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289
10-21-501
11-41-101
11-41-102
11-41-201
11-41-202
11-58-102
11-58-602
11-58-607
17-80-501
17B-2a-1302
17C-1-102
17C-1-409
17C-1-603
17C-6-101
17C-6-102
17C-6-201
17C-6-202
17C-6-203
17C-6-301
17C-6-401
17C-6-402
17C-6-403
17C-6-404
17D-4-201
17D-4-202
17D-4-202.1
17D-4-203
17D-4-204
17D-4-303
17D-4-401
51-9-1001
51-9-1002
51-9-1003
57-1-49
59-1-306
59-2-924
59-35-101
59-35-201
59-35-202
59-35-301
63G-2-206
63G-2-305
63G-2-309
63G-2-802
63G-7-605
63I-2-263
63N-2-103
63N-3-602
63N-3-603
63N-3-604
63N-3-604.1
63N-3-605
63N-3-607
63N-3-608
63N-3-611
63N-3-1603
63N-3-1609
63N-3a-101
63N-3a-102
63N-3a-103
63N-3a-104
63N-3a-105
63N-3a-106
63N-3a-201
63N-3a-202
63N-3a-203
63N-3a-204
63N-3a-205
63N-3a-206
63N-3a-207
63N-3a-208
63N-3a-301
63N-3a-302
63N-3a-303
63N-3a-401
63N-3a-402
63N-3a-403
63N-3a-501
79-6-1104
HB0507
63G-2-206
0
State Coordination of Regional and Local Economic Development Projects Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin Roberts
Senate Sponsor: Kirk A. Cullimore
LONG TITLE
General Description:
This bill addresses local and regional economic development projects and related
provisions.
Highlighted Provisions:
This bill:
defines terms and modifies definitions;
prohibits a political subdivision from providing an incentive to a large load data center,
with exceptions;
establishes the State Reinvestment Restricted Account (account);
describes the potential uses for money in the account;
directs the Utah Inland Port Authority to deposit certain revenues into the account;
modifies certain requirements for a public infrastructure district;
provides a process for the dissolution of a public infrastructure district;
requires the disclosure of the expected annual cost of a public infrastructure district's
certified tax rate, as shown on the last equalized assessment rolls, in the conveyance of
residential real property, if applicable;
creates the optional County Energy Excise Tax;
requires the State Tax Commission to deposit revenue, in certain circumstances, into the
account;
provides that certain records related to economic development projects, including
nondisclosure agreements, may be classified as protected records;
modifies the process for a person providing a record to a governmental entity to make a
claim of confidentiality regarding the record;
modifies provisions governing the sharing of a protected record;
requires the risk manager to make rules to establish the limit of liability for damages from
the intentional disclosure of a protected record;
provides that a housing and transit reinvestment zone, first home investment zone,
convention center reinvestment zone, or home ownership promotion zone may not be
created after January 1, 2028;
provides retrospective operation for certain provisions governing a housing and transit
reinvestment zone, first home investment zone, and convention center reinvestment zone
to May 4, 2022;
requires the Political Subdivisions Interim Committee to create a working group and
describes the membership of the working group;
creates a process for a county or city to propose a regionally significant development zone
(zone) and for a committee to approve the creation of a zone;
authorizes a zone to capture and utilize certain forms of tax increment;
describes how a zone will be managed, including how a community reinvestment agency
(agency) will manage zone funds, prepare zone budgets, conduct zone audits, and make
biennial reports;
describes the circumstances in which an agency or a county treasurer shall transfer a
percentage of zone revenue into the account;
modifies the prohibition on local government offering a financial incentive for an energy
development project outside an electrical energy development zone;
coordinates this bill with H.B. 475, Development Planning and Coordination
Amendments; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a coordination clause.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
10-21-501
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
11-41-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
11-58-102
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapters 53,
438 and 535
11-58-602
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 459
17-80-501
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
17B-2a-1302
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 388
17C-1-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
17C-1-409
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
17C-1-603
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 480
17D-4-201
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-202
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-202.1
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 29
17D-4-203
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 498
17D-4-204
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-303
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 347
59-1-306
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 258
59-2-924
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
63G-2-206
Effective
05/06/26
, as last amended by Laws of Utah 2019, Chapter 334
63G-2-305
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
63G-2-309
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
63G-2-802
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 188
63G-7-605
Effective
05/06/26
, as last amended by Laws of Utah 2021, Chapter 33
63I-2-263
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 182,
273 and 277
63N-2-103
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 512
63N-3-602
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-603
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
63N-3-604
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-604.1
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 29
63N-3-605
Effective
05/06/26
Applies beginning
05/04/22
, as last amended by Laws
of Utah 2025, Chapter 29
63N-3-607
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 404
63N-3-608
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-611
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-1603
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 537
63N-3-1609
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 537
79-6-1104
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 375
ENACTS:
11-41-201
Effective
05/06/26
, Utah Code Annotated 1953
11-41-202
Effective
05/06/26
, Utah Code Annotated 1953
11-58-607
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-101
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-102
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-201
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-202
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-203
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-301
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-401
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-402
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-403
Effective
05/06/26
, Utah Code Annotated 1953
17C-6-404
Effective
05/06/26
, Utah Code Annotated 1953
17D-4-401
Effective
05/06/26
, Utah Code Annotated 1953
51-9-1001
Effective
05/06/26
, Utah Code Annotated 1953
51-9-1002
Effective
05/06/26
, Utah Code Annotated 1953
51-9-1003
Effective
05/06/26
, Utah Code Annotated 1953
57-1-49
Effective
05/06/26
, Utah Code Annotated 1953
59-35-101
Effective
05/06/26
, Utah Code Annotated 1953
59-35-201
Effective
05/06/26
, Utah Code Annotated 1953
59-35-202
Effective
05/06/26
, Utah Code Annotated 1953
59-35-301
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-101
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-102
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-103
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-104
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-105
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-106
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-201
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-202
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-203
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-204
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-205
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-206
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-207
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-208
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-301
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-302
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-303
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-401
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-402
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-403
Effective
05/06/26
, Utah Code Annotated 1953
63N-3a-501
Effective
05/06/26
, Utah Code Annotated 1953
REPEALS:
11-41-101
Effective
05/06/26
, as enacted by Laws of Utah 2004, Chapter 283
Utah Code Sections Affected by Coordination Clause:
63G-2-206
, as last amended by Laws of Utah 2019, Chapter 334
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-21-501
is amended to read:
10-21-501
Effective
05/06/26
. Municipal designation of a home ownership
promotion zone.
(1)
Subject to the requirements of Sections
10-21-502
and
10-21-503
, a municipality may
create a home ownership promotion zone
:
(a)
before January 1, 2028; and
(b)
as described in this section.
(2)
A home ownership promotion zone created under this section:
(a)
is an area of 10 contiguous acres or less located entirely within the boundaries of the
municipality, zoned for fewer than six housing units per acre before the creation of
the home ownership promotion zone;
(b)
shall be re-zoned for at least six housing units per acre; and
(c)
may not be encumbered by any residential building permits as of the day on which
the home ownership promotion zone is created.
(3)
(a)
The municipality shall designate the home ownership promotion zone by
resolution of the legislative body of the municipality, passed or adopted in a public
meeting of the legislative body of the municipality, following:
(i)
the recommendation of the municipality planning commission; and
(ii)
the notification requirements described in Section
10-21-503
.
(b)
The resolution described in Subsection
(3)(a)
shall describe how the home ownership
promotion zone created in accordance with this section meets the objectives and
requirements in Section
10-21-502
.
(c)
The home ownership promotion zone is created on the effective date of the resolution
described in Subsection
(3)(a)
.
(4)
If a home ownership promotion zone is created as described in this section:
(a)
affected local taxing entities are required to participate according to the requirements
of the home ownership promotion zone established by the municipality; and
(b)
each affected taxing entity is required to participate at the same rate.
(5)
A home ownership promotion zone may be modified by the same manner it is created as
described in Subsection
(3)
.
(6)
Within 30 days after the day on which the municipality creates the home ownership
promotion zone as described in Subsection
(3)
, the municipality shall:
(a)
record with the recorder of the county in which the home ownership promotion zone
is located a document containing:
(i)
a description of the land within the home ownership promotion zone; and
(ii)
the date of creation of the home ownership promotion zone;
(b)
transmit a copy of the description of the land within the home ownership promotion
zone and an accurate map or plat indicating the boundaries of the home ownership
promotion zone to the Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a map and description of the land within the home ownership promotion
zone to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the home ownership promotion zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity impacted by the
home ownership promotion zone;
(iv)
the tax commission; and
(v)
the State Board of Education.
(7)
A municipality may receive tax increment and use home ownership promotion zone
funds as described in Section
10-21-504
.
(8)
A home ownership promotion zone created before January 1, 2028, continues to exist,
as described in this part, and shall comply with the provisions of this part until dissolved.
Section 2. Section
11-41-102
is amended to read:
41. Prohibited Local Economic Development Incentives
1. Prohibition on Retail Facility Incentive Payments Act
11-41-102
Effective
05/06/26
. Definitions.
As used in this
chapter
part
:
(1)
"Agreement" means an oral or written agreement between a public entity and a person.
(2)
"Business entity" means a sole proprietorship, partnership, limited partnership, limited
liability company, corporation, or other entity or association used to carry on a business
for profit.
(3)
"Determination of violation" means a determination by the Governor's Office of
Economic Opportunity of substantial likelihood that a retail facility incentive payment
has been made in violation of Section
11-41-103
, in accordance with Section
11-41-104
.
(4)
"Environmental mitigation" means an action or activity intended to remedy known
negative impacts to the environment.
(5)
"Executive director" means the executive director of the Governor's Office of Economic
Opportunity.
(6)
"General plan" means the same as that term is defined in Section
23A-6-101
.
(7)
"Legislative body" means the same as that term is defined in:
(a)
Section
10-20-102
; or
(b)
Section
17-79-102
.
(8)
"Mixed-use development" means development with mixed land uses, including housing.
(9)
"Moderate income housing" means housing occupied or reserved for occupancy by
households with a gross household income equal to or less than 80% of the median gross
income for households of the same size in the county in which the housing is located.
(10)
"Moderate income housing plan" means the moderate income housing plan element of
a general plan.
(11)
"Office" means the Governor's Office of Economic Opportunity.
(12)
"Political subdivision" means any county, city, town, school district, special district,
special service district, community reinvestment agency, or entity created by an
interlocal agreement adopted
underChapter
under Chapter
13, Interlocal Cooperation
Act.
(13)
"Public entity" means:
(a)
a political subdivision;
(b)
a department, commission, board, council, agency, institution, officer, corporation,
fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or
other administrative unit of the executive branch of the state;
(c)
an institution of higher education as defined in Section
53H-1-101
;
(d)
the Military Installation Development Authority created in Section
63H-1-201
;
(e)
the Utah Inland Port Authority created in Section
11-58-201
; or
(f)
the Point of the Mountain State Land Authority created in Section
11-59-201
.
(14)
"Public funds" means any money received by a public entity that is derived from:
(a)
a sales and use tax authorized under Title
59, Chapter 12
, Sales and Use Tax Act; or
(b)
a property tax levy.
(15)
"Public infrastructure" means:
(a)
a public facility, as defined in Section
11-36a-102
;
(b)
a system improvement, as defined in Section
11-36a-102
; or
(c)
infrastructure developed with public funds included as part of an infrastructure
master plan related to a general plan.
(16)
"Retail facility" means any facility operated by a business entity for the primary
purpose of making retail transactions.
(17)
"Retail facility incentive payment" means a payment of public funds:
(a)
to a person by a public entity;
(b)
for the development, construction, renovation, or operation of a retail facility within
an area of the state; and
(c)
in the form of:
(i)
a payment;
(ii)
a rebate;
(iii)
a refund;
(iv)
a subsidy; or
(v)
any other similar incentive, award, or offset.
(18)
"Retail transaction" means any transaction subject to a sales and use tax under Title
59,
Chapter 12
, Sales and Use Tax Act.
(19)
(a)
"Small business" means a business entity that:
(i)
has fewer than 30 full-time equivalent employees; and
(ii)
maintains the business entity's principal office in the state.
(b)
"Small business" does not include:
(i)
a franchisee, as defined in 16 C.F.R. Sec. 436.1;
(ii)
a dealer, as defined in Section
41-1a-102
; or
(iii)
a subsidiary or affiliate of another business entity that is not a small business.
Section 3. Section
11-41-201
is enacted to read:
2. Prohibition on Tax Increment Incentives for Large Load Data Centers Act
11-41-201
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Incentive" means a payment of public funds, funded by tax increment or personal
property tax revenue:
(a)
from a political subdivision to a person;
(b)
for the development, construction, renovation, operating, or citing of a large load
customer or qualifying data center within an area of the state; and
(c)
in the form of:
(i)
a payment, rebate, refund, subsidy, or other similar incentive, award, or offset; or
(ii)
a payment of public funds for the development, construction, renovation, or
operation of public infrastructure and improvements that wholly or primarily
support a large load customer.
(2)
"Large load customer" means the same as that term is defined in Section
54-26-101
.
(3)
"Large load data center" means a large load customer that is also a qualifying data
center.
(4)
"Political subdivision" means any county, municipality, special district, special service
district, public infrastructure district, community reinvestment agency, entity created by
an interlocal agreement adopted under Chapter 13, Interlocal Cooperation Act, or
regional economic development authority.
(5)
(a)
"Public infrastructure and improvements" means infrastructure, improvements,
facilities, or buildings that:
(i)
(A)
benefit the public and are owned by a public entity or a utility; or
(B)
benefit the public and are publicly maintained or operated by a public entity; or
(ii)
are privately owned.
(b)
"Public infrastructure and improvements" includes:
(i)
facilities, lines, or systems that provide:
(A)
water, chilled water, or steam; or
(B)
sewer, storm drainage, natural gas, electricity, energy storage, clean energy,
microgrids, or telecommunications service; and
(ii)
streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, rail lines, intermodal facilities, multimodal facilities, and public
transportation facilities.
(6)
"Qualifying data center" means the same as that term is defined in Section
59-12-102
.
(7)
"Regional economic development authority" means the same as that term is defined in
Section
63N-3a-101
.
(8)
"Tax increment" means the same as that term is defined in Section
59-2-924
.
Section 4. Section
11-41-202
is enacted to read:
11-41-202
Effective
05/06/26
. Political subdivisions prohibited from providing
incentives -- Exceptions.
(1)
Beginning on May 6, 2027, except as provided in Subsections
(2)
and (3), a political
subdivision may not provide an incentive to a large load data center.
(2)
(a)
A municipality or county, or agency created by a municipality or county, may
provide an incentive to a large load data center:
(i)
only if the large load data center is located within a regionally significant
development zone, as described in Title 63N, Chapter 3a, Part 4, Regionally
Significant Zones with Energy Implications; and
(ii)
with regionally significant development zone funds described in Subsection
63N-3a-403(5)
.
(b)
A regional economic development authority may provide an incentive to a large load
data center:
(i)
if the large load data center is located in a project area created by the regional
economic development authority;
(ii)
if the regional economic development authority's project area overlaps with a
regionally significant development zone, as described in Subsection
63N-3a-208(7)(b)
; and
(iii)
the incentive is funded by:
(A)
regionally significant development zone funds described in Section
63N-3a-403
that have been shared with the regional economic development
authority; or
(B)
the regional economic development authority's project area funds, subject to a
maximum cap of 60% of property tax increment generated within the
overlapping project area.
(c)
A county that levies the county energy excise tax authorized in Section
59-35-201
may provide up to 80% of the revenue generated by the county energy excise tax as
an incentive to a large load data center.
(d)
A municipality that levies the municipal energy tax authorized in Title 10, Chapter 1,
Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the
revenue generated by the municipal energy tax as an incentive to a large load data
center.
(e)
A sales and use tax exemption described in Section
59-12-104
does not constitute an
incentive.
(3)
A political subdivision that entered into an agreement to provide an incentive to a large
load data center, or has adopted a survey area resolution in accordance with Section
17C-5-103
with intent to provide an incentive to a large load data center, before May 6,
2027:
(a)
may continue to provide the incentive according to the terms of the political
subdivision's agreement;
(b)
may not extend the term of the agreement; and
(c)
may not increase the value of the incentive under the agreement.
Section 5. Section
11-58-102
is amended to read:
11-58-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Authority" means the Utah Inland Port Authority, created in Section
11-58-201
.
(2)
"Authority jurisdictional land" means land within the authority boundary delineated:
(a)
in the electronic shapefile that is the electronic component of H.B. 2001, Utah Inland
Port Authority Amendments, 2018 Second Special Session; and
(b)
beginning April 1, 2020, as provided in Subsection
11-58-202(3)
.
(3)
"Base taxable value" means:
(a)
(i)
except as provided in Subsection
(3)(a)(ii)
, for a project area that consists of the
authority jurisdictional land, the taxable value of authority jurisdictional land in
calendar year 2018; and
(ii)
for an area described in Section
11-58-600.7
, the taxable value of that area in
calendar year 2017; or
(b)
for a project area that consists of land outside the authority jurisdictional land, the
taxable value of property within any portion of a project area, as designated by board
resolution, from which the property tax differential will be collected, as shown upon
the assessment roll last equalized before the year in which the authority adopts a
project area plan for that area.
(4)
"Board" means the authority's governing body, created in Section
11-58-301
.
(5)
"Business plan" means a plan designed to facilitate, encourage, and bring about
development of the authority jurisdictional land to achieve the goals and objectives
described in Subsection
11-58-203(1)
, including the development and establishment of
an inland port.
(6)
"Contaminated land" means land:
(a)
within a project area; and
(b)
that contains hazardous materials, as defined in Section
19-6-302
, hazardous
substances, as defined in Section
19-6-302
, or landfill material on, in, or under the
land.
(7)
"Development" means:
(a)
the demolition, construction, reconstruction, modification, expansion, or
improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
recreational amenity, or other facility, including public infrastructure and
improvements; and
(b)
the planning of, arranging for, or participation in any of the activities listed in
Subsection
(7)(a)
.
(8)
"Development project" means a project for the development of land within a project
area.
(9)
"Distribution center" means a building that is:
(a)
used for the storage, sorting, and distribution of goods intended for sale; and
(b)
not associated with or operated in conjunction with an adjacent manufacturing
facility.
(10)
"Inland port" means one or more sites that:
(a)
contain multimodal facilities, intermodal facilities, or other facilities that:
(i)
are related but may be separately owned and managed; and
(ii)
together are intended to:
(A)
allow global trade to be processed and altered by value-added services as
goods move through the supply chain;
(B)
provide a regional merging point for transportation modes for the distribution
of goods to and from ports and other locations in other regions;
(C)
provide cargo-handling services to allow freight consolidation and
distribution, temporary storage, customs clearance, and connection between
transport modes; and
(D)
provide international logistics and distribution services, including freight
forwarding, customs brokerage, integrated logistics, and information systems;
and
(b)
may include a satellite customs clearance terminal, an intermodal facility, a customs
pre-clearance for international trade, or other facilities that facilitate, encourage, and
enhance regional, national, and international trade.
(11)
"Inland port use" means a use of land:
(a)
for an inland port;
(b)
that directly implements or furthers the purposes of an inland port, as stated in
Subsection
(10)
;
(c)
that complements or supports the purposes of an inland port, as stated in Subsection
(10)
; or
(d)
that depends upon the presence of the inland port for the viability of the use.
(12)
"Intermodal facility" means a facility for transferring containerized cargo between rail,
truck, air, or other transportation modes.
(13)
"Landfill material" means garbage, waste, debris, or other materials disposed of or
placed in a landfill.
(14)
"Multimodal facility" means a hub or other facility for trade combining any
combination of rail, trucking, air cargo, and other transportation services.
(15)
"Nonvoting member" means an individual appointed as a member of the board under
Subsection
11-58-302(3)
who does not have the power to vote on matters of authority
business.
(16)
"Project area" means:
(a)
the authority jurisdictional land, subject to Section
11-58-605
; or
(b)
land outside the authority jurisdictional land, whether consisting of a single
contiguous area or multiple noncontiguous areas, described in a project area plan or
draft project area plan, where the development project set forth in the project area
plan or draft project area plan takes place or is proposed to take place.
(17)
"Project area budget" means a multiyear projection of annual or cumulative revenues
and expenses and other fiscal matters pertaining to the project area.
(18)
"Project area plan" means a written plan that, after its effective date, guides and
controls the development within a project area.
(19)
"Property tax" includes a privilege tax and each levy on an ad valorem basis on
tangible or intangible personal or real property.
(20)
"Property tax differential":
(a)
means the difference between:
(i)
the amount of property tax revenues generated each tax year by all taxing entities
from a project area, using the current assessed value of the property; and
(ii)
the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property; and
(b)
does not include property tax revenue from:
(i)
a county additional property tax or multicounty assessing and collecting levy
imposed in accordance with Section
59-2-1602
;
(ii)
a judgment levy imposed by a taxing entity under Section
59-2-1328
or
59-2-1330
;
or
(iii)
a levy imposed by a taxing entity under Section
11-14-310
to pay for a general
obligation bond.
(21)
"Public entity" means:
(a)
the state, including each department, division, or other agency of the state; or
(b)
a county, city, town, school district, special district, special service district, interlocal
cooperation entity, community reinvestment agency, or other political subdivision of
the state, including the authority.
(22)
(a)
"Public infrastructure and improvements" means infrastructure, improvements,
facilities, or buildings that:
(i)
(A)
benefit the public and are owned by a public entity or a utility; or
(B)
benefit the public and are publicly maintained or operated by a public entity; or
(ii)
(A)
are privately owned;
(B)
benefit the public;
(C)
as determined by the board, provide a substantial benefit to the development
and operation of a project area; and
(D)
are built according to applicable county or municipal design and safety
standards.
(b)
"Public infrastructure and improvements" includes:
(i)
facilities, lines, or systems that provide:
(A)
water, chilled water, or steam; or
(B)
sewer, storm drainage, natural gas, electricity, energy storage, clean energy,
microgrids, or telecommunications service;
(ii)
streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, rail lines, intermodal facilities, multimodal facilities, and public
transportation facilities;
(iii)
an inland port; and
(iv)
infrastructure, improvements, facilities, or buildings that are developed as part of
a remediation project.
(23)
"Reinvestment account" means the State Reinvestment Restricted Account created in
Section
51-9-1002
.
(24)
"Remediation" includes:
(a)
activities for the cleanup, rehabilitation, and development of contaminated land; and
(b)
acquiring an interest in land within a remediation project area.
(24)
(25)
"Remediation differential" means property tax differential generated from a
remediation project area.
(25)
(26)
"Remediation project" means a project for the remediation of contaminated land
that:
(a)
is owned by:
(i)
the state or a department, division, or other instrumentality of the state;
(ii)
an independent entity, as defined in Section
63E-1-102
; or
(iii)
a political subdivision of the state; and
(b)
became contaminated land before the owner described in Subsection
(24)(a)
(26)(a)
obtained ownership of the land.
(26)
(27)
"Remediation project area" means a project area consisting of contaminated land
that is or is expected to become the subject of a remediation project.
(27)
(28)
"Shapefile" means the digital vector storage format for storing geometric
location and associated attribute information.
(28)
(29)
"Taxable value" means the value of property as shown on the last equalized
assessment roll.
(29)
(30)
"Taxing entity":
(a)
means a public entity that levies a tax on property within a project area; and
(b)
does not include a public infrastructure district that the authority creates under Title
17D, Chapter 4, Public Infrastructure District Act.
(30)
(31)
"Voting member" means an individual appointed or designated as a member of
the board under Subsection
11-58-302(2)
.
Section 6. Section
11-58-602
is amended to read:
11-58-602
Effective
05/06/26
. Allowable uses of property tax differential and
other funds.
(1)
(a)
The authority may use money from property tax differential, money the authority
receives from the state, money the authority receives under Subsection
59-12-205(2)(a)(ii)(C)
, and other money available to the authority:
(i)
for any purpose authorized under this chapter;
(ii)
for administrative, overhead, legal, consulting, and other operating expenses of
the authority;
(iii)
to pay for, including financing or refinancing, all or part of the development of
land within or adjacent to a project area, including assisting the ongoing operation
of a development or facility within or adjacent to the project area;
(iv)
to pay the cost of the installation and construction of public infrastructure and
improvements within the project area from which the property tax differential
funds were collected;
(v)
to pay the cost of the installation of public infrastructure and improvements
outside a project area if the board determines by resolution that the infrastructure
and improvements are of benefit to the project area;
(vi)
to pay to a community reinvestment agency for affordable housing, as provided
in Subsection
11-58-606(2)
;
(vii)
to pay the principal and interest on bonds issued by the authority;
(viii)
to pay the cost of acquiring land or an easement on land that is part of or
adjacent to authority jurisdictional land:
(A)
for the perpetual preservation of the land from development; and
(B)
to provide a buffer area between authority jurisdictional land intended for
development and land outside the boundary of the authority jurisdictional land;
and
(ix)
subject to Subsection
(1)(b)
, to encourage, incentivize, or require development
that:
(A)
mitigates noise, air pollution, light pollution, surface and groundwater
pollution, and other negative environmental impacts;
(B)
mitigates traffic congestion; or
(C)
uses high efficiency building construction and operation.
(b)
(i)
(A)
The authority shall establish minimum mitigation and environmental
standards that a landowner is required to meet to qualify for the use of property
tax differential under Subsection
(1)(a)(ix)
in the landowner's development.
(B)
Minimum mitigation and environmental standards established under
Subsection
(1)(b)(i)(A)
shall include a standard prohibiting the use of property
tax differential as a business recruitment incentive, as defined in Section
11-58-603
, for new commercial or industrial development or an expansion of
existing commercial or industrial development within the authority
jurisdictional land if the new or expanded development will consume on an
annual basis more than 200,000 gallons of potable water per day.
(ii)
In establishing minimum mitigation and environmental standards, the authority
shall consult with:
(A)
the municipality in which the development is expected to occur, for
development expected to occur within a municipality; or
(B)
the county in whose unincorporated area the development is expected to
occur, for development expected to occur within the unincorporated area of a
county.
(iii)
The authority may not use property tax differential under Subsection
(1)(a)(viii)
for a landowner's development in a project area unless the minimum mitigation
and environmental standards are followed with respect to that landowner's
development.
(2)
The authority may use revenue generated from the operation of public infrastructure
operated by the authority or improvements, including an intermodal facility, operated by
the authority to:
(a)
operate and maintain the infrastructure or improvements; and
(b)
pay for authority operating expenses, including administrative, overhead, and legal
expenses.
(3)
The determination of the board under Subsection
(1)(a)(v)
regarding benefit to the
project area is final.
(4)
The
Subject to Subsection
(7)
, the
authority may not use property tax differential
revenue collected from one project area for a development project within another project
area.
(5)
(a)
The authority may use up to 10% of the general differential revenue generated
from a project area to pay for affordable housing within or near the project area.
(b)
In using general differential revenue described in Subsection
(5)(a)
, the authority
may provide general differential revenue generated from a project area to a non-profit
housing fund, as defined in Section
17C-1-102
:
(i)
for that non-profit housing fund to assist low-income individuals and families who
would qualify for income targeted housing to achieve homeownership, or retain
homeownership, within a 15 mile radius of the project area that generated the
general differential revenue, in accordance with the mission of the non-profit
housing fund; and
(ii)
pursuant to an agreement between the non-profit housing fund and the authority
governing appropriate uses of general differential revenue.
(6)
The authority may share general differential funds with a taxing entity that levies a
property tax on land within the project area from which the general differential is
generated.
(7)
(a)
For a project area adopted on or after September 30, 2026, the authority shall
contribute at least 1% but no more than 5%, as determined by the board, of all tax
differential revenue generated from the project area to the reinvestment account.
(b)
In coordination with the authority, a county or municipality that is participating in a
project area adopted before September 30, 2026, may designate a portion of the tax
differential revenue generated in the project area that would otherwise be collected
and used by the authority, not to exceed 5%, for contribution to the reinvestment
account.
(c)
The authority shall make a contribution described in this Subsection
(7)
annually or
quarterly, as determined by the board.
Section 7. Section
11-58-607
is enacted to read:
11-58-607
Effective
05/06/26
. Revenue sharing agreements.
(1)
(a)
Whenever a private entity's real estate development is supported by funding from
the authority, authority staff may negotiate and enter into a revenue sharing
agreement with the private entity.
(b)
The revenue sharing agreement shall establish, at a minimum:
(i)
a flat amount from or a percentage of the funds generated from the development
that the private entity agrees to provide to the authority for contribution into the
reinvestment account; and
(ii)
if the authority and private entity agree on a percentage of funds:
(A)
how often the private entity shall provide the percentage to the authority; and
(B)
the amount of time the private entity shall provide the percentage to the
authority.
(2)
(a)
Following the remediation and development of land included in a remediation
project area, as described in Section
11-58-605
, the authority shall ensure that a
percentage of the profits derived from private sector activities in the project area are
deposited into the reinvestment account on an annual basis.
(b)
The board, in consultation with the Office of the Legislative Fiscal Analyst, shall
establish the percentage of profits described in Subsection
(2)(a)
for each remediation
project area, which shall be no more than 50% of annual revenues from a remediation
project area.
Section 8. Section
17-80-501
is amended to read:
17-80-501
Effective
05/06/26
. County designation of a home ownership
promotion zone.
(1)
Subject to Sections
17-80-502
and
17-80-503
, a county may create a home ownership
promotion zone
:
(a)
before January 1, 2028; and
(b)
as described in this section.
(2)
A home ownership promotion zone created under this section:
(a)
is an area of 10 contiguous unincorporated acres or less located entirely within the
boundaries of the county, zoned for fewer than six housing units per acre before the
creation of the home ownership promotion zone;
(b)
shall be re-zoned for at least six housing units per acre; and
(c)
may not be encumbered by any residential building permits as of the day on which
the home ownership promotion zone is created.
(3)
(a)
The county shall designate the home ownership promotion zone by resolution of
the legislative body of the county following:
(i)
the recommendation of the county planning commission; and
(ii)
the notification requirements described in Section
17-80-503
.
(b)
The resolution described in Subsection
(3)(a)
shall describe how the home ownership
promotion zone created in accordance with this section meets the objectives and
requirements of Section
17-80-502
.
(c)
The home ownership promotion zone is created on the effective date of the resolution
described in Subsection
(3)(a)
.
(4)
If a home ownership promotion zone is created as described in this section:
(a)
affected local taxing entities are required to participate according to the requirements
of the home ownership promotion zone established by the county; and
(b)
each affected taxing entity is required to participate at the same rate.
(5)
A home ownership promotion zone may be modified by the same manner it is created as
described in Subsection
(3)
.
(6)
Within 30 days after the day on which the county creates the home ownership
promotion zone as described in Subsection
(3)
, the county shall:
(a)
record with the recorder a document containing:
(i)
a description of the land within the home ownership promotion zone; and
(ii)
the date of creation of the home ownership promotion zone;
(b)
transmit a copy of the description of the land within the home ownership promotion
zone and an accurate map or plat indicating the boundaries of the home ownership
promotion zone to the Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a map and description of the land within the home ownership promotion
zone to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the home ownership promotion zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity impacted by the
home ownership promotion zone;
(iv)
the tax commission; and
(v)
the State Board of Education.
(7)
A county may receive tax increment and use home ownership promotion zone funds as
described in Section
17-80-504
.
(8)
A home ownership promotion zone created before January 1, 2028, continues to exist,
as described in this part, and shall comply with the provisions of this part until dissolved.
Section 9. Section
17B-2a-1302
is amended to read:
17B-2a-1302
Effective
05/06/26
. Provisions applicable to infrastructure
financing district -- Exceptions -- Conflicting provisions -- Contract for administrative
services.
(1)
An infrastructure financing district is governed by and has the powers stated in:
(a)
this part; and
(b)
Chapter 1, Provisions Applicable to All Special Districts, except as provided in
Subsection
(1)(b)
Subsection
(5)
.
(2)
(a)
Notwithstanding Subsection
17B-1-103(2)(f)
and except as provided in
Subsection
(2)(b)
, an infrastructure financing district may issue bonds only as
provided in Title 11, Chapter 42, Assessment Area Act, subject to Subsection
(2)(b)
(2)(c)
, and Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act.
(b)
If an infrastructure financing district is created to facilitate a regionally significant
development zone, as described in Title 17C, Chapter 6, Regionally Significant
Development Zone Act, the infrastructure financing district may issue negotiable
bonds in accordance with Title 11, Chapter 14, Local Government Bonding Act, to
pay all or part of the costs of acquiring, acquiring an interest in, improving, or
extending any of the improvements, facilities, or property allowed under Section
11-14-103
.
(b)
(c)
To the extent that the provisions of Title 11, Chapter 42, Assessment Area Act,
apply to the use of funds from an assessment or an assessment bond for infrastructure
operation and maintenance costs or for the cost of conducting economic promotion
activities, those provisions do not apply to an infrastructure financing district.
