HB 507

     Enrolled Copy  H.B. 507
 1  State Coordination of Regional and Local
                               Economic Development Projects Amendments
                                            2026 GENERAL SESSION
                                                  STATE OF UTAH
                                         Chief Sponsor: Calvin Roberts
                                        Senate Sponsor: Kirk A. Cullimore
 2
 3    LONG TITLE
 4    General Description:
 5        This bill addresses local and regional economic development projects and related
 6    provisions.
 7    Highlighted Provisions:
 8        This bill:
 9        ▸ defines terms and modifies definitions;
10        ▸ prohibits a political subdivision from providing an incentive to a large load data center,
11    with exceptions;
12        ▸ establishes the State Reinvestment Restricted Account (account);
13        ▸ describes the potential uses for money in the account;
14        ▸ directs the Utah Inland Port Authority to deposit certain revenues into the account;
15        ▸ modifies certain requirements for a public infrastructure district;
16        ▸ provides a process for the dissolution of a public infrastructure district;
17        ▸ requires the disclosure of the expected annual cost of a public infrastructure district's
18    certified tax rate, as shown on the last equalized assessment rolls, in the conveyance of
19    residential real property, if applicable;
20        ▸ creates the optional County Energy Excise Tax;
21        ▸ requires the State Tax Commission to deposit revenue, in certain circumstances, into the
22    account;
23        ▸ provides that certain records related to economic development projects, including
24    nondisclosure agreements, may be classified as protected records;
25        ▸ modifies the process for a person providing a record to a governmental entity to make a
26    claim of confidentiality regarding the record;
     H.B. 507  Enrolled Copy
27  ▸ modifies provisions governing the sharing of a protected record;
28  ▸ requires the risk manager to make rules to establish the limit of liability for damages from
29     the intentional disclosure of a protected record;
30  ▸ provides that a housing and transit reinvestment zone, first home investment zone,
31     convention center reinvestment zone, or home ownership promotion zone may not be
32     created after January 1, 2028;
33  ▸ provides retrospective operation for certain provisions governing a housing and transit
34     reinvestment zone, first home investment zone, and convention center reinvestment zone
35     to May 4, 2022;
36  ▸ requires the Political Subdivisions Interim Committee to create a working group and
37     describes the membership of the working group;
38  ▸ creates a process for a county or city to propose a regionally significant development zone
39     (zone) and for a committee to approve the creation of a zone;
40  ▸ authorizes a zone to capture and utilize certain forms of tax increment;
41  ▸ describes how a zone will be managed, including how a community reinvestment agency
42     (agency) will manage zone funds, prepare zone budgets, conduct zone audits, and make
43     biennial reports;
44  ▸ describes the circumstances in which an agency or a county treasurer shall transfer a
45     percentage of zone revenue into the account;
46  ▸ modifies the prohibition on local government offering a financial incentive for an energy
47     development project outside an electrical energy development zone;
48  ▸ coordinates this bill with H.B. 475, Development Planning and Coordination
49     Amendments; and
50  ▸ makes technical and conforming changes.
51     Money Appropriated in this Bill:
52  None
53     Other Special Clauses:
54  This bill provides a coordination clause.
55  This bill provides retrospective operation.
56     Utah Code Sections Affected:
57     AMENDS:
58  10-21-501 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
59  First Special Session, Chapter 15
60  11-41-102 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
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61        Session, Chapter 16
62        11-58-102 (Effective 05/06/26), as last amended by Laws of Utah 2024, Chapters 53,
63        438 and 535
64        11-58-602 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 459
65        17-80-501 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
66        First Special Session, Chapter 14
67        17B-2a-1302 (Effective 05/06/26), as enacted by Laws of Utah 2024, Chapter 388
68        17C-1-102 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
69        Session, Chapter 16
70        17C-1-409 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
71        Session, Chapter 16
72        17C-1-603 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 480
73        17D-4-201 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 347
74        17D-4-202 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 347
75        17D-4-202.1 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 29
76        17D-4-203 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 498
77        17D-4-204 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 347
78        17D-4-303 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 347
79        59-1-306 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 258
80        59-2-924 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
81        Session, Chapter 15
82        63G-2-206 (Effective 05/06/26), as last amended by Laws of Utah 2019, Chapter 334
83        63G-2-305 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
84        Session, Chapter 17
85        63G-2-309 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
86        Session, Chapter 9
87        63G-2-802 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 188
88        63G-7-605 (Effective 05/06/26), as last amended by Laws of Utah 2021, Chapter 33
89        63I-2-263 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapters 182,
90        273 and 277
