Rep. Norm Thurston — Voting Record

Utah House District 62 · complete roll-call record from le.utah.gov
← All votes

Bill

Utah Housing Amendments
Number
H.B. 37 (2025GS)
Sponsor
Rep. Dunnigan, James A.
Final action
Governor Signed 3/26/2025
Outcome
Became law — signed by Gov. Spencer J. Cox

Summary

This bill deals with housing development and housing policy.

What it does

  • This bill:
  • defines terms;
  • modifies the minimum population for incorporation of a new town;
  • authorizes a municipality or county to authorize additional housing density in exchange for certain requirements;
  • authorizes a municipality or county to offer incentives in an area approved for single-family or multi-family residential units to promote owner-occupied, affordable housing;
  • modifies requirements for a moderate income housing plan and a moderate income housing report;
  • authorizes a special district to provide the operation of a propane system within its boundaries;
  • authorizes the Division of Housing and Community Development to make rules regarding the content and form of a moderate income housing report;
  • requires the Governor's Office of Planning and Budget (GOPB) to develop a state housing plan by December 31, 2025;
  • requires GOPB to submit an annual written report on the implementation of the state housing plan to the Political Subdivisions Interim Committee; and
  • makes technical and conforming changes.

Every vote on this bill

2/13/2025House Comm - Substitute Recommendation
House Political Subdivisions Committee
6-0-4not eligible / no record
2/13/2025House Comm - Favorable Recommendation
House Political Subdivisions Committee
6-0-4not eligible / no record
2/20/2025House/ passed 3rd reading
Senate Secretary
58-9-8ABSENT
2/27/2025Senate Comm - Substitute Recommendation
Senate Government Operations and Political Subdivisions Committee
5-0-2not eligible / no record
2/27/2025Senate Comm - Favorable Recommendation
Senate Government Operations and Political Subdivisions Committee
4-0-3not eligible / no record
3/7/2025House/ concurs with Senate amendment
Senate President
39-30-6NAY
3/7/2025Senate/ circled
Senate 2nd Reading Calendar
0-0-29not eligible / no record
3/7/2025Senate/ uncircled
Senate 2nd Reading Calendar
0-0-29not eligible / no record
3/7/2025Senate/ substituted
Senate 2nd Reading Calendar
0-0-29not eligible / no record
3/7/2025Senate/ passed 2nd & 3rd readings/ suspension
Clerk of the House
22-6-1not eligible / no record

Bill text

enrolled version · official source
61
10-2a-201.5
10-9a-102
10-9a-403
10-9a-403.2
10-9a-403.3
10-9a-408
10-9a-535
17-27a-102
17-27a-403
17-27a-403.1
17-27a-403.2
17-27a-408
17-27a-531
17B-1-202
35A-8-202
63J-4-402
72-1-304
72-2-124
0
Utah Housing Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: Lincoln Fillmore
LONG TITLE
General Description:
This bill deals with housing development and housing policy.
Highlighted Provisions:
This bill:
defines terms;
modifies the minimum population for incorporation of a new town;
authorizes a municipality or county to authorize additional housing density in exchange 
for certain requirements;
authorizes a municipality or county to offer incentives in an area approved for 
single-family or multi-family residential units to promote owner-occupied, affordable 
housing;
modifies requirements for a moderate income housing plan and a moderate income 
housing report;
authorizes a special district to provide the operation of a propane system within its 
boundaries; 
authorizes the Division of Housing and Community Development to make rules regarding 
the content and form of a moderate income housing report;
requires the Governor's Office of Planning and Budget (GOPB) to develop a state housing 
plan by December 31, 2025;
requires GOPB to submit an annual written report on the implementation of the state 
housing plan to the Political Subdivisions Interim Committee; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-2a-201.5
, as last amended by Laws of Utah 2024, Chapters 342, 518 and 534
10-9a-102
, as last amended by Laws of Utah 2019, Chapter 384
10-9a-403
, as last amended by Laws of Utah 2024, Chapters 431, 537
10-9a-408
, as last amended by Laws of Utah 2024, Chapters 413, 438
10-9a-535
, as enacted by Laws of Utah 2022, Chapter 355
17-27a-102
, as last amended by Laws of Utah 2022, Chapter 307
17-27a-403
, as last amended by Laws of Utah 2024, Chapters 381, 431
17-27a-408
, as last amended by Laws of Utah 2024, Chapters 381, 413
17-27a-531
, as enacted by Laws of Utah 2022, Chapter 355
17B-1-202
, as last amended by Laws of Utah 2024, Chapters 53, 388
35A-8-202
, as last amended by Laws of Utah 2021, Chapter 281
72-1-304
, as last amended by Laws of Utah 2024, Chapter 517
72-2-124
, as last amended by Laws of Utah 2024, Chapters 498, 501
ENACTS:
10-9a-403.2
, Utah Code Annotated 1953
10-9a-403.3
, Utah Code Annotated 1953
17-27a-403.1
, Utah Code Annotated 1953
17-27a-403.2
, Utah Code Annotated 1953
63J-4-402
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
10-2a-201.5
 is amended to read:
10-2a-201.5
. Qualifications for incorporation.
(1)
(a)
An area may incorporate as a town in accordance with this part if the area:
(i)
(A)
is contiguous; or
(B)
is a community council area;
(ii)
has a population of at least 
100
75
 people, but fewer than 1,000 people; and
(iii)
is not already part of a municipality.
(b)
A preliminary municipality may transition to, and incorporate as, a town, in 
accordance with Section 
10-2a-510
.
(c)
An area may incorporate as a city in accordance with this part if the area:
(i)
(A)
is contiguous; or
(B)
is a community council area;
(ii)
has a population of 1,000 people or more; and
(iii)
is not already part of a municipality.
(2)
(a)
An area may not incorporate under this part if:
(i)
the area has a population of fewer than 100 people; or
(ii)
except as provided in Subsection (2)(b), the area has an average population 
density of fewer than seven people per square mile.
(b)
Subsection (2)(a)(ii) does not prohibit incorporation of an area if:
(i)
noncompliance with Subsection (2)(a)(ii) is necessary to connect separate areas 
that share a demonstrable community interest; and
(ii)
the area is contiguous.
(3)
An area incorporating under this part may not include land owned by the United States 
federal government unless:
(a)
the area, including the land owned by the United States federal government, is 
contiguous; and
(b)
(i)
incorporating the land is necessary to connect separate areas that share a 
demonstrable community interest; or
(ii)
excluding the land from the incorporating area would create an unincorporated 
island within the proposed municipality.
(4)
(a)
Except as provided in Subsection (4)(b), an area incorporating under this part may 
not include some or all of an area proposed for annexation in an annexation petition 
under Section 
10-2-403
 that:
(i)
was filed before the filing of the request for a feasibility study, described in 
Section 
10-2a-202
, relating to the incorporating area; and
(ii)
is still pending on the date the request for the feasibility study described in 
Subsection (4)(a)(i) is filed.
(b)
A feasibility request may propose for incorporation an area that includes some or all 
of an area proposed for annexation in an annexation petition described in Subsection 
(4)(a) if:
(i)
the proposed annexation area that is part of the area proposed for incorporation 
does not exceed 20% of the area proposed for incorporation;
(ii)
the feasibility request complies with Subsections 
10-2a-202
(1), (3), (4), and (5) 
with respect to excluding the proposed annexation area from the area proposed for 
incorporation; and
(iii)
excluding the area proposed for annexation from the area proposed for 
incorporation would not cause the area proposed for incorporation to not be 
contiguous.
(c)
Except as provided in Section 
10-2a-206
, the lieutenant governor shall consider each 
feasibility request to which Subsection (4)(b) applies as not proposing the 
incorporation of an area proposed for annexation.
(5)
(a)
An area incorporating under this part may not include part of a parcel of real 
property and exclude part of that same parcel unless the owner of the parcel gives 
written consent to exclude part of the parcel.
(b)
A piece of real property that has more than one parcel number is considered to be a 
single parcel for purposes of Subsection (5)(a) if owned by the same owner.
Section 2, Section 
10-9a-102
 is amended to read:
10-9a-102
. Purposes -- General land use authority.
(1)
The purposes of this chapter are to:
(a)
provide for the health, safety, and welfare;
(b)
promote the prosperity;
(c)
improve the morals, peace, good order, comfort, convenience, and aesthetics of each 
municipality and each municipality's present and future inhabitants and businesses;
(d)
protect the tax base;
(e)
secure economy in governmental expenditures;
(f)
foster the state's agricultural and other industries;
(g)
protect both urban and nonurban development;
(h)
protect and ensure access to sunlight for solar energy devices;
(i)
provide fundamental fairness in land use regulation;
(j)
facilitate orderly growth
,
and 
allow growth in a variety of housing types
, and 
contribute toward housing affordability
; and
(k)
protect property values.
(2)
To accomplish the purposes of this chapter, a municipality may enact all ordinances, 
resolutions, and rules and may enter into other forms of land use controls and 
development agreements that the municipality considers necessary or appropriate for the 
use and development of land within the municipality, including ordinances, resolutions, 
rules, restrictive covenants, easements, and development agreements governing:
(a)
uses;
(b)
density;
(c)
open spaces;
(d)
structures;
(e)
buildings;
(f)
energy efficiency;
(g)
light and air;
(h)
air quality;
(i)
transportation and public or alternative transportation;
(j)
infrastructure;
(k)
street and building orientation;
(l)
width requirements;
(m)
public facilities;
(n)
fundamental fairness in land use regulation; and
(o)
considerations of surrounding land uses to balance the foregoing purposes with a 
landowner's private property interests and associated statutory and constitutional 
protections.
(3)
(a)
Any ordinance, resolution, or rule enacted by a municipality pursuant to its 
authority under this chapter shall comply with the state's exclusive jurisdiction to 
regulate oil and gas activity, as described in Section 
40-6-2.5
.
(b)
A municipality may enact an ordinance, resolution, or rule that regulates surface 
activity incident to an oil and gas activity if the municipality demonstrates that the 
regulation:
(i)
is necessary for the purposes of this chapter;
(ii)
does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
(iii)
does not interfere with the state's exclusive jurisdiction to regulate oil and gas 
activity, as described in Section 
40-6-2.5
.
Section 3, Section 
10-9a-403
 is amended to read:
10-9a-403
. General plan preparation.
(1)
(a)
The planning commission shall provide notice, as provided in Section 
10-9a-203
, 
of the planning commission's intent to make a recommendation to the municipal 
legislative body for a general plan or a comprehensive general plan amendment when 
the planning commission initiates the process of preparing the planning commission's 
recommendation.
(b)
The planning commission shall make and recommend to the legislative body a 
proposed general plan for the area within the municipality.
(c)
The plan may include areas outside the boundaries of the municipality if, in the 
planning commission's judgment, those areas are related to the planning of the 
municipality's territory.
(d)
Except as otherwise provided by law or with respect to a municipality's power of 
eminent domain, when the plan of a municipality involves territory outside the 
boundaries of the municipality, the municipality may not take action affecting that 
territory without the concurrence of the county or other municipalities affected.
(2)
(a)
At a minimum, the proposed general plan, with the accompanying maps, charts, 
and descriptive and explanatory matter, shall include the planning commission's 
recommendations for the following plan elements:
(i)
a land use element that:
(A)
designates the long-term goals and the proposed extent, general distribution, 
and location of land for housing for residents of various income levels, 
business, industry, agriculture, recreation, education, public buildings and 
grounds, open space, and other categories of public and private uses of land as 
appropriate;
(B)
includes a statement of the projections for and standards of population density 
and building intensity recommended for the various land use categories 
covered by the plan;
(C)
except for a city of the fifth class or a town, is coordinated to integrate the 
land use element with the water use and preservation element; and
(D)
except for a city of the fifth class or a town, accounts for the effect of land use 
categories and land uses on water demand;
(ii)
a transportation and traffic circulation element that:
(A)
provides the general location and extent of existing and proposed freeways, 
arterial and collector streets, public transit, active transportation facilities, and 
other modes of transportation that the planning commission considers 
appropriate;
(B)
for a municipality that has access to a major transit investment corridor, 
addresses the municipality's plan for residential and commercial development 
around major transit investment corridors to maintain and improve the 
connections between housing, employment, education, recreation, and 
commerce;
(C)
for a municipality that does not have access to a major transit investment 
corridor, addresses the municipality's plan for residential and commercial 
development in areas that will maintain and improve the connections between 
housing, transportation, employment, education, recreation, and commerce; and
(D)
correlates with the population projections, the employment projections, and 
the proposed land use element of the general plan;
(iii)
a moderate income housing element that:
(A)
provides a realistic opportunity to meet the need for additional moderate 
income housing within the municipality during the next five years;
(B)
for a 
town
municipality that is not a specified municipality
, may include a 
recommendation to implement three or more of the moderate income housing 
strategies described in Subsection (2)(b)(iii);
(C)
for a specified municipality, as defined in Section 
10-9a-408
, that does not 
have a fixed guideway public transit station, shall include a recommendation to 
implement three or more of the moderate income housing strategies described 
in Subsection (2)(b)(iii)
 or at least one of the moderate income housing 
strategies described in Subsections (2)(b)(iii)(X) through (CC)
;
(D)
for a specified municipality, as defined in Section 
10-9a-408
, that has a fixed 
guideway public transit station, shall include
:
(I)
a recommendation to implement five or more of the moderate income 
housing strategies described in Subsection (2)(b)(iii), of which one shall be 
the moderate income housing strategy described in Subsection 
(2)(b)(iii)(W),
(2)(b)(iii)(U)
 and one shall be a moderate income housing 
strategy described in Subsection (2)(b)(iii)(G)
,
 or
 (H)
, or (Q); 
; or
(II)
a recommendation to implement the moderate income housing strategy 
described in Subsection (2)(b)(iii)(U), one of the moderate income housing 
strategies described in Subsections (2)(b)(iii)(X) through (CC), and one 
moderate income housing strategy described in Subsection 
(2)(b)(iii)
; 
and
(E)
for a specified municipality, as defined in Section 
10-9a-408
, shall include an 
implementation plan as provided in Subsection (2)(c); and
(iv)
except for a city of the fifth class or a town, a water use and preservation element 
that addresses:
(A)
the effect of permitted development or patterns of development on water 
demand and water infrastructure;
(B)
methods of reducing water demand and per capita consumption for future 
development;
(C)
methods of reducing water demand and per capita consumption for existing 
development; and
(D)
opportunities for the municipality to modify the municipality's operations to 
eliminate practices or conditions that waste water.
