Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 274 (2015GS)

Sponsor

Sen. Stevenson, J.

Final action

Governor Signed 3/30/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends definitions;
• amends certain condominium ownership provisions within a project area;
• amends certain public notice requirements for a budget hearing of the military installation development authority; and
• makes technical changes.

Every vote on this bill

Bill text

MILITARY INSTALLATION DEVELOPMENT AUTHORITY
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor: 
Brad L. Dee
LONG TITLE
General Description:
This bill modifies the Military Installation Development Authority Act.
Highlighted Provisions:
This bill:
▸ amends definitions;
▸ amends certain condominium ownership provisions within a project area;
▸ amends certain public notice requirements for a budget hearing of the military
installation development authority; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
63H-1-102
, as last amended by Laws of Utah 2014, Chapters 183 and 270
63H-1-201
, as last amended by Laws of Utah 2013, Chapter 246
63H-1-202
, as last amended by Laws of Utah 2014, Chapter 183
63H-1-405
, as enacted by Laws of Utah 2009, Chapter 92
63H-1-501
, as last amended by Laws of Utah 2014, Chapter 183
63H-1-502
, as last amended by Laws of Utah 2013, Chapter 362
63H-1-602
, as last amended by Laws of Utah 2010, Chapter 9
63H-1-701
, as last amended by Laws of Utah 2010, Chapter 90
63H-1-703
, as enacted by Laws of Utah 2007, Chapter 23
63H-1-705
, as enacted by Laws of Utah 2007, Chapter 23
63H-1-706
, as enacted by Laws of Utah 2009, Chapter 92
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63H-1-102
 is amended to read:
63H-1-102.
Definitions.
As used in this chapter:
(1) "Authority" means the Military Installation Development Authority, created under
Section 
63H-1-201
.
(2) "Base taxable value" means:
(a) for military land or other land that was exempt from a property tax at the time that a
project area was created that included the military land or other land, a taxable value of zero; or
(b) for private property that is included in a project area, the taxable value of the
property within any portion of the project area, as designated by board resolution, from which
[
tax increment
] 
the property tax allocation
 will be collected, as shown upon the assessment roll
last equalized before the year in which the authority issues a building permit for a building
within that portion of the project area.
(3) "Board" means the governing body of the authority created under Section
63H-1-301
.
(4) (a) "Dedicated tax collections" means the property tax that remains after the
authority is paid the [
tax increment
] 
property tax allocation
 it is entitled to receive under
Subsection 
63H-1-501
(1), for a property tax levied by:
(i) a county, including a district the county has established under Subsection 
17-34-3
(2)
to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
Areas; or
(ii) an included municipality.
(b) "Dedicated tax collections" does not include a county additional property tax or
multicounty assessing and collecting levy imposed in accordance with Section 
59-2-1602
.
(5) (a) "Development" means an activity occurring on land within a project area that is
owned or operated by the military, the authority, another public entity, or a private entity.
(b) "Development" includes the demolition, construction, reconstruction, modification,
expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
recreational amenity.
(6) "Development project" means a project to develop land within a project area.
(7) "Elected member" means a member of the authority board who:
(a) is a mayor or member of a legislative body appointed under Subsection
63H-1-302
(2)(b); or
(b) (i) is appointed to the authority board under Subsection 
63H-1-302
(2)(a) or (3); and
(ii) concurrently serves in an elected state, county, or municipal office.
(8) "Included municipality" means a municipality, some or all of which is included
within a project area.
(9) (a) "Military" means a branch of the armed forces of the United States, including
the Utah National Guard.
(b) "Military" includes, in relation to property, property that is occupied by the military
and is owned by the government of the United States or the state.
[
(9)
] 
(10)
 "Military Installation Development Authority energy tax" or "MIDA energy
tax" means the tax levied under Section 
63H-1-204
.
[
(10)
] 
(11)
 "Military land" means land or a facility, including leased land or a leased
facility, that is part of or affiliated with a base, camp, post, station, yard, center, or installation
under the jurisdiction of the [
U.S.
] 
United States
 Department of Defense or the Utah National
Guard.
[
(11)
] 
(12)
 "Municipal energy tax" means a municipal energy sales and use tax under
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
[
(12)
] 
(13)
 "Municipal services revenue" means revenue that the authority:
(a) collects from the authority's:
(i) levy of a municipal energy tax;
(ii) levy of a MIDA energy tax;
(iii) levy of a telecommunications tax;
(iv) imposition of a transient room tax; and
(v) imposition of a resort communities tax;
(b) receives under Subsection 
59-12-205
(2)(b)(ii); and
(c) receives as dedicated tax collections.
