Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 438 Second Substitute (2022GS)

Sponsor

Rep. Snow, V. L.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• authorizes the Point of the Mountain State Land Authority to impose an energy sales and use tax and to collect impact fees and other development fees;
• modifies the membership of a loan committee;
• moves the ability to approve a loan from the loan committee to the Authority board and requires Executive Appropriations Committee approval for a loan from the point of the mountain loan fund;
• modifies a provision relating to Authority powers;
• requires a lessee of point of the mountain state land to pay an annual fee and provides for the levy and collection of the fee;
• requires the Authority to be paid a portion of increased property tax revenue from parcels of land transferred to a private owner;
• modifies limitations on individuals serving as board members;
• modifies the purposes of a closed meeting to include certain discussions relating to the development of land owned by the state;
• modifies provisions relating to an Authority infrastructure fund; and
• makes technical changes.

Every vote on this bill

Bill text

POINT OF THE MOUNTAIN STATE LAND AUTHORITY
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: V. Lowry Snow
Senate Sponsor: 
Jerry W. Stevenson
LONG TITLE
General Description:
This bill modifies provisions relating to the Point of the Mountain State Land
Authority.
Highlighted Provisions:
This bill:
▸ authorizes the Point of the Mountain State Land Authority to impose an energy sales
and use tax and to collect impact fees and other development fees;
▸ modifies the membership of a loan committee;
▸ moves the ability to approve a loan from the loan committee to the Authority board
and requires Executive Appropriations Committee approval for a loan from the
point of the mountain loan fund;
▸ modifies a provision relating to Authority powers;
▸ requires a lessee of point of the mountain state land to pay an annual fee and
provides for the levy and collection of the fee;
▸ requires the Authority to be paid a portion of increased property tax revenue from
parcels of land transferred to a private owner;
▸ modifies limitations on individuals serving as board members;
▸ modifies the purposes of a closed meeting to include certain discussions relating to
the development of land owned by the state;
▸ modifies provisions relating to an Authority infrastructure fund; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-1-304
, as last amended by Laws of Utah 2021, Chapter 414 and last amended by
Coordination Clause, Laws of Utah 2021, Chapter 367
11-36a-102
, as last amended by Laws of Utah 2021, Chapter 35
11-59-102
, as last amended by Laws of Utah 2021, Chapter 415
11-59-104
, as enacted by Laws of Utah 2021, Chapter 415
11-59-202
, as last amended by Laws of Utah 2020, Chapter 354
11-59-306
, as enacted by Laws of Utah 2018, Chapter 388
17D-4-102
, as last amended by Laws of Utah 2021, Chapter 415 and renumbered and
amended by Laws of Utah 2021, Chapter 314
52-4-205
, as last amended by Laws of Utah 2021, Chapters 179 and 231
59-2-924
, as last amended by Laws of Utah 2021, Chapters 214 and 388
63A-3-401.5
, as enacted by Laws of Utah 2021, Chapter 415
63A-3-402
, as enacted by Laws of Utah 2021, Chapter 415
63A-3-404
, as enacted by Laws of Utah 2021, Chapter 415
ENACTS:
11-59-205
, Utah Code Annotated 1953
11-59-206
, Utah Code Annotated 1953
11-59-207
, Utah Code Annotated 1953
11-59-208
, Utah Code Annotated 1953
REPEALS:
11-59-101
, as enacted by Laws of Utah 2018, Chapter 388
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-1-304
 is amended to read:
10-1-304.
Municipality, military installation development authority, and Point of
the Mountain State Land Authority may levy tax -- Rate -- Imposition or repeal of tax --
Tax rate change -- Effective date -- Notice requirements -- Exemptions.
(1) (a) Except as provided in Subsections (4) and (5), a municipality may levy a
municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
(i) by ordinance as provided in Section 
10-1-305
; and
(ii) of up to 6% of the delivered value of the taxable energy.
(b) Subject to Section 
63H-1-203
, the military installation development authority
created in Section 
63H-1-201
 may levy a municipal energy sales and use tax under this part
within a project area described in a project area plan adopted by the authority under Title 63H,
Chapter 1, Military Installation Development Authority Act, as though the authority were a
municipality.
(c) (i) Beginning July 1, 2022, the Point of the Mountain State Land Authority, created
in Section 
11-59-201
, may by resolution levy a municipal energy sales and use tax under this
part within the area that constitutes the point of the mountain state land, as defined in Section
11-59-102
, as though the Point of the Mountain State Land Authority were a municipality.
(ii) The Point of the Mountain State Land Authority's adoption of a resolution under
Subsection (1)(c)(i) that otherwise complies with the requirements under this part applicable to
an ordinance is considered the equivalent of adopting an ordinance under this part.
(2) A municipal energy sales and use tax imposed under this part may be in addition to
any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
Tax Act.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
Annexation.
(ii) "Annexing area" means an area that is annexed into a municipality.
(b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(b)(ii) from the municipality.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of a tax under this
part;
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in
Subsection (3)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
result in a change in the rate of a tax under this part for an annexing area, the change shall take
effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
(4) (a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
exempt from the tax authorized by this section if the sale or use is made under a tariff adopted
by the Public Service Commission of Utah only for purchase of electricity produced from a
new source of alternative energy, as defined in Section 
59-12-102
, as designated in the tariff by
the Public Service Commission of Utah.
(b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
(5) (a) A municipality may not levy a municipal energy sales and use tax
:
 (i)
 within any portion of the municipality that is within a project area described in a
project area plan adopted by the military installation development authority under Title 63H,
Chapter 1, Military Installation Development Authority Act[
.
]
; or
(ii) on or after July 1, 2022, within the point of the mountain state land, as defined in
Section 
11-59-102
.
(b) Subsection (5)(a) does not apply to
:
(i)
 the military installation development authority's levy of a municipal energy sales
and use tax[
.
]
; or
(ii) the Point of the Mountain State Land Authority's levy of a municipal energy sales
and use tax.
Section 2. Section 
11-36a-102
 is amended to read:
11-36a-102.
Definitions.