(b)
In drafting the moderate income housing element, the planning commission:
(i)
shall consider the Legislature's determination that municipalities shall facilitate a 
reasonable opportunity for a variety of housing, including moderate income 
housing:
(A)
to meet the needs of people of various income levels living, working, or 
desiring to live or work in the community; and
(B)
to allow people with various incomes to benefit from and fully participate in 
all aspects of neighborhood and community life;
(ii)
for a 
town
municipality that is not a specified municipality
, may include, and for 
a specified municipality as defined in Section 
10-9a-408
, shall include, an analysis 
of how the municipality will provide a realistic opportunity for the development of 
moderate income housing within the next five years;
(iii)
for a 
town
municipality that is not a specified municipality
, may include, and 
for a specified municipality as defined in Section 
10-9a-408
, shall include a 
recommendation to implement the required number of any of the following 
moderate income housing strategies as specified in Subsection (2)(a)(iii):
(A)
rezone for densities necessary to facilitate the production of moderate income 
housing;
(B)
demonstrate investment in the rehabilitation or expansion of infrastructure that 
facilitates the construction of moderate income housing;
(C)
demonstrate investment in the rehabilitation of existing uninhabitable housing 
stock into moderate income housing;
(D)
identify and utilize general fund subsidies or other sources of revenue to 
waive construction related fees that are otherwise generally imposed by the 
municipality for the construction or rehabilitation of moderate income housing;
(E)
create or allow for, and reduce regulations related to, internal or detached 
accessory dwelling units in residential zones;
(F)
zone or rezone for higher density or moderate income residential development 
in commercial or mixed-use zones near major transit investment corridors, 
commercial centers, or employment centers;
(G)
amend land use regulations to allow for higher density or new moderate 
income residential development in commercial or mixed-use zones near major 
transit investment corridors;
(H)
amend land use regulations to eliminate or reduce parking requirements for 
residential development where a resident is less likely to rely on the resident's 
own vehicle, such as residential development near major transit investment 
corridors or senior living facilities;
(I)
amend land use regulations to allow for single room occupancy developments;
(J)
implement zoning incentives for moderate income units in new developments;
(K)
preserve existing and new moderate income housing and subsidized units by 
utilizing a landlord incentive program, providing for deed restricted units 
through a grant program, or, notwithstanding Section 
10-9a-535
, establishing a 
housing loss mitigation fund;
(L)
reduce, waive, or eliminate impact fees related to moderate income housing;
(M)
demonstrate creation of, or participation in, a community land trust program 
for moderate income housing;
(N)
implement a mortgage assistance program for employees of the municipality, 
an employer that provides contracted services to the municipality, or any other 
public employer that operates within the municipality;
(O)
apply for or partner with an entity that applies for state or federal funds or tax 
incentives to promote the construction of moderate income housing, an entity 
that applies for programs offered by the Utah Housing Corporation within that 
agency's funding capacity, an entity that applies for affordable housing 
programs administered by the Department of Workforce Services, an entity 
that applies for affordable housing programs administered by an association of 
governments established by an interlocal agreement under Title 11, Chapter 13, 
Interlocal Cooperation Act, an entity that applies for services provided by a 
public housing authority to preserve and create moderate income housing, or 
any other entity that applies for programs or services that promote the 
construction or preservation of moderate income housing;
(P)
demonstrate utilization of a moderate income housing set aside from a 
community reinvestment agency, redevelopment agency, or community 
development and renewal agency to create or subsidize moderate income 
housing;
(Q)
create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 
3, Part 6, Housing and Transit Reinvestment Zone Act;
(R)
create a home ownership promotion zone pursuant to Part 10, Home 
Ownership Promotion Zone for Municipalities;
(S)
(Q)
eliminate impact fees for any accessory dwelling unit that is not an 
internal accessory dwelling unit as defined in Section 
10-9a-530
;
(T)
(R)
create a program to transfer development rights for moderate income 
housing;
(U)
(S)
ratify a joint acquisition agreement with another local political 
subdivision for the purpose of combining resources to acquire property for 
moderate income housing;
(V)
(T)
develop a moderate income housing project for residents who are 
disabled or 55 years old or older;
(W)
(U)
develop and adopt a station area plan in accordance with Section 
10-9a-403.1
;
(X)
(V)
create or allow for, and reduce regulations related to, multifamily 
residential dwellings compatible in scale and form with detached single-family 
residential dwellings and located in walkable communities within residential or 
mixed-use zones; 
(Y)
create a first home investment zone in accordance with Title 63N, Chapter 3, 
Part 16, First Home Investment Zone Act; and
(Z)
(W)
demonstrate implementation of any other program or strategy to address 
the housing needs of residents of the municipality who earn less than 80% of 
the area median income, including the dedication of a local funding source to 
moderate income housing or the adoption of a land use ordinance that requires 
10% or more of new residential development in a residential zone be dedicated 
to moderate income housing;
 and
(X)
create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 
3, Part 6, Housing and Transit Reinvestment Zone Act;
(Y)
create a home ownership promotion zone pursuant to Part 10, Home 
Ownership Promotion Zone for Municipalities;
(Z)
create a first home investment zone in accordance with Title 63N, Chapter 3, 
Part 16, First Home Investment Zone Act;
(AA)
approve a project that receives funding from, or qualifies to receive funding 
from, the Utah Homes Investment Program created in Title 51, Chapter 12, 
Utah Homes Investment Program;
(BB)
adopt or approve a qualifying affordable home ownership density bonus for 
single-family residential units, as described in Section 
10-9a-403.2
; and
(CC)
adopt or approve a qualifying affordable home ownership density bonus for 
multi-family residential units, as described in Section 
10-9a-403.3
; and
(iv)
shall identify each moderate income housing strategy recommended to the 
legislative body for implementation by restating the exact language used to 
describe the strategy in Subsection (2)(b)(iii).
(c)
(i)
In drafting the implementation plan portion of the moderate income housing 
element as described in Subsection (2)(a)(iii)(C), the planning commission shall 
recommend to the legislative body the establishment of a five-year timeline for 
implementing each of the moderate income housing strategies selected by the 
municipality for implementation.
(ii)
The timeline described in Subsection (2)(c)(i) shall:
(A)
identify specific measures and benchmarks for implementing each moderate 
income housing strategy selected by the municipality, whether one-time or 
ongoing; and
(B)
provide flexibility for the municipality to make adjustments as needed.
(d)
In drafting the land use element, the planning commission shall:
(i)
identify and consider each agriculture protection area within the municipality;
(ii)
avoid proposing a use of land within an agriculture protection area that is 
inconsistent with or detrimental to the use of the land for agriculture; and
(iii)
consider and coordinate with any station area plans adopted by the municipality 
if required under Section 
10-9a-403.1
.
(e)
In drafting the transportation and traffic circulation element, the planning 
commission shall:
(i)
(A)
consider and coordinate with the regional transportation plan developed by 
the municipality's region's metropolitan planning organization, if the 
municipality is within the boundaries of a metropolitan planning organization; 
or
(B)
consider and coordinate with the long-range transportation plan developed by 
the Department of Transportation, if the municipality is not within the 
boundaries of a metropolitan planning organization; and
(ii)
consider and coordinate with any station area plans adopted by the municipality if 
required under Section 
10-9a-403.1
.
(f)
In drafting the water use and preservation element, the planning commission:
(i)
shall consider:
(A)
applicable regional water conservation goals recommended by the Division of 
Water Resources; and
(B)
if Section 
73-10-32
 requires the municipality to adopt a water conservation 
plan pursuant to Section 
73-10-32
, the municipality's water conservation plan;
(ii)
shall include a recommendation for:
(A)
water conservation policies to be determined by the municipality; and
(B)
landscaping options within a public street for current and future development 
that do not require the use of lawn or turf in a parkstrip;
(iii)
shall review the municipality's land use ordinances and include a 
recommendation for changes to an ordinance that promotes the inefficient use of 
water;
(iv)
shall consider principles of sustainable landscaping, including the:
(A)
reduction or limitation of the use of lawn or turf;
(B)
promotion of site-specific landscape design that decreases stormwater runoff 
or runoff of water used for irrigation;
(C)
preservation and use of healthy trees that have a reasonable water requirement 
or are resistant to dry soil conditions;
(D)
elimination or regulation of ponds, pools, and other features that promote 
unnecessary water evaporation;
(E)
reduction of yard waste; and
(F)
use of an irrigation system, including drip irrigation, best adapted to provide 
the optimal amount of water to the plants being irrigated;
(v)
shall consult with the public water system or systems serving the municipality 
with drinking water regarding how implementation of the land use element and 
water use and preservation element may affect:
(A)
water supply planning, including drinking water source and storage capacity 
consistent with Section 
19-4-114
; and
(B)
water distribution planning, including master plans, infrastructure asset 
management programs and plans, infrastructure replacement plans, and impact 
fee facilities plans;
(vi)
shall consult with the Division of Water Resources for information and technical 
resources regarding regional water conservation goals, including how 
implementation of the land use element and the water use and preservation 
element may affect the Great Salt Lake;
(vii)
may include recommendations for additional water demand reduction strategies, 
including:
(A)
creating a water budget associated with a particular type of development;
(B)
adopting new or modified lot size, configuration, and landscaping standards 
that will reduce water demand for new single family development;
(C)
providing one or more water reduction incentives for existing development 
such as modification of existing landscapes and irrigation systems and 
installation of water fixtures or systems that minimize water demand;
(D)
discouraging incentives for economic development activities that do not 
adequately account for water use or do not include strategies for reducing 
water demand; and
(E)
adopting water concurrency standards requiring that adequate water supplies 
and facilities are or will be in place for new development; and
(viii)
for a town, may include, and for another municipality, shall include, a 
recommendation for low water use landscaping standards for a new:
(A)
commercial, industrial, or institutional development;
(B)
common interest community, as defined in Section 
57-25-102
; or
(C)
multifamily housing project.
(3)
The proposed general plan may include:
(a)
an environmental element that addresses:
(i)
the protection, conservation, development, and use of natural resources, including 
the quality of:
(A)
air;
(B)
forests;
(C)
soils;
(D)
rivers;
(E)
groundwater and other waters;
(F)
harbors;
(G)
fisheries;
(H)
wildlife;
(I)
minerals; and
(J)
other natural resources; and
(ii)
(A)
the reclamation of land, flood control, prevention and control of the 
pollution of streams and other waters;
(B)
the regulation of the use of land on hillsides, stream channels and other 
environmentally sensitive areas;
(C)
the prevention, control, and correction of the erosion of soils;
(D)
the preservation and enhancement of watersheds and wetlands; and
(E)
the mapping of known geologic hazards;
(b)
a public services and facilities element showing general plans for sewage, water, 
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for 
them, police and fire protection, and other public services;
(c)
a rehabilitation, redevelopment, and conservation element consisting of plans and 
programs for:
(i)
historic preservation;
(ii)
the diminution or elimination of a development impediment as defined in Section 
17C-1-102
; and
(iii)
redevelopment of land, including housing sites, business and industrial sites, and 
public building sites;
(d)
an economic element composed of appropriate studies and forecasts, as well as an 
economic development plan, which may include review of existing and projected 
municipal revenue and expenditures, revenue sources, identification of basic and 
secondary industry, primary and secondary market areas, employment, and retail 
sales activity;
(e)
recommendations for implementing all or any portion of the general plan, including 
the adoption of land and water use ordinances, capital improvement plans, 
community development and promotion, and any other appropriate action;
(f)
provisions addressing any of the matters listed in Subsection 
10-9a-401
(2) or (3); and
(g)
any other element the municipality considers appropriate.
Section 4, Section 
10-9a-403.2
 is enacted to read:
10-9a-403.2
. Affordable home ownership density bonus for single-family 
residential units.
(1)
As used in this section:
(a)
"Affordable housing" means a dwelling:
(i)
offered for sale to an owner-occupier at a purchase price affordable to a household 
with a gross income of no more than 120% of area median income for the county 
in which the residential unit is offered for sale; or
(ii)
offered for rent at a rental price affordable to a household with a gross income of 
no more than 80% of area median income for the county in which the residential 
unit is offered for rent.
(b)
"Owner-occupier" means an individual who owns, solely or jointly, a housing unit in 
which the individual lives as the individual's primary residence.
(c)
"Qualifying affordable home ownership single-family density bonus" means:
(i)
for an area with an underlying zoning density of less than six residential units per 
acre, municipal approval of a density at least six residential units per acre; or
(ii)
for an area with an underlying zoning density of six residential units per acre or 
more, municipal approval of a density at least 0.5 residential units per acre greater 
than the underlying zoning density for the area.
(2)
If a municipality approves a qualifying affordable home ownership single-family 
density bonus, either through a zoning ordinance or a development agreement, the 
municipality may adopt requirements for the qualifying affordable home ownership 
single-family density bonus area to ensure:
(a)
at least 60% of the total single-family residential units be deed-restricted to 
owner-occupancy for at least five years;
(b)
at least 25% of the total single-family residential units qualify as affordable housing;
(c)
at least 25% of the single-family residential units per acre to be no larger than 1,600 
square feet; or
(d)
the applicant creates a preferential qualifying buyer program in which a 
single-family residential unit is initially offered for sale, for up to 30 days, to a 
category of preferred qualifying buyers established by the municipality, in 
accordance with provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
(3)
A municipality may offer additional incentives in a qualifying affordable home 
ownership single-family density bonus area approved for single-family residential units 
to promote owner-occupied, affordable housing.
