SB 228

Enrolled Copy  S.B. 228
1Community Reinvestment Agency Amendments
                                      2026 GENERAL SESSION
                                           STATE OF UTAH
                                 Chief Sponsor: Wayne A. Harper
                                    House Sponsor: R. Neil Walter
2
3  LONG TITLE
4  General Description:
5      This bill modifies requirements for dissolving a community reinvestment agency project
6  area.
7  Highlighted Provisions:
8      This bill:
9      ▸ defines terms;
10      ▸ modifies when a community reinvestment agency project area is dissolved;
11      ▸ creates a process for extending a project area dormancy period; and
12      ▸ makes technical and conforming changes.
13  Money Appropriated in this Bill:
14      None
15  Other Special Clauses:
16      None
17  Utah Code Sections Affected:
18  AMENDS:
19      17C-1-102, as last amended by Laws of Utah 2025, First Special Session, Chapter 16
20      17C-1-702, as last amended by Laws of Utah 2024, Chapter 316
21      17C-1-803, as last amended by Laws of Utah 2019, Chapter 376
22      17C-1-805, as last amended by Laws of Utah 2019, Chapter 376
23      17C-5-306, as last amended by Laws of Utah 2021, Chapter 214
24  ENACTS:
25      17C-1-810, Utah Code Annotated 1953
26
27  Be it enacted by the Legislature of the state of Utah:
S.B. 228  Enrolled Copy
28Section 1. Section 17C-1-102 is amended to read:
2917C-1-102 . Definitions.
30      As used in this title:
31   [(1) "Active project area" means a project area that has not been dissolved in accordance
32with Section 17C-1-702.]
33   [(2)] (1) "Adjusted tax increment" means the percentage of tax increment, if less than 100%,
34that an agency is authorized to receive:
35(a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax
36increment under Subsection 17C-1-403(3);
37(b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
38increment under Section 17C-1-406;
39(c) under a project area budget approved by a taxing entity committee; or
40(d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
41tax increment.
42   [(3)] (2) "Affordable housing" means housing owned or occupied by a low or moderate
43income family, as determined by resolution of the agency.
44   [(4)] (3) "Agency" or "community reinvestment agency" means a separate body corporate
45and politic, created under Section 17C-1-201.5 or as a redevelopment agency or
46community development and renewal agency under previous law:
47(a) that is a political subdivision of the state;
48(b) that is created to undertake or promote project area development as provided in this
49title; and
50(c) whose geographic boundaries are coterminous with:
51(i) for an agency created by a county, the unincorporated area of the county; and
52(ii) for an agency created by a municipality, the boundaries of the municipality.
53   [(5)] (4) "Agency funds" means money that an agency collects or receives for agency
54operations, implementing a project area plan or an implementation plan as defined in
55Section 17C-1-1001, or other agency purposes, including:
56(a) project area funds;
57(b) income, proceeds, revenue, or property derived from or held in connection with the
58agency's undertaking and implementation of project area development or
59agency-wide project development as defined in Section 17C-1-1001;
60(c) a contribution, loan, grant, or other financial assistance from any public or private
61source;
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62      (d) project area incremental revenue as defined in Section 17C-1-1001; or
63      (e) property tax revenue as defined in Section 17C-1-1001.
64  [(6)] (5) "Annual income" means the same as that term is defined in regulations of the
65      United States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as
66      amended or as superseded by replacement regulations.
67  [(7)] (6) "Assessment roll" means the same as that term is defined in Section 59-2-102.
68  [(8)] (7) "Base taxable value" means, unless otherwise adjusted in accordance with
69      provisions of this title, a property's taxable value as shown upon the assessment roll last
70      equalized during the base year.
71  [(9)] (8) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year
72      during which the assessment roll is last equalized:
73      (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,
74before the project area plan's effective date;
75      (b) for a post-June 30, 1993, urban renewal or economic development project area plan,
76or a community reinvestment project area plan that is subject to a taxing entity
77committee:
78(i) before the date on which the taxing entity committee approves the project area
79budget; or
80(ii) if taxing entity committee approval is not required for the project area budget,
81before the date on which the community legislative body adopts the project area
82plan;
83      (c) for a project on an inactive airport site, after the later of:
84(i) the date on which the inactive airport site is sold for remediation and
85development; or
86(ii) the date on which the airport that operated on the inactive airport site ceased
87operations; or
88      (d) for a community development project area plan or a community reinvestment project
89area plan that is subject to an interlocal agreement, as described in the interlocal
90agreement.