As used in this chapter:
(1) (a) "Affected entity" means each county, municipality, local district under Title
17B, Limited Purpose Local Government Entities - Local Districts, special service district
under Title 17D, Chapter 1, Special Service District Act, school district, interlocal cooperation
entity established under Chapter 13, Interlocal Cooperation Act, and specified public utility:
(i) whose services or facilities are likely to require expansion or significant
modification because of the facilities proposed in the proposed impact fee facilities plan; or
(ii) that has filed with the local political subdivision or private entity a copy of the
general or long-range plan of the county, municipality, local district, special service district,
school district, interlocal cooperation entity, or specified public utility.
(b) "Affected entity" does not include the local political subdivision or private entity
that is required under Section 
11-36a-501
 to provide notice.
(2) "Charter school" includes:
(a) an operating charter school;
(b) an applicant for a charter school whose application has been approved by a charter
school authorizer as provided in Title 53G, Chapter 5, Part 6, Charter School Credit
Enhancement Program; and
(c) an entity that is working on behalf of a charter school or approved charter applicant
to develop or construct a charter school building.
(3) "Development activity" means any construction or expansion of a building,
structure, or use, any change in use of a building or structure, or any changes in the use of land
that creates additional demand and need for public facilities.
(4) "Development approval" means:
(a) except as provided in Subsection (4)(b), any written authorization from a local
political subdivision that authorizes the commencement of development activity;
(b) development activity, for a public entity that may develop without written
authorization from a local political subdivision;
(c) a written authorization from a public water supplier, as defined in Section 
73-1-4
,
or a private water company:
(i) to reserve or provide:
(A) a water right;
(B) a system capacity; or
(C) a distribution facility; or
(ii) to deliver for a development activity:
(A) culinary water; or
(B) irrigation water; or
(d) a written authorization from a sanitary sewer authority, as defined in Section
10-9a-103
:
(i) to reserve or provide:
(A) sewer collection capacity; or
(B) treatment capacity; or
(ii) to provide sewer service for a development activity.
(5) "Enactment" means:
(a) a municipal ordinance, for a municipality;
(b) a county ordinance, for a county; and
(c) a governing board resolution, for a local district, special service district, or private
entity.
(6) "Encumber" means:
(a) a pledge to retire a debt; or
(b) an allocation to a current purchase order or contract.
(7) "Expense for overhead" means a cost that a local political subdivision or private
entity:
(a) incurs in connection with:
(i) developing an impact fee facilities plan;
(ii) developing an impact fee analysis; or
(iii) imposing an impact fee, including any related overhead expenses; and
(b) calculates in accordance with a methodology that is consistent with generally
accepted cost accounting practices.
(8) "Hookup fee" means a fee for the installation and inspection of any pipe, line,
meter, or appurtenance to connect to a gas, water, sewer, storm water, power, or other utility
system of a municipality, county, local district, special service district, or private entity.
(9) (a) "Impact fee" means a payment of money imposed upon new development
activity as a condition of development approval to mitigate the impact of the new development
on public infrastructure.
(b) "Impact fee" does not mean a tax, a special assessment, a building permit fee, a
hookup fee, a fee for project improvements, or other reasonable permit or application fee.
(10) "Impact fee analysis" means the written analysis of each impact fee required by
Section 
11-36a-303
.
(11) "Impact fee facilities plan" means the plan required by Section 
11-36a-301
.
(12) "Level of service" means the defined performance standard or unit of demand for
each capital component of a public facility within a service area.
(13) (a) "Local political subdivision" means a county, a municipality, a local district
under Title 17B, Limited Purpose Local Government Entities - Local Districts, [
or
] a special
service district under Title 17D, Chapter 1, Special Service District Act
, or the Point of the
Mountain State Land Authority, created in Section 
11-59-201
.
(b) "Local political subdivision" does not mean a school district, whose impact fee
activity is governed by Section 
11-36a-206
.
(14) "Private entity" means an entity in private ownership with at least 100 individual
shareholders, customers, or connections, that is located in a first, second, third, or fourth class
county and provides water to an applicant for development approval who is required to obtain
water from the private entity either as a:
(a) specific condition of development approval by a local political subdivision acting
pursuant to a prior agreement, whether written or unwritten, with the private entity; or
(b) functional condition of development approval because the private entity:
(i) has no reasonably equivalent competition in the immediate market; and
(ii) is the only realistic source of water for the applicant's development.
(15) (a) "Project improvements" means site improvements and facilities that are:
(i) planned and designed to provide service for development resulting from a
development activity;
(ii) necessary for the use and convenience of the occupants or users of development
resulting from a development activity; and
(iii) not identified or reimbursed as a system improvement.
(b) "Project improvements" does not mean system improvements.
(16) "Proportionate share" means the cost of public facility improvements that are
roughly proportionate and reasonably related to the service demands and needs of any
development activity.
(17) "Public facilities" means only the following impact fee facilities that have a life
expectancy of 10 or more years and are owned or operated by or on behalf of a local political
subdivision or private entity:
(a) water rights and water supply, treatment, storage, and distribution facilities;
(b) wastewater collection and treatment facilities;
(c) storm water, drainage, and flood control facilities;
(d) municipal power facilities;
(e) roadway facilities;
(f) parks, recreation facilities, open space, and trails;
(g) public safety facilities;
(h) environmental mitigation as provided in Section 
11-36a-205
; or
(i) municipal natural gas facilities.
(18) (a) "Public safety facility" means:
(i) a building constructed or leased to house police, fire, or other public safety entities;
or
(ii) a fire suppression vehicle costing in excess of $500,000.
(b) "Public safety facility" does not mean a jail, prison, or other place of involuntary
incarceration.
(19) (a) "Roadway facilities" means a street or road that has been designated on an
officially adopted subdivision plat, roadway plan, or general plan of a political subdivision,
together with all necessary appurtenances.
(b) "Roadway facilities" includes associated improvements to a federal or state
roadway only when the associated improvements:
(i) are necessitated by the new development; and
(ii) are not funded by the state or federal government.
(c) "Roadway facilities" does not mean federal or state roadways.