Section 5, Section 
10-9a-403.3
 is enacted to read:
10-9a-403.3
. Affordable home ownership density bonus for multi-family 
residential units.
(1)
As used in this section:
(a)
"Affordable housing" means the same as that term is defined in Section 
10-9a-403.2
.
(b)
"Owner-occupier" means the same as that term is defined in Section 
10-9a-403.2
.
(c)
"Qualifying affordable home ownership multi-family density bonus" means 
municipal approval of a density of at least 20 residential units per acre.
(2)
If a municipality approves a qualifying affordable home ownership multi-family density 
bonus, either through a zoning ordinance or a development agreement, the municipality 
may adopt requirements for the qualifying affordable home ownership multi-family 
density bonus area to ensure:
(a)
at least 20% more residential units per acre than are otherwise allowed in the area;
(b)
at least 60% of the total units in the multi-family residential building be 
deed-restricted to owner-occupancy for at least five years;
(c)
at least 25% of the total units in the multi-family residential building qualify as 
affordable housing;
(d)
at least 25% of the total units in a multi-family residential building to be no larger 
than 1,600 square feet; or
(e)
the applicant creates a preferential qualifying buyer program in which a unit in a 
multi-family residential building is initially offered for sale, for up to 30 days, to a 
category of preferred qualifying buyers established by the municipality, in 
accordance with provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
(3)
A municipality may offer additional incentives in a qualifying affordable home 
ownership multi-family density bonus area for multi-family residential units to promote 
owner-occupied, affordable housing.
Section 6, Section 
10-9a-408
 is amended to read:
10-9a-408
. Moderate income housing report -- Contents -- Prioritization for 
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
(1)
As used in this section:
(a)
"Division" means the Housing and Community Development Division within the 
Department of Workforce Services.
(b)
"Implementation plan" means the implementation plan adopted as part of the 
moderate income housing element of a specified municipality's general plan as 
provided in Subsection 
10-9a-403
(2)(c).
(c)
"Initial report" or "initial moderate income housing report" means the one-time report 
described in Subsection (2).
(d)
"Moderate income housing strategy" means a strategy described in Subsection 
10-9a-403
(2)(b)(iii).
(e)
"Report" means an initial report or a subsequent progress report.
(f)
"Specified municipality" means:
(i)
a city of the first, second, third, or fourth class; or
(ii)
a city of the fifth class with a population of 5,000 or more, if the city is located 
within a county of the first, second, or third class.
(g)
"Subsequent progress report" means the annual report described in Subsection (3).
(2)
(a)
The legislative body of a specified municipality shall submit an initial report to 
the division.
(b)
(i)
This Subsection (2)(b) applies to a municipality that is not a specified 
municipality as of January 1, 2023.
(ii)
As of January 1, if a municipality described in Subsection (2)(b)(i) changes from 
one class to another or grows in population to qualify as a specified municipality, 
the municipality shall submit an initial plan to the division on or before August 1 
of the first calendar year beginning on January 1 in which the municipality 
qualifies as a specified municipality.
(c)
The initial report shall:
(i)
identify each moderate income housing strategy selected by the specified 
municipality for continued, ongoing, or one-time implementation, restating the 
exact language used to describe the moderate income housing strategy in 
Subsection 
10-9a-403
(2)(b)(iii); and
(ii)
include an implementation plan.
(3)
(a)
After the division approves a specified municipality's initial report under this 
section, the specified municipality shall, as an administrative act, annually submit to 
the division a subsequent progress report on or before August 1 of each year after the 
year in which the specified municipality is required to submit the initial report.
(b)
The subsequent progress report shall include:
(i)
subject to Subsection (3)(c), a description of each action, whether one-time or 
ongoing, taken by the specified municipality during the previous 12-month period 
to implement the moderate income housing strategies identified in the initial 
report for implementation;
(ii)
a description of each land use regulation or land use decision made by the 
specified municipality during the previous 12-month period to implement the 
moderate income housing strategies, including an explanation of how the land use 
regulation or land use decision supports the specified municipality's efforts to 
implement the moderate income housing strategies;
(iii)
a description of any barriers encountered by the specified municipality in the 
previous 12-month period in implementing the moderate income housing 
strategies;
(iv)
information regarding the number of internal and external or detached accessory 
dwelling units located within the specified municipality for which the specified 
municipality:
(A)
issued a building permit to construct; or
(B)
issued a business license or comparable license or permit to rent;
(v)
the number of residential dwelling units that have been entitled that have not 
received a building permit as of the submission date of the progress report;
(vi)
shapefiles, or website links if shapefiles are not available, to current maps and 
tables related to zoning;
(vii)
a description of how the market has responded to the selected moderate income 
housing strategies, including the number of entitled moderate income housing 
units or other relevant data; and
(viii)
any recommendations on how the state can support the specified municipality 
in implementing the moderate income housing strategies.
(c)
For purposes of describing actions taken by a specified municipality under 
Subsection (3)(b)(i), the specified municipality may include an ongoing action taken 
by the specified municipality prior to the 12-month reporting period applicable to the 
subsequent progress report if the specified municipality:
(i)
has already adopted an ordinance, approved a land use application, made an 
investment, or approved an agreement or financing that substantially promotes the 
implementation of a moderate income housing strategy identified in the initial 
report; and
(ii)
demonstrates in the subsequent progress report that the action taken under 
Subsection (3)(c)(i) is relevant to making meaningful progress towards the 
specified municipality's implementation plan.
(d)
A specified municipality's report shall be in a form:
(i)
approved by the division; and
(ii)
made available by the division on or before May 1 of the year in which the report 
is required.
(4)
Within 90 days after the day on which the division receives a specified municipality's 
report, the division shall:
(a)
post the report on the division's website;
(b)
send a copy of the report to the Department of Transportation, the Governor's Office 
of Planning and Budget, the association of governments in which the specified 
municipality is located, and, if the specified municipality is located within the 
boundaries of a metropolitan planning organization, the appropriate metropolitan 
planning organization; and
(c)
subject to Subsection (5), review the report to determine compliance with this section.
(5)
(a)
An initial report 
does not comply
complies
 with this section 
unless
if
 the report:
(i)
includes the information required under Subsection (2)(c);
(ii)
demonstrates to the division that the specified municipality made plans to 
implement:
(A)
three or more moderate income housing strategies if the specified 
municipality does not have a fixed guideway public transit station; or
(B)
subject to Subsection 
10-9a-403
(2)(b)(iv), five or more moderate income 
housing strategies 
if the specified municipality has a fixed guideway public 
transit station
:
(I)
five or more of the moderate income housing strategies described in 
Subsection 
10-9a-403(2)(b)(iii)
, of which one shall be the moderate income 
housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(U)
 and one 
shall be a moderate income housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(G)
 or (H)
; 
or
(II)
the moderate income housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(U)
, one of the moderate income housing strategies 
described in Subsections 
10-9a-403(2)(b)(iii)(X)
 through (CC), and one 
moderate income strategy described in Subsection 
10-9a-403(2)(b)(iii)
; 
and
(iii)
is in a form approved by the division.
(b)
A subsequent progress report 
does not comply
complies
 with this section 
unless
if
the report:
(i)
demonstrates to the division that the specified municipality made plans to 
implement:
(A)
three or more moderate income housing strategies if the specified 
municipality does not have a fixed guideway public transit station; or
(B)
subject to the requirements of Subsection 
10-9a-403
(2)(a)(iii)(D), five or 
more moderate income housing strategies 
if the specified municipality has a 
fixed guideway public transit station
;
:
(I)
five or more of the moderate income housing strategies described in 
Subsection 
10-9a-403(2)(b)(iii)
, of which one shall be the moderate income 
housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(U)
 and one 
shall be a moderate income housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(G)
 or (H); or
(II)
the moderate income housing strategy described in Subsection 
10-9a-403(2)(b)(iii)(U)
, one of the moderate income housing strategies 
described in Subsections 
10-9a-403(2)(b)(iii)(X)
 through (CC), and one 
moderate income housing strategy described in Subsection 
10-9a-403(2)(b)(iii)
;
(ii)
is in a form approved by the division; and
(iii)
provides sufficient information for the division to:
(A)
assess the specified municipality's progress in implementing the moderate 
income housing strategies;
(B)
monitor compliance with the specified municipality's implementation plan;
(C)
identify a clear correlation between the specified municipality's land use 
regulations and land use decisions and the specified municipality's efforts to 
implement the moderate income housing strategies;
(D)
identify how the market has responded to the specified municipality's selected 
moderate income housing strategies; and
(E)
identify any barriers encountered by the specified municipality in 
implementing the selected moderate income housing strategies.
(c)
(i)
Notwithstanding the requirements of Subsection 
(5)(a)
(ii)(A) or (b)(i)(A), if a 
specified municipality without a fixed guideway public transit station implements 
or is implementing, by ordinance or development agreement, one of the following 
moderate income housing strategies, the division shall consider that one moderate 
income housing strategy to be the equivalent of three moderate income housing 
strategies:
(A)
a housing and transit reinvestment zone, as described in Subsection 
10-9a-403(2)(b)(iii)(X)
;
(B)
a home ownership promotion zone, as described in Subsection 
10-9a-403(2)(b)(iii)(Y)
;
(C)
a first home investment zone, described in Subsection 
10-9a-403(2)(b)(iii)(Z)
;
(D)
the approval of a project described in Subsection 
10-9a-403(2)(b)(iii)(AA)
;
(E)
a qualifying affordable home ownership density bonus for single-family 
residential units, as described in Subsection 
10-9a-403(2)(b)(iii)(BB)
; or
(F)
a qualifying affordable home ownership density bonus for multi-family 
residential units, as described in Subsection 
10-9a-403(2)(b)(iii)(CC)
.
(ii)
If the division considers one moderate income housing strategy described in 
Subsection 
(5)(c)(i)
 as the equivalent of three moderate income housing strategies, 
the division shall also consider the specified municipality compliant with the 
reporting requirement described in this section for:
(A)
the year in which the specified municipality submits the initial report or 
subsequent report; and
(B)
two subsequent reporting years.
(6)
(a)
A specified municipality qualifies for priority consideration under this Subsection 
(6) if the specified municipality's report:
(i)
complies with this section; and
(ii)
demonstrates to the division that the specified municipality made plans to 
implement:
(A)
five or more moderate income housing strategies if the specified municipality 
does not have a fixed guideway public transit station; or
(B)
six or more moderate income housing strategies if the specified municipality 
has a fixed guideway public transit station.
(b)
The Transportation Commission may, in accordance with Subsection 
72-1-304
(3)(c), 
give priority consideration to transportation projects located within the boundaries of 
a specified municipality described in Subsection (6)(a) until the Department of 
Transportation receives notice from the division under Subsection (6)(e).
(c)
Upon determining that a specified municipality qualifies for priority consideration 
under this Subsection (6), the division shall send a notice of prioritization to the 
legislative body of the specified municipality and the Department of Transportation.
(d)
The notice described in Subsection (6)(c) shall:
(i)
name the specified municipality that qualifies for priority consideration;
(ii)
describe the funds or projects for which the specified municipality qualifies to 
receive priority consideration; and
(iii)
state the basis for the division's determination that the specified municipality 
qualifies for priority consideration.
(e)
The division shall notify the legislative body of a specified municipality and the 
Department of Transportation in writing if the division determines that the specified 
municipality no longer qualifies for priority consideration under this Subsection (6).
(7)
(a)
If the division, after reviewing a specified municipality's report, determines that 
the report does not comply with this section, the division shall send a notice of 
noncompliance to the legislative body of the specified municipality.
(b)
A specified municipality that receives a notice of noncompliance may:
(i)
cure each deficiency in the report within 90 days after the day on which the notice 
of noncompliance is sent; or
(ii)
request an appeal of the division's determination of noncompliance within 10 
days after the day on which the notice of noncompliance is sent.
(c)
The notice described in Subsection (7)(a) shall:
(i)
describe each deficiency in the report and the actions needed to cure each 
deficiency;
(ii)
state that the specified municipality has an opportunity to:
(A)
submit to the division a corrected report that cures each deficiency in the 
report within 90 days after the day on which the notice of compliance is sent; or
(B)
submit to the division a request for an appeal of the division's determination of 
noncompliance within 10 days after the day on which the notice of 
noncompliance is sent; and
(iii)
state that failure to take action under Subsection (7)(c)(ii) will result in the 
specified municipality's ineligibility for funds under Subsection (9).
(d)
For purposes of curing the deficiencies in a report under this Subsection (7), if the 
action needed to cure the deficiency as described by the division requires the 
specified municipality to make a legislative change, the specified municipality may 
cure the deficiency by making that legislative change within the 90-day cure period.
(e)
(i)
If a specified municipality submits to the division a corrected report in 
accordance with Subsection (7)(b)(i) and the division determines that the 
corrected report does not comply with this section, the division shall send a 
second notice of noncompliance to the legislative body of the specified 
municipality within 30 days after the day on which the corrected report is 
submitted.
(ii)
A specified municipality that receives a second notice of noncompliance may 
submit to the division a request for an appeal of the division's determination of 
noncompliance within 10 days after the day on which the second notice of 
noncompliance is sent.
(iii)
The notice described in Subsection (7)(e)(i) shall:
(A)
state that the specified municipality has an opportunity to submit to the 
division a request for an appeal of the division's determination of 
noncompliance within 10 days after the day on which the second notice of 
noncompliance is sent; and
(B)
state that failure to take action under Subsection (7)(e)(iii)(A) will result in the 
specified municipality's ineligibility for funds under Subsection (9).
