Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 208 Second Substitute (2024GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/21/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends definitions related to housing and transit reinvestment zones;
• amends provisions related to affordable housing thresholds to require 12% of the proposed dwelling units be reserved for certain levels of income;
• requires affordable housing requirements be met in each phase of development;
• requires that a housing and transit reinvestment zone be at least 10 acres;
• clarifies notice requirements to certain entities regarding the commencement of collection of tax increment;
• clarifies information required in a housing and transit reinvestment zone proposal;
• adds two additional members of the Legislature to the housing and transit reinvestment zone committee;
• amends provisions regarding overlap of a housing and transit reinvestment zone with a community reinvestment project area;
• amends provisions related to the sales and use tax increment captured within a housing and transit reinvestment zone, including:
• how base year is established;
• contiguity of affected sales and use tax boundaries; and
• limiting a housing and transit reinvestment zone to only one sales and use tax increment period; and
• makes technical changes.

Every vote on this bill

Bill text

HOUSING AND TRANSIT REINVESTMENT ZONE
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
 Stephen L. Whyte
LONG TITLE
General Description:
This bill amends provisions related to housing and transit reinvestment zones.
Highlighted Provisions:
This bill:
▸ amends definitions related to housing and transit reinvestment zones;
▸ amends provisions related to affordable housing thresholds to require 12% of the
proposed dwelling units be reserved for certain levels of income;
▸ requires affordable housing requirements be met in each phase of development;
▸ requires that a housing and transit reinvestment zone be at least 10 acres;
▸ clarifies notice requirements to certain entities regarding the commencement of
collection of tax increment;
▸ clarifies information required in a housing and transit reinvestment zone proposal;
▸ adds two additional members of the Legislature to the housing and transit
reinvestment zone committee;
▸ amends provisions regarding overlap of a housing and transit reinvestment zone
with a community reinvestment project area;
▸ amends provisions related to the sales and use tax increment captured within a
housing and transit reinvestment zone, including:
• how base year is established;
• contiguity of affected sales and use tax boundaries; and
• limiting a housing and transit reinvestment zone to only one sales and use tax
increment period; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63N-3-602
, as last amended by Laws of Utah 2023, Chapter 357
63N-3-603
, as last amended by Laws of Utah 2023, Chapter 357
63N-3-604
, as last amended by Laws of Utah 2023, Chapter 357
63N-3-605
, as last amended by Laws of Utah 2023, Chapter 357
63N-3-610
, as last amended by Laws of Utah 2022, Chapter 433
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63N-3-602
 is amended to read:
63N-3-602.
Definitions.
As used in this part:
(1) "Affordable housing" means housing occupied or reserved for occupancy by
households with a gross household income
:
(a)
 equal to or less than 80% of the median gross income of the applicable municipal or
county statistical area for households of the same size[
.
]
, in certain circumstances as provided
in this part; or
(b) equal to or less than 60% of the median gross income of the applicable municipal
or county statistical area for households of the same size, in certain circumstances as provided
in this part.
(2) "Agency" means the same as that term is defined in Section 
17C-1-102
.
(3) "Base taxable value" means a property's taxable value as shown upon the
assessment roll last equalized during the base year.
(4) "Base year" means, for a proposed housing and transit reinvestment zone area, a
year beginning the first day of the calendar quarter determined by the last equalized tax roll
before the adoption of the housing and transit reinvestment zone.
(5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast
and efficient service that may include dedicated lanes, busways, traffic signal priority,
off-board fare collection, elevated platforms, and enhanced stations.
(6) "Bus rapid transit station" means an existing station, stop, or terminal, or a
proposed station, stop, or terminal that is specifically identified [
in
] 
as needed in phase one of
 a
metropolitan planning organization's adopted long-range transportation plan and 
in phase one
of
 the relevant public transit district's [
five-year
] 
adopted long-range transit
 plan:
(a) along an existing bus rapid transit line; or
(b) along an extension to an existing bus rapid transit line or new bus rapid transit line.