(20) (a) "Service area" means a geographic area designated by an entity that imposes an
impact fee on the basis of sound planning or engineering principles in which a public facility,
or a defined set of public facilities, provides service within the area.
(b) "Service area" may include the entire local political subdivision or an entire area
served by a private entity.
(21) "Specified public agency" means:
(a) the state;
(b) a school district; or
(c) a charter school.
(22) (a) "System improvements" means:
(i) existing public facilities that are:
(A) identified in the impact fee analysis under Section 
11-36a-304
; and
(B) designed to provide services to service areas within the community at large; and
(ii) future public facilities identified in the impact fee analysis under Section
11-36a-304
 that are intended to provide services to service areas within the community at large.
(b) "System improvements" does not mean project improvements.
Section 3. Section 
11-59-102
 is amended to read:
11-59-102.
Definitions.
As used in this chapter:
(1) "Authority" means the Point of the Mountain State Land Authority, created in
Section 
11-59-201
.
(2) "Board" means the authority's board, created in Section 
11-59-301
.
(3) "Development":
(a) means the construction, reconstruction, modification, expansion, or improvement of
a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
other facility, including:
(i) the demolition or preservation or repurposing of a building, infrastructure, or other
facility;
(ii) surveying, testing, locating existing utilities and other infrastructure, and other
preliminary site work; and
(iii) any associated planning, design, engineering, and related activities; and
(b) includes all activities associated with:
(i) marketing and business recruiting activities and efforts;
(ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
mountain state land; and
(iii) planning and funding for mass transit infrastructure to service the point of the
mountain state land.
(4) "New correctional facility" means the state correctional facility being developed in
Salt Lake City to replace the state correctional facility in Draper.
(5) "Point of the mountain state land" means the approximately 700 acres of
state-owned land in Draper, including land used for the operation of a state correctional facility
until completion of the new correctional facility and state-owned land in the vicinity of the
current state correctional facility.
(6) "Public entity" means:
(a) the state, including each department, division, or other agency of the state; or
(b) a county, city, town, metro township, school district, local district, special service
district, interlocal cooperation entity, community reinvestment agency, or other political
subdivision of the state, including the authority.
(7) "Publicly owned infrastructure and improvements":
(a) means infrastructure, improvements, facilities, or buildings that:
(i) benefit the public; and
(ii) (A) are owned by a public entity or a utility; or
(B) are publicly maintained or operated by a public entity; and
(b) includes:
(i) facilities, lines, or systems that provide:
(A) water, chilled water, or steam; or
(B) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
microgrids, or telecommunications service;
(ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, and public transportation facilities; and
(iii) greenspace, parks, trails, recreational amenities, or other similar facilities.
(8) "Taxing entity" means the same as that term is defined in Section 
59-2-102
.
Section 4. Section 
11-59-104
 is amended to read:
11-59-104.
Loan committee -- Approval of infrastructure loans.
(1) As used in this section:
(a) "Borrower" means the same as that term is defined in Section 
63A-3-401.5
.
(b) "Infrastructure loan" means the same as that term is defined in Section
63A-3-401.5
.
(c) "Infrastructure project" means the same as that term is defined in Section
63A-3-401.5
.
(d) "Point of the mountain fund" means the same as that term is defined in Section
63A-3-401.5
.
(e) "Loan [
approval
] committee" means a committee [
consisting of:
] 
established under
Subsection (2).
[
(i) the board member:
]
[
(A) who is a member of the Senate appointed under Subsection 
11-59-302
(2)(a); and
]
[
(B) whose Senate district is closer to the boundary of the point of the mountain state
land than is the Senate district of the other member of the Senate appointed under Subsection
11-59-302
(2)(a);
]
[
(ii) the board member:
]
[
(A) who is a member of the House of Representatives appointed under Subsection
11-59-302
(2)(b); and
]
[
(B) whose House district is closer to the boundary of the point of the mountain state
land than is the House district of the other member of the House of Representatives appointed
under Subsection 
11-59-302
(2)(b);
]
[
(iii) the board member who is appointed by the governor under Subsection
11-59-302
(2)(c)(i);
]
[
(iv) the board member who is appointed by the governor under Subsection
11-59-302
(2)(c)(ii); and
]
[
(v) the board member who is the mayor of Draper or a member of the Draper city
council.
]
(2) The authority shall establish a five-member loan committee consisting of:
(a) the individual who is the board member appointed by the governor under
Subsection 
11-59-302
(2)(c)(ii);
(b) the individual who is a board member under Subsection 
11-59-302
(2)(e) because
the individual is the mayor of Draper or a member of the Draper city council;
(c) the executive director of the Department of Transportation, or the executive
director's designee;
(d) an individual, appointed by the governor, who:
(i) is not an elected official; and
(ii) has expertise in public finance or infrastructure development; and
(e) an individual, appointed jointly by the president of the Senate and speaker of the
House of Representatives, who:
(i) is not an elected official; and
(ii) has expertise in public finance or infrastructure development.
[
(2)
] 
(3) (a)
 The loan [
approval
] committee may [
approve
] 
recommend for board
approval
 an infrastructure loan from the point of the mountain fund to a borrower for an
infrastructure project undertaken by the borrower.
(b) An infrastructure loan from the point of the mountain fund may not be made unless:
(i) the infrastructure loan is recommended by the loan committee; and
(ii) the board approves the infrastructure loan.
[
(3)
] 
(4)
 [
The loan approval committee shall establish
] 
If the loan committee
recommends an infrastructure loan, the loan committee shall recommend
 the terms of [
an
] 
the
infrastructure loan in accordance with Section 
63A-3-404
.
[
(4)
] 
(5)
 The [
loan approval committee
] 
board
 may establish policies and guidelines
with respect to prioritizing requests for infrastructure loans and approving infrastructure loans.
[
(5)
] 
(6)
 Within 60 days after the execution of an infrastructure loan, the [
loan approval
committee
] 
board
 shall report the infrastructure loan, including the loan amount, terms, and
security, to the Executive Appropriations Committee.