(8)
(a)
A specified municipality that receives a notice of noncompliance under 
Subsection (7)(a) or (7)(e)(i) may request an appeal of the division's determination of 
noncompliance within 10 days after the day on which the notice of noncompliance is 
sent.
(b)
Within 90 days after the day on which the division receives a request for an appeal, 
an appeal board consisting of the following three members shall review and issue a 
written decision on the appeal:
(i)
one individual appointed by the Utah League of Cities and Towns;
(ii)
one individual appointed by the Utah Homebuilders Association; and
(iii)
one individual appointed by the presiding member of the association of 
governments, established pursuant to an interlocal agreement under Title 11, 
Chapter 13, Interlocal Cooperation Act, of which the specified municipality is a 
member.
(c)
The written decision of the appeal board shall either uphold or reverse the division's 
determination of noncompliance.
(d)
The appeal board's written decision on the appeal is final.
(9)
(a)
A specified municipality is ineligible for funds under this Subsection (9) if:
(i)
the specified municipality fails to submit a report to the division;
(ii)
after submitting a report to the division, the division determines that the report 
does not comply with this section and the specified municipality fails to:
(A)
cure each deficiency in the report within 90 days after the day on which the 
notice of noncompliance is sent; or
(B)
request an appeal of the division's determination of noncompliance within 10 
days after the day on which the notice of noncompliance is sent;
(iii)
after submitting to the division a corrected report to cure the deficiencies in a 
previously submitted report, the division determines that the corrected report does 
not comply with this section and the specified municipality fails to request an 
appeal of the division's determination of noncompliance within 10 days after the 
day on which the second notice of noncompliance is sent; or
(iv)
after submitting a request for an appeal under Subsection (8), the appeal board 
issues a written decision upholding the division's determination of noncompliance.
(b)
The following apply to a specified municipality described in Subsection (9)(a) until 
the division provides notice under Subsection (9)(e):
(i)
the executive director of the Department of Transportation may not program funds 
from the Transportation Investment Fund of 2005, including the Transit 
Transportation Investment Fund, to projects located within the boundaries of the 
specified municipality in accordance with Subsection 
72-2-124
(5);
(ii)
beginning with a report submitted in 2024, the specified municipality shall pay a 
fee to the Olene Walker Housing Loan Fund in the amount of $250 per day that 
the specified municipality:
(A)
fails to submit the report to the division in accordance with this section, 
beginning the day after the day on which the report was due; or
(B)
fails to cure the deficiencies in the report, beginning the day after the day by 
which the cure was required to occur as described in the notice of 
noncompliance under Subsection (7); and
(iii)
beginning with the report submitted in 2025, the specified municipality shall pay 
a fee to the Olene Walker Housing Loan Fund in the amount of $500 per day that 
the specified municipality, in a consecutive year:
(A)
fails to submit the report to the division in accordance with this section, 
beginning the day after the day on which the report was due; or
(B)
fails to cure the deficiencies in the report, beginning the day after the day by 
which the cure was required to occur as described in the notice of 
noncompliance under Subsection (7).
(c)
Upon determining that a specified municipality is ineligible for funds under this 
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the 
division shall send a notice of ineligibility to the legislative body of the specified 
municipality, the Department of Transportation, the State Tax Commission, and the 
Governor's Office of Planning and Budget.
(d)
The notice described in Subsection (9)(c) shall:
(i)
name the specified municipality that is ineligible for funds;
(ii)
describe the funds for which the specified municipality is ineligible to receive; 
(iii)
describe the fee the specified municipality is required to pay under Subsection 
(9)(b), if applicable; and
(iv)
state the basis for the division's determination that the specified municipality is 
ineligible for funds.
(e)
The division shall notify the legislative body of a specified municipality and the 
Department of Transportation in writing if the division determines that the provisions 
of this Subsection (9) no longer apply to the specified municipality.
(f)
The division may not determine that a specified municipality that is required to pay a 
fee under Subsection (9)(b) is in compliance with the reporting requirements of this 
section until the specified municipality pays all outstanding fees required under 
Subsection (9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A, 
Chapter 8, Part 5, Olene Walker Housing Loan Fund.
(10)
In a civil action seeking enforcement or claiming a violation of this section or of 
Subsection 
10-9a-404
(4)(c), a plaintiff may not recover damages but may be awarded 
only injunctive or other equitable relief.
Section 7, Section 
10-9a-535
 is amended to read:
10-9a-535
. Moderate income housing.
(1)
A municipality may only require the development of a certain number of moderate 
income housing units as a condition of approval of a land use application if:
(a)
the municipality and the applicant enter into a written agreement regarding the 
number of moderate income housing units;
 or
(b)
the municipality provides incentives for an applicant who agrees to include moderate 
income housing units in a development
.
; or
(c)
the municipality offers or approves, and an applicant accepts, an incentive described 
in Section 
10-9a-403.2
 or 
10-9a-403.3
.
(2)
If an applicant does not agree to participate in the development of moderate income 
housing units under Subsection 
(1)(a)
 or 
(b)
, a municipality may not take into 
consideration the applicant's decision in the municipality's determination of whether to 
approve or deny a land use application.
(3)
Notwithstanding Subsections 
(1)
 and 
(2)
, a municipality that imposes a resort 
community sales and use tax as described in Section 
59-12-401
, may require the 
development of a certain number of moderate income housing units as a condition of 
approval of a land use application if the requirement is in accordance with an ordinance 
enacted by the municipality before January 1, 2022.
Section 8, Section 
17-27a-102
 is amended to read:
17-27a-102
. Purposes -- General land use authority -- Limitations.
(1)
(a)
The purposes of this chapter are to:
(i)
provide for the health, safety, and welfare;
(ii)
promote the prosperity;
(iii)
improve the morals, peace, good order, comfort, convenience, and aesthetics of 
each county and each county's present and future inhabitants and businesses;
(iv)
protect the tax base;
(v)
secure economy in governmental expenditures;
(vi)
foster the state's agricultural and other industries;
(vii)
protect both urban and nonurban development;
(viii)
protect and ensure access to sunlight for solar energy devices;
(ix)
provide fundamental fairness in land use regulation;
(x)
facilitate orderly growth
,
and 
allow growth in a variety of housing types
, and 
contribute toward housing affordability
; and
(xi)
protect property values.
(b)
Subject to Subsection 
(4)
 and Section 
11-41-103
, to accomplish the purposes of this 
chapter, a county may enact all ordinances, resolutions, and rules and may enter into 
other forms of land use controls and development agreements that the county 
considers necessary or appropriate for the use and development of land within the 
unincorporated area of the county or a designated mountainous planning district, 
including ordinances, resolutions, rules, restrictive covenants, easements, and 
development agreements governing:
(i)
uses;
(ii)
density;
(iii)
open spaces;
(iv)
structures;
(v)
buildings;
(vi)
energy-efficiency;
(vii)
light and air;
(viii)
air quality;
(ix)
transportation and public or alternative transportation;
(x)
infrastructure;
(xi)
street and building orientation and width requirements;
(xii)
public facilities;
(xiii)
fundamental fairness in land use regulation; and
(xiv)
considerations of surrounding land uses to balance the foregoing purposes with 
a landowner's private property interests and associated statutory and constitutional 
protections.
(2)
Each county shall comply with the mandatory provisions of this part before any 
agreement or contract to provide goods, services, or municipal-type services to any 
storage facility or transfer facility for high-level nuclear waste, or greater than class C 
radioactive waste, may be executed or implemented.
(3)
(a)
Any ordinance, resolution, or rule enacted by a county pursuant to its authority 
under this chapter shall comply with the state's exclusive jurisdiction to regulate oil 
and gas activity, as described in Section 
40-6-2.5
.
(b)
A county may enact an ordinance, resolution, or rule that regulates surface activity 
incident to an oil and gas activity if the county demonstrates that the regulation:
(i)
is necessary for the purposes of this chapter;
(ii)
does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
(iii)
does not interfere with the state's exclusive jurisdiction to regulate oil and gas 
activity, as described in Section 
40-6-2.5
.
(4)
(a)
This Subsection 
(4)
 applies to development agreements entered into on or after 
May 5, 2021.
(b)
A provision in a county development agreement is unenforceable if the provision 
requires an individual or an entity, as a condition for issuing building permits or 
otherwise regulating development activities within an unincorporated area of the 
county, to initiate a process for a municipality to annex the unincorporated area in 
accordance with 
Title 10, Chapter 2, Part 4, Annexation
.
(c)
Subsection 
(4)(b)
 does not affect or impair the enforceability of any other provision 
in the development agreement.
Section 9, Section 
17-27a-403
 is amended to read:
17-27a-403
. General plan preparation.
(1)
(a)
The planning commission shall provide notice, as provided in Section 
17-27a-203
, 
of the planning commission's intent to make a recommendation to the county 
legislative body for a general plan or a comprehensive general plan amendment when 
the planning commission initiates the process of preparing the planning commission's 
recommendation.
(b)
The planning commission shall make and recommend to the legislative body a 
proposed general plan for:
(i)
the unincorporated area within the county; or
(ii)
if the planning commission is a planning commission for a mountainous planning 
district, the mountainous planning district.
(c)
(i)
The plan may include planning for incorporated areas if, in the planning 
commission's judgment, they are related to the planning of the unincorporated 
territory or of the county as a whole.
(ii)
Elements of the county plan that address incorporated areas are not an official 
plan or part of a municipal plan for any municipality, unless the county plan is 
recommended by the municipal planning commission and adopted by the 
governing body of the municipality.
(2)
(a)
At a minimum, the proposed general plan, with the accompanying maps, charts, 
and descriptive and explanatory matter, shall include the planning commission's 
recommendations for the following plan elements:
(i)
a land use element that:
(A)
designates the long-term goals and the proposed extent, general distribution, 
and location of land for housing for residents of various income levels, 
business, industry, agriculture, recreation, education, public buildings and 
grounds, open space, and other categories of public and private uses of land as 
appropriate;
(B)
includes a statement of the projections for and standards of population density 
and building intensity recommended for the various land use categories 
covered by the plan;
(C)
is coordinated to integrate the land use element with the water use and 
preservation element; and
(D)
accounts for the effect of land use categories and land uses on water demand;
(ii)
a transportation and traffic circulation element that:
(A)
provides the general location and extent of existing and proposed freeways, 
arterial and collector streets, public transit, active transportation facilities, and 
other modes of transportation that the planning commission considers 
appropriate;
(B)
addresses the county's plan for residential and commercial development 
around major transit investment corridors to maintain and improve the 
connections between housing, employment, education, recreation, and 
commerce; and
(C)
correlates with the population projections, the employment projections, and 
the proposed land use element of the general plan;
(iii)
for a specified county as defined in Section 
17-27a-408
, a moderate income 
housing element that:
(A)
provides a realistic opportunity to meet the need for additional moderate 
income housing within the next five years;
(B)
selects three or more moderate income housing strategies described in 
Subsection 
(2)(b)(ii)
Subsections (2)(b)(ii)(A) through (V), or one moderate 
income housing strategy described in Subsections (2)(b)(ii)(W) through (BB),
for implementation; and
(C)
includes an implementation plan as provided in Subsection 
(2)(e)
(2)(g)
;
(iv)
a resource management plan detailing the findings, objectives, and policies 
required by Subsection 
17-27a-401
(3); and
(v)
a water use and preservation element that addresses:
(A)
the effect of permitted development or patterns of development on water 
demand and water infrastructure;
(B)
methods of reducing water demand and per capita consumption for future 
development;
(C)
methods of reducing water demand and per capita consumption for existing 
development; and
(D)
opportunities for the county to modify the county's operations to eliminate 
practices or conditions that waste water.
(b)
In drafting the moderate income housing element, the planning commission:
(i)
shall consider the Legislature's determination that counties should facilitate a 
reasonable opportunity for a variety of housing, including moderate income 
housing:
(A)
to meet the needs of people of various income levels living, working, or 
desiring to live or work in the community; and
(B)
to allow people with various incomes to benefit from and fully participate in 
all aspects of neighborhood and community life; and
(ii)
shall include an analysis of how the county will provide a realistic opportunity for 
the development of moderate income housing within the planning horizon, 
including a recommendation to implement three or more of the following 
moderate income housing strategies:
(A)
rezone for densities necessary to facilitate the production of moderate income 
housing;
(B)
demonstrate investment in the rehabilitation or expansion of infrastructure that 
facilitates the construction of moderate income housing;
(C)
demonstrate investment in the rehabilitation of existing uninhabitable housing 
stock into moderate income housing;
(D)
identify and utilize county general fund subsidies or other sources of revenue 
to waive construction related fees that are otherwise generally imposed by the 
county for the construction or rehabilitation of moderate income housing;
(E)
create or allow for, and reduce regulations related to, internal or detached 
accessory dwelling units in residential zones;
(F)
zone or rezone for higher density or moderate income residential development 
in commercial or mixed-use zones, commercial centers, or employment centers;
(G)
amend land use regulations to allow for higher density or new moderate 
income residential development in commercial or mixed-use zones near major 
transit investment corridors;
(H)
amend land use regulations to eliminate or reduce parking requirements for 
residential development where a resident is less likely to rely on the resident's 
own vehicle, such as residential development near major transit investment 
corridors or senior living facilities;
(I)
amend land use regulations to allow for single room occupancy developments;
(J)
implement zoning incentives for moderate income units in new developments;
(K)
preserve existing and new moderate income housing and subsidized units by 
utilizing a landlord incentive program, providing for deed restricted units 
through a grant program, or establishing a housing loss mitigation fund;
(L)
reduce, waive, or eliminate impact fees related to moderate income housing;
(M)
demonstrate creation of, or participation in, a community land trust program 
for moderate income housing;
(N)
implement a mortgage assistance program for employees of the county, an 
employer that provides contracted services for the county, or any other public 
employer that operates within the county;
(O)
apply for or partner with an entity that applies for state or federal funds or tax 
incentives to promote the construction of moderate income housing, an entity 
that applies for programs offered by the Utah Housing Corporation within that 
agency's funding capacity, an entity that applies for affordable housing 
programs administered by the Department of Workforce Services, an entity 
that applies for services provided by a public housing authority to preserve and 
create moderate income housing, or any other entity that applies for programs 
or services that promote the construction or preservation of moderate income 
housing;
(P)
demonstrate utilization of a moderate income housing set aside from a 
community reinvestment agency, redevelopment agency, or community 
development and renewal agency to create or subsidize moderate income 
housing;
(Q)
create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 
3, Part 6, Housing and Transit Reinvestment Zone Act;
(R)
create a home ownership promotion zone pursuant to Part 12, Home 
Ownership Promotion Zone for Counties;
(S)
(Q)
eliminate impact fees for any accessory dwelling unit that is not an 
internal accessory dwelling unit as defined in Section 
10-9a-530
;
(T)
(R)
create a program to transfer development rights for moderate income 
housing;
(U)
(S)
ratify a joint acquisition agreement with another local political 
subdivision for the purpose of combining resources to acquire property for 
moderate income housing;
(V)
(T)
develop a moderate income housing project for residents who are 
disabled or 55 years old or older;
(W)
(U)
create or allow for, and reduce regulations related to, multifamily 
residential dwellings compatible in scale and form with detached single-family 
residential dwellings and located in walkable communities within residential or 
mixed-use zones;
 and
(X)
(V)
demonstrate implementation of any other program or strategy to address 
the housing needs of residents of the county who earn less than 80% of the area 
median income, including the dedication of a local funding source to moderate 
income housing or the adoption of a land use ordinance that requires 10% or 
more of new residential development in a residential zone be dedicated to 
moderate income housing
.
