Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 448 (2017GS)

Sponsor

Rep. Peterson, J.

Final action

Governor Signed 3/28/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• authorizes a community reinvestment agency to amend a community reinvestment project area that is subject to an interlocal agreement for the purpose of acquiring property within the community reinvestment project area by eminent domain; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

COMMUNITY REINVESTMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jeremy A. Peterson
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill amends provisions related to eminent domain in Title 17C, Limited Purpose
Local Government Entities - Community Reinvestment Agency Act.
Highlighted Provisions:
This bill:
▸ authorizes a community reinvestment agency to amend a community reinvestment
project area that is subject to an interlocal agreement for the purpose of acquiring
property within the community reinvestment project area by eminent domain; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17C-1-102
, as last amended by Laws of Utah 2016, Chapter 350
17C-1-902
, as renumbered and amended by Laws of Utah 2016, Chapter 350
17C-1-904
, as renumbered and amended by Laws of Utah 2016, Chapter 350
17C-5-103
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-104
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-112
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-202
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-203
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-306
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-402
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-403
, as enacted by Laws of Utah 2016, Chapter 350
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17C-1-102
 is amended to read:
17C-1-102.
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; and
(c) 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 the purposes
of agency operations or implementing a project area plan, 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
(c) a contribution, loan, grant, or other financial assistance from any public or private
source.
(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) "Blight" or "blighted" means the condition of an area that meets the requirements
described in Subsection 
17C-2-303
(1) for an urban renewal project area or Section 
17C-5-405
for a community reinvestment project area.
(12) "Blight hearing" means a public hearing regarding whether blight 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-5-405
.
(13) "Blight study" means a study to determine whether blight 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.
(14) "Board" means the governing body of an agency, as described in Section
17C-1-203
.
(15) "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.
(16) "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.
(17) "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.
(18) "Community" means a county or municipality.
(19) "Community development project area plan" means a project area plan adopted
under Chapter 4, Part 1, Community Development Project Area Plan.
(20) "Community legislative body" means the legislative body of the community that
created the agency.
(21) "Community reinvestment project area plan" means a project area plan adopted
under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
(22) "Contest" means to file a written complaint in the district court of the county in
which the agency is located.
(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 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 tax increment 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 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 owned or 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) "Marginal value" means the difference between actual taxable value and base
taxable value.
(37) "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.
(38) "Municipality" means a city, town, or metro township as defined in Section
10-2a-403
.
(39) "Participant" means one or more persons that enter into a participation agreement
with an agency.
(40) "Participation agreement" means a written agreement between a person and an
agency that:
(a) includes a description of:
(i) the project area development that the person will undertake;
(ii) the amount of project area funds the person may receive; and
(iii) the terms and conditions under which the person may receive project area funds;
and
(b) is approved by resolution of the board.
(41) "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.
(42) "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.
(43) "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.
(44) "Private," with respect to real property, means:
(a) not owned by a public entity or any other governmental entity; and
(b) not dedicated to public use.
(45) "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.
(46) "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-2-202
;
(b) for an economic development project area, Section 
17C-3-202
;
(c) for a community development project area, Section 
17C-4-204
; or
(d) for a community reinvestment project area, Section 
17C-5-302
.
(47) "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 blight or the causes of blight;
(k) redevelopment as defined under the law in effect before May 1, 2006; or
(l) any activity described in Subsections (47)(a) through (k) outside of a project area
that the board determines to be a benefit to the project area.
(48) "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.
(49) "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 adopted 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 adopted by a taxing entity committee or an interlocal
agreement. 
(50) "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.
(51) (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. 
(52) "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,
local district, special service district, or interlocal cooperation entity.
(53) "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.
(54) "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. 
(55) "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
. 
(56) "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 (56)(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.
(57) "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) blight exists within the survey area
.
(58) "Survey area resolution" means a resolution adopted by a board [
under Subsection
17C-2-101.5
(1) or 
17C-5-103
(1) designating a survey area
] 
that designates a survey area
.
(59) "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. 
(60) (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
(ii) the amount of property tax revenue that would be generated from that same area
using the base taxable value of the property.