(7) (a) "Commuter rail" means a heavy-rail passenger rail transit facility operated by a
large public transit district.
(b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
transit district.
(8) "Commuter rail station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal, which has been specifically identified [
in
] 
as needed in phase one of
 a
metropolitan planning organization's adopted long-range transportation plan and 
in phase one
of
 the relevant public transit district's [
five-year
] 
adopted long-range transit
 plan:
(a) along an existing commuter rail line;
(b) along an extension to an existing commuter rail line or new commuter rail line; or
(c) along a fixed guideway extension from an existing commuter rail line.
(9) (a) "Developable area" means the portion of land within a housing and transit
reinvestment zone available for development and construction of business and residential uses.
(b) "Developable area" does not include portions of land within a housing and transit
reinvestment zone that are allocated to:
(i) parks;
(ii) recreation facilities;
(iii) open space;
(iv) trails;
(v) publicly-owned roadway facilities; or
(vi) other public facilities.
(10) "Dwelling unit" means one or more rooms arranged for the use of one or more
individuals living together, as a single housekeeping unit normally having cooking, living,
sanitary, and sleeping facilities.
(11) "Enhanced development" means the construction of mixed uses including
housing, commercial uses, and related facilities.
(12) "Enhanced development costs" means extra costs associated with structured
parking costs, vertical construction costs, horizontal construction costs, life safety costs,
structural costs, conveyor or elevator costs, and other costs incurred due to the increased height
of buildings or enhanced development.
(13) "Fixed guideway" means the same as that term is defined in Section 
59-12-102
.
(14) "Horizontal construction costs" means the additional costs associated with
earthwork, over excavation, utility work, transportation infrastructure, and landscaping to
achieve enhanced development in the housing and transit reinvestment zone.
(15) "Housing and transit reinvestment zone" means a housing and transit reinvestment
zone created pursuant to this part.
(16) "Housing and transit reinvestment zone committee" means a housing and transit
reinvestment zone committee created pursuant to Section 
63N-3-605
.
(17) "Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(18) "Light rail" means a passenger rail public transit system with right-of-way and
fixed rails:
(a) dedicated to exclusive use by light-rail public transit vehicles;
(b) that may cross streets at grade; and
(c) that may share parts of surface streets.
(19) "Light rail station" means an existing station, stop, or terminal or a proposed
station, stop, or terminal, which has been specifically identified [
in
] 
as needed in phase one of
 a
metropolitan planning organization's adopted long-range transportation plan and 
in phase one
of
 the relevant public transit district's [
five-year
] 
adopted long-range
 plan:
(a) along an existing light rail line; or
(b) along an extension to an existing light rail line or new light rail line.
(20) "Metropolitan planning organization" means the same as that term is defined in
Section 
72-1-208.5
.
(21) "Mixed use development" means development with a mix of
:
(a)
 multi-family residential use
;
 and
(b)
 at least one additional land use
, which shall be a significant part of the overall
development
.
(22) "Municipality" means the same as that term is defined in Section 
10-1-104
.
(23) "Participant" means the same as that term is defined in Section 
17C-1-102
.
(24) "Participation agreement" means the same as that term is defined in Section
17C-1-102
, except that the agency may not provide and the person may not receive a direct
subsidy.
(25) "Public transit county" means a county that has created a small public transit
district.
(26) "Public transit hub" means a public transit depot or station where four or more
routes serving separate parts of the county-created transit district stop to transfer riders between
routes.
(27) "Sales and use tax base year" means a sales and use tax year determined by the
first year pertaining to the tax imposed in Section 
59-12-103
 after the sales and use tax
boundary for a housing and transit reinvestment zone is established.
(28) "Sales and use tax boundary" means a boundary created as described in Section
63N-3-604
, based on state sales and use tax collection that corresponds as closely as reasonably
practicable to the housing and transit reinvestment zone boundary.