[
(6)
] 
(7)
 (a) Salaries and expenses of committee members who are legislators shall be
paid in accordance with Section 
36-2-2
 and Legislative Joint Rules, Title 5, Chapter 3,
Legislator Compensation.
(b) A committee member who is not a legislator may not receive compensation or
benefits for the member's service on the committee, but may receive per diem and
reimbursement for travel expenses incurred as a committee member at the rates established by
the Division of Finance under:
(i) Sections 
63A-3-106
 and 
63A-3-107
; and
(ii) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
Section 5. Section 
11-59-202
 is amended to read:
11-59-202.
Authority powers.
The authority may:
(1) as provided in this chapter, plan, manage, and implement the development of the
point of the mountain state land, including the ongoing operation of facilities on the point of
the mountain state land;
(2) undertake, or engage a consultant to undertake, any study, effort, or activity the
board considers appropriate to assist or inform the board about any aspect of the proposed
development of the point of the mountain state land, including the best development model and
financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
under this section and Section 
11-59-203
;
(3) sue and be sued;
(4) enter into contracts generally
, including a contract for the sharing of records under
Section 
63G-2-206
;
(5) buy, obtain an option upon, or otherwise acquire any interest in real or personal
property, as necessary to accomplish the duties and responsibilities of the authority, including
an interest in real property, apart from point of the mountain state land, or personal property,
outside point of the mountain state land, for publicly owned infrastructure and improvements,
if the board considers the purchase, option, or other interest acquisition to be necessary for
fulfilling the authority's development objectives;
(6) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(7) enter into a lease agreement on real or personal property, either as lessee or lessor;
(8) provide for the development of the point of the mountain state land under one or
more contracts
, including the development of publicly owned infrastructure and improvements
and other infrastructure and improvements on or related to the point of the mountain state land
;
(9) exercise powers and perform functions under a contract, as authorized in the
contract;
(10) accept financial or other assistance from any public or private source for the
authority's activities, powers, and duties, and expend any funds so received for any of the
purposes of this chapter;
(11) borrow money, contract with, or accept financial or other assistance from the
federal government, a public entity, or any other source for any of the purposes of this chapter
and comply with any conditions of the loan, contract, or assistance;
(12) issue bonds to finance the undertaking of any development objectives of the
authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
(13) hire employees, including contract employees, in addition to or in place of staff
provided under Section 
11-59-304
;
(14) transact other business and exercise all other powers provided for in this chapter;
(15) enter into a development agreement with a developer of some or all of the point of
the mountain state land;
(16) provide for or finance an energy efficiency upgrade, a renewable energy system, or
electric vehicle charging infrastructure as defined in Section 
11-42a-102
, in accordance with
Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
(17) exercise powers and perform functions that the authority is authorized by statute
to exercise or perform;
(18) enter into one or more interlocal agreements under Title 11, Chapter 13, Interlocal
Cooperation Act, with one or more local government entities for the delivery of services to the
point of the mountain state land; [
and
]
(19) enter into an agreement with the federal government or an agency of the federal
government, as the board considers necessary or advisable, to enable or assist the authority to
exercise its powers or fulfill its duties and responsibilities under this chapter[
.
]
;
(20) provide funding for the development of publicly owned infrastructure and
improvements or other infrastructure and improvements on or related to the point of the
mountain state land; and
(21) impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other fees
related to development activities.
Section 6. Section 
11-59-205
 is enacted to read:
 11-59-205.
Authority funds.
(1) Authority funds consist of all money that the authority receives from any source,
including:
(a) money appropriated by the Legislature;
(b) money from lease revenue;
(c) revenue from fees or other charges imposed by the authority; and
(d) other money paid to or acquired by the authority, as provided in this chapter or
other applicable law.
(2) The authority may use authority funds to carry out any of the powers of the
authority under this chapter or for any purpose authorized under this chapter, including:
(a) providing long-term benefits to the state from the development or use of point of
the mountain state land;
(b) investment in authority projects;
(c) repayment of point of the mountain infrastructure loans;
(d) repayment of or collateral for authority bonds;
(e) the sharing of money with other governmental entities under an interlocal
agreement; and
(f) paying any consulting fees, staff salaries, and other administrative, overhead, legal,
and operating expenses of the authority.
(3) The authority may not spend or use any money the authority receives under Section
10-1-304
, 
11-59-206
, 
11-59-207
, or 
11-59-208
 until after June 30, 2023.
Section 7. Section 
11-59-206
 is enacted to read:
 11-59-206.
Energy sales and use tax.
(1) As provided in Subsection 
10-1-304
(1)(c), the authority may by resolution levy an
energy sales and use tax, under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use
Tax Act, on an energy supplier, as defined in Section 
10-1-303
, that supplies energy to a
facility on the point of the mountain state land.
(2) An energy sales and use tax under this section is subject to the maximum rate under
Subsection 
10-3-304
(1)(a)(ii), except that delivered value does not include the amount of a tax
paid under this section.
(3) (a) An energy supplier may recover from the energy supplier's customers an amount
equal to the energy sales and use tax, if the energy supplier includes the amount as a separate
billing line item.
(b) An energy sales and use tax levied under this section is in addition to the rate
approved by the Public Service Commission and charged to the customer.
(4) (a) An energy sales and use tax under this section is payable by the energy supplier
to the authority on a monthly basis as described by the resolution levying the tax.
(b) A resolution levying an energy sales and use tax shall allow the energy supplier to
retain 1% of the tax remittance each month to offset the energy supplier's costs of collecting
and remitting the tax.
(5) Beginning July 1, 2022, a municipality may not levy an energy sales and use tax on
an energy supplier for energy that the energy supplier supplies to a facility located on the point
of the mountain state land.
Section 8. Section 
11-59-207
 is enacted to read:
 11-59-207.
Annual fee in lieu of property tax.
(1) As used in this section:
(a) "Annual fee" means a fee:
(i) that is levied and collected each year, as provided in this section; and
(ii) in an amount that is the equivalent of the cumulative real property tax that would
be levied and collected on leased property by all taxing entities if the leased property were not
exempt property.
(b) "Exempt property" means real property that is exempt from ad valorem property tax
because the real property is owned by the state.
