Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 65 First Substitute (2021GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/16/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• provides an option for an agency and certain taxing entities to enter into an interlocal agreement for the purpose of dissolving the agency's project area and transferring project area incremental revenue;
• for an agency that chooses to enter into an interlocal agreement:
• authorizes the agency to levy a property tax on property within the agency's boundaries;
• prohibits the agency from extending the scope of certain project area plans or project area budgets;
• allows the agency to use property tax revenue for agency-wide project development;
• requires the agency to adopt an implementation plan to guide agency-wide project development;
• requires the agency to allocate a certain amount of property tax revenue for affordable housing;
• prohibits the agency from creating a new community reinvestment project area unless the purpose is for a cooperative development project or an economic development project;
• describes the method by which an agency's certified tax rate is calculated;
• prohibits the agency from using eminent domain for agency-wide project development; and
• describes how the agency accounts for property tax revenue; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

COMMUNITY REINVESTMENT AGENCY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Stephen G. Handy
LONG TITLE
General Description:
This bill amends Title 17C, Limited Purpose Local Government Entities - Community
Reinvestment Agency Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ provides an option for an agency and certain taxing entities to enter into an
interlocal agreement for the purpose of dissolving the agency's project area and
transferring project area incremental revenue;
▸ for an agency that chooses to enter into an interlocal agreement:
• authorizes the agency to levy a property tax on property within the agency's
boundaries;
• prohibits the agency from extending the scope of certain project area plans or
project area budgets;
• allows the agency to use property tax revenue for agency-wide project
development;
• requires the agency to adopt an implementation plan to guide agency-wide
project development;
• requires the agency to allocate a certain amount of property tax revenue for
affordable housing;
• prohibits the agency from creating a new community reinvestment project area
unless the purpose is for a cooperative development project or an economic
development project;
• describes the method by which an agency's certified tax rate is calculated;
• prohibits the agency from using eminent domain for agency-wide project
development; and
• describes how the agency accounts for property tax revenue; 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 2020, Chapter 241
17C-1-202
, as last amended by Laws of Utah 2018, Chapters 364 and 366
17C-1-402
, as last amended by Laws of Utah 2019, Chapter 376
17C-1-409
, as last amended by Laws of Utah 2019, Chapter 376
17C-1-502
, as last amended by Laws of Utah 2016, Chapter 350
17C-1-605
, as last amended by Laws of Utah 2016, Chapter 350
17C-2-110
, as last amended by Laws of Utah 2019, Chapter 376
17C-2-206
, as last amended by Laws of Utah 2016, Chapter 350
17C-2-207
, as last amended by Laws of Utah 2020, Chapter 385
17C-3-109
, as last amended by Laws of Utah 2018, Chapter 364
17C-3-205
, as last amended by Laws of Utah 2016, Chapter 350
17C-3-206
, as last amended by Laws of Utah 2016, Chapter 350
17C-4-108
, as last amended by Laws of Utah 2018, Chapter 364
17C-5-102
, as enacted by Laws of Utah 2016, Chapter 350
17C-5-112
, as last amended by Laws of Utah 2019, Chapter 376
17C-5-306
, as last amended by Laws of Utah 2017, Chapter 456
53G-7-306
, as last amended by Laws of Utah 2020, Chapters 354 and 408
59-2-924
, as last amended by Laws of Utah 2020, Chapters 305 and 354
ENACTS:
17C-1-1001
, Utah Code Annotated 1953
17C-1-1002
, Utah Code Annotated 1953
17C-1-1003
, Utah Code Annotated 1953
17C-1-1004
, Utah Code Annotated 1953
17C-1-1005
, Utah Code Annotated 1953
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 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
; [
or
]
(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 the district court of the county in
which the agency is located.
(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 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 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) "Major transit investment corridor" means the same as that term is defined in
Section 
10-9a-103
.
(37) "Marginal value" means the difference between actual taxable value and base
taxable value.
(38) "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.
(39) "Municipality" means a city, town, or metro township as defined in Section
10-2a-403
.
(40) "Participant" means one or more persons that enter into a participation agreement
with an agency.
(41) "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.
(42) "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.
(43) "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.
(44) "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.
(45) "Private," with respect to real property, means property not owned by a public
entity or any other governmental entity.
(46) "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.
(47) "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
.
(48) "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 (48) outside of a project area that the board
determines to be a benefit to the project area.
(49) "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.
(50) "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. 
(51) "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.
(52) (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. 
(53) "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, community reinvestment agency, or interlocal cooperation
entity.
(54) "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.
(55) "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. 
(56) "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
. 
(57) "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 (57)(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.
(58) "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.
(59) "Survey area resolution" means a resolution adopted by a board that designates a
survey area.
(60) "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. 
(61) (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.
(62) "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.
(63) "Taxing entity committee" means a committee representing the interests of taxing
entities, created in accordance with Section 
17C-1-402
.
(64) "Unincorporated" means not within a municipality.
(65) "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-1-202
 is amended to read:
17C-1-202.
Agency powers.
(1) An agency may:
(a) sue and be sued;
(b) enter into contracts generally;
(c) buy, obtain an option upon, acquire by gift, or otherwise acquire any interest in real
or personal property;
(d) hold, sell, convey, grant, gift, or otherwise dispose of any interest in real or personal
property;
(e) own, hold, maintain, utilize, manage, or operate real or personal property, which
may include the use of agency funds or the collection of revenue;
(f) enter into a lease agreement on real or personal property, either as lessee or lessor;
(g) provide for project area development as provided in this title;
(h) receive and use agency funds as provided in this title;
(i) if disposing of or leasing land, retain controls or establish restrictions and covenants
running with the land consistent with the project area plan;
(j) accept financial or other assistance from any public or private source for the
agency's activities, powers, and duties, and expend any funds the agency receives for any
purpose described in this title;
(k) borrow money or accept financial or other assistance from a public entity or any
other source for any of the purposes of this title and comply with any conditions of any loan or
assistance;
(l) issue bonds to finance the undertaking of any project area development or for any of
the agency's other purposes, including:
(i) reimbursing an advance made by the agency or by a public entity to the agency;
(ii) refunding bonds to pay or retire bonds previously issued by the agency; and
(iii) refunding bonds to pay or retire bonds previously issued by the community that
created the agency for expenses associated with project area development;
(m) pay an impact fee, exaction, or other fee imposed by a community in connection
with land development; [
or
]
(n) subject to Part 10, Agency Taxing Authority, levy a property tax; or
[
(n)
] 
(o)
 transact other business and exercise all other powers described in this title.