(29) "Sales and use tax increment" means the difference between:
(a) the amount of state sales and use tax revenue generated each year following the
sales and use tax base year by the sales and use tax from the area within a housing and transit
reinvestment zone designated in the housing and transit reinvestment zone proposal as the area
from which sales and use tax increment is to be collected; and
(b) the amount of state sales and use tax revenue that was generated from that same
area during the sales and use tax base year.
(30) "Sales and use tax revenue" means revenue that is generated from the tax imposed
under Section 
59-12-103
.
(31) "Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(32) "Tax Commission" means the State Tax Commission created in Section 
59-1-201
.
(33) 
(a)
 "Tax increment" means the difference between:
[
(a)
] 
(i)
 the amount of property tax revenue generated each tax year by a taxing entity
from the area within a housing and transit reinvestment zone designated in the housing and
transit reinvestment zone proposal as the area from which tax increment is to be collected,
using the current assessed value and each taxing entity's current certified tax rate as defined in
Section 
59-2-924
; and
[
(b)
] 
(ii)
 the amount of property tax revenue that would be generated from that same
area using the base taxable value and each taxing entity's current certified tax rate as defined in
Section 
59-2-924
.
(b) "Tax increment" does not include property tax revenue from:
(i) a multicounty assessing and collecting levy described in Subsection 
59-2-1602
(2);
or
(ii) a county additional property tax described in Subsection 
59-2-1602
(4).
(34) "Taxing entity" means the same as that term is defined in Section 
17C-1-102
.
(35) "Vertical construction costs" means the additional costs associated with
construction above four stories and structured parking to achieve enhanced development in the
housing and transit reinvestment zone.
Section 2. Section 
63N-3-603
 is amended to read:
63N-3-603.
Applicability, requirements, and limitations on a housing and transit
reinvestment zone.
(1) A housing and transit reinvestment zone proposal created under this part shall
promote the following objectives:
(a) higher utilization of public transit;
(b) increasing availability of housing, including affordable housing, and fulfillment of
moderate income housing plans;
(c) improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities;
(d) overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(e) conservation of water resources through efficient land use;
(f) improving air quality by reducing fuel consumption and motor vehicle trips;
(g) encouraging transformative mixed-use development and investment in
transportation and public transit infrastructure in strategic areas;
(h) strategic land use and municipal planning in major transit investment corridors as
described in Subsection 
10-9a-403
(2);
(i) increasing access to employment and educational opportunities; and
(j) increasing access to child care.
(2) 
(a)
 In order to accomplish the objectives described in Subsection (1), a municipality
or public transit county that initiates the process to create a housing and transit reinvestment
zone as described in this part shall ensure that the proposal for a housing and transit
reinvestment zone includes:
[
(a)
] 
(i)
 except as provided in Subsection (3), at least [
10%
] 
12%
 of the proposed
dwelling units within the housing and transit reinvestment zone are affordable housing units[
;
]
,
with:
(A) up to 9% of the proposed dwelling units occupied or reserved for occupancy by
households with a gross household income equal to or less than 80% of the median gross
income of the applicable municipal or county statistical area for households of the same size;
and
(B) at least 3% of the proposed dwelling units occupied or reserved for occupancy by
households with a gross household income equal to or less than 60% of the median gross
income of the applicable municipal or county statistical area for households of the same size.
[
(b) at least 51% of the developable area within the housing and transit reinvestment
zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50
dwelling units per acre or greater;
]
(ii) except as provided in Subsection (2)(c), a housing and transit reinvestment zone
shall include:
(A) at least 51% of the developable area within a housing and transit reinvestment zone
as residential uses; and
(B) an average of at lease 50 dwelling units per acre within the acreage of the housing
and transit reinvestment zone dedicated to residential uses;
[
(c)
] 
(iii)
 mixed-use development; and
[
(d)
] 
(iv)
 a mix of dwelling units to ensure that a reasonable percentage of the dwelling
units has more than one bedroom.