(c) "Lease agreement" means an agreement by which a private person leases from the
state real property that is part of the point of the mountain state land.
(d) (i) "Leased property" means real property that:
(A) is part of the point of the mountain state land;
(B) is leased by a private person; and
(C) would be subject to ad valorem property tax if the real property were owned by the
private person.
(ii) "Leased property" includes attachments and other improvements to the real
property that would be included in an assessment of the value of the real property if the real
property were not exempt property.
(e) "Leased property value" means the value that leased property would have if the
leased property were subject to ad valorem property tax.
(f) "Lessee" means a private person that leases property that is part of the point of the
mountain state land under a lease agreement.
(2) Beginning January 1 of the year immediately following the execution of a lease
agreement, a lessee under the lease agreement shall pay an annual fee with respect to the leased
property that is the subject of the lease agreement.
(3) In a county in which the point of the mountain state land is located:
(a) the county assessor shall determine the leased property value of leased property that
is subject to an annual fee as though the leased property were subject to ad valorem property
tax;
(b) the county treasurer shall collect an annual fee in the same way and at the same
time that the treasurer would collect ad valorem property tax on the leased property if the
leased property were subject to ad valorem property tax;
(c) the county may retain an administrative fee for collecting and distributing the
annual fee in the same amount that would apply if the leased property were not exempt
property; and
(d) the county treasurer shall distribute to the authority all revenue from an annual fee
on leased property in the same way and at the same time as the treasurer distributes ad valorem
property tax revenue to taxing entities in accordance with Section 
59-2-1365
.
(4) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege
Tax.
Section 9. Section 
11-59-208
 is enacted to read:
 11-59-208.
Portion of property tax augmentation to be paid to authority.
(1) As used in this section:
(a) "Base taxable value" means the taxable value in the year before the transfer date.
(b) "Property tax augmentation":
(i) means the amount of property tax that is the difference between:
(A) the amount of property tax revenues generated each tax year by all taxing entities
from a transferred parcel, using the current assessed value of the property; and
(B) the amount of property tax revenues that would be generated from that same
transferred parcel using the base taxable value of the property; and
(ii) does not include property tax revenue from:
(A) a county additional property tax or multicounty assessing and collecting levy
imposed in accordance with Section 
59-2-1602
;
(B) a judgment levy imposed by a taxing entity under Section 
59-2-1328
 or 
59-2-1330
;
or
(C) a levy imposed by a taxing entity under Section 
11-14-310
 to pay for a general
obligation bond.
(c) "Transfer date" means the date that fee title to land that is part of the point of the
mountain state land is transferred to a private person.
(d) "Transferred parcel" means a parcel of land:
(i) that is part of the point of the mountain state land; and
(ii) the fee title to which has been transferred to a private person.
(2) Beginning January 1, 2023, the authority shall be paid 75% of property tax
augmentation from a transferred parcel:
(a) for a period of 25 years beginning January 1 of the year immediately following the
transfer date for the transferred parcel; and
(b) for a period of an additional 15 years beyond the period stated in Subsection (2)(a)
if:
(i) the board determines by resolution that the additional years will produce a
significant benefit to the authority; and
(ii) the resolution is adopted before the end of the 25-year period under Subsection
(2)(a).
(3) A county that collects property tax on property within the county in which the point
of the mountain state land is located shall pay and distribute to the authority the amount of
property tax augmentation that the authority is entitled to collect under Subsection (2), in the
manner and at the time provided in Section 
59-2-1365
.
Section 10. Section 
11-59-306
 is amended to read:
11-59-306.
Limitations on board members.
(1) As used in this section:
(a) "Designated individual" means an individual:
(i) (A) who is a member of the Senate or House of Representatives;
(B) who has been appointed as a member of the board under Subsection
11-59-302
(2)(a) or (b); and
(C) whose legislative district includes some or all of the point of the mountain state
land; or
(ii) who is designated to serve as a board member under Subsection 
11-59-302
(2)(e) or
(f).
[
(a)
] 
(b)
 "Direct financial benefit":
(i) means any form of financial benefit that accrues to an individual directly as a result
of the development of the point of the mountain state land, including:
(A) compensation, commission, or any other form of a payment or increase of money;
and
(B) an increase in the value of a business or property; and
(ii) does not include a financial benefit that accrues to the public generally as a result of
the development of the point of the mountain state land.
[
(b)
] 
(c)
 "Family member" means a parent, spouse, sibling, child, or grandchild.
[
(c)
] 
(d)
 "Interest in real property" means every type of real property interest, whether
recorded or unrecorded, including:
(i) a legal or equitable interest;
(ii) an option on real property;
(iii) an interest under a contract;
(iv) fee simple ownership;
(v) ownership as a tenant in common or in joint tenancy or another joint ownership
arrangement;
(vi) ownership through a partnership, limited liability company, or corporation that
holds title to a real property interest in the name of the partnership, limited liability company,
or corporation;
(vii) leasehold interest; and
(viii) any other real property interest that is capable of being owned.
(2) An individual may not serve as a member of the board if:
(a) 
subject to Subsection (5) for a designated individual,
 the individual owns an interest
in real property, other than a personal residence in which the individual resides, 
on or
 within
five miles of the point of the mountain state land;
(b) a family member of the individual owns an interest in real property, other than a
personal residence in which the family member resides, located 
on or
 within one-half mile of
the point of the mountain state land; [
or
]
(c) the individual or a family member of the individual owns an interest in, is directly
affiliated with, or is an employee or officer of a firm, company, or other entity that the
individual reasonably believes is likely to participate in or receive compensation or other direct
financial benefit from the development of the point of the mountain state land[
.
]
; or
(d) the individual or a family member of the individual receives or is expected to
receive a direct financial benefit.
(3) 
(a)
 Before taking office as a board member, an individual shall submit to the
authority a statement
:
(i)
 verifying that the individual's service as a board member does not violate
Subsection (2)[
.
]
; and
(ii) for a designated individual, identifying any interest in real property, other than a
personal residence in which the individual resides, located on or within five miles of the point
of the mountain state land.