(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.
(61) "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.
(62) "Taxing entity committee" means a committee representing the interests of taxing
entities, created in accordance with Section 
17C-1-402
.
(63) "Unincorporated" means not within a municipality.
(64) "Urban renewal project area plan" means a project area plan adopted under
Chapter 2, Part 1, Urban Renewal Project Area Plan.
Section 2. Section 
17C-1-902
 is amended to read:
17C-1-902.
Use of eminent domain -- Conditions.
(1) Except as provided in Subsection (2), an agency may not use eminent domain to
acquire property.
(2) Subject to the provisions of this part, an agency may, in accordance with Title 78B,
Chapter 6, Part 5, Eminent Domain, use eminent domain to acquire an interest in property:
(a) within an urban renewal project area if:
(i) the board makes a finding of blight under Chapter 2, Part 3, Blight Determination in
Urban Renewal Project Areas; and
(ii) the urban renewal project area plan provides for the use of eminent domain;
(b) that is owned by an agency board member or officer and located within a project
area, if the board member or officer consents;
(c) within a community reinvestment project area if:
(i) the board makes a finding of blight [
under Section 
17C-5-405
] 
in accordance with
Chapter 5, Part 4, Blight Determination in a Community Reinvestment Project Area
;
(ii) 
(A)
 the 
original
 community reinvestment project area plan provides for the use of
eminent domain; 
or
(B) the community reinvestment project area plan is amended in accordance with
Subsection 
17C-5-112
(4);
 and
(iii) the agency creates a taxing entity committee in accordance with Section
17C-1-402
;
(d) that:
(i) is owned by a participant or a property owner that is entitled to receive tax
increment or other assistance from the agency;
(ii) is within a project area, regardless of when the project area is created, for which the
agency made a finding of blight under Section 
17C-2-102
 or 
17C-5-405
; and
(iii) (A) the participant or property owner described in Subsection (2)(d)(i) fails to
develop or improve in accordance with the participation agreement or the project area plan; or
(B) for a period of 36 months does not generate the amount of tax increment that the
agency projected to receive under the project area budget; or
(e) if a property owner requests in writing that the agency exercise eminent domain to
acquire the property owner's property within a project area.
(3) An agency shall, in accordance with the provisions of this part, commence the
acquisition of property described in Subsections (2)(a) through (c) by eminent domain within
five years after the day on which the project area plan is effective.
Section 3. Section 
17C-1-904
 is amended to read:
17C-1-904.
Acquiring single family owner occupied residential property or
commercial property -- Acquiring property already devoted to a public use -- Relocation
assistance requirement.
(1) As used in this section:
(a) "Commercial property" means real property used, in whole or in part, by the owner
or possessor of the property for a commercial, industrial, retail, or other business purpose,
regardless of the identity of the property owner.
(b) "Owner occupied property" means private real property that is:
(i) used for a single-family residential or commercial purpose; and
(ii) occupied by the owner of the property.
(c) "Relevant area" means:
(i) except as provided in Subsection (1)(c)(ii), the project area; or
(ii) 
(A)
 the area included within a phase of a project under a project area plan if the
phase and the area included within the phase are described in the project area plan
; or
(B) the parcel or parcels that are the subject of a community reinvestment project area
plan amendment under Subsection 
17C-5-112
(4)
.
(2) An agency may not initiate an action in district court to acquire by eminent domain
a residential owner occupied property unless:
(a) (i) a written petition requesting the agency to use eminent domain to acquire the
property is submitted by the owners of at least 80% of the residential owner occupied property
within the relevant area representing at least 70% of the value of residential owner occupied
property within the relevant area; or
(ii) a written petition of 90% of the owners of real property, including property owned
by the agency or a public entity within the project area, is submitted to the agency, requesting
the use of eminent domain to acquire the property; and
(b) at least two-thirds of all board members vote in favor of using eminent domain to
acquire the property.
(3) An agency may not initiate an action in district court to acquire commercial owner
occupied property by eminent domain unless:
(a) a written petition requesting the agency to use eminent domain to acquire the
property is submitted by the owners of at least 75% of the commercial property within the
relevant area representing at least 60% of the value of commercial property within the relevant
area; and
(b) at least two-thirds of all board members vote in favor of using eminent domain to
acquire the property.
