officer" means the same as an officer within
473 the meaning of the Utah Constitution Article IV, Section 10.
474 (b) An official act of an officer may not be invalidated for the reason that the officer
475 failed to take the oath of office.
476 Section 7. Section 63H-1-401 is amended to read:
477 63H-1-401. Preparation of project area plan -- Required contents of project area
478 plan.
479 (1) (a) The authority board shall adopt a project area plan as provided in this part.
480 (b) In order to adopt a project area plan, the authority board shall:
481 (i) prepare a draft project area plan;
482 (ii) give notice as required under Subsection 63H-1-402(2);
483 (iii) hold at least one public meeting, as required under Subsection 63H-1-402(1); and
484 (iv) after holding at least one public meeting and subject to Subsection (1)(c), adopt the
485 draft project area plan as the project area plan.
486 (c) Before adopting a draft project area plan as the project area plan, the authority
487 board may make modifications to the draft project area plan that the board considers necessary
488 or appropriate.
489 (d) (i) A lease or development agreement that the authority enters before the creation of
490 a project area shall provide that the board is not required to create a project area.
491 (ii) An authority may not be required to pay any amount or incur any loss or penalty for
492 the board's failure to create a project area.
493 (2) Each project area plan and draft project area plan shall contain:
494 (a) a legal description of the boundary of the project area that is the subject of the
495 project area plan;
496 (b) the authority's purposes and intent with respect to the project area; and
497 (c) the board's findings and determination that:
498 (i) there is a need to effectuate a public purpose;
499 (ii) there is a public benefit to the proposed development project;
500 (iii) it is economically sound and feasible to adopt and carry out the project area plan;
501 and
502 (iv) carrying out the project area plan will promote the public peace, health, safety, and
503 welfare of the community in which the project area is located.
504 (3) (a) A project area described in a project area plan:
505 [
506 [
507 land, if:
508 [
509 located, if the public land or private land is located in an unincorporated county, passes a
510 resolution consenting to the inclusion of the land in the project area;
511 [
512 consenting to the inclusion of the land in the project area; and
513 [
514 in the project area.
515 (b) (i) Consent provided under Subsection (3)(a)(ii)(A), (B), or (C) is irrevocable.
516 (ii) The authority may rely on a consent provided under Subsection (3)(a)(ii)(A), (B),
517 or (C) for long-term planning, contractual commitments, and issuing bonds or other
518 indebtedness.
519 Section 8. Section 63H-1-501 is amended to read:
520 63H-1-501. Authority receipt and use of property tax allocation -- Contractual
521 annual payment -- Distribution of property tax allocation.
522 (1) (a) The authority may:
523 (i) subject to Subsection (1)(b):
524 (A) receive up to 75% of the property tax allocation for up to 25 years, as provided in
525 this part; and
526 (B) after the time period described in Subsection (1)(a)(i)(A) expires, receive up to
527 75% of the property tax allocation for up to 15 years, if the board determines the additional
528 years will produce significant benefit; and
529 (ii) use the property tax allocation before, during, and after the period described in
530 Subsection (1)(a)(i).
531 (b) With respect to a parcel located within a project area, the 25-year period described
532 in Subsection (1)(a)(i)(A) begins on the day on which the authority receives the first property
533 tax allocation from that parcel.
534 (2) (a) For purposes of Subsection (1)(b), the authority may designate an improved
535 portion of a parcel in a project area as a separate parcel.
536 (b) An authority designation of an improved portion of a parcel as a separate parcel
537 under Subsection (2)(a) is for purposes of Subsection (1)(b) only and does not constitute a
538 subdivision for any other purpose.
539 (c) A county recorder shall assign a separate tax identification number to the improved
540 portion of a parcel designated by the authority as a separate parcel under Subsection (2)(a).
541 (3) Improvements on a parcel within a project area become subject to property tax on
542 January 1 immediately following the day on which the authority or an entity designated by the
543 authority issues a certificate of occupancy with respect to those improvements.
544 (4) (a) If the authority or an entity designated by the authority has not issued a
545 certificate of occupancy for a private parcel within a project area, the private parcel owner shall
546 make an annual payment to the authority:
547 (i) that is equal to 1.2% of the taxable value of the parcel above the base taxable value
548 of the parcel; and
549 (ii) until the parcel becomes subject to the property tax described in Subsection (3).