(c)
(d)
Before a county or municipality's final inspection required for the issuance of a
certificate of occupancy for a residential unit that is subject to an assessment levied
by an infrastructure financing district under Title 11, Chapter 42, Assessment Area
Act, the infrastructure financing district shall ensure that the assessment allocable to
that unit is paid in full and that any assessment lien on that unit is satisfied and
released.
(3)
Notwithstanding Subsection
17B-1-103(2)(h)
, an infrastructure financing district may
not exercise the power of eminent domain.
(4)
This part applies only to an infrastructure financing district.
(5)
If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
Special Districts, and a provision in this part, the provision in this part governs.
(6)
An infrastructure financing district may contract with another governmental entity for
the other governmental entity to provide administrative services to the infrastructure
financing district.
Section 10. Section
17C-1-102
is amended to read:
17C-1-102
Effective
05/06/26
. Definitions.
As used in this title:
(1)
"Active project area" means a project area that has not been dissolved in accordance
with Section
17C-1-702
.
(2)
"Adjusted tax increment" means the percentage of tax increment, if less than 100%, that
an agency is authorized to receive:
(a)
for a pre-July 1, 1993, project area plan, under Section
17C-1-403
, excluding tax
increment under Subsection
17C-1-403(3)
;
(b)
for a post-June 30, 1993, project area plan, under Section
17C-1-404
, excluding tax
increment under Section
17C-1-406
;
(c)
under a project area budget approved by a taxing entity committee; or
(d)
under an interlocal agreement that authorizes the agency to receive a taxing entity's
tax increment.
(3)
"Affordable housing" means housing owned or occupied by a low or moderate income
family, as determined by resolution of the agency.
(4)
"Agency" or "community reinvestment agency" means a separate body corporate and
politic, created under Section
17C-1-201.5
or as a redevelopment agency or community
development and renewal agency under previous law:
(a)
that is a political subdivision of the state;
(b)
that is created to undertake or promote project area development as provided in this
title;
(c)
that may, at the direction of the county or municipality that creates the agency, fulfill
the duties described in Chapter 6, Regionally Significant Development Zones Act;
and
(c)
(d)
whose geographic boundaries are coterminous with:
(i)
for an agency created by a county, the unincorporated area of the county; and
(ii)
for an agency created by a municipality, the boundaries of the municipality.
(5)
"Agency funds" means money that an agency collects or receives for agency operations,
implementing a project area plan or an implementation plan as defined in Section
17C-1-1001
, or other agency purposes, including:
(a)
project area funds;
(b)
income, proceeds, revenue, or property derived from or held in connection with the
agency's undertaking and implementation of project area development or
agency-wide project development as defined in Section
17C-1-1001
;
(c)
a contribution, loan, grant, or other financial assistance from any public or private
source;
(d)
project area incremental revenue as defined in Section
17C-1-1001
; or
(e)
property tax revenue as defined in Section
17C-1-1001
.
(6)
"Annual income" means the same as that term is defined in regulations of the United
States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as
amended or as superseded by replacement regulations.
(7)
"Assessment roll" means the same as that term is defined in Section
59-2-102
.
(8)
"Base taxable value" means, unless otherwise adjusted in accordance with provisions of
this title, a property's taxable value as shown upon the assessment roll last equalized
during the base year.
(9)
"Base year" means, except as provided in Subsection
17C-1-402(4)(c)
, the year during
which the assessment roll is last equalized:
(a)
for a pre-July 1, 1993, urban renewal or economic development project area plan,
before the project area plan's effective date;
(b)
for a post-June 30, 1993, urban renewal or economic development project area plan,
or a community reinvestment project area plan that is subject to a taxing entity
committee:
(i)
before the date on which the taxing entity committee approves the project area
budget; or
(ii)
if taxing entity committee approval is not required for the project area budget,
before the date on which the community legislative body adopts the project area
plan;
(c)
for a project on an inactive airport site, after the later of:
(i)
the date on which the inactive airport site is sold for remediation and
development; or
(ii)
the date on which the airport that operated on the inactive airport site ceased
operations; or
(d)
for a community development project area plan or a community reinvestment project
area plan that is subject to an interlocal agreement, as described in the interlocal
agreement.
(10)
"Basic levy" means the portion of a school district's tax levy constituting the minimum
basic levy under Section
59-2-902
.
(11)
"Board" means the governing body of an agency, as described in Section
17C-1-203
.
(12)
"Budget hearing" means the public hearing on a proposed project area budget required
under Subsection
17C-2-201(2)(d)
for an urban renewal project area budget, Subsection
17C-3-201(2)(d)
for an economic development project area budget, or Subsection
17C-5-302(2)(e)
for a community reinvestment project area budget.
(13)
"Closed military base" means land within a former military base that the Defense Base
Closure and Realignment Commission has voted to close or realign when that action has
been sustained by the president of the United States and Congress.
(14)
"Combined incremental value" means the combined total of all incremental values
from all project areas, except project areas that contain some or all of a military
installation or inactive industrial site, within the agency's boundaries under project area
plans and project area budgets at the time that a project area budget for a new project
area is being considered.
(15)
"Community" means a county or municipality.
(16)
"Community development project area plan" means a project area plan adopted under
Chapter
4, Part 1
, Community Development Project Area Plan.
(17)
"Community legislative body" means the legislative body of the community that
created the agency.
(18)
"Community reinvestment project area plan" means a project area plan adopted under
Chapter
5, Part 1
, Community Reinvestment Project Area Plan.
(19)
"Contest" means to file a written complaint in a court with jurisdiction under Title
78A, Judiciary and Judicial Administration
, and in a county in which the agency is
located if the action is filed in the district court.
(20)
"Development impediment" means a condition of an area that meets the requirements
described in Section
17C-2-303
for an urban renewal project area or Section
17C-5-405
for a community reinvestment project area.
(21)
"Development impediment hearing" means a public hearing regarding whether a
development impediment exists within a proposed:
(a)
urban renewal project area under Subsection
17C-2-102(1)(a)(i)(C)
and Section
17C-2-302
; or
(b)
community reinvestment project area under Section
17C-5-404
.
(22)
"Development impediment study" means a study to determine whether a development
impediment exists within a survey area as described in Section
17C-2-301
for an urban
renewal project area or Section
17C-5-403
for a community reinvestment project area.
(23)
"Economic development project area plan" means a project area plan adopted under
Chapter
3, Part 1
, Economic Development Project Area Plan.
(24)
"Fair share ratio" means the ratio derived by:
(a)
for a municipality, comparing the percentage of all housing units within the
municipality that are publicly subsidized income targeted housing units to the
percentage of all housing units within the county in which the municipality is located
that are publicly subsidized income targeted housing units; or
(b)
for the unincorporated part of a county, comparing the percentage of all housing
units within the unincorporated county that are publicly subsidized income targeted
housing units to the percentage of all housing units within the whole county that are
publicly subsidized income targeted housing units.
(25)
"Family" means the same as that term is defined in regulations of the United States
Department of Housing and Urban Development, 24 C.F.R.
Section
Sec.
5.403, as
amended or as superseded by replacement regulations.
(26)
"Greenfield" means land not developed beyond agricultural, range, or forestry use.
(27)
"Hazardous waste" means any substance defined, regulated, or listed as a hazardous
substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant, or
toxic substance, or identified as hazardous to human health or the environment, under
state or federal law or regulation.
(28)
"Housing allocation" means project area funds allocated for housing under Section
17C-2-203
,
17C-3-202
, or
17C-5-307
for the purposes described in Section
17C-1-412
.
(29)
"Housing fund" means a fund created by an agency for purposes described in Section
17C-1-411
or
17C-1-412
that is comprised of:
(a)
project area funds, project area incremental revenue as defined in Section
17C-1-1001
,
or property tax revenue as defined in Section
17C-1-1001
allocated for the purposes
described in Section
17C-1-411
; or
(b)
an agency's housing allocation.
(30)
(a)
"Inactive airport site" means land that:
(i)
consists of at least 100 acres;
(ii)
is occupied by an airport:
(A)
(I)
that is no longer in operation as an airport; or
(II)
(Aa)
that is scheduled to be decommissioned; and
(Bb)
for which a replacement commercial service airport is under
construction; and
(B)
that is owned or was formerly owned and operated by a public entity; and
(iii)
requires remediation because:
(A)
of the presence of hazardous waste or solid waste; or
(B)
the site lacks sufficient public infrastructure and facilities, including public
roads, electric service, water system, and sewer system, needed to support
development of the site.
(b)
"Inactive airport site" includes a perimeter of up to 2,500 feet around the land
described in Subsection
(30)(a)
.
(31)
(a)
"Inactive industrial site" means land that:
(i)
consists of at least 1,000 acres;
(ii)
is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
facility; and
(iii)
requires remediation because of the presence of hazardous waste or solid waste.
(b)
"Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
described in Subsection
(31)(a)
.
(32)
"Income targeted housing" means housing that is:
(a)
owned and occupied by a family whose annual income is at or below 120% of the
median annual income for a family within the county in which the housing is located;
or
(b)
occupied by a family whose annual income is at or below 80% of the median annual
income for a family within the county in which the housing is located.
(33)
"Incremental value" means a figure derived by multiplying the marginal value of the
property located within a project area on which tax increment is collected by a number
that represents the adjusted tax increment from that project area that is paid to the
agency.
(34)
"Loan fund board" means the Olene Walker Housing Loan Fund Board, established
under Title
35A, Chapter 8, Part 5
, Olene Walker Housing Loan Fund.
(35)
(a)
"
Local government building" means a building owned and operated by a
community for the primary purpose of providing one or more primary community
functions, including:
(i)
a fire station;
(ii)
a police station;
(iii)
a city hall; or
(iv)
a court or other judicial building.
(b)
"
Local government building" does not include a building the primary purpose of
which is cultural or recreational in nature.
(36)
"Low-income individual" means the same as that term is defined in Section
35A-8-504.5
.
(37)
"Major transit investment corridor" means the same as that term is defined in Section
10-20-102
.
(38)
"Marginal value" means the difference between actual taxable value and base taxable
value.
(39)
"Military installation project area" means a project area or a portion of a project area
located within a federal military installation ordered closed by the federal Defense Base
Realignment and Closure Commission.
(40)
"Municipality" means a city or town.
(41)
"Non-profit housing fund" means:
(a)
an organization that meets the definition of "housing organization" in Section
35A-8-2401
;
(b)
a registered nonprofit that assists veterans or individuals who work in public service
to achieve homeownership in the state;
(c)
a registered nonprofit that:
(i)
assists low-income individuals or families who would qualify for income targeted
housing to achieve homeownership in the state; and
(ii)
provides direct support to help a low-income individual or a family eligible for
income targeted housing to retain ownership of a home, including through
rehabilitation services, lending for rehabilitation, or foreclosure mitigation
counseling that results in retention of the home, refinancing, or a reverse mortgage;
(d)
a registered nonprofit that partners with a community to promote affordable housing
for the workforce in that community; or
(e)
a registered nonprofit established to administer housing programs on behalf of an
association representing 10 or more counties in the state.
(42)
"Participant" means one or more persons that enter into a participation agreement with
an agency.
(43)
"Participation agreement" means a written agreement between a person and an agency
under Subsection
17C-1-202(5)
.
(44)
"Plan hearing" means the public hearing on a proposed project area plan required
under Subsection
17C-2-102(1)(a)(vi)
for an urban renewal project area plan, Subsection
17C-3-102(1)(d)
for an economic development project area plan, Subsection
17C-4-102(1)(d)
for a community development project area plan, or Subsection
17C-5-104(3)(e)
for a community reinvestment project area plan.
(45)
"Post-June 30, 1993, project area plan" means a project area plan adopted on or after
July 1, 1993, and before May 10, 2016, whether or not amended
subsequent to
the
project area plan's adoption.
(46)
"Pre-July 1, 1993, project area plan" means a project area plan adopted before July 1,
1993, whether or not amended
subsequent to
the
project area plan's adoption.
(47)
"Private," with respect to real property, means property not owned by a public entity or
any other governmental entity.
(48)
"Project area" means the geographic area described in a project area plan within which
the project area development described in the project area plan takes place or is
proposed to take place.
(49)
"Project area budget" means a multiyear projection of annual or cumulative revenues
and expenses and other fiscal matters pertaining to a project area prepared in accordance
with:
(a)
for an urban renewal project area, Section
17C-2-201
;
(b)
for an economic development project area, Section
17C-3-201
;
(c)
for a community development project area, Section
17C-4-204
; or
(d)
for a community reinvestment project area, Section
17C-5-302
.
(50)
"Project area development" means activity within a project area that, as determined by
the board, encourages, promotes, or provides development or redevelopment for the
purpose of implementing a project area plan, including:
(a)
promoting, creating, or retaining public or private jobs within the state or a
community;
(b)
providing office, manufacturing, warehousing, distribution, parking, or other
facilities or improvements;
(c)
planning, designing, demolishing, clearing, constructing, rehabilitating, or
remediating environmental issues;
(d)
providing residential, commercial, industrial, public, or other structures or spaces,
including recreational and other facilities incidental or appurtenant to the structures
or spaces;
(e)
altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
existing structures;
(f)
providing open space, including streets or other public grounds or space around
buildings;
(g)
providing public or private buildings, infrastructure, structures, or improvements;
(h)
relocating a business;
(i)
improving public or private recreation areas or other public grounds;
(j)
eliminating a development impediment or the causes of a development impediment;
(k)
redevelopment as defined under the law in effect before May 1, 2006; or
(l)
any activity described in this Subsection
(50)
outside of a project area that the board
determines to be a benefit to the project area.
(51)
"Project area funds" means tax increment or sales and use tax revenue that an agency
receives under a project area budget adopted by a taxing entity committee or an
interlocal agreement.
(52)
"Project area funds collection period" means the period of time that:
(a)
begins the day on which the first payment of project area funds is distributed to an
agency under a project area budget approved by a taxing entity committee or an
interlocal agreement; and
(b)
ends the day on which the last payment of project area funds is distributed to an
agency under a project area budget approved by a taxing entity committee or an
interlocal agreement.
(53)
"Project area plan" means an urban renewal project area plan, an economic
development project area plan, a community development project area plan, or a
community reinvestment project area plan that, after the project area plan's effective
date, guides and controls the project area development.
(54)
(a)
"Property tax" means each levy on an ad valorem basis on tangible or intangible
personal or real property.
(b)
"Property tax" includes a privilege tax imposed under Title
59, Chapter 4
, Privilege
Tax.
(55)
"Public entity" means:
(a)
the United States, including an agency of the United States;
(b)
the state, including any of the state's departments or agencies; or
(c)
a political subdivision of the state, including a county, municipality, school district,
special district, special service district, community reinvestment agency, or interlocal
cooperation entity.
(56)
"Publicly owned infrastructure and improvements" means water, sewer, storm
drainage, electrical, natural gas, telecommunication, or other similar systems and lines,
streets, roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation
facilities, or other facilities, infrastructure, and improvements benefitting the public and
to be publicly owned or publicly maintained or operated.
(57)
"Record property owner" or "record owner of property" means the owner of real
property, as shown on the records of the county in which the property is located, to
whom the property's tax notice is sent.
(58)
"Sales and use tax revenue" means revenue that is:
(a)
generated from a tax imposed under Title
59, Chapter 12
, Sales and Use Tax Act; and
(b)
distributed to a taxing entity in accordance with Sections
59-12-204
and
59-12-205
.
(59)
"Superfund site":
(a)
means an area included in the National Priorities List under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec.
9605; and
(b)
includes an area formerly included in the National Priorities List, as described in
Subsection
(59)(a)
, but removed from the list following remediation that leaves on
site the waste that caused the area to be included in the National Priorities List.
(60)
"Survey area" means a geographic area designated for study by a survey area
resolution to determine whether:
(a)
one or more project areas within the survey area are feasible; or
(b)
a development impediment exists within the survey area.
(61)
"Survey area resolution" means a resolution adopted by a board that designates a
survey area.
(62)
"Taxable value" means:
(a)
the taxable value of all real property a county assessor assesses in accordance with
Title
59, Chapter 2, Part 3
, County Assessment, for the current year;
(b)
the taxable value of all real and personal property the commission assesses in
accordance with Title
59, Chapter 2, Part 2
, Assessment of Property, for the current
year; and
(c)
the year end taxable value of all personal property a county assessor assesses in
accordance with Title
59, Chapter 2, Part 3
, County Assessment, contained on the
prior year's tax rolls of the taxing entity.
(63)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a project area designated in the project area plan as the area from
which tax increment is to be collected, using the current assessed value of the
property and each taxing entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value of the property and each taxing entity's current
certified tax rate as defined in Section
59-2-924
.
(b)
"Tax increment" does not include taxes levied and collected under Section
59-2-1602
on or after January 1, 1994, upon the taxable property in the project area unless:
(i)
the project area plan was adopted before May 4, 1993, whether or not the project
area plan was subsequently amended; and
(ii)
the taxes were pledged to support bond indebtedness or other contractual
obligations of the agency.
(64)
"Taxing entity" means a public entity that:
(a)
levies a tax on property located within a project area; or
(b)
imposes a sales and use tax under Title
59, Chapter 12
, Sales and Use Tax Act.
(65)
"Taxing entity committee" means a committee representing the interests of taxing
entities, created in accordance with Section
17C-1-402
.
(66)
"Unincorporated" means not within a municipality.
(67)
"Urban renewal project area plan" means a project area plan adopted under Chapter
2,
Part 1
, Urban Renewal Project Area Plan.
(68)
"Veteran" means the same as that term is defined in Section
68-3-12.5
.
Section 11. Section
17C-1-409
is amended to read:
17C-1-409
Effective
05/06/26
. Allowable uses of agency funds.
(1)
(a)
An agency may use agency funds:
(i)
for any purpose authorized under this title;
(ii)
for administrative, overhead, legal, or other operating expenses of the agency,
including consultant fees and expenses under Subsection
17C-2-102(1)(b)(ii)(B)
or funding for a business resource center;
(iii)
subject to Section
11-41-103
, to pay for, including financing or refinancing, all
or part of:
(A)
project area development in a project area, including environmental
remediation activities occurring before or after adoption of the project area
plan;
(B)
housing-related expenditures, projects, or programs as described in Section
17C-1-411
or
17C-1-412
;
(C)
an incentive or other consideration paid to a participant under a participation
agreement, subject to Subsection
(6)
;
(D)
subject to Subsections
(1)(c)
and
(4)
, the value of the land for and the cost of
the installation and construction of any publicly owned building, facility,
structure, landscaping, or other improvement within the project area from
which the project area funds are collected; or
(E)
the cost of the installation of publicly owned infrastructure and improvements
outside the project area from which the project area funds are collected if the
board and the community legislative body determine by resolution that the
publicly owned infrastructure and improvements benefit the project area;
(iv)
in an urban renewal project area that includes some or all of an inactive industrial
site and subject to Subsection
(1)(e)
, to reimburse the Department of
Transportation created under Section
72-1-201
, or a public transit district created
under
Title 17B, Chapter 2a, Part 8, Public Transit District Act
, for the cost of:
(A)
construction of a public road, bridge, or overpass;
(B)
relocation of a railroad track within the urban renewal project area; or
(C)
relocation of a railroad facility within the urban renewal project area;
(v)
subject to Subsection
(5)
, to transfer funds to a community that created the
agency; or
(vi)
subject to Subsection
(1)(f)
, for agency-wide project development under
Part 10,
Agency Taxing Authority
.
(b)
The determination of the board and the community legislative body under Subsection
(1)(a)(iii)(E)
regarding benefit to the project area shall be final and conclusive.
(c)
An agency may not use project area funds received from a taxing entity for the
purposes stated in Subsection
(1)(a)(iii)(D)
under an urban renewal project area plan,
an economic development project area plan, or a community reinvestment project
area plan without the community legislative body's consent.
(d)
(i)
Subject to Subsection
(1)(d)(ii)
, an agency may loan project area funds from a
project area fund to another project area fund if:
(A)
the board approves; and
(B)
the community legislative body approves.
(ii)
An agency may not loan project area funds under Subsection
(1)(d)(i)
unless the
projections for agency funds are sufficient to repay the loan amount.
(iii)
A loan described in this Subsection
(1)(d)
is not subject to
Title 10, Chapter 5,
Uniform Fiscal Procedures Act for Utah Towns
,
Title 10, Chapter 6, Uniform
Fiscal Procedures Act for Utah Cities
, Title
17, Chapter 63
, Fiscal Authority and
Processes, or
Title 17B, Chapter 1, Part 6, Fiscal Procedures for Special Districts
.
(e)
Before an agency may pay any tax increment or sales tax revenue under Subsection
(1)(a)(iv)
, the agency shall enter into an interlocal agreement defining the terms of
the reimbursement with:
(i)
the Department of Transportation; or
(ii)
a public transit district.
(f)
Before an agency may use project area funds for agency-wide project development,
as defined in Section
17C-1-1001
, the agency shall obtain the consent of the taxing
entity committee or each taxing entity party to an interlocal agreement with the
agency.
(2)
(a)
Sales and use tax revenue that an agency receives from a taxing entity is not
subject to the prohibition or limitations of
Title 11, Chapter 41, Prohibition on Retail
Facility Incentive Payments Act
Title 11, Chapter 41, Part 1, Prohibition on Retail
Facility Incentive Payments Act
.
(b)
An agency may use sales and use tax revenue that the agency receives under an
interlocal agreement under Section
17C-4-201
or
17C-5-204
for the uses authorized
in the interlocal agreement.
(3)
(a)
An agency may contract with the community that created the agency or another
public entity to use agency funds to reimburse the cost of items authorized by this
title to be paid by the agency that are paid by the community or other public entity.
(b)
If land is acquired or the cost of an improvement is paid by another public entity and
the land or improvement is leased to the community, an agency may contract with
and make reimbursement from agency funds to the community.
(4)
Notwithstanding any other provision of this title, an agency may not use project area
funds, project area incremental revenue as defined in Section
17C-1-1001
, or property
tax revenue as defined in Section
17C-1-1001
, to construct a local government building
unless the taxing entity committee or each taxing entity party to an interlocal agreement
with the agency consents.
(5)
For the purpose of offsetting the community's annual local contribution to the Homeless
Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in a
calendar year to a community under Subsections
(1)(a)(v)
,
17C-1-411(1)(d)
, and
17C-1-412(1)(a)(x)
may not exceed the community's annual local contribution as
defined in Subsection
59-12-205(5)
.
(6)
(a)
Before providing tax increment funding to a private participant pursuant to a
participation agreement, an agency shall consult with the county treasurer of the
county in which the agency operates to determine if:
(i)
the private participant is delinquent on property tax;
(ii)
the private participant is delinquent on privilege tax; or
(iii)
the private participant is subject to a political subdivision lien for past due fees or
charges.
(b)
If the county treasurer, in consultation with the agency, determines a participant is
delinquent on property tax or privilege tax or subject to a political subdivision lien,
the agency shall confirm whether the participation agreement between the agency and
private participant includes a provision described in Subsection
17C-1-202(5)(d)
.
(c)
If authorized by the agency pursuant to a participation agreement, the county
treasurer of the county in which the agency operates may provide tax increment
funding that would otherwise be provided directly to the agency to provide to the
private participant to:
(i)
the county, in the amount the private entity is delinquent for property tax or
privilege tax; and
(ii)
the political subdivision holding the political subdivision lien, in the amount
necessary to resolve the political subdivision lien.
Section 12. Section
17C-1-603
is amended to read:
17C-1-603
Effective
05/06/26
. Reporting requirements -- Governor's Office of
Economic Opportunity to maintain a database.
(1)
As used in this section:
(a)
"Database" means the collection of electronic data described in Subsection
(2)(a)
.
(b)
"Office" means the Governor's Office of Economic Opportunity.
(c)
"Office website" means a public website maintained by the office.
(d)
"Project area" means:
(i)
the same as that term is defined in Section
17C-1-102
; and
(ii)
if applicable, a regionally significant development zone for which the agency is
responsible, as described in Chapter 6, Regionally Significant Development Zones
Act.
(e)
"Project area funds" means:
(i)
the same as that term is defined in Section
17C-1-102
; and
(ii)
if applicable, regionally significant development zone revenue as described in
Section
17C-6-202
.
(2)
The office shall:
(a)
create and maintain electronic data to track information for each agency located
within the state; and
(b)
make the database publicly accessible from the office website.
(3)
(a)
The office may:
(i)
contract with a third party to create and maintain the database; and
(ii)
charge a fee for a county, city, or agency to provide information to the database.
(b)
The office shall make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish a fee schedule for the fee described in
Subsection
(3)(a)(ii)
.
(4)
On or before June 30 of each year, an agency shall, for each active project area for
which the project area funds collection period has not expired, submit to the office for
inclusion in the database the following information:
(a)
an assessment of the change in marginal value, including:
(i)
the base year;
(ii)
the estimated current assessed value;
(iii)
the percentage change in marginal value; and
(iv)
a narrative description of the relative growth in assessed value;
(b)
the amount of project area funds the agency received and the amount of project area
funds the agency spent for each year of the project area funds collection period,
broken down by the applicable budget or funds analysis category described in
Subsection
(4)(d)
, including:
(i)
a comparison of the actual project area funds received and spent for each year to
the amount of project area funds forecasted for each year when the project area
was created, if available;
(ii)
(A)
the agency's historical receipts and expenditures of project area funds,
including the tax year for which the agency first received project area funds
from the project area; or
(B)
if the agency has not yet received project area funds from the project area, the
year in which the agency expects each project area funds collection period to
begin;
(iii)
a list of each taxing entity that levies or imposes a tax within the project area and
a description of the benefits that each taxing entity receives from the project area;
and
(iv)
the amount paid to other taxing entities under Section
17C-1-410
, if applicable;
(c)
a description of current and anticipated project area development, including:
(i)
a narrative of any significant project area development, including infrastructure
development, site development, participation agreements, or vertical construction;
and
(ii)
other details of development within the project area, including:
(A)
the total developed acreage;
(B)
the total undeveloped acreage;
(C)
the percentage of residential development; and
(D)
the total number of housing units authorized, if applicable;
(d)
the project area budget, if applicable, or other project area funds analyses, with
receipts and expenditures categorized by the type of receipt and expenditure related
to the development performed or to be performed under the project area plan,
including:
(i)
each project area funds collection period, including:
(A)
the start and end date of the project area funds collection period; and
(B)
the number of years remaining in each project area funds collection period;
(ii)
the amount of project area funds the agency is authorized to receive from the
project area cumulatively and from each taxing entity, including:
(A)
the total dollar amount; and
(B)
the percentage of the total amount of project area funds generated within the
project area;
(iii)
the remaining amount of project area funds the agency is authorized to receive
from the project area cumulatively and from each taxing entity; and
(iv)
the amount of project area funds the agency is authorized to use to pay for the
agency's administrative costs, as described in Subsection
17C-1-409(1)
, including:
(A)
the total dollar amount; and
(B)
the percentage of the total amount of all project area funds;
(e)
the estimated amount of project area funds that the agency is authorized to receive
from the project area for the current calendar year;
(f)
the estimated amount of project area funds to be paid to the agency for the next
calendar year;
(g)
a map of the project area;
(h)
a description of how the goals, policies, and purposes of the project area plan have
been furthered during the preceding year; and
(i)
any other relevant information the agency elects to provide.
(5)
An agency with no active project area shall, no later than June 30 of each year until the
agency is dissolved under Section
17C-1-701.5
, submit a report to the office stating that
the agency has no active project area.
(6)
Any information an agency submits in accordance with this section:
(a)
is for informational purposes only; and
(b)
does not alter the amount of project area funds that an agency is authorized to receive
from a project area.
(7)
The provisions of this section apply regardless of when the agency or project area is
created.
(8)
On or before September 1 of each year, the office shall prepare and submit an annual
written report to the Political Subdivisions Interim Committee that identifies the
agencies that complied and the agencies that failed to comply with the reporting
requirements of this section during the preceding reporting period.
(9)
(a)
If, by September 30 of the year the information is due, the office does not receive
the information that an agency is required to submit under Subsection
(4)
, the office
shall:
(i)
refer the noncompliant agency to the state auditor for review; and
(ii)
post a notice on the office website identifying the noncompliant agency and
describing the agency's noncompliance.
(b)
If the office does not receive a report an agency is required to submit under
Subsection
(5)
, the office shall refer the noncompliant agency to the state auditor for
review.
(c)
If, for two consecutive years, the office does not receive information an agency is
required to submit under Subsection
(4)
:
(i)
the office shall, no later than July 31 of the second consecutive year, notify the
auditor and treasurer of the county in which the noncompliant agency is located of
the agency's noncompliance; and
(ii)
upon receiving the notice described in Subsection
(9)(c)(i)
, the county treasurer
shall withhold from the agency 20% of the amount of tax increment the agency is
otherwise entitled to receive.
(d)
If, after having funds withheld under Subsection
(9)(c)(ii)
, an agency complies with
Subsection
(4)
:
(i)
the office shall notify the county auditor and treasurer that the agency has
complied with the requirement of Subsection
(4)
; and
(ii)
the county treasurer shall disburse the withheld funds to the agency.
Section 13. Section
17C-6-101
is enacted to read:
6. Regionally Significant Development Zones Act
1. General Provisions
17C-6-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Creating entity" means the political subdivision that proposes and receives approval for
the creation of a zone under Title 63N, Chapter 3a, Part 2, Creation of Regionally
Significant Development Zones.
(2)
"Enhanced development" means the same as that term is defined in Section
63N-3a-101
.
(3)
"Financing district" means:
(a)
an infrastructure financing district created under Title 17B, Chapter 2a, Part 13,
Infrastructure Financing District; or
(b)
a public infrastructure district created under Title 17D, Chapter 4, Public
Infrastructure District Act.
(4)
"Impacted primary area" means the same as that term is defined in Section
63N-3a-101
.
(5)
"Large load data center" means the same as that term is defined in Section
11-41-201
.
(6)
"Proposal" means the document approved by a committee as described in Title 63N,
Chapter 3a, Part 2, Creation of Regionally Significant Development Zones.
(7)
"Public infrastructure and improvements" means the same as that term is defined in
Subsections
17D-4-102(14)(a)(i)
and
(ii)
, except the requirement in Subsection
17D-4-102(14)(a)(i)(C)
that the acquisition or financing be expressly permitted by a
governing document or agreement may be fulfilled by the agency described in Section
17C-6-102
or a financing district created by the agency.
(8)
"Zone" means a regionally significant development zone created under Title 63N,
Chapter 3a, Part 2, Creation of Regionally Significant Development Zones.
Section 14. Section
17C-6-102
is enacted to read:
17C-6-102
Effective
05/06/26
. Agency to manage a regionally significant
development zone.
(1)
(a)
Upon the approval of a zone, as described in Section
63N-3a-203
, a creating entity
shall designate the creating entity's agency as the entity responsible for:
(i)
the management of the zone;
(ii)
the development of the zone; and
(iii)
the fulfillment of any duties described in this chapter.
(b)
If one or more creating entities propose a zone, as described in Section
63N-3a-201
by entering into an interlocal agreement as described in Section
63N-3a-202
, the
interlocal agreement shall describe:
(i)
which agency is responsible for the management of the zone and zone revenue; or
(ii)
how each participating agency shall share responsibility for:
(A)
the management of the zone; and
(B)
zone revenue, as described in Part 2, Financing.
(2)
A proposal, along with conditions established by the committee that approved the
proposal under Section
63N-3a-203
, constitutes a governing document for the zone.
(3)
(a)
The agency, in consultation with the creating entity, may create policies governing
the development of the zone if the policies:
(i)
conform with the proposal; and
(ii)
do not contradict any provision of the proposal or any condition established by
the committee that approved the proposal to create the zone.
(b)
If the agency and creating entity determine a modification to the proposal is required
to pursue the objectives of the zone, the creating entity shall submit a proposal to
modify the regionally significant development zone as described in Section
63N-3a-208
.
Section 15. Section
17C-6-201
is enacted to read:
2. Financing
17C-6-201
Effective
05/06/26
. Energy tax -- Agency to study revenue
generation options.
(1)
A county that levies the county energy excise tax authorized by Title 59, Chapter 35,
County Energy Excise Tax Act, may provide revenue generated by the county energy
excise tax to an agency for use in a zone if the zone includes at least one large load data
center.
(2)
An agency shall study options to generate additional revenue within a zone and provide
recommendations to the legislative body of the creating entity.
Section 16. Section
17C-6-202
is enacted to read:
17C-6-202
Effective
05/06/26
. Regionally significant development zone revenue.
(1)
The following are approved revenue sources for a zone:
(a)
property tax increment or personal property tax, as described in Section
63N-3a-204
;
and
(b)
revenue, if any, an agency receives from a county as described in Section
17C-6-201
.
(2)
Revenue described in Subsection
(1)
:
(a)
is zone revenue;
(b)
shall be administered by the agency; and
(c)
may be expended as provided in this chapter.
Section 17. Section
17C-6-203
is enacted to read:
17C-6-203
Effective
05/06/26
. Allowable uses of zone revenue.
(1)
An agency that is assigned to manage a zone shall use zone revenue within:
(a)
the zone; and
(b)
an impacted primary area, if the agency finds that the use of the zone revenue will:
(i)
directly benefit the zone; and
(ii)
promote the objectives of the zone, as outlined in the proposal.