(2) The establishment of controls or restrictions and covenants under Subsection (1)(i)
is a public purpose.
(3) An agency may acquire real property under Subsection (1)(c) that is outside a
project area only if the board determines that the property will benefit a project area.
(4) An agency is not subject to Section 
10-8-2
 or 
17-50-312
.
Section 3. Section 
17C-1-402
 is amended to read:
17C-1-402.
Taxing entity committee.
(1) The provisions of this section apply to a taxing entity committee that is created by
an agency for:
(a) a post-June 30, 1993, urban renewal project area plan or economic development
project area plan;
(b) any other project area plan adopted before May 10, 2016, for which the agency
created a taxing entity committee; and
(c) a community reinvestment project area plan adopted before May 14, 2019, that is
subject to a taxing entity committee.
(2) (a) (i) Each taxing entity committee shall be composed of:
(A) two school district representatives appointed in accordance with Subsection
(2)(a)(ii);
(B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
appointed by resolution of the legislative body of the county in which the agency is located; or
(II) in a county of the first class, one representative appointed by the county executive
and one representative appointed by the legislative body of the county in which the agency is
located;
(C) if the agency is created by a municipality, two representatives appointed by
resolution of the legislative body of the municipality;
(D) one representative appointed by the State Board of Education; and
(E) one representative selected by majority vote of the legislative bodies or governing
boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
represent the interests of those taxing entities on the taxing entity committee.
(ii) (A) If the agency boundaries include only one school district, that school district
shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
(B) If the agency boundaries include more than one school district, those school
districts shall jointly appoint the two school district representatives under Subsection
(2)(a)(i)(A).
(b) (i) Each taxing entity committee representative described in Subsection (2)(a) shall
be appointed within 30 days after the day on which the agency provides notice of the creation
of the taxing entity committee.
(ii) If a representative is not appointed within the time required under Subsection
(2)(b)(i), the board may appoint an individual to serve on the taxing entity committee in the
place of the missing representative until that representative is appointed.
(c) (i) A taxing entity committee representative may be appointed for a set term or
period of time, as determined by the appointing authority under Subsection (2)(a)(i).
(ii) Each taxing entity committee representative shall serve until a successor is
appointed and qualified.
(d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
an initial appointment or an appointment to replace an already serving representative, the
appointing authority shall:
(A) notify the agency in writing of the name and address of the newly appointed
representative; and
(B) provide the agency a copy of the resolution making the appointment or, if the
appointment is not made by resolution, other evidence of the appointment.
(ii) Each appointing authority of a taxing entity committee representative under
Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
representative appointed by that appointing authority.
(3) At a taxing entity committee's first meeting, the taxing entity committee shall adopt
an organizing resolution that:
(a) designates a chair and a secretary of the taxing entity committee; and
(b) if the taxing entity committee considers it appropriate, governs the use of electronic
meetings under Section 
52-4-207
.
(4) (a) A taxing entity committee represents all taxing entities regarding:
(i) an urban renewal project area plan;
(ii) an economic development project area plan; or
(iii) a community reinvestment project area plan that is subject to a taxing entity
committee.
(b) A taxing entity committee may:
(i) cast votes that are binding on all taxing entities;
(ii) negotiate with the agency concerning a proposed project area plan;
(iii) approve or disapprove:
(A) an urban renewal project area budget as described in Section 
17C-2-204
;
(B) an economic development project area budget as described in Section 
17C-3-203
;
or
(C) for a community reinvestment project area plan that is subject to a taxing entity
committee, a community reinvestment project area budget as described in Section 
17C-5-302
; 
(iv) approve or disapprove an amendment to a project area budget as described in
Section 
17C-2-206
, 
17C-3-205
, or 
17C-5-306
; 
(v) approve an exception to the limits on the value and size of a project area imposed
under this title;
(vi) approve:
(A) an exception to the percentage of tax increment to be paid to the agency;
(B) except for a project area funds collection period that is approved by an interlocal
agreement, each project area funds collection period; and
(C) an exception to the requirement for an urban renewal project area budget, an
economic development project area budget, or a community reinvestment project area budget
to include a maximum cumulative dollar amount of tax increment that the agency may receive;
(vii) approve the use of tax increment for publicly owned infrastructure and
improvements outside of a project area that the agency and community legislative body
determine to be of benefit to the project area, as described in Subsection
17C-1-409
(1)(a)(iii)[
(D)
]
(E)
;
(viii) waive the restrictions described in Subsection 
17C-2-202
(1);
(ix) subject to Subsection (4)(c), designate the base taxable value for a project area
budget; and
(x) give other taxing entity committee approval or consent required or allowed under
this title.
(c) (i) Except as provided in Subsection (4)(c)(ii), the base year may not be a year that
is earlier than five years before the beginning of a project area funds collection period.
(ii) The taxing entity committee may approve a base year that is earlier than the year
described in Subsection (4)(c)(i).
(5) A quorum of a taxing entity committee consists of:
(a) if the project area is located within a municipality, five members; or
(b) if the project area is not located within a municipality, four members.
(6) Taxing entity committee approval, consent, or other action requires:
(a) the affirmative vote of a majority of all members present at a taxing entity
committee meeting:
(i) at which a quorum is present; and
(ii) considering an action relating to a project area budget for, or approval of a
development impediment determination within, a project area or proposed project area that
contains:
(A) an inactive industrial site;
(B) an inactive airport site; or
(C) a closed military base; or
(b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
two-thirds of all members present at a taxing entity committee meeting at which a quorum is
present.
(7) (a) An agency may call a meeting of the taxing entity committee by sending written
notice to the members of the taxing entity committee at least 10 days before the date of the
meeting.