(b) If a designated individual takes action, during the individual's service as a board
member, to initiate, negotiate, or otherwise arrange for the acquisition of an interest in real
property, other than a personal residence in which the individual intends to live, located on or
within five miles of the point of the mountain state land, the designated individual shall submit
a written statement to the board chair describing the action, the interest in real property that the
designated individual intends to acquire, and the location of the real property.
(4) [
A
] 
Except for a board member who is a designated individual, a
 board member
[
may not,
] 
is disqualified from further service as a board member if the board member,
 at any
time during the board member's service on the board, [
take
] 
takes
 any action to initiate,
negotiate, or otherwise arrange for the acquisition of an interest in real property
, other than a
personal residence in which the member intends to reside,
 located 
on or
 within five miles of the
point of the mountain state land.
(5) A designated individual who submits a written statement under Subsection
(3)(a)(ii) or (b) may not serve or continue to serve as a board member unless at least two-thirds
of all other board members conclude that the designated individual's service as a board member
does not and will not create a material conflict of interest impairing the ability of the
designated individual to exercise fair and impartial judgment as a board member and to act in
the best interests of the authority.
[
(5)
] 
(6)
 (a) The board may not allow a firm, company, or other entity to participate in
planning, managing, or implementing the development of the point of the mountain state land
if a board member or a family member of a board member owns an interest in, is directly
affiliated with, or is an employee or officer of the firm, company, or other entity.
(b) Before allowing a firm, company, or other entity to participate in planning,
managing, or implementing the development of the point of the mountain state land, the board
may require the firm, company, or other entity to certify that no board member or family
member of a board member owns an interest in, is directly affiliated with, or is an employee or
officer of the firm, company, or other entity. 
Section 11. Section 
17D-4-102
 is amended to read:
17D-4-102.
Definitions.
As used in this chapter:
(1) "Board" means the board of trustees of a public infrastructure district.
(2) "Creating entity" means the county, municipality, or development authority that
approves the creation of a public infrastructure district.
(3) "Development authority" means:
(a) the Utah Inland Port Authority created in Section
 11-58-201
; [
or
]
(b) the Point of the Mountain State Land Authority created in Section 
11-59-201
; or
[
(b)
] 
(c)
 the military installation development authority created in Section 
63H-1-201
.
(4) "District applicant" means the person proposing the creation of a public
infrastructure district.
(5) "Division" means a division of a public infrastructure district:
(a) that is relatively equal in number of eligible voters or potential eligible voters to all
other divisions within the public infrastructure district, taking into account existing or potential
developments which, when completed, would increase or decrease the population within the
public infrastructure district; and
(b) which a member of the board represents.
(6) "Governing document" means the document governing a public infrastructure
district to which the creating entity agrees before the creation of the public infrastructure
district, as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
Provisions Applicable to All Local Districts, and this chapter.
(7) (a) "Limited tax bond" means a bond:
(i) that is directly payable from and secured by ad valorem property taxes that are
levied:
(A) by a public infrastructure district that issues the bond; and
(B) on taxable property within the district;
(ii) that is a general obligation of the public infrastructure district; and
(iii) for which the ad valorem property tax levy for repayment of the bond does not
exceed the property tax levy rate limit established under Section 
17D-4-303
 for any fiscal year,
except as provided in Subsection 
17D-4-301
(8).
(b) "Limited tax bond" does not include:
(i) a short-term bond;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
(8) "Public infrastructure and improvements" means:
(a) publicly owned infrastructure and improvements, as defined in Section 
11-58-102
,
for a public infrastructure district created by the Utah Inland Port Authority created in Section
11-58-201
; and
(b) the same as that term is defined in Section 
63H-1-102
, for a public infrastructure
district created by the military installation development authority created in Section 
63H-1-201
.
Section 12. Section 
52-4-205
 is amended to read:
52-4-205.
Purposes of closed meetings -- Certain issues prohibited in closed
meetings.
(1) A closed meeting described under Section 
52-4-204
 may only be held for:
(a) except as provided in Subsection (3), discussion of the character, professional
competence, or physical or mental health of an individual;
(b) strategy sessions to discuss collective bargaining;
(c) strategy sessions to discuss pending or reasonably imminent litigation;
(d) strategy sessions to discuss the purchase, exchange, or lease of real property,
including any form of a water right or water shares, 
or to discuss a proposed development
agreement, project proposal, or financing proposal related to the development of land owned by
the state,
 if public discussion [
of the transaction
] would:
(i) disclose the appraisal or estimated value of the property under consideration; or
(ii) prevent the public body from completing the transaction on the best possible terms;
(e) strategy sessions to discuss the sale of real property, including any form of a water
right or water shares, if:
(i) public discussion of the transaction would:
(A) disclose the appraisal or estimated value of the property under consideration; or
(B) prevent the public body from completing the transaction on the best possible terms;
(ii) the public body previously gave public notice that the property would be offered for
sale; and
(iii) the terms of the sale are publicly disclosed before the public body approves the
sale;
(f) discussion regarding deployment of security personnel, devices, or systems;
(g) investigative proceedings regarding allegations of criminal misconduct;
(h) as relates to the Independent Legislative Ethics Commission, conducting business
relating to the receipt or review of ethics complaints;
(i) as relates to an ethics committee of the Legislature, a purpose permitted under
Subsection 
52-4-204
(1)(a)(iii)(C);
(j) as relates to the Independent Executive Branch Ethics Commission created in
Section 
63A-14-202
, conducting business relating to an ethics complaint;
(k) as relates to a county legislative body, discussing commercial information as
defined in Section 
59-1-404
;
(l) as relates to the Utah Higher Education Assistance Authority and its appointed
board of directors, discussing fiduciary or commercial information as defined in Section
53B-12-102
;
(m) deliberations, not including any information gathering activities, of a public body
acting in the capacity of:
(i) an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
during the process of evaluating responses to a solicitation, as defined in Section 
63G-6a-103
;
(ii) a protest officer, defined in Section 
63G-6a-103
, during the process of making a
decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
(iii) a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part 17,
Procurement Appeals Board;
(n) the purpose of considering information that is designated as a trade secret, as
defined in Section 
13-24-2
, if the public body's consideration of the information is necessary in
order to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement Code;
(o) the purpose of discussing information provided to the public body during the
procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the time of
the meeting:
(i) the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be
disclosed to a member of the public or to a participant in the procurement process; and
(ii) the public body needs to review or discuss the information in order to properly
fulfill its role and responsibilities in the procurement process;
(p) as relates to the governing board of a governmental nonprofit corporation, as that
term is defined in Section 
11-13a-102
, the purpose of discussing information that is designated
as a trade secret, as that term is defined in Section 
13-24-2
, if:
(i) public knowledge of the discussion would reasonably be expected to result in injury
to the owner of the trade secret; and
(ii) discussion of the information is necessary for the governing board to properly
discharge the board's duties and conduct the board's business; or
(q) a purpose for which a meeting is required to be closed under Subsection (2).