(2)
An agency that receives zone revenue shall, subject to any requirement to remit revenue
to the State Reinvestment Restricted Account as described in Title 63N, Chapter 3a, Part
2, Creation of Regionally Significant Development Zones, allocate zone revenue to:
(a)
development in the zone, including, as applicable:
(i)
income targeted housing costs;
(ii)
structured parking;
(iii)
enhanced development costs;
(iv)
horizontal construction costs;
(v)
vertical construction costs;
(vi)
property acquisition costs;
(vii)
public infrastructure and improvements; and
(viii)
realigning public infrastructure;
(b)
public infrastructure and improvements in an impacted primary area, if any; and
(c)
make the annual payment of principal, interest, premiums, and necessary reserves for
any of the aggregate of bonds authorized under Subsection
(3)
.
(3)
An agency may issue bonds, or cause bonds to be issued, as permitted by law, to pay all
or part of the costs incurred for the purposes described in Subsection
(2)
, including the
cost to issue and repay the bonds including interest and reserves.
(4)
An agency may create one or more financing districts within the boundaries of the zone,
and pledge and utilize zone funds to secure the payment of bonds issued by the created
financing district.
(5)
In addition to the purposes described in Subsection
(2)
, an agency may use zone
revenue to cover the costs of the agency to administer the zone, not to exceed:
(a)
3% of the total annual zone revenue; or
(b)
if the agency provides zone revenue to an entity through a participation agreement,
3% of the total annual zone revenue retained by the agency after providing zone
revenue
pursuant to
the terms of the participation agreement.
(6)
At the request of a creating entity, an agency shall reimburse the creating entity the cost
of conducting the pro forma analysis required for the proposal, as described in Section
63N-3a-202
.
(7)
An agency may provide zone revenue to a person according to the terms of a
participation agreement or an agreement described in Section
17C-6-301
.
Section 18. Section
17C-6-301
is enacted to read:
3. Partnership Agreements
17C-6-301
Effective
05/06/26
. Private-public partnerships for a zone.
(1)
A person that seeks to enter into a private-public partnership with an agency shall
provide the agency with an application that:
(a)
demonstrates the applicant is qualified to operate, in whole or in part, a project
within the zone; and
(b)
provides any additional information required by the creating entity or agency.
(2)
An agency may enter into a private-public partnership:
(a)
if, after reviewing the application described in Subsection
(1)
, the agency determines
a private-public partnership will promote the objectives of the zone; and
(b)
through an agreement described in this section.
(3)
An agreement to create a private-public partnership between a person and an agency
may:
(a)
establish or recognize an ownership interest in the project for the person, in
consideration of the person's financial investment in the project;
(b)
establish an ownership interest in the project for the agency or agency's creating
entity, in consideration of the public's financial investment in the project; or
(c)
create a lease between the person and the agency.
Section 19. Section
17C-6-401
is enacted to read:
4. Budgets, Audits, and Reports
17C-6-401
Effective
05/06/26
. Regionally significant development zone budgets.
(1)
An agency shall develop a budget for the zone in accordance with:
(a)
Chapter 1, Part 6, Agency Annual Report, Budget, and Audit Requirements; and
(b)
this section.
(2)
An agency:
(a)
may incorporate a zone budget into the agency's budget; and
(b)
shall develop and present a zone budget as a separate agency budget item.
Section 20. Section
17C-6-402
is enacted to read:
17C-6-402
Effective
05/06/26
. Audits -- County auditor reports.
(1)
An agency shall comply with the same auditing requirements that are described in
Sections
17C-1-604
and
17C-1-605
in regard to the regionally significant development
zone.
(2)
The county auditor for a county in which a zone is created shall prepare an annual report
in accordance with Section
17C-1-606
, the same as if the zone were a project area.
Section 21. Section
17C-6-403
is enacted to read:
17C-6-403
Effective
05/06/26
. Reporting.
(1)
Beginning the second year after the effective date of a zone, an agency shall produce a
biennial written report in accordance with this section no later than September 1.
(2)
Notwithstanding Section
17C-1-609
, the report described in Subsection
(1)
shall:
(a)
describe the agency's progress in managing the zone and pursuing the objectives of
the zone, as described in the proposal;
(b)
describe any impediments to the continued development of the zone;
(c)
describe the degree to which the development of the zone is complete;
(d)
detail the amount of zone revenues received to date; and
(e)
detail the amount of revenues the agency has spent on behalf of the zone to date.
(3)
The agency shall provide the report described in this section to the Political
Subdivisions Interim Committee.
(4)
The report described in this section is in addition to the reporting requirements
described in Section
17C-1-603
.
Section 22. Section
17C-6-404
is enacted to read:
17C-6-404
Effective
05/06/26
. Use of financing district.
If an agency creates or utilizes a financing district to fulfill one or more objectives of the
zone, the agency and the creating entity shall ensure that the financing district complies with
the same budgeting, auditing, and reporting requirements described in this part, the same as if
the financing district were the agency.
Section 23. Section
17D-4-201
is amended to read:
17D-4-201
Effective
05/06/26
. Creation -- Annexation or withdrawal of
property.
(1)
(a)
Except as provided in Subsection
(1)(b)
, Subsection
(2)
, and in addition to the
provisions regarding creation of a special district in
Title 17B, Chapter 1, Provisions
Applicable to All Special Districts
, a public infrastructure district may not be created
unless a petition is filed with the creating entity that contains the signatures of 100%
of surface property owners within the applicable area consenting to the creation of
the public infrastructure district.
(b)
(i)
As used in this Subsection
(1)(b)
:
(A)
"Military land" means the same as that term is defined in Section
63H-1-102
.
(B)
"Project area" means the same as that term is defined in Section
63H-1-102
.
(ii)
Notwithstanding
Title 17B, Chapter 1, Part 2, Creation of a Special District
, and
any other provision of this chapter, a development authority may adopt a
resolution creating a public infrastructure district if all owners of surface property
proposed to be included within the public infrastructure district consent in writing
to the creation of the public infrastructure district.
(iii)
For purposes of Subsection
(1)(b)(ii)
, if the surface property proposed to be
included within the public infrastructure district includes military land that is
within a project area, the owner of the military land within the project area is the
lessee of the military land.
(iv)
A public infrastructure district created under Subsection
(1)(b)(ii)
may be created
as a subsidiary of the development authority that adopts the resolution creating the
public infrastructure district.
(2)
(a)
The following do not apply to the creation of a public infrastructure district:
(i)
Section
17B-1-203
;
(ii)
Section
17B-1-204
;
(iii)
Subsection
17B-1-208(2)
;
(iv)
Section
17B-1-212
; or
(v)
Section
17B-1-214
.
(b)
The protest period described in Section
17B-1-213
may be waived in whole or in
part with the consent of 100% of the surface property owners within the applicable
area approving the creation of the public infrastructure district.
(c)
If the protest period is waived under Subsection
(2)(b)
, a resolution approving the
creation of the public infrastructure district may be adopted in accordance with
Subsection
17B-1-213(5)
.
(d)
A petition meeting the requirements of Subsection
(1)
may be certified under Section
17B-1-209
.
(e)
Notwithstanding Subsection
17B-1-215(1)(b)
, the district applicant shall file the
items required by Subsection
17B-1-215(1)(a)
with the lieutenant governor within 30
days of the day on which a resolution creating a public infrastructure district is
adopted.
(3)
Notwithstanding
Title 17B, Chapter 1, Part 4, Annexation
, an area outside of the
boundaries of a public infrastructure district may be annexed into the public
infrastructure district if the following requirements are met:
(a)
(i)
adoption of resolutions of the board and the creating entity, each approving of
the annexation; or
(ii)
adoption of a resolution of the board to annex the area, provided that the
governing document or creation resolution for the public infrastructure district
authorizes the board to annex an area outside of the boundaries of the public
infrastructure district without future consent of the creating entity; and
(b)
(a)
the board adopts a resolution approving the annexation;
(b)
the governing document or resolution creating the public infrastructure district
authorizes the public infrastructure district to annex the proposed annexation area;
(c)
a petition is filed with the public infrastructure district that contains the signatures of
100% of surface property owners within the
area proposed to be annexed
proposed
annexation area
, demonstrating the surface property owners' consent to the
annexation into the public infrastructure district
.
; and
(d)
if the creating entity is a county or municipality and the proposed annexation area is
outside the boundaries of the creating entity:
(i)
for an area that is unincorporated, the legislative body of the county where the
area is located adopts a resolution approving the annexation; or
(ii)
for an area that is within the boundaries of a municipality, the legislative body of
the municipality where the area is located adopts a resolution approving the
annexation.
(4)
(a)
Notwithstanding
Title 17B, Chapter 1, Part 5, Withdrawal
, property may be
withdrawn from a public infrastructure district if the following requirements are met:
(i)
(A)
adoption of
resolutions
a resolution
of the board
and the creating entity,
each
approving of the withdrawal;
or
and
(B)
adoption of a resolution of the board to withdraw the property
,
provided
that
the governing document or creation resolution for the public
infrastructure district authorizes the board to withdraw property from the
public infrastructure district without further consent from the creating entity;
and
(ii)
a petition is filed with the public infrastructure district that contains the signatures
of 100% of surface property owners within the area proposed to be withdrawn,
demonstrating that the surface property owners consent to the withdrawal from the
public infrastructure district.
(b)
If any bonds that the public infrastructure district issues are allocable to the area to
be withdrawn remain unpaid at the time of the proposed withdrawal, the property
remains subject to any taxes, fees, or assessments that the public infrastructure
district imposes until the bonds or any associated refunding bonds are paid.
(c)
Upon meeting the requirements of Subsection
(3)
or
(4)(a)
, the board shall:
(i)
within 30 days of the day on which a resolution is adopted or a petition is filed
under Subsection
(3)
or (4)(a), file with the lieutenant governor:
(A)
a copy of a notice of impending boundary action, as defined in Section
67-1a-6.5
, that meets the requirements of Subsection
67-1a-6.5(3)
; and
(B)
a copy of an approved final local entity plat, as defined in Section
67-1a-6.5
;
and
(ii)
comply with the requirements of Section
17B-1-512
, except:
(A)
Subsections
17B-1-512(1)(b)
and (c) do not apply; and
(B)
the time periods described in this section govern.
(5)
A creating entity may impose limitations on the powers of a public infrastructure district
through the governing document.
(6)
(a)
A public infrastructure district is separate and distinct from the creating entity.
(b)
(i)
Except as provided in Subsection
(6)(b)(ii)
, any financial burden
, including the
cost of accounting, audit reporting, and budget preparation,
of a public
infrastructure district:
(A)
is borne solely by the public infrastructure district; and
(B)
is not borne by the creating entity, by the state, or by any municipality,
county, or other political subdivision.
(ii)
Notwithstanding Subsection
(6)(b)(i)
and Section
17B-1-216
, the governing
document may require:
(A)
the district applicant to bear the initial costs of the public infrastructure
district; and
(B)
the public infrastructure district to reimburse the district applicant for the
initial costs the creating entity bears.
(iii)
Nothing in this Subsection
(6)
precludes a public infrastructure district from
qualifying directly for an impact fee offset, credit, or refund under Title 11,
Chapter 36a, Impact Fees Act, regarding any qualifying system improvements
financed by the public infrastructure district.
(c)
Any
legal responsibility,
liability, judgment, or claim against a public infrastructure
district:
(i)
is the sole responsibility of the public infrastructure district; and
(ii)
does not constitute a liability, judgment, or claim against the creating entity, the
state, or any municipality, county, or other political subdivision.
(d)
(i)
(A)
The public infrastructure district solely bears the responsibility of any
collection, enforcement, or foreclosure proceeding with regard to any fee or
assessment the public infrastructure district imposes.
(B)
The creating entity does not bear the responsibility described in Subsection
(6)(d)(i)(A)
.
(ii)
A public infrastructure district, and not the creating entity, shall undertake the
enforcement responsibility described in, as applicable, Subsection
(6)(d)(i)
in
accordance with
Title 11, Chapter 42, Assessment Area Act
.
(7)
A creating entity may establish criteria in determining whether to approve or disapprove
of the creation of a public infrastructure district, including:
(a)
historical performance of the district applicant;
(b)
compliance with the creating entity's master plan;
(c)
credit worthiness of the district applicant;
(d)
plan of finance of the public infrastructure district; and
(e)
proposed development within the public infrastructure district.
(8)
(a)
The creation of a public infrastructure district is subject to the sole discretion of
the creating entity responsible for approving or rejecting the creation of the public
infrastructure district.
(b)
The proposed creating entity bears no liability for rejecting the proposed creation of
a public infrastructure district.
Section 24. Section
17D-4-202
is amended to read:
17D-4-202
Effective
05/06/26
. Public infrastructure district board -- Governing
document.
(1)
(a)
The legislative body or board of the creating entity shall
appoint the initial
members of the board of a public infrastructure district, in accordance with the
governing document.
approve the governing document for the public infrastructure
district through resolution.
(b)
A governing document
approved by the legislative body or board of the creating
entity may provide for
:
(i)
shall include the names of the initial members of the board;
(ii)
shall provide that, upon the lieutenant governor issuing a certificate of
incorporation for the public infrastructure district, members of the board may be
appointed in accordance with the terms of the governing document and this
section; and
(iii)
may provide for
the board of a public infrastructure district to, upon a vacancy
on the board
and subject to Subsection
(4)
, appoint an individual to the board
so
long as
the individual meets the requirements to serve on a public infrastructure
district board described in this section.
(c)
For public infrastructure districts not described in Subsection
(1)(b)
, and except as
provided in Subsection (1)(d):
(i)
if there is a vacancy on the board of a public infrastructure district, or a board
member provides notice to the legislative body or board of the creating entity of
the board member's intention to resign from the board, the legislative body or
board of the creating entity shall appoint a replacement board member within 45
days from the day on which the vacancy first occurs or the board member
provides notice of the board member's intent to resign; and
(ii)
if a legislative body or board of the creating entity fails to fill a vacancy on the
board within the time period described in Subsection (1)(c)(i), the board of the
public infrastructure district may appoint an individual who is eligible to serve on
the board according to the requirements of this section to fill the board vacancy.
(d)
(c)
If a public infrastructure district board position has transitioned from
appointment to election, as described in Subsection
(4)
, and an elected board position
becomes vacant, the
provisions of Section
20A-1-512
apply to fill the vacancy
vacant board position shall be filled through the remainder of the term in the method
provided in the governing document
.
(2)
(a)
Unless otherwise limited in the governing document and except as provided in
Subsection
(2)(b)
, the initial term of each member of the board is four years.
(b)
Notwithstanding Subsection
(2)(a)
, approximately half of the members of the initial
board shall serve a six-year term so that, after the expiration of the initial term, the
term of approximately half the board members expires every two years.
(c)
A board may elect that a majority of the board serve an initial term of six years.
(d)
After the initial term, the term of each member of the board is four years.
(e)
A member of the board who is appointed shall continue to serve on the board of the
public infrastructure district until a replacement board member is appointed.
(3)
(a)
Notwithstanding Subsection
17B-1-302(1)(b)
, a board member is not required to
be a resident within the boundaries of the public infrastructure district if:
(i)
all of the surface property owners consent to the waiver of the residency
requirement
in the petition requesting the creation of the public infrastructure
district
;
(ii)
there are no residents within the boundaries of the public infrastructure district;
(iii)
no qualified candidate timely files to be considered for appointment to the board;
or
(iv)
no qualified individual files a declaration of candidacy for a board position in
accordance with Subsection
17B-1-306(5)
.
(b)
Except under the circumstances described in Subsection
(3)(a)(iii)
or
(iv)
, the
residency requirement in Subsection
17B-1-302(1)(b)
is applicable to any board
member elected for a division or board position that has transitioned from an
appointed to an elected board member in accordance with this section.
(c)
An individual who is not a resident within the boundaries of the public infrastructure
district may not serve as a board member unless the individual is:
(i)
an owner of land or an agent or officer of the owner of land within the boundaries
of the public infrastructure district; and
(ii)
a registered voter at the individual's primary residence.
(d)
If
the creating entity determines that
a public infrastructure district is not
anticipated to have permanent residents within the public infrastructure district's
boundaries, or is anticipated to be primarily composed of non-residential property or
non-primary residential property, a governing document may allow the
creating
entity to continue
board
to appoint a property owner, or the agent of a property
owner, to the public infrastructure district board.
(e)
A governing document may allow for a property owner to recommend a property
owner or a property owner's agent for appointment to the public infrastructure district
board in numbers proportional to the property owner's ownership of land, or value of
land, within a public infrastructure district.
(4)
(a)
A governing document may provide for a transition from
legislative body
appointment under Subsection
(1)
to a method of election by registered voters based
upon milestones or events that the governing document identifies, including a
milestone for each division or individual board position providing that when the
milestone is reached:
(i)
for a division, the registered voters of the division elect a member of the board in
place of an appointed member at the next municipal general election for the board
position; or
(ii)
for an at large board position established in the governing document, the
registered voters of the public infrastructure district elect a member of the board in
place of an appointed member at the next municipal general election for the board
position.
(b)
Regardless of whether a board member is elected under Subsection
(4)(a)
, the
position of each remaining board member shall continue to be appointed under
Subsection
(1)
until the member's respective division or board position surpasses the
density milestone described in the governing document.
(5)
(a)
Subject to Subsection
(5)(c)
, the
For a public infrastructure district that has
transitioned to a method of election as described in Subsection
(4)
, the
board may, in
the board's discretion but no more frequently than every four years, reestablish the
boundaries of each division so that each division that has reached a milestone
specified in the governing document, as described in Subsection
(4)(a)
, has, as nearly
as possible, the same number of eligible voters.
(b)
In reestablishing division boundaries under Subsection
(5)(a)
, the board shall
consider existing or potential developments within the divisions that, when
completed, would increase or decrease the number of eligible voters within the
division.
(c)
The governing document may prohibit the board from reestablishing, without the
consent of the creating entity, the division boundaries as described in Subsection
(5)(a)
.
(6)
A public infrastructure district may not compensate a board member for the member's
service on the board under Section
17B-1-307
unless the board member is a resident
within the boundaries of the public infrastructure district.
(7)
A governing document shall:
(a)
include a boundary description and a map of the public infrastructure district;
(b)
state the number of board members;
(c)
describe any divisions of the public infrastructure district;
(d)
establish any applicable property tax levy rate limit for the public infrastructure
district;
(e)
establish any applicable limitation on the principal amount of indebtedness for the
public infrastructure district;
(f)
describe the public infrastructure and improvements, facilities, or properties that the
public infrastructure district is created to construct, repair, or otherwise complete, as
described in Section
17D-4-203
;
and
(f)
(g)
include other information that the public infrastructure district or the creating
entity determines to be necessary or advisable.
(8)
(a)
Except as provided in Subsection
(8)(b)
, the board and the governing body of the
creating entity may amend a governing document by each adopting a resolution that
approves the amended governing document.
(b)
Notwithstanding Subsection
(8)(a)
, any amendment to increase a property tax levy
rate limitation requires the consent of 100% of surface property owners within the
boundaries of the public infrastructure district.
(9)
A board member is not in violation of Section
67-16-9
if the board member:
(a)
discloses a business relationship in accordance with Sections
67-16-7
and
67-16-8
and files the disclosure with the creating entity:
(i)
before any appointment or election; and
(ii)
upon any significant change in the business relationship; and
(b)
conducts the affairs of the public infrastructure district in accordance with this title
and any parameters described in the governing document.
(10)
Notwithstanding any other provision of this section, the governing document governs
the number, appointment,
eligibility for appointment,
and terms of board members of a
public infrastructure district created by the development authority.
Section 25. Section
17D-4-202.1
is amended to read:
17D-4-202.1
Effective
05/06/26
. Convention center public infrastructure --
District board -- Petition and process requirements -- Governing document.
(1)
As used is this section:
(a)
"City" means a municipality of the first class located in a county of the first class in
which a convention center is located.
(b)
"County" means a county in which a convention center is located.
(c)
"Lessee" means a lessee of property within the proposed convention center public
infrastructure district that leases the property from the city or county for a term of at
least 10 years.
(d)
(i)
"Petitioner" means:
(A)
a surface property owner, a property owner, or lessee of property within a
proposed convention center public infrastructure district's boundaries that
initiates the formation of a convention center public infrastructure district; or
(B)
a surface property owner under this chapter, and Title 17B, Chapter 1,
Provisions Applicable to All Special Districts, in relation to a convention
center public infrastructure district.
(ii)
"Petitioner" does not include a city, county, or other public entity.
(2)
A convention center public infrastructure district shall be created in a city upon the
submission of a petition in accordance with this part and shall have all the powers of a
public infrastructure district under this chapter.
(3)
A convention center public infrastructure district may only be created within a city in
which a convention center is located.
(4)
The petition described in Subsection
(2)
shall:
(a)
include the governing document; and
(b)
for a petition to a city which has previously authorized revitalization taxes described
in Section
63N-3-1403
, include as part of the governing document approval and
authorization of an interlocal agreement pledging and securing the revitalization
taxes for debt of the proposed convention center public infrastructure district.
(5)
(a)
The process for creating a convention center public infrastructure district or a
convention center public infrastructure district in a capital city shall be initiated by
the submission of a petition and a governing document to the city, except that:
(i)
the city recorder shall certify the petition within 14 days from the day the
petitioner submits the petition to the city recorder;
(ii)
if the city recorder fails to certify the petition within the time described in
Subsection
(5)(a)(i)
, the petition shall be considered certified; and
(iii)
within 30 days from the day that the petitioner submits the petition to the city
recorder, or if the city and the petitioner have come to an agreement as described
in Subsection
(5)(b)
, the city shall adopt a resolution to approve:
(A)
the governing document the petitioner submitted with the petition; and
(B)
the creation of a convention center public infrastructure district or a
convention center public infrastructure district in a capital city.
(b)
Notwithstanding Subsection
(5)(a)
, the city and petitioner may negotiate the finalized
terms of the petition, including the terms of an interlocal agreement, within a time
period agreed upon by the city and petitioner.
(6)
(a)
The boundaries of a convention center public infrastructure district shall be
limited to an area within a one-half-mile radius of a convention center.
(b)
If a parcel is intersected by the radius described in Subsection
(6)(a)
, the entire parcel
may be included in the district.
(7)
A convention center public infrastructure district shall be subject to the following
provisions regarding taxation and financing:
(a)
a convention center public infrastructure district may levy an administrative tax of up
to 0.0005 per dollar of taxable value on taxable property within the district; and
(b)
the administrative tax shall be used exclusively for administrative expenses and may
not be used for capital costs or debt payment.
(8)
A convention center public infrastructure district shall be governed by the governing
document submitted and approved as described in this section.
(9)
The convention center public infrastructure board shall consist of five members
to be
appointed by the board in accordance with the governing document
as follows:
(a)
three members shall be representatives of the petitioner and selected by the petitioner;
(b)
one member may be a representative of the city and selected by the mayor of the
city; and
(c)
one member may be a representative of the county and selected by the mayor of the
county.
(10)
(a)
Except as provided in Subsection
(10)(b)
, upon a vacancy or expiration of a term
of a board member for a convention center public infrastructure district, the board
shall appoint the replacement in the same manner as described in Subsection
(9)
for
the unexpired period of the board member's term.
(b)
If a city or county mayor chooses not to select a member of the board as described in
Subsection
(9)(b)
or
(c)
, elects in writing to permanently abdicate the board seat, or
chooses to vacate a member at any time, the petitioner shall select a member for the
replacement who shall not be a representative of the city or county in which the
convention center is located.
(11)
(a)
A convention center public infrastructure district shall enter into an interlocal
agreement with the relevant county that provides that, for any revenue that is
transferred to the convention center public infrastructure district from a convention
center reinvestment zone created
pursuant to
in accordance with
Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act, the mayor of the county shall
have approval authority for the expenditure of any revenue related to a convention
center revitalization project, as that term is defined in Section
63N-3-602
.
(b)
The approval authority described in Subsection
(11)(a)
does not include approval
authority over:
(i)
any bonds or debt or related terms issued by the convention center public
infrastructure district; or
(ii)
revenue subject to a participation agreement entered into
pursuant to
Title 63N,
Chapter 3, Part 14, Capital City Revitalization Zone.
Section 26. Section
17D-4-203
is amended to read:
17D-4-203
Effective
05/06/26
. Public infrastructure district powers.
(1)
A public infrastructure district has all of the authority conferred upon a special district
under Section
17B-1-103
.
(2)
A public infrastructure district may:
(a)
issue negotiable bonds to pay:
(i)
all or part of the costs of acquiring, acquiring an interest in, improving, or
extending any of the improvements, facilities, or property allowed under Section
11-14-103
;
(ii)
capital costs of improvements in an energy assessment area, as defined in Section
11-42a-102
, and other related costs, against the funds that the public infrastructure
district will receive because of an assessment in an energy assessment area;
(iii)
public improvements related to the provision of housing;
(iv)
capital costs related to public transportation;
(v)
for a public infrastructure district that is within or adjacent to a housing and
transit reinvestment zone described in Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act, any and all costs to finance any public or
privately owned improvements, which, in the discretion of the board of the public
infrastructure district, promote the objectives described in Section
63N-3-603.1
;
(vi)
the cost of acquiring or financing public infrastructure and improvements;
(vii)
for a public infrastructure district that is a subsidiary of or created by the Utah
Inland Port Authority, the costs associated with a remediation project, as defined
in Section
11-58-102
;
(viii)
for a convention center public infrastructure district that is within or adjacent to
a convention center reinvestment zone as defined in Section
63N-3-602
, any or all
of the costs to finance any public or privately owned improvements, including
convention center-related improvements and arena improvements, which, in the
discretion of the board of a convention center public infrastructure district,
promote the objectives of the convention center reinvestment zone, as described in
Section
63N-3-603.1
;
(ix)
for a convention center public infrastructure district, the costs of financing a
convention revitalization project, as the term is defined in Section
63N-3-602
;
(x)
for a convention center public infrastructure district in a capital city that is within
or adjacent to a convention center reinvestment zone in a capital city, as defined in
Section
63N-3-602
, any or all of the costs to financing any publicly owned
improvements, including the cost of financing a convention center revitalization
project in a capital city, as defined in Section
63N-3-602
, convention
center-related improvements, and publicly or privately owned improvements that
directly serve the convention center, which, in the discretion of the board of the
convention center public infrastructure district in a capital city, promote the
objectives of the convention center reinvestment zone in a capital city, as
described in Section
63N-3-603.1
; and
(xi)
for a convention center public infrastructure district in a capital city that is within
a capital city revitalization zone project area, as defined in Section
63N-3-1401
,
any allowed uses of funds or revenue provided for under Section
59-12-402.5
,
including eligible expenses consistent with the terms of the participation
agreement, except that a convention center public infrastructure district in a
capital city may not issue negotiable bonds serviced by the revitalization tax under
Section
59-12-402.5
for privately owned improvements for more than the
maximum dollar amount described in the participation agreement.
(b)
enter into an interlocal agreement in accordance with
Title 11, Chapter 13, Interlocal
Cooperation Act
, provided that the interlocal agreement may not expand the powers
of the public infrastructure district, within the limitations of
Title 11, Chapter 13,
Interlocal Cooperation Act
, without the consent of the creating entity;
(c)
notwithstanding any other provision in code, acquire completed or partially
completed improvements, including related design and consulting services and
related work product, for fair market value as reasonably determined by
:
(i)
the board;
(ii)
the creating entity, if required in the governing document; or
(iii)
a surveyor or engineer that a public infrastructure district employs or engages
to perform the necessary engineering services for and to supervise the
construction or installation of the improvements;
(d)
contract with the creating entity for the creating entity to provide administrative
services on behalf of the public infrastructure district, when agreed to by both parties,
in order to achieve cost savings and economic efficiencies, at the discretion of the
creating entity;
(e)
for a public infrastructure district created by a development authority, or for a public
infrastructure district created by a municipality and located in an urban renewal
project area that includes some or all of an inactive industrial site:
(i)
(A)
operate and maintain public infrastructure and improvements the district
acquires or finances; and
(B)
use fees, assessments, or taxes to pay for the operation and maintenance of
those public infrastructure and improvements;
and
(ii)
issue bonds under
Title 11, Chapter 42, Assessment Area Act
; and
(iii)
notwithstanding Section
17D-4-303
and subject to Subsection
(3)
, for an
advanced manufacturing project or a critical mineral extraction project located on
state-owned or development authority-owned land within an authority project
area, levy a property tax at a rate not to exceed a rate that generates more revenue
than required to pay the annual debt service of the bond plus administrative costs
and issue unlimited general obligation bonds as may be authorized by an election
as described in this chapter and approved by the authority board.
(f)
for a public infrastructure district that is a subsidiary of or created by the Utah Inland
Port Authority, pay for costs associated with a remediation project, as defined in
Section
11-58-102
, of the Utah Inland Port Authority.
(3)
For general obligation bonds described in Subsection
(2)(e)(iii)(A)
, the principal
amount of the bonds cannot exceed 75% of the market value of the project for which the
bonds are issued after the project is constructed and operating, as estimated and
approved by a majority of the board of the public infrastructure district.
(4)
A public infrastructure district created by the Utah Fairpark Area Investment and
Restoration District, created in Section
11-70-201
, may:
(a)
pay for the cost of the development and construction of a qualified stadium, as
defined in Section
11-70-101
; and
(b)
pay for the cost of public infrastructure and improvements.
Section 27. Section
17D-4-204
is amended to read:
17D-4-204
Effective
05/06/26
. Relation to other local entities.
(1)
Notwithstanding the creation of a public infrastructure district, the creating entity and
any other public entity, as applicable, retains all of the entity's authority over all zoning,
planning, design specifications and approvals, and permitting within the public
infrastructure district.
(2)
The inclusion of property within the boundaries of a public infrastructure district does
not preclude the inclusion of the property within any other special district.
(3)
(a)
All infrastructure that is connected to another public entity's system:
(i)
belongs to that public entity, regardless of inclusion within the boundaries of a
public infrastructure district, unless the public infrastructure district and the public
entity otherwise agree; and
(ii)
shall comply with the design, inspection requirements, and other standards of the
public entity.
(b)
A public infrastructure district shall convey or transfer the infrastructure described in
Subsection
(3)(a)
free of liens or financial encumbrances to the public entity at no
cost to the public entity.
(c)
The conveyance, transfer, or dedication of infrastructure to a creating entity or a
public entity in accordance with this section is not a financial benefit of the creating
entity or public entity.
(4)
(a)
No public entity or private person shall receive funds from any portion of a public
infrastructure district's property tax revenue without a resolution of the public
infrastructure district's board authorizing the public entity or private person to receive
the funds.
(b)
Subsection
(4)(a)
does not apply to the county's expenses related to collecting
property tax in accordance with Title 59, Chapter 2,
Part 12,
Property Tax Act.
(c)
Subsection
(4)(a)
applies notwithstanding any provision in:
(i)
Title 17C, Limited Purpose Local Government Entities - Community
Reinvestment Agency Act;
(ii)
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
(iii)
a statute governing a development authority created under Utah Constitution,
Article XI; or
(iv)
a provision of code related to the collection, distribution, or sharing of tax
increment revenue, incremental property tax increases, or actions related to the
collection, distribution, or sharing of tax increment revenue or incremental
property tax increases.
Section 28. Section
17D-4-303
is amended to read:
17D-4-303
Effective
05/06/26
. Limits on public infrastructure district property
tax levy -- Notice requirements.
(1)
The
Except as provided in Subsections
17D-4-203(2)(e)
and
63H-1-202(10)
, the
property tax levy of a public infrastructure district, for all purposes, including payment
of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value of
taxable property in the district.
(2)
The limitation described in Subsection
(1)
does not apply to the levy by the public
infrastructure district to pay principal of and interest on a general obligation bond that
the public infrastructure district issues.
(3)
(a)
Within 30 days after the day on which the lieutenant governor issues a certificate
of incorporation for the public infrastructure district under Section
67-1a-6.5
, the
board shall record a notice with the recorder of the county in which property within
the public infrastructure district is located.
(b)
The notice described in Subsection
(3)(a)
shall:
(i)
contain a description of the boundaries of the public infrastructure district;
(ii)
state that a copy of the governing document is on file at the office of the creating
entity;
(iii)
state that the public infrastructure district may finance and repay infrastructure
and other improvements through the levy of a property tax; and
(iv)
state the maximum rate that the public infrastructure district may levy.
(c)
The effective date of the public infrastructure district for purposes of assessing
property tax is the day on which the notice is recorded in the office of the recorder of
each county in which the public infrastructure district is located, as described in
Section
59-2-305.5
.
(4)
If the board fails to record a notice as described in Subsection
(3)
:
(a)
the public infrastructure district is still created as of the day the lieutenant governor
issues a certificate of incorporation for the public infrastructure district;
(b)
any bonds issued by the public infrastructure district are still valid; and
(c)
the public infrastructure district may not levy a tax or levy or collect a fee until the
board records the notice described in Subsection
(3)
.