(b) Each notice under Subsection (7)(a) shall be accompanied by:
(i) the proposed agenda for the taxing entity committee meeting; and
(ii) if not previously provided and if the documents exist and are to be considered at
the meeting:
(A) the project area plan or proposed project area plan;
(B) the project area budget or proposed project area budget;
(C) the analysis required under Subsection 
17C-2-103
(2), 
17C-3-103
(2), or
17C-5-105
(12);
(D) the development impediment study;
(E) the agency's resolution making a development impediment determination under
Subsection 
17C-2-102
(1)(a)(ii)(B) or 
17C-5-402
(2)(c)(ii); and
(F) other documents to be considered by the taxing entity committee at the meeting.
(c) (i) An agency may not schedule a taxing entity committee meeting on a day on
which the Legislature is in session.
(ii) Notwithstanding Subsection (7)(c)(i), a taxing entity committee may, by unanimous
consent, waive the scheduling restriction described in Subsection (7)(c)(i).
(8) (a) A taxing entity committee may not vote on a proposed project area budget or
proposed amendment to a project area budget at the first meeting at which the proposed project
area budget or amendment is considered unless all members of the taxing entity committee
present at the meeting consent.
(b) A second taxing entity committee meeting to consider a proposed project area
budget or a proposed amendment to a project area budget may not be held within 14 days after
the first meeting unless all members of the taxing entity committee present at the first meeting
consent.
(9) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
Public Meetings Act.
(10) A taxing entity committee's records shall be:
(a) considered the records of the agency that created the taxing entity committee; and
(b) maintained by the agency in accordance with Section 
17C-1-209
.
(11) Each time a school district representative or a representative of the State Board of
Education votes as a member of a taxing entity committee to allow an agency to receive tax
increment, to increase the amount of tax increment the agency receives, or to extend a project
area funds collection period, that representative shall, within 45 days after the vote, provide to
the representative's respective school board an explanation in writing of the representative's
vote and the reasons for the vote.
(12) (a) The auditor of each county in which an agency is located shall provide a
written report to the taxing entity committee stating, with respect to property within each
project area:
(i) the base taxable value, as adjusted by any adjustments under Section 
17C-1-408
;
and
(ii) the assessed value.
(b) With respect to the information required under Subsection (12)(a), the auditor shall
provide:
(i) actual amounts for each year from the adoption of the project area plan to the time
of the report; and
(ii) estimated amounts for each year beginning the year after the time of the report and
ending the time that each project area funds collection period ends.
(c) The auditor of the county in which the agency is located shall provide a report
under this Subsection (12):
(i) at least annually; and
(ii) upon request of the taxing entity committee, before a taxing entity committee
meeting at which the committee considers whether to allow the agency to receive tax
increment, to increase the amount of tax increment that the agency receives, or to extend a
project area funds collection period.
(13) This section does not apply to:
(a) a community development project area plan; or
(b) a community reinvestment project area plan that is subject to an interlocal
agreement.
(14) (a) A taxing entity committee resolution approving a development impediment
determination, approving a project area budget, or approving an amendment to a project area
budget:
(i) is final; and
(ii) is not subject to repeal, amendment, or reconsideration unless the agency first
consents by resolution to the proposed repeal, amendment, or reconsideration.
(b) The provisions of Subsection (14)(a) apply regardless of when the resolution is
adopted.
Section 4. Section 
17C-1-409
 is amended to read:
17C-1-409.
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) 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;
(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; [
or
]
(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 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 36, Uniform Fiscal Procedures Act for
Counties, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local 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 Sales and Use
Tax 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
[
(3)
]
(1)
(a)(x) may not exceed the community's annual local contribution as defined
in Section 
35A-8-606
. 
Section 5. Section 
17C-1-502
 is amended to read:
17C-1-502.
Sources from which bonds may be made payable -- Agency powers
regarding bonds.
[
(1) The principal and interest on a bond issued by an agency may be paid from:
]
(1) An agency may pay the principal and interest on a bond issued by the agency from:
(a) the income and revenues of the project area development financed with the
proceeds of the bond;
(b) the income and revenue of certain designated project area development regardless
of whether the project area development is financed in whole or in part with the proceeds of the
bond;
(c) the income, proceeds, revenue, property, or agency funds derived from or held in
connection with the agency's undertaking and implementation of project area development;
(d) project area funds;
(e) agency revenues generally;
(f) a contribution, loan, grant, or other financial assistance from a public entity in aid of
project area development, including the assignment of revenue or taxes in support of an agency
bond; [
or
]
(g) 
project area incremental revenue or property tax revenue as those terms are defined
in Section 
17C-1-1001
; or
(h)
 funds derived from any combination of the methods listed in Subsections (1)(a)
through [
(f)
] 
(g)
.
(2) In connection with the issuance of an agency bond, an agency may:
(a) pledge all or any part of the agency's gross or net rents, fees, or revenues to which
the agency's right then exists or may thereafter come into existence;
(b) encumber by mortgage, deed of trust, or otherwise all or any part of the agency's
real or personal property, then owned or thereafter acquired; and
(c) make the covenants and take the action that:
(i) may be necessary, convenient, or desirable to secure the bond; or
(ii) except as otherwise provided in this chapter, will tend to make the bond more
marketable, even though such covenants or actions are not specifically enumerated in this
chapter.
Section 6. Section 
17C-1-605
 is amended to read:
17C-1-605.
Audit report.
(1) Each agency required to be audited under Section 
17C-1-604
 shall, within 180 days
after the end of the agency'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 from which
the agency receives tax increment.
(2) Each audit report under Subsection (1) shall include:
(a) the tax increment collected by the agency for each project area;
(b) the amount of tax increment paid to each taxing entity under Section 
17C-1-410
;
(c) the outstanding principal amount of bonds issued or other loans incurred to finance
the costs associated with the agency's project areas; [
and
]
(d) 
the amount of property tax revenue generated under Part 10, Agency Taxing
Authority; and
(e)
 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 agency.
Section 7. Section 
17C-1-1001
 is enacted to read:
Part 10. Agency Taxing Authority
 17C-1-1001.
Definitions.
As used in this part:
(1) (a) "Agency-wide project development" means activity within the agency's
boundaries that, as determined by the board, encourages, promotes, or provides development or
redevelopment for the purpose of achieving the results described in an implementation plan,
including affordable housing.
(b) "Agency-wide project development" does not include project area development
under a project area plan.
(2) "Certified tax rate" means the same as that term is defined in Section 
59-2-924
.
(3) "Cooperative development project" means project area development with impacts
that extend beyond an agency's geographic boundaries to the benefit of two or more
communities.