91        63N-2-103 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 512
92        63N-3-602 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
93        63N-3-603 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
94        Session, Chapter 15
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 95        63N-3-604 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
 96        63N-3-604.1 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 29
 97        63N-3-605 (Effective 05/06/26) (Applies beginning 05/04/22), as last amended by Laws
 98        of Utah 2025, Chapter 29
 99        63N-3-607 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 404
100        63N-3-608 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
101        63N-3-611 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
102        63N-3-1603 (Effective 05/06/26), as enacted by Laws of Utah 2024, Chapter 537
103        63N-3-1609 (Effective 05/06/26), as enacted by Laws of Utah 2024, Chapter 537
104        79-6-1104 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 375
105     ENACTS:
106        11-41-201 (Effective 05/06/26), Utah Code Annotated 1953
107        11-41-202 (Effective 05/06/26), Utah Code Annotated 1953
108        11-58-607 (Effective 05/06/26), Utah Code Annotated 1953
109        17C-6-101 (Effective 05/06/26), Utah Code Annotated 1953
110        17C-6-102 (Effective 05/06/26), Utah Code Annotated 1953
111        17C-6-201 (Effective 05/06/26), Utah Code Annotated 1953
112        17C-6-202 (Effective 05/06/26), Utah Code Annotated 1953
113        17C-6-203 (Effective 05/06/26), Utah Code Annotated 1953
114        17C-6-301 (Effective 05/06/26), Utah Code Annotated 1953
115        17C-6-401 (Effective 05/06/26), Utah Code Annotated 1953
116        17C-6-402 (Effective 05/06/26), Utah Code Annotated 1953
117        17C-6-403 (Effective 05/06/26), Utah Code Annotated 1953
118        17C-6-404 (Effective 05/06/26), Utah Code Annotated 1953
119        17D-4-401 (Effective 05/06/26), Utah Code Annotated 1953
120        51-9-1001 (Effective 05/06/26), Utah Code Annotated 1953
121        51-9-1002 (Effective 05/06/26), Utah Code Annotated 1953
122        51-9-1003 (Effective 05/06/26), Utah Code Annotated 1953
123        57-1-49 (Effective 05/06/26), Utah Code Annotated 1953
124        59-35-101 (Effective 05/06/26), Utah Code Annotated 1953
125        59-35-201 (Effective 05/06/26), Utah Code Annotated 1953
126        59-35-202 (Effective 05/06/26), Utah Code Annotated 1953
127        59-35-301 (Effective 05/06/26), Utah Code Annotated 1953
128        63N-3a-101 (Effective 05/06/26), Utah Code Annotated 1953
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129        63N-3a-102 (Effective 05/06/26), Utah Code Annotated 1953
130        63N-3a-103 (Effective 05/06/26), Utah Code Annotated 1953
131        63N-3a-104 (Effective 05/06/26), Utah Code Annotated 1953
132        63N-3a-105 (Effective 05/06/26), Utah Code Annotated 1953
133        63N-3a-106 (Effective 05/06/26), Utah Code Annotated 1953
134        63N-3a-201 (Effective 05/06/26), Utah Code Annotated 1953
135        63N-3a-202 (Effective 05/06/26), Utah Code Annotated 1953
136        63N-3a-203 (Effective 05/06/26), Utah Code Annotated 1953
137        63N-3a-204 (Effective 05/06/26), Utah Code Annotated 1953
138        63N-3a-205 (Effective 05/06/26), Utah Code Annotated 1953
139        63N-3a-206 (Effective 05/06/26), Utah Code Annotated 1953
140        63N-3a-207 (Effective 05/06/26), Utah Code Annotated 1953
141        63N-3a-208 (Effective 05/06/26), Utah Code Annotated 1953
142        63N-3a-301 (Effective 05/06/26), Utah Code Annotated 1953
143        63N-3a-302 (Effective 05/06/26), Utah Code Annotated 1953
144        63N-3a-303 (Effective 05/06/26), Utah Code Annotated 1953
145        63N-3a-401 (Effective 05/06/26), Utah Code Annotated 1953
146        63N-3a-402 (Effective 05/06/26), Utah Code Annotated 1953
147        63N-3a-403 (Effective 05/06/26), Utah Code Annotated 1953
148        63N-3a-501 (Effective 05/06/26), Utah Code Annotated 1953
149    REPEALS:
150        11-41-101 (Effective 05/06/26), as enacted by Laws of Utah 2004, Chapter 283
151    Utah Code Sections affected by Coordination Clause:
152        63G-2-206, as last amended by Laws of Utah 2019, Chapter 334
153
154    Be it enacted by the Legislature of the state of Utah:
155  Section 1. Section 10-21-501 is amended to read:
156  10-21-501 (Effective 05/06/26). Municipal designation of a home ownership
157    promotion zone.
158    (1) Subject to the requirements of Sections 10-21-502 and 10-21-503, a municipality may
159        create a home ownership promotion zone[ ] :
160        (a) before January 1, 2028; and
161        (b) as described in this section.
162    (2) A home ownership promotion zone created under this section:
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163  (a) is an area of 10 contiguous acres or less located entirely within the boundaries of the
164  municipality, zoned for fewer than six housing units per acre before the creation of
165  the home ownership promotion zone;
166  (b) shall be re-zoned for at least six housing units per acre; and
167  (c) may not be encumbered by any residential building permits as of the day on which
168  the home ownership promotion zone is created.
169     (3)(a) The municipality shall designate the home ownership promotion zone by
170  resolution of the legislative body of the municipality, passed or adopted in a public
171  meeting of the legislative body of the municipality, following:
172  (i) the recommendation of the municipality planning commission; and
173  (ii) the notification requirements described in Section 10-21-503.
174  (b) The resolution described in Subsection (3)(a) shall describe how the home ownership
175  promotion zone created in accordance with this section meets the objectives and
176  requirements in Section 10-21-502.
177  (c) The home ownership promotion zone is created on the effective date of the resolution
178  described in Subsection