Section 29. Section
17D-4-401
is enacted to read:
4. Dissolution
17D-4-401
Effective
05/06/26
. District dissolution.
(1)
The board of trustees of a public infrastructure district, other than a public infrastructure
district created by a development authority that provides ongoing services, shall adopt a
resolution to dissolve the public infrastructure once:
(a)
the public infrastructure district has paid all the public infrastructure district's debts;
(b)
the public infrastructure district's contractual obligations are satisfied or defeased; and
(c)
except for public infrastructure and improvements, facilities, or properties that are
privately owned, the public infrastructure and improvements, facilities, or properties
described in the governing document, as required in Section
17D-4-202
, have been:
(i)
constructed, repaired, or otherwise completed;
(ii)
accepted by the public entity as meeting the public entity's applicable
development, design, and construction standards; and
(iii)
transferred to the entity responsible for the maintenance and operation of the
public infrastructure and improvement, facility, or property.
(2)
The board shall:
(a)
adopt a resolution approving the dissolution of the public infrastructure district
within 30 days of the day on which the conditions of Subsection
(1)
are met; and
(b)
file with the lieutenant governor a notice of an impending boundary action, as
defined in Section
67-1a-6.5
, that meets the requirements of Subsection
67-1a-6.5(3)
,
within 30 days of the day on which the board adopts a resolution described in
Subsection
(2)(a)
.
(3)
The board may use any assets of the public infrastructure district that remain after the
requirements of Subsection
(1)
are met to pay costs associated with the dissolution
process.
(4)
Upon the lieutenant governor's issuance of a certificate of dissolution under Section
67-1a-6.5
:
(a)
the public infrastructure district is dissolved; and
(b)
the board shall:
(i)
if the public infrastructure district was located within the boundary of a single
county, submit to the recorder of that county the original and a certified copy of
the resolution described in Subsection
(2)(a)
; or
(ii)
if the public infrastructure district was located within the boundaries of more than
a single county:
(A)
submit to the recorder of one of those counties the original certificate of
dissolution and a certified copy of the resolution described in Subsection
(2)(a)
;
and
(B)
submit to the recorder of each other county a certified copy of the certificate
of dissolution and a certified copy of the resolution described in Subsection
(2)(a)
.
(5)
If any assets of the public infrastructure district remain after the conditions of
Subsection
(1)
are met and the costs described in Subsection
(3)
are paid, the board shall
distribute the assets in the following order of priority:
(a)
if there is a readily identifiable connection between the remaining assets and a
financial burden borne by the real property owners in the dissolved public
infrastructure district, proportionately to those real property owners; and
(b)
the entity described in Subsection
(1)(c)(ii)
.
Section 30. Section
51-9-1001
is enacted to read:
10. State Reinvestment Restricted Account
51-9-1001
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Account" means the State Reinvestment Restricted Account created in Section
51-9-1002
.
(2)
"Generational water infrastructure" means physical facilities or other physical assets
designed to meet generational demands for water.
Section 31. Section
51-9-1002
is enacted to read:
51-9-1002
Effective
05/06/26
. State Reinvestment Restricted Account created.
(1)
There is created within the General Fund a restricted account known as the "State
Reinvestment Restricted Account."
(2)
The account shall consist of:
(a)
revenue deposited into the account in accordance with:
(i)
Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development
Zones; and
(ii)
Title 63N, Chapter 3a, Part 4, Regionally Significant Zones with Energy
Implications;
(b)
revenue deposited into the account by the Utah Inland Port Authority in accordance
with Sections
11-58-602
and
11-58-607
; and
(c)
interest and earnings on money in the account.
(3)
The state treasurer shall invest the money in the fund according to Title 51, Chapter 7,
State Money Management Act, except that interest or other earnings derived from those
investments shall be deposited into the account.
Section 32. Section
51-9-1003
is enacted to read:
51-9-1003
Effective
05/06/26
. Authorized use of the State Reinvestment
Restricted Account.
(1)
Money in the account is to be used, subject to appropriation, for:
(a)
income tax relief;
(b)
development of generational water infrastructure;
(c)
facilitating preservation of the Great Salt Lake watershed, as described in Title 73,
Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;
(d)
regionally significant transit development and regionally significant transit
infrastructure; and
(e)
development of energy resources, as described in Title 79, Chapter 6, Utah Energy
Act.
(2)
Money in the account that is derived from a local source may not be used in an area
outside the area in which the money was generated unless the money is used for a
purpose described in Subsection
(1)
.
Section 33. Section
57-1-49
is enacted to read:
57-1-49
Effective
05/06/26
. Disclosure of annual assessment to a public
infrastructure district.
(1)
As used in this section, "public infrastructure district" means an entity created as
described in Title 17D, Chapter 4, Public Infrastructure District Act.
(2)
In a conveyance of residential real property within the boundaries of a public
infrastructure district, a seller or the seller's representative shall ensure that the expected
annual cost of the public infrastructure district's final tax rate, as shown on the last
equalized assessment rolls, is included in a disclosure document at or before closing.
Section 34. Section
59-1-306
is amended to read:
59-1-306
Effective
05/06/26
. Definition -- State Tax Commission
Administrative Charge Account -- Amount of administrative charge -- Deposit of
revenue into the restricted account -- Interest deposited into General Fund --
Expenditure of money deposited into the restricted account.
(1)
As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the
commission administers under:
(a)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(b)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(c)
Section
19-6-714
;
(d)
Section
19-6-805
;
(e)
Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
(f)
Section
59-27-105
;
(g)
Chapter 31, Cannabinoid Licensing and Tax Act;
(h)
Chapter 32, Local Impact Mitigation Tax Act;
(i)
Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax;
(j)
Chapter 35,
County Energy Excise Tax
A
c
t
;
(j)
(k)
Section
63H-1-205
;
(k)
(l)
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
or
(l)
(m)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
Charges; or
(m)
(n)
Title 79, Chapter 6,
Part 11
Part 14
, Energy Project Assessment.
(2)
There is created a restricted account within the General Fund known as the "State Tax
Commission Administrative Charge Account."
(3)
Subject to the other provisions of this section, the restricted account shall consist of
administrative charges the commission retains and deposits in accordance with this
section.
(4)
For purposes of this section, the administrative charge is a percentage of revenue the
commission collects from each qualifying tax, fee, or charge of not to exceed the lesser
of:
(a)
1.5%; or
(b)
an equal percentage of revenue the commission collects from each qualifying tax,
fee, or charge sufficient to cover the cost to the commission of administering the
qualifying taxes, fees, or charges.
(5)
The commission shall deposit an administrative charge into the restricted account.
(6)
Interest earned on the restricted account shall be deposited into the General Fund.
(7)
The commission shall expend money appropriated by the Legislature to the commission
from the restricted account to administer qualifying taxes, fees, or charges or to offset
general operational expenses.
Section 35. Section
59-2-924
is amended to read:
59-2-924
Effective
05/06/26
. Definitions -- Report of valuation of property to
county auditor and commission -- Transmittal by auditor to governing bodies --
Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget
-- Notice provided by the commission.
(1)
As used in this section:
(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, a property's taxable value as shown upon
the assessment roll last equalized during the base year, as that term is defined in
Section
10-21-101
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, a property's taxable value as shown upon the
assessment roll last equalized during the base year, as that term is defined in
Section
63N-3-1601
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, a property's taxable value as shown upon
the assessment roll last equalized during the property tax base year, as that term is
defined in Section
63N-3-1701
;
or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
value of the property within an electrical energy development zone, as shown on
the assessment roll last equalized before the creation of the electrical development
zone, as that term is defined in Section
79-6-1104
.
; or
(xii)
for a regionally significant development zone created under Section
63N-3a-203
,
the taxable value of the property within a regionally significant development zone
boundary, as shown on the assessment roll last equalized during the base year, as
that term is defined in Section
63N-3a-101
.
(e)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
"Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"Hotel property new growth" means an amount equal to the incremental value that is
no longer provided to a host local government as incremental property tax revenue.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
, that is paid to the Point of the Mountain State
Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a housing and transit reinvestment zone or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
for a host local government, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
hotel property on which incremental property tax revenue is collected; and
(B)
the number that represents the percentage of the incremental property tax
revenue from that hotel property that is paid to the host local government;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with Title 63N, Chapter
3, Part 16, First Home Investment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created
pursuant to
in accordance with
Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
;
or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
; or
(xii)
for a regionally significant development zone created under Section
63N-3a-203
,
the amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the regionally significant development zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
creating entity's agency, as established by the committee in Section
63N-3a-204
.
(p)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(q)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(vi)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
;
or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
; or
(ix)
for a regionally significant development zone created under Title 63N, Chapter
3a, Part 2, Creation of Regionally Significant Development Zones, the qualified
development zone, as defined in Section
63N-3a-204
.
(r)
"Project area new growth" means:
(i)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of
the Mountain State Land Authority as property tax augmentation, as defined in
Section
11-59-207
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to the incremental value that is no
longer provided to a housing and transit reinvestment zone or convention center
reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount equal to the incremental value
that is no longer provided to a home ownership promotion zone as tax increment;
(viii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, an amount equal to the incremental value that is
no longer provided to a first home investment zone as tax increment;
or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, an amount equal to the incremental value
that is no longer provided to the creating entity of a major sporting event venue
zone as property tax increment
.
; or
(x)
for a regionally significant development zone created under Title 63N, Chapter
3a, Part 2, Creation of Regionally Significant Development Zones, an amount
equal to the incremental value that is no longer provided to the creating entity's
agency for the regionally significant development zone.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(iii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(iv)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
;
or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
; or
(vi)
for a regionally significant development zone created under Title 63N, Chapter
3a, Part 2, Creation of Regionally Significant Development Zones, the same as the
term "property tax increment" is defined in Section
63N-3a-101
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
;
(b)
an estimate of the revenue from personal property;
(c)
the certified tax rate; and
(d)
all forms necessary to submit a tax levy request.
(4)
(a)
Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity
budgeted for the prior year by the amount calculated under Subsection
(4)(b)
.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years
immediately
preceding
the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately
preceding
the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately
preceding
the
current calendar year by eligible new growth;
and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class, the levy imposed for municipal-type
services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services
identified in Section
17-78-501
and Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
current year incremental value, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
Section 36. Section
59-35-101
is enacted to read:
35. County Energy Excise Tax Act
59-35-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Delivered value" means the fair market value of energy delivered for use and includes:
(a)
the value of the energy itself; and
(b)
any transportation, freight, customer demand charges, services charges, or other
costs typically incurred in providing energy in usable form.
(2)
"Energy" means gas and electricity.
(3)
"Energy supplier" means a person supplying energy.
(4)
"High-impact consumer" means:
(a)
a large load customer; or
(b)
a qualifying data ce
nter.
(5)
"Large load customer" means the same as that term is defined in Section
54-26-101
.
(6)
"Qualifying data center" means the same as that term is defined in Section
59-12-102
.
(7)
"Regional economic development authority" means:
(a)
the Military Installation Development Authority created in Section
63H-1-201
;
(b)
the Point of the Mountain State Land Authority created in Section
11-59-201
; and
(c)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
.
Section 37. Section
59-35-201
is enacted to read:
59-35-201
Effective
05/06/26
. County energy excise tax -- Rate -- Effective date
-- Notice requirements.
(1)
A county may levy an excise tax for the delivered value of energy upon a high-impact
consumer located:
(a)
within the county; and
(b)
on unincorporated land.
(2)
(a)
Subject to Section
59-35-202
, a county may impose the tax levied under
Subsection
(1)
at a maximum rate of 6% of the delivered value of the energy to the
high-impact consumer.
(b)
A high-impact consumer that qualifies as both a large load customer and a qualifying
data center is only subject to one excise tax described in this section.
(3)
(a)
An energy supplier that delivers energy to a high-impact consumer is responsible
for collecting and remitting a tax described in this section to the commission on a
quarterly basis in the same manner that the energy supplier collects and remits sales
and use tax.
(b)
For purposes of determining the point of sale for the delivered value of energy, the
energy supplier shall use the location of the high-impact consumer's meter.
(c)
If an energy supplier passes along the cost of a tax imposed under this chapter to the
high-impact consumer, the energy supplier shall indicate to the high-impact
consumer that the tax is passed through by the energy supplier as a separately
itemized charge.
(4)
A county that imposes or repeals the tax under this chapter, or modifies the rate of a tax
imposed under this chapter, shall ensure county's action takes effect:
(a)
on the first day of a calendar quarter; and
(b)
after a 90-day period beginning on the date the county sends notice to the tax
commission as described in Subsection
(5)
.
(5)
A notice described in Subsection
(4)(b)
shall include:
(a)
that the county is imposing or repealing a tax under this chapter, or modifying the
rate of a tax imposed under this chapter;
(b)
the tax rate, if applicable; and
(c)
the effective date of the tax.
(6)
A county excise tax imposed under this chapter is in addition to any sales and use tax
imposed by the county under Title 59, Chapter 12, Sales and Use Tax Act.
Section 38. Section
59-35-202
is enacted to read:
59-35-202
Effective
05/06/26
. High-impact consumers in certain project areas.
If a high-impact consumer is subject to a municipal energy sales and use tax, as
described in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, that is
levied by a regional land use economic development authority, the county may levy a tax
described in Section
59-35-201
on the high-impact consumer only:
(1)
to the extent that the regional economic development authority does not levy the
maximum rate described in Section
10-1-304
; and
(2)
at a rate that ensures the combined rate of the tax described in this section and the
municipal energy sales and use tax levied on the high-impact consumer does not exceed
6%.
Section 39. Section
59-35-301
is enacted to read:
59-35-301
Effective
05/06/26
. Administration, collection, and enforcement --
Rulemaking.
(1)
The commission shall administer, collect, and enforce a tax under this chapter in
accordance with Chapter 1, General Taxation Policies.
(2)
Subject to Section
59-1-306
, the commission shall:
(a)
deposit 10% of the revenue the commission collects from a tax under this chapter
into the State Reinvestment Restricted Account created in Section
51-9-1002
; and
(b)
distribute 90% of the revenue to the county that levied the tax.
(3)
The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, about the delivered value of taxable energy.
(4)
The rules made under Subsection
(3)
shall:
(a)
provide that an arm's length sales price for taxable energy sold or used by a
high-impact consumer is the delivered value to the high-impact consumer, unless the
sales price does not include some portion of the taxable energy or component of
delivered value; and
(b)
establish one or more default methods for determining the delivered value one time
per calendar year on or before January 31 for taxable energy when the commission
determines that the sales price does not accurately reflect delivered value.
(5)
In establishing a default method under Subsection
(4)(b)
, the commission:
(a)
shall take into account quantity discounts and other reductions or increases in value
that are generally available in the marketplace for various grades or types of property
and classes of services; and
(b)
may consider:
(i)
generally applicable tariffs for various classes of utility services approved by the
Public Service Commission or other governmental entity;
(ii)
posted prices;
(iii)
spot-market prices;
(iv)
trade publications;
(v)
market data; and
(vi)
other information and data prescribed by the commission.
The following section is affected by a coordination clause at the end of this bill.
Section 40. Section
63G-2-206
is amended to read:
63G-2-206
Effective
05/06/26
. Sharing records.
(1)
A governmental entity may provide a record that is private, controlled, or protected to
another governmental entity, a government-managed corporation, a political
subdivision, the federal government, or another state if the requesting entity:
(a)
serves as a repository or archives for purposes of historical preservation,
administrative maintenance, or destruction;
(b)
enforces, litigates, or investigates civil, criminal, or administrative law, and the
record is necessary to a proceeding or investigation;
(c)
is authorized by state statute to conduct an audit and the record is needed for that
purpose;
(d)
is one that collects information for presentence, probationary, or parole purposes; or
(e)
(i)
is:
(A)
the Legislature;
(B)
a legislative committee;
(C)
a member of the Legislature; or
(D)
a legislative staff member acting at the request of the Legislature, a legislative
committee, or a member of the Legislature; and
(ii)
requests the record in relation to the Legislature's duties including:
(A)
the preparation or review of a legislative proposal or legislation;
(B)
appropriations; or
(C)
an investigation or review conducted by the Legislature or a legislative
committee.
(2)
(a)
A governmental entity may provide a private, controlled, or protected record or
record series to another governmental entity, a political subdivision, a
government-managed corporation, the federal government, or another state if the
requesting entity provides written assurance:
(i)
that the record or record series is necessary to the performance of the
governmental entity's duties and functions;
(ii)
that the record or record series will be used for a purpose similar to the purpose
for which the information in the record or record series was collected or obtained;
and
(iii)
that the use of the record or record series produces a public benefit that is greater
than or equal to the individual privacy right that protects the record or record
series.
(b)
A governmental entity may provide a private, controlled, or protected record or
record series to a contractor or a private provider according to the requirements of
Subsection
(6)(b)
(7)(b)
.
(3)
(a)
A governmental entity shall provide a private, controlled, or protected record to
another governmental entity, a political subdivision, a government-managed
corporation, the federal government, or another state if the requesting entity:
(i)
is entitled by law to inspect the record;
(ii)
is required to inspect the record as a condition of participating in a state or federal
program or for receiving state or federal funds; or
(iii)
is an entity described in Subsection
(1)(a)
,
(b)
,
(c)
,
(d)
, or
(e)
.
(b)
Subsection
(3)(a)(iii)
applies only if the record is a record described in Subsection
63G-2-305(4)
.
(4)
A record that is classified as protected as economic development information under
Subsection
63G-2-305(2)(b)
:
(a)
may be provided by the governmental entity that possesses the record and classified
the record as protected to another governmental entity in lieu of the second
governmental entity entering into a nondisclosure agreement with the person that
requested the record be treated as protected under Section
63G-2-309
;
(b)
may be shared with the following entities when the entities are considering an
economic development project:
(i)
the Governor's Office of Economic Opportunity;
(ii)
the Utah Inland Port Authority created in Section
11-58-201
;
(iii)
the Military Installation Development Authority created in Section
63H-1-201
;
(iv)
the Point of the Mountain State Land Authority created in Section
11-59-201
;
(v)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
;
(vi)
a county where the economic development opportunity may take place or be
sited; and
(vii)
a municipality where the economic development opportunity may take place or
be sited;
(c)
remains protected when shared as described in this Subsection
(4)
; and
(d)
shall be treated as a protected record by any governmental entity that receives the
record in accordance with this Subsection
(4)
.
(5)
Before disclosing a record or record series under this section to another governmental
entity, another state, the United States, a foreign government, or to a contractor or
private provider, the originating governmental entity shall:
(a)
inform the recipient of the record's classification and the accompanying restrictions
on access; and
(b)
if the recipient is not a governmental entity to which this chapter applies, obtain the
recipient's written agreement which may be by mechanical or electronic transmission
that it will abide by those restrictions on access unless a statute, federal regulation, or
interstate agreement otherwise governs the sharing of the record or record series.
(5)
(6)
A governmental entity may disclose a record to another state, the United States, or
a foreign government for the reasons listed in Subsections
(1)
and
(2)
without complying
with the procedures of Subsection
(2)
or
(4)
(5)
if disclosure is authorized by executive
agreement, treaty, federal statute, compact, federal regulation, or state statute.
(6)
(7)
(a)
Subject to Subsections
(6)(b)
(7)(b)
and
(c)
, an entity receiving a record
under this section is subject to the same restrictions on disclosure of the record as the
originating entity.
(b)
A contractor or a private provider may receive information under this section only if:
(i)
the contractor or private provider's use of the record or record series produces a
public benefit that is greater than or equal to the individual privacy right that
protects the record or record series;
(ii)
the record or record series it requests:
(A)
is necessary for the performance of a contract with a governmental entity;
(B)
will only be used for the performance of the contract with the governmental
entity;
(C)
will not be disclosed to any other person; and
(D)
will not be used for advertising or solicitation purposes; and
(iii)
the contractor or private provider gives written assurance to the governmental
entity that is providing the record or record series that
it
the contractor or private
provider
will adhere to the restrictions of this Subsection
(6)(b)
(7)(b)
.
(c)
The classification of a record already held by a governmental entity and the
applicable restrictions on disclosure of that record are not affected by the
governmental entity's receipt under this section of a record with a different
classification that contains information that is also included in the previously held
record.
(7)
(8)
Notwithstanding any other provision of this section, if a more specific court rule or
order, state statute, federal statute, or federal regulation prohibits or requires sharing
information, that rule, order, statute, or federal regulation controls.
(8)
(9)
(a)
The following records may not be shared under this section:
(i)
records held by the Division of Oil, Gas, and Mining that pertain to any person
and that are gathered under authority of
Title 40, Chapter 6, Board and Division of
Oil, Gas, and Mining
;
(ii)
except as provided in Subsection
(8)(b)
(9)(b)
, records of publicly funded
libraries as described in Subsection
63G-2-302(1)(c)
; and
(iii)
a record described in Section
63G-12-210
.
(b)
A publicly funded library may share a record that is a private record under
Subsection
63G-2-302(1)(c)
with a law enforcement agency, as defined in Section
53-1-102
, if:
(i)
the record is a video surveillance recording of the library premises; and
(ii)
the law enforcement agency certifies in writing that:
(A)
the law enforcement agency believes that the record will provide important
information for a pending investigation into criminal or potentially criminal
behavior; and
(B)
the law enforcement agency's receipt of the record will assist the agency to
prevent imminent harm to an individual or imminent and substantial damage to
property.
(9)
(10)
Records that may evidence or relate to a violation of law may be disclosed to a
government prosecutor, peace officer, or auditor.
Section 41. Section
63G-2-305
is amended to read:
63G-2-305
Effective
05/06/26
. Protected records.
The following records are protected if properly classified by a governmental entity:
(1)
trade secrets as defined in Section
13-24-2
if the person submitting the trade secret
has
provided
provides
the governmental entity with the information specified in Section
63G-2-309
;
(2)
(a)
commercial information or nonindividual financial information obtained from a
person if:
(a)
(i)
disclosure of the information could reasonably be expected to result in unfair
competitive injury to the person submitting the information or would impair the
ability of the governmental entity to obtain necessary information in the future;
(b)
(ii)
the person submitting the information has a greater interest in prohibiting
access than the public in obtaining access; and
(c)
(iii)
the person submitting the information
has provided
provides
the
governmental entity with the information specified in Section
63G-2-309
;
or
(b)
confidential economic development information:
(i)
(A)
if the information is related to an economic development opportunity;
(B)
that a person provides to a governmental entity involved with recruiting or
negotiating with the person to expand the person's existing business within the
state or bring a new business to the state; and
(C)
if the person submitting the information provides the governmental entity with
the information specified in Section
63G-2-309
; or
(ii)
that takes the form of a nondisclosure agreement between a person and a
governmental entity exploring an economic development opportunity;
(3)
commercial or financial information acquired or prepared by a governmental entity to
the extent that disclosure would lead to financial speculations in currencies, securities, or
commodities that will interfere with a planned transaction by the governmental entity or
cause substantial financial injury to the governmental entity or state economy;
(4)
records, the disclosure of which could cause commercial injury to, or confer a
competitive advantage upon a potential or actual competitor of, a commercial project
entity as defined in Subsection
11-13-103(4)
;
(5)
test questions and answers to be used in future license, certification, registration,
employment, or academic examinations;
(6)
records, the disclosure of which would impair governmental procurement proceedings
or give an unfair advantage to any person proposing to enter into a contract or agreement
with a governmental entity, except, subject to Subsections
(1)
and
(2)
, that this
Subsection
(6)
does not restrict the right of a person to have access to, after the contract
or grant has been awarded and signed by all parties:
(a)
a bid, proposal, application, or other information submitted to or by a governmental
entity in response to:
(i)
an invitation for bids;
(ii)
a request for proposals;
(iii)
a request for quotes;
(iv)
a grant; or
(v)
other similar document; or
(b)
an unsolicited proposal, as defined in Section
63G-6a-712
;
(7)
information submitted to or by a governmental entity in response to a request for
information, except, subject to Subsections
(1)
and
(2)
, that this Subsection
(7)
does not
restrict the right of a person to have access to the information, after:
(a)
a contract directly relating to the subject of the request for information has been
awarded and signed by all parties; or
(b)
(i)
a final determination is made not to enter into a contract that relates to the
subject of the request for information; and
(ii)
at least two years have passed after the day on which the request for information
is issued;
(8)
records that would identify real property or the appraisal or estimated value of real or
personal property, including intellectual property, under consideration for public
acquisition before any rights to the property are acquired unless:
(a)
public interest in obtaining access to the information is greater than or equal to the
governmental entity's need to acquire the property on the best terms possible;
(b)
the information has already been disclosed to persons not employed by or under a
duty of confidentiality to the entity;
(c)
in the case of records that would identify property, potential sellers of the described
property have already learned of the governmental entity's plans to acquire the
property;
(d)
in the case of records that would identify the appraisal or estimated value of
property, the potential sellers have already learned of the governmental entity's
estimated value of the property; or
(e)
the property under consideration for public acquisition is a single family residence
and the governmental entity seeking to acquire the property has initiated negotiations
to acquire the property as required under Section
78B-6-505
;
(9)
records prepared in contemplation of sale, exchange, lease, rental, or other compensated
transaction of real or personal property including intellectual property, which, if
disclosed prior to completion of the transaction, would reveal the appraisal or estimated
value of the subject property, unless:
(a)
the public interest in access is greater than or equal to the interests in restricting
access, including the governmental entity's interest in maximizing the financial
benefit of the transaction; or
(b)
when prepared by or on behalf of a governmental entity, appraisals or estimates of
the value of the subject property have already been disclosed to persons not
employed by or under a duty of confidentiality to the entity;
(10)
records created or maintained for civil, criminal, or administrative enforcement
purposes or audit purposes, or for discipline, licensing, certification, or registration
purposes, if release of the records:
(a)
reasonably could be expected to interfere with investigations undertaken for
enforcement, discipline, licensing, certification, or registration purposes;
(b)
reasonably could be expected to interfere with audits, disciplinary, or enforcement
proceedings;
(c)
would create a danger of depriving a person of a right to a fair trial or impartial
hearing;
(d)
reasonably could be expected to disclose the identity of a source who is not generally
known outside of government and, in the case of a record compiled in the course of
an investigation, disclose information furnished by a source not generally known
outside of government if disclosure would compromise the source; or
(e)
reasonably could be expected to disclose investigative or audit techniques,
procedures, policies, or orders not generally known outside of government if
disclosure would interfere with enforcement or audit efforts;
(11)
records the disclosure of which would jeopardize the life or safety of an individual;
(12)
records the disclosure of which would jeopardize the security of governmental
property, governmental programs, or governmental recordkeeping systems from
damage, theft, or other appropriation or use contrary to law or public policy;
(13)
records that, if disclosed, would jeopardize the security or safety of a correctional
facility, or records relating to incarceration, treatment, probation, or parole, that would
interfere with the control and supervision of an offender's incarceration, treatment,
probation, or parole;
(14)
records that, if disclosed, would reveal recommendations made to the Board of
Pardons and Parole by an employee of or contractor for the Department of Corrections,
the Board of Pardons and Parole, or the Department of Health and Human Services that
are based on the employee's or contractor's supervision, diagnosis, or treatment of any
person within the board's jurisdiction;
(15)
records and audit workpapers that identify audit, collection, and operational procedures
and methods used by the State Tax Commission, if disclosure would interfere with
audits or collections;
(16)
records of a governmental audit agency relating to an ongoing or planned audit until
the final audit is released;
(17)
records that are subject to the attorney client privilege;
(18)
records prepared for or by an attorney, consultant, surety, indemnitor, insurer,
employee, or agent of a governmental entity for, or in anticipation of, litigation or a
judicial, quasi-judicial, or administrative proceeding;
(19)
(a)
(i)
personal files of a state legislator, including personal correspondence to or
from a member of the Legislature; and
(ii)
notwithstanding Subsection
(19)(a)(i)
, correspondence that gives notice of
legislative action or policy may not be classified as protected under this section;
and
(b)
(i)
an internal communication that is part of the deliberative process in connection
with the preparation of legislation between:
(A)
members of a legislative body;
(B)
a member of a legislative body and a member of the legislative body's staff; or
(C)
members of a legislative body's staff; and
(ii)
notwithstanding Subsection
(19)(b)(i)
, a communication that gives notice of
legislative action or policy may not be classified as protected under this section;
(20)
(a)
records in the custody or control of the Office of Legislative Research and
General Counsel, that, if disclosed, would reveal a particular legislator's
contemplated legislation or contemplated course of action before the legislator has
elected to support the legislation or course of action, or made the legislation or course
of action public; and
(b)
notwithstanding Subsection
(20)(a)
, the form to request legislation submitted to the
Office of Legislative Research and General Counsel is a public document unless a
legislator asks that the records requesting the legislation be maintained as protected
records until such time as the legislator elects to make the legislation or course of
action public;
(21)
a research request from a legislator to a legislative staff member and research findings
prepared in response to the request;
(22)
drafts, unless otherwise classified as public;
(23)
records concerning a governmental entity's strategy about:
(a)
collective bargaining; or
(b)
imminent or pending litigation;
(24)
records of investigations of loss occurrences and analyses of loss occurrences that may
be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
Uninsured Employers' Fund, or similar divisions in other governmental entities;
(25)
records, other than personnel evaluations, that contain a personal recommendation
concerning an individual if disclosure would constitute a clearly unwarranted invasion
of personal privacy, or disclosure is not in the public interest;
(26)
records that reveal the location of historic, prehistoric, paleontological, or biological
resources that if known would jeopardize the security of those resources or of valuable
historic, scientific, educational, or cultural information;
(27)
records of independent state agencies if the disclosure of the records would conflict
with the fiduciary obligations of the agency;
(28)
records of an institution of higher education defined in Section
53H-1-101
regarding
tenure evaluations, appointments, applications for admissions, retention decisions, and
promotions, which could be properly discussed in a meeting closed in accordance with
Title
52, Chapter 4
, Open and Public Meetings Act, provided that records of the final
decisions about tenure, appointments, retention, promotions, or those students admitted,
may not be classified as protected under this section;
(29)
records of the governor's office, including budget recommendations, legislative
proposals, and policy statements, that if disclosed would reveal the governor's
contemplated policies or contemplated courses of action before the governor has
implemented or rejected those policies or courses of action or made them public;
(30)
records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
revenue estimates, and fiscal notes of proposed legislation before issuance of the final
recommendations in these areas;
(31)
records provided by the United States or by a government entity outside the state that
are given to the governmental entity with a requirement that they be managed as
protected records if the providing entity certifies that the record would not be subject to
public disclosure if retained by it;
(32)
transcripts, minutes, recordings, or reports of the closed portion of a meeting of a
public body except as provided in Section
52-4-206
;
(33)
records that would reveal the contents of settlement negotiations but not including final
settlements or empirical data to the extent that they are not otherwise exempt from
disclosure;
(34)
memoranda prepared by staff and used in the decision-making process by an
administrative law judge, a member of the Board of Pardons and Parole, or a member of
any other body charged by law with performing a quasi-judicial function;
(35)
records that would reveal negotiations regarding assistance or incentives offered by or
requested from a governmental entity for the purpose of encouraging a person to expand
or locate a business in Utah, but only if disclosure would result in actual economic harm
to the person or place the governmental entity at a competitive disadvantage, but this
section may not be used to restrict access to a record evidencing a final contract;
(36)
materials to which access must be limited for purposes of securing or maintaining the
governmental entity's proprietary protection of intellectual property rights including
patents, copyrights, and trade secrets;
(37)
the name of a donor or a prospective donor to a governmental entity, including an
institution of higher education defined in Section
53H-1-101
, and other information
concerning the donation that could reasonably be expected to reveal the identity of the
donor, provided that:
(a)
the donor requests anonymity in writing;
(b)
any terms, conditions, restrictions, or privileges relating to the donation may not be
classified protected by the governmental entity under this Subsection
(37)
; and
(c)
except for an institution of higher education defined in Section
