Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 6001 First Substitute (2020S6)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 8/31/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• allows a community reinvestment agency to extend for up to two years the collection period for certain project areas impacted by the COVID-19 emergency.

Every vote on this bill

Bill text

COMMUNITY REINVESTMENT AGENCY MODIFICATIONS
SIXTH SPECIAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Mike Winder
LONG TITLE
General Description:
This bill modifies provisions related to community reinvestment agencies.
Highlighted Provisions:
This bill:
▸ allows a community reinvestment agency to extend for up to two years the
collection period for certain project areas impacted by the COVID-19 emergency.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
17C-1-416
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17C-1-416
 is enacted to read:
 17C-1-416.
Extension of collection period for project areas impacted by
COVID-19 emergency -- Requirements -- Limitations.
(1) For purposes of this section:
(a) "COVID-19 emergency" means the same as that term is defined in Section
53-2c-102
.
(b) "Extension period" means the period of an impacted project area's project area
funds collection period that is the result of an extension under this section.
(c) "Impacted project area" means a project area:
(i) from which an agency expects to receive tax increment;
(ii) that is subject to a project area funds collection period;
(iii) that is subject to a project area plan that was adopted on or before December 31,
2019; and
(iv) in which the agency determines the conditions resulting from the COVID-19
emergency will likely:
(A) delay the agency's implementation of the project area plan; or
(B) cause the agency to receive an amount of tax increment from the project area that is
less than the amount of tax increment the agency expected the agency would receive from the
project area.
(d) "Tax increment" includes additional tax increment as that term is defined in Section
17C-1-403
.
(2) (a) Subject to Subsection (3), an agency may extend the project area funds
collection period of an impacted project area for a period not to exceed two years from the day
on which the project area funds collection period ends if:
(i) the board adopts a resolution on or before December 31, 2021, describing:
(A) the conditions resulting from the COVID-19 emergency that the board determines
will likely delay the implementation of the project area plan or reduce the amount of tax
increment that the agency receives from the impacted project area;
(B) why an extension of the project area funds collection period is needed; and
(C) the date on which the extension period will end; and
(ii) no later than November 1 of the year immediately preceding the year in which the
project area funds collection period, not including any extension under this section, ends, the
agency mails or electronically submits a copy of the resolution described in Subsection (2)(a)(i)
to:
(A) the State Tax Commission;
(B) the State Board of Education;
(C) the state auditor;
(D) the auditor of the county in which the impacted project area is located; and
(E) each taxing entity affected by the agency's collection of tax increment from the
impacted project area.
(b) Notwithstanding any other provision of law, an agency is not required to obtain
taxing entity or taxing entity committee approval to extend a project area funds collection
period under this section.
(c) An extension of a project area funds collection period under this section takes effect
on the day on which the agency mails or electronically submits a copy of the resolution
described in Subsection (2)(a)(i) to each entity specified in Subsection (2)(a)(ii).
(3) (a) This section does not allow an agency to change:
(i) the amount or percentage of tax increment that the agency is authorized to receive
from the impacted project area in the final two years of the project area funds collection period;
or
(ii) the cumulative dollar amount of tax increment that the agency is authorized to
receive from the impacted project area, if the agency's receipt of tax increment is limited to a
maximum cumulative dollar amount.
(b) An agency that extends a project area funds collection period under this section
shall use any tax increment received during the extension period in the same manner as
provided in:
(i) the project area plan; and
(ii) (A) the project area budget; or
(B) the resolution or interlocal agreement authorizing the agency to receive tax
increment from the impacted project area.
(c) (i) An extension of a project area funds collection period under this section does not
automatically extend the payment of tax increment under a previously approved participation
agreement for the extension period, regardless of any contrary term in the participation
agreement.
(ii) An agency that extends a project area funds collection period under this section
may only extend the payment of tax increment under a previously approved participation
agreement for the extension period by:
(A) amending the previously approved participation agreement; or
(B) entering into a new participation agreement.
(d) Nothing in this section limits the right of an agency to extend the agency's
collection of tax increment as otherwise provided in this title.
Section 2. 
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.