91  [(10)] (9) "Basic levy" means the portion of a school district's tax levy constituting the
92      minimum basic levy under Section 59-2-902.
93  [(11)] (10) "Board" means the governing body of an agency, as described in Section
94      17C-1-203.
95  [(12)] (11) "Budget hearing" means the public hearing on a proposed project area budget
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96required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget,
97Subsection 17C-3-201(2)(d) for an economic development project area budget, or
98Subsection 17C-5-302(2)(e) for a community reinvestment project area budget.
99   [(13)] (12) "Closed military base" means land within a former military base that the Defense
100Base Closure and Realignment Commission has voted to close or realign when that
101action has been sustained by the president of the United States and Congress.
102   [(14)] (13) "Combined incremental value" means the combined total of all incremental
103values from all project areas, except project areas that contain some or all of a military
104installation or inactive industrial site, within the agency's boundaries under project area
105plans and project area budgets at the time that a project area budget for a new project
106area is being considered.
107   [(15)] (14) "Community" means a county or municipality.
108   [(16)] (15) "Community development project area plan" means a project area plan adopted
109under Chapter 4, Part 1, Community Development Project Area Plan.
110   [(17)] (16) "Community legislative body" means the legislative body of the community that
111created the agency.
112   [(18)] (17) "Community reinvestment project area plan" means a project area plan adopted
113under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
114   [(19)] (18) "Contest" means to file a written complaint in a court with jurisdiction under
115Title 78A, Judiciary and Judicial Administration, and in a county in which the agency is
116located if the action is filed in the district court.
117   [(20)] (19) "Development impediment" means a condition of an area that meets the
118requirements described in Section 17C-2-303 for an urban renewal project area or
119Section 17C-5-405 for a community reinvestment project area.
120   [(21)] (20) "Development impediment hearing" means a public hearing regarding whether a
121development impediment exists within a proposed:
122(a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
12317C-2-302; or
124(b) community reinvestment project area under Section 17C-5-404.
125   [(22)] (21) "Development impediment study" means a study to determine whether a
126development impediment exists within a survey area as described in Section 17C-2-301
127for an urban renewal project area or Section 17C-5-403 for a community reinvestment
128project area.
129   (22) "Dormancy period" means a period that ends six months after the project area funds
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130      collection period ends.
131  (23) "Dormancy period extension hearing" means the public hearing on a proposed
132      extension of a dormancy period required under Subsection 17C-1-702(2)(a).
133  [(23)] (24) "Economic development project area plan" means a project area plan adopted
134      under Chapter 3, Part 1, Economic Development Project Area Plan.
135  [(24)] (25) "Fair share ratio" means the ratio derived by:
136      (a) for a municipality, comparing the percentage of all housing units within the
137municipality that are publicly subsidized income targeted housing units to the
138percentage of all housing units within the county in which the municipality is located
139that are publicly subsidized income targeted housing units; or
140      (b) for the unincorporated part of a county, comparing the percentage of all housing
141units within the unincorporated county that are publicly subsidized income targeted
142housing units to the percentage of all housing units within the whole county that are
143publicly subsidized income targeted housing units.
144  [(25)] (26) "Family" means the same as that term is defined in regulations of the United
145      States Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as
146      amended or as superseded by replacement regulations.
147  [(26)] (27) "Greenfield" means land not developed beyond agricultural, range, or forestry
148      use.
149  [(27)] (28) "Hazardous waste" means any substance defined, regulated, or listed as a
150      hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant,
151      contaminant, or toxic substance, or identified as hazardous to human health or the
152      environment, under state or federal law or regulation.
153  [(28)] (29) "Housing allocation" means project area funds allocated for housing under
154      Section 17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section
155      17C-1-412.
156  [(29)] (30) "Housing fund" means a fund created by an agency for purposes described in
157      Section 17C-1-411 or 17C-1-412 that is comprised of:
158      (a) project area funds, project area incremental revenue as defined in Section 17C-1-1001,
159or property tax revenue as defined in Section 17C-1-1001 allocated for the purposes
160described in Section 17C-1-411; or
161      (b) an agency's housing allocation.