(4) For purposes of this section an owner is considered to have signed a petition if:
(a) owners representing a majority ownership interest in the property sign the petition;
or
(b) if the property is owned by joint tenants or tenants by the entirety, 50% of the
number of owners of the property sign the petition.
(5) An agency may not acquire by eminent domain any real property on which an
existing building is to be continued on the building's present site and in the building's present
form and use unless:
(a) the building requires structural alteration, improvement, modernization, or
rehabilitation;
(b) the site or lot on which the building is situated requires modification in size, shape,
or use; or
(c) (i) it is necessary to impose upon the property a standard, restriction, or control of
the project area plan; and
(ii) the owner fails or refuses to agree to participate in the project area plan.
(6) An agency may not acquire by eminent domain property that is owned by a public
entity. 
(7) An agency that acquires property by eminent domain shall comply with Title 57,
Chapter 12, Utah Relocation Assistance Act.
Section 4. Section 
17C-5-103
 is amended to read:
17C-5-103.
Initiating a community reinvestment project area plan.
(1) [
A
] 
Subject to Subsection (2), a
 board shall initiate the process of adopting a
community reinvestment project area plan by adopting a survey area resolution that:
(a) designates a geographic area located within the agency's boundaries as a survey
area;
(b) contains a description or map of the boundaries of the survey area;
(c) contains a statement that the survey area requires study to determine whether
project area development is feasible within one or more proposed community reinvestment
project areas within the survey area; and
(d) authorizes the agency to:
(i) prepare a proposed community reinvestment project area plan for each proposed
community reinvestment project area; and
(ii) conduct any examination, investigation, or negotiation regarding the proposed
community reinvestment project area that the agency considers appropriate.
(2) If an agency anticipates [
an activity described in Subsection 
17C-5-402
(1)
] 
using
eminent domain to acquire property
 within the survey area, the resolution described in
Subsection (1) shall include:
(a) a statement that the survey area requires study to determine whether blight exists
within the survey area; and
(b) authorization for the agency to conduct a blight study in accordance with Section
17C-5-403
.
Section 5. Section 
17C-5-104
 is amended to read:
17C-5-104.
Process for adopting a community reinvestment project area plan --
Prerequisites -- Restrictions.
(1) An agency may not propose a community reinvestment project area plan unless the
community in which the proposed community reinvestment project area plan is located:
(a) has a planning commission; and
(b) has adopted a general plan under:
(i) if the community is a municipality, Title 10, Chapter 9a, Part 4, General Plan; or
(ii) if the community is a county, Title 17, Chapter 27a, Part 4, General Plan.
(2) (a) Before an agency may adopt a proposed community reinvestment project area
plan, the agency shall 
conduct a blight study and
 make a blight determination in accordance
with 
[
Section 
17C-5-402
] 
Part 4, Blight Determination in a Community Reinvestment Project
Area,
 if the agency anticipates [
an activity described in Subsection 
17C-5-402
(1) for which a
blight determination is required
] 
using eminent domain to acquire property within the proposed
community reinvestment project area
.
(b) If applicable, an agency may not approve a community reinvestment project area
plan more than one year after the [
adoption of a
] 
agency adopts a
 resolution making a finding
of blight under Section 
17C-5-402
.