550 (b) The authority may use the revenue from payments described in Subsection (4)(a)
551 for any purpose described in Subsection 63H-1-502(1).
552 (c) The authority may submit for recording to the office of the recorder of the county in
553 which a private parcel described in Subsection (4)(a) is located:
554 (i) a copy of an agreement between the authority and the private parcel owner that
555 memorializes the payment obligation under Subsection (4)(a); or
556 (ii) a notice that describes the payment obligation under Subsection (4)(a).
557 (d) An owner of a private parcel described in Subsection (4)(a) may not be required to
558 make a payment that exceeds or is in addition to the payment described in Subsection (4)(a)(i)
559 until the private parcel becomes subject to the property tax described in Subsection (3).
560 (e) Upon the transfer of title of a private parcel described in Subsection (4)(a), the
561 amount of the annual payment required under Subsection (4)(a) shall be:
562 (i) treated the same as a property tax; and
563 (ii) prorated between the previous owner and the owner who acquires title from the
564 previous owner.
565 (f) A person who fails to pay or is delinquent in paying an annual payment described in
566 Subsection (4)(a) is subject to the same penalties and interest as the failure or delinquent
567 payment of a property tax in accordance with Title 59, Chapter 2, Property Tax Act.
568 (g) If requested by the authority, a county treasurer shall:
569 (i) include the annual payment described in Subsection (4)(a) on a county property tax
570 notice in accordance with Section 59-2-1317; and
571 (ii) collect the annual payment as part of the property tax collection.
572 (5) Each county that collects property tax on property within a project area shall pay
573 and distribute to the authority the property tax allocation and dedicated tax collections that the
574 authority is entitled to collect under this title, in the manner and at the time provided in Section
575 59-2-1365.
576 (6) (a) The board shall determine by resolution when the entire project area or an
577 individual parcel within a project area is subject to property tax allocation.
578 (b) The board shall amend the project area budget to reflect whether a parcel within a
579 project area is subject to property tax allocation.
580 (7) The following property owned by the authority is not subject to any property tax
581 under Title 59, Chapter 2, Property Tax Act, or any privilege tax under Title 59, Chapter 4,
582 Privilege Tax, regardless of whether the authority enters into a long-term operating agreement
583 with a privately owned entity under which the privately owned entity agrees to operate the
584 property:
585 (a) a hotel;
586 (b) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
587 and
588 (c) a commercial condominium unit in a condominium project, as defined in Section
589 57-8-3.
590 Section 9. Section 63H-1-502 is amended to read:
591 63H-1-502. Allowable uses of property tax allocation and other funds.
592 (1) Other than municipal services revenue, the authority may use the property tax
593 allocation and other funds available to the authority:
594 (a) for any purpose authorized under this chapter;
595 (b) for administrative, overhead, legal, and other operating expenses of the authority;
596 (c) to pay for, including financing or refinancing, all or part of the development of land
597 within the project area from which the property tax allocation or other funds were collected,
598 including assisting the ongoing operation of a development or facility within the project area;
599 (d) to pay the cost of the installation and construction of public infrastructure and
600 improvements within the project area from which the property tax allocation funds were
601 collected;
602 (e) to pay the cost of the installation and construction of public infrastructure and
603 improvements, including a passenger ropeway, as defined in Section 72-11-102, outside the
604 project area if:
605 (i) (A) the authority board determines by resolution that the infrastructure and
606 improvements are of benefit to the project area; and
607 [
608 project area; or
609 (ii) (A) the funds expended are appropriated by the Legislature; and
610 (B) the authority is directed to expend the funds, and the project or purpose is directed,
611 by the Legislature;
612 (f) to pay the principal and interest on bonds issued by the authority;
613 (g) to pay for a morale, welfare, and recreation program of a United States Air Force
614 base in Utah, affiliated with the project area from which the funds were collected; or
615 (h) to pay for the promotion of:
616 (i) a development within the project area; or
617 (ii) amenities outside of the project area that are associated with a development within
618 the project area.
619 (2) The authority may use revenue generated from the authority's operation of public
620 infrastructure and improvements to:
621 (a) operate and maintain the public infrastructure and improvements; and
622 (b) pay for authority operating expenses, including administrative, overhead, and legal
623 expenses.