162  [(30)] (31)(a) "Inactive airport site" means land that:
163(i) consists of at least 100 acres;
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164(ii) is occupied by an airport:
165(A)(I) that is no longer in operation as an airport; or
166(II)(Aa) that is scheduled to be decommissioned; and
167(Bb) for which a replacement commercial service airport is under
168construction; and
169(B) that is owned or was formerly owned and operated by a public entity; and
170(iii) requires remediation because:
171(A) of the presence of hazardous waste or solid waste; or
172(B) the site lacks sufficient public infrastructure and facilities, including public
173roads, electric service, water system, and sewer system, needed to support
174development of the site.
175(b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
176described in [Subsection (30)(a)] Subsection (31)(a).
177   [(31)] (32)(a) "Inactive industrial site" means land that:
178(i) consists of at least 1,000 acres;
179(ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
180facility; and
181(iii) requires remediation because of the presence of hazardous waste or solid waste.
182(b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
183described in [Subsection (31)(a)] Subsection (32)(a).
184   [(32)] (33) "Income targeted housing" means housing that is:
185(a) owned and occupied by a family whose annual income is at or below 120% of the
186median annual income for a family within the county in which the housing is located;
187or
188(b) occupied by a family whose annual income is at or below 80% of the median annual
189income for a family within the county in which the housing is located.
190   [(33)] (34) "Incremental value" means a figure derived by multiplying the marginal value of
191the property located within a project area on which tax increment is collected by a
192number that represents the adjusted tax increment from that project area that is paid to
193the agency.
194   [(34)] (35) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
195established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
196   [(35)] (36)(a) " Local government building" means a building owned and operated by a
197community for the primary purpose of providing one or more primary community
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198      functions, including:
199(i) a fire station;
200(ii) a police station;
201(iii) a city hall; or
202(iv) a court or other judicial building.
203      (b) " Local government building" does not include a building the primary purpose of
204which is cultural or recreational in nature.
205  [(36)] (37) "Low-income individual" means the same as that term is defined in Section
206      35A-8-504.5.
207  [(37)] (38) "Major transit investment corridor" means the same as that term is defined in
208      Section 10-20-102.
209  [(38)] (39) "Marginal value" means the difference between actual taxable value and base
210      taxable value.
211  [(39)] (40) "Military installation project area" means a project area or a portion of a project
212      area located within a federal military installation ordered closed by the federal Defense
213      Base Realignment and Closure Commission.
214  [(40)] (41) "Municipality" means a city or town.
215  [(41)] (42) "Non-profit housing fund" means:
216      (a) an organization that meets the definition of "housing organization" in Section
21735A-8-2401;
218      (b) a registered nonprofit that assists veterans or individuals who work in public service
219to achieve homeownership in the state;
220      (c) a registered nonprofit that:
221(i) assists low-income individuals or families who would qualify for income targeted
222housing to achieve homeownership in the state; and
223(ii) provides direct support to help a low-income individual or a family eligible for
224income targeted housing to retain ownership of a home, including through
225rehabilitation services, lending for rehabilitation, or foreclosure mitigation
226counseling that results in retention of the home, refinancing, or a reverse mortgage;
227      (d) a registered nonprofit that partners with a community to promote affordable housing
228for the workforce in that community; or
229      (e) a registered nonprofit established to administer housing programs on behalf of an
230association representing 10 or more counties in the state.
231  [(42)] (43) "Participant" means one or more persons that enter into a participation agreement
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232with an agency.
233   [(43)] (44) "Participation agreement" means a written agreement between a person and an
234agency under Subsection 17C-1-202(5).
235   [(44)] (45) "Plan hearing" means the public hearing on a proposed project area plan required
236under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection
23717C-3-102(1)(d) for an economic development project area plan, Subsection
23817C-4-102(1)(d) for a community development project area plan, or Subsection
23917C-5-104(3)(e) for a community reinvestment project area plan.
240   [(45)] (46) "Post-June 30, 1993, project area plan" means a project area plan adopted on or
241after July 1, 1993, and before May 10, 2016, whether or not amended [subsequent to]
242after the project area plan's adoption.
243   [(46)] (47) "Pre-July 1, 1993, project area plan" means a project area plan adopted before
244July 1, 1993, whether or not amended [subsequent to] after the project area plan's
245adoption.
246   [(47)] (48) "Private," with respect to real property, means property not owned by a public
247entity or any other governmental entity.
248   [(48)] (49) "Project area" means the geographic area described in a project area plan within
249which the project area development described in the project area plan takes place or is
250proposed to take place.
251   [(49)] (50) "Project area budget" means a multiyear projection of annual or cumulative
252revenues and expenses and other fiscal matters pertaining to a project area prepared in
253accordance with:
254(a) for an urban renewal project area, Section 17C-2-201;
255(b) for an economic development project area, Section 17C-3-201;
256(c) for a community development project area, Section 17C-4-204; or
257(d) for a community reinvestment project area, Section 17C-5-302.