[
(13)
] 
(14)
 "Municipal tax" means a municipal energy tax, MIDA energy tax,
telecommunications tax, transient room tax, or resort communities tax.
[
(14)
] 
(15)
 "Project area" means the land, including military 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.
[
(15)
] 
(16)
 "Project area budget" means a multiyear projection of annual or cumulative
revenues and expenses and other fiscal matters pertaining to a project area that includes:
(a) the base taxable value of property in the project area;
(b) the projected [
tax increment
] 
property tax allocation
 expected to be generated
within the project area;
(c) the amount of the [
tax increment
] 
property tax allocation
 expected to be shared with
other taxing entities;
(d) the amount of the [
tax increment
] 
property tax allocation
 expected to be used to
implement the project area plan, including the estimated amount of the [
tax increment
]
property tax allocation
 to be used for land acquisition, public improvements, infrastructure
improvements, and loans, grants, or other incentives to private and public entities;
(e) the [
tax increment
] 
property tax allocation
 expected to be used to cover the cost of
administering the project area plan;
(f) if the [
tax increment
] 
property tax allocation
 is to be collected at different times or
from different portions of the project area, or both:
(i) (A) the tax identification numbers of the parcels from which the [
tax increment
]
property tax allocation
 will be collected; or
(B) a legal description of the portion of the project area from which the [
tax increment
]
property tax allocation
 will be collected; and
(ii) an estimate of when other portions of the project area will become subject to
collection of the [
tax increment
] 
property tax allocation
; and
(g) for property that the authority owns or leases and expects to sell or sublease, the
expected total cost of the property to the authority and the expected selling price or lease
payments.
[
(16)
] 
(17)
 "Project area plan" means a written plan that, after its effective date, guides
and controls the development within a project area.
[
(17)
] 
(18)
 (a) "Property tax" includes a privilege tax, except as described in
Subsection [
(17)
] 
(18)
(b), and each levy on an ad valorem basis on tangible or intangible
personal or real property.
(b) "Property tax" does not include a privilege tax on the taxable value attributable to a
portion of a facility leased to the military for a calendar year when:
(i) a lessee of military land has constructed a facility on the military land that is part of
a project area;
(ii) the lessee leases space in the facility to the military for the entire calendar year; and
(iii) the lease rate paid by the military for the space is $1 or less for the entire calendar
year, not including any common charges that are reimbursements for actual expenses.
(19) "Property tax allocation" means the difference between:
(a) the amount of property tax revenues generated each tax year by all taxing entities
from the area within a project area designated in the project area plan as the area from which
the property tax allocation is to be collected, using the current assessed value of the property;
and
(b) the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
[
(18)
] 
(20)
 "Public entity" means:
(a) the state, including each department or agency of the state; or
(b) a political subdivision of the state, including a county, city, town, school district,
local district, special service district, or interlocal cooperation entity.
[
(19)
] 
(21)
 (a) "Publicly owned infrastructure and improvements" means infrastructure,
improvements, facilities, or buildings that benefit the public and are:
(i) publicly owned by the military, the authority, or another public entity;
(ii) owned by a utility; or
(iii) publicly maintained or operated by the military, the authority, or another public
entity.
(b) "Publicly owned infrastructure and improvements" includes:
(i) facilities, lines, or systems that provide water, chilled water, steam, sewer, storm
drainage, natural gas, electricity, or telecommunications; and
(ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, and public transportation facilities.
[
(20)
] 
(22)
 "Remaining municipal services revenue" means municipal services revenue
that the authority has not spent during its fiscal year for municipal services as provided in
Subsection 
63H-1-503
(1).
[
(21)
] 
(23)
 "Resort communities tax" means a sales and use tax imposed under Section
59-12-401
.
[
(22)
] 
(24)
 "Taxable value" means the value of property as shown on the last equalized
assessment roll as certified by the county assessor.
[
(23) "Tax increment" means the difference between:
]
[
(a) the amount of property tax revenues generated each tax year by all taxing entities
from the area within a project area designated in the project area plan as the area from which
the tax increment is to be collected, using the current assessed value of the property; and
]
[
(b) the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
]
[
(24)
] 
(25)
 "Taxing entity" means a public entity that levies a tax on property within a
project area.