;
(W)
create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 
3, Part 6, Housing and Transit Reinvestment Zone Act;
(X)
create a home ownership investment zone in accordance with Part 12, Home 
Ownership Promotion Zone for Counties;
(Y)
create a first home investment zone in accordance with Title 63N, Chapter 3, 
Part 16, First Home Investment Zone Act;
(Z)
approve a project that receives funding from, or qualifies to receive funding 
from, the Utah Homes Investment Program created in Title 51, Chapter 12, 
Utah Homes Investment Program;
(AA)
adopt or approve an affordable home ownership density bonus for 
single-family residential units, as described in Section 
17-27a-403.1
; and
(BB)
adopt or approve an affordable home ownership density bonus for 
multi-family residential units, as described in Section 
17-27a-403.2
.
(c)
If a specified county, as defined in Section 
17-27a-408
, has created a small public 
transit district, as defined in Section 
17B-2a-802
, on or before January 1, 2022, the 
specified county shall include as part of the specified county's recommended 
strategies under Subsection (2)(b)(ii) a recommendation to implement the strategy 
described in Subsection 
(2)(b)(ii)(Q)
(2)(b)(ii)(W)
.
(d)
The planning commission shall identify each moderate income housing strategy 
recommended to the legislative body for implementation by restating the exact 
language used to describe the strategy in Subsection (2)(b)(ii).
(e)
In drafting the land use element, the planning commission shall:
(i)
identify and consider each agriculture protection area within the unincorporated 
area of the county or mountainous planning district;
(ii)
avoid proposing a use of land within an agriculture protection area that is 
inconsistent with or detrimental to the use of the land for agriculture; and
(iii)
consider and coordinate with any station area plans adopted by municipalities 
located within the county under Section 
10-9a-403.1
.
(f)
In drafting the transportation and traffic circulation element, the planning 
commission shall:
(i)
(A)
consider and coordinate with the regional transportation plan developed by 
the county's region's metropolitan planning organization, if the relevant areas 
of the county are within the boundaries of a metropolitan planning 
organization; or
(B)
consider and coordinate with the long-range transportation plan developed by 
the Department of Transportation, if the relevant areas of the county are not 
within the boundaries of a metropolitan planning organization; and
(ii)
consider and coordinate with any station area plans adopted by municipalities 
located within the county under Section 
10-9a-403.1
.
(g)
(i)
In drafting the implementation plan portion of the moderate income housing 
element as described in Subsection (2)(a)(iii)(C), the planning commission shall 
recommend to the legislative body the establishment of a five-year timeline for 
implementing each of the moderate income housing strategies selected by the 
county for implementation.
(ii)
The timeline described in Subsection (2)(g)(i) shall:
(A)
identify specific measures and benchmarks for implementing each moderate 
income housing strategy selected by the county; and
(B)
provide flexibility for the county to make adjustments as needed.
(h)
In drafting the water use and preservation element, the planning commission:
(i)
shall consider applicable regional water conservation goals recommended by the 
Division of Water Resources;
(ii)
shall consult with the Division of Water Resources for information and technical 
resources regarding regional water conservation goals, including how 
implementation of the land use element and water use and preservation element 
may affect the Great Salt Lake;
(iii)
shall notify the community water systems serving drinking water within the 
unincorporated portion of the county and request feedback from the community 
water systems about how implementation of the land use element and water use 
and preservation element may affect:
(A)
water supply planning, including drinking water source and storage capacity 
consistent with Section 
19-4-114
; and
(B)
water distribution planning, including master plans, infrastructure asset 
management programs and plans, infrastructure replacement plans, and impact 
fee facilities plans;
(iv)
shall consider the potential opportunities and benefits of planning for 
regionalization of public water systems;
(v)
shall consult with the Department of Agriculture and Food for information and 
technical resources regarding the potential benefits of agriculture conservation 
easements and potential implementation of agriculture water optimization projects 
that would support regional water conservation goals;
(vi)
shall notify an irrigation or canal company located in the county so that the 
irrigation or canal company can be involved in the protection and integrity of the 
irrigation or canal company's delivery systems;
(vii)
shall include a recommendation for:
(A)
water conservation policies to be determined by the county; and
(B)
landscaping options within a public street for current and future development 
that do not require the use of lawn or turf in a parkstrip;
(viii)
shall review the county's land use ordinances and include a recommendation for 
changes to an ordinance that promotes the inefficient use of water;
(ix)
shall consider principles of sustainable landscaping, including the:
(A)
reduction or limitation of the use of lawn or turf;
(B)
promotion of site-specific landscape design that decreases stormwater runoff 
or runoff of water used for irrigation;
(C)
preservation and use of healthy trees that have a reasonable water requirement 
or are resistant to dry soil conditions;
(D)
elimination or regulation of ponds, pools, and other features that promote 
unnecessary water evaporation;
(E)
reduction of yard waste; and
(F)
use of an irrigation system, including drip irrigation, best adapted to provide 
the optimal amount of water to the plants being irrigated;
(x)
may include recommendations for additional water demand reduction strategies, 
including:
(A)
creating a water budget associated with a particular type of development;
(B)
adopting new or modified lot size, configuration, and landscaping standards 
that will reduce water demand for new single family development;
(C)
providing one or more water reduction incentives for existing landscapes and 
irrigation systems and installation of water fixtures or systems that minimize 
water demand;
(D)
discouraging incentives for economic development activities that do not 
adequately account for water use or do not include strategies for reducing 
water demand; and
(E)
adopting water concurrency standards requiring that adequate water supplies 
and facilities are or will be in place for new development; and
(xi)
shall include a recommendation for low water use landscaping standards for a 
new:
(A)
commercial, industrial, or institutional development;
(B)
common interest community, as defined in Section 
57-25-102
; or
(C)
multifamily housing project.
(3)
The proposed general plan may include:
(a)
an environmental element that addresses:
(i)
to the extent not covered by the county's resource management plan, the 
protection, conservation, development, and use of natural resources, including the 
quality of:
(A)
air;
(B)
forests;
(C)
soils;
(D)
rivers;
(E)
groundwater and other waters;
(F)
harbors;
(G)
fisheries;
(H)
wildlife;
(I)
minerals; and
(J)
other natural resources; and
(ii)
(A)
the reclamation of land, flood control, prevention and control of the 
pollution of streams and other waters;
(B)
the regulation of the use of land on hillsides, stream channels and other 
environmentally sensitive areas;
(C)
the prevention, control, and correction of the erosion of soils;
(D)
the preservation and enhancement of watersheds and wetlands; and
(E)
the mapping of known geologic hazards;
(b)
a public services and facilities element showing general plans for sewage, water, 
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for 
them, police and fire protection, and other public services;
(c)
a rehabilitation, redevelopment, and conservation element consisting of plans and 
programs for:
(i)
historic preservation;
(ii)
the diminution or elimination of a development impediment as defined in Section 
17C-1-102
; and
(iii)
redevelopment of land, including housing sites, business and industrial sites, and 
public building sites;
(d)
an economic element composed of appropriate studies and forecasts, as well as an 
economic development plan, which may include review of existing and projected 
county revenue and expenditures, revenue sources, identification of basic and 
secondary industry, primary and secondary market areas, employment, and retail 
sales activity;
(e)
recommendations for implementing all or any portion of the general plan, including 
the adoption of land and water use ordinances, capital improvement plans, 
community development and promotion, and any other appropriate action;
(f)
provisions addressing any of the matters listed in Subsection 
17-27a-401
(2) or 
(3)(a)(i); and
(g)
any other element the county considers appropriate.
Section 10, Section 
17-27a-403.1
 is enacted to read:
17-27a-403.1
. Affordable home ownership density bonus for single-family 
residential units.
(1)
As used in this section:
(a)
"Affordable housing" means the same as that term is defined in Section 
10-9a-403.2
.
(b)
"Owner-occupier" means the same as that term is defined in Section 
10-9a-403.2
.
(c)
"Qualifying affordable home ownership single-family density bonus" means:
(i)
for an area with an underlying zoning density of less than six residential units per 
acre, county approval of a density at least six residential units per acre; or
(ii)
for an area with an underlying zoning density of six residential units per acre or 
more, county approval of a density at least 0.5 residential units per acre greater 
than the underlying zoning density for the area.
(2)
If a county approves a qualifying affordable home ownership single-family density 
bonus, either through a zoning ordinance or a development agreement, the county may 
adopt requirements for the qualifying affordable home ownership single-family density 
bonus area to ensure:
(a)
at least 60% of the total single-family residential units be deed-restricted to 
owner-occupancy for at least five years;
(b)
at least 25% of the total single-family residential units qualify as affordable housing;
(c)
at least 25% of the single-family residential units per acre to be no larger than 1,600 
square feet; or
(d)
the applicant creates a preferential qualifying buyer program in which a 
single-family residential unit is initially offered for sale, for up to 30 days, to a 
category of preferred qualifying buyers established by the county, in accordance with 
provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
(3)
A county may offer additional incentives in a qualifying affordable home ownership 
single-family density bonus area approved for single-family residential units to promote 
owner-occupied, affordable housing.
Section 11, Section 
17-27a-403.2
 is enacted to read:
17-27a-403.2
. Affordable home ownership density bonus for multi-family 
residential units.
(1)
As used in this section:
(a)
"Affordable housing" means the same as that term is defined in Section 
10-9a-403.2
.
(b)
"Owner-occupier" means the same as that term is defined in Section 
10-9a-403.2
.
(c)
"Qualifying affordable home ownership multi-family density bonus" means county 
approval of a density of at least 20 residential units per acre.
(2)
If a county approves a qualifying affordable home ownership multi-family density 
bonus, either through a zoning ordinance or a development agreement, the county may 
adopt requirements for the qualifying affordable home ownership multi-family density 
bonus area to ensure:
(a)
at least 20% more residential units per acre than are otherwise allowed in the area; 
(b)
at least 60% of the total units in the multi-family residential building be 
deed-restricted to owner-occupancy for at least five years;
(c)
at least 25% of the total units in the multi-family residential building qualify as 
affordable housing;
(d)
at least 25% of the total units in a multi-family residential building to be no larger 
than 1,600 square feet; or
(e)
the applicant creates a preferential qualifying buyer program in which a unit in a 
multi-family residential building is initially offered for sale, for up to 30 days, to a 
category of preferred qualifying buyers established by the county, in accordance with 
provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
(3)
A county may offer additional incentives in a qualifying affordable home ownership 
multi-family density bonus area for multi-family residential units to promote 
owner-occupied, affordable housing.
Section 12, Section 
17-27a-408
 is amended to read:
17-27a-408
. Moderate income housing report -- Contents -- Prioritization for 
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
(1)
As used in this section:
(a)
"Division" means the Housing and Community Development Division within the 
Department of Workforce Services.
(b)
"Implementation plan" means the implementation plan adopted as part of the 
moderate income housing element of a specified county's general plan as provided in 
Subsection 
17-27a-403
(2)(g).
(c)
"Initial report" means the one-time moderate income housing report described in 
Subsection (2).
(d)
"Moderate income housing strategy" means a strategy described in Subsection 
17-27a-403
(2)(b)(ii).
(e)
"Report" means an initial report or a subsequent report.
(f)
"Specified county" means a county of the first, second, or third class, which has a 
population of more than 5,000 in the county's unincorporated areas.
(g)
"Subsequent progress report" means the annual moderate income housing report 
described in Subsection (3).
(2)
(a)
The legislative body of a specified county shall annually submit an initial report to 
the division.
(b)
(i)
This Subsection (2)(b) applies to a county that is not a specified county as of 
January 1, 2023.
(ii)
As of January 1, if a county described in Subsection (2)(b)(i) changes from one 
class to another or grows in population to qualify as a specified county, the county 
shall submit an initial plan to the division on or before August 1 of the first 
calendar year beginning on January 1 in which the county qualifies as a specified 
county.
(c)
The initial report shall:
(i)
identify each moderate income housing strategy selected by the specified county 
for continued, ongoing, or one-time implementation, using the exact language 
used to describe the moderate income housing strategy in Subsection 
17-27a-403
(2)(b)(ii); and
(ii)
include an implementation plan.
