Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 190 Third Substitute (2024GS)

Sponsor

Sen. Wilson, C.

Final action

Governor Vetoed 3/21/2024

Outcome

Vetoed

Summary

What it does

• This bill:
• authorizes certain higher education institutions to designate a development area, consisting of property owned by the institution;
• provides a process for an institution to adopt a resolution designating a development area;
• requires an institution to establish a fund for revenue from the development area and provides for uses of money in the fund;
• requires the approval of the institution's board of trustees before the institution may adopt a development agreement;
• provides limitations on a board member's participation in development actions and limitations on the board's adoption of a development agreement; and
• requires the board to provide an annual report to the Higher Education Appropriations Subcommittee for each development area.

Every vote on this bill

Bill text

HIGHER EDUCATION DEVELOPMENT AREAS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Chris H. Wilson
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies provisions relating to the development of property owned by certain
higher education institutions.
Highlighted Provisions:
This bill:
▸ authorizes certain higher education institutions to designate a development area,
consisting of property owned by the institution;
▸ provides a process for an institution to adopt a resolution designating a development
area;
▸ requires an institution to establish a fund for revenue from the development area and
provides for uses of money in the fund;
▸ requires the approval of the institution's board of trustees before the institution may
adopt a development agreement;
▸ provides limitations on a board member's participation in development actions and
limitations on the board's adoption of a development agreement; and
▸ requires the board to provide an annual report to the Higher Education
Appropriations Subcommittee for each development area.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
53B-20-107
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53B-20-107
 is enacted to read:
 53B-20-107.
Development of university property.
(1) As used in this section:
(a) "Board" means the board of trustees of an eligible university.
(b) "Designation resolution" means a board resolution designating eligible university
property as a development area.
(c) "Development action" means:
(i) board deliberations on whether to adopt a designation resolution;
(ii) the board's adoption of a designation resolution;
(iii) board deliberations on whether to approve a development agreement; or
(iv) the board's approval of a development agreement.
(d) "Development agreement" means an agreement governing the development of
eligible university property within a development area.
(e) "Development area" means an area consisting of eligible university property that
the eligible university designates for development in a designation resolution, as provided in
this section.
(f) "Development fund" means the fund described in and established under Subsection
(4).
(g) "Direct financial benefit":
(i) means any form of financial benefit that accrues to an individual directly, 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;
(ii) does not include a financial benefit that accrues to the public generally.
(h) Eligible university" means an institution of higher education listed in Subsection
53B-1-102
(1)(a).
(i) "Eligible university property" means real property owned by an eligible university.
(j) "Family member" means a parent, spouse, sibling, child, or grandchild.
(k) "Leased property" means eligible university property that:
(i) is within a development area; and
(ii) an eligible university leases to a private person.
(2) (a) An eligible university may, by resolution of the board, designate eligible
university property as a development area.
(b) Before adopting a designation resolution, a board shall:
(i) provide notice of the public hearing required under Subsection (2)(b)(ii), as required
for a class A notice under Section 
63G-30-102
, for at least seven days before the day of the
public hearing; and
(ii) hold a public hearing on the proposed adoption of a designation resolution.
(c) A notice under Subsection (2)(b)(i) shall include a copy of the proposed designation
resolution.
(d) A designation resolution, including a proposed designation resolution that
accompanies a notice under Subsection (2)(b)(i), shall:
(i) accurately describe the boundary of the proposed development area;
(ii) describe the development that is proposed to occur in the proposed development
area; and
(iii) estimate the amount and sources of revenue the eligible university expects to
receive from the development area.
(e) Before adopting a designation resolution, a board may modify the proposed
designation resolution to:
(i) address concerns raised in a public hearing held under Subsection (2)(b)(ii); or
(ii) clarify or adjust provisions of the proposed designation resolution, as the board
considers appropriate.
(3) Within 30 days after the board's adoption of a designation resolution, the board or
the board's delegee shall deliver a copy of the designation resolution to:
(a) the clerk of the municipality in which the development area that is the subject of the
designation resolution is located; and
(b) the assessor and treasurer of the county in which the development area that is the
subject of the designation resolution is located.
(4) (a) Upon adoption of a designation resolution, a board shall establish a separate
fund related to the development area that is the subject of the designation resolution.
(b) An eligible university shall deposit into a development fund all money the eligible
university receives from the development and lease of eligible university property within a
development area.
(c) Money in a development fund shall be accounted for separately from any other fund
of the eligible university.
(d) An eligible university may use money in a development fund for:
(i) expenses associated with the development of the development area;
(ii) capital facility projects of the eligible university;
(iii) operation and maintenance costs associated with capital facilities of the eligible
university; or
(iv) any other eligible university-related purpose.
(5) Before a development agreement may take effect, the board shall approve the
development agreement by resolution, adopted in a public meeting.
(6) (a) A board member may not participate in a development action if the board
member or a family member of the board member owns an interest in, is directly affiliated
with, or is an employee or officer of a private firm, private company, or other private entity that
the board member reasonably believes is likely to participate in or receive a direct financial
benefit from the development of land that is the subject of a development agreement.
(b) The board may not approve a development agreement if the board reasonably
believes that a board member or a family member of a board member will or is likely to receive
a direct financial benefit because of the development of eligible university property within a
development area.
(c) Nothing in this Subsection (6) may be construed to affect the application or effect
of any other code provision applicable to a board member relating to ethics or conflicts of
interest.
(7) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege
Tax.
(8) (a) A board shall present a written report to the Higher Education Appropriations
Subcommittee no later than September 30 of each year after the board's adoption of a
designation resolution.
(b) A report under Subsection (8)(a) shall:
(i) describe the development taking place or expected to take place within the
development area; and
(ii) provide a summary of money deposited into and expended from the development
fund for that development area.
Section 2. 
Effective date.
This bill takes effect on May 1, 2024.