[
(25)
] 
(26)
 "Telecommunications tax" means a telecommunications license tax under
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
[
(26)
] 
(27)
 "Transient room tax" means a tax under Section 
59-12-352
.
Section 2. Section 
63H-1-201
 is amended to read:
63H-1-201.
Creation of military installation development authority -- Status and
powers of authority -- Limitation.
(1) There is created a military installation development authority.
(2) The authority is:
(a) an independent, nonprofit, separate body corporate and politic, with perpetual
succession and statewide jurisdiction, whose purpose is to facilitate the development of
military land in a project area;
(b) a political subdivision of the state; and
(c) a public corporation, as defined in Section 
63E-1-102
.
(3) The authority may:
(a) as provided in this chapter, facilitate the development of land within one or more
project areas, including the ongoing operation of facilities within a project area;
(b) sue and be sued;
(c) enter into contracts generally;
(d) buy, obtain an option upon, or otherwise acquire any interest in real or personal
property:
(i) in a project area; or
(ii) outside a project area for publicly owned infrastructure and improvements, if the
board considers the purchase, option, or other interest acquisition to be necessary for fulfilling
the authority's development objectives;
(e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(f) enter into a lease agreement on real or personal property, either as lessee or lessor:
(i) in a project area; or
(ii) outside a project area, if the board considers the lease to be necessary for fulfilling
the authority's development objectives;
(g) provide for the development of land within a project area under one or more
contracts;
(h) exercise powers and perform functions under a contract, as authorized in the
contract;
(i) exercise exclusive police power within a project area to the same extent as though
the authority were a municipality, including the collection of regulatory fees;
(j) receive [
tax increment
] 
the property tax allocation
 and other taxes and fees as
provided in this chapter;
(k) accept financial or other assistance from any public or private source for the
authority's activities, powers, and duties, and expend any funds so received for any of the
purposes of this chapter;
(l) borrow money, contract with, or accept financial or other assistance from the federal
government, a public entity, or any other source for any of the purposes of this chapter and
comply with any conditions of the loan, contract, or assistance;
(m) issue bonds to finance the undertaking of any development objectives of the
authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
(n) hire employees, including contract employees;
(o) transact other business and exercise all other powers provided for in this chapter;
(p) enter into a development agreement with a developer of land within a project area;
(q) enter into an agreement with a political subdivision of the state under which the
political subdivision provides one or more municipal services within a project area;
(r) enter into an agreement with a private contractor to provide one or more municipal
services within a project area;
(s) provide for or finance an energy efficiency upgrade or a renewable energy system,
as defined in Section 
11-42-102
, in accordance with Title 11, Chapter 42, Assessment Area
Act;
(t) exercise powers and perform functions that the authority is authorized by statute to
exercise or perform; and
(u) enter into an agreement with the federal government or an agency of the federal
government under which the federal government or agency:
(i) provides law enforcement services only to military land within a project area; and
(ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
agency of the state or a political subdivision of the state.
(4) The authority may not itself provide law enforcement service or fire protection
service within a project area but may enter into an agreement for one or both of those services,
as provided in Subsection (3)(q).
Section 3. Section 
63H-1-202
 is amended to read:
63H-1-202.
Applicability of other law.
(1) The authority or land within a project area is not subject to:
(a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
(b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
(c) ordinances or regulations of a county or municipality, including those relating to
land use, health, business license, or franchise; or
(d) the jurisdiction of a local district under Title 17B, Limited Purpose Local
Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
Special Service District Act.
(2) The authority is subject to and governed by Sections 
63E-2-106
, 
63E-2-107
,
63E-2-108
, 
63E-2-109
, 
63E-2-110
, and 
63E-2-111
, but is not otherwise subject to or governed
by Title 63E, Independent Entities Code.
(3) (a) The definitions in Section 
57-8-3
 apply to this Subsection (3).
(b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
Act
, or any other provision of law
:
(i) if the military is the owner of land 
in a project area
 on which a condominium project
is constructed, [
it
] 
the military
 is not required to sign, execute, or record a declaration of a
condominium project; and
(ii) if a condominium unit 
in a project area
 is owned by the 
military or owned by the
authority and leased to the military for $1 or less per calendar year, not including any common
charges that are reimbursements for actual expenses:
(A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
Condominium Ownership Act; [
and
]
(B) condominium unit owners within the same building or commercial condominium
project may agree on any method of allocation and payment of common area expenses,
regardless of the size or par value of each unit[
.
]
; and
(C) the condominium project may not be dissolved without the consent of all the
condominium unit owners.
