Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 264 First Substitute (2024GS)

Sponsor

Sen. Stevenson, J.

Final action

Governor Signed 3/21/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• makes the Utah Inland Port Authority subject to the Utah Industrial Facilities and Development Act;
• modifies limitations on board members;
• modifies notice requirements for a project area plan;
• prohibits the authority from paying certain developer costs associated with the construction of public infrastructure and improvements in a project area;
• provides that the base taxable value of project area land applies to land added to the project area;
• modifies provisions relating to the distribution of sales tax revenue; and
• removes a condition applicable to the authority's creation of a remediation project area.

Every vote on this bill

Bill text

This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 23, 2024 at 9:36 AM by lpoole.
INLAND PORT AUTHORITY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W Stevenson
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies provisions relating to the Utah Inland Port Authority.
Highlighted Provisions:
This bill:
▸ makes the Utah Inland Port Authority subject to the Utah Industrial Facilities and
Development Act;
▸ modifies limitations on board members;
▸ modifies notice requirements for a project area plan;
▸ prohibits the authority from paying certain developer costs associated with the
construction of public infrastructure and improvements in a project area;
▸ provides that the base taxable value of project area land applies to land added to the
project area;
▸ modifies provisions relating to the distribution of sales tax revenue; and
▸ removes a condition applicable to the authority's creation of a remediation project
area.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-17-2
, as last amended by Laws of Utah 2020, Chapter 354
11-17-3.5
, as enacted by Laws of Utah 2009, Chapter 92
11-58-206
, as last amended by Laws of Utah 2023, Chapter 259
11-58-304
, as last amended by Laws of Utah 2022, Chapter 82
11-58-503
, as last amended by Laws of Utah 2023, Chapter 435
11-58-504
, as enacted by Laws of Utah 2018, Chapter 179
11-58-602
, as last amended by Laws of Utah 2023, Chapter 259
11-58-605
, as enacted by Laws of Utah 2023, Chapter 259
59-12-205
, as last amended by Laws of Utah 2023, Chapters 302, 471 and 492
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-17-2
 is amended to read:
11-17-2.
Definitions.
As used in this chapter:
(1) "Bonds" means bonds, notes, or other evidences of indebtedness.
(2) "Energy efficiency upgrade" means an improvement that is permanently affixed to
real property and that is designed to reduce energy consumption, including:
(a) insulation in:
(i) a wall, ceiling, roof, floor, or foundation; or
(ii) a heating or cooling distribution system;
(b) an insulated window or door, including:
(i) a storm window or door;
(ii) a multiglazed window or door;
(iii) a heat-absorbing window or door;
(iv) a heat-reflective glazed and coated window or door;
(v) additional window or door glazing;
(vi) a window or door with reduced glass area; or
(vii) other window or door modifications that reduce energy loss;
(c) an automatic energy control system;
(d) in a building or a central plant, a heating, ventilation, or air conditioning and
distribution system;
(e) caulking or weatherstripping;
(f) a light fixture that does not increase the overall illumination of a building unless an
increase is necessary to conform with the applicable building code;
(g) an energy recovery system;
(h) a daylighting system;
(i) measures to reduce the consumption of water, through conservation or more
efficient use of water, including:
(i) installation of a low-flow toilet or showerhead;
(ii) installation of a timer or timing system for a hot water heater; or
(iii) installation of a rain catchment system; or
(j) any other modified, installed, or remodeled fixture that is approved as a utility
cost-savings measure by the governing body.
(3) "Finance" or "financing" includes the issuing of bonds by a municipality, county, or
state university for the purpose of using a portion, or all or substantially all of the proceeds to
pay for or to reimburse the user, lender, or the user or lender's designee for the costs of the
acquisition of facilities of a project, or to create funds for the project itself where appropriate,
whether these costs are incurred by the municipality, the county, the state university, the user,
or a designee of the user. If title to or in these facilities at all times remains in the user, the
bonds of the municipality or county shall be secured by a pledge of one or more notes,
debentures, bonds, other secured or unsecured debt obligations of the user or lender, or the
sinking fund or other arrangement as in the judgment of the governing body is appropriate for
the purpose of assuring repayment of the bond obligations to investors in accordance with their
terms.