53H-1-101
, the
governmental unit to which the donation is made is primarily engaged in educational,
charitable, or artistic endeavors, and has no regulatory or legislative authority over
the donor, a member of the donor's immediate family, or any entity owned or
controlled by the donor or the donor's immediate family;
(38)
accident reports, except as provided in Sections
41-6a-404
,
41-12a-202
, and
73-18-13
;
(39)
a notification of workers' compensation insurance coverage described in Section
34A-2-205
;
(40)
subject to Subsections
(40)(g)
and
(h)
, the following records of an institution of higher
education defined in Section
53H-1-101
, which have been developed, discovered,
disclosed to, or received by or on behalf of faculty, staff, employees, or students of the
institution:
(a)
unpublished lecture notes;
(b)
unpublished notes, data, and information:
(i)
relating to research; and
(ii)
of:
(A)
the institution of higher education defined in Section
53H-1-101
; or
(B)
a sponsor of sponsored research;
(c)
unpublished manuscripts;
(d)
creative works in process;
(e)
scholarly correspondence;
and
(f)
confidential information contained in research proposals;
(g)
this Subsection
(40)
may not be construed to prohibit disclosure of public
information required
pursuant to
Subsection
53H-14-202(2)(a)
or (b); and
(h)
this Subsection
(40)
may not be construed to affect the ownership of a record;
(41)
(a)
records in the custody or control of the Office of the Legislative Auditor General
that would reveal the name of a particular legislator who requests a legislative audit
prior to the date that audit is completed and made public; and
(b)
notwithstanding Subsection
(41)(a)
, a request for a legislative audit submitted to the
Office of the Legislative Auditor General is a public document unless the legislator
asks that the records in the custody or control of the Office of the Legislative Auditor
General that would reveal the name of a particular legislator who requests a
legislative audit be maintained as protected records until the audit is completed and
made public;
(42)
records that provide detail as to the location of an explosive, including a map or other
document that indicates the location of:
(a)
a production facility; or
(b)
a magazine;
(43)
information contained in the statewide database of the Division of Aging and Adult
Services created by Section
26B-6-210
;
(44)
information contained in the Licensing Information System described in Title
80,
Chapter 2
, Child Welfare Services;
(45)
information regarding National Guard operations or activities in support of the
National Guard's federal mission;
(46)
records provided by any pawn or secondhand business to a law enforcement agency or
to the central database in compliance with Title
13, Chapter 32a
, Pawnshop, Secondhand
Merchandise, and Catalytic Converter Transaction Information Act;
(47)
information regarding food security, risk, and vulnerability assessments performed by
the Department of Agriculture and Food;
(48)
except to the extent that the record is exempt from this chapter
pursuant to
in
accordance with
Section
63G-2-106
, records related to an emergency plan or program, a
copy of which is provided to or prepared or maintained by the Division of Emergency
Management, and the disclosure of which would jeopardize:
(a)
the safety of the general public; or
(b)
the security of:
(i)
governmental property;
(ii)
governmental programs; or
(iii)
the property of a private person who provides the Division of Emergency
Management information;
(49)
records of the Department of Agriculture and Food that provides for the identification,
tracing, or control of livestock diseases, including any program established under Title
4, Chapter 24
, Utah Livestock Brand and Anti-Theft Act, or Title
4, Chapter 31
, Control
of Animal Disease;
(50)
as provided in Section
26B-2-709
:
(a)
information or records held by the Department of Health and Human Services related
to a complaint regarding a provider, program, or facility which the department is
unable to substantiate; and
(b)
information or records related to a complaint received by the Department of Health
and Human Services from an anonymous complainant regarding a provider, program,
or facility;
(51)
unless otherwise classified as public under Section
63G-2-301
and except as provided
under Section
41-1a-116
, an individual's home address, home telephone number, or
personal mobile phone number, if:
(a)
the individual is required to provide the information in order to comply with a law,
ordinance, rule, or order of a government entity; and
(b)
the subject of the record has a reasonable expectation that this information will be
kept confidential due to:
(i)
the nature of the law, ordinance, rule, or order; and
(ii)
the individual complying with the law, ordinance, rule, or order;
(52)
the portion of the following documents that contains a candidate's residential or
mailing address, if the candidate provides to the filing officer another address or phone
number where the candidate may be contacted:
(a)
a declaration of candidacy, a nomination petition, or a certificate of nomination,
described in Section
20A-9-201
,
20A-9-202
,
20A-9-203
,
20A-9-404
,
20A-9-405
,
20A-9-408
,
20A-9-408.5
,
20A-9-502
, or
20A-9-601
;
(b)
an affidavit of impecuniosity, described in Section
20A-9-201
; or
(c)
a notice of intent to gather signatures for candidacy, described in Section
20A-9-408
;
(53)
the name, home address, work addresses, and telephone numbers of an individual that
is engaged in, or that provides goods or services for, medical or scientific research that is:
(a)
conducted within the state system of higher education, as described in Section
53H-1-102
; and
(b)
conducted using animals;
(54)
in accordance with Section
78A-12-203
, any record of the Judicial Performance
Evaluation Commission concerning an individual commissioner's vote, in relation to
whether a judge meets or exceeds minimum performance standards under Subsection
78A-12-203(4)
, and information disclosed under Subsection
78A-12-203(5)(e)
;
(55)
information collected and a report prepared by the Judicial Performance Evaluation
Commission concerning a judge, unless Section
20A-7-702
or Title
78A, Chapter 12
,
Judicial Performance Evaluation Commission Act, requires disclosure of, or makes
public, the information or report;
(56)
records provided or received by the Public Lands Policy Coordinating Office in
furtherance of any contract or other agreement made in accordance with Section
63L-11-202
;
(57)
information requested by and provided to the 911 Division under Section
63H-7a-302
;
(58)
in accordance with Section
73-10-33
:
(a)
a management plan for a water conveyance facility in the possession of the Division
of Water Resources or the Board of Water Resources; or
(b)
an outline of an emergency response plan in possession of the state or a county or
municipality;
(59)
the following records in the custody or control of the Office of Inspector General of
Medicaid Services, created in Section
63A-13-201
:
(a)
records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a person if the information
or allegation cannot be corroborated by the Office of Inspector General of Medicaid
Services through other documents or evidence, and the records relating to the
allegation are not relied upon by the Office of Inspector General of Medicaid
Services in preparing a final investigation report or final audit report;
(b)
records and audit workpapers to the extent they would disclose the identity of a
person who, during the course of an investigation or audit, communicated the
existence of any Medicaid fraud, waste, or abuse, or a violation or suspected
violation of a law, rule, or regulation adopted under the laws of this state, a political
subdivision of the state, or any recognized entity of the United States, if the
information was disclosed on the condition that the identity of the person be
protected;
(c)
before the time that an investigation or audit is completed and the final investigation
or final audit report is released, records or drafts circulated to a person who is not an
employee or head of a governmental entity for the person's response or information;
(d)
records that would disclose an outline or part of any investigation, audit survey plan,
or audit program; or
(e)
requests for an investigation or audit, if disclosure would risk circumvention of an
investigation or audit;
(60)
records that reveal methods used by the Office of Inspector General of Medicaid
Services, the fraud unit, or the Department of Health and Human Services, to discover
Medicaid fraud, waste, or abuse;
(61)
information provided to the Department of Health and Human Services or the Division
of Professional Licensing under Subsections
58-67-304(3)
and (4) and Subsections
58-68-304(3)
and (4);
(62)
a record described in Section
63G-12-210
;
(63)
captured plate data that is obtained through an automatic license plate reader system
used by a governmental entity as authorized in Section
41-6a-2003
;
(64)
an audio or video recording created by a body-worn camera, as that term is defined in
Section
77-7a-103
, that records sound or images inside a hospital or health care facility
as those terms are defined in Section
78B-3-403
, inside a clinic of a health care provider,
as that term is defined in Section
78B-3-403
, or inside a human
service
services
program as that term is defined in Section
26B-2-101
, except for recordings that:
(a)
depict the commission of an alleged crime;
(b)
record any encounter between a law enforcement officer and a person that results in
death or bodily injury, or includes an instance when an officer fires a weapon;
(c)
record any encounter that is the subject of a complaint or a legal proceeding against a
law enforcement officer or law enforcement agency;
(d)
contain an officer involved critical incident as defined in Subsection
76-2-408(1)(f)
;
or
(e)
have been requested for reclassification as a public record by a subject or authorized
agent of a subject featured in the recording;
(65)
a record pertaining to the search process for a president of an institution of higher
education described in Section
53H-3-302
;
(66)
an audio recording that is:
(a)
produced by an audio recording device that is used in conjunction with a device or
piece of equipment designed or intended for resuscitating an individual or for treating
an individual with a life-threatening condition;
(b)
produced during an emergency event when an individual employed to provide law
enforcement, fire protection, paramedic, emergency medical, or other first responder
service:
(i)
is responding to an individual needing resuscitation or with a life-threatening
condition; and
(ii)
uses a device or piece of equipment designed or intended for resuscitating an
individual or for treating an individual with a life-threatening condition; and
(c)
intended and used for purposes of training emergency responders how to improve
their response to an emergency situation;
(67)
records submitted by or prepared in relation to an applicant seeking a recommendation
by the Research and General Counsel Subcommittee, the Budget Subcommittee, or the
Legislative Audit Subcommittee, established under Section
36-12-8
, for an employment
position with the Legislature;
(68)
work papers as defined in Section
31A-2-204
;
(69)
a record made available to Adult Protective Services or a law enforcement agency
under Section
61-1-206
;
(70)
a record submitted to the Insurance Department in accordance with Section
31A-37-201
;
(71)
a record described in Section
31A-37-503
;
(72)
any record created by the Division of Professional Licensing as a result of Subsection
58-37f-304(5)
or
58-37f-702(2)(a)(ii)
;
(73)
a record described in Section
72-16-306
that relates to the reporting of an injury
involving an amusement ride;
(74)
except as provided in Subsection
63G-2-305.5(1)
, the signature of an individual on a
political petition, or on a request to withdraw a signature from a political petition,
including a petition or request described in the following titles:
(a)
Title
10, Utah Municipal Code
;
(b)
Title
17, Counties
;
(c)
Title
17B, Limited Purpose Local Government Entities - Special Districts
;
(d)
Title
17D, Limited Purpose Local Government Entities - Other Entities
; and
(e)
Title
20A, Election Code
;
(75)
except as provided in Subsection
63G-2-305.5(2)
, the signature of an individual in a
voter registration record;
(76)
except as provided in Subsection
63G-2-305.5(3)
, any signature, other than a signature
described in Subsection
(74)
or
(75)
, in the custody of the lieutenant governor or a local
political subdivision collected or held under, or in relation to, Title
20A, Election Code
;
(77)
a Form I-918 Supplement B certification as described in Title
77, Chapter 38, Part 5
,
Victims Guidelines for Prosecutors Act;
(78)
a record submitted to the Insurance Department under Section
31A-48-103
;
(79)
personal information, as defined in Section
63G-26-102
, to the extent disclosure is
prohibited under Section
63G-26-103
;
(80)
an image taken of an individual during the process of booking the individual into jail,
unless:
(a)
the individual is convicted of a criminal offense based upon the conduct for which
the individual was incarcerated at the time the image was taken;
(b)
a law enforcement agency releases or disseminates the image:
(i)
after determining that the individual is a fugitive or an imminent threat to an
individual or to public safety and releasing or disseminating the image will assist
in apprehending the individual or reducing or eliminating the threat; or
(ii)
to a potential witness or other individual with direct knowledge of events relevant
to a criminal investigation or criminal proceeding for the purpose of identifying or
locating an individual in connection with the criminal investigation or criminal
proceeding;
(c)
a judge orders the release or dissemination of the image based on a finding that the
release or dissemination is in furtherance of a legitimate law enforcement interest; or
(d)
the image is displayed to a person who is permitted to view the image under Section
17-72-802
;
(81)
a record:
(a)
concerning an interstate claim to the use of waters in the Colorado River system;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
representative from another state or the federal government as provided in Section
63M-14-205
; and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water in the
Colorado River system;
(ii)
harm the ability of the Colorado River Authority of Utah or river commissioner to
negotiate the best terms and conditions regarding the use of water in the Colorado
River system; or
(iii)
give an advantage to another state or to the federal government in negotiations
regarding the use of water in the Colorado River system;
(82)
any part of an application described in Section
63N-16-201
that the Governor's Office
of Economic Opportunity determines is nonpublic, confidential information that if
disclosed would result in actual economic harm to the applicant, but this Subsection
(82)
may not be used to restrict access to a record evidencing a final contract or approval
decision;
(83)
the following records of a drinking water or wastewater facility:
(a)
an engineering or architectural drawing of the drinking water or wastewater facility;
and
(b)
except as provided in Section
63G-2-106
, a record detailing tools or processes the
drinking water or wastewater facility uses to secure, or prohibit access to, the records
described in Subsection
(83)(a)
;
(84)
a statement that an employee of a governmental entity provides to the governmental
entity as part of the governmental entity's personnel or administrative investigation into
potential misconduct involving the employee if the governmental entity:
(a)
requires the statement under threat of employment disciplinary action, including
possible termination of employment, for the employee's refusal to provide the
statement; and
(b)
provides the employee assurance that the statement cannot be used against the
employee in any criminal proceeding;
(85)
any part of an application for a Utah Fits All Scholarship account described in Section
53F-6-402
or other information identifying a scholarship student as defined in Section
53F-6-401
;
(86)
a record:
(a)
concerning a claim to the use of waters in the Great Salt Lake;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
person concerning the claim, including a representative from another state or the
federal government; and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water in the
Great Salt Lake;
(ii)
harm the ability of the Great Salt Lake commissioner to negotiate the best terms
and conditions regarding the use of water in the Great Salt Lake; or
(iii)
give an advantage to another person including another state or to the federal
government in negotiations regarding the use of water in the Great Salt Lake;
(87)
a consumer complaint described in Section
13-2-11
, unless the consumer complaint is
reclassified as public as described in Subsection
13-2-11
(4)
13-2-11(3)
;
(88)
a record of the Utah water agent, appointed under Section
73-10g-702
:
(a)
concerning a claim to the use of waters;
(b)
relating to a judicial proceeding, administrative proceeding, or negotiation with a
representative from another state, a tribe, the federal government, or other
government entity as provided in
Title
73, Ch
apter
10g, Part 7, Utah Water Agent;
and
(c)
the disclosure of which would:
(i)
reveal a legal strategy relating to the state's claim to the use of the water;
(ii)
harm the ability of the Utah water agent to negotiate the best terms and conditions
regarding the use of water; or
(iii)
give an advantage to another state, a tribe, the federal government, or other
government entity in negotiations regarding the use of water; and
(89)
a record created or maintained for an investigation of the Prosecutor Conduct
Commission, created in Section
63M-7-1102
, that contains any personal identifying
information of a prosecuting attorney, including:
(a)
a complaint, or a document that is submitted or created for a complaint, received by
the Prosecutor Conduct Commission; or
(b)
a finding by the Prosecutor Conduct Commission.
Section 42. Section
63G-2-309
is amended to read:
63G-2-309
Effective
05/06/26
. Confidentiality claims.
(1)
(a)
(i)
Any person who provides to a governmental entity a record that the person
believes should be protected under Subsection
63G-2-305(1)
or
(2)
or both
Subsections
63G-2-305(1)
and
(2)
shall provide with the record
, or within a
reasonable amount of time after providing the record
:
(A)
a written claim of business confidentiality; and
(B)
a concise statement of reasons supporting the claim of business confidentiality.
(ii)
Any of the following who provides to an institution of higher education defined
in Section
53H-1-101
a record that the person or governmental entity believes
should be protected under
Subsection
63G-2-305(40)(a)(ii)
or
(vi)
or both
Subsections
63G-2-305(40)(a)(ii)
and
(vi)
Subsection
63G-2-305(40)
shall
provide the institution within the state system of higher education a written claim
of business confidentiality in accordance with Section
53H-14-204
:
(A)
a person;
(B)
a federal governmental entity;
(C)
a state governmental entity; or
(D)
a local governmental entity.
(b)
A person or governmental entity who complies with this Subsection
(1)
shall be
notified by the governmental entity to whom the request for a record is made if:
(i)
a record claimed to be protected under one of the following is classified public:
(A)
Subsection
63G-2-305(1)
;
(B)
Subsection
63G-2-305(2)
;
(C)
S
ubsection
63G-2-305(40)(a)(ii)
63G-2-305(40)
;
o
r
(D)
Subsection
63G-2-305(40)(a)(vi)
; or
(E)
(D)
a combination of the provisions described in Subsections
(1)(b)(i)(A)
through
(D)
(C)
; or
(ii)
the governmental entity to whom the request for a record is made determines that
the record claimed to be protected under a provision listed in Subsection
(1)(b)(i)
should be released after balancing interests under Subsection
63G-2-201(5)(b)
or
63G-2-401(6)
.
(c)
A person who makes a claim of business confidentiality under this Subsection
(1)
shall protect, defend, and indemnify the governmental entity that retains the record,
and all staff and employees of the governmental entity from and against any claims,
liability, or damages resulting from or arising from a denial of access to the record as
a protected record based on the claim of business confidentiality.
(2)
(a)
Except as provided in Subsection
(2)(b)
or by court order, the governmental entity
to whom the request for a record is made may not disclose a record claimed to be
protected under a provision listed in Subsection
(1)(b)(i)
but which the governmental
entity or the director of the Government Records Office determines should be
disclosed until the period in which to bring an appeal expires or the end of the
appeals process, including judicial appeal.
(b)
Subsection
(2)(a)
does not apply where the claimant, after notice, has waived the
claim by not appealing or intervening before the director of the Government Records
Office.
(3)
Disclosure or acquisition of information under this chapter does not constitute
misappropriation under Subsection
13-24-2(2)
.
Section 43. Section
63G-2-802
is amended to read:
63G-2-802
Effective
05/06/26
. Injunction -- Attorney fees and costs.
(1)
As used in this section, "defending party" means:
(a)
a governmental entity or political subdivision:
(i)
whose access denial is the subject of a petition for judicial review under Section
63G-2-404
; and
(ii)
that defends the access denial in an action for judicial review under Section
63G-2-404
; or
(b)
a person, other than the governmental entity or political subdivision described in
Subsection
(1)(a)
, that is party to the action for judicial review in opposition to
disclosure of the record that is the subject of judicial review.
(2)
(a)
If a protected record is shared as described in Subsection
63G-2-206(4)
and the
protected record is intentionally disclosed, or about to be intentionally disclosed, the
person who requested the record be protected under Section
63G-2-309
may bring an
action against the governmental entity that intentionally disclosed, or is about to i
ntentionally disclose,
as described in this section.
(b)
A person described in Subsection
(2)(a)
may seek and obtain:
(i)
injunctive relief to stop the improper disclosure of the protected record; and
(ii)
damages for an improper disclosure, subject to the limits set by rule in accordance
with
Subsection
63G-7-605(5)
.
(3)
A district court in this state may enjoin any governmental entity or political subdivision
that violates or proposes to violate the provisions of this chapter.
(3)
(4)
(a)
Subject to Subsection
(6)
(7)
, a district court may assess against a defending
party reasonable attorney fees and costs reasonably incurred in connection with a
judicial appeal to determine whether a requester is entitled access to records under a
records request, if:
(i)
the requester substantially prevails; and
(ii)
the court finds that the defending party acted in bad faith.
(b)
Subject to Subsection
(6)
(7)
, in determining whether to award attorney fees or costs
to a requester under this section, the court shall consider:
(i)
the public benefit derived from the case;
(ii)
the nature of the requester's interest in the records; and
(iii)
whether the defending party's actions had a reasonable basis.
(c)
A court may not award attorney fees or costs to a requester under this section if the
purpose of the litigation is primarily to benefit the requester's financial or commercial
interest.
(4)
(5)
Neither attorney fees nor costs may be awarded for fees or costs incurred during
administrative proceedings.
(5)
(6)
A district court may assess against a requester reasonable attorney fees and costs
reasonably incurred in connection with a judicial appeal to determine whether the
requester is entitled to access to records under a records request, if:
(a)
the defending party substantially prevails; and
(b)
the court finds that the requester acted in bad faith.
(6)
(7)
A court may award to a requester attorney fees and costs incurred in connection
with appeals to district courts under Subsection
63G-2-404
(2)
63G-2-404(3)
only if the
attorney fees and costs were incurred 20 or more days after the day on which the
requester provided to the governmental entity, political subdivision, or other person
against which the requester seeks an award of attorney fees and costs, an adequate
explanation in writing of the basis for the requester's position, regardless of whether the
explanation is a part of or outside an administrative or court proceeding.
(7)
(8)
Except for the waiver of immunity in Subsection
63G-7-301(2)(e)
, a claim for
attorney fees or costs as provided in this section is not subject to Chapter 7,
Governmental Immunity Act of Utah.
Section 44. Section
63G-7-605
is amended to read:
63G-7-605
Effective
05/06/26
. Adjustments to limitation of judgment amounts.
(1)
As used in this section:
(a)
"Adjusted consumer price factor" means what the consumer price index would be
without the medical care component and the medical services component.
(b)
"Aggregate limit" means the limit on the aggregate amount of personal injury
damages claims from a single occurrence, as provided in Subsection
63G-7-604(1)(d)
.
(c)
"Applicable index" means:
(i)
the consumer price index, for a calculation of the percentage change in the
consumer price index;
(ii)
the adjusted consumer price factor, for a calculation of the percentage change in
the adjusted consumer price factor;
(iii)
the medical care component, for a calculation of the percentage change in the
medical care component; or
(iv)
the medical services component, for a calculation of the percentage change in the
medical services component.
(d)
"Base applicable index" means an applicable index for the year that is three years
before the year in which the legislative fiscal analyst calculates new limits under this
section.
(e)
"Consumer
price index
Price Index
"
means the annual index reported by the United
States Bureau of Labor Statistics for consumer prices for all urban consumers, not
seasonally adjusted.
(f)
"Individual limit" means the limit on the amount of a judgment for damages for
personal injury, as provided in Subsection
63G-7-604(1)(a)
.
(g)
"Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
manager under this section.
(h)
"Latest individual limit" means the individual limit, as last adjusted by the risk
manager under this section.
(i)
"Latest property damage limit" means the property damage limit, as last adjusted by
the risk manager under this section.
(j)
"Medical care component" means the medical care sub-index of the consumer price
index.
(k)
"Medical services component" means the medical care services sub-index of the
consumer price index.
(l)
"Percentage change" means the amount of change between the base applicable index
and the applicable index for the year before the year in which the legislative fiscal
analyst calculates new limits under this section, expressed as a percentage of the base
applicable index.
(m)
"Property damage limit" means the limit on the amount of a judgment for property
damage, as provided in Subsection
63G-7-604(1)(c)
.
(n)
"Risk manager" means the state risk manager appointed under Section
63A-4-101.5
.
(2)
Each even-numbered year, the legislative fiscal analyst shall, subject to Subsection
(3)
:
(a)
calculate a new individual limit by adding to the latest individual limit the sum of:
(i)
66.5% of the latest individual limit, multiplied by the percentage change in the
adjusted consumer price factor;
(ii)
16.75% of the latest individual limit, multiplied by the percentage change in the
medical care component; and
(iii)
16.75% of the latest individual limit, multiplied by the percentage change in the
medical services component;
(b)
calculate a new aggregate limit by adding to the latest aggregate limit the sum of:
(i)
66.5% of the latest aggregate limit, multiplied by the percentage change in the
adjusted consumer price factor;
(ii)
16.75% of the latest aggregate limit, multiplied by the percentage change in the
medical care component; and
(iii)
16.75% of the latest aggregate limit, multiplied by the percentage change in the
medical services component;
(c)
calculate a new property damage limit by adding to the latest property damage limit
the amount of the latest property damage limit multiplied by the percentage change in
the consumer price index;
(d)
round up to the nearest $100 the individual limit, aggregate limit, and property
damage limit calculated under Subsections
(2)(a)
,
(b)
, and
(c)
; and
(e)
no later than May 1, communicate the newly calculated limits under Subsections
(2)(a)
,
(b)
, and
(c)
to the risk manager.
(3)
The newly calculated individual limit, aggregate limit, or property damage limit under
Subsection
(2)
may not be less than the amount of the limit before the new calculation
under Subsection
(2)
.
(4)
(a)
Each even-numbered year, the risk manager shall make rules, to become effective
no later than July 1 of that year, that establish a new individual limit, aggregate limit,
and property damage limit, as calculated under Subsection
(2)
.
(b)
A newly calculated individual limit, aggregate limit, or property damage limit under
this section has prospective effect only from the date the rules establishing the new
limit take effect.
(c)
An individual limit, aggregate limit, or property damage limit, as newly calculated
under this section, applies only to a claim for injury or loss that occurs after the
effective date of the rules that establish the newly calculated limit.
(5)
The risk manager shall make rules by no later than July 1, 2026, and thereafter each July
1 of even-numbered years, that establish the limit of liability for damages resulting from
the disclosure of a protected record as provided in Subsection
63G-2-802(2)
.
Section 45. Section
63I-2-263
is amended to read:
63I-2-263
Effective
05/06/26
. Repeal dates: Titles 63A through 63O.
(1)
Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
Procurement Advisory Council is repealed July 1, 2025.
(2)
Section
63A-5b-807
, Eminent domain of unincorporated city owned land, is repealed
January 1, 2027.
(3)
Section
63A-17-806
, Definitions -- Infant at Work Pilot Program -- Administration --
Report, is repealed June 30, 2026.
(4)
Section
63C-1-103
, Appointment and terms of boards, committees, councils, and
commissions transitioning on October 1, 2024, or December 31, 2024, is repealed July
1, 2025.
(5)
Section
63C-1-104
, Appointment and terms of boards transitioning on October 1, 2024,
is repealed January 1, 2025.
(6)
Subsection
63G-6a-802
(1)(e), regarding a procurement for a presidential debate, is
repealed January 1, 2025.
(7)
Subsection
63G-6a-802
(3)(b)(iii), regarding a procurement for a presidential debate, is
repealed January 1, 2025.
(8)
Subsection
63H-7a-403
(2)(b), regarding the charge to maintain the public safety
communications network, is repealed July 1, 2033.
(9)
Subsection
63J-1-602.2(30)
, regarding funding the Enterprise Zone Act, is repealed
December 31, 2026.
(10)
Subsection
63J-1-602.2(46)
, regarding appropriations to the State Tax Commission for
deferral reimbursements, is repealed July 1, 2027.
(11)
Section
63M-7-221
, Expungement working group, is repealed April 30, 2025.
(12)
Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed December 31, 2026.
(13)
Subsection
63N-3a-201(3)(c)
, regarding a county legislative body making certain
findings regarding proposed economic development projects, is repealed July 1, 2027.
Section 46. Section
63N-2-103
is amended to read:
63N-2-103
Effective
05/06/26
. Definitions.
As used in this part:
(1)
(a)
"Business entity" means a person that enters into a written agreement with the
office to initiate a new commercial project in Utah that will qualify the person to
receive a tax credit under Section
59-7-614.2
or
59-10-1107
.
(b)
With respect to a tax credit authorized by the office in accordance with Subsection
63N-2-104.3(2)
, "business entity" includes a nonprofit entity.
(2)
"Commercial or industrial zone" means an area zoned agricultural, commercial,
industrial, manufacturing, business park, research park, or other appropriate business
related use in a general plan that contemplates future growth.
(3)
"Development zone" means an economic development zone created under Section
63N-2-104
.
(4)
"Local government entity" means
:
(a)
a county, city, or town
.
;
(b)
for state-owned land, a development authority statutorily authorized to manage the
land; or
(c)
for development authority-owned land, the development authority.
(5)
"New commercial project" means an economic development opportunity that:
(a)
involves a targeted industry; or
(b)
is located within:
(i)
a county of the third, fourth, fifth, or sixth class; or
(ii)
a municipality that has a population of 10,000 or less and the municipality is
located within a county of the second class.
(6)
"Remote work opportunity" means a new commercial project that:
(a)
does not require a physical office in the state where employees associated with the
new commercial project are required to work; and
(b)
requires employees associated with the new commercial project to:
(i)
work remotely from a location within the state; and
(ii)
maintain residency in the state.
(7)
"Significant capital investment" means an investment in capital or fixed assets, which
may include real property, personal property, and other fixtures related to a new
commercial project that represents an expansion of existing operations in the state or
that increases the business entity's existing workforce in the state.
(8)
"Tax credit" means an economic development tax credit created by Section
59-7-614.2
or
59-10-1107
.
(9)
"Tax credit amount" means the amount the office lists as a tax credit on a tax credit
certificate for a taxable year.
(10)
"Tax credit certificate" means a certificate issued by the office that:
(a)
lists the name of the business entity to which the office authorizes a tax credit;
(b)
lists the business entity's taxpayer identification number;
(c)
lists the amount of tax credit that the office authorizes the business entity for the
taxable year; and
(d)
may include other information as determined by the office.
(11)
"Written agreement" means a written agreement entered into between the office and a
business entity under Section
63N-2-104.2
.
Section 47. Section
63N-3-602
is amended to read:
63N-3-602
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing occupied or reserved for occupancy by households
with a gross household income:
(a)
equal to or less than 80% of the county median gross income for households of the
same size, in certain circumstances as provided in this part; or
(b)
equal to or less than 60% of the county median gross income for households of the
same size, in certain circumstances as provided in this part.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means, for each property tax increment collection period triggered within a
proposed housing and transit reinvestment zone or convention center reinvestment zone
project area, the calendar year prior to the calendar year the property tax increment
begins to be collected for the parcels that are in a project that is triggered for that
collection period.
(4)
"Base year" means:
(a)
(i)
the calendar year in which the committee approves the zone; or
(ii)
a calendar year the committee establishes in approving the zone, which may not
be a calendar year more than five years from the year in which the committee
approves the zone; or
(b)
for a convention center reinvestment zone in a capital city, the year ending December
31, 2023.
(5)
"Bus rapid transit" means a high-quality bus-based transit system that delivers fast and
efficient service that may include dedicated lanes, busways, traffic signal priority,
off-board fare collection, elevated platforms, and enhanced stations.
(6)
"Bus rapid transit station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal that is specifically identified as needed in phase one of a
metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range transit plan:
(a)
along an existing bus rapid transit line; or
(b)
along an extension to an existing bus rapid transit line or new bus rapid transit line.
(7)
"Capital city" means the same as that term is defined in Section
17D-4-102
.
(8)
(a)
"Commuter rail" means a regional passenger rail transit facility operated by a
large public transit district.
(b)
"Commuter rail" does not include a light-rail passenger rail facility of a large public
transit district.
(9)
"Commuter rail station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal, which has been specifically identified as needed in phase one
of a metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range transit plan:
(a)
along an existing commuter rail line;
(b)
along an extension to an existing commuter rail line or new commuter rail line;
(c)
along a fixed guideway extension from an existing commuter rail line; or
(d)
at the landing point of a pedestrian bridge or vehicle bridge extending from an
existing commuter rail station.
(10)
"Convention center" means a convention center owned by a county of the first class
within a city of the first class.
(11)
"Convention center revitalization project" means a project within a city of the first
class within a county of the first class for the revitalization, activation, and
modernization of a convention center and the surrounding area, including projects
meeting the objectives described in Section
63N-3-603.1
.
(12)
"Convention center reinvestment zone" means a convention center reinvestment zone
created under this part.
(13)
(a)
"Developable area" means the portion of land within a housing and transit
reinvestment zone available for development and construction of business and
residential uses.
(b)
"Developable area" does not include portions of land within a housing and transit
reinvestment zone that are allocated to:
(i)
parks;
(ii)
recreation facilities;
(iii)
open space;
(iv)
trails;
(v)
publicly-owned roadway facilities; or
(vi)
other public facilities.
(14)
"Dwelling unit" means one or more rooms arranged for the use of one or more
individuals living together, as a single housekeeping unit normally having cooking,
living, sanitary, and sleeping facilities.
(15)
"Eligible municipality" means a city that:
(a)
(i)
is the county seat of a county of the first class; or
(ii)
a city of the first class located in a county of the first class; and
(b)
has a convention center within the boundary of the city.
(16)
"Enhanced development" means the construction of mixed uses including housing,
commercial uses, and related facilities.
(17)
"Enhanced development costs" means extra costs associated with structured parking
costs, vertical construction costs, horizontal construction costs, life safety costs,
structural costs, conveyor or elevator costs, and other costs incurred due to the increased
height of buildings or enhanced development.
(18)
"First home investment zone" means the same as that term is defined in Section
63N-3-1601
.
(19)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(20)
"Horizontal construction costs" means the additional costs associated with earthwork,
over excavation, utility work, transportation infrastructure, and landscaping to achieve
enhanced development in the housing and transit reinvestment zone.
(21)
"Housing and transit reinvestment zone" means a housing and transit reinvestment
zone created pursuant to this part.
(22)
"Housing and transit reinvestment zone committee" means a housing and transit
reinvestment zone committee created pursuant to Section
63N-3-605
.
(23)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(24)
"Light rail" means a passenger rail public transit system with right-of-way and fixed
rails:
(a)
dedicated to exclusive use by light-rail public transit vehicles;
(b)
that may cross streets at grade; and
(c)
that may share parts of surface streets.
(25)
"Light rail station" means an existing station, stop, or terminal or a proposed station,
stop, or terminal, which has been specifically identified as needed in phase one of a
metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range plan:
(a)
along an existing light rail line; or
(b)
along an extension to an existing light rail line or new light rail line.
(26)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(27)
"Mixed use development" means development with a mix of:
(a)
multi-family residential use; and
(b)
at least one additional land use, which shall be a significant part of the overall
development.
(28)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(29)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(30)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
,
except that the agency may not provide and the person may not receive a direct subsidy.
(31)
"Project" means a housing and transit reinvestment zone or convention center
reinvestment zone created under this part.
(32)
(a)
"Property tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a housing and transit reinvestment zone or convention center
reinvestment zone designated in the applicable reinvestment zone proposal as the
area from which tax increment is to be collected, using the current assessed value
and each taxing entity's current certified tax rate as defined in Section
59-2-924
;
and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Property tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
; or
(iii)
a public library fund levy described in Subsection
9-7-501(2)
.
(33)
"Public transit county" means a county that has created a small public transit district.
(34)
"Public transit hub" means a public transit depot or station where four or more routes
serving separate parts of the county-created transit district stop to transfer riders between
routes.