Section 4. Section 
63H-1-405
 is amended to read:
63H-1-405.
Project area budget.
(1) Before the authority may receive or use [
tax increment
] 
the property tax allocation
,
the authority board shall prepare and adopt a project area budget.
(2) The authority board may amend an adopted project area budget as and when the
authority board considers it appropriate.
Section 5. Section 
63H-1-501
 is amended to read:
63H-1-501.
Authority receipt and use of property tax allocation -- Distribution of
property tax allocation.
(1) (a) The authority may:
(i) subject to Subsection (1)(b), receive up to 75% of the [
tax increment
] 
property tax
allocation
 for up to 25 years, as provided in this part; and
(ii) use the [
tax increment
] 
property tax allocation
 during and after the period described
in Subsection (1)(a)(i).
(b) With respect to a parcel located within a project area, the 25-year period described
in Subsection (1)(a)(i) shall begin on the day on which the authority receives the first [
tax
increment
] 
property tax allocation
 from that parcel.
(2) Improvements on a parcel within a project area become subject to property tax on
January 1 immediately following the day on which the authority or an entity designated by the
authority issues a certificate of occupancy with respect to those improvements.
(3) Each county that collects property tax on property within a project area shall pay
and distribute to the authority the [
tax increment
] 
property tax allocation
 and dedicated tax
collections that the authority is entitled to collect under this title, in the manner and at the time
provided in Section 
59-2-1365
.
(4) (a) The board shall determine by resolution when the entire project area or an
individual parcel within a project area is subject to [
tax increment
] 
property tax allocation
.
(b) The board shall amend the project area budget to reflect whether a parcel within a
project area is subject to [
tax increment
] 
property tax allocation
.
Section 6. Section 
63H-1-502
 is amended to read:
63H-1-502.
Allowable uses of property tax allocation and other funds.
(1) Other than municipal services revenue, the authority may use [
tax increment
] 
the
property tax allocation
 and other funds available to the authority:
(a) for any purpose authorized under this chapter;
(b) for administrative, overhead, legal, and other operating expenses of the authority;
(c) to pay for, including financing or refinancing, all or part of the development of land
within the project area from which the [
tax increment
] 
property tax allocation
 or other funds
were collected, including assisting the ongoing operation of a development or facility within
the project area;
(d) to pay the cost of the installation and construction of publicly owned infrastructure
and improvements within the project area from which the [
tax increment
] 
property tax
allocation
 funds were collected;
(e) to pay the cost of the installation of publicly owned infrastructure and
improvements, including a passenger ropeway, as defined in Section 
72-11-102
, outside the
project area if:
(i) the authority board determines by resolution that the infrastructure and
improvements are of benefit to the project area; and
(ii) for a passenger ropeway, at least one end of the ropeway is located within the
project area; and
(f) to pay the principal and interest on bonds issued by the authority.
(2) The authority may use revenue generated from the operation of publicly owned
infrastructure operated by the authority or improvements 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) For purposes of Subsection (1), the authority may use:
(a) tax revenues received under Subsection 
59-12-205
(2)(b)(ii);
(b) resort communities tax revenues generated from a project area that contains private
land; and
(c) MIDA energy tax revenue, received under Section 
63H-1-204
, which does not have
to be used in the project area where the revenue was generated.
(4) The determination of the authority board under Subsection (1)(e) regarding benefit
to the project area is final.
Section 7. Section 
63H-1-602
 is amended to read:
63H-1-602.
Sources from which bonds may be made payable -- Authority powers
regarding bonds.
(1) The principal and interest on bonds issued by the authority may be made payable
from:
(a) the income and revenues of the projects financed with the proceeds of the bonds;
(b) the income and revenues of certain designated projects whether or not they were
financed in whole or in part with the proceeds of the bonds;
(c) the income, proceeds, revenues, property, and funds the authority derives from or
holds in connection with its undertaking and carrying out development of a project area;
(d) [
tax increment
] 
property tax allocation
 funds;
(e) authority revenues generally;
(f) a contribution, loan, grant, or other financial assistance from the federal government
or a public entity in aid of the development of military land; or
(g) funds derived from any combination of the methods listed in Subsections (1)(a)
through (f).