(4) "Economic development project" means project area development for the purpose
of:
(a) creating, developing, attracting, and retaining business;
(b) creating or preserving jobs;
(c) stimulating business and economic activity; or
(d) providing a local incentive as required by the Governor's Office of Economic
Development under Title 63N, Governor's Office of Economic Development.
(5) "Eligible taxing entity" means a taxing entity that:
(a) is a municipality, a county, or a school district; and
(b) contains an agency partially or completely within the taxing entity's geographic
boundaries.
(6) "Implementation plan" means a plan adopted in accordance with Section
17C-1-1004
 that:
(a) describes how the agency uses property tax revenue; and
(b) guides and controls agency-wide project development.
(7) "Project area incremental revenue" means the amount of revenue generated by the
incremental value that a taxing entity receives after a project area funds collection period ends.
(8) "Property tax revenue" means the amount of revenue generated by an agency from
the property within the agency using the current taxable value of the property and the agency's
certified tax rate.
Section 8. Section 
17C-1-1002
 is enacted to read:
 17C-1-1002.
Transferring project area incremental revenue -- Agency may levy a
property tax.
(1) An agency and an eligible taxing entity may enter into an interlocal agreement for
the purpose of transferring all or a portion of the eligible taxing entity's project area
incremental revenue.
(2) An agency shall ensure that an interlocal agreement described in Subsection (1):
(a) identifies each project area that is subject to the interlocal agreement;
(b) is adopted by the board and the taxing entity in accordance with Section
17C-1-1003
;
(c) for each project area:
(i) states the amount of project area incremental revenue that the eligible taxing entity
agrees to transfer to the agency;
(ii) states the year in which the eligible taxing entity will transfer the amount described
in Subsection (2)(c)(i); and
(iii) for the year described in Subsection (2)(c)(ii), requires the agency to add the
project area incremental revenue transferred in the agency's budget;
(d) includes a copy of the implementation plan described in Section 
17C-1-1004
;
(e) requires the agency to dissolve, in accordance with Section 
17C-1-702
, any project
area:
(i) that is subject to the interlocal agreement; and
(ii) for which the project area funds collection period will expire; and
(f) is filed with the county auditor, the State Tax Commission, and the eligible taxing
entity.
(3) If an agency and an eligible taxing entity enter into an interlocal agreement under
this section:
(a) subject to Subsection (4) and Section 
17C-1-1004
, the agency may levy a property
tax on taxable property within the agency's geographic boundaries; and
(b) except as provided in Subsection (5), the agency may not:
(i) create a new community reinvestment project area within the taxing entity's
geographic boundaries; or
(ii) amend a project area plan or budget if the amendment:
(A) enlarges the project area from which tax increment is collected;
(B) permits the agency to receive a greater amount of tax increment; or
(C) extends the project area funds collection period.
(4) (a) An agency may levy a property tax for a fiscal year that:
(i) is after the year in which the agency receives project area incremental revenue; and
(ii) begins on or after the January 1 on which the agency has authority to impose a
property tax under this section.
(b) An agency board shall calculate the agency's certified tax rate in accordance with
Section 
59-2-924
.
(c) An agency may levy a property tax rate that exceeds the agency's certified rate only
if the agency complies with Sections 
59-2-919
 through 
59-2-923
.
(5) For a cooperative development project or an economic development project, an
agency may, in accordance with Chapter 5, Community Reinvestment:
(a) create a new community reinvestment project area; or
(b) amend a community reinvestment project area plan or budget.
Section 9. Section 
17C-1-1003
 is enacted to read:
 17C-1-1003.
Interlocal agreement -- Notice requirements -- Effective date.
(1) An agency that enters into an interlocal agreement under Section 
17C-1-1002
 shall:
(a) adopt the interlocal agreement at an open and public meeting; and
(b) provide a notice, in accordance with Subsections (2) and (3), titled "Authorization
to Levy a Property Tax."
(2) Upon the execution of an interlocal agreement, the agency shall provide, subject to
Subsection (3), notice of the execution by:
(a) (i) publishing the notice in a newspaper of general circulation within the agency's
geographic boundaries; or
(ii) if there is no newspaper of general circulation within the agency's geographic
boundaries, posting the notice in at least three public places within the agency's geographic
boundaries; and
(b) posting the notice on the Utah Public Notice Website created in Section 
63F-1-701
.
(3) A notice described in Subsection (2) shall include:
(a) a summary of the interlocal agreement; and
(b) a statement that the interlocal agreement:
(i) is available for public inspection and the place and the hours for inspection; and
(ii) authorizes the agency to:
(A) receive all or a portion of a taxing entity's project area incremental revenue; and
(B) levy a property tax on taxable property within the agency's boundaries.
(4) An interlocal agreement described in Section 
17C-1-1002
 is effective the day on
which the notice is published or posted in accordance with Subsections (2) and (3).
(5) An eligible taxing entity that enters into an interlocal agreement under Section
17C-1-1002
 shall make a copy of the interlocal agreement available to the public for inspecting
and copying at the eligible taxing entity's office during normal business hours.
Section 10. Section 
17C-1-1004
 is enacted to read:
 17C-1-1004.
Plan hearing -- Implementation plan -- Use of an agency's property
tax revenue -- Eminent domain.
(1) Before an agency may levy a property tax, an agency board shall hold a plan
hearing in accordance with Chapter 1, Part 8, Hearing and Notice Requirements, to:
(a) adopt an implementation plan that:
(i) contains a boundary description and a map of the geographic area within which the
agency will use the agency's property tax revenue;
(ii) contains a general description of the existing land uses, zoning, infrastructure
conditions, population densities, and demographics of the area described in Subsection
(1)(b)(i);
(iii) describes the physical, social, and economic conditions that exist in the area
described in Subsection (1)(b)(i);
(iv) describes the goals and strategies that will guide the agency's use of property tax
revenue;
(v) shows how agency-wide project development will further the purposes of this title;
(vi) is consistent with the general plan of the community that created the agency and
shows that agency-wide project development will conform to the community's general plan;
(vii) generally describes the type of financial assistance and tools that the agency
anticipates providing to participants;
(viii) includes an analysis or description of the anticipated public benefits resulting
from agency-wide project development, including benefits to economic activity and taxing
entities' tax bases;
(ix) includes any identified geographic target areas within which the agency will focus
investment; and
(x) includes other information that the agency determines to be necessary or advisable;
(b) inform the public about:
(i) the amount of revenue that the agency will receive as property tax revenue that a
participating taxing entity would have otherwise received;
(ii) the property tax rate that the agency will levy;
(iii) any changes to the use of revenue; and
(iv) how the agency will be using property tax revenue under the implementation plan;
and
(c) allow individuals present at the plan hearing to comment on the proposed property
tax.