(b) (i) If a housing and transit reinvestment zone is phased, a municipality or public
transit county shall ensure that a housing and transit reinvestment zone is phased and
developed to provide the required 12% of affordable housing units in each phase of
development.
(ii) A municipality or public transit county may allow a housing and transit
reinvestment zone to be phased and developed in a manner to provide more of the required 
affordable housing units in early phases of development.
(iii) A municipality or public transit county shall include in a housing and transit
reinvestment zone proposal an affordable housing plan, which may include deed restrictions, to
ensure the affordable housing required in the proposal will continue to meet the definition of
affordable housing at least throughout the entire term of the housing and transit reinvestment
zone.
(c) For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
a bus rapid transit station, the housing and transit reinvestment zone shall include:
(i) at least 51% of the developable area within a housing and transit reinvestment zone
as residential uses; and
(ii) an average of at least 39 dwelling units per acre within the acreage of the housing
and transit reinvestment zone dedicated to residential uses.
(3) A municipality or public transit county that, at the time the housing and transit
reinvestment zone proposal is approved by the housing and transit reinvestment zone
committee, meets the affordable housing guidelines of the United States Department of
Housing and Urban Development at 60% area median income is exempt from the requirement
described in Subsection (2)(a).
(4) (a) A municipality may only propose a housing and transit reinvestment zone at a
commuter rail station, and a public transit county may only propose a housing and transit
reinvestment zone at a public transit hub, that:
(i) subject to Subsection (5)(a):
(A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not
exceed a 1/3 mile radius of a commuter rail station;
(II) for a municipality that is a city of the first class with a population greater than
150,000 that is within a county of the first class, with an opportunity zone created pursuant to
Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail
station located within the opportunity zone; or
(III) for a public transit county, does not exceed a 1/3 mile radius of a public transit
hub; and
(B) has a total area of no more than 125 noncontiguous acres;
(ii) subject to Section 
63N-3-607
, proposes the capture of a maximum of 80% of each
taxing entity's tax increment above the base year for a term of no more than 25 consecutive
years on each parcel within a 45-year period not to exceed the tax increment amount approved
in the housing and transit reinvestment zone proposal; and
(iii) the commencement of collection of tax increment, for all or a portion of the
housing and transit reinvestment zone, will be triggered by providing notice as described in
Subsection (6).
(b) A municipality or public transit county may only propose a housing and transit
reinvestment zone at a light rail station or bus rapid transit station that:
(i) subject to Subsection (5):
(A) does not exceed:
(I) except as provided in Subsection [
(4)(b)(i)(A)(II) or (III),
] 
(4)(b)(i)(A)(II), (III), or
(4)(e),
 a 1/4 mile radius of a bus rapid transit station or light rail station;
(II) for a municipality that is a city of the first class with a population greater than
150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located
in an opportunity zone created pursuant to Section
1400Z-1, Internal Revenue Code; or
(III) a 1/2 mile radius of a light rail station located within a master-planned
development of 500 acres or more; and
(B) has a total area of no more than 100 noncontiguous acres;
(ii) subject to Subsection (4)(c) and Section 
63N-3-607
, proposes the capture of a
maximum of 80% of each taxing entity's tax increment above the base year for a term of no
more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax
increment amount approved in the housing and transit reinvestment zone proposal; and
(iii) the commencement of collection of tax increment, for all or a portion of the
housing and transit reinvestment zone, will be triggered by providing notice as described in
Subsection (6).
(c) For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
a bus rapid transit station, if the proposed housing density within the housing and transit
reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each
taxing entity's tax increment above the base year is 60%.
(d) A municipality that is a city of the first class with a population greater than 150,000
in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may
only propose one housing and transit reinvestment zone within an opportunity zone.
(e) (i) Subject to Subsection (4)(e)(ii), the radius restrictions described in Subsection
(4)(b)(i) do not apply, and a housing and transit reinvestment zone may extend to an area
between two light rail stations if the two light rail stations are within a 2/3 mile distance on the
same light rail line.