(35)
"Sales and use tax base year" means:
(a)
for a housing and transit reinvestment zone, a sales and use tax year determined by
the first year pertaining to the tax imposed in Section
59-12-103
after the sales and
use tax boundary for a housing and transit reinvestment zone is established; or
(b)
for a convention center reinvestment zone, a sales and use tax year determined by the
year specified in the approved proposal for a convention center reinvestment zone,
pertaining to the taxes:
(i)
imposed under Section
59-12-103
;
(ii)
imposed by a city of the first class in a county of the first class under Title 59,
Chapter 12, Part 2, Local Sales and Use Tax Act;
(iii)
imposed by a city of the first class in a county of the first class under Section
59-12-402.1
;
(iv)
imposed by a county of the first class under Section
59-12-1102
; and
(v)
imposed by a county of the first class under Title 59, Chapter 12, Part 22, Local
Option Sales and Use Taxes for Transportation Act.
(36)
"Sales and use tax boundary" means:
(a)
for a housing and transit reinvestment zone, a boundary created as described in
Section
63N-3-604
, based on state sales and use tax collection boundaries that
correspond as closely as reasonably practicable to the housing and transit
reinvestment zone boundary; or
(b)
for a convention center reinvestment zone, a boundary created as described in
Section
63N-3-604.1
, based on state sales and use tax collection boundaries that
correspond as closely as reasonably practicable to the convention center reinvestment
zone boundary.
(37)
"Sales and use tax increment" means:
(a)
for a housing and transit reinvestment zone, the difference between:
(i)
the amount of state sales and use tax revenue generated each year following the
sales and use tax base year by the sales and use tax from the area within a housing
and transit reinvestment zone designated in the housing and transit reinvestment
zone proposal as the area from which sales and use tax increment is to be
collected; and
(ii)
the amount of state sales and use tax revenue that was generated from that same
area during the sales and use tax base year; or
(b)
for a convention center reinvestment zone, the difference between:
(i)
the amount of sales and use tax revenue generated each year following the sales
and use tax base year by the sales and use tax from the area within a convention
center reinvestment zone designated in the convention center reinvestment zone
proposal as the area from which sales and use tax increment is to be collected; and
(ii)
the amount of sales and use tax revenue that was generated from that same area
during the sales and use tax base year.
(38)
"Sales and use tax revenue" means:
(a)
for a housing and transit reinvestment zone, revenue that is generated from the tax
imposed under Section
59-12-103
; or
(b)
for a convention center reinvestment zone, revenue that is generated from:
(i)
the sales and use taxes imposed under Section
59-12-103
; and
(ii)
the sales and use taxes:
(A)
imposed by a city of the first class in a county of the first class under Title 59,
Chapter 12, Part 2, Local Sales and Use Tax Act;
(B)
imposed by a city of the first class in a county of the first class under Section
59-12-402.1
;
(C)
imposed by a county of the first class under Section
59-12-1102
; and
(D)
imposed by a county of the first class under Title 59, Chapter 12, Part 22,
Local Option Sales and Use Taxes for Transportation Act.
(39)
"Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(40)
"Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(41)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(42)
"Vertical construction costs" means the additional costs associated with construction
above four stories and structured parking to achieve enhanced development in the
housing and transit reinvestment zone.
Section 48. Section
63N-3-603
is amended to read:
63N-3-603
Effective
05/06/26
. Applicability, requirements, and limitations on a
housing and transit reinvestment zone.
(1)
A housing and transit reinvestment zone proposal created under this part shall
demonstrate how the proposal addresses the following objectives:
(a)
higher utilization of public transit;
(b)
increasing availability of housing, including affordable housing, and fulfillment of
moderate income housing plans;
(c)
promoting and encouraging development of owner-occupied housing;
(d)
improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities;
(e)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(f)
conserving water resources through efficient land use;
(g)
improving air quality by reducing fuel consumption and motor vehicle trips;
(h)
encouraging transformative mixed-use development and investment in transportation
and public transit infrastructure in strategic areas;
(i)
strategic land use and municipal planning in major transit investment corridors as
described in Subsection
10-20-404(2)
;
(j)
increasing access to employment and educational opportunities; and
(k)
increasing access to child care.
(2)
(a)
In order to accomplish the objectives described in Subsection
(1)
, a municipality
or public transit county that initiates the process to create a housing and transit
reinvestment zone as described in this part shall ensure that the proposal for a
housing and transit reinvestment zone includes:
(i)
except as provided in Subsection
(3)
, at least 12% of the proposed dwelling units
within the housing and transit reinvestment zone are affordable housing units,
with:
(A)
up to 9% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 80% of the
county median gross income for households of the same size; and
(B)
at least 3% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 60% of the
county median gross income for households of the same size;
(ii)
except as provided in Subsection
(2)(c)
, a housing and transit reinvestment zone
shall include:
(A)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(B)
an average of at least 50 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential uses;
(iii)
mixed-use development; and
(iv)
a mix of dwelling units to ensure that at least 25% of the dwelling units have
more than one bedroom.
(b)
(i)
If a housing and transit reinvestment zone is phased, a municipality or public
transit county shall ensure that a housing and transit reinvestment zone is phased
and developed to provide the required 12% of affordable housing units in each
phase of development.
(ii)
A municipality or public transit county may allow a housing and transit
reinvestment zone to be phased and developed in a manner to provide more of the
required affordable housing units in early phases of development.
(iii)
A municipality or public transit county shall include in a housing and transit
reinvestment zone proposal an affordable housing plan, which may include deed
restrictions, to ensure the affordable housing required in the proposal will continue
to meet the definition of affordable housing at least throughout the entire term of
the housing and transit reinvestment zone.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, the housing and transit reinvestment zone
shall include:
(i)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(ii)
an average of at least 39 dwelling units per acre within the acreage of the housing
and transit reinvestment zone dedicated to residential uses.
(3)
A municipality or public transit county that, at the time the housing and transit
reinvestment zone proposal is approved by the housing and transit reinvestment zone
committee, meets the affordable housing guidelines of the United States Department of
Housing and Urban Development at 60% area median income is exempt from the
requirement described in Subsection
(2)(a)
.
(4)
(a)
A municipality may only propose a housing and transit reinvestment zone at a
commuter rail station, and a public transit county may only propose a housing and
transit reinvestment zone at a public transit hub, that:
(i)
subject to Subsection
(5)(a)
:
(A)
(I)
except as provided in Subsection
(4)(a)(i)(A)(II)
, for a municipality,
does not exceed a 1/3 mile radius of a commuter rail station;
(II)
for a municipality that is a city of the first or second class that is within a
county of the first or second class, with an opportunity zone created in
accordance with Section 1400Z-1, Internal Revenue Code, does not exceed
a 1/2 mile radius of a commuter rail station located within the opportunity
zone; or
(III)
for a public transit county, does not exceed a 1/3 mile radius of a public
transit hub; and
(B)
has a total area of no more than 125 noncontiguous acres;
(ii)
subject to Section
63N-3-607
, proposes the capture of a maximum of 80% of each
taxing entity's property tax increment above the base year for a term of no more
than 25 consecutive years on each parcel within a 45-year period not to exceed the
property tax increment amount approved in the housing and transit reinvestment
zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than three
property tax increment collection periods for the same project during the
applicable 45-year period.
(b)
A municipality or public transit county may only propose a housing and transit
reinvestment zone at a light rail station or bus rapid transit station that:
(i)
subject to Subsection
(5)
:
(A)
does not exceed
:
(I)
except as provided in Subsection
(4)(b)(i)(A)(II)
, (III), or (4)(e),
a 1/4 mile
radius of a bus rapid transit station or light rail station;
and
(II)
for a municipality that is a city of the first class with a population greater
than 150,000 that is within a county of the first class, a 1/2 mile radius of a
light rail station located in an opportunity zone created in accordance with
Section
1400Z-1, Internal Revenue Code; or
(III)
a 1/2 mile radius of a light rail station located within a master-planned
development of 500 acres or more; and
(B)
has a total area of no more than 100 noncontiguous acres;
(ii)
subject to Subsection
(4)(c)
and Section
63N-3-607
, proposes the capture of a
maximum of 80% of each taxing entity's property tax increment above the base
year for a term of no more than 15 consecutive years on each parcel within a
30-year period not to exceed the property tax increment amount approved in the
housing and transit reinvestment zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than three
property tax increment collection periods for the same project during the
applicable 30-year period.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, if the proposed housing density within the
housing and transit reinvestment zone is between 39 and 49 dwelling units per acre,
the maximum capture of each taxing entity's property tax increment above the base
year is 60%.
(d)
A municipality that is a city of the first class with a population greater than 150,000
in a county of the first class as described in Subsections
(4)(a)(i)(A)(II)
and
(4)(b)(i)(A)(II)
may only propose one housing and transit reinvestment zone within
an opportunity zone.
(e)
(d)
(i)
Subject to Subsection
(4)(e)(ii)
(4)(d)(ii)
, the radius restrictions described
in Subsection
(4)(b)(i)
do not apply, and a housing and transit reinvestment zone
may extend to an area between two
or three
light rail
or bus rapid transit
stations
located within a city of the third class
or fourth class
if the
two
light rail stations
or bus rapid transit stations
are within a .95 mile distance on the same light rail line
or dedicated offset bus lane
.
(ii)
If a housing and transit reinvestment zone is extended to accommodate
two
multiple
light rail stations
or bus rapid transit stations
as described in Subsection
(4)(e)(i)
(4)(d)(i)
:
(A)
the housing and transit reinvestment zone is limited to a total area not to
exceed 100 noncontiguous acres; and
(B)
the housing and transit reinvestment zone may not exceed a 1/4 mile radius
from the light rail
or bus rapid transit
stations or any point on the light rail line
or dedicated offset bus line
between the two stations.
(iii)
If a housing and transit reinvestment zone is extended to accommodate three
light rail or bus rapid transit stations as described in Subsection
(4)(d)(i)
:
(A)
the housing and transit reinvestment zone is limited to a total area not to
exceed 250 noncontiguous acres;
(B)
the housing and transit reinvestment zone may not exceed a one-quarter mile
radius from the light rail or bus rapid transit stations or any point on the light
rail line or dedicated offset bus line between the three stations; and
(C)
the housing and transit reinvestment zone shall be counted as two for purposes
of Subsection
(7)
.
(f)
(e)
If a parcel within the housing and transit reinvestment zone is included as an area
that is part of a project area, as that term is defined in Section
17C-1-102
, and created
under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for
collection unless the project area funds collection period, as that term is defined in
Section
17C-1-102
, has expired.
(5)
(a)
For a housing and transit reinvestment zone for a commuter rail station, if a parcel
is intersected by the relevant radius limitation, the full parcel may be included as part
of the housing and transit reinvestment zone area and will not count against the
limitations described in Subsection
(4)(a)(i)
.
(b)
For a housing and transit reinvestment zone for a light rail or bus rapid transit
station, if a parcel is intersected by the relevant radius limitation, the full parcel may
be included as part of the housing and transit reinvestment zone area and will not
count against the limitations described in Subsection
(4)(b)(i)
.
(c)
A housing and transit reinvestment zone may not be smaller than 10 acres.
(6)
(a)
The notice of commencement of collection of property tax increment required in
Subsection
(4)(a)(iii)
or
(4)(b)(iii)
shall be sent by mail or electronically to the
following entities no later than December 31 of the year before the year for which the
property tax increment collection is proposed to commence:
(i)
the State Tax Commission;
(ii)
the State Board of Education;
(iii)
the state auditor;
(iv)
the auditor of the county in which the housing and transit reinvestment zone is
located;
(v)
each taxing entity affected by the collection of property tax increment from the
housing and transit reinvestment zone; and
(vi)
the Governor's Office of Economic Opportunity.
(b)
The notice described in Subsection
(4)(a)(iii)
or
(4)(b)(iii)
may not be triggered until
the date on which the housing and transit reinvestment zone proposal is approved by
the housing and transit reinvestment zone committee.
(c)
(i)
For a convention center reinvestment zone in a capital city, a municipality or
public infrastructure district may submit a notice of commencement of collection
of property tax increment for each separate parcel or subarea within the
convention center reinvestment zone in a capital city.
(ii)
The collection of property tax increment described in Subsection
(6)(c)(i)
shall
commence no later than five years from the day the convention center
reinvestment zone in a capital city proposal is approved.
(7)
(a)
The maximum number of housing and transit reinvestment zones at light rail
stations, not including a convention center reinvestment zone, is eight in any given
county.
(b)
Within a county of the first class, the maximum number of housing and transit
reinvestment zones at bus rapid transit stations is three.
(c)
Within a county of the first class, the maximum total combined number of housing
and transit reinvestment zones described in Subsections
(7)(a)
and
(b)
and first home
investment zones created under Part 16, First Home Investment Zone Act, is 11.
(8)
(a)
For purposes of this Subsection
(8)
, "entitlement agreement" means:
(i)
a land use application;
(ii)
a rezone petition; or
(iii)
a request, petition, or application to:
(A)
enact or approve a development agreement; or
(B)
to amend or modify a development agreement.
(b)
This Subsection
(8)
applies to a specified county, as defined in Section
17-80-101
,
that has created a small public transit district on or before January 1, 2022.
(c)
To accomplish the objectives described in Subsection
(1)
, an owner of undeveloped
property within an unincorporated county shall have the right to develop and build a
mixed-use development if:
(i)
the owner has submitted an entitlement agreement to the county on or before
December 31, 2022, and is within a 1/3 mile radius of a public transit hub in a
county described in Subsection
(8)(b)
, including parcels that are intersected by the
1/3 mile radius; and
(ii)
the county described in Subsection
(8)(b)
has failed to approve the entitlement
agreement described in Subsection
(8)(c)(i)
by ordinance before December 31,
2022.
(d)
The mixed use development described in Subsection
(8)(c)
shall include the
following:
(i)
(A)
(I)
a maximum number of dwelling units equal to 30 multiplied by the
total acres of developable area within the mixed-use development dedicated
exclusively to residential use; or
(II)
a maximum number of dwelling units equal to 15 multiplied by the total
acres of the mixed-use development; and
(B)
at least 33% of the dwelling units as affordable housing;
(ii)
commercial uses, including office, retail, educational, and healthcare in support of
the mixed-use development constituting no more than 1/3 of the total planned
gross building square footage of the subject parcels; and
(iii)
any other infrastructure element necessary or reasonable to support the
mixed-use development, including:
(A)
parking infrastructure;
(B)
streets;
(C)
sidewalks;
(D)
parks; and
(E)
trails.
(e)
(i)
The mixed-use development described in this Subsection
(8)
may qualify for a
housing and transit reinvestment zone described in Subsection
(4)(a)
.
(ii)
The county described in Subsection
(8)(b)
may propose a housing and transit
reinvestment zone in accordance with this part, if the housing and transit
reinvestment zone includes:
(A)
(I)
an average of at least 30 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential use; or
(II)
a minimum number of 14 dwelling units per acre on average within the
acreage of the housing and transit reinvestment zone; and
(B)
at least 33% of the dwelling units as affordable housing units.
(f)
A county may not take an action or enforce an agreement, ordinance, regulation, or
requirement that prevents or creates development impediments to the development of
a mixed-use development as described in this Subsection
(8)
.
(g)
A county action to approve or implement the development of a mixed-use
development as described in this Subsection
(8)
shall constitute an administrative
action taken by the county and does not require county legislative action.
Section 49. Section
63N-3-604
is amended to read:
63N-3-604
Effective
05/06/26
. Process for a proposal of a housing and transit
reinvestment zone -- Analysis.
(1)
Subject
On or before December 31, 2027, and subject
to approval of the housing and
transit reinvestment zone committee as described in Section
63N-3-605
, in order to
create a housing and transit reinvestment zone, a municipality or public transit county
that has general land use authority over the housing and transit reinvestment zone area,
shall:
(a)
prepare a proposal for the housing and transit reinvestment zone that:
(i)
demonstrates that the proposed housing and transit reinvestment zone will meet
the objectives described in Subsection
63N-3-603(1)
;
(ii)
explains how the municipality or public transit county will achieve the
requirements of Subsection
63N-3-603(2)(a)(i)
;
(iii)
defines the specific transportation infrastructure needs, if any, and proposed
improvements and estimated budgets;
(iv)
defines the boundaries of:
(A)
the housing and transit reinvestment zone; and
(B)
the sales and use tax boundary corresponding to the housing and transit
reinvestment zone boundary, as described in Section
63N-3-610
;
(v)
includes maps of the proposed housing and transit reinvestment zone to illustrate:
(A)
the proposed boundary and radius from a public transit hub;
(B)
proposed housing density within the housing and transit reinvestment zone;
and
(C)
existing zoning and proposed zoning changes related to the housing and transit
reinvestment zone;
(vi)
identifies any development impediments that prevent the development from
being a market-rate investment, including proposed strategies and estimated
budgets for addressing each one;
(vii)
describes the proposed development plan and estimated budgets, including the
requirements described in Subsections
63N-3-603(2)
and
(4)
;
(viii)
establishes a base year and collection period to calculate the property tax
increment within the housing and transit reinvestment zone;
(ix)
establishes a sales and use tax base year to calculate the sales and use tax
increment within the housing and transit reinvestment zone in accordance with
Section
63N-3-610
;
(x)
describes projected maximum revenues generated and the amount of property tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the housing and transit reinvestment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
estimates budgets and evaluates possible benefits to active and public
transportation availability and impacts on air quality;
(xiii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiv)
provides a pro-forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-603(2)
, (3), and (4);
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the housing and transit reinvestment zone
property tax increment and the type of development that is proposed to be
developed with the housing and transit reinvestment zone property tax
increment; and
(C)
provides estimated budgets and construction costs, anticipated revenue,
financing, expenses, and other sources and uses of funds for the project area;
and
(xv)
for a housing and transit reinvestment zone at a commuter rail station, light rail
station, or bus rapid transit station that is proposed and not in public transit service
operation as of the date of submission of the proposal, demonstrates that the
proposed station is:
(A)
included as needed in phase one of a metropolitan planning organization's
adopted long-range transportation plan and in phase one of the relevant public
transit district's adopted long-range plan; and
(B)
reasonably anticipated to be constructed in the near future; and
(b)
submit the housing and transit reinvestment zone proposal to the Governor's Office
of Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality or public transit
county shall study and evaluate possible impacts of a proposed housing and transit
reinvestment zone on parking within the city and housing and transit reinvestment zone.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(b)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(b)
, provide notice
of the proposal to all affected taxing entities, including the Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the housing and transit
reinvestment zone is located; and
(ii)
at the expense of the proposing municipality or public transit county as described
in Subsection
(5)
, contract with an independent entity to perform the financial gap
analysis described in Subsection
(3)(b)
.
(b)
The gap analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality or public transit county absent the proposed
housing and transit reinvestment zone;
(iii)
an evaluation of the proposal to and a determination of the adequacy and
efficiency of the proposal;
(iv)
an evaluation of the proposed increment capture needed to cover the enhanced
development costs associated with the housing and transit reinvestment zone
proposal and enable the proposed development to occur; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in Subsection
63N-3-603(1)
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed housing and transit reinvestment zone as described in Subsection
(3)(a)(i)
,
the State Tax Commission shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the Tax
Commission can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality or public transit county proposing the housing and transit reinvestment
zone may:
(a)
amend the housing and transit reinvestment zone proposal based on the findings of
the analysis described in Subsection
(3)(b)
and request that the Governor's Office of
Economic Opportunity submit the amended housing and transit reinvestment zone
proposal to the housing and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original
housing and transit reinvestment zone proposal to the housing and transit
reinvestment zone committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality or public transit county for the costs of the
gap analysis described in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality or public transit county as dedicated credits to pay for the costs
associated with the gap analysis described in Subsection
(3)(b)
.
(6)
(a)
Beginning January 1, 2028:
(i)
a municipality or public transit county may not propose a housing and transit
reinvestment zone;
(ii)
a municipality or public transit county may amend a housing and transit
reinvestment zone proposal, as described in Subsection
(4)
, if the proposal is
pending review or approval on December 31, 2027; and
(iii)
the Governor's Office of Economic Opportunity may not fulfill the duties
described in Subsection
(3)
or
(5)
in regard to a proposal for a housing and transit
reinvestment zone unless the proposal is pending review or approval on December
31, 2027.
(b)
Subsection
(6)(a)
does not impact housing and transit reinvestment zones that are in
existence on January 1, 2028.
Section 50. Section
63N-3-604.1
is amended to read:
63N-3-604.1
Effective
05/06/26
. Process for proposing a convention center
reinvestment zone.
(1)
To
On or before December 31, 2027, to
create a convention center reinvestment zone
under this part, the Governor's Office of Economic Opportunity shall, after consulting
with and giving notice to the related eligible municipality and county, provide a proposal
for a convention center reinvestment zone to the housing and transit reinvestment zone
committee.
(2)
(a)
The Governor's Office of Economic Opportunity shall ensure that a proposal for
the creation of a convention center reinvestment zone includes the following
information and data that:
(i)
defines the boundary of the proposed convention center reinvestment zone;
(ii)
describes generally the proposed development plan;
(iii)
identifies a base year and collection period to calculate the property tax
increment within the convention center reinvestment zone;
(iv)
specifies a sales and use tax base year to calculate the sales and use tax increment
within the convention center reinvestment zone in accordance with Section
63N-3-610.1
;
(v)
provides estimated project and investment objectives for the convention center
reinvestment zone; and
(vi)
outlines generally the impacts on transportation in and around the proposed
convention center reinvestment zone.
(b)
For a convention center reinvestment zone in a capital city, the proposal described in
Subsection
(2)(a)
shall also provide estimated budgets and construction costs,
anticipated revenue, financing, expenses, and other sources and uses of funds for the
project area.
(c)
The proposal described in Subsection
(2)(b)
shall limit the use of funds to:
(i)
a convention center;
(ii)
a publicly owned entertainment venue;
(iii)
parking; and
(iv)
infrastructure related to the project.
(3)
A proposal by the Governor's Office of Economic Opportunity for a convention center
reinvestment zone shall demonstrate how the information and data provided in the
proposal pursuant to Subsection
(2)
furthers the objectives described in Section
63N-3-603.1
and is in the public interest.
(4)
After submitting the proposal as described in Subsection
(2)
, the Governor's Office of
Economic Opportunity shall provide notice of the proposal to all affected taxing entities,
including the State Tax Commission, cities, counties, school districts, metropolitan
planning organizations, and the county assessor and county auditor of the county in
which the convention center reinvestment zone is located.
(5)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed convention center reinvestment zone as described in Subsection
(4)
, the Tax
Commission shall, within 14 days:
(a)
evaluate the feasibility of administering the tax implications of the proposal; and
(b)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the State Tax
Commission can feasibly administer the proposal.
(6)
Beginning January 1, 2028, the Governor's Office of Economic Opportunity may not
propose, and the committee may not consider, the creation of a convention center
reinvestment zone.
Section 51. Section
63N-3-605
is amended to read:
63N-3-605
Effective
05/06/26
Applies beginning
05/04/22
. Housing and transit
reinvestment zone committee -- Creation.
(1)
For
On or before December 31, 2027, for
any housing and transit reinvestment zone
proposed under this part, or for a first home investment zone proposed in accordance
with Part 16, First Home Investment Zone Act, there is created a housing and transit
reinvestment zone committee with membership described in Subsection
(2)
.
(2)
Each housing and transit reinvestment zone committee shall consist of the following
members:
(a)
one representative from the Governor's Office of Economic Opportunity, designated
by the executive director of the Governor's Office of Economic Opportunity;
(b)
one representative from each municipality that is a party to the proposed housing and
transit reinvestment zone or first home investment zone, designated by the chief
executive officer of each respective municipality;
(c)
a member of the Transportation Commission created in Section
72-1-301
;
(d)
a member of the board of trustees of a large public transit district;
(e)
one individual from the Office of the State Treasurer, designated by the state
treasurer;
(f)
two members designated by the president of the Senate;
(g)
two members designated by the speaker of the House of Representatives;
(h)
one member designated by the chief executive officer of each county affected by the
housing and transit reinvestment zone or first home investment zone;
(i)
two representatives designated by the school superintendent from the school district
affected by the housing and transit reinvestment zone or first home investment zone;
and
(j)
one representative, representing the largest participating local taxing entity, after the
municipality, county, and school district.
(3)
The individual designated by the Governor's Office of Economic Opportunity as
described in Subsection
(2)(a)
shall serve as chair of the housing and transit
reinvestment zone committee.
(4)
(a)
A majority of the members of the housing and transit reinvestment zone
committee constitutes a quorum of the housing and transit reinvestment zone
committee.
(b)
An action by a majority of a quorum of the housing and transit reinvestment zone
committee is an action of the housing and transit reinvestment zone committee.
(5)
(a)
After the Governor's Office of Economic Opportunity receives the results of the
analysis described in Section
63N-3-604
, and after the Governor's Office of
Economic Opportunity has received a request from the submitting municipality or
public transit county to submit the housing and transit reinvestment zone proposal to
the housing and transit reinvestment zone committee, the Governor's Office of
Economic Opportunity shall notify each of the entities described in Subsection
(2)
of
the formation of the housing and transit reinvestment zone committee.
(b)
For a first home investment zone, the housing and transit reinvestment zone
committee shall follow the procedures described in Section
63N-3-1604
.
(6)
(a)
The chair of the housing and transit reinvestment zone committee shall convene a
public meeting to consider the proposed housing and transit reinvestment zone.
(b)
A meeting of the housing and transit reinvestment zone committee is subject to Title
52, Chapter 4, Open and Public Meetings Act.
(7)
(a)
The proposing municipality or public transit county shall present the housing and
transit reinvestment zone proposal to the housing and transit reinvestment zone
committee in a public meeting.
(b)
The housing and transit reinvestment zone committee shall, for a housing and transit
reinvestment zone proposal:
(i)
evaluate and verify whether the elements of a housing and transit reinvestment
zone described in Subsections
63N-3-603(2)
and
(4)
have been met; and
(ii)
evaluate the proposed housing and transit reinvestment zone relative to the
analysis described in Subsection
63N-3-604(2)
.
(c)
The housing and transit reinvestment zone committee shall, for a convention center
reinvestment zone proposal, evaluate and verify whether the objectives of a
convention center reinvestment zone described in Section
63N-3-603.1
have been
met.
(8)
(a)
Subject to Subsection
(8)(b)
, the housing and transit reinvestment zone committee
may:
(i)
(A)
for a housing and transit reinvestment zone, request changes to the housing
and transit reinvestment zone proposal based on the analysis, characteristics,
and criteria described in Section
63N-3-604
; or
(B)
for a convention center reinvestment zone, request changes to the convention
center reinvestment zone proposal based on the characteristics and criteria
described in Sections
63N-3-603.1
and
63N-3-604.1
; or
(ii)
subject to Subsection
(12)
,
vote to approve or deny the proposal.
(b)
Before the housing and transit reinvestment zone committee may approve the
housing and transit reinvestment zone proposal, the municipality or public transit
county proposing the housing and transit reinvestment zone shall ensure that the area
of the proposed housing and transit reinvestment zone is zoned in such a manner to
accommodate the requirements of a housing and transit reinvestment zone described
in this section and the proposed development.
(9)
(a)
If a housing and transit reinvestment zone is approved by the committee:
(a)
(i)
the proposed housing and transit reinvestment zone is established according to
the terms of the housing and transit reinvestment zone proposal;
(b)
(ii)
affected local taxing entities are required to participate according to the terms
of the housing and transit reinvestment zone proposal; and
(c)
(iii)
each affected taxing entity is required to participate at the same rate.
(b)
If a zone is approved by the committee, the proposing municipality or public transit
county shall:
(i)
enter into an agreement with the relevant property owners identifying the density
necessary to implement the approved proposal;
(ii)
enter into an entitlement agreement, development agreement, or participation
agreement with the property owners within the zone as soon as reasonably
possible to implement the approved proposal; and
(iii)
if the proposing municipality or public transit county have not entered into one
or more of the agreements described in Subsection
(9)(b)(ii)
within two years of
the approval of the proposal, submit a written report to the committee describing
the status of:
(A)
the agreement required by Subsection
(9)(b)(ii)
and an explanation of the
status; and
(B)
related land use regulations to implement the approved proposal.
(10)
A housing and transit reinvestment zone proposal may be amended by following the
same procedure as approving a housing and transit reinvestment zone proposal
, except
the proposing municipality or public transit county is not required to submit an
additional pro forma analysis unless requested by the office or the committee
.
(11)
(a)
The approval for a convention center reinvestment zone in a capital city may be
completed with a condition that the relevant municipality also create a public
infrastructure district as provided in Subsection
63N-3-607(8)(b)
.
(b)
The approval described in Subsection
(11)(a)
shall verify that the requirements and
limitations on use of funds is limited to the conditions described under Subsections
63N-3-604.1(2)(b)
and (c).
(12)
(a)
Beginning January 1, 2028, the committee may not approve a proposal for a
housing and transit reinvestment zone, a first home investment zone, or a convention
center reinvestment zone unless the proposal was pending on December 31, 2027.
(b)
Housing and transit reinvestment zones that are in existence on January 1, 2028,
continue to exist and shall comply with the relevant requirements of this part until the
housing and transit reinvestment zone is dissolved.
(c)
First home investment zones that are in existence on January 1, 2028, continue to
exist and shall comply with the relevant requirements of this part until the first home
investment zone is dissolved.
(d)
Convention center reinvestment zones that are in existence on January 1, 2028,
continue to exist and shall comply with the relevant requirements of this part until the
convention center reinvestment zone is dissolved.
Section 52. Section
63N-3-607
is amended to read:
63N-3-607
Effective
05/06/26
. Payment, use, and administration of revenue
from a housing and transit reinvestment zone.
(1)
In accordance with this part:
(a)
a municipality or public transit county may receive and use property tax increment
and housing and transit reinvestment zone funds;
(b)
(i)
a public infrastructure district shall use the funds from a convention center
reinvestment zone in a capital city within or for the benefit of a convention center
reinvestment zone in a capital city; and
(ii)
funds from a convention center reinvestment zone in a capital city may be used
outside of the capital city convention center reinvestment zone if the use meets the
objectives described in Section
63N-3-603.1
and is determined by the board of the
public infrastructure district to be a direct benefit to the convention center
reinvestment zone in a capital city; and
(c)
a municipality or a public infrastructure district may receive and use property tax
increment and convention center reinvestment zone funds for a convention center
reinvestment zone that is not within a capital city.
(2)
(a)
Except as provided in Subsection
(3)
, a county that collects property tax on
property located within a housing and transit reinvestment zone shall, in accordance
with Section
59-2-1365
, distribute to the municipality or public transit county any
property tax increment the municipality or public transit county is authorized to
receive up to the maximum approved by the housing and transit reinvestment zone
committee.
(b)
Property tax increment distributed to a municipality or public transit county in
accordance with Subsection
(2)(a)
is not revenue of the taxing entity or municipality
or public transit county.
(c)
(i)
Property tax increment paid to the municipality or public transit county are
housing and transit reinvestment zone funds and shall be administered by an
agency created by the municipality or public transit county within which the
housing and transit reinvestment zone is located.
(ii)
Before an agency may receive housing and transit reinvestment zone funds from
the municipality or public transit county, the municipality or public transit county
and the agency shall enter into an interlocal agreement with terms that:
(A)
are consistent with the approval of the housing and transit reinvestment zone
committee; and
(B)
meet the requirements of Section
63N-3-603
or, for a convention center
reinvestment zone, the requirements of Section
63N-3-603.1
.
(3)
(a)
A county that collects property tax on property located within a convention center
reinvestment zone shall, in accordance with Section
59-2-1365
, distribute to the
relevant public infrastructure district created by the eligible municipality any
property tax increment the public infrastructure district is authorized to receive up to
the amounts approved by the housing and transit reinvestment zone committee.
(b)
Property tax increment distributed to a public infrastructure district in accordance
with Subsection
(3)(a)
is not revenue of the taxing entity or municipality.
(c)
Property tax increment paid to the public infrastructure district are convention center
reinvestment zone funds and shall be administered by the public infrastructure district
within which the convention center reinvestment zone is located.
(4)
(a)
(i)
A municipality or public transit county and agency shall use housing and
transit reinvestment zone funds within, or for the direct benefit of, the housing and
transit reinvestment zone.
(ii)
A public infrastructure district shall use convention center reinvestment zone
funds within, or for the benefit of, the convention center reinvestment zone.
(b)
If any housing and transit reinvestment zone funds will be used outside of the
housing and transit reinvestment zone, there must be a finding in the approved
proposal for a housing and transit reinvestment zone that the use of the housing and
transit reinvestment zone funds outside of the housing and transit reinvestment zone
will directly benefit the housing and transit reinvestment zone.