(2) An agency that levies a property tax under this part shall allocate an amount of
property tax revenue for housing:
(a) in an amount that is the same as the agency's housing allocation under Section
17C-5-307
 before entering into an interlocal agreement under Section 
17C-1-1002
; and
(b) for a period of time that is the same as the agency's project area funds collection
period before entering into an interlocal agreement under Section 
17C-1-1002
.
(3) (a) Except as provided in Subsection (3)(b), an agency that levies a property tax
under this part may not use eminent domain to acquire property for agency-wide project
development.
(b) An agency that levies a property tax under this part may use eminent domain for an
urban renewal project area or a community reinvestment project area in accordance with Part 9,
Eminent Domain.
Section 11. Section 
17C-1-1005
 is enacted to read:
 17C-1-1005.
Agency property tax levy -- Budget -- Accounting for property tax
revenue.
(1) (a) Each agency that levies and collects property tax under this part shall levy and
collect the property tax in accordance with Title 59, Chapter 2, Property Tax Act.
(b) Except as provided in Subsection (1)(c), an agency, at a regular meeting or special
meeting called for that purpose, shall, by resolution, set the property tax rate by the date
described in Section 
59-2-912
.
(c) An agency may set the rate described in Subsection (1)(b) at an appropriate later
date in accordance with Sections 
59-2-919
 through 
59-2-923
.
(2) (a) An agency shall include in the agency's budget any project area incremental
revenue transferred by an eligible taxing entity under this part.
(b) The amount of project area incremental revenue described in Subsection (2)(a) plus
the ad valorem property tax revenue that the agency budgeted for the prior year shall constitute
the basis for determining the property tax levy that the agency sets for the corresponding tax
year.
(3) (a) An agency shall create a property tax revenue fund and separately account for
property tax revenue generated under this part.
(b) An agency shall include revenue and expenditures of the property tax revenue fund
described in Subsection (3)(a) in the annual budget adopted in accordance with Section
17C-1-601.5
.
Section 12. Section 
17C-2-110
 is amended to read:
17C-2-110.
Amending an urban renewal project area plan.
[
(1) An
] 
(1) Except as provided in Section 
17C-1-1002
, an
 agency may amend an
urban renewal project area plan as provided in this section.
(2) If an agency proposes to amend an urban renewal project area plan to enlarge the
project area:
(a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
a project area plan apply equally to the proposed amendment as if it were a proposed project
area plan;
(b) for a pre-July 1, 1993, project area plan, the base year for the new area added to the
project area shall be determined under Subsection 
17C-1-102
(9) using the effective date of the
amended project area plan;
(c) for a post-June 30, 1993, project area plan:
(i) the base year for the new area added to the project area shall be determined under
Subsection 
17C-1-102
(9) using the date of the taxing entity committee's consent referred to in
Subsection (2)(c)(ii); and
(ii) the agency shall obtain the consent of the taxing entity committee before the agency
may collect tax increment from the area added to the project area by the amendment;
(d) the agency shall make a determination regarding the existence of a development
impediment in the area proposed to be added to the project area by following the procedure set
forth in Chapter 2, Part 3, Development Impediment Determination in Urban Renewal Project
Areas; and
(e) the agency need not make a development impediment determination in the project
area as described in the original project area plan, if the agency made a development
impediment determination regarding that project area in connection with adoption of the
original project area plan.
(3) If a proposed amendment does not propose to enlarge an urban renewal project
area, a board may adopt a resolution approving an amendment to a project area plan after:
(a) the agency gives notice, as provided in Section 
17C-1-806
, of the proposed
amendment and of the public hearing required by Subsection (3)(b);
(b) the board holds a public hearing on the proposed amendment that meets the
requirements of a plan hearing;
(c) the agency obtains the taxing entity committee's consent to the amendment, if the
amendment proposes:
(i) to enlarge the area within the project area from which tax increment is collected;
(ii) to permit the agency to receive a greater percentage of tax increment or to extend
the project area funds collection period, or both, than allowed under the adopted project area
plan; or
(iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
expand the area from which tax increment is collected to exceed 100 acres of private property;
and
(d) the agency obtains the consent of the legislative body or governing board of each
taxing entity affected, if the amendment proposes to permit the agency to receive, from less
than all taxing entities, a greater percentage of tax increment or to extend the project area funds
collection period, or both, than allowed under the adopted project area plan.
(4) (a) An agency may amend an urban renewal project area plan without complying
with the notice and public hearing requirements of Subsections [
(2)(a) and
] (3)(a) and (b) and
without obtaining taxing entity committee approval under Subsection (3)(c) if the amendment:
(i) makes a minor adjustment in the boundary description of a project area boundary
requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
or
(ii) subject to Subsection (4)(b), removes one or more parcels from a project area
because the agency determines that each parcel removed is:
(A) tax exempt;
(B) without a development impediment; or
(C) no longer necessary or desirable to the project area.
(b) An agency may make an amendment removing one or more parcels from a project
area under Subsection (4)(a)(ii) without the consent of the record property owner of each parcel
being removed.
(5) (a) An amendment approved by board resolution under this section may not take
effect until adopted by ordinance of the legislative body of the community in which the project
area that is the subject of the project area plan being amended is located.
(b) Upon a community legislative body passing an ordinance adopting an amendment
to a project area plan, the agency whose project area plan was amended shall comply with the
requirements of Sections 
17C-2-108
 and 
17C-2-109
 to the same extent as if the amendment
were a project area plan.
(6) (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)(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 13. Section 
17C-2-206
 is amended to read:
17C-2-206.
Amending an urban renewal project area budget.
[
(1) An
] 
(1) Except as provided in Section 
17C-1-1002
, an
 agency may by resolution
amend an urban renewal project area budget as provided in this section.