258   [(50)] (51) "Project area development" means activity within a project area that, as
259determined by the board, encourages, promotes, or provides development or
260redevelopment for the purpose of implementing a project area plan, including:
261(a) promoting, creating, or retaining public or private jobs within the state or a
262community;
263(b) providing office, manufacturing, warehousing, distribution, parking, or other
264facilities or improvements;
265(c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
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266remediating environmental issues;
267      (d) providing residential, commercial, industrial, public, or other structures or spaces,
268including recreational and other facilities incidental or appurtenant to the structures
269or spaces;
270      (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
271existing structures;
272      (f) providing open space, including streets or other public grounds or space around
273buildings;
274      (g) providing public or private buildings, infrastructure, structures, or improvements;
275      (h) relocating a business;
276      (i) improving public or private recreation areas or other public grounds;
277      (j) eliminating a development impediment or the causes of a development impediment;
278      (k) redevelopment as defined under the law in effect before May 1, 2006; or
279      (l) any activity described in this [Subsection (50)] Subsection (51) outside of a project
280area that the board determines to be a benefit to the project area.
281  [(51)] (52) "Project area funds" means tax increment or sales and use tax revenue that an
282      agency receives under a project area budget adopted by a taxing entity committee or an
283      interlocal agreement.
284  [(52)] (53) "Project area funds collection period" means the period of time that:
285      (a) begins the day on which the first payment of project area funds is distributed to an
286agency under a project area budget approved by a taxing entity committee or an
287interlocal agreement; and
288      (b) ends the day on which the last payment of project area funds is distributed to an
289agency under a project area budget approved by a taxing entity committee or an
290interlocal agreement.
291  [(53)] (54) "Project area plan" means an urban renewal project area plan, an economic
292      development project area plan, a community development project area plan, or a
293      community reinvestment project area plan that, after the project area plan's effective
294      date, guides and controls the project area development.
295  [(54)] (55)(a) "Property tax" means each levy on an ad valorem basis on tangible or
296      intangible personal or real property.
297      (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
298Tax.
299  [(55)] (56) "Public entity" means:
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300(a) the United States, including an agency of the United States;
301(b) the state, including any of the state's departments or agencies; or
302(c) a political subdivision of the state, including a county, municipality, school district,
303special district, special service district, community reinvestment agency, or interlocal
304cooperation entity.
305   [(56)] (57) "Publicly owned infrastructure and improvements" means water, sewer, storm
306drainage, electrical, natural gas, telecommunication, or other similar systems and lines,
307streets, roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation
308facilities, or other facilities, infrastructure, and improvements benefitting the public and
309to be publicly owned or publicly maintained or operated.
310   [(57)] (58) "Record property owner" or "record owner of property" means the owner of real
311property, as shown on the records of the county in which the property is located, to
312whom the property's tax notice is sent.
313   [(58)] (59) "Sales and use tax revenue" means revenue that is:
314(a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act; and
315(b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.
316   [(59)] (60) "Superfund site":
317(a) means an area included in the National Priorities List under the Comprehensive
318Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec.
3199605; and
320(b) includes an area formerly included in the National Priorities List, as described in [
321Subsection (59)(a)] Subsection (60)(a), but removed from the list following
322remediation that leaves on site the waste that caused the area to be included in the
323National Priorities List.
324   [(60)] (61) "Survey area" means a geographic area designated for study by a survey area
325resolution to determine whether:
326(a) one or more project areas within the survey area are feasible; or
327(b) a development impediment exists within the survey area.
328   [(61)] (62) "Survey area resolution" means a resolution adopted by a board that designates a
329survey area.
330   [(62)] (63) "Taxable value" means:
331(a) the taxable value of all real property a county assessor assesses in accordance with
332Title 59, Chapter 2, Part 3, County Assessment, for the current year;
333(b) the taxable value of all real and personal property the commission assesses in
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334accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current
335year; and
336      (c) the year end taxable value of all personal property a county assessor assesses in
337accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the
338prior year's tax rolls of the taxing entity.