(ii) If a housing and transit reinvestment zone is extended to accommodate two light
rail stations as described in Subsection (4)(e)(i):
(A) the housing and transit reinvestment zone is limited to a total area not to exceed
noncontiguous acres; and
(B) the housing and transit reinvestment zone may not exceed a 1/4 mile radius from
the light rail stations or any point on the light rail line between the two stations.
[
(e) A county of the first class may not propose a housing and transit reinvestment zone
that includes an area that is part of a project area, as that term is defined in Section 
17C-1-102
,
and created under Title 17C, Chapter 1, Agency Operations, until the project area is dissolved
pursuant to Section 
17C-1-702
.
]
(5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a
parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the
housing and transit reinvestment zone area and will not count against the limitations described
in Subsection (4)(a)(i).
(b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included
as part of the housing and transit reinvestment zone area and will not count against the
limitations described in Subsection (4)(b)(i).
(c) A housing and transit reinvestment zone may not be smaller than 10 acres.
(6) The notice of commencement of collection of tax increment required in Subsection
(4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to 
the following entities no later
than January 1 of the year for which the tax increment collection is proposed to commence
:
(a) the tax commission;
(b) the State Board of Education;
(c) the state auditor;
(d) the auditor of the county in which the housing and transit reinvestment zone is
located;
(e) each taxing entity affected by the collection of tax increment from the housing and
transit reinvestment zone; and
(f) the Governor's Office of Economic Opportunity.
(7) (a) The maximum number of housing and transit reinvestment zones at light rail
stations is eight in any given county.
(b) Within a county of the first class, the maximum number of housing and transit
reinvestment zones at bus rapid transit stations is three.
(8) (a) This Subsection (8) applies to a specified county, as defined in Section
17-27a-408
, that has created a small public transit district on or before January 1, 2022.
(b) (i) A county described in Subsection (8)(a) shall, in accordance with Section
63N-3-604
, prepare and submit to the Governor's Office of Economic Opportunity a proposal
to create a housing and transit reinvestment zone on or before December 31, 2022.
(ii) A county described in Subsection (8)(a) that, on December 31, 2022, was
noncompliant under Section 
17-27a-408
 for failure to demonstrate in the county's moderate
income housing report that the county complied with Subsection (8)(b)(i), may cure the
deficiency in the county's moderate income housing report by submitting satisfactory proof to
the Housing and Community Development Division that, notwithstanding the deadline in
Subsection (8)(b)(i), the county has submitted to the Governor's Office of Economic
Opportunity a proposal to create a housing and transit reinvestment zone.
(c) (i) A county described in Subsection (8)(a) may not propose a housing and transit
reinvestment zone if more than 15% of the acreage within the housing and transit reinvestment
zone boundary is owned by the county.
(ii) For purposes of determining the percentage of acreage owned by the county as
described in Subsection (8)(c)(i), a county may exclude any acreage owned that is used for
highways, bus rapid transit, light rail, or commuter rail within the boundary of the housing and
transit reinvestment zone.
(d) To accomplish the objectives described in Subsection (1), if a county described in
Subsection (8)(a) has failed to comply with Subsection (8)(b)(i) by failing to submit an
application before December 31, 2022, an owner of undeveloped property who has submitted a
land use application to the county on or before December 31, 2022, and is within a 1/3 mile
radius of a public transit hub in a county described in Subsection (8)(a), including parcels that
are bisected by the 1/3 mile radius, shall have the right to develop and build a mixed-use
development including the following:
(i) excluding the parcels devoted to commercial uses as described in Subsection
(8)(d)(ii), at least 39 dwelling units per acre on average over the developable area, with at least
10% of the dwelling units as affordable housing units;
(ii) commercial uses including office, retail, educational, and healthcare in support of
the mixed-use development constituting up to 1/3 of the total planned gross building square
footage of the subject parcels; and
(iii) any other infrastructure element necessary or reasonable to support the mixed-use
development, including parking infrastructure, streets, sidewalks, parks, and trails.