(2) To amend an adopted urban renewal project area budget, the agency shall:
(a) advertise and hold one public hearing on the proposed amendment as provided in
Subsection (3);
(b) if approval of the taxing entity committee was required for adoption of the original
project area budget, obtain the approval of the taxing entity committee to the same extent that
the agency was required to obtain the consent of the taxing entity committee for the project
area budget as originally adopted;
(c) if approval of the taxing entity committee is required under Subsection (2)(b),
obtain a written certification, signed by an attorney licensed to practice law in this state, stating
that the taxing entity committee followed the appropriate procedures to approve the project
area budget; and
(d) adopt a resolution amending the project area budget.
(3) The public hearing required under Subsection (2)(a) shall be conducted according
to the procedures and requirements of Subsections 
17C-2-201
(2)(c) and (d), except that if the
amended project area budget proposes that the agency be paid a greater proportion of tax
increment from a project area than was to be paid under the previous project area budget, the
notice shall state the percentage paid under the previous project area budget and the percentage
proposed under the amended project area budget.
(4) If the removal of a parcel under Subsection 
17C-2-110
(4)(a)(ii) reduces the base
taxable value of the project area, an agency may amend the project area budget to conform with
the new base taxable value without:
(a) complying with Subsections (2)(a) and (3); and
(b) if applicable, obtaining taxing entity committee approval described in Subsection
(2)(b). 
(5) If a proposed amendment is not adopted, the agency shall continue to operate under
the previously adopted project area budget without the proposed amendment.
(6) (a) A person may contest the agency's adoption of a budget amendment within 30
days after the day on which the agency adopts the amendment.
(b) A person who fails to contest a budget amendment under Subsection (6)(a):
(i) forfeits any claim against an agency's adoption of the amendment; and
(ii) may not contest:
(A) a distribution of tax increment to the agency under the budget amendment; or
(B) an agency's use of a tax increment under the budget amendment.
Section 14. Section 
17C-2-207
 is amended to read:
17C-2-207.
Extending collection of tax increment in an urban renewal project
area budget.
(1) An extension approved by a taxing entity or taxing entity committee before May
10, 2011, is not subject to this section.
(2) (a) [
An
] 
Except as provided in Section 
17C-1-1002
, an
 agency's collection of tax
increment under an urban renewal project area budget may be extended by:
(i) following the project area budget amendment procedures outlined in Section
17C-2-206
; or
(ii) following the procedures outlined in this section.
(b) The base taxable value for an urban renewal project area budget may not be altered
as a result of an extension under this section unless otherwise expressly provided for in an
interlocal agreement adopted in accordance with Subsection (3)(a).
(3) Except as provided in Subsection (4), to extend under this section the project area
funds collection period under a previously approved project area budget, the agency shall:
(a) obtain the approval of the taxing entity through an interlocal agreement;
(b) (i) hold a public hearing on the proposed extension in accordance with Subsection
17C-2-201
(2)(d) in the same manner as required for a proposed project area budget; and
(ii) provide notice of the hearing:
(A) as required by Chapter 1, Part 8, Hearing and Notice Requirements; and
(B) including the proposed project area budget's extension period; and
(c) after obtaining the taxing entity's approval in accordance with Subsection (3)(a), at
or after the public hearing, adopt a resolution approving the extension.
(4) (a) Subject to Subsection (4)(b), to extend under this section the project area funds
collection period under a previously approved project area budget for a project area that
includes an inactive industrial site, the agency shall:
(i) hold a public hearing on the proposed extension in accordance with Subsection
17C-2-201
(2)(d) in the same manner as required for a proposed project area budget;
(ii) provide notice of the hearing as required by Chapter 1, Part 8, Hearing and Notice
Requirements, including notice of the proposed project area budget's extension period; and
(iii) at or after the public hearing, adopt a resolution approving the extension.
(b) An extension under Subsection (4)(a) may not extend the length of time that tax
increment is collected from any single tax parcel.
(5) After the project area funds collection period expires, an agency may continue to
receive project area funds from those taxing entities that agree to an extension through an
interlocal agreement in accordance with Subsection (3)(a) or through the process described in
Subsection (4).
(6) (a) A person may contest the agency's adoption of an extension within 30 days after
the day on which the agency adopts the resolution providing for the extension.
(b) A person that fails to contest an extension under Subsection (6)(a):
(i) shall forfeit any claim against the agency's adoption of the extension; and
(ii) may not contest:
(A) a distribution of tax increment to the agency under the budget, as extended; or
(B) an agency's use of tax increment under the budget, as extended.
Section 15. Section 
17C-3-109
 is amended to read:
17C-3-109.
Amending an economic development project area plan.
(1) [
An
] 
Except as provided in Section 
17C-1-1002
, an agency may amend an
economic development project area plan [
may be amended
] as provided in this section.
(2) If an agency proposes to amend an economic development project area plan to
enlarge the project area:
(a) the requirements under this part that apply to adopting a project area plan apply
equally to the proposed amendment as if it were a proposed project area plan;
(b) the base year for the new area added to the project area shall be determined under
Subsection 
17C-1-102
(9) using the date of the taxing entity committee's consent referred to in
Subsection (2)(c); and
(c) the agency shall obtain the consent of the taxing entity committee before the agency
may collect tax increment from the area added to the project area by the amendment.
(3) If a proposed amendment does not propose to enlarge an economic development 
project area, a board may adopt a resolution approving an amendment to an economic
development project area plan after:
(a) the agency gives notice, as provided in Chapter 1, Part 8, Hearing and Notice
Requirements, of the proposed amendment and of the public hearing required by Subsection
(3)(b);
(b) the board holds a public hearing on the proposed amendment that meets the
requirements of a plan hearing;
(c) the agency obtains the taxing entity committee's consent to the amendment, if the
amendment proposes:
(i) to enlarge the area within the project area from which tax increment is received; or
(ii) to permit the agency to receive a greater percentage of tax increment or to extend
the project area funds collection period under the economic development project area plan; and
(d) the agency obtains the consent of the legislative body or governing board of each
taxing entity affected, if the amendment proposes to permit the agency to receive, from less
than all taxing entities, a greater percentage of tax increment or to extend the project area funds
collection period, or both, than allowed under the economic development project area plan.