(4) "Governing body" means:
(a) for a county, city, town, or metro township, the legislative body of the county, city,
town, or metro township;
(b) for the Utah Inland Port Authority created in Section 
11-58-201
, the board, as
defined in Section 
11-58-102
;
[
(b)
] 
(c)
 for the military installation development authority created in Section
63H-1-201
, the board, as defined in Section 
63H-1-102
;
[
(c)
] 
(d)
 for a state university except as provided in Subsection [
(4)(d)
] 
(4)(e)
, the
board or body having the control and supervision of the state university; and
[
(d)
] 
(e)
 for a nonprofit corporation or foundation created by and operating under the
auspices of a state university, the board of directors or board of trustees of that corporation or
foundation.
(5) (a) "Industrial park" means land, including all necessary rights, appurtenances,
easements, and franchises relating to it, acquired and developed by a municipality, county, or
state university for the establishment and location of a series of sites for plants and other
buildings for industrial, distribution, and wholesale use.
(b) "Industrial park" includes the development of the land for an industrial park under
this chapter or the acquisition and provision of water, sewerage, drainage, street, road,
sidewalk, curb, gutter, street lighting, electrical distribution, railroad, or docking facilities, or
any combination of them, but only to the extent that these facilities are incidental to the use of
the land as an industrial park.
(6) "Lender" means a trust company, savings bank, savings and loan association, bank,
credit union, or any other lending institution that lends, loans, or leases proceeds of a financing
to the user or a user's designee.
(7) "Mortgage" means a mortgage, trust deed, or other security device.
(8) "Municipality" means any incorporated city, town, or metro township in the state,
including cities or towns operating under home rule charters.
(9) "Pollution" means any form of environmental pollution including water pollution,
air pollution, pollution caused by solid waste disposal, thermal pollution, radiation
contamination, or noise pollution.
(10) (a) "Project" means:
(i) an industrial park, land, interest in land, building, structure, facility, system, fixture,
improvement, appurtenance, machinery, equipment, or any combination of them, whether or
not in existence or under construction:
(A) that is suitable for industrial, manufacturing, warehousing, research, business, and
professional office building facilities, commercial, shopping services, food, lodging, low
income rental housing, recreational, or any other business purposes;
(B) that is suitable to provide services to the general public;
(C) that is suitable for use by any corporation, person, or entity engaged in health care
services, including hospitals, nursing homes, extended care facilities, facilities for the care of
persons with a physical or mental disability, and administrative and support facilities; or
(D) that is suitable for use by a state university for the purpose of aiding in the
accomplishment of its authorized academic, scientific, engineering, technical, and economic
development functions;
(ii) any land, interest in land, building, structure, facility, system, fixture, improvement,
appurtenance, machinery, equipment, or any combination of them, used by any individual,
partnership, firm, company, corporation, public utility, association, trust, estate, political
subdivision, state agency, or any other legal entity, or its legal representative, agent, or assigns,
for the reduction, abatement, or prevention of pollution, including the removal or treatment of
any substance in process material, if that material would cause pollution if used without the
removal or treatment;
(iii) an energy efficiency upgrade;
(iv) a renewable energy system;
(v) facilities, machinery, or equipment, the manufacturing and financing of which will
maintain or enlarge domestic or foreign markets for Utah industrial products; or
(vi) any economic development or new venture investment fund to be raised other than
from:
(A) municipal or county general fund money;
(B) money raised under the taxing power of any county or municipality; or
(C) money raised against the general credit of any county or municipality.
(b) "Project" does not include any property, real, personal, or mixed, for the purpose of
the construction, reconstruction, improvement, or maintenance of a public utility as defined in
Section 
54-2-1
.
(11) "Renewable energy system" means a product, system, device, or interacting group
of devices that is permanently affixed to real property and that produces energy from renewable
resources, including:
(a) a photovoltaic system;
(b) a solar thermal system;
(c) a wind system;
(d) a geothermal system, including:
(i) a direct-use system; or
(ii) a ground source heat pump system;
(e) a micro-hydro system; or
(f) another renewable energy system approved by the governing body.
(12) "State university" means an institution of higher education as described in Section
53B-2-101
 and includes any nonprofit corporation or foundation created by and operating
under their authority.