(3) To adopt a community reinvestment project area plan, an agency shall:
(a) prepare a proposed community reinvestment project area plan in accordance with
Section 
17C-5-105
;
(b) make the proposed community reinvestment project area plan available to the
public at the agency's office during normal business hours for at least 30 days before the plan
hearing described in Subsection (3)(e);
(c) before holding the plan hearing described in Subsection (3)(e), provide an
opportunity for the State Board of Education and each taxing entity that levies or imposes a tax
within the proposed community reinvestment project area to consult with the agency regarding
the proposed community reinvestment project area plan;
(d) provide notice of the plan hearing in accordance with Chapter 1, Part 8, Hearing
and Notice Requirements;
(e) hold a plan hearing on the proposed community reinvestment project area plan and,
at the plan hearing:
(i) allow public comment on:
(A) the proposed community reinvestment project area plan; and
(B) whether the agency should revise, approve, or reject the proposed community
reinvestment project area plan; and
(ii) receive all written and oral objections to the proposed community reinvestment
project area plan; and
(f) following the plan hearing described in Subsection (3)(e), or at a subsequent agency
meeting:
(i) consider:
(A) the oral and written objections to the proposed community reinvestment project
area plan and evidence and testimony for and against adoption of the proposed community
reinvestment project area plan; and
(B) whether to revise, approve, or reject the proposed community reinvestment project
area plan;
(ii) adopt a resolution in accordance with Section 
17C-5-108
 that approves the
proposed community reinvestment project area plan, with or without revisions, as the
community reinvestment project area plan; and
(iii) submit the community reinvestment project area plan to the community legislative
body for adoption.
(4) (a) Except as provided in Subsection (4)(b), an agency may not modify a proposed
community reinvestment project area plan to add a parcel to the proposed community
reinvestment project area unless the agency holds a plan hearing to consider the addition and
gives notice of the plan hearing in accordance with Chapter 1, Part 8, Hearing and Notice
Requirements.
(b) The notice and hearing requirements described in Subsection (4)(a) do not apply to
a proposed community reinvestment project area plan being modified to add a parcel to the
proposed community reinvestment project area if:
(i) the parcel is contiguous to one or more parcels already included in the proposed
community reinvestment project area under the proposed community reinvestment project area
plan;
(ii) the record owner of the parcel consents to adding the parcel to the proposed
community reinvestment project area; and
(iii) the parcel is located within the survey area.
Section 6. Section 
17C-5-112
 is amended to read:
17C-5-112.
Amending a community reinvestment project area plan.
(1) An agency may amend a community reinvestment project area plan in accordance
with this section.
(2) (a) If an amendment proposes to enlarge a community reinvestment project area's
geographic area, the agency shall:
(i) comply with this part as though the agency were creating a community reinvestment
project area;
(ii) if the agency anticipates receiving project area funds from the area proposed to be
added to the community reinvestment project area, before the agency may collect project area
funds:
(A) for a community reinvestment project area plan that is subject to a taxing entity
committee, obtain approval to receive tax increment from the taxing entity committee; or
(B) for a community reinvestment project area plan that is subject to an interlocal
agreement, obtain the approval of the taxing entity that is a party to the interlocal agreement;
and
(iii) if the agency anticipates [
activity within the area proposed to be added to the
community reinvestment project area that requires a finding of blight under Subsection
17C-5-402
(1)
] 
acquiring property in the area proposed to be added to the community
reinvestment project area by eminent domain
, follow the procedures described in Section
17C-5-402
.
(b) The base year for the area proposed to be added to the community reinvestment
project area shall be determined using the date of:
(i) the taxing entity committee's consent as described in Subsection (2)(a)(ii)(A); or
(ii) the taxing entity's consent as described in Subsection (2)(a)(ii)(B).
(3) If an amendment does not propose to enlarge a community reinvestment project
area's geographic area, the board may adopt a resolution approving the amendment after the
agency:
(a) if the amendment does not propose to allow the agency to receive a greater amount
of project area funds or to extend a project area funds collection period:
(i) gives notice in accordance with Section 
17C-1-806
; and
(ii) holds a public hearing on the proposed amendment that meets the requirements
described in [
Subsection 
17C-5-104
(2)
] 
Section 
17C-1-808
; or
(b) if the amendment proposes to also allow the agency to receive a greater amount of
project area funds or to extend a project area funds collection period:
(i) complies with Subsection (3)(a)(i) and (ii); and
(ii) (A) for a community reinvestment project area plan that is subject to a taxing entity
committee, obtains approval from the taxing entity committee; or
(B) for a community reinvestment project area plan that is subject to an interlocal
agreement, obtains approval to receive project area funds from the taxing entity that is a party
to the interlocal agreement.