(3)
(a)
After the division approves a specified county's initial report under this section, 
the specified county shall, as an administrative act, annually submit to the division a 
subsequent progress report on or before August 1 of each year after the year in which 
the specified county is required to submit the initial report.
(b)
The subsequent progress report shall include:
(i)
subject to Subsection (3)(c), a description of each action, whether one-time or 
ongoing, taken by the specified county during the previous 12-month period to 
implement the moderate income housing strategies identified in the initial report 
for implementation;
(ii)
a description of each land use regulation or land use decision made by the 
specified county during the previous 12-month period to implement the moderate 
income housing strategies, including an explanation of how the land use 
regulation or land use decision supports the specified county's efforts to 
implement the moderate income housing strategies;
(iii)
a description of any barriers encountered by the specified county in the previous 
12-month period in implementing the moderate income housing strategies;
(iv)
the number of residential dwelling units that have been entitled that have not 
received a building permit as of the submission date of the progress report;
(v)
shapefiles, or website links if shapefiles are not available, to current maps and 
tables related to zoning;
(vi)
information regarding the number of internal and external or detached accessory 
dwelling units located within the specified county for which the specified county:
(A)
issued a building permit to construct; or
(B)
issued a business license or comparable license or permit to rent;
(vii)
a description of how the market has responded to the selected moderate income 
housing strategies, including the number of entitled moderate income housing 
units or other relevant data; and
(viii)
any recommendations on how the state can support the specified county in 
implementing the moderate income housing strategies.
(c)
For purposes of describing actions taken by a specified county under Subsection 
(3)(b)(i), the specified county may include an ongoing action taken by the specified 
county prior to the 12-month reporting period applicable to the subsequent progress 
report if the specified county:
(i)
has already adopted an ordinance, approved a land use application, made an 
investment, or approved an agreement or financing that substantially promotes the 
implementation of a moderate income housing strategy identified in the initial 
report; and
(ii)
demonstrates in the subsequent progress report that the action taken under 
Subsection (3)(c)(i) is relevant to making meaningful progress towards the 
specified county's implementation plan.
(d)
A specified county's report shall be in a form:
(i)
approved by the division; and
(ii)
made available by the division on or before May 1 of the year in which the report 
is required.
(4)
Within 90 days after the day on which the division receives a specified county's report, 
the division shall:
(a)
post the report on the division's website;
(b)
send a copy of the report to the Department of Transportation, the Governor's Office 
of Planning and Budget, the association of governments in which the specified 
county is located, and, if the unincorporated area of the specified county is located 
within the boundaries of a metropolitan planning organization, the appropriate 
metropolitan planning organization; and
(c)
subject to Subsection (5), review the report to determine compliance with this section.
(5)
(a)
An initial report 
does not comply
complies
 with this section 
unless
if
 the report:
(i)
includes the information required under Subsection (2)(c);
(ii)
subject to Subsection (5)(c), demonstrates to the division that the specified county 
made plans to implement three or more moderate income housing strategies
described in Subsection 
17-27a-403(2)(b)
(ii)(A) though (V) or at least one 
moderate income housing strategy described in Subsections 
17-27a-403(2)(b)(ii)(W)
 through (BB)
; and
(iii)
is in a form approved by the division.
(b)
A subsequent progress report 
does not comply
complies
 with this section 
unless
if
the report:
(i)
subject to Subsection (5)(c), demonstrates to the division that the specified county 
made plans to implement
 or is implementing
 three or more moderate income 
housing strategies
 described in Subsection 
17-27a-403(2)(b)(ii)(A)
 though (V) or 
at least one moderate income housing strategy described in Subsections 
17-27a-403(2)(b)(ii)(W)
 through (BB)
;
(ii)
is in a form approved by the division; and
(iii)
provides sufficient information for the division to:
(A)
assess the specified county's progress in implementing the moderate income 
housing strategies;
(B)
monitor compliance with the specified county's implementation plan;
(C)
identify a clear correlation between the specified county's land use decisions 
and efforts to implement the moderate income housing strategies;
(D)
identify how the market has responded to the specified county's selected 
moderate income housing strategies; and
(E)
identify any barriers encountered by the specified county in implementing the 
selected moderate income housing strategies.
(c)
(i)
This Subsection (5)(c) applies to a specified county that has created a small 
public transit district, as defined in Section 
17B-2a-802
, on or before January 1, 
2022.
(ii)
In addition to the requirements of Subsections (5)(a) and (b), a 
A 
report for a 
specified county described in Subsection (5)(c)(i) 
does not comply
complies
 with 
this section 
unless
if
 the report demonstrates to the division that the specified 
county:
(A)
made plans to implement the moderate income housing strategy described in 
Subsection 
17-27a-403
(2)(b)(ii)(Q)
17-27a-403(2)(b)(ii)(W)
;
 and
(B)
made plans to implement or is implementing three or more moderate income 
housing strategies described in Subsection 
17-27a-403(2)(b)(ii)(A)
 though (V) 
or at least one moderate income housing strategy described in Subsections 
17-27a-403(2)(b)(ii)(W)
 through (BB); and
(B)
(C)
is in compliance with Subsection 
63N-3-603
(8).
(d)
If a specified county initial report or subsequent progress report demonstrates the 
county plans to implement or is implementing at least one moderate income housing 
strategy described in Subsections 
17-27a-403(2)(b)(ii)(W)
 through (BB), the division 
shall also consider the specified county compliant with the reporting requirement 
described in this section for:
(i)
the year in which the specified county submits the report; and
(ii)
two subsequent reporting years.
(6)
(a)
A specified county qualifies for priority consideration under this Subsection (6) if 
the specified county's report:
(i)
complies with this section; and
(ii)
demonstrates to the division that the specified county made plans to implement 
five or more moderate income housing strategies.
(b)
The Transportation Commission may, in accordance with Subsection 
72-1-304
(3)(c), 
give priority consideration to transportation projects located within the 
unincorporated areas of a specified county described in Subsection (6)(a) until the 
Department of Transportation receives notice from the division under Subsection 
(6)(e).
(c)
Upon determining that a specified county qualifies for priority consideration under 
this Subsection (6), the division shall send a notice of prioritization to the legislative 
body of the specified county and the Department of Transportation.
(d)
The notice described in Subsection (6)(c) shall:
(i)
name the specified county that qualifies for priority consideration;
(ii)
describe the funds or projects for which the specified county qualifies to receive 
priority consideration; and
(iii)
state the basis for the division's determination that the specified county qualifies 
for priority consideration.
(e)
The division shall notify the legislative body of a specified county and the 
Department of Transportation in writing if the division determines that the specified 
county no longer qualifies for priority consideration under this Subsection (6).
(7)
(a)
If the division, after reviewing a specified county's report, determines that the 
report does not comply with this section, the division shall send a notice of 
noncompliance to the legislative body of the specified county.
(b)
A specified county that receives a notice of noncompliance may:
(i)
cure each deficiency in the report within 90 days after the day on which the notice 
of noncompliance is sent; or
(ii)
request an appeal of the division's determination of noncompliance within 10 
days after the day on which the notice of noncompliance is sent.
(c)
The notice described in Subsection (7)(a) shall:
(i)
describe each deficiency in the report and the actions needed to cure each 
deficiency;
(ii)
state that the specified county has an opportunity to:
(A)
submit to the division a corrected report that cures each deficiency in the 
report within 90 days after the day on which the notice of noncompliance is 
sent; or
(B)
submit to the division a request for an appeal of the division's determination of 
noncompliance within 10 days after the day on which the notice of 
noncompliance is sent; and
(iii)
state that failure to take action under Subsection (7)(c)(ii) will result in the 
specified county's ineligibility for funds and fees owed under Subsection (9).
(d)
For purposes of curing the deficiencies in a report under this Subsection (7), if the 
action needed to cure the deficiency as described by the division requires the 
specified county to make a legislative change, the specified county may cure the 
deficiency by making that legislative change within the 90-day cure period.
(e)
(i)
If a specified county submits to the division a corrected report in accordance 
with Subsection (7)(b)(i), and the division determines that the corrected report 
does not comply with this section, the division shall send a second notice of 
noncompliance to the legislative body of the specified county.
(ii)
A specified county that receives a second notice of noncompliance may request 
an appeal of the division's determination of noncompliance within 10 days after 
the day on which the second notice of noncompliance is sent.
(iii)
The notice described in Subsection (7)(e)(i) shall:
(A)
state that the specified county has an opportunity to submit to the division a 
request for an appeal of the division's determination of noncompliance within 
10 days after the day on which the second notice of noncompliance is sent; and
(B)
state that failure to take action under Subsection (7)(e)(iii)(A) will result in the 
specified county's ineligibility for funds under Subsection (9).
(8)
(a)
A specified county that receives a notice of noncompliance under Subsection (7)(a) 
or (7)(e)(i) may request an appeal of the division's determination of noncompliance 
within 10 days after the day on which the notice of noncompliance is sent.
(b)
Within 90 days after the day on which the division receives a request for an appeal, 
an appeal board consisting of the following three members shall review and issue a 
written decision on the appeal:
(i)
one individual appointed by the Utah Association of Counties;
(ii)
one individual appointed by the Utah Homebuilders Association; and
(iii)
one individual appointed by the presiding member of the association of 
governments, established pursuant to an interlocal agreement under Title 11, 
Chapter 13, Interlocal Cooperation Act, of which the specified county is a member.
(c)
The written decision of the appeal board shall either uphold or reverse the division's 
determination of noncompliance.
(d)
The appeal board's written decision on the appeal is final.
(9)
(a)
A specified county is ineligible for funds and owes a fee under this Subsection (9) 
if:
(i)
the specified county fails to submit a report to the division;
(ii)
after submitting a report to the division, the division determines that the report 
does not comply with this section and the specified county fails to:
(A)
cure each deficiency in the report within 90 days after the day on which the 
notice of noncompliance is sent; or
(B)
request an appeal of the division's determination of noncompliance within 10 
days after the day on which the notice of noncompliance is sent;
(iii)
after submitting to the division a corrected report to cure the deficiencies in a 
previously submitted report, the division determines that the corrected report does 
not comply with this section and the specified county fails to request an appeal of 
the division's determination of noncompliance within 10 days after the day on 
which the second notice of noncompliance is sent; or
(iv)
after submitting a request for an appeal under Subsection (8), the appeal board 
issues a written decision upholding the division's determination of noncompliance.
(b)
The following apply to a specified county described in Subsection (9)(a) until the 
division provides notice under Subsection (9)(e):
(i)
the executive director of the Department of Transportation may not program funds 
from the Transportation Investment Fund of 2005, including the Transit 
Transportation Investment Fund, to projects located within the unincorporated 
areas of the specified county in accordance with Subsection 
72-2-124
(6);
(ii)
beginning with the report submitted in 2024, the specified county shall pay a fee 
to the Olene Walker Housing Loan Fund in the amount of $250 per day that the 
specified county:
(A)
fails to submit the report to the division in accordance with this section, 
beginning the day after the day on which the report was due; or
(B)
fails to cure the deficiencies in the report, beginning the day after the day by 
which the cure was required to occur as described in the notice of 
noncompliance under Subsection (7); and
(iii)
beginning with the report submitted in 2025, the specified county shall pay a fee 
to the Olene Walker Housing Loan Fund in the amount of $500 per day that the 
specified county, for a consecutive year:
(A)
fails to submit the report to the division in accordance with this section, 
beginning the day after the day on which the report was due; or
(B)
fails to cure the deficiencies in the report, beginning the day after the day by 
which the cure was required to occur as described in the notice of 
noncompliance under Subsection (7).
(c)
Upon determining that a specified county is ineligible for funds under this 
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the 
division shall send a notice of ineligibility to the legislative body of the specified 
county, the Department of Transportation, the State Tax Commission, and the 
Governor's Office of Planning and Budget.
(d)
The notice described in Subsection (9)(c) shall:
(i)
name the specified county that is ineligible for funds;
(ii)
describe the funds for which the specified county is ineligible to receive;
(iii)
describe the fee the specified county is required to pay under Subsection (9)(b), 
if applicable; and
(iv)
state the basis for the division's determination that the specified county is 
ineligible for funds.
(e)
The division shall notify the legislative body of a specified county and the 
Department of Transportation in writing if the division determines that the provisions 
of this Subsection (9) no longer apply to the specified county.
(f)
The division may not determine that a specified county that is required to pay a fee 
under Subsection (9)(b) is in compliance with the reporting requirements of this 
section until the specified county pays all outstanding fees required under Subsection 
(9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A, Chapter 8, 
Part 5, Olene Walker Housing Loan Fund.
(10)
In a civil action seeking enforcement or claiming a violation of this section or of 
Subsection 
17-27a-404
(5)(c), a plaintiff may not recover damages but may be awarded 
only injunctive or other equitable relief.
Section 13, Section 
17-27a-531
 is amended to read:
17-27a-531
. Moderate income housing.
(1)
A county may only require the development of a certain number of moderate income 
housing units as a condition of approval of a land use application if:
(a)
the county and the applicant enter into a written agreement regarding the number of 
moderate income housing units;
 or
(b)
the county provides incentives for an applicant who agrees to include moderate 
income housing units in a development
.
; or
(c)
the county offers or approves, and an applicant accepts, an incentive described in 
Section 
17-27a-403.1
 or 
17-27a-403.2
.
(2)
If an applicant does not agree to participate in the development of moderate income 
housing units under Subsection 
(1)(a)
 or 
(b)
, a county may not take into consideration 
the applicant's decision in the county's determination of whether to approve or deny a 
land use application.
(3)
Notwithstanding Subsections 
(1)
 and 
(2)
, a county of the third class, which has a ski 
resort located within the unincorporated area of the county, may require the 
development of a certain number of moderate income housing units as a condition of 
approval of a land use application if the requirement is in accordance with an ordinance 
enacted by the county before January 1, 2022.
Section 14, Section 
17B-1-202
 is amended to read:
17B-1-202
. Special district may be created -- Services that may be provided -- 
Limitations.