(13) "User" means the person, whether natural or corporate, who will occupy, operate,
maintain, and employ the facilities of, or manage and administer a project after the financing,
acquisition, or construction of it, whether as owner, manager, purchaser, lessee, or otherwise.
Section 2. Section 
11-17-3.5
 is amended to read:
11-17-3.5.
Powers of Military Installation Development Authority.
The 
Utah Inland Port Authority, created in Section 
11-58-201
, and the
 military
installation development authority, created in Section 
63H-1-201
, [
is
] 
are
 subject to and
governed by the provisions of this chapter to the same extent as if the 
Utah Inland Port
Authority and
 military installation development authority
, respectively,
 were a municipality.
Section 3. Section 
11-58-206
 is amended to read:
11-58-206.
Port authority funds.
(1)
 [
The
] 
Subject to Subsection (2), the
 authority may use authority funds for any
purpose authorized under this chapter, including:
[
(1)
] 
(a)
 promoting, facilitating, and advancing inland port uses;
[
(2)
] 
(b)
 owning and operating an intermodal facility;
[
(3)
] 
(c)
 the remediation of contaminated land within a project area; and
[
(4)
] 
(d)
 paying any consulting fees and staff salaries and other administrative,
overhead, legal, and operating expenses of the authority.
(2) (a) As used in this Subsection (2):
(i) "Affected project area" means the project area where public infrastructure and
improvements are constructed or are to be constructed.
(ii) "Local legislative body" means:
(A) the legislative body of the county in which the affected project area is located; or
(B) the legislative body of the municipality in which the affected project area is
located.
(b) The authority may not use authority funds to pay developer costs, as defined by the
local legislative body, associated with the development and construction of public
infrastructure and improvements in an affected project area.
Section 4. Section 
11-58-304
 is amended to read:
11-58-304.
Limitations on board members and executive director.
(1) As used in this section:
(a) "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; and
(ii) does not include a financial benefit that accrues to the public generally.
(b) "Family member" means a parent, spouse, sibling, child, or grandchild.
(2) 
(a)
 An individual [
may not serve as a voting member of the board or as executive
director
] 
is subject to Subsection (2)(b)
 if:
[
(a)
] 
(i)
 the individual owns real property, other than a personal residence in which the
individual resides, within a project area, whether or not the ownership interest is a recorded
interest;
[
(b)
] 
(ii)
 a family member of the individual owns an interest in real property, other than
a personal residence in which the family member resides, located within a project area; or
[
(c)
] 
(iii)
 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 private firm, private company, or other
private entity that the individual reasonably believes is likely to:
[
(i)
] 
(A)
 participate in or receive a direct financial benefit from the development of the
authority jurisdictional land; or
[
(ii)
] 
(B)
 acquire an interest in or locate a facility within a project area.
(b) An individual described in Subsection (2)(a):
(i) may not serve as executive director; or
(ii) may not, if the individual is a board member, participate in the consideration or
vote on any matter affecting the individual or family member's interest or affiliation described
in Subsection (2)(a).
(3) Before taking office as a voting member of the board or accepting employment as
executive director, an individual shall submit to the authority a statement verifying that the
individual's service as a board member or employment as executive director does not violate
Subsection (2).
(4) (a) An individual may not, at any time during the individual's service as a voting
member or employment with the authority, acquire, or take any action to initiate, negotiate, or
otherwise arrange for the acquisition of, an interest in real property located within a project
area, if:
(i) the acquisition is in the individual's personal capacity or in the individual's capacity
as an employee or officer of a private firm, private company, or other private entity; and
(ii) the acquisition will enable the individual to receive a direct financial benefit as a
result of the development of the project area.
(b) Subsection (4)(a) does not apply to an individual's acquisition of, or action to
initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property that is
a personal residence in which the individual will reside upon acquisition of the real property.
(5) (a) A voting member or nonvoting member of the board or an employee of the
authority may not receive a direct financial benefit from the development of a project area.
(b) For purposes of Subsection (5)(a), a direct financial benefit does not include:
(i) expense reimbursements;
(ii) per diem pay for board member service, if applicable; or
(iii) an employee's compensation or benefits from employment with the authority.