(4) (a) An agency may amend a community reinvestment project area plan for a
community reinvestment project area that is subject to an interlocal agreement for the purpose
of using eminent domain to acquire one or more parcels within the community reinvestment
project area.
(b) To amend a community reinvestment project area plan as described in Subsection
(4)(a), an agency shall:
(i) adopt a survey area resolution that identifies each parcel that the agency intends to
study to determine whether blight exists;
(ii) in accordance with Part 4, Blight Determination in a Community Reinvestment
Project Area, conduct a blight study within the survey area and make a blight determination;
(iii) create a taxing entity committee whose sole purpose is to approve any finding of
blight in accordance with Subsection 
17C-5-402
(3); and
(iv) obtain approval to amend the community reinvestment project area plan from each
taxing entity that is party to an interlocal agreement.
(c) Amending a community reinvestment project area plan as described in this
Subsection (4) does not affect:
(i) the base year of the parcel or parcels that are the subject of an amendment under this
Subsection (4); and
(ii) any interlocal agreement under which the agency is authorized to receive project
area funds from the community reinvestment project area.
[
(4)
] 
(5)
 An agency may amend a community reinvestment project area plan without
obtaining the consent of a taxing entity or a taxing entity committee and without providing
notice or holding a public hearing if the amendment:
(a) makes a minor adjustment in the community reinvestment project area boundary
that is requested by a county assessor or county auditor to avoid inconsistent property boundary
lines; or
(b) removes a parcel from a community reinvestment project area because the agency
determines that the parcel is:
(i) tax exempt;
(ii) no longer blighted; or
(iii) no longer necessary or desirable to the project area.
[
(5)
] 
(6)
 (a) An amendment approved by board resolution under this section may not
take effect until the community legislative body adopts an ordinance approving the
amendment.
(b) Upon the community legislative body adopting an ordinance approving an
amendment under Subsection [
(5)
] 
(6)
(a), the agency shall comply with the requirements
described in Sections 
17C-5-110
 and 
17C-5-111
 as if the amendment were a community
reinvestment project area plan.
[
(6)
] 
(7)
 (a) Within 30 days after the day on which an amendment to a project area plan
becomes effective, a person may contest the amendment to the project area plan or the
procedure used to adopt the amendment to the project area plan if the amendment or procedure
fails to comply with a provision of this title.
(b) After the 30-day period described in Subsection [
(6)
] 
(7)
(a) expires, a person may
not contest the amendment to the project area plan or procedure used to adopt the amendment
to the project area plan for any cause.
Section 7. Section 
17C-5-202
 is amended to read:
17C-5-202.
Community reinvestment project area funding options.
(1) (a) Except as provided in Subsection [
(1)(b)
] 
(2)
, for the purpose of receiving
project area funds for use within a community reinvestment project area, an agency shall
negotiate and enter into an interlocal agreement with a taxing entity in accordance with Section
17C-5-204
 to receive all or a portion of the taxing entity's tax increment or sales and use tax
revenue in accordance with the interlocal agreement.
(b) If a community reinvestment project area is subject to an interlocal agreement
under Subsection (1)(a) and the agency subsequently amends the community reinvestment
project area plan as described in Subsection 
17C-5-112
(4), the agency shall continue to receive
project area funds under the interlocal agreement.
[
(b)
] 
(2)
 If an agency plans [
to use
] 
to create a community reinvestment project area
and adopt a community reinvestment project area plan that provides for the use of
 eminent
domain to acquire property within [
a
] 
the
 community reinvestment project area, the agency
shall create a taxing entity committee as described in Section 
17C-1-402
 and receive tax
increment in accordance with Section 
17C-5-203
.
[
(2)
] 
(3)
 An agency shall comply with Chapter 5, Part 3, Community Reinvestment
Project Area Budget, regardless of whether an agency enters into an interlocal agreement under
Subsection (1)[
(a)
] or creates a taxing entity committee under Subsection [
(1)(b)
] 
(2)
.
Section 8. Section 
17C-5-203
 is amended to read:
17C-5-203.
Community reinvestment project area subject to taxing entity
committee -- Tax increment.