339  [(63)] (64)(a) "Tax increment" means the difference between:
340(i) the amount of property tax revenue generated each tax year by a taxing entity from
341the area within a project area designated in the project area plan as the area from
342which tax increment is to be collected, using the current assessed value of the
343property and each taxing entity's current [certified] final tax rate as defined in
344Section [59-2-924] 17C-1-1001; and
345(ii) the amount of property tax revenue that would be generated from that same area
346using the base taxable value of the property and each taxing entity's current [
347certified] final tax rate as defined in Section [59-2-924] 17C-1-1001.
348      (b) "Tax increment" does not include taxes levied and collected under Section 59-2-1602
349on or after January 1, 1994, upon the taxable property in the project area unless:
350(i) the project area plan was adopted before May 4, 1993, whether or not the project
351area plan was subsequently amended; and
352(ii) the taxes were pledged to support bond indebtedness or other contractual
353obligations of the agency.
354  [(64)] (65) "Taxing entity" means a public entity that:
355      (a) levies a tax on property located within a project area; or
356      (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
357  [(65)] (66) "Taxing entity committee" means a committee representing the interests of
358      taxing entities, created in accordance with Section 17C-1-402.
359  [(66)] (67) "Unincorporated" means not within a municipality.
360  [(67)] (68) "Urban renewal project area plan" means a project area plan adopted under
361      Chapter 2, Part 1, Urban Renewal Project Area Plan.
362  [(68)] (69) "Veteran" means the same as that term is defined in Section 68-3-12.5.
363Section 2. Section 17C-1-702 is amended to read:
36417C-1-702 . Project area dissolution -- Dormancy period extension --
365  Unexpended funds.
366  (1) A project area is dissolved:
367      (a) except as provided in Subsection (2) or (3), on the day on which the dormancy period
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368ends; or
369(b) eight years after the day on which an agency approved the project area if the project
370area's collection period has not started.
371   (2) Before the day on which a dormancy period ends, an agency may extend the dormancy
372period once, for a period not to exceed two years, if:
373(a) the agency holds a public hearing to consider the extension, in accordance with Title
37417C, Chapter 1, Part 8, Hearing and Notice Requirements;
375(b) the agency adopts a resolution at the public hearing described in Subsection (2)(a)
376that includes:
377(i) the name of the project area;
378(ii) a project area map or boundary description;
379(iii) a description of the progress the agency has made implementing the project area
380plan;
381(iv) a description of the unique circumstances existing in the project area that require
382that the dormancy period be extended; and
383(v) the day on which the extended dormancy period will end and the project area will
384be dissolved; and
385(c) the community legislative body adopts an ordinance that includes the information
386described in Subsection (2)(b).
387   [(1)] (3) Regardless of when a project area [funds collection] dormancy period ends, [the
388project area remains in existence until] an agency may dissolve a project area early if:
389(a) the agency adopts a resolution dissolving the project area[; and] that includes:
390(i) the name of the project area; and
391(ii) a project area map or boundary description; and
392(b) the community legislative body adopts an ordinance dissolving the project area that
393includes the information described in Subsection (3)(a).
394   [(2) The ordinance described in Subsection (1)(b) shall include:]
395[(a) the name of the project area; and]
396[(b) a project area map or boundary description.]
397   [(3)] (4) Within 30 days after the day on which the community legislative body adopts an
398ordinance described in [Subsection (1)(b)] Subsection (2)(c) or (3)(b), the community
399legislative body shall:
400(a) submit a copy of the ordinance to the county recorder of the county in which the[
401dissolved] project area is located; and
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402      (b) mail or electronically submit a copy of the ordinance to the county auditor, the State
403Tax Commission, the State Board of Education, and each taxing entity that levies or
404imposes a tax on property within the[ dissolved] project area.
405  [(4)(a) As used in this Subsection (4), "dormancy period" means a period that ends the
406      later of:]
407[(i) five years after the project area funds collection period ends; and]
408[(ii) five years after the effective date of this section.]
409      [(b)]
410      (5) An agency with project area funds remaining at the end of the dormancy period shall [
411use the unexpended funds as provided in Subsection 17C-1-412(1)(b)] return a
412proportionate share of the unexpended funds to each taxing entity.
413      (6) Notwithstanding Subsections (1) and (2), a project area that allocated project area funds
414and began a dormancy period before May 6, 2026, shall:
415(a) be dissolved five years after the day on which the project area began the dormancy
416period; and
417(b) distribute any unexpended funds in accordance with Subsection (5).
418Section 3. Section 17C-1-803 is amended to read:
41917C-1-803 . Continuing a hearing.