624 (3) For purposes of Subsection (1), the authority may use:
625 (a) tax revenue received under Subsection 59-12-205(2)(b)(ii);
626 (b) resort communities tax revenue;
627 (c) MIDA energy tax revenue, received under Section 63H-1-204, which does not have
628 to be used in the project area where the revenue was generated;
629 (d) MIDA accommodations tax revenue, received under Section 63H-1-205;
630 (e) transient room tax revenue generated from hotels located on authority-owned or
631 other public-entity-owned property;
632 (f) municipal energy tax revenue generated from hotels located on authority-owned or
633 other public-entity-owned property; or
634 (g) payments received under Subsection 63H-1-501(4).
635 (4) The determination of the authority board under Subsection (1)(e) regarding benefit
636 to the project area is final.
637 Section 10. Section 63H-1-701 is amended to read:
638 63H-1-701. Annual authority budget -- Fiscal year -- Public hearing required --
639 Auditor forms -- Requirement to file form.
640 (1) The authority shall prepare and its board adopt an annual budget of revenues and
641 expenditures for the authority for each fiscal year.
642 (2) Each annual authority budget shall be adopted before June 30.
643 (3) The authority's fiscal year shall be the period from July 1 to the following June 30.
644 (4) (a) Before adopting an annual budget, the authority board shall hold a public
645 hearing on the annual budget.
646 (b) The authority shall provide notice of the public hearing on the annual budget by
647 publishing notice:
648 (i) at least once in a newspaper of general circulation within the state, at least one week
649 before the public hearing; and
650 (ii) on the Utah Public Notice Website created in Section 63A-16-601, for at least one
651 week immediately before the public hearing.
652 (c) The authority shall make the annual budget available for public inspection at least
653 three days before the date of the public hearing.
654 (5) The state auditor shall prescribe the budget forms and the categories to be contained
655 in each authority budget, including:
656 (a) revenues and expenditures for the budget year;
657 (b) legal fees; and
658 (c) administrative costs, including rent, supplies, and other materials, and salaries of
659 authority personnel.
660 (6) (a) Within 30 days after adopting an annual budget, the authority board shall file a
661 copy of the annual budget with the auditor of each county in which a project area of the
662 authority is located, the State Tax Commission, the state auditor, the State Board of Education,
663 and each taxing entity that levies a tax on property from which the authority collects property
664 tax allocation.
665 (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
666 state as a taxing entity is met if the authority files a copy with the State Tax Commission and
667 the state auditor.
668 Section 11. Section 72-2-202 is amended to read:
669 72-2-202. State Infrastructure Bank Fund -- Creation -- Use of money.
670 (1) There is created a revolving loan fund entitled the State Infrastructure Bank Fund.
671 (2) (a) The fund consists of money generated from the following revenue sources:
672 (i) appropriations made to the fund by the Legislature;
673 (ii) federal money and grants that are deposited in the fund;
674 (iii) money transferred to the fund by the commission from other money available to
675 the department;
676 (iv) state grants that are deposited in the fund;
677 (v) contributions or grants from any other private or public sources for deposit into the
678 fund; and
679 (vi) subject to Subsection (2)(b), all money collected from repayments of fund money
680 used for infrastructure loans or infrastructure assistance.
681 (b) When a loan from the fund is repaid, the department may request and the
682 Legislature may transfer from the fund to the source from which the money originated an
683 amount equal to the repaid loan.
684 (3) (a) The fund shall earn interest.
685 (b) All interest earned on fund money shall be deposited into the fund.
686 (4) Money in the fund shall be used by the department, as prioritized by the
687 commission, only to:
688 (a) provide infrastructure loans or infrastructure assistance; and
689 (b) pay the department for the costs of administering the fund, providing infrastructure
690 loans or infrastructure assistance, monitoring transportation projects and publicly owned
691 infrastructure projects, and obtaining repayments of infrastructure loans or infrastructure
692 assistance.
693 (5) (a) The department may establish separate accounts in the fund for infrastructure
694 loans, infrastructure assistance, administrative and operating expenses, or any other purpose to
695 implement this part.
696 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
697 department may make rules governing how the fund and its accounts may be held by an escrow
698 agent.
699 (6) Fund money shall be invested by the state treasurer as provided in Title 51, Chapter
700 7, State Money Management Act, and the earnings from the investments shall be credited to the
701 fund.
702 (7) Before July 1, 2022, the department shall transfer the loan described in Subsection
703 63B-27-101(3)(a)(i) from the State Infrastructure Bank Fund to the military development
704 infrastructure revolving loan fund created in Section 63A-3-402.