(1) This section applies to a community reinvestment project area that is subject to a
taxing entity committee under Subsection 
17C-5-202
[
(1)(b)
]
(2)
.
(2) Subject to the taxing entity committee's approval of a community reinvestment
project area budget under Section 
17C-5-304
, and for the purpose of implementing a
community reinvestment project area plan, an agency may receive up to 100% of a taxing
entity's tax increment, or any specified dollar amount of tax increment, for any period of time.
(3) Notwithstanding Subsection (2), an agency that adopts a community reinvestment
project area plan that is subject to a taxing entity committee may negotiate and enter into an
interlocal agreement with a taxing entity and receive all or a portion of the taxing entity's sales
and use tax revenue for any period of time.
Section 9. Section 
17C-5-306
 is amended to read:
17C-5-306.
Amending a community reinvestment project area budget.
(1) Before a project area funds collection period ends, an agency may amend a
community reinvestment project area budget in accordance with this section.
(2) To amend a community reinvestment project area budget, an agency shall:
(a) provide notice and hold a public hearing on the proposed amendment in accordance
with Chapter 1, Part 8, Hearing and Notice Requirements;
(b) (i) if the community reinvestment project area budget required approval from a
taxing entity committee, obtain the taxing entity committee's approval; or
(ii) if the community reinvestment project area budget required an interlocal agreement
with a taxing entity, obtain approval from the taxing entity that is a party to the interlocal
agreement; and
(c) at the public hearing described in Subsection (2)(a) or at a subsequent board
meeting, by resolution, adopt the community reinvestment project area budget amendment.
(3) If an agency proposes a community reinvestment project area budget amendment
under which the agency is paid a greater proportion of tax increment from the community
reinvestment project area than provided under the community reinvestment project area budget,
the notice described in Subsection (2)(a) shall state:
(a) the percentage of tax increment paid under the community reinvestment project
area budget; and
(b) the proposed percentage of tax increment paid under the community reinvestment
project area budget amendment.
(4) (a) If an agency proposes a community reinvestment project area budget
amendment that extends a project area funds collection period, before a taxing entity
committee or taxing entity may provide the taxing entity committee's or taxing entity's approval
described in Subsection (2)(b), the agency shall provide to the taxing entity committee or
taxing entity:
(i) the reasons why the extension is required;
(ii) a description of the project area development for which project area funds received
by the agency under the extension will be used;
(iii) a statement of whether the project area funds received by the agency under the
extension will be used within an active project area or a proposed project area; and
(iv) a revised community reinvestment project area budget that includes:
(A) the annual and total amounts of project area funds that the agency receives under
the extension; and
(B) the number of years that are added to each project area funds collection period
under the extension.
(b) With respect to an amendment described in Subsection (4)(a), a taxing entity
committee or taxing entity may consent to:
(i) allow an agency to use project area funds received under an extension within a
different project area from which the project area funds are generated; or
(ii) alter the base taxable value in connection with a community reinvestment project
area budget extension.
(5) If an agency proposes a community reinvestment project area budget amendment
that reduces the base taxable value of the project area due to the removal of a parcel under
Subsection 
17C-5-112
[
(4)
]
(5)
(b), an agency may amend a project area budget without:
(a) complying with Subsection (2)(a); and
(b) obtaining taxing entity committee or taxing entity approval described in Subsection
(2)(b).
(6) (a) A person may contest an agency's adoption of a community reinvestment project
area budget amendment within 30 days after the day on which the agency adopts the
community reinvestment project area budget amendment.
(b) After the 30-day period described in Subsection (6)(a), a person may not contest:
(i) the agency's adoption of the community reinvestment project area budget
amendment;
(ii) a payment to the agency under the community reinvestment project area budget
amendment; or
(iii) the agency's use of project area funds received under the community reinvestment
project area budget amendment.
Section 10. Section 
17C-5-402
 is amended to read:
17C-5-402.
Blight determination in a community reinvestment project area --
Prerequisites -- Restrictions.
(1) An agency shall comply with the provisions of this section before the agency may
use eminent domain to acquire property under Chapter 1, Part 9, Eminent Domain.