(2) The following meetings shall be closed:
(a) a meeting of the Health and Human Services Interim Committee to review a report
described in Subsection 
62A-16-301
(1)(a), and the responses to the report described in
Subsections 
62A-16-301
(2) and (4);
(b) a meeting of the Child Welfare Legislative Oversight Panel to:
(i) review a report described in Subsection 
62A-16-301
(1)(a), and the responses to the
report described in Subsections 
62A-16-301
(2) and (4); or
(ii) review and discuss an individual case, as described in Subsection 
62A-4a-207
(5);
(c) a meeting of the Opioid and Overdose Fatality Review Committee, created in
Section 
26-7-13
, to review and discuss an individual case, as described in Subsection
26-7-13
(10);
(d) a meeting of a conservation district as defined in Section 
17D-3-102
 for the
purpose of advising the Natural Resource Conservation Service of the United States
Department of Agriculture on a farm improvement project if the discussed information is
protected information under federal law;
(e) a meeting of the Compassionate Use Board established in Section 
26-61a-105
 for
the purpose of reviewing petitions for a medical cannabis card in accordance with Section
26-61a-105
; and
(f) a meeting of the Colorado River Authority of Utah if:
(i) the purpose of the meeting is to discuss an interstate claim to the use of the water in
the Colorado River system; and
(ii) failing to close the meeting would:
(A) reveal the contents of a record classified as protected under Subsection
63G-2-305
(82);
(B) reveal a legal strategy relating to the state's claim to the use of the water in the
Colorado River system;
(C) harm the ability of the Colorado River Authority of Utah or river commissioner to
negotiate the best terms and conditions regarding the use of water in the Colorado River
system; or
(D) give an advantage to another state or to the federal government in negotiations
regarding the use of water in the Colorado River system.
(3) In a closed meeting, a public body may not:
(a) interview a person applying to fill an elected position;
(b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,
Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in Elected Office;
or
(c) discuss the character, professional competence, or physical or mental health of the
person whose name was submitted for consideration to fill a midterm vacancy or temporary
absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and Vacancy and
Temporary Absence in Elected Office.
Section 13. 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 the Point of the Mountain State Land Authority created in Section 
11-59-201
,
the same as that term is defined in Section 
11-59-207
;
[
(ii)
] 
(iii)
 for an agency created under Section 
17C-1-201.5
, the same as that term is
defined in Section 
17C-1-102
;
[
(iii)
] 
(iv)
 for an authority created under Section 
63H-1-201
, the same as that term is
defined in Section 
63H-1-102
; or
[
(iv)
] 
(v)
 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
.
(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.
(j) "Host local government" means the same as that term is defined in Section
63N-2-502
.
(k) "Hotel property" means the same as that term is defined in Section 
63N-2-502
.
(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.
(m) "Incremental property tax revenue" means the same as that term is defined in
Section 
63N-2-502
.
(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 the Point of the Mountain State Land Authority created in Section 
11-59-201
,
an amount calculated by multiplying:
(A) the difference between the current assessed value of the property and the base
taxable value; and
(B) the number that represents the percentage of the property tax augmentation, as
defined in Section 
11-59-207
, that is paid to the Point of the Mountain State Land Authority;
[
(ii)
] 
(iii)
 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)
] 
(iv)
 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)
] 
(v)
 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.
(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.
(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
.
(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 the Point of the Mountain State Land Authority created in Section 
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of the
Mountain State Land Authority as property tax augmentation, as defined in Section 
11-59-207
;
[
(ii)
] 
(iii)
 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)
] 
(iv)
 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
.
(s) "Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(t) "Property tax differential" means the same as that term is defined in Section
11-58-102
.
(u) "Qualifying exempt revenue" means revenue received:
(i) for the previous calendar year;
(ii) by a taxing entity;
(iii) from tangible personal property contained on the prior year's tax rolls that is
exempt from property tax under Subsection 
59-2-1115
(2)(b) for a calendar year beginning on
January 1, 2022; and
(iv) on the aggregate 2021 year end taxable value of the tangible personal property that
exceeds $15,300.
(v) "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 minus the qualifying exempt revenue 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);
(c) for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10,
Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4)
except that the commission shall treat the total revenue transferred to the community
reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the
prior year; and
(d) for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall be
calculated in accordance with Section 
59-2-913
 and this section:
(i) a school levy provided for under Section 
53F-8-301
, 
53F-8-302
, or 
53F-8-303
; and
(ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 
59-2-1602
.
(6) (a) A 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).
Section 14. Section 
63A-3-401.5
 is amended to read:
63A-3-401.5.
Definitions.
As used in this part:
(1) "Borrower" means a person who borrows money from an infrastructure fund for an
infrastructure project.
(2) "Independent political subdivision" means:
(a) the Utah Inland Port Authority created in Section 
11-58-201
;
(b) the Point of the Mountain State Land Authority created in Section 
11-59-201
; or
(c) the Military Installation Development Authority created in Section 
63H-1-201
.
(3) "Infrastructure fund" means a fund created in Subsection 
63A-3-402
(1).
(4) "Infrastructure loan" means a loan of infrastructure fund money to finance an
infrastructure project.