(5)
(a)
A municipality or public transit county shall use housing and transit reinvestment
zone funds to achieve the purposes described in Subsections
63N-3-603(1)
and
(2)
,
by paying all or part of the costs of any of the following:
(i)
income targeted housing costs;
(ii)
structured parking within the housing and transit reinvestment zone;
(iii)
enhanced development costs;
(iv)
horizontal construction costs;
(v)
vertical construction costs;
(vi)
property acquisition costs within the housing and transit reinvestment zone;
(vii)
the costs of the municipality or public transit county to create and administer the
housing and transit reinvestment zone, which may not exceed 2% of the total
housing and transit reinvestment zone funds, plus the costs to complete the gap
analysis described in Subsection
63N-3-604(2)
;
or
(viii)
subject to Subsection
(5)(b)
, costs for the construction or expansion of child
care facilities within the boundary of the housing and transit reinvestment zone
.
;
or
(ix)
extraterritorial affordable housing costs as described in Subsection
(5)(d)
.
(b)
A municipality or public transit county may not use more than 1% of the total
housing and transit reinvestment zone funds to pay costs described in Subsection
(5)(a)(viii)
.
(c)
A public infrastructure district shall use convention center reinvestment zone funds
to achieve the purposes described in Section
63N-3-603.1
.
(d)
(i)
As used in this Subsection
(5)(d)
, "extraterritorial affordable housing" means
affordable housing, as affordable housing is defined in Section
63N-3-1601
, that:
(A)
is located within the municipality proposing the housing and transit
reinvestment zone but outside the boundary of the housing and transit
reinvestment zone;
(B)
is part of a development with a density of at least six units per acre;
(C)
is required to be owner occupied for no less than 25 years; and
(D)
has not been issued a building permit by the municipality as of the date of the
approval of the housing and transit reinvestment zone.
(ii)
A municipality or public transit county may use housing and transit reinvestment
zone funds on extraterritorial affordable housing costs if the municipality or
public transit county satisfies the requirement to make a finding that the action
will benefit the housing and transit reinvestment zone, as described under
Subsection
(4)(b)
.
(iii)
One hundred percent of extraterritorial affordable housing shall meet the
affordable housing requirements described in Section
63N-3-1602
.
(6)
Housing and transit reinvestment zone funds may be paid to a participant, if the agency
and participant enter into a participation agreement that requires the participant to utilize
the housing and transit reinvestment zone funds as allowed in this section.
(7)
(a)
Housing and transit reinvestment zone funds may be used to pay all of the costs of
bonds issued by the municipality or public transit county in accordance with Title
17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the
bonds including interest.
(b)
Convention center reinvestment zone funds may be used to pay all of the costs of
debt incurred by the public infrastructure district, including the cost to issue and
repay the debt including interest.
(8)
(a)
A municipality or public transit county may create one or more public
infrastructure districts within the housing and transit reinvestment zone under Title
17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing
and transit reinvestment zone funds to guarantee the payment of public infrastructure
bonds issued by a public infrastructure district.
(b)
An eligible municipality that is a capital city shall create one or more public
infrastructure districts within the convention center reinvestment zone under Title
17D, Chapter 4, Public Infrastructure District Act, and the convention center
reinvestment zone funds may be used to pay all or any portion of debt incurred by the
public infrastructure district, including the cost to issue and repay the debt including
interest.
Section 53. Section
63N-3-608
is amended to read:
63N-3-608
Effective
05/06/26
. Applicability to an existing community
reinvestment project.
(1)
For a housing and transit reinvestment zone created under this part that overlaps any
portion of an existing inactive industrial site community reinvestment project area plan
created in accordance with
Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act
:
(a)
if the community reinvestment project area plan captures less than 80% of the
property tax increment from a taxing entity, or if a taxing entity is not participating in
the community reinvestment project area plan, the housing and transit reinvestment
zone may capture the difference between:
(i)
80%; and
(ii)
the percentage of property tax increment captured pursuant to the community
reinvestment project area plan; and
(b)
if a community reinvestment project area plan expires before the housing and transit
reinvestment zone, the housing and transit reinvestment zone may capture the
property tax increment allocated to the community reinvestment project area plan for
any remaining portion of the term of the housing and transit reinvestment zone and
the base year shall be updated in accordance with Subsection
63N-3-602(4)
.
(2)
For a convention center reinvestment zone created under this part that overlaps any
portion of an existing community reinvestment project area created in accordance with
Title 17C, Limited Purpose Local Government Entities - Community Reinvestment
Agency Act:
(a)
if the community reinvestment project area captures less than 100% of the property
tax increment from a taxing entity, or if a taxing entity is not participating in the
community reinvestment project area, the convention center reinvestment zone may
capture the difference between:
(i)
100%; and
(ii)
the percentage of property tax increment captured pursuant to the community
reinvestment project area for each taxing entity; and
(b)
if a community reinvestment project area plan expires before the convention center
reinvestment zone, the convention center reinvestment zone may capture the property
tax increment allocated to the community reinvestment project area for any
remaining portion of the term of the convention center reinvestment zone with the
base year relating back to the base year established by the community reinvestment
project area.
(3)
A zone that overlaps any portion of an existing community reinvestment project may
capture up to the maximum allowable increment of the increment generated above the
zone base year.
Section 54. Section
63N-3-611
is amended to read:
63N-3-611
Effective
05/06/26
. Boundary adjustments -- Governing law.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
housing and transit reinvestment zone or a convention center reinvestment zone, the
municipality administering the property tax increment collected in the housing and transit
reinvestment zone, or for a convention center reinvestment zone, the Governor's Office of
Economic Opportunity may make corresponding adjustments to the boundary of the housing
and transit reinvestment zone.
(1)
(a)
Subject to the requirements under this part, and after the housing and transit
reinvestment zone committee approves a housing and transit reinvestment zone or a
convention center reinvestment zone proposal in accordance with Section
63N-3-605
,
the office shall consult with the relevant county assessor to determine a boundary
adjustment to a housing and transit reinvestment zone or a convention center
reinvestment zone.
(b)
If an area is excluded from or bisected by the radius requirements described in this
part, a boundary adjustment to include or exclude the area is permitted if:
(i)
the committee or office, if applicable, determines that inclusion or exclusion has a
reasonable nexus to advancing the objectives described in Section
63N-3-603
;
(ii)
the adjustment does not include a parcel that is located entirely outside a one-half
mile radius from a bus rapid transit or light rail station, or a two-third mile radius
from a commuter rail station; and
(iii)
any acreage included in a housing and transit reinvestment zone under this
section is offset by an exclusion of acreage such that the total acreage approved by
the committee does not exceed the maximum in Section
63N-3-603
.
(2)
(a)
Except as provided in Subsection
(2)(b)
, a parcel may only be triggered for
property tax increment collection on the legal parcel boundary drawn at the time the
parcel is triggered for property tax increment collection.
(b)
(i)
A convention center reinvestment zone in a capital city may commence a
property tax increment collection at different times for different parcels or
subareas within the convention center reinvestment zone in a capital city.
(ii)
The property tax increment collection described in Subsection
(2)(b)(i)
shall use
the base year of 2023 and commence no later than five years from the day that the
convention center reinvestment zone in a capital city proposal is approved.
(3)
(a)
A housing and transit reinvestment zone or convention center reinvestment zone
shall be governed by the law in effect on the date the application for the housing and
transit reinvestment zone or convention center reinvestment zone was approved by
the housing and transit reinvestment zone committee.
(b)
Notwithstanding Subsection
(3)(a)
, an approved housing and transit reinvestment
zone proposal submitted before May 1, 2024, shall be governed by the base year
defined in code before January 1, 2023.
Section 55. Section
63N-3-1603
is amended to read:
63N-3-1603
Effective
05/06/26
. Process for a proposal of a first home
investment zone.
(1)
Subject
On or before December 31, 2027, and subject
to approval of the housing and
transit reinvestment zone committee as described in Section
63N-3-1604
, in order to
create a first home investment zone, a municipality that has general land use authority
over the first home investment zone area, shall:
(a)
prepare a proposal for the first home investment zone that:
(i)
demonstrates that the proposed first home investment zone will meet the
objectives described in Subsection
63N-3-1602(1)
;
(ii)
explains how the municipality will achieve the requirements of Subsection
63N-3-1602(2)
;
(iii)
defines the specific infrastructure needs, if any, and proposed improvements;
(iv)
demonstrates how the first home investment zone will ensure:
(A)
sufficient pedestrian access to schools and other areas of community; and
(B)
inclusion of child care facilities and access;
(v)
defines the boundaries of the first home investment zone;
(vi)
includes maps of the proposed first home investment zone to illustrate:
(A)
proposed housing density within the first home investment zone;
(B)
extraterritorial homes relevant to the first home investment zone, including
density of the development of extraterritorial homes; and
(C)
existing zoning and proposed zoning changes related to the first home
investment zone;
(vii)
identifies any development impediments that prevent the development from
being a market-rate investment and proposed strategies for addressing each one;
(viii)
describes the proposed development plan, including the requirements described
in Subsections
63N-3-1602(2)
and
(4)
;
(ix)
establishes the collection period or periods to calculate the tax increment;
(x)
describes projected maximum revenues generated and the amount of tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the first home investment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiii)
evaluates possible benefits to active transportation, public transportation
availability and utilization, street connectivity, and air quality; and
(xiv)
provides a pro forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-1602(2)
and
(4)
; and
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the first home investment zone tax
increment and the type of development that is proposed to be developed with
the first home investment zone tax increment;
(b)
submit the proposal to the relevant school district to discuss the requirements of the
proposal and whether the proposal provides the benefits and achieves the objectives
described in this part; and
(c)
submit the first home investment zone proposal to the Governor's Office of
Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality shall:
(a)
study and evaluate possible impacts of a proposed first home investment zone on
parking and efficient use of land within the municipality and first home investment
zone; and
(b)
include in the first home investment zone proposal the findings of the study
described in Subsection
(2)(a)
and proposed strategies to efficiently address parking
impacts.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(c)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(c)
, provide notice
of the proposal to all affected taxing entities, including the State Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the first home
investment zone is located; and
(ii)
at the expense of the proposing municipality as described in Subsection
(5)
,
contract with an independent entity to:
(A)
perform the gap analysis described in Subsection
(3)(b)
; and
(B)
perform an analysis of the pro-forma described in Subsection
(1)(a)(xiv)(B)
and the feasibility of the proposed development absent the tax increment.
(b)
The gap and pro-forma analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality absent the proposed first home investment zone;
(iii)
an evaluation of the proposal and a determination of the adequacy and efficiency
of the proposal;
(iv)
an evaluation of the proposed tax increment capture needed to cover the system
improvements and project improvements associated with the first home
investment zone proposal and enable the proposed development to occur, and for
the benefit of affordable housing projects; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in Subsection
63N-3-1602(1)
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed first home investment zone as described in Subsection
(3)(a)(i)
, the
municipality, in consultation with the county assessor and the State Tax Commission,
shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the county
assessor can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality proposing the first home investment zone may:
(a)
amend the first home investment zone proposal based on the findings of the analysis
described in Subsection
(3)(b)
and request that the Governor's Office of Economic
Opportunity submit the amended first home investment zone proposal to the housing
and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original first
home investment zone proposal to the housing and transit reinvestment zone
committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality for the costs of the gap analysis described
in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality as dedicated credits to pay for the costs associated with the gap analysis
described in Subsection
(3)(b)
.
(6)
Beginning January 1, 2028:
(a)
a municipality may not propose a first home investment zone;
(b)
a municipality may amend a first home investment zone proposal, as described in
Subsection
(4)
, if the proposal was pending on December 31, 2027; and
(c)
the Governor's Office of Economic Opportunity may not fulfill the duties described
in Subsection
(3)
or
(5)
in regard to a proposal for a first home investment zone
unless the proposal was pending on December 31, 2027.
Section 56. Section
63N-3-1609
is amended to read:
63N-3-1609
Effective
05/06/26
. Boundary adjustments.
(1)
If the relevant county assessor or county auditor adjusts parcel boundaries relevant
to a first home investment zone, the municipality administering the tax increment
collected in the first home investment zone may make corresponding adjustments to the
boundary of the first home investment zone.
(2)
Subject to the requirements under this part, and after the housing and transit
reinvestment zone committee approves a first home investment zone proposal in
accordance with Section
63N-3-1604
, the office shall consult with the relevant county
assessor to determine a boundary adjustment to parcel boundaries relevant to a first
home investment zone.
(3)
A parcel may only be triggered for property tax increment collection on the legal parcel
boundary drawn at the time the parcel is triggered for property tax increment collection.
Section 57. Section
63N-3a-101
is enacted to read:
3a. Coordination of Regional Economic Development Activity
1. General Provisions
63N-3a-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Affordable housing" means:
(a)
for homes that are not owner-occupied, housing occupied or reserved for occupancy
by households with a gross household income equal to or less than 80% of the county
median gross income for households of the same size; or
(b)
(i)
for homes that are owner-occupied, housing occupied or reserved for
occupancy by households with a gross household income equal to or less than
120% of the median gross income for households of the same size in the county in
which the housing is located; or
(ii)
for homes that are owner-occupied, housing that is priced at 80% of the zip code
median home price if:
(A)
the proposal demonstrates that a deviation from the county median home price
will achieve the objectives described in Section
63N-3a-103
; and
(B)
the zip code median home price is based upon county property tax assessment
data.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means:
(a)
the calendar year in which the committee approves a regionally significant
development zone; or
(b)
a calendar year that the committee establishes when the committee approves a
regionally significant development zone, which may not be a calendar year more than
five years from the year in which the committee approves the regionally significant
development zone.
(5)
"Bus rapid transit" means a high-quality bus-based transit system that delivers fast and
efficient service that may include dedicated lanes, busways, traffic signal priority,
off-board fare collection, elevated platforms, and enhanced stations.
(6)
"Bus rapid transit station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal that is specifically identified as needed in phase one of a
metropolitan planning organization's adopted long-range transportation plan:
(a)
along an existing bus rapid transit line; or
(b)
along an extension to an existing bus rapid transit line or new bus rapid transit line.
(7)
"Committee" means the increment financing committee created in Section
63N-3a-102
.
(8)
(a)
"Commuter rail" means a regional passenger rail transit facility operated by a
large public transit district.
(b)
"Commuter rail" does not include a light-rail passenger rail facility of a large public
transit district.
(9)
"Commuter rail station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal, which has been specifically identified as needed in phase one
of a metropolitan planning organization's adopted long-range transportation plan:
(a)
along an existing commuter rail line;
(b)
along an extension to an existing commuter rail line or new commuter rail line;
(c)
along a fixed guideway extension from an existing commuter rail line; or
(d)
at the landing point of a pedestrian bridge or vehicle bridge extending from an
existing commuter rail station.
(10)
"Creating entity" means:
(a)
a municipality; or
(b)
a county.
(11)
(a)
"Developable area" means the portion of land within a zone available for
development and construction of uses that met the relevant objectives described in
Part 3, Specific Provisions for Certain Zones.
(b)
"Developable area" does not include portions of land within a zone intended for
development that are allocated to:
(i)
parks;
(ii)
open spaces;
(iii)
trails;
(iv)
parking;
(v)
roadway facilities; or
(vi)
other public facilities.
(12)
"Dwelling unit" means one or more rooms arranged for the use of one or more
individuals living together, as a single housekeeping unit, with cooking, living, sanitary,
and sleeping facilities.
(13)
"Enhanced development" means the construction of mixed uses including housing,
commercial, recreational, and related facilities.
(14)
"Enhanced development costs" means extra costs associated with structured parking
costs, vertical construction costs, horizontal construction costs, life safety costs,
structural costs, conveyor or elevator costs, and other costs incurred due to the increased
height of buildings or enhanced development.
(15)
"Extraterritorial home" means a dwelling that is included as part of a proposal that:
(a)
is located within the municipality making the proposal but outside the boundary of
the proposed project area;
(b)
is part of a development with a density of at least six units per acre;
(c)
is not located within an existing project area, a housing and transit reinvestment
zone, a first home investment zone, or an area that could be included in a housing and
transit reinvestment zone or a first home investment zone;
(d)
has not been issued a building permit by the municipality as of the date of the
approval of the project area; and
(e)
is required to be owner occupied for no less than 25 years.
(16)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(17)
"High-density residential" means a minimum of 30 residential units per acre.
(18)
"Home" means a dwelling unit.
(19)
"Horizontal construction costs" means the additional costs associated with earthwork,
over excavation, utility work, transportation infrastructure, and landscaping to achieve
enhanced development in a regionally significant development zone.
(20)
"Impacted primary area" means land described in a proposal:
(a)
outside of a proposed zone boundary; and
(b)
that is crucial to one or more aspects of the development of the zone.
(21)
"Increment financing" means a public entity's utilization of:
(a)
property tax increment; or
(b)
any other portion of public revenue that is calculated using a base year and revenue
growth following the base year, if the public revenue is authorized for use by a
committee.
(22)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(23)
"Light rail" means a passenger rail public transit system with right-of-way and fixed
rails:
(a)
dedicated to exclusive use by light-rail public transit vehicles;
(b)
that may cross streets at grade; and
(c)
that may share parts of surface streets.
(24)
"Light rail station" means an existing station, stop, or terminal or a proposed station,
stop, or terminal, which has been specifically identified as needed in phase one of a
metropolitan planning organization's adopted long-range transportation plan:
(a)
along an existing light rail line; or
(b)
along an extension to an existing light rail line or new light rail line.
(25)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(26)
"Mixed use development" means development with a mix of:
(a)
multi-family residential use; and
(b)
at least one additional land use, which shall be a significant portion of the overall
development.
(27)
"Moderate income housing" means residential units where a household whose income
is no more than 80% of the area median income is able to occupy the housing unit
paying no more than 30% of the household's income for gross housing costs, including
utilities.
(28)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(29)
"Notification of increment financing" means a document, physical or electronic,
provided by a regional economic development authority to the office describing the
regional economic development authority's intent to trigger and utilize one or more
forms of increment financing.
(30)
(a)
"Owner occupied" means private real property that is:
(i)
used for a single-family residential purpose; and
(ii)
occupied by the owner of the real property.
(b)
"Owner occupied" includes real property that is used for a multi-family residential
purpose if each dwelling unit on the real property is occupied by the owner of the
dwelling unit.
(31)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(32)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
,
except that the agency may not provide and the person may not receive a direct subsidy.
(33)
"Project" means the enterprise to be pursued through the proposal of a regionally
significant development zone.
(34)
(a)
"Project improvements" means site improvements and facilities that are:
(i)
planned and designed to provide service for development resulting from a
development activity;
(ii)
necessary for the use and convenience of the occupants or users of development
resulting from a development activity; and
(iii)
not identified or reimbursed as a system improvement.
(b)
"Project improvements" does not mean system improvements.
(35)
(a)
"Property tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by all taxing entities,
except as provided in Subsection
(35)(b)
, from within a regionally significant
development zone, using the current assessed value and each taxing entity's
current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Property tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
;
(iii)
a levy imposed by a public infrastructure district as described in Section
17D-4-303
; or
(iv)
a public library fund levy described in Subsection
9-7-501(2)
.
(36)
"Proposal" means a document, physical or electronic, developed by a creating entity:
(a)
outlining the need for the creation of a regionally significant development zone;
(b)
explaining whether the zone is proposed to create:
(i)
a regionally significant transit-oriented development, as described in Section
63N-3a-301
;
(ii)
a regionally significant first home village, as described in Section
63N-3a-302
;
(iii)
a regionally significant economic development opportunity, as described in
Section
63N-3a-303
;
(c)
describing how the relevant objectives would be achieved by the creation of the
regionally significant development zone;
(d)
describing the boundaries of the proposed regionally significant development zone;
(e)
describing the impacted primary area, if any, of a proposed regionally significant
development zone; and
(f)
that is submitted to a committee.
(37)
"Public transit county" means a county that has created a small public transit district.
(38)
"Public transit hub" means a public transit depot or station where four or more routes
serving separate parts of the county-created transit district stop to transfer riders between
routes.
(39)
"Qualified development zone" means the property within a project area, and, if
applicable, the impacted primary area, as approved by the committee.
(40)
"Regional economic development authority" means:
(a)
the Utah Inland Port Authority created in Section
11-58-201
;
(b)
the Point of the Mountain Land Use Authority created in Section
11-59-201
;
(c)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
; or
(d)
the Military Installation Development Authority created in Section
63H-1-201
.
(41)
(a)
"Regionally significant development zone" means an area:
(i)
created as described in Part 2, Creation of Regionally Significant Development
Zones;
(ii)
governed as described in Title 17C, Chapter 6, Regionally Significant
Development Zone Act; and
(iii)
in which a creating entity is able to promote efficient use of transit, housing
affordability, or regional economic growth.
(42)
"Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(43)
(a)
"System improvements" means existing and future public facilities that are
designed to provide services to service areas within the community at large.
(b)
"System improvements" does not mean project improvements.
(44)
"Tax commission" means the State Tax Commission created in Section
59-1-201
.
(45)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(46)
(a)
"Tax increment" means the difference between:
(i)
the amount of tax revenue generated each tax year from a particular revenue
source by all taxing entities within a particular area after an established base year;
and
(ii)
the amount of revenue that would be generated from the same particular revenue
source and from the same particular area during the established base year.
(b)
"Tax increment" includes tax differential, property tax allocation, enhanced property
tax revenue, property tax augmentation, or any other term that meets the definition
described in Subsection
(46)(a)
.
(47)
"Transportation system" means:
(a)
a street, alley, road, highway, pathway, or thoroughfares of any kind, including
connected structures;
(b)
an airport or aerial transit infrastructure;
(c)
a light rail and light rail station;
(d)
a public transit facility; or
(e)
any other modes or forms of conveyance used by the public.
(48)
"Vertical construction costs" means the additional costs associated with construction
above four stories and structured parking to achieve enhanced development in a project
area.
Section 58. Section
63N-3a-102
is enacted to read:
63N-3a-102
Effective
05/06/26
. Increment authorization committee -- Creation.
(1)
For any project proposed under this chapter that requires the use of tax increment, there
is created an increment authorization committee with membership described in
Subsection
(2)
.
(2)
Each increment authorization committee shall consist of the following members:
(a)
the executive director or the executive director's designee;
(b)
the executive director of the Department of Transportation created in Section
72-1-201
or the executive director's designee;
(c)
one individual from the Office of the State Treasurer, designated by the state
treasurer;
(d)
two members designated by the president of the Senate;
(e)
two members designated by the speaker of the House of Representatives;
(f)
one representative representing the largest participating local taxing entity by
population, after the creating entity and other than a water conservancy district, in the
proposed zone;
(g)
one representative from the creating entity; and
(h)
(i)
if a proposal addresses affordable housing, moderate income housing, or
addresses a regionally significant first home village:
(A)
one representative from the office, designated by the executive director, who
works on housing policy; and
(B)
two representatives designated by the school superintendent from the largest
school district by student population affected by the proposal;
(ii)
if a proposal addresses a regionally significant transit-oriented zone, one member
appointed by the governor:
(A)
from the Transportation Committee created in Section
72-1-301
; or
(B)
a member of the board of trustees of a large public transit district;
(iii)
if a proposal addresses a regionally significant economic development
opportunity that is not described in Subsections
(2)(h)(i)
and (ii):
(A)
the director of the Office of Energy Development created in Section
79-6-401
;
and
(B)
any individual with relevant expertise appointed by the governor.
(3)
A majority of committee members constitutes a quorum.
(4)
A majority vote of a quorum constitutes action by the committee.
Section 59. Section
63N-3a-103
is enacted to read:
63N-3a-103
Effective
05/06/26
. Executive
director duties
-- Contracting.
(1)
In addition to the duties described in Section
63N-1a-303
, the executive director shall
coordinate the use of increment financing to achieve the state's long-term housing and
economic development goals while balancing the need of local communities to protect
tax base and continue to provide essential services to a growing population.
(2)
Following the office's evaluation of a proposal, as described in Section
63N-3a-202
, the
executive director shall:
(a)
determine whether the proposal demonstrates broad regional benefits to the state and
the state's residents, including the provision of affordable housing, enhancing
statewide infrastructure, or contributing to economic resilience;
(b)
evaluate the proposal by considering:
(i)
the impact of proposed increment financing on residents; and
(ii)
existing uses of increment in the proposed area; and
(c)
provide the proposal, with the executive director's determination and
recommendation, to the committee for consideration.
(3)
The executive director shall:
(a)
coordinate a committee's evaluation of a proposal; and
(b)
maintain active communication with regional economic development authorities
regarding increment financing.
(4)
(a)
Subject to Subsection
(4)(b)
, the office may enter into a contract with an
independent consultant, regional economic development authority, or political
subdivision with expertise in analyzing economic development opportunities and
managing increment financing to assist the office in the performance of the duties
described in this chapter.
(b)
An independent consultant contracted to assist the office under Subsection
(4)(a)
may not advise the creating entity or any party with a financial stake in the proposed
regionally significant development zone.
Section 60. Section
63N-3a-104
is enacted to read:
63N-3a-104
Effective
05/06/26
. Maximum number of zones per county.
(1)
As used in this section, "increment zone" means:
(a)
a housing and transit reinvestment zone;
(b)
a convention center reinvestment zone;
(c)
a first homes investment zone;
(d)
a home ownership promotion zone;
(e)
a major sporting event venue zone; and
(f)
an electrical energy development zone.
(2)
In any given county:
(a)
the maximum number of increment zones at light rail stations, not including a
convention center reinvestment zone, is eight; and
(b)
the maximum number of regionally significant development zones created as
described in Part 2, Creation of Regionally Significant Development Zones, is eight.
(3)
In addition to the caps described in Subsection
(2)
, within a county of the first class, as
classified under Section
17-60-104
:
(a)
the maximum number of housing and transit reinvestment zones at bus rapid transit
stations is three;
(b)
the maximum total combined number of housing and transit reinvestment zones and
first home investment zones is 11; and
(c)
the maximum total combined number of increment zones, not including a convention
center reinvestment zone, is 14.
Section 61. Section
63N-3a-105
is enacted to read:
63N-3a-105
Effective
05/06/26
. Rulemaking.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules as necessary to fulfill the duties described in this chapter.
Section 62. Section
63N-3a-106
is enacted to read:
63N-3a-106
Effective
05/06/26
. Political Subdivisions Interim Committee
working group.
(1)
The Political Subdivisions Interim Committee shall convene a working group as
described in this section by no later than May 30, 2026, to:
(a)
study tax increment financing; and
(b)
make a recommendation to the Political Subdivisions Interim Committee by no later
than November 1, 2026, regarding caps on the maximum percentage of tax increment
or the maximum amount of revenue to be generated and utilized through tax
increment financing.
(2)
The chairs of the interim committee shall jointly designate members of the working
group described in Subsection
(1)
as follows:
(a)
three legislators from the membership of the interim committee, one of whom shall
be a member of the Senate;
(b)
one individual recommended by the Utah League of Cities and Towns who
represents the interests of municipalities;
(c)
one individual recommended by the Utah Association of Counties who represents the
interests of counties;
(d)
one individual who represents the interests of school districts; and
(e)
one individual who represents the tax commission.
(3)
The office and the Office of Legislative Research and General Counsel shall provide
staff support to the working group.
Section 63. Section
63N-3a-201
is enacted to read:
2. Creation of Regionally Significant Development Zones
63N-3a-201
Effective
05/06/26
. Process to propose -- Advance consultation --
Proposal requirements -- Consultation and public comment required -- Office review.
(1)
(a)
A creating entity may propose the creation of a regionally significant development
zone:
(i)
within the jurisdictional boundaries of the creating entity; and
(ii)
as provided in this section.
(b)
One or more creating entities may jointly propose a regionally significant
development zone, and be treated as a single creating entity for the purposes of this
part, if:
(i)
the creating entities first enter an interlocal agreement governing how the creating
entities shall manage the zone, if approved; or
(ii)
the creating entities include a proposed interlocal agreement the creating entities
will enter upon approval of the zone.
(c)
An interlocal agreement described in Subsection
(1)(b)
shall meet the requirements
of Section
17C-6-102
.
(2)
Before a creating entity may submit a proposal to the office as described in this section:
(a)
the legislative body of the creating entity shall:
(i)
submit a draft of the proposal to every school district that would be impacted by
the creation of a regionally significant development zone, as described in the
proposal, to discuss the requirements of the proposal;
(ii)
provide a school district described in Subsection
(2)(a)(i)
no less than 30 calendar
days to offer the creating entity feedback on the draft proposal; and
(iii)
(A)
hold a public meeting and receive public comment on the proposal to
create a regionally significant development zone; and
(B)
provide notice of the public meeting as a class A notice as described in
Section
63G-30-102
for at least 10 days;
(b)
if the creating entity is a municipality, the municipal legislative body shall:
(i)
submit a draft of the proposal to the county legislative body where the proposed
regionally significant development zone is
located; and
(ii)
provide the county no less than 30 days to offer the creating entity feedback on
the draft proposal, including a finding of whether the county legislative body
considers the proposed project regionally significant; and
(c)
submit a draft of the proposal to every affected local taxing entity that will be
required to participate in the regionally significant development zone at least 30 days
before the creating entity submits a proposal to the office.
(3)
(a)
A creating entity shall include any feedback or public comment received under
Subsection
(2)
in a proposal submitted to the office.
(b)
A creating entity may provide the public entity's response to any feedback or public
comment described in Subsection
(3)(a)
along with the proposal.
(c)
If a county legislative body makes a finding under Subsection
(2)(b)(ii)
that a
proposed project is not regionally significant:
(i)
the municipal creating entity may submit a proposal to the office as described in
this section; and
(ii)
if the proposal is for a regionally significant economic development opportunity
described in Section
63N-3a-303
, the committee may approve the proposal, but
notwithstanding the requirement in Section
63N-3a-203
that all affected taxing
entities participate at the same rate, the county's participation in property tax
increment is limited to a maximum of 40%.
(4)
A creating entity shall submit a proposal to the office in a form and manner determined
by the office.
(5)
A proposal made under this chapter shall:
(a)
demonstrate how the proposed zone addresses:
(i)
for a regionally significant transit-oriented development, the objectives and
requirements described in Section
63N-3a-301
;
(ii)
for a regionally significant first home village, the objectives and requirements
described in Section
63N-3a-302
; or
(iii)
for a regionally significant economic development opportunity, the objectives
and requirements described in Section
63N-3a-303
;
(b)
describe the development impediments and market conditions that render a
development cost prohibitive absent the financial incentives described in this chapter
and for which the creating entity requests approval to utilize in the proposal;
(c)
include a pro forma analysis that includes data showing the cost difference between:
(i)
what type of redevelopment or development could feasibly occur without the
creation of a regionally significant development zone; and
(ii)
the type of redevelopment or development that is proposed to occur with the
creation of a regionally significant development zone and the accompanying
regionally significant development zone revenue; and
(d)
include any other information the office requires by rule.
(6)
A proposal may include a request to capture property tax increment, the entirety of
personal property tax revenue, or both.
(7)
A regionally significant development zone may not be smaller than 10 acres.
(8)
(a)
After receiving a proposal, the office shall:
(i)
provide notice of the proposal to any impacted metropolitan planning
organizations;
(ii)
provide notice of the proposal to the county assessor and county auditor of every
county in which a proposed regionally significant development zone would be
wholly or partially located;
(iii)
evaluate the feasibility of administering the tax implications of the proposal;
(iv)
evaluate the pro forma analysis included in the proposal; and
(v)
following the evaluations described in Subsections
(8)(a)(iii)
and
(iv)
, provide
any findings the office makes to the creating entity.
(b)
In conducting the evaluations described in Subsections
(8)(a)(iii)
and
(iv)
, the office:
(i)
shall consult with the tax commission and the relevant county assessor and county
auditor; and
(ii)
may consult with an independent consultant as described in Section
63N-3a-103
.
(c)
(i)
The office shall provide any findings following the evaluations described in
Subsections
(8)(a)(iii)
and
(iv)
to the creating entity.
(ii)
After receiving the findings described in Subsection
(8)(a)(v)
, the creating entity
may:
(A)
amend the proposal and request the office submit the amended proposal to the
committee; or
(B)
request the office submit the original proposal to the committee.
(9)
If the office determines a proposal meets the requirements of this section, the office
shall:
(a)
notify the creating entity;
(b)
provide the proposal to the executive director for the executive director's evaluation
and recommendation, as described in Section
63N-3a-103
; and
(c)
notify the relevant individuals described in Section
63N-3a-102
that an increment
financing committee is convened to consider a proposal.
Section 64. Section
63N-3a-202
is enacted to read:
63N-3a-202
Effective
05/06/26
. Committee consideration of a proposal.
(1)
The proposing creating entity shall present the proposal to the committee in a public
meeting.
(2)
Before voting to approve or deny a proposal, the committee shall evaluate and verify
whether the proposal adequately addresses relevant objectives and requirements
described in Part 3, Specific Provisions.
(3)
In considering a proposal, a committee may request any information from a creating
entity needed to make a determination about whether to approve or deny a proposal, or
approve a proposal with modifications, including a description of the proposed uses of
funds and how funds will be used to support public projects related to the regionally
significant development zone.
(4)
The committee may:
(a)
request changes to the proposal;
(b)
vote to approve the proposal, with or without modifications to the proposal; or
(c)
vote to deny the proposal.