(4) (a) An economic development project area plan may be amended without
complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
(b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
amendment:
(i) makes a minor adjustment in the boundary description of a project area boundary
requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
or
(ii) subject to Subsection (4)(b), removes one or more parcels from a project area
because the agency determines that each parcel removed is:
(A) tax exempt; or
(B) no longer necessary or desirable to the project area.
(b) An amendment removing one or more parcels from a project area under Subsection
(4)(a) may be made without the consent of the record property owner of each parcel being
removed.
(5) (a) An amendment approved by board resolution under this section may not take
effect until adopted by ordinance of the legislative body of the community in which the project
area that is the subject of the project area plan being amended is located.
(b) Upon a community legislative body passing an ordinance adopting an amendment
to a project area plan, the agency whose project area plan was amended shall comply with the
requirements of Sections 
17C-3-107
 and 
17C-3-108
 to the same extent as if the amendment
were a project area plan.
(6) (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)(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 16. Section 
17C-3-205
 is amended to read:
17C-3-205.
Amending an economic development project area budget.
(1) [
An
] 
Except as provided in Section 
17C-1-1002
, an
 agency may by resolution
amend an economic development project area budget as provided in this section.
(2) To amend an adopted economic development project area budget, the agency shall:
(a) advertise and hold one public hearing on the proposed amendment as provided in
Subsection (3);
(b) if approval of the taxing entity committee was required for adoption of the original
project area budget, obtain the approval of the taxing entity committee to the same extent that
the agency was required to obtain the consent of the taxing entity committee for the project
area budget as originally adopted;
(c) if approval of the taxing entity committee is required under Subsection (2)(b),
obtain a written certification, signed by an attorney licensed to practice law in this state, stating
that the taxing entity committee followed the appropriate procedures to approve the project
area budget; and
(d) adopt a resolution amending the project area budget.
(3) The public hearing required under Subsection (2)(a) shall be conducted according
to the procedures and requirements of Section 
17C-3-201
, except that if the amended project
area budget proposes that the agency be paid a greater proportion of tax increment from a
project area than was to be paid under the previous project area budget, the notice shall state
the percentage paid under the previous project area budget and the percentage proposed under
the amended project area budget.
(4) If the removal of a parcel under Subsection 
17C-3-109
(4)(a)(ii) reduces the base
taxable value of the project area, an agency may amend the project area budget to conform with
the new base taxable value without:
(a) complying with Subsections (2)(a) and (3); and
(b) if applicable, obtaining taxing entity committee approval described in Subsection
(2)(b). 
(5) If a proposed amendment is not adopted, the agency shall continue to operate under
the previously adopted economic development project area budget without the proposed
amendment.
(6) (a) A person may contest the agency's adoption of a budget amendment within 30
days after the day on which the agency adopts the amendment.
(b) A person [
who
] 
that
 fails to contest a budget amendment under Subsection (6)(a):
(i) forfeits any claim against an agency's adoption of the amendment; and
(ii) may not contest:
(A) a distribution of tax increment to the agency under the budget amendment; or
(B) an agency's use of a tax increment under a budget amendment.
Section 17. Section 
17C-3-206
 is amended to read:
17C-3-206.
Extending collection of tax increment under an economic
development project area budget.
(1) An amendment or extension approved by a taxing entity or taxing entity committee
before May 10, 2011, is not subject to this section.
(2) (a) [
An
] 
Except as provided in Section 
17C-1-1002
, an
 agency's collection of tax
increment under an adopted economic development project area budget may be extended by:
(i) following the project area budget amendment procedures outlined in Section
17C-3-205
; or
(ii) following the procedures outlined in this section.
(b) The base taxable value for an urban renewal project area budget may not be altered
as a result of an extension under this section unless otherwise expressly provided for in an
interlocal agreement adopted in accordance with Subsection (3)(a).
(3) To extend under this section the agency's collection of tax increment from a taxing
entity under a previously approved project area budget, the agency shall:
(a) obtain the approval of the taxing entity through an interlocal agreement;
(b) (i) hold a public hearing on the proposed extension in accordance with Subsection
17C-2-201
(2)(d) in the same manner as required for a proposed project area budget; and
(ii) provide notice of the hearing:
(A) as required by Chapter 1, Part 8, Hearing and Notice Requirements; and
(B) including the proposed period of extension of the project area budget; and
(c) after obtaining the approval of the taxing entity in accordance with Subsection
(3)(a), at or after the public hearing, adopt a resolution approving the extension.
(4) After the expiration of a project area budget, an agency may continue to receive tax
increment from those taxing entities that have agreed to an extension through an interlocal
agreement in accordance with Subsection (3)(a).
(5) (a) A person may contest the agency's adoption of a budget extension within 30
days after the day on which the agency adopts the resolution providing for the extension.
(b) A person [
who
] 
that
 fails to contest a budget extension under Subsection (5)(a):
(i) shall forfeit any claim against the agency's adoption of the extension; and
(ii) may not contest:
(A) a distribution of tax increment to the agency under the budget, as extended; or
(B) an agency's use of tax increment under the budget, as extended.
Section 18. Section 
17C-4-108
 is amended to read:
17C-4-108.
Amending a community development project area plan.
(1) Except as provided in Section 
17C-1-1002
, an agency may amend a community
development project area plan as provided in this section.
[
(1)
] 
(2)
 Except as provided in Subsection [
(2)
] 
(3)
 and Section 
17C-4-109
, the
requirements under this part that apply to adopting a community development project area plan
apply equally to a proposed amendment of a community development project area plan as
though the amendment were a proposed project area plan.
[
(2)
] 
(3)
 (a) Notwithstanding Subsection [
(1)
] 
(2)
, a community development project
area plan may be amended without complying with the requirements of Chapter 1, Part 8,
Hearing and Notice Requirements, if the proposed amendment:
(i) makes a minor adjustment in the boundary description of a project area boundary
requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
or
(ii) subject to Subsection [
(2)
] 
(3)
(b), removes one or more parcels from a project area
because the agency determines that each parcel removed is:
(A) tax exempt; or
(B) no longer necessary or desirable to the project area.
(b) An amendment removing one or more parcels from a community development
project area under Subsection [
(2)
] 
(3)
(a)(ii) may be made without the consent of the record
property owner of each parcel being removed.