(5) "Infrastructure project" means a project to acquire, construct, reconstruct,
rehabilitate, equip, or improve public infrastructure and improvements:
(a) within a project area; or
(b) outside a project area, if the respective loan approval [
committee
] 
body
 determines
by resolution that the public infrastructure and improvements are of benefit to the project area.
(6) "Inland port" means the same as that term is defined in Section 
11-58-102
.
(7) "Inland port fund" means the infrastructure fund created in Subsection
63A-3-402
(1)(a).
(8) "Military development fund" means the infrastructure fund created in Subsection
63A-3-402
(1)(c).
(9) "Point of the mountain fund" means the infrastructure fund created in Subsection
63A-3-402
(1)(b).
(10) "Project area" means:
(a) the same as that term is defined in Section 
11-58-102
, for purposes of an
infrastructure loan from the inland port fund;
(b) the point of the mountain state land, as defined in Section 
11-59-102
, for purposes
of an infrastructure loan from the point of the mountain fund; and
(c) the same as that term is defined in Section 
63H-1-102
, for purposes of an
infrastructure loan from the military development fund.
(11) "Property tax revenue" means:
(a) property tax differential, as defined in Section 
11-58-102
, for purposes of an
infrastructure loan from the inland port fund; or
(b) property tax allocation, as defined in Section 
63H-1-102
, for purposes of an
infrastructure loan from the military development fund.
(12) "Public infrastructure and improvements":
(a) for purposes of an infrastructure loan from the inland port fund:
(i) means publicly owned infrastructure and improvements, as defined in Section
11-58-102
; and
(ii) includes an inland port facility; [
and
]
(b) means publicly owned infrastructure and improvements, as defined in Section
11-59-102
, for purposes of an infrastructure loan from the point of the mountain fund; and
[
(b)
] 
(c)
 means the same as that term is defined in Section 
63H-1-102
, for purposes of
an infrastructure loan from the military development fund.
(13) "Respective loan approval [
committee
] 
body
" means:
(a) the committee created in Section 
11-58-106
, for purposes of an infrastructure loan
from the inland port fund;
(b) the [
committee
] 
board
 created in Section [
11-59-104
] 
11-59-301
, for purposes of an
infrastructure loan from the point of the mountain fund; and
(c) the committee created in Section 
63H-1-104
, for purposes of an infrastructure loan
from the military development fund.
Section 15. Section 
63A-3-402
 is amended to read:
63A-3-402.
Infrastructure funds established -- Purpose of funds -- Use of money
in funds.
(1) There are created, as enterprise revolving loan funds:
(a) the inland port infrastructure revolving loan fund;
(b) the point of the mountain infrastructure revolving loan fund; and
(c) the military development infrastructure revolving loan fund.
(2) The purpose of each infrastructure fund is to provide funding, through
infrastructure loans, for infrastructure projects undertaken by a borrower.
(3) (a) Money in an infrastructure fund may be used only to provide loans for
infrastructure projects.
(b) The division may not loan money in an infrastructure fund without the approval of
:
(i)
 the respective loan approval [
committee.
] 
body; and
(ii) the Executive Appropriations Committee of the Legislature, for a loan from the
point of the mountain fund.
Section 16. Section 
63A-3-404
 is amended to read:
63A-3-404.
Loan agreement.
(1) (a) A borrower that borrows money from an infrastructure fund shall enter into a
loan agreement with the division for repayment of the money.
(b) (i) A loan agreement under Subsection (1)(a) shall be secured by:
(A) bonds, notes, or another evidence of indebtedness validly issued under state law; or
(B) revenue generated from an infrastructure project.
(ii) The security provided under Subsection (1)(b)(i) may include the borrower's pledge
of some or all of a revenue source that the borrower controls.
(c) The respective loan approval [
committee
] 
body
 may determine that property tax
revenue or revenue from the infrastructure project for which the infrastructure loan is obtained
is sufficient security for an infrastructure loan.
(2) An infrastructure loan shall bear interest at a rate not to exceed .5% above bond
market interest rates available to the state.
(3) (a) Subject to Subsection (3)(b), the respective loan approval [
committee
] 
body
shall determine the length of term of an infrastructure loan.
(b) If the security for an infrastructure loan is property tax revenue, the repayment
terms of the infrastructure loan agreement shall allow sufficient time for the property tax
revenue to generate sufficient money to cover payments under the infrastructure loan.
(4) An infrastructure loan agreement may provide for a portion of the loan proceeds to
be applied to a reserve fund to secure repayment of the infrastructure loan.
(5) (a) If a borrower fails to comply with the terms of an infrastructure loan agreement,
the division may:
(i) seek any legal or equitable remedy to obtain:
(A) compliance with the agreement; or
(B) the payment of damages; and
(ii) request a state agency with money due to the borrower to withhold payment of the
money to the borrower and instead to pay the money to the division to pay any amount due
under the infrastructure loan agreement.
(b) A state agency that receives a request from the division under Subsection (5)(a)(ii)
shall pay to the division the money due to the borrower to the extent of the amount due under
the infrastructure loan agreement.
(6) Upon approval from the respective loan approval [
committee
] 
body
, the division
shall loan money from an infrastructure fund according to the terms established by the
respective loan approval [
committee
] 
body
.
(7) (a) The division shall administer and enforce an infrastructure loan according to the
terms of the infrastructure loan agreement.
(b) (i) Beginning May 5, 2021, the division shall assume responsibility from the State
Infrastructure Bank Fund for servicing the loan under Subsection 
63B-27-101
(3)(a).
(ii) Payments due after May 5, 2021 under the loan under Subsection 
63B-27-101
(3)(a)
shall be made to the division rather than to the State Infrastructure Bank Fund, to be deposited
into the military development fund.
Section 17. 
Repealer.
This bill repeals:
Section 
11-59-101
,
Title.
Section 18. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect May 4, 2022.
(2) If approved by two-thirds of all the members elected to each house, the
amendments to Section 
52-4-205
 take effect upon approval by the governor, or the day
following the constitutional time limit of Utah Constitution, Article VII, Section 8, without the
governor's signature, or in the case of a veto, the date of veto override.