(2) In connection with the issuance of authority bonds, the authority may:
(a) pledge all or any part of its gross or net rents, fees, or revenues to which its right
then exists or may thereafter come into existence;
(b) encumber by mortgage, deed of trust, or otherwise all or any part of its real or
personal property, then owned or thereafter acquired; and
(c) make the covenants and take the action that may be necessary, convenient, or
desirable to secure its bonds, or, except as otherwise provided in this chapter, that will tend to
make the bonds more marketable, even though such covenants or actions are not specifically
enumerated in this chapter.
Section 8. Section 
63H-1-701
 is amended to read:
63H-1-701.
Annual authority budget -- Fiscal year -- Public hearing required --
Auditor forms -- Requirement to file form.
(1) The authority shall prepare and its board adopt an annual budget of revenues and
expenditures for the authority for each fiscal year.
(2) Each annual authority budget shall be adopted before June 22.
(3) The authority's fiscal year shall be the period from July 1 to the following June 30.
(4) (a) Before adopting an annual budget, the authority board shall hold a public
hearing on the annual budget.
(b) The authority shall provide notice of the public hearing on the annual budget by[
:
(i)
] publishing notice:
[
(A)
] 
(i)
 at least once in a newspaper of general circulation within the [
authority
boundaries
] 
state
, one week before the public hearing; and
[
(B)
] 
(ii)
 on the Utah Public Notice Website created in Section 
63F-1-701
, for at least
one week immediately before the public hearing[
; or
]
.
[
(ii) if there is no newspaper of general circulation within the authority boundaries as
described in Subsection (4)(a)(i)(A), posting a notice of the public hearing in at least three
public places within the authority boundaries.
]
(c) The authority shall make the annual budget available for public inspection at least
three days before the date of the public hearing.
(5) The state auditor shall prescribe the budget forms and the categories to be contained
in each authority budget, including:
(a) revenues and expenditures for the budget year;
(b) legal fees; and
(c) administrative costs, including rent, supplies, and other materials, and salaries of
authority personnel.
(6) (a) Within 30 days after adopting an annual budget, the authority board shall file a
copy of the annual budget with the auditor of [
the
] 
each
 county in which 
a project area of
 the
authority is located, the State Tax Commission, the state auditor, the State Board of Education,
and each taxing entity that levies a tax on property from which the authority collects [
tax
increment
] 
property tax allocation
.
(b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
state as a taxing entity is met if the authority files a copy with the State Tax Commission and
the state auditor.
Section 9. Section 
63H-1-703
 is amended to read:
63H-1-703.
Authority report.
(1) (a) On or before November 1 of each year, the authority shall prepare and file a
report with the county auditor 
of each county in which a project area of the authority is located
,
the State Tax Commission, the State Board of Education, and each taxing entity that levies a
tax on property from which the authority collects [
tax increment
] 
property tax allocation
.
(b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
taxing entity is met if the authority files a copy with the State Tax Commission and the state
auditor.
(2) Each report under Subsection (1) shall contain:
(a) an estimate of the [
tax increment
] 
property tax allocation
 to be paid to the authority
for the calendar year ending December 31; and
(b) an estimate of the [
tax increment
] 
property tax allocation
 to be paid to the authority
for the calendar year beginning the next January 1.
Section 10. Section 
63H-1-705
 is amended to read:
63H-1-705.
Audit report.
(1) The authority shall, within 180 days after the end of the authority's fiscal year, file a
copy of the audit report with the county auditor, the State Tax Commission, the State Board of
Education, and each taxing entity that levies a tax on property from which the authority collects
[
tax increment
] 
property tax allocation
.
(2) Each audit report under Subsection (1) shall include:
(a) the [
tax increment
] 
property tax allocation
 collected by the authority for each
project area;
(b) the outstanding principal amount of bonds issued or other loans incurred to finance
the costs associated with the authority's project areas; and
(c) the actual amount expended for:
(i) acquisition of property;
(ii) site improvements or site preparation costs;
(iii) installation of public utilities or other public improvements; and
(iv) administrative costs of the authority.
Section 11. Section 
63H-1-706
 is amended to read:
63H-1-706.
Authority chief financial officer is a public treasurer -- Certain
authority funds are public funds.
(1) The authority's chief financial officer:
(a) is a public treasurer, as defined in Section 
51-7-3
; and
(b) shall invest the authority funds specified in Subsection (2) as provided in that
subsection.
(2) Notwithstanding Subsection 
63E-2-110
(2)(a), [
tax increment
] 
property tax
allocation
 funds, municipal services revenue, and appropriations that the authority receives
from the state:
(a) are public funds; and
(b) shall be invested as provided in Title 51, Chapter 7, State Money Management Act.
Section 12. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.