Section 3. Section 
63N-3-604
 is amended to read:
63N-3-604.
Process for a proposal of a housing and transit reinvestment zone --
Analysis.
(1) Subject to approval of the housing and transit reinvestment zone committee as
described in Section 
63N-3-605
, in order to create a housing and transit reinvestment zone, a
municipality or public transit county that has general land use authority over the housing and
transit reinvestment zone area, shall:
(a) prepare a proposal for the housing and transit reinvestment zone that:
(i) demonstrates that the proposed housing and transit reinvestment zone will meet the
objectives described in Subsection 
63N-3-603
(1);
(ii) explains how the municipality or public transit county will achieve the
requirements of Subsection 
63N-3-603
(2)(a)
(i)
;
(iii) defines the specific transportation infrastructure needs, if any, and proposed
improvements;
(iv) defines the boundaries of:
(A) the housing and transit reinvestment zone; and
(B) the sales and use tax boundary corresponding to the housing and transit
reinvestment zone boundary, as described in Section 
63N-3-610
;
(v) includes maps of the proposed housing and transit reinvestment zone to illustrate:
(A) the proposed boundary and radius from a public transit hub;
(B) proposed housing density within the housing and transit reinvestment zone; and
(C) existing zoning and proposed zoning changes related to the housing and transit
reinvestment zone;
(vi) identifies any development impediments that prevent the development from being
a market-rate investment and proposed strategies for addressing each one;
(vii) describes the proposed development plan, including the requirements described in
Subsections 
63N-3-603
(2) and (4);
(viii) establishes a base year and collection period to calculate the tax increment within
the housing and transit reinvestment zone;
(ix) establishes a sales and use tax base year to calculate the sales and use tax
increment within the housing and transit reinvestment zone 
in accordance with Section
63N-3-610
;
(x) describes projected maximum revenues generated and the amount of tax increment
capture from each taxing entity and proposed expenditures of revenue derived from the housing
and transit reinvestment zone;
(xi) includes an analysis of other applicable or eligible incentives, grants, or sources of
revenue that can be used to reduce the finance gap;
(xii) evaluates possible benefits to active and public transportation availability and
impacts on air quality;
(xiii) proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiv) provides a pro-forma for the planned development [
including the cost differential
between surface parked multi-family development and enhanced development
] that
:
(A)
 satisfies the requirements described in Subsections 
63N-3-603
(2), (3), and (4); and
(B) includes data showing the cost difference between what type of development could
feasibly be developed absent the housing and transit reinvestment zone tax increment and the
type of development that is proposed to be developed with the housing and transit reinvestment
zone tax increment; and
(xv) for a housing and transit reinvestment zone at a commuter rail station, light rail
station, or bus rapid transit station that is proposed and not in public transit service operation as
of the date of submission of the proposal, demonstrates that the proposed station is:
(A) included [
in
] 
as needed in phase one of
 a metropolitan planning organization's
adopted long-range transportation plan and 
in phase one of
 the relevant public transit district's
[
five-year
] 
adopted long-range
 plan; and
(B) reasonably anticipated to be constructed in the near future; and
(b) submit the housing and transit reinvestment zone proposal to the Governor's Office
of Economic Opportunity.
(2) As part of the proposal described in Subsection (1), a municipality or public transit
county shall study and evaluate possible impacts of a proposed housing and transit
reinvestment zone on parking within the city and housing and transit reinvestment zone.
(3) (a) After receiving the proposal as described in Subsection (1)(b), the Governor's
Office of Economic Opportunity shall:
(i) within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection (1)(b), provide notice of the
proposal to all affected taxing entities, including the Tax Commission, cities, counties, school
districts, and metropolitan planning organizations; and
(ii) at the expense of the proposing municipality or public transit county as described in
Subsection (5), contract with an independent entity to perform the gap analysis described in
Subsection (3)(b).