(2) An agency shall, after adopting a survey area resolution as described in Section
17C-5-103
:
(a) cause a blight study to be conducted within the survey area in accordance with
Section 
17C-5-403
;
(b) provide notice and hold a blight hearing in accordance with Chapter 1, Part 8,
Hearing and Notice Requirements; and
(c) after the blight hearing, at the same or at a subsequent meeting:
(i) consider[
:(A)
] the issue of blight and the evidence and information relating to the
existence or nonexistence of blight; and
[
(B) whether the agency should pursue adoption of one or more community
reinvestment project area plans; and
]
(ii) by resolution, make a finding regarding whether blight exists in [
the proposed
community reinvestment project
] 
all or part of the survey
 area.
(3) (a) If an agency makes a finding of blight under Subsection (2), the agency may not
adopt [
the
] 
an original
 community reinvestment project area plan 
or an amendment to a
community reinvestment project area plan under Subsection 
17C-5-112
(4)
 until the taxing
entity committee approves the finding of blight.
(b) (i) A taxing entity committee shall approve an agency's finding of blight unless the
taxing entity committee demonstrates that the conditions the agency found to exist in the
[
community reinvestment project
] 
survey
 area that support the agency's finding of blight:
(A) do not exist; or
(B) do not constitute blight under Section 
17C-5-405
.
(ii) (A) If the taxing entity committee questions or disputes the existence of some or all
of the blight conditions that the agency found to exist in the [
proposed community
reinvestment project
] 
survey
 area, the taxing entity committee may hire a consultant, mutually
agreed upon by the taxing entity committee and the agency, with the necessary expertise to
assist the taxing entity committee in making a determination as to the existence of the
questioned or disputed blight conditions.
(B) The agency shall pay the fees and expenses of each consultant hired under
Subsection (3)(b)(ii)(A).
(C) The findings of a consultant hired under Subsection (3)(b)(ii)(A) are binding on the
taxing entity committee and the agency.
Section 11. Section 
17C-5-403
 is amended to read:
17C-5-403.
Blight study -- Requirements -- Deadline.
(1) A blight study shall:
(a) undertake a parcel by parcel survey of the survey area;
(b) provide data so the board and taxing entity committee may determine:
(i) whether the conditions described in Subsection 
17C-5-405
:
(A) exist in part or all of the survey area; and
(B) meet the qualifications for a finding of blight in all or part of the survey area; and
(ii) whether the survey area contains all or part of a superfund site;
(c) include a written report that states:
(i) the conclusions reached;
(ii) any area within the survey area that meets the statutory criteria of blight under
Section 
17C-5-405
; and
(iii) any other information requested by the agency to determine whether blight exists
within the survey area; and
(d) be completed within one year after the day on which the survey area resolution is
adopted.
(2) (a) If a blight study is not completed within the time described in Subsection (1)(d),
the agency may not approve a community reinvestment project area plan 
or an amendment to a
community reinvestment project area plan under Subsection 
17C-5-112
(4)
 based on a blight
study unless the agency first adopts a new resolution under Subsection 
17C-5-103
(1).
(b) A new resolution described in Subsection (2)(a) shall in all respects be considered
to be a resolution under Subsection 
17C-5-103
(1) adopted for the first time, except that any
actions taken toward completing a blight study under the resolution that the new resolution
replaces shall be considered to have been taken under the new resolution.
(3) (a) For the purpose of making a blight determination under Subsection
17C-5-402
(2)(c)(ii), a blight study is valid for one year from the day on which the blight study
is completed.
(b) (i) Except as provided in Subsection (3)(b)(ii), an agency that makes a blight
determination under a valid blight study and subsequently adopts a community reinvestment
project area plan in accordance with Section 
17C-5-104
 may amend the community
reinvestment project area plan without conducting a new blight study.
(ii) An agency shall conduct a supplemental blight study for the area proposed to be
added to the community reinvestment project area if the agency proposes an amendment to a
community reinvestment project area plan that:
(A) increases the community reinvestment project area's geographic boundary and the
area proposed to be added was not included in the original blight study; and
(B) provides for the use of eminent domain within the area proposed to be added to the
community reinvestment project area.