(1)
(a)
A special district may be created as provided in this part to provide within its 
boundaries service consisting of:
(i)
the operation of an airport;
(ii)
the operation of a cemetery;
(iii)
fire protection, paramedic, and emergency services, including consolidated 911 
and emergency dispatch services;
(iv)
garbage collection and disposal;
(v)
health care, including health department or hospital service;
(vi)
the operation of a library;
(vii)
abatement or control of mosquitos and other insects;
(viii)
the operation of parks or recreation facilities or services;
(ix)
the operation of a sewage system;
(x)
the operation of a propane system;
(x)
(xi)
the construction and maintenance of a right-of-way, including:
(A)
a curb;
(B)
a gutter;
(C)
a sidewalk;
(D)
a street;
(E)
a road;
(F)
a water line;
(G)
a sewage line;
(H)
a storm drain;
(I)
an electricity line;
(J)
a communications line;
(K)
a natural gas line; or
(L)
street lighting;
(xi)
(xii)
transportation, including public transit and providing streets and roads;
(xii)
(xiii)
the operation of a system, or one or more components of a system, for the 
collection, storage, retention, control, conservation, treatment, supplying, 
distribution, or reclamation of water, including storm, flood, sewage, irrigation, 
and culinary water, whether the system is operated on a wholesale or retail level 
or both;
(xiii)
(xiv)
in accordance with Subsection (1)(c), the acquisition or assessment of a 
groundwater right for the development and execution of a groundwater 
management plan in cooperation with and approved by the state engineer in 
accordance with Section 
73-5-15
;
(xiv)
(xv)
law enforcement service;
(xv)
(xvi)
subject to Subsection (1)(b), the underground installation of an electric 
utility line or the conversion to underground of an existing electric utility line;
(xvi)
(xvii)
the control or abatement of earth movement or a landslide;
(xvii)
(xviii)
the operation of animal control services and facilities; 
(xviii)
(xix)
an energy efficiency upgrade, a clean 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; or
(xix)
(xx)
the financing of infrastructure, as provided in Chapter 2a, Part 13, 
Infrastructure Financing Districts.
(b)
Each special district that provides the service of the underground installation of an 
electric utility line or the conversion to underground of an existing electric utility line 
shall, in installing or converting the line, provide advance notice to and coordinate 
with the utility that owns the line.
(c)
A groundwater management plan described in Subsection 
(1)(a)(xiii)
(1)(a)(xiv)
may include the banking of groundwater rights by a special district in a critical 
management area as defined in Section 
73-5-15
 following the adoption of a 
groundwater management plan by the state engineer under Section 
73-5-15
.
(i)
A special district may manage the groundwater rights it acquires under Subsection 
17B-1-103
(2)(a) or (b) consistent with the provisions of a groundwater 
management plan described in this Subsection (1)(c).
(ii)
A groundwater right held by a special district to satisfy the provisions of a 
groundwater management plan is not subject to the forfeiture provisions of 
Section 
73-1-4
.
(iii)
(A)
A special district may divest itself of a groundwater right subject to a 
determination that the groundwater right is not required to facilitate the 
groundwater management plan described in this Subsection (1)(c).
(B)
The groundwater right described in Subsection (1)(c)(iii)(A) is subject to 
Section 
73-1-4
 beginning on the date of divestiture.
(iv)
Upon a determination by the state engineer that an area is no longer a critical 
management area as defined in Section 
73-5-15
, a groundwater right held by the 
special district is subject to Section 
73-1-4
.
(v)
A special district created in accordance with Subsection 
(1)(a)(xiii)
(1)(a)(xiv)
 to 
develop and execute a groundwater management plan may hold or acquire a right 
to surface waters that are naturally tributary to the groundwater basin subject to 
the groundwater management plan if the surface waters are appropriated in 
accordance with Title 73, Water and Irrigation, and used in accordance with Title 
73, Chapter 3b, Groundwater Recharge and Recovery Act.
(2)
As used in this section:
(a)
"Operation" means all activities involved in providing the indicated service including 
acquisition and ownership of property reasonably necessary to provide the indicated 
service and acquisition, construction, and maintenance of facilities and equipment 
reasonably necessary to provide the indicated service.
(b)
"System" means the aggregate of interrelated components that combine together to 
provide the indicated service including, for a sewage system, collection and treatment.
(3)
(a)
A special district may not be created to provide and may not after its creation 
provide more than four of the services listed in Subsection (1).
(b)
Subsection (3)(a) may not be construed to prohibit a special district from providing 
more than four services if, before April 30, 2007, the special district was authorized 
to provide those services.
(4)
(a)
Except as provided in Subsection (4)(b), a special district may not be created to 
provide and may not after its creation provide to an area the same service that may 
already be provided to that area by another political subdivision, unless the other 
political subdivision gives its written consent.
(b)
For purposes of Subsection (4)(a), a special district does not provide the same 
service as another political subdivision if it operates a component of a system that is 
different from a component operated by another political subdivision but within the 
same:
(i)
sewage system; or
(ii)
water system.
(5)
(a)
Except for a special district in the creation of which an election is not required 
under Subsection 
17B-1-214
(3)(d), the area of a special district may include all or 
part of the unincorporated area of one or more counties and all or part of one or more 
municipalities.
(b)
The area of a special district need not be contiguous.
(6)
For a special district created before May 5, 2008, the authority to provide fire protection 
service also includes the authority to provide:
(a)
paramedic service; and
(b)
emergency service, including hazardous materials response service.
(7)
A special district created before May 11, 2010, authorized to provide the construction 
and maintenance of curb, gutter, or sidewalk may provide a service described in 
Subsection 
(1)(a)(x)
(1)(a)(xi)
 on or after May 11, 2010.
(8)
A special district created before May 10, 2011, authorized to provide culinary, 
irrigation, sewage, or storm water services may provide a service described in 
Subsection 
(1)(a)(xii)
(1)(a)(xiii)
 on or after May 10, 2011.
(9)
A special district may not be created under this chapter for two years after the date on 
which a special district is dissolved as provided in Section 
17B-1-217
 if the special 
district proposed for creation:
(a)
provides the same or a substantially similar service as the dissolved special district; 
and
(b)
is located in substantially the same area as the dissolved special district.
(10)
An infrastructure financing district may not be created unless the estimated cost of the 
public infrastructure and improvements to be constructed within the boundary of the 
proposed infrastructure financing district exceeds $1,000,000, as certified under 
Subsection 
17B-1-208
(1)(c).
(11)
(a)
Except as provided in Subsection (11)(b), the inclusion of an area within an 
infrastructure financing district does not affect whether the area may be included 
within another special district.
(b)
An infrastructure financing district may not include an area included within another 
infrastructure financing district.
Section 15, Section 
35A-8-202
 is amended to read:
35A-8-202
. Powers and duties of division.
(1)
The division shall:
(a)
assist local governments and citizens in the planning, development, and maintenance 
of necessary public infrastructure and services;
(b)
cooperate with, and provide technical assistance to, counties, cities, towns, regional 
planning commissions, area-wide clearinghouses, zoning commissions, parks or 
recreation boards, community development groups, community action agencies, and 
other agencies created for the purpose of aiding and encouraging an orderly, 
productive, and coordinated development of the state and its political subdivisions;
(c)
assist the governor in coordinating the activities of state agencies which have an 
impact on the solution of community development problems and the implementation 
of community plans;
(d)
serve as a clearinghouse for information, data, and other materials which may be 
helpful to local governments in discharging their responsibilities and provide 
information on available federal and state financial and technical assistance;
(e)
carry out continuing studies and analyses of the problems faced by communities 
within the state and develop such recommendations for administrative or legislative 
action as appear necessary;
(f)
assist in funding affordable housing;
(g)
support economic development activities through grants, loans, and direct programs 
financial assistance;
(h)
certify project funding at the local level in conformance with federal, state, and other 
requirements;
(i)
utilize the capabilities and facilities of public and private universities and colleges 
within the state in carrying out its functions; and
(j)
assist and support local governments, community action agencies, and citizens in the 
planning, development, and maintenance of home weatherization, energy efficiency, 
and antipoverty activities.
(2)
The division may:
(a)
by following the procedures and requirements of 
Title 63J, Chapter 5, Federal Funds 
Procedures Act
, seek federal grants, loans, or participation in federal programs;
(b)
if any federal program requires the expenditure of state funds as a condition to 
participation by the state in any fund, property, or service, with the governor's 
approval, expend whatever funds are necessary out of the money provided by the 
Legislature for the use of the department;
(c)
in accordance with 
Part 9, Domestic Violence Shelters
, assist in developing, 
constructing, and improving shelters for victims of domestic violence, as described in 
Section 
77-36-1
, through loans and grants to nonprofit and governmental entities;
and
(d)
assist, when requested by a county or municipality, in the development of accessible 
housing
.
; and
(e)
make rules, in accordance with Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act, regarding the form and content of a moderate income housing 
report, as described in Sections 
10-9a-408
 and 
17-27a-408
, to:
(i)
ensure consistency across reporting political subdivisions; and
(ii)
promote better potential analysis of report data.
Section 16, Section 
63J-4-402
 is enacted to read:
63J-4-402
. State housing plan.
(1)
The office shall develop a state housing plan by December 31, 2025.
(2)
(a)
The office shall partner with the Legislature, municipal and county governments, 
the home building industry and related stakeholders, and the general public in the 
development of the state housing plan described in Subsection 
(1)
.
(b)
In developing the state housing plan, the office may develop regional housing plans 
within the state housing plan.
(3)
The state housing plan shall:
(a)
prioritize collaboration over preemption and collaboration across private and public 
sectors;
(b)
promote a holistic and regional approach to housing;
(c)
enable connected communities and center-based development;
(d)
acknowledge cross-issue policy alignment;
(e)
maintain a long-range vision;
(f)
promote opportunity and inclusivity;
(g)
recognize complex market forces; and
(h)
consider rural and urban contexts.
(4)
The state housing plan shall include data and metrics:
(a)
about actual and potential housing production;
(b)
about actual and potential infrastructure capacity, maintenance, and development; and
(c)
allowing the office to measure success of the state housing plan over time.
(5)
In gathering data and developing metrics, the office may analyze moderate income 
housing reports received by the Division of Housing and Community Development and:
(a)
determine which, if any, of the moderate income housing strategies described in 
Subsections 
10-9a-403(2)(b)(iii)
 and 
17-27a-403(2)(b)(ii)
 are correlated with an 
increase in the supply of moderate income housing, either built or entitled to be built, 
in the political subdivision that implements the moderate income housing strategy; 
and
(b)
draw conclusions regarding any data trends identified by the office as meaningful or 
significant.
(6)
By no later than October 1 of each year, the office shall provide a written report on the 
development and implementation of the state housing plan to the Political Subdivisions 
Interim Committee.
Section 17, Section 
72-1-304
 is amended to read:
72-1-304
. Written project prioritization process for new transportation capacity 
projects -- Rulemaking.
(1)
(a)
The Transportation Commission, in consultation with the department and the 
metropolitan planning organizations as defined in Section 
72-1-208.5
, shall develop a 
written prioritization process for the prioritization of:
(i)
new transportation capacity projects that are or will be part of the state highway 
system under Chapter 4, Part 1, State Highways;
(ii)
paved pedestrian or paved nonmotorized transportation projects described in 
Section 
72-2-124
;
(iii)
public transit projects that directly add capacity to the public transit systems 
within the state, not including facilities ancillary to the public transit system; and
(iv)
pedestrian or nonmotorized transportation projects that provide connection to a 
public transit system.
(b)
(i)
A local government or public transit district may nominate a project for 
prioritization in accordance with the process established by the commission in rule.
(ii)
If a local government or public transit district nominates a project for 
prioritization by the commission, the local government or public transit district 
shall provide data and evidence to show that:
(A)
the project will advance the purposes and goals described in Section 
72-1-211
;
(B)
for a public transit project, the local government or public transit district has 
an ongoing funding source for operations and maintenance of the proposed 
development; and
(C)
the local government or public transit district will provide the percentage of 
the costs for the project as required by Subsection 
72-2-124
(4)(a)(viii) or 
72-2-124
(9)(e).
(2)
The following shall be included in the written prioritization process under Subsection (1):
(a)
a description of how the strategic initiatives of the department adopted under Section 
72-1-211
 are advanced by the written prioritization process;
(b)
a definition of the type of projects to which the written prioritization process applies;
(c)
specification of a weighted criteria system that is used to rank proposed projects and 
how it will be used to determine which projects will be prioritized;
(d)
specification of the data that is necessary to apply the weighted ranking criteria; and
(e)
any other provisions the commission considers appropriate, which may include 
consideration of:
(i)
regional and statewide economic development impacts, including improved local 
access to:
(A)
employment;
(B)
educational facilities;
(C)
recreation;
(D)
commerce; and
(E)
residential areas, including moderate income housing as demonstrated in the 
local government's or public transit district's general plan pursuant to Section 
10-9a-403
 or 
17-27a-403
;
(ii)
the extent to which local land use plans relevant to a project support and 
accomplish the strategic initiatives adopted under Section 
72-1-211
; and
(iii)
any matching funds provided by a political subdivision or public transit district 
in addition to the percentage of costs required by Subsections 
72-2-124
(4)(a)(viii) 
and 
72-2-124
(9)(e).
(3)
(a)
When prioritizing a public transit project that increases capacity, the commission:
(i)
may give priority consideration to projects that are part of a transit-oriented 
development or transit-supportive development as defined in Section 
17B-2a-802
; 
and
(ii)
shall give priority consideration to projects that are within the boundaries of a 
housing and transit reinvestment zone created pursuant to Title 63N, Chapter 3, 
Part 6, Housing and Transit Reinvestment Zone Act.