(b) The gap analysis required in Subsection (3)(a)(ii) shall include:
(i) a description of the planned development;
(ii) a market analysis relative to other comparable project developments included in or
adjacent to the municipality or public transit county absent the proposed housing and transit
reinvestment zone;
(iii) an evaluation of the proposal to and a determination of the adequacy and efficiency
of the proposal;
(iv) an evaluation of the proposed increment capture needed to cover the enhanced
development costs associated with the housing and transit reinvestment zone proposal and
enable the proposed development to occur; and
(v) based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be necessary to
achieve the objectives described in Subsection 
63N-3-603
(1).
(c) After receiving notice from the Governor's Office of Economic Opportunity of a
proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i), the Tax
Commission shall:
(i) evaluate the feasibility of administering the tax implications of the proposal; and
(ii) provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the Tax Commission can
feasibly administer the proposal.
(4) After receiving the results from the analysis described in Subsection (3)(b), the
municipality or public transit county proposing the housing and transit reinvestment zone may:
(a) amend the housing and transit reinvestment zone proposal based on the findings of
the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic
Opportunity submit the amended housing and transit reinvestment zone proposal to the housing
and transit reinvestment zone committee; or
(b) request that the Governor's Office of Economic Opportunity submit the original
housing and transit reinvestment zone proposal to the housing and transit reinvestment zone
committee.
(5) (a) The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality or public transit county for the costs of the gap
analysis described in Subsection (3)(b).
(b) The Governor's Office of Economic Opportunity may expend funds received from a
municipality or public transit county as dedicated credits to pay for the costs associated with
the gap analysis described in Subsection (3)(b).
Section 4. Section 
63N-3-605
 is amended to read:
63N-3-605.
Housing and Transit Reinvestment Zone Committee -- Creation.
(1) For any housing and transit reinvestment zone proposed under this part, there is
created a housing and transit reinvestment zone committee with membership described in
Subsection (2).
(2) Each housing and transit reinvestment zone committee shall consist of the
following members:
(a) one representative from the Governor's Office of Economic Opportunity, designated
by the executive director of the Governor's Office of Economic Opportunity;
(b) one representative from each municipality that is a party to the proposed housing
and transit reinvestment zone, designated by the chief executive officer of each respective
municipality;
(c) a member of the Transportation Commission created in Section 
72-1-301
;
(d) a member of the board of trustees of a large public transit district;
(e) one individual from the Office of the State Treasurer, designated by the state
treasurer;
(f) [
one member
] 
two members
 designated by the president of the Senate;
(g) [
one member
] 
two members
 designated by the speaker of the House of
Representatives;
(h) one member designated by the chief executive officer of each county affected by
the housing and transit reinvestment zone;
(i) one representative designated by the school superintendent from the school district
affected by the housing and transit reinvestment zone; and
(j) one representative, representing the largest participating local taxing entity, after the
municipality, county, and school district.
(3) The individual designated by the Governor's Office of Economic Opportunity as
described in Subsection (2)(a) shall serve as chair of the housing and transit reinvestment zone
committee.
(4) (a) A majority of the members of the housing and transit reinvestment zone
committee constitutes a quorum of the housing and transit reinvestment zone committee.
(b) An action by a majority of a quorum of the housing and transit reinvestment zone
committee is an action of the housing and transit reinvestment zone committee.
(5) After the Governor's Office of Economic Opportunity receives the results of the
analysis described in Section 
63N-3-604
, and after the Governor's Office of Economic
Opportunity has received a request from the submitting municipality or public transit county to
submit the housing and transit reinvestment zone proposal to the housing and transit
reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each
of the entities described in Subsection (2) of the formation of the housing and transit
reinvestment zone committee.
(6) (a) The chair of the housing and transit reinvestment zone committee shall convene
a public meeting to consider the proposed housing and transit reinvestment zone.
(b) A meeting of the housing and transit reinvestment zone committee is subject to
Title 52, Chapter 4, Open and Public Meetings Act.