[
(3)
] 
(4)
 (a) An amendment approved by board resolution under this section may not
take effect until adopted by ordinance of the legislative body of the community in which the
project area that is the subject of the project area plan being amended is located.
(b) Upon a community legislative body passing an ordinance adopting an amendment
to a community development project area plan, the agency whose project area plan was
amended shall comply with the requirements of Sections 
17C-4-106
 and 
17C-4-107
 to the
same extent as if the amendment were a project area plan.
[
(4)
] 
(5)
 (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 [
(4)
] 
(5)
(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 19. Section 
17C-5-102
 is amended to read:
17C-5-102.
Applicability of chapter.
This chapter applies to a community reinvestment project area 
that:
(1) an agency
 created on or after May 10, 2016
; and
(2) an agency, that has entered into an interlocal agreement and levies a property tax
under Chapter 1, Part 10, Agency Taxing Authority, created for a cooperative development
project or an economic development project as those terms are defined in Section 
17C-1-1001
.
Section 20. Section 
17C-5-112
 is amended to read:
17C-5-112.
Amending a community reinvestment project area plan.
[
(1) An
] 
(1) Except as provided in Section 
17C-1-1002
, 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 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
(3); 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
] 
Subsections
 (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) If a board has not made a determination under Part 4, Development Impediment
Determination in a Community Reinvestment Project Area, but intends to use eminent domain
within a community reinvestment project area, the agency may amend the community
reinvestment project area plan in accordance with this Subsection (4).
(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 a development impediment exists;
(ii) in accordance with Part 4, Development Impediment Determination in a
Community Reinvestment Project Area, conduct a development impediment study within the
survey area and make a development impediment determination; and
(iii) obtain approval to amend the community reinvestment project area plan from each
taxing entity that is a 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.
(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 one or more parcels from a community reinvestment project area because
the agency determines that each parcel is:
(i) tax exempt;
(ii) without a development impediment; or
(iii) no longer necessary or desirable to the project area.
(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 (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.
(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 (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 21. Section 
17C-5-306
 is amended to read:
17C-5-306.
Amending a community reinvestment project area budget.
(1) [
Before
] 
Except as provided in Section 
17C-1-1002
 and 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
(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 22. Section 
53G-7-306
 is amended to read:
53G-7-306.
School district interfund transfers.
(1) A school district shall spend revenues only within the fund for which they were
originally authorized, levied, collected, or appropriated.
(2) Except as otherwise provided in this section, school district interfund transfers of
residual equity are prohibited.
(3) The state board may authorize school district interfund transfers of residual equity
when a district states its intent to create a new fund or expand, contract, or liquidate an existing
fund.
(4) The state board may also authorize school district interfund transfers of residual
equity for a financially distressed district if the state board determines the following:
(a) the district has a significant deficit in its maintenance and operations fund caused
by circumstances not subject to the administrative decisions of the district;
(b) the deficit cannot be reasonably reduced under Section 
53G-7-305
; and
(c) without the transfer, the school district will not be capable of meeting statewide
educational standards adopted by the state board.
(5) The state board shall develop by rule made in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act, standards for defining and aiding financially
distressed school districts under this section.
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
and reported in the debt service fund.
(b) Debt service levies under Subsection 
59-2-924
(5)[
(c)
]
(d)
 that are not subject to the
public hearing provisions of Section 
59-2-919
 may not be used for any purpose other than
retiring general obligation debt.
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
year shall be used in subsequent years for general obligation debt retirement.
(d) Any amounts left in the debt service fund after all general obligation debt has been
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
process required under Section 
53G-7-303
.
Section 23. Section 
59-2-924
 is amended to read:
59-2-924.
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 an agency created under Section 
17C-1-201.5
, the same as that term is defined
in Section 
17C-1-102
;
(iii) for an authority created under Section 
63H-1-201
, the same as that term is defined
in Section 
63H-1-102
; or
(iv) for a host local government, the same as that term is defined in Section 
63N-2-502
.
(e) "Centrally assessed benchmark value" means an amount equal to the highest year
end taxable value of real and personal property the commission assesses in accordance with
Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
2015, adjusted for taxable value attributable to:
(i) an annexation to a taxing entity; or
(ii) an incorrect allocation of taxable value of real or personal property the commission
assesses in accordance with Part 2, Assessment of Property. 
(f) (i) "Centrally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the centrally assessed benchmark value
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 the
current year, adjusted for current year incremental value.
(ii) "Centrally assessed new growth" does not include 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.
(g) "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.
(h) "Community reinvestment agency" means the same as that term is defined in
Section 
17C-1-102
.
[
(h)
] 
(i)
 "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.
[
(i)
] 
(j)
 "Host local government" means the same as that term is defined in Section
63N-2-502
.
[
(j)
] 
(k)
 "Hotel property" means the same as that term is defined in Section 
63N-2-502
.
[
(k)
] 
(l)
 "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.
[
(l)
] 
(m)
 "Incremental property tax revenue" means the same as that term is defined in
Section 
63N-2-502
.
[
(m)
] 
(n)
 "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 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;
(iii) 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; or
(iv) 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.
[
(n)
] 
(o)
 (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.
[
(o)
] 
(p)
 "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 an agency created under Section 
17C-1-201.5
, the same as that term is defined
in Section 
17C-1-102
; or
(iii) for an authority created under Section 
63H-1-201
, the same as that term is defined
in Section 
63H-1-102
.
[
(p)
] 
(q)
 "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 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; or
(iii) 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.
(r) "Project area incremental revenue" means the same as that term is defined in
Section 
17C-1-1001
.
[
(q)
] 
(s)
 "Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
[
(r)
] 
(t)
 "Property tax differential" means the same as that term is defined in Section
11-58-102
.
[
(s)
] 
(u)
 "Tax increment" means the same as that term is defined in Section 
17C-1-102
.
(2) Before June 1 of each year, the county assessor of each county 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 Sections 
17-34-1
 and 
17-36-9
; 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 
17-34-1
 and Subsection 
17-36-3
(23); [
and
]
(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
[
(c)
] 
(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 judgment levy imposed under Section 
59-2-1328
 or 
59-2-1330
 may be
imposed 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, a taxing entity shall annually 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).