420     Subject to Section 17C-1-804, the board may continue:
421  (1) a development impediment hearing;
422  (2) a plan hearing;
423  (3) a budget hearing; [or]
424  (4) a dormancy period extension hearing; or
425  [(4)] (5) a combined hearing under Section 17C-1-802.
426Section 4. Section 17C-1-805 is amended to read:
42717C-1-805 . Agency to provide notice of hearings.
428  (1) Each agency shall provide notice, in accordance with this part, of each:
429      (a) development impediment hearing;
430      (b) plan hearing; [or]
431      (c) budget hearing; or
432      (d) dormancy period extension hearing.
433  (2) The notice required under Subsection (1) may be combined with the notice required for
434      any of the other hearings if the hearings are combined under Section 17C-1-802.
435Section 5. Section 17C-1-810 is enacted to read:
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43617C-1-810 . Additional requirements for notice of a dormancy period extension
437   hearing.
438      Each notice under Section 17C-1-806 of a dormancy period extension hearing shall
439   include a statement that an individual who objects to the proposed dormancy period extension
440   may appear before the board at the hearing to explain why the individual believes the proposed
441   dormancy period should not be extended.
442Section 6. Section 17C-5-306 is amended to read:
44317C-5-306 . Amending a community reinvestment project area budget.
444   (1) Except as provided in Section 17C-1-1002 and before a project area funds collection
445period ends, an agency may amend a community reinvestment project area budget in
446accordance with this section.
447   (2) To amend a community reinvestment project area budget, an agency shall:
448(a) provide notice and hold a public hearing on the proposed amendment in accordance
449with Chapter 1, Part 8, Hearing and Notice Requirements;
450(b)(i) if the community reinvestment project area budget required approval from a
451taxing entity committee, obtain the taxing entity committee's approval; or
452(ii) if the community reinvestment project area budget required an interlocal
453agreement with a taxing entity, obtain approval from the taxing entity that is a
454party to the interlocal agreement; and
455(c) at the public hearing described in Subsection (2)(a) or at a subsequent board meeting,
456by resolution, adopt the community reinvestment project area budget amendment.
457   (3) If an agency proposes a community reinvestment project area budget amendment under
458which the agency is paid a greater proportion of tax increment from the community
459reinvestment project area than provided under the community reinvestment project area
460budget, the notice described in Subsection (2)(a) shall state:
461(a) the percentage of tax increment paid under the community reinvestment project area
462budget; and
463(b) the proposed percentage of tax increment paid under the community reinvestment
464project area budget amendment.
465   (4)(a) If an agency proposes a community reinvestment project area budget amendment
466that extends a project area funds collection period, before a taxing entity committee
467or taxing entity may provide the taxing entity committee's or taxing entity's approval
468described in Subsection (2)(b), the agency shall provide to the taxing entity
469committee or taxing entity:
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470(i) the reasons why the extension is required;
471(ii) a description of the project area development for which project area funds
472received by the agency under the extension will be used;
473(iii) a statement of whether the project area funds received by the agency under the
474extension will be used within an [active] approved project area or a proposed
475project area; and
476(iv) a revised community reinvestment project area budget that includes:
477(A) the annual and total amounts of project area funds that the agency receives
478under the extension; and
479(B) the number of years that are added to each project area funds collection period
480under the extension.
481      (b) With respect to an amendment described in Subsection (4)(a), a taxing entity
482committee or taxing entity may consent to:
483(i) allow an agency to use project area funds received under an extension within a
484different project area from which the project area funds are generated; or
485(ii) alter the base taxable value in connection with a community reinvestment project
486area budget extension.
487  (5) If an agency proposes a community reinvestment project area budget amendment that
488      reduces the base taxable value of the project area due to the removal of a parcel under
489      Subsection 17C-5-112(5)(b), an agency may amend a project area budget without:
490      (a) complying with Subsection (2)(a); and
491      (b) obtaining taxing entity committee or taxing entity approval described in Subsection
492(2)(b).
493  (6)(a) A person may contest an agency's adoption of a community reinvestment project
494      area budget amendment within 30 days after the day on which the agency adopts the
495      community reinvestment project area budget amendment.
496      (b) After the 30-day period described in Subsection (6)(a), a person may not contest:
497(i) the agency's adoption of the community reinvestment project area budget
498amendment;
499(ii) a payment to the agency under the community reinvestment project area budget
500amendment; or
501(iii) the agency's use of project area funds received under the community
502reinvestment project area budget amendment.
503Section 7. Effective Date.
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504   This bill takes effect on May 6, 2026.
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