(7) (a) The proposing municipality or public transit county shall present the housing
and transit reinvestment zone proposal to the housing and transit reinvestment zone committee
in a public meeting.
(b) The housing and transit reinvestment zone committee shall:
(i) evaluate and verify whether the elements of a housing and transit reinvestment zone
described in Subsections 
63N-3-603
(2) and (4) have been met; and
(ii) evaluate the proposed housing and transit reinvestment zone relative to the analysis
described in Subsection 
63N-3-604
(2).
(8) (a) Subject to Subsection (8)(b), the housing and transit reinvestment zone
committee may:
(i) request changes to the housing and transit reinvestment zone proposal based on the
analysis, characteristics, and criteria described in Section 
63N-3-604
; or
(ii) vote to approve or deny the proposal.
(b) Before the housing and transit reinvestment zone committee may approve the
housing and transit reinvestment zone proposal, the municipality or public transit county
proposing the housing and transit reinvestment zone shall ensure that the area of the proposed
housing and transit reinvestment zone is zoned in such a manner to accommodate the
requirements of a housing and transit reinvestment zone described in this section and the
proposed development.
(9) If a housing and transit reinvestment zone is approved by the committee:
(a) the proposed housing and transit reinvestment zone is established according to the
terms of the housing and transit reinvestment zone proposal;
(b) affected local taxing entities are required to participate according to the terms of the
housing and transit reinvestment zone proposal; and
(c) each affected taxing municipality is required to participate at the same rate as a
participating county.
(10) A housing and transit reinvestment zone proposal may be amended by following
the same procedure as approving a housing and transit reinvestment zone proposal.
Section 5. Section 
63N-3-610
 is amended to read:
63N-3-610.
Sales and use tax increment in a housing and transit reinvestment
zone.
(1) A housing and transit reinvestment proposal shall, in consultation with the tax
commission:
(a) create a sales and use tax boundary as described in Subsection (2); and
(b) establish a sales and use tax base year and collection period to calculate and transfer
the state sales and use tax increment within the housing and transit reinvestment zone
, which
sales and use tax base year is established prospectively, 90 days after the date of the notice
described in Subsection (4)
.
(2) (a) The municipality or public transit county, in consultation with the tax
commission, shall establish a sales and use tax boundary that:
(i) is based on state sales and use tax collection boundaries; [
and
]
(ii) follows as closely as reasonably practicable the boundary of the housing and transit
reinvestment zone[
.
]
; and
(iii) is one contiguous area that includes at least the entire boundary of the housing and
transit reinvestment zone.
(b) If a state sales and use tax boundary is bisected by the boundary of the housing and
transit reinvestment zone, the housing and transit reinvestment zone may include the entire
state sales and use tax boundary.
[
(b)
] 
(c)
 The municipality or public transit county shall include the sales and use tax
boundary in the housing and transit reinvestment zone proposal as described in Section
63N-3-604
.
(3) 
(a)
 Beginning the first day of the calendar quarter one year after the sales and use
tax boundary for a housing and transit reinvestment zone is established, the tax commission
shall, at least annually, transfer an amount equal to 15% of the sales and use tax increment
within an established sales and use tax boundary into the Transit Transportation Investment
Fund created in Section 
72-2-124
.
(b) A municipality or public transit county may only propose one sales and use tax
increment period for a housing and transit reinvestment zone established under this section.
(4) (a) The 
establishment of a sales and use tax base year and the
 requirement
described in Subsection (3) to transfer incremental sales tax revenue shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day waiting period, beginning on the date the commission receives notice
from the municipality or public transit county meeting the requirements of Subsection (4)(b).
(b) The notice described in Subsection (4)(a) shall include:
(i) a statement that the housing and transit reinvestment zone will be established under
this part;
(ii) the approval date and effective date of the housing and transit reinvestment zone;
and
(iii) the definitions of the sales and use tax boundary and sales and use tax base year.
Section 6. 
Effective date.
This bill takes effect on May 1, 2024.