(5)
If the committee votes to approve the proposal, with or without modifications, the
committee shall:
(a)
fulfill the requirements of Section
63N-3a-203
; and
(b)
establish any parameters described in Section
63N-3a-204
.
Section 65. Section
63N-3a-203
is enacted to read:
63N-3a-203
Effective
05/06/26
. Approval process -- Creation of a regionally
significant development zone -- Boundaries.
(1)
If the committee votes to approve a proposal, as described in Section
63N-3a-202
:
(a)
a regionally significant development zone is created as of the effective date and
subject to the governance requirements described in Section
63N-3a-206
;
(b)
affected local taxing entities are required to participate according to the terms
approved by the committee; and
(c)
subject to Subsection
63N-3a-201(3)(c)
, each affected taxing entity is required to
participate at the same rate.
(2)
(a)
The effective date of a regionally significant development zone is the later of:
(i)
January 1 following the approval of the proposal, if the committee approves the
proposal on or before September 30; or
(ii)
January 1 following the year after the year in which the committee approves the
proposal.
(b)
A creating entity may not trigger the collection of tax increment within a regionally
significant development zone before the effective date.
(3)
In approving a proposal, the committee shall establish:
(a)
the qualified development zone boundary for the purpose of calculating property tax
increment;
(b)
the maximum number of consecutive years a creating entity's agency may collect and
use increment, not to exceed 25 years; and
(c)
the maximum amount of tax increment revenue, in total and from each proposed
source, that may be captured in the regionally significant development zone.
(4)
(a)
In accordance with Section
63N-3a-204
, for any proposal requesting approval of
the use of property tax increment, the committee shall also establish:
(i)
the property tax base year;
(ii)
the percentage of property tax increment allowed to be captured within and used
on behalf of a regionally significant development zone, not to exceed the limits
described in Section
63N-3a-204
; and
(iii)
the maximum amount of property tax increment revenue that an agency may
collect for a regionally significant development zone.
(b)
The base taxable value of land within a regionally significant development zone is
determined as of January 1 of the base year established by the committee under
Subsection
(4)(a)
.
(c)
(i)
Except as provided in Subsection
(4)(c)(ii)
, a creating entity may propose, and a
committee may approve, the diversion of all the revenue attributed to personal
property tax generated within a regionally significant development zone to the
regionally significant development zone for a period not to exceed 25 years.
(ii)
A creating entity proposing a zone described in Part 4, Regionally Significant
Zones with Energy Implications, shall propose the diversion of all the revenue
attributed to personal property tax generated within a regionally significant
development zone to the regionally significant development zone for a period not
to exceed 25 years.
(d)
In accordance with Section
63N-3a-204
and except as provided in Section
63N-3a-403
, for a proposal requesting approval of the use of property tax increment
or personal property tax diversion, the committee shall establish a percentage of
revenue that the creating entity's agency shall transfer to the state treasurer for deposit
into the State Reinvestment Restricted Account created in Section
51-9-1002
, which
shall be at least 5% but no more than 25% of the total annual revenue an agency
receives from property tax sources described in this Subsection
(4)
.
(5)
Within 30 days after the committee approves a proposal, the creating entity shall:
(a)
record with the recorder of the county in which the regionally significant
development zone is located a document containing:
(i)
a description of the land within the regionally significant development zone and, if
applicable, primary project area;
(ii)
the approval date; and
(iii)
the effective date;
(b)
transmit a copy of the description of the land within the regionally significant
development zone and an accurate map or plat indicating the boundaries of the
regionally significant development zone, and if applicable, primary project area to the
Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a copy of the approved regionally significant development zone proposal,
map, and legal description of the regionally significant development zone, and if
applicable, primary project area, to:
(i)
the auditor, recorder, attorney, surveyor, treasurer, and assessor of the county in
which any part of the regionally significant development zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity affected by the
regionally significant development zone;
(iv)
the tax commission; and
(v)
the State Board of Education.
(6)
Within 90 days after the committee approves a proposal, the committee shall provide to
the tax commission:
(a)
a statement that the regionally significant development zone is established under this
part;
(b)
the approval date of the proposal and the effective date of the regionally significant
development zone;
(c)
the qualified development zone boundary, if applicable; and
(d)
any information about the regionally significant development zone requested by the
commission.
Section 66. Section
63N-3a-204
is enacted to read:
63N-3a-204
Effective
05/06/26
. Property tax increment -- Personal property
tax revenue diversion -- Remittance to the State Reinvestment Restricted Account.
(1)
As used in this section, "designated remitting percentage" means the percentage of
property tax increment revenue established by the committee as described in Subsection
63N-3a-203(4)
.
(2)
(a)
A creating entity may propose a qualified development zone boundary that
includes a project area and an impacted primary area.
(b)
The committee may establish a qualified development zone boundary that includes:
(i)
a project area only; or
(ii)
a project area and a proposed impacted primary area.
(3)
A creating entity's agency may receive, remit, and use property tax increment in
accordance with this section and as described in Title 17C, Chapter 6, Regionally
Significant Development Zones Act.
(4)
The creating entity or creating entity's agency:
(a)
may trigger the collection of property tax increment by parcel; and
(b)
shall send notice of commencement of collection of property tax increment to the
following entities by no later than October 1 of the year before the year in which
property tax increment collection is proposed to commence:
(i)
the tax commission;
(ii)
the State Board of Education;
(iii)
the state auditor;
(iv)
the county auditor and county assessor of each county within the qualified
development zone boundary;
(v)
each taxing entity to be affected by collection of property tax within the qualified
development zone boundary; and
(vi)
the office.
(5)
(a)
A county that collects property tax on property located within a qualified
development zone boundary shall, in accordance with Section
59-2-1365
, distribute
to the creating entity's agency:
(i)
the percentage of property tax increment established by the committee as
described in Subsection
63N-3a-203(4)
, not to exceed:
(A)
70% for a regionally significant transit-oriented zone;
(B)
70% for a regionally significant first home village; and
(C)
60% for a regionally significant economic development opportunity; and
(ii)
if applicable, the percentage of personal property tax revenue generated within
the boundary, as established by the committee under Subsection
63N-3a-203(4)
.
(b)
Property tax revenue distributed to a creating entity's agency in accordance with this
Subsection
(5)
:
(i)
is not revenue of the taxing entity, the creating entity, or the creating entity's
agency; and
(ii)
constitutes regionally significant development zone funds and shall be
administered as described in Section
17C-6-203
.
(6)
The creating entity's agency may receive property tax increment within a qualified
development zone boundary for:
(a)
up to 25 total years, subject to any limit established by the committee under
Subsection
63N-3a-203(4)
; and
(b)
no longer than 40 years after the effective date of the regionally significant
development zone.
(7)
No later than March 1, the agency for a regionally significant development zone shall
transfer the established remitting percentage of revenue collected in the previous
calendar year to the state treasurer for deposit into the State Reinvestment Restricted
Account created in Section
51-9-1002
.
(8)
Once the maximum amount of property tax increment has been distributed to the
creating entity's agency, as established by the committee in Subsection
63N-3a-203(4)
,
the county that collects property tax on property located within a qualified development
zone boundary is no longer obligated to distribute property tax increment generated
within the qualified development zone boundary or personal property tax revenue to the
creating entity's agency.
Section 67. Section
63N-3a-205
is enacted to read:
63N-3a-205
Effective
05/06/26
. Compliance with terms of approved proposal
required -- Modifications to a regionally significant development zone -- Boundary
adjustments.
(1)
If a regionally significant development zone is approved by the committee and created
as described in Section
63N-3a-203
:
(a)
the regionally significant development zone is created according to the terms:
(i)
of the approved proposal, or modified approved proposal; and
(ii)
established by the committee as described in this part; and
(b)
the creating entity or the creating entity's agency shall enter into an entitlement
agreement, development agreement, or participation agreement as necessary or
required to implement the approved proposal and any established terms.
(2)
Any aspect of a regionally significant development zone, including the approved use of
zone revenue or the boundary of the qualified development zone, may be amended by
following the same procedure as making a proposal under Section
63N-3a-201
, except
the creating entity is not required to submit an additional pro forma analysis unless
requested by the office or the committee.
(3)
If the relevant county assessor or county auditor adjusts parcel or lot boundaries
relevant to a regionally significant development zone, the creating entity may make
corresponding adjustments to the qualified development zone.
Section 68. Section
63N-3a-206
is enacted to read:
63N-3a-206
Effective
05/06/26
. Triggering increment collection.
In addition to any other notification requirements in this part, a creating entity of a
regionally significant development zone shall notify each affected taxing entity within the zone
at least 90 days before the creating entity triggers a collection period for property tax
increment for a parcel.
Section 69. Section
63N-3a-207
is enacted to read:
63N-3a-207
Effective
05/06/26
. Payment, use, and administration of regionally
significant development zone revenue.
(1)
A creating entity shall designate an agency to:
(a)
administer the regionally significant development zone;
(b)
promote the objectives for the regionally significant development zone; and
(c)
be the custodian of regionally significant development zone revenue, as described in
Title 17C, Chapter 6, Regionally Significant Development Zones Act.
(2)
An agency may share regionally significant development zone revenue with another
governmental entity or a private party as described in this section.
(3)
Before a governmental entity that is not an agency may receive regionally significant
development zone revenue from the creating entity, the creating entity or creating
entity's agency and the governmental entity shall enter into an agreement governing the
use of the revenue, consistent with this chapter and Title 17C, Chapter 6, Regionally
Significant Development Zones Act.
(4)
Before a private party may receive regionally significant development zone revenue, the
creating entity or creating entity's agency and the private party shall enter into an
agreement governing the use of the revenue, consistent with this chapter and Title 17C,
Chapter 6, Regionally Significant Development Zones Act.
(5)
A creating entity's agency shall use and be responsible for regionally significant
development zone revenue as described in Section
17C-6-203
.
(6)
The creating entity of a regionally significant development zone shall be responsible for:
(a)
tracking revenue received by the creating entity on behalf of the regionally
significant development zone; and
(b)
reporting to the county auditor and tax commission if the creating entity receives the
maximum amount of tax increment revenue from any source, as established by the
committee under Section
63N-3a-203
.
Section 70. Section
63N-3a-208
is enacted to read:
63N-3a-208
Effective
05/06/26
. Applicability to an existing project area.
(1)
As used in this section, "maximum allowable increment" means the percent of property
tax increment a regionally significant development zone is authorized to capture and
utilize, as established by the committee under this chapter.
(2)
Except as provided in Subsection
(4)
, if a regionally significant development zone
overlaps an area that is part of a project area, as that term is defined in Section
17C-1-102
, that parcel may not be triggered for tax increment collection unless the
project area funds collection period, as that term is defined in Section
17C-1-102
, has
expired.
(3)
(a)
Except as provided in Subsection
(3)(b)
, a regionally significant development
zone may not overlap a housing and transit reinvestment zone or a first home
investment zone.
(b)
Subject to Subsection
(4)
, a regionally significant development zone may overlap a
housing and transit reinvestment zone or a first home investment zone if:
(i)
the regionally significant development zone does not collect property tax
increment for the area overlapping with the housing and transit reinvestment zone
or the first home investment zone; or
(ii)
the regionally significant development zone does not collect property tax
increment for the area overlapping with the housing and transit reinvestment zone
or the first home investment zone until the collection period for the housing and
transit reinvestment zone's collection of property tax increment or the first home
investment zone's collection of property tax increment has ended.
(4)
(a)
If a community reinvestment project area plan captures less than maximum
allowable increment of the property tax increment from a taxing entity, or if a taxing
entity is not participating in the community reinvestment project area plan, because
the agency and relevant taxing entities agreed to capture a lower percentage or agreed
to exclude a taxing entity from the community reinvestment project area plan,
Subsection
(3)(a)
does not apply.
(b)
If, at the creation of a housing and transit reinvestment zone or a first home
investment zone, the taxing entities agreed that tax increment collection would end
on a certain date or after a certain number of years, Subsection
(3)(b)
does not apply
unless the taxing entities that were involved in the agreement affirmatively agree to
participate in the regionally significant development zone tax increment collection.
(5)
(a)
Except as provided in Subsection
(5)(b)
, a regionally significant development
zone may not overlap project areas created by the:
(i)
Military Installation Development Authority described in Subsection
63H-1-102(17)
;
(ii)
Utah Fairpark Area Investment and Restoration District described in Subsection
11-70-101(24)
; or
(iii)
Utah Inland Port Authority project area described in Subsection
11-58-102(16)
.
(b)
A creating entity may propose, and the committee may approve, a regionally
significant development zone that overlaps with a project area if:
(i)
the regional economic development authority that created the project area consents
to the creation of the regionally significant development zone; and
(ii)
no more than 60% of tax increment is captured and used by the creating entity's
agency and the regional economic development authority in combination in any
given year.
Section 71. Section
63N-3a-301
is enacted to read:
3. Specific Provisions for Certain Zones
63N-3a-301
Effective
05/06/26
. Provisions specific to a regionally significant
transit-oriented development.
(1)
A proposal to create a regionally significant development zone that qualifies as a
regionally significant transit-oriented development, as described in this section, shall
demonstrate how the proposal addresses the following objectives:
(a)
higher utilization of public transit;
(b)
increasing availability of housing, including affordable housing;
(c)
promoting and encouraging development of owner-occupied housing;
(d)
improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities;
(e)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(f)
conserving water resources through efficient land use;
(g)
improving air quality by reducing fuel consumption and motor vehicle trips;
(h)
encouraging mixed-use development and investment in transportation and public
transit infrastructure in strategic areas;
(i)
strategic land use and municipal planning in major transit investment corridors as
described in Subsection
10-20-404(2)
;
(j)
increasing access to employment and educational opportunities; and
(k)
increasing access to child care.
(2)
To accomplish the objectives described in Subsection
(1)
, a creating entity that proposes
a regionally significant transit-oriented development as described in this section shall
ensure that the proposal includes:
(a)
except as provided in Subsection
(3)
, at least 12% of the proposed dwelling units
within the zone are affordable housing units, with:
(i)
up to 9% of the proposed dwelling units occupied or reserved for occupancy by
households with a gross household income equal to or less than 80% of the county
median gross income for households of the same size; and
(ii)
at least 3% of the proposed dwelling units occupied or reserved for occupancy by
households with a gross household income equal to or less than 60% of the county
median gross income for households of the same size; and
(b)
except as provided in Subsection
(4)
, at least 51% of the developable area within a
zone be dedicated to residential uses and:
(i)
an average of at least 50 dwelling units per acre within the acreage of the zone
dedicated to residential uses;
(ii)
mixed-use development within the zone; and
(iii)
a mix of dwelling units to ensure that at least 25% of the dwelling units have
more than one bedroom.
(3)
(a)
If the projects within a regionally significant transit-oriented development are
developed in phases, a creating entity and agency shall ensure that each phase is
developed to provide the required 12% of affordable housing units.
(b)
A creating entity may allow a regionally significant transit development to be phased
and developed in a manner to provide more of the required affordable housing units
in early phases of development.
(c)
A creating entity shall include in a proposal an affordable housing plan, which may
include deed restrictions, to ensure the affordable housing required in the proposal
will continue to meet the definition of affordable housing at least throughout the
entire term of the zone.
(d)
If the creating entity meets the affordable housing guidelines of the United States
Department of Housing and Urban Development at 60% area median income at the
time the regionally significant transit-oriented development proposal is approved by
the committee, the creating entity is exempt from the percentage requirements
described in Subsection
(2)(a)
.
(4)
For a regionally significant transit-oriented development proposed to be located at a
public transit hub or a bus rapid transit station, the regionally significant transit-oriented
development shall include:
(a)
at least 51% of the developable area within a zone as residential uses; and
(b)
an average of at least 50 dwelling units per acre within the acreage of the zone
dedicated to residential uses.
Section 72. Section
63N-3a-302
is enacted to read:
63N-3a-302
Effective
05/06/26
. Provisions specific to a regionally significant
first home village.
(1)
A proposal to create a regionally significant development zone that qualifies as a
regionally significant first home village, as described in this section, shall demonstrate
how the proposal addresses the following objectives:
(a)
improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities, street and path interconnectivity within the
proposed development and connections to surrounding communities, and access to
roadways, public transportation, and active transportation;
(b)
improving availability of housing options;
(c)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(d)
conserving water resources through efficient land use;
(e)
improving air quality by reducing fuel consumption and motor vehicle trips;
(f)
encouraging mixed-use development;
(g)
strategic land use and municipal planning in major transit investment corridors;
(h)
increasing access to employment and educational opportunities;
(i)
increasing access to child care; and
(j)
improving efficiencies in parking and transportation, including walkability of
communities, street and path interconnectivity within the proposed development and
connections to surrounding communities, and access to roadways, public
transportation, and active transportation.
(2)
(a)
To promote the creation of walkable communities, a regionally significant first
home village development shall be anchored by a core of high-density residential and
mixed residential-commercial uses, including opportunities for shopping, child care,
and employment.
(b)
To accomplish the objectives described in Subsection
(1)
, a creating entity shall
ensure that the proposal for a regionally significant first home village includes:
(i)
subject to Subsection
(3)
, a minimum of 30 housing units per acre:
(A)
in at least 51% of the developable area within the first home investment zone;
and
(B)
of which 50%
must
be owner occupied;
(ii)
a mixed use development;
(iii)
a requirement that at least 25% of homes within the zone remain owner occupied
for at least 25 years from the date of original purchase;
(iv)
for homes inside the zone, a requirement that at least 12% of the owner occupied
homes and 12% of the homes that are not owner occupied qualify as affordable
housing; and
(v)
a requirement that at least 20% of the extraterritorial homes are affordable
housing.
(3)
(a)
Subject to Subsection
(3)(b)
, to satisfy the requirements described in Subsection
(2)
, a regionally significant first home village may include an extraterritorial home to
count toward density and owner-occupancy requirements by:
(i)
adding the total number of extraterritorial homes related to the regionally
significant first home village to the total number of homes within the regionally
significant first home village; and
(ii)
dividing the sum described in Subsection
(3)(a)(i)
by a number equal to 51% of
the total number of developable acres within the regionally significant first home
village.
(b)
Extraterritorial homes may account for no more than half of the total homes to
calculate density within a first home village.
(4)
For a condominium building that is part of a regionally significant first home village
development for purposes of meeting the requirement to have a minimum of 30 housing
units per acre, the requirement that 50% of housing units be owner occupied applies
beginning one year after the day on which the condominium building is complete and
receives a certificate of occupancy from the relevant local land use authority.
Section 73. Section
63N-3a-303
is enacted to read:
63N-3a-303
Effective
05/06/26
. Provisions specific to a regionally significant
economic development opportunity.
(1)
A creating entity with general land use authority over an area may submit a proposal
that does not qualify under Section
63N-3a-301
or
63N-3a-302
as a regionally
significant economic development opportunity.
(2)
A proposal for a regionally significant economic development opportunity shall
demonstrate the likelihood that the project will constitute a significant capital
investment, as that term is defined in Section
63N-2-103
.
(3)
If a proposal for a regionally significant economic development opportunity involves a
large load customer, as that term is defined in Section
54-26-101
, or a qualifying data
center, as that term is defined in Section
59-12-102
, the proposal shall comply with Part
4, Regionally Significant Zones with Energy Implications.
(4)
The executive director and office shall establish additional criteria by rule, in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for a
regionally significant economic development opportunity.
Section 74. Section
63N-3a-401
is enacted to read:
4. Regionally Significant Zones with Energy Implications
63N-3a-401
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Incentive" means the same as that term is defined in Section
11-41-201
.
(2)
"Large load data center" means the same as that term is defined in Section
11-41-201
.
(3)
"Reinvestment account" means the State Reinvestment Restricted Account created in
Section
51-9-1002
.
(4)
"Zone" means a regionally significant development zone that includes, or is proposed to
include, a large load data center.
Section 75. Section
63N-3a-402
is enacted to read:
63N-3a-402
Effective
05/06/26
. Incentives prohibited -- Exception.
(1)
(a)
Except as provided in Subsection
(1)(b)
, a county or municipality may not offer
an incentive for a large load data center that is not located within a zone.
(b)
Subsection
(1)(a)
does not apply to:
(i)
a project area established before May 6, 2027; or
(ii)
an agreement between a county or municipality and a private entity that was
executed before May 6, 2027.
(2)
In addition to the requirements described in Part 2, Creation of Regionally Significant
Development Zones, a creating entity that proposes a zone shall include in the proposal:
(a)
a description of the proposed boundaries of the zone;
(b)
an assessment of existing electrical energy infrastructure within and proximate to the
proposed zone;
(c)
a development plan that includes:
(i)
anticipated infrastructure improvements;
(ii)
projected economic benefits to the county or municipality; and
(iii)
evidence of local support, as applicable; and
(d)
any other information required by the committee.
(3)
A proposal for a zone described in this part:
(a)
shall include the diversion of all personal property tax revenue generated within the
zone, as described in Subsection
63N-3a-203(4)(c)(ii)
; and
(b)
may include a request to:
(i)
capture up to 60% of the property tax increment generated within the zone; and
(ii)
divert up to 100% of personal property tax revenue generated within the zone.
(4)
A proposed zone may not overlap with:
(a)
a project area designated by a community reinvestment agency; or
(b)
a project area created by the Utah Inland Port Authority or the Military Installation
Development Authority.
Section 76. Section
63N-3a-403
is enacted to read:
63N-3a-403
Effective
05/06/26
. Committee consideration of a zone with energy
implications.
(1)
The committee shall approve an application for a zone designation if the application
demonstrates that:
(a)
the proposed zone includes land suitable for a large load data center based on:
(i)
access to electrical energy resources; and
(ii)
adequate water supply; and
(b)
the proposed development plan:
(i)
aligns with the state's regional and statewide economic development objectives;
(ii)
includes realistic time
lines and milestones;
(iii)
identifies specific infrastructure improvements; and
(iv)
quantifies projected economic benefits to the residents who live near the zone.
(2)
(a)
The committee shall establish the percentage of property tax increment a
regionally significant development zone is authorized to capture and utilize as
described in Subsection
63N-3a-203(4)
, including establishing the percentage of
property tax increment that shall be deposited into the reinvestment account.
(b)
If the committee approves a proposal to divert personal property tax revenue, the
committee shall establish:
(i)
the percentage of personal property tax revenue that shall be diverted to the county
or municipality that creates the zone; and
(ii)
the remitting percentage that the county treasurer shall deposit into the
reinvestment account.
(c)
The remitting percentage of property tax increment revenue for a zone described in
this part is established in Subsection
(3)
.
(3)
Beginning January 1 following the designation of a zone as described in this section, the
county treasurer shall:
(a)
transfer the percentage, established by the committee under Subsection
(2)(b)(i)
, of
revenue attributed to personal property tax within the zone to the agency managing
the zone;
(b)
transfer the remitting percentage, established by the committee under Subsection
(2)(b)(ii)
, of revenue attributed to personal property tax within the zone into the
reinvestment account;
(c)
transfer the percentage of property tax increment, as established by the committee
under Subsection
(2)(a)
, generated within the zone to the zone's creating entity;
(d)
deposit the percentage of tax increment established under Subsection
(2)(a)
for
deposit into the reinvestment account into the reinvestment account; and
(e)
make the distributions required under this Subsection
(3)
:
(i)
at the same time as regular annual property tax distributions; and
(ii)
using the same method as other property tax distributions.
(4)
A county or municipality that receives revenue under Subsection
(3)
may:
(a)
transfer revenue to the agency managing the zone, to be used as regionally
significant development zone revenue as described in Title 17C, Chapter 6,
Regionally Significant Development Zones Act;
(b)
transfer revenue to a regional economic development authority with a project area
that overlaps the zone, as described in Subsection
63N-3a-208(7)(b)
, in accordance
with an agreement between the county or municipality and the regional economic
development authority;
(c)
subject to Subsection
(5)
, use the revenue to provide an incentive;
(d)
use the revenue to facilitate infrastructure development, including electrical energy
infrastructure development and water infrastructure development; and
(e)
use the revenue to support workforce development programs within the county or
municipality.
(5)
(a)
Beginning May 6, 2027, a county or municipality, or a regional economic
development authority that shares zone revenue with a county or municipality, may
only provide an incentive to a large load data center from the revenue the county or
municipality receives, or that is shared with the regional economic development
authority, of up to 80% of the diverted personal property tax revenue as described
under Subsection
(3)
.
(b)
Notwithstanding Subsection
(5)(a)
:
(i)
a county that levies the county energy excise tax authorized in Section
59-35-201
may offer up to 80% of the revenue the county collects annually from the county
energy excise tax as an incentive for a large load data center, as described in
Section
11-41-202
; and
(ii)
a municipality that levies the municipal energy tax authorized in Title 10, Chapter
1, Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the
revenue generated by the municipal energy tax as an incentive to a large load data
center, as described in Section
11-41-202
.
(6)
Nothing in this section authorizes a political subdivision other than one described in
Subsection
(4)
or (5) to offer an incentive to a large load data center, as described in
Title 11, Chapter 41, Part 2, Prohibition on Tax Increment Incentives for Large Load
Data Centers Act.
Section 77. Section
63N-3a-501
is enacted to read:
5. Reporting
63N-3a-501
Effective
05/06/26
. Reporting.
(1)
After the effective date of a regionally significant development zone, as described in
Section
63N-3a-203
, the creating entity shall provide a written report, no later than
August 1, on the creating entity's and creating entity's agency's activities to implement
the objectives of the regionally significant development zone to the executive director.
(2)
The executive director shall annually provide a written report, no later than October 1,
summarizing all reports received under Subsection
(1)
and including any
recommendations to the Legislature for statutory changes to this chapter, to the
Economic Development and Workforce Services Interim Committee.
Section 78. Section
79-6-1104
is amended to read:
79-6-1104
Effective
05/06/26
. Electrical energy development zones -- Property
tax differential.
(1)
As used in this section:
(a)
"Base taxable value" means the value of property within an electrical energy
development zone, as shown on the assessment roll last equalized before the creation
of the electrical energy development zone.
(b)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(c)
"Community reinvestment project area" means the same as that term is defined in
Section
17C-1-102
.
(d)
"Municipal power project" means an electrical energy project that:
(i)
is operated by or on behalf of a municipality; and
(ii)
exclusively serves customers within that municipality's jurisdictional boundaries.
(e)
"Property tax differential" means the difference between:
(i)
the amount of property tax revenues generated each tax year by all taxing entities
from an electrical energy development zone, using the current assessed value of
the property; and
(ii)
the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
(f)
"
State land use
Regional economic development
authority" means:
(i)
the Utah Inland Port Authority created in Section
11-58-201
;
(ii)
the Military Installation Development Authority created in Section
63H-1-201
;
(iii)
the School and Institutional Trust Lands Administration created in Section
53C-1-201
; or
(iv)
any other land use authority created by the state that has jurisdiction over state
lands.
(2)
(a)
Except as provided in Subsection
(2)(b)
, a county or municipality may not offer
financial incentives for a baseload electrical energy project that is not located within
a designated electrical energy development zone.
(b)
Subsection
(2)(a)
does not apply to:
(i)
financial incentives offered for:
(A)
a municipal power project;
or
(B)
an electrical energy project that exclusively utilizes intermittent resources; or
(C)
an electrical energy project that is not a nuclear energy project; or
(ii)
an electrical energy project for which a project area plan has been approved
before July 1, 2026.
(3)
A county or municipality may:
(a)
pass a resolution declaring an intent to establish within the county or municipality
boundaries an energy development zone;
(b)
enter into an interlocal agreement with the council outlining each parties'
responsibilities relating to an energy development zone; and
(c)
apply to the council for the designation of an electrical energy development zone by
submitting:
(i)
a description of the proposed boundaries of the electrical energy development
zone;
(ii)
an assessment of existing electrical energy infrastructure within and proximate to
the proposed electrical energy development zone;
(iii)
a development plan that includes:
(A)
proposed electrical energy development projects;
(B)
anticipated infrastructure improvements;
(C)
projected economic benefits to the county; and
(D)
evidence of local support including any interlocal agreement entered into
between the county or municipality and the council, as applicable;
(iv)
if the applicant is a municipality, evidence of coordination with the county in
which the proposed electrical energy development zone is located, including any
interlocal agreement entered into between the county or municipality and the
council, as applicable;
(v)
if the applicant is a county and any portion of the proposed electrical energy
development zone is within the boundaries of a municipality, evidence of an
agreement with the municipality regarding the establishment of the electrical
energy development zone; and
(vi)
any other information required by the council.
(4)
A
state land use
regional economic development
authority may:
(a)
propose an electrical energy development zone within lands under
its
the regional
economic development authority's
jurisdiction; and
(b)
apply to the council for the designation of an electrical energy development zone by
submitting:
(i)
a description of the proposed boundaries of the electrical energy development
zone;
(ii)
an assessment of existing electrical energy infrastructure within and proximate to
the proposed electrical energy development zone;
(iii)
a development plan that includes:
(A)
proposed electrical energy development projects;
(B)
anticipated infrastructure improvements; and
(C)
projected economic benefits;
(iv)
evidence that the proposed zone is consistent with applicable land use plans and
regulations; and
(v)
any other information required by the council.
(5)
The council shall:
(a)
approve an application for electrical energy development zone designation if the
application demonstrates:
(i)
the proposed electrical energy development zone includes land suitable for
electrical energy development based on:
(A)
access to electrical energy resources;
(B)
proximity to existing or planned transmission infrastructure;
(C)
adequate transportation access; and
(D)
sufficient land area for proposed development; and
(ii)
the development plan:
(A)
aligns with state energy policy under Section
79-6-301
;
(B)
includes realistic timelines and milestones;
(C)
identifies specific infrastructure improvements; and
(D)
quantifies projected economic benefits;
(b)
make a determination on an application within 60 days of submission;
(c)
provide written notice to the county or municipality explaining the basis for approval
or denial;
(d)
if an electrical energy development zone overlaps with an area designated by a
community reinvestment agency as a community reinvestment project area as of May
7, 2025, enter into an agreement with the community reinvestment agency to
determine the percentage division of the property tax differential between:
(i)
the Electrical Energy Development Investment Fund; and
(ii)
the community reinvestment agency; and
(e)
if an electrical energy development zone overlaps with an inland port project, enter
into an agreement with the Utah Inland Port Authority to determine the percentage
division of the property tax differential between:
(i)
the Electrical Energy Development Investment Fund; and
(ii)
the Utah Inland Port Authority created in Section
11-58-201
.
(6)
Within 30 days after the council designates an electrical energy development zone:
(a)
the county auditor shall certify to the council the base taxable value of property
within the electrical energy development zone; and
(b)
the county shall transmit to the council copies of the property tax assessment rolls for
all property within the electrical energy development zone.
(7)
(a)
Each year, the county auditor shall:
(i)
determine the amount of the property tax differential for the electrical energy
development zone by comparing:
(A)
the current assessed value of property within the electrical energy
development zone; and
(B)
the base taxable value of property within the electrical energy development
zone;
(ii)
inform the county treasurer of the property tax differential amount; and
(iii)
provide notice to the council of the amount calculated under this Subsection
(7)(a)
.
(b)
The county treasurer shall transfer the property tax differential to the council for
deposit into the Electrical Energy Development Investment Fund created in Section
79-6-1105
, subject to any agreements entered into under Subsections
(5)(d)
and
(5)(e)
.
(c)
The county treasurer shall make distributions required under this section:
(i)
at the same time as regular annual property tax distributions; and
(ii)
using the same method as other property tax distributions.
(8)
For property tax differential not subject to Subsection
(5)(d)
the council may enter into
agreements with taxing entities regarding the allocation of the property tax differential.
Section 79.
Repealer.
Title.
Section 80.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 81.
Retrospective operation.
Section
63N-3-605
Effective
05/06/26
Applies beginning
05/04/22
has retrospective
operation to
May 4, 2022
.
Section 82.
Coordinating H.B. 507 with H.B. 475.
If H.B. 507, State Coordination of Regional and Local Economic Development Projects
Amendments, and H.B. 475, Development Planning and Coordination Amendments, both pass
and become law, the Legislature intends that, on May 6, 2026, Subsection 63G-2-206(4)
enacted in H.B. 507 be amended to read:
"(4) A record that is classified as protected as economic development information under
Subsection 63G-2-305(2)(b):
(a) may be provided by the governmental entity that possesses the record and classified the
record as protected to another governmental entity in lieu of the second governmental entity
entering into a nondisclosure agreement with the person that requested the record be treated as
protected under Section 63G-2-309;
(b) may be shared with the following entities when the entities are considering an economic
development project:
(i) the Governor's Office of Economic Development;
(ii) the Utah Inland Port Authority created in Section 11-58-201;
(iii) the Military Installation Development Authority created in Section 63H-1-201;
(iv) the Point of the Mountain State Land Authority created in Section 11-59-201;
(v) the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201;
(vi) the Economic Development Council created in Section 63N-1a-501;
(vii) a county where the economic development opportunity may take place or be sited;
and
(viii) a municipality where the economic development opportunity may take place or be
sited;
(c) remains protected when shared as described in this Subsection (4); and
(d) shall be treated as a protected record by any governmental entity that receives the record
in accordance with this Subsection (4).".
3-12-26 1:16 PM