(b)
When prioritizing a transportation project that increases capacity, the commission 
may give priority consideration to projects that are:
(i)
part of a transportation reinvestment zone created under Section 
11-13-227
 if:
(A)
the state is a participant in the transportation reinvestment zone; or
(B)
the commission finds that the transportation reinvestment zone provides a 
benefit to the state transportation system; or
(ii)
within the boundaries of a housing and transit reinvestment zone created pursuant 
to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(c)
If the department receives a notice of prioritization for a municipality as described in 
Subsection 
10-9a-408
(5)
10-9a-408(6)
, or a notice of prioritization for a county as 
described in Subsection 
17-27a-408
(5)
17-27a-408(6)
, the commission may give 
priority consideration to transportation projects that are within the boundaries of the 
municipality or the unincorporated areas of the county until the department receives 
notification from the Housing and Community Development Division within the 
Department of Workforce Services that the municipality or county no longer qualifies 
for prioritization under this Subsection (3)(c).
(4)
In developing the written prioritization process, the commission:
(a)
shall seek and consider public comment by holding public meetings at locations 
throughout the state; and
(b)
may not consider local matching dollars as provided under Section 
72-2-123
 unless 
the state provides an equal opportunity to raise local matching dollars for state 
highway improvements within each county.
(5)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
Transportation Commission, in consultation with the department, shall make rules 
establishing the written prioritization process under Subsection (1).
(6)
The commission shall submit the proposed rules under this section to a committee or 
task force designated by the Legislative Management Committee for review prior to 
taking final action on the proposed rules or any proposed amendment to the rules 
described in Subsection (5).
Section 18, Section 
72-2-124
 is amended to read:
72-2-124
. Transportation Investment Fund of 2005.
(1)
There is created a capital projects fund entitled the Transportation Investment Fund of 
2005.
(2)
The fund consists of money generated from the following sources:
(a)
any voluntary contributions received for the maintenance, construction, 
reconstruction, or renovation of state and federal highways;
(b)
appropriations made to the fund by the Legislature;
(c)
registration fees designated under Section 
41-1a-1201
;
(d)
the sales and use tax revenues deposited into the fund in accordance with Section 
59-12-103
; and
(e)
revenues transferred to the fund in accordance with Section 
72-2-106
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
(a)
Except as provided in Subsection (4)(b), the executive director may only use fund 
money to pay:
(i)
the costs of maintenance, construction, reconstruction, or renovation to state and 
federal highways prioritized by the Transportation Commission through the 
prioritization process for new transportation capacity projects adopted under 
Section 
72-1-304
;
(ii)
the costs of maintenance, construction, reconstruction, or renovation to the 
highway projects described in Subsections 
63B-18-401
(2), (3), and (4);
(iii)
principal, interest, and issuance costs of bonds authorized by Section 
63B-18-401
minus the costs paid from the County of the First Class Highway Projects Fund in 
accordance with Subsection 
72-2-121
(4)(e);
(iv)
for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt 
Lake County Revenue Bond Sinking Fund created by Section 
72-2-121.3
 the 
amount certified by Salt Lake County in accordance with Subsection 
72-2-121.3
(4)(c) as necessary to pay the debt service on $30,000,000 of the revenue bonds 
issued by Salt Lake County;
(v)
principal, interest, and issuance costs of bonds authorized by Section 
63B-16-101
for projects prioritized in accordance with Section 
72-2-125
;
(vi)
all highway general obligation bonds that are intended to be paid from revenues 
in the Centennial Highway Fund created by Section 
72-2-118
;
(vii)
for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First 
Class Highway Projects Fund created in Section 
72-2-121
 to be used for the 
purposes described in Section 
72-2-121
;
(viii)
if a political subdivision provides a contribution equal to or greater than 40% of 
the costs needed for construction, reconstruction, or renovation of paved 
pedestrian or paved nonmotorized transportation for projects that:
(A)
mitigate traffic congestion on the state highway system;
(B)
are part of an active transportation plan approved by the department; and
(C)
are prioritized by the commission through the prioritization process for new 
transportation capacity projects adopted under Section 
72-1-304
;
(ix)
$705,000,000 for the costs of right-of-way acquisition, construction, 
reconstruction, or renovation of or improvement to the following projects:
(A)
the connector road between Main Street and 1600 North in the city of 
Vineyard;
(B)
Geneva Road from University Parkway to 1800 South;
(C)
the SR-97 interchange at 5600 South on I-15;
(D)
subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to 
South Jordan Parkway;
(E)
widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
(F)
improvements to 1600 North in Orem from 1200 West to State Street;
(G)
widening I-15 between mileposts 6 and 8;
(H)
widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
(I)
widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 
in Spanish Fork Canyon;
(J)
I-15 northbound between mileposts 43 and 56;
(K)
a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 
43 and 45.1;
(L)
east Zion SR-9 improvements;
(M)
Toquerville Parkway;
(N)
an environmental study on Foothill Boulevard in the city of Saratoga Springs;
(O)
using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, 
for construction of an interchange on Bangerter Highway at 13400 South; and
(P)
an environmental impact study for Kimball Junction in Summit County; and
(x)
$28,000,000 as pass-through funds, to be distributed as necessary to pay project 
costs based upon a statement of cash flow that the local jurisdiction where the 
project is located provides to the department demonstrating the need for money 
for the project, for the following projects in the following amounts:
(A)
$5,000,000 for Payson Main Street repair and replacement;
(B)
$8,000,000 for a Bluffdale 14600 South railroad bypass;
(C)
$5,000,000 for improvements to 4700 South in Taylorsville; and
(D)
$10,000,000 for improvements to the west side frontage roads adjacent to U.S. 
40 between mile markers 7 and 10.
(b)
The executive director may use fund money to exchange for an equal or greater 
amount of federal transportation funds to be used as provided in Subsection (4)(a).
(c)
(i)
Construction related to the project described in Subsection (4)(a)(ix)(D) may 
not commence until a right-of-way not owned by a federal agency that is required 
for the realignment and extension of U-111, as described in the department's 2023 
environmental study related to the project, is dedicated to the department.
(ii)
Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the 
project as described in Subsection (4)(c)(i) on or before October 1, 2024, the 
department may proceed with the project, except that the project will be limited to 
two lanes on U-111 from Herriman Parkway to 11800 South.
(5)
(a)
Except as provided in Subsection (5)(b), if the department receives a notice of 
ineligibility for a municipality as described in Subsection 
10-9a-408
(7)
10-9a-408(9)
, 
the executive director may not program fund money to a project prioritized by the 
commission under Section 
72-1-304
, including fund money from the Transit 
Transportation Investment Fund, within the boundaries of the municipality until the 
department receives notification from the Housing and Community Development 
Division within the Department of Workforce Services that ineligibility under this 
Subsection (5) no longer applies to the municipality.
(b)
Within the boundaries of a municipality described in Subsection (5)(a), the executive 
director:
(i)
may program fund money in accordance with Subsection (4)(a) for a 
limited-access facility or interchange connecting limited-access facilities;
(ii)
may not program fund money for the construction, reconstruction, or renovation 
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a 
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the 
construction, reconstruction, or renovation of a station that is part of a fixed 
guideway public transportation project.
(c)
Subsections (5)(a) and (b) do not apply to a project programmed by the executive 
director before July 1, 2022, for projects prioritized by the commission under Section 
72-1-304
.
(6)
(a)
Except as provided in Subsection (6)(b), if the department receives a notice of 
ineligibility for a county as described in Subsection 
17-27a-408
(7)
17-27a-408(9)
, 
the executive director may not program fund money to a project prioritized by the 
commission under Section 
72-1-304
, including fund money from the Transit 
Transportation Investment Fund, within the boundaries of the unincorporated area of 
the county until the department receives notification from the Housing and 
Community Development Division within the Department of Workforce Services 
that ineligibility under this Subsection (6) no longer applies to the county.
(b)
Within the boundaries of the unincorporated area of a county described in Subsection 
(6)(a), the executive director:
(i)
may program fund money in accordance with Subsection (4)(a) for a 
limited-access facility to a project prioritized by the commission under Section 
72-1-304
;
(ii)
may not program fund money for the construction, reconstruction, or renovation 
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a 
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the 
construction, reconstruction, or renovation of a station that is part of a fixed 
guideway public transportation project.
(c)
Subsections (6)(a) and (b) do not apply to a project programmed by the executive 
director before July 1, 2022, for projects prioritized by the commission under Section 
72-1-304
.
(7)
(a)
Before bonds authorized by Section 
63B-18-401
 or 
63B-27-101
 may be issued in 
any fiscal year, the department and the commission shall appear before the Executive 
Appropriations Committee of the Legislature and present the amount of bond 
proceeds that the department needs to provide funding for the projects identified in 
Subsections 
63B-18-401
(2), (3), and (4) or Subsection 
63B-27-101
(2) for the current 
or next fiscal year.
(b)
The Executive Appropriations Committee of the Legislature shall review and 
comment on the amount of bond proceeds needed to fund the projects.
(8)
The Division of Finance shall, from money deposited into the fund, transfer the amount 
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by 
Section 
63B-18-401
 or 
63B-27-101
 in the current fiscal year to the appropriate debt 
service or sinking fund.
(9)
(a)
There is created in the Transportation Investment Fund of 2005 the Transit 
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
contributions deposited into the fund in accordance with Section 
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
deposits of sales and use tax increment related to a housing and transit 
reinvestment zone as described in Section 
63N-3-610
;
(iv)
transfers of local option sales and use tax revenue as described in Subsection 
59-12-2220
(11)(b) or (c);
(v)
private contributions; and
(vi)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
Subject to Subsection (9)(e), the commission may prioritize money from the fund:
(i)
for public transit capital development of new capacity projects and fixed guideway 
capital development projects to be used as prioritized by the commission through 
the prioritization process adopted under Section 
72-1-304
; 
(ii)
to the department for oversight of a fixed guideway capital development project 
for which the department has responsibility; or
(iii)
up to $500,000 per year, to be used for a public transit study.
(e)
(i)
Subject to Subsections (9)(g), (h), and (i), the commission may only prioritize 
money from the fund for a public transit capital development project or pedestrian 
or nonmotorized transportation project that provides connection to the public 
transit system if the public transit district or political subdivision provides funds of 
equal to or greater than 30% of the costs needed for the project.
(ii)
A public transit district or political subdivision may use money derived from a 
loan granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, 
to provide all or part of the 30% requirement described in Subsection (9)(e)(i) if:
(A)
the loan is approved by the commission as required in Title 72, Chapter 2, 
Part 2, State Infrastructure Bank Fund; and
(B)
the proposed capital project has been prioritized by the commission pursuant 
to Section 
72-1-303
.
(f)
Before July 1, 2022, the department and a large public transit district shall enter into 
an agreement for a large public transit district to pay the department $5,000,000 per 
year for 15 years to be used to facilitate the purchase of zero emissions or low 
emissions rail engines and trainsets for regional public transit rail systems.
(g)
For any revenue transferred into the fund pursuant to Subsection 
59-12-2220
(11)(b):
(i)
the commission may prioritize money from the fund for public transit projects, 
operations, or maintenance within the county of the first class; and
(ii)
Subsection (9)(e) does not apply.
(h)
For any revenue transferred into the fund pursuant to Subsection 
59-12-2220
(11)(c):
(i)
the commission may prioritize public transit projects, operations, or maintenance 
in the county from which the revenue was generated; and
(ii)
Subsection (9)(e) does not apply.
(i)
The requirement to provide funds equal to or greater than 30% of the costs needed for 
the project described in Subsection 
(9)(e)
 does not apply to a public transit capital 
development project or pedestrian or nonmotorized transportation project that the 
department proposes.
(j)
In accordance with Part 3, Public Transit Innovation Grants, the commission may 
prioritize money from the fund for public transit innovation grants, as defined in 
Section 
72-2-401
, for public transit capital development projects requested by a 
political subdivision within a public transit district.
(10)
(a)
There is created in the Transportation Investment Fund of 2005 the Cottonwood 
Canyons Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section 
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The Legislature may appropriate money from the fund for public transit or 
transportation projects in the Cottonwood Canyons of Salt Lake County.
(e)
The department may use up to 2% of the revenue deposited into the account under 
Subsection 
59-12-103
(7)(b) to contract with local governments as necessary for 
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
(11)
(a)
There is created in the Transportation Investment Fund of 2005 the Active 
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section 
59-12-103
;
(ii)
appropriations into the account by the Legislature; and
(iii)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The executive director may only use fund money to pay the costs needed for:
(i)
the planning, design, construction, maintenance, reconstruction, or renovation of 
paved pedestrian or paved nonmotorized trail projects that:
(A)
are prioritized by the commission through the prioritization process for new 
transportation capacity projects adopted under Section 
72-1-304
;
(B)
serve a regional purpose; and
(C)
are part of an active transportation plan approved by the department or the 
plan described in Subsection (11)(d)(ii);
(ii)
the development of a plan for a statewide network of paved pedestrian or paved 
nonmotorized trails that serve a regional purpose; and
(iii)
the administration of the fund, including staff and overhead costs.
(12)
(a)
As used in this Subsection (12), "commuter rail" means the same as that term is 
defined in Section 
63N-3-602
.
(b)
There is created in the Transit Transportation Investment Fund the Commuter Rail 
Subaccount.
(c)
The subaccount shall be funded by:
(i)
contributions deposited into the subaccount in accordance with Section 
59-12-103
;
(ii)
appropriations into the subaccount by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(d)
(i)
The subaccount shall earn interest.
(ii)
All interest earned on money in the subaccount shall be deposited into the 
subaccount.
(e)
As prioritized by the commission through the prioritization process adopted under 
Section 
72-1-304
 or as directed by the Legislature, the department may only use 
money from the subaccount for projects that improve the state's commuter rail 
infrastructure, including the building or improvement of grade-separated crossings 
between commuter rail lines and public highways.
(f)
Appropriations made in accordance with this section are nonlapsing in accordance 
with Section 
63J-1-602.1
.
Section 19. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-13-25 4:46 PM