(6) Nothing in this section may be construed to affect the application or effect of any
other code provision applicable to a board member or employee relating to ethics or conflicts
of interest.
Section 5. Section 
11-58-503
 is amended to read:
11-58-503.
Notice of project area plan adoption -- Effective date of plan -- Time
for challenging a project area plan or project area.
(1) Upon the board's adoption of a project area plan, the board shall provide notice as
provided in Subsection (2) by publishing or causing to be published legal notice[
: (a)
] for the
project area, as a class A notice under Section 
63G-30-102
, for at least 30 days[
; and
]
.
[
(b) as required by Section 
45-1-101
.
]
(2) (a) Each notice under Subsection (1) shall include:
(i) the board resolution adopting the project area plan or a summary of the resolution;
and
(ii) a statement that the project area plan is available for general public inspection and
the hours for inspection.
(b) The statement required under Subsection (2)(a)(ii) may be included within the
board resolution adopting the project area plan or within the summary of the resolution.
(3) The project area plan shall become effective on the date designated in the board
resolution.
(4) The authority shall make the adopted project area plan available to the general
public at the authority's offices during normal business hours.
(5) Within 10 days after the day on which a project area plan is adopted that establishes
a project area, or after an amendment to a project area plan is adopted under which the
boundary of a project area is modified, the authority shall send notice of the establishment or
modification of the project area and an accurate map or plat of the project area to:
(a) the State Tax Commission;
(b) the Utah Geospatial Resource Center created in Section 
63A-16-505
; and
(c) the assessor and recorder of each county where the project area is located.
(6) (a) A legal action or other challenge to a project area plan or a project area
described in a project area plan is barred unless brought within 30 days after the effective date
of the project area plan.
(b) A legal action or other challenge to a project area that consists of authority
jurisdictional land is barred unless brought within 30 days after the board adopts a business
plan under Subsection 
11-58-202
(1)(a) for the authority jurisdictional land.
Section 6. Section 
11-58-504
 is amended to read:
11-58-504.
Amendment to a project area plan.
(1) The authority may amend a project area plan by following the same procedure
under this part as applies to the adoption of a project area plan.
(2) The provisions of this part apply to the authority's adoption of an amendment to a
project area plan to the same extent as they apply to the adoption of a project area plan.
(3) If an amendment to a project area plan results in land being included in the project
area that was not included in the project area before the amendment, the base taxable value
applicable to the project area before the amendment applies to the land added to the project
area by amendment.
Section 7. Section 
11-58-602
 is amended to read:
11-58-602.
Allowable uses of property tax differential and other funds.
(1) (a) The authority may use money from property tax differential, money the
authority receives from the state, money the authority receives under Subsection
59-12-205
(2)(a)(ii)(C), and other money available to the authority:
(i) for any purpose authorized under this chapter;
(ii) for administrative, overhead, legal, consulting, and other operating expenses of the
authority;
(iii) to pay for, including financing or refinancing, all or part of the development of
land within a project area, including assisting the ongoing operation of a development or
facility within the project area;
(iv) to pay the cost of the installation and construction of public infrastructure and
improvements within the project area from which the property tax differential funds were
collected;
(v) to pay the cost of the installation of public infrastructure and improvements outside
a project area if the board determines by resolution that the infrastructure and improvements
are of benefit to the project area;
(vi) to pay to a community reinvestment agency for affordable housing, as provided in
Subsection 
11-58-606
(2);
(vii) to pay the principal and interest on bonds issued by the authority;
(viii) to pay the cost of acquiring a conservation easement on land that is part of or
adjacent to authority jurisdictional land:
(A) for the perpetual preservation of the land from development; and
(B) to provide a buffer area between authority jurisdictional land intended for
development and land outside the boundary of the authority jurisdictional land; and
(ix) subject to Subsection (1)(b), to encourage, incentivize, or require development
that:
(A) mitigates noise, air pollution, light pollution, surface and groundwater pollution,
and other negative environmental impacts;
(B) mitigates traffic congestion; or
(C) uses high efficiency building construction and operation.
(b) (i) (A) The authority shall establish minimum mitigation and environmental
standards that a landowner is required to meet to qualify for the use of property tax differential
under Subsection (1)(a)(ix) in the landowner's development.
(B) Minimum mitigation and environmental standards established under Subsection
(1)(b)(i)(A) shall include a standard prohibiting the use of property tax differential as a
business recruitment incentive, as defined in Section 
11-58-603
, for new commercial or
industrial development or an expansion of existing commercial or industrial development
within the authority jurisdictional land if the new or expanded development will consume on an
annual basis more than 200,000 gallons of potable water per day.
(ii) In establishing minimum mitigation and environmental standards, the authority
shall consult with:
(A) the municipality in which the development is expected to occur, for development
expected to occur within a municipality; or
(B) the county in whose unincorporated area the development is expected to occur, for
development expected to occur within the unincorporated area of a county.
(iii) The authority may not use property tax differential under Subsection (1)(a)(viii)
for a landowner's development in a project area unless the minimum mitigation and
environmental standards are followed with respect to that landowner's development.
(2) The authority may use revenue generated from the operation of public infrastructure
operated by the authority or improvements, including an intermodal facility, operated by the
authority to:
(a) operate and maintain the infrastructure or improvements; and
(b) pay for authority operating expenses, including administrative, overhead, and legal
expenses.
(3) The determination of the board under Subsection (1)(a)(v) regarding benefit to the
project area is final.
(4) The authority may not use property tax differential revenue collected from one
project area for a development project within another project area.
(5) The authority may use up to 10% of the general differential revenue generated from
a project area to pay for affordable housing within or near the project area.
(6) The authority may share general differential funds with a taxing entity that levies a
property tax on land within the project area from which the general differential is generated.
[
(7) (a) As used in this Subsection (7):
]
[
(i) "Authority sales and use tax revenue" means money distributed to the authority
under Subsection 
59-12-205
(2)(a)(ii)(C).
]
[
(ii) "Eligible county" means a county that would be entitled to receive sales and use
tax revenue under Subsection 
59-12-205
(2)(a)(ii)(A) in the absence of Subsection
59-12-205
(2)(a)(ii)(C).
]
[
(iii) "Eligible municipality" means a municipality that would be entitled to receive
sales and use tax revenue under Subsection 
59-12-205
(2)(a)(ii)(A) in the absence of Subsection
59-12-205
(2)(a)(ii)(C).
]
[
(iv) "Point of sale portion" means:
]
[
(A) for an eligible county, the amount of sales and use tax revenue the eligible county
would have received under Subsection 
59-12-205
(2)(a)(ii)(A) in the absence of Subsection
59-12-205
(2)(a)(ii)(C), excluding the retail sales portion; and
]
[
(B) for an eligible municipality, the amount of sales and use tax revenue the eligible
municipality would have received under Subsection 
59-12-205
(2)(a)(ii)(A) in the absence of
Subsection 
59-12-205
(2)(a)(ii)(C), excluding the retail sales portion.
]
[
(v) "Retail sales portion" means the amount of sales and use tax revenue collected
under Subsection 
59-12-205
(2)(a)(ii)(A) from retail sales transactions that occur on authority
jurisdictional land.
]
[
(b) Within 45 days after receiving authority sales and use tax revenue, the authority
shall:
]
[
(i) distribute half of the point of sale portion to each eligible county and eligible
municipality; and
]
[
(ii) distribute all of the retail sales portion to each eligible county and eligible
municipality.
]
Section 8. Section 
11-58-605
 is amended to read:
11-58-605.
Creation of remediation project area and payment of remediation
differential.
(1) As used in this section:
(a) "Remedial action plan" means a plan for the cleanup of contaminated land under a
voluntary cleanup agreement under Title 19, Chapter 8, Voluntary Cleanup Program.
(b) "Subsidiary district" means a public infrastructure district that is a subsidiary of the
authority.
(2) This section applies to a remediation project area and to remediation differential.
(3) The authority may adopt a resolution creating a remediation project area [
if the
authority and the owner of contaminated land to be included in the remediation project area
enter an agreement governing a remediation project within the remediation project area
].
(4) If the authority adopts a resolution creating a remediation project area, the authority
shall reconfigure the boundary of the project area that consists of the authority jurisdictional
land to exclude the remediation project area.
(5) The authority may pay the costs of a remediation project from funds available to the
authority, including funds of a subsidiary district.
(6) (a) If the authority pays some or all the costs of a remediation project, the authority
shall be paid 100% of the remediation differential, subject to Subsection (6)(b), until the
authority is fully reimbursed for the costs the authority paid for the remediation project.
(b) (i) Subject to Subsection (6)(b)(iii), the authority's use of remediation differential
paid to the authority under Subsection (6)(a) is subject to any bonds of a subsidiary district
issued before May 3, 2023 pledging property tax differential funds generated from the
contaminated land.
(ii) Before using remediation differential to pay subsidiary district bonds described in
Subsection (6)(b)(i), the authority shall use other funds available to the authority to pay the
bonds.
(iii) A pledge of property tax differential under subsidiary district bonds issued before
May 3, 2023 may be satisfied if:
(A) the authority or the subsidiary district pledges additional property tax differential,
other than remediation differential, or other authority or subsidiary district funds to offset any
decrease in property tax differential resulting from the payment under Subsection (6)(a) of
remediation differential funds that would otherwise have been available to pay the subsidiary
district bonds; and
(B) the pledge described in Subsection (6)(b)(iii)(A) is senior in right to any pledge of
remediation differential for a commitment the authority makes in connection with a
remediation project.
(7) If a remediation project is conducted pursuant to a remedial action plan, the use of
the land that is the subject of the remediation project shall be consistent with the remedial
action plan unless the change of use:
(a) occurs after the government owner, as defined in Subsection 
63G-7-201
(3)(b), is
environmentally compliant, as defined in Subsection 
63G-7-201
(3)(b), with respect to the land
that is the subject of the remediation project; and
(b) is approved by the board following a public hearing on the proposed change of use.
(8) (a) Upon the authority receiving full reimbursement for the authority's payment of
costs for a remediation project, the remediation project area is automatically and immediately
dissolved and the land within the remediation project area automatically and immediately
becomes part of the project area consisting of the authority jurisdictional land.
(b) The board shall take any action necessary to effectuate and reflect in authority
project area records and any other applicable records the reincorporation of the remediation
project area under Subsection (8)(a) into the project area consisting of the authority
jurisdictional land.
Section 9. Section 
59-12-205
 is amended to read:
59-12-205.
Ordinances to conform with statutory amendments -- Distribution of
tax revenue -- Determination of population.
(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
59-12-204
, a county, city, or town shall adopt amendments to the county's, city's, or town's
sales and use tax ordinances:
(a) within 30 days of the day on which the state makes an amendment to an applicable
provision of Part 1, Tax Collection; and
(b) as required to conform to the amendments to Part 1, Tax Collection.
(2) (a) Except as provided in Subsections (3) and (4) and subject to Subsection (5):
(i) 50% of each dollar collected from the sales and use tax authorized by this part shall
be distributed to each county, city, and town on the basis of the percentage that the population
of the county, city, or town bears to the total population of all counties, cities, and towns in the
state; and
(ii) (A) except as provided in Subsections (2)(a)(ii)(B), (C), and (D), 50% of each
dollar collected from the sales and use tax authorized by this part shall be distributed to each
county, city, and town on the basis of the location of the transaction as determined under
Sections 
59-12-211
 through 
59-12-215
;
(B) 50% of each dollar collected from the sales and use tax authorized by this part
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, shall be distributed to the military installation development authority created in
Section 
63H-1-201
;
(C) beginning July 1, 
Ŝ→ [
] 
 ←Ŝ
 , [
50%
] 
20%
 of each dollar collected from the
444a sales and use
tax authorized by this part within a project area under Title 11, Chapter 58, Utah Inland Port
Authority Act, shall be distributed to the Utah Inland Port Authority, created in Section
11-58-201
; and
(D) 50% of each dollar collected from the sales and use tax authorized by this part
within the lake authority boundary, as defined in Section 
11-65-101
, shall be distributed to the
Utah Lake Authority, created in Section 
11-65-201
, beginning the next full calendar quarter
following the creation of the Utah Lake Authority.
(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
July 1, 2022.
(3) (a) As used in this Subsection (3):
(i) "Eligible county, city, or town" means a county, city, or town that:
(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (3)(b)
equal to the amount described in Subsection (3)(b)(ii); and
(B) does not impose a sales and use tax under Section 
59-12-2103
 on or before July 1,
2016.
(ii) "Minimum tax revenue distribution" means the total amount of tax revenue
distributions an eligible county, city, or town received from a tax imposed in accordance with
this part for fiscal year 2004-05.
(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
imposed in accordance with this part equal to the greater of:
(i) the payment required by Subsection (2); or
(ii) the minimum tax revenue distribution.
(4) (a) For purposes of this Subsection (4):
(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to
2.55% of the participating local government's tax revenue distribution amount under
Subsection (2)(a)(i) for the previous fiscal year.
(ii) "Participating local government" means a county or municipality, as defined in
Section 
10-1-104
, that is not an eligible municipality certified in accordance with Section
35A-16-404
.
(b) For revenue collected from the tax authorized by this part that is distributed on or
after January 1, 2019, the commission, before making a tax revenue distribution under
Subsection (2)(a)(i) to a participating local government, shall:
(i) adjust a participating local government's tax revenue distribution under Subsection
(2)(a)(i) by:
(A) subtracting an amount equal to one-twelfth of the annual local contribution for
each participating local government from the participating local government's tax revenue
distribution; and
(B) if applicable, reducing the amount described in Subsection (4)(b)(i)(A) by $250 for
each bed that is available at all homeless shelters located within the boundaries of the
participating local government, as reported to the commission by the Office of Homeless
Services in accordance with Section 
35A-16-405
; and
(ii) deposit the resulting amount described in Subsection (4)(b)(i) into the Homeless
Shelter Cities Mitigation Restricted Account created in Section 
35A-16-402
.
(c) For a participating local government that qualifies to receive a distribution
described in Subsection (3), the commission shall apply the provisions of this Subsection (4)
after the commission applies the provisions of Subsection (3).
(5) (a) As used in this Subsection (5):
(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to the
total revenue an establishment described in NAICS Code 327320, Ready-Mix Concrete
Manufacturing, of the 2022 North American Industry Classification System of the federal
Executive Office of the President, Office of Management and Budget, collects and remits under
this part for a calendar year.
(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
(A) contains sand and gravel; and
(B) is assessed by the commission in accordance with Section 
59-2-201
.
(iv) "Ton" means a short ton of 2,000 pounds.
(v) "Tonnage ratio" means the ratio of:
(A) the total amount of sand and gravel, measured in tons, sold during a calendar year
from all sand and gravel extraction sites located within a county, city, or town; to
(B) the total amount of sand and gravel, measured in tons, sold during the same
calendar year from sand and gravel extraction sites statewide.
(b) For purposes of calculating the ratio described in Subsection (5)(a)(v), the
commission shall:
(i) use the gross sales data provided to the commission as part of the commission's
property tax valuation process; and
(ii) if a sand and gravel extraction site operates as a unit across municipal or county
lines, apportion the reported tonnage among the counties, cities, or towns based on the
percentage of the sand and gravel extraction site located in each county, city, or town, as
approximated by the commission.
(c) (i) Beginning July 2023, and each July thereafter, the commission shall distribute
from total collections under this part an amount equal to the annual dedicated sand and gravel
sales tax revenue for the preceding calendar year to each county, city, or town in the same
proportion as the county's, city's, or town's tonnage ratio for the preceding calendar year.
(ii) The commission shall ensure that the revenue distributed under this Subsection
(5)(c) is drawn from each jurisdiction's collections in proportion to the jurisdiction's share of
total collections for the preceding 12-month period.
(d) A county, city, or town shall use revenue described in Subsection (5)(c) for class B
or class C roads.
(6) (a) Population figures for purposes of this section shall be based on the most recent
official census or census estimate of the United States Bureau of the Census.
(b) If a needed population estimate is not available from the United States Bureau of
the Census, population figures shall be derived from the estimate from the Utah Population
Committee.
(c) The population of a county for purposes of this section shall be determined only
from the unincorporated area of the county.
Section 10. 
Effective date.
This bill takes effect on
Ŝ→ [
May
] 
 July
 ←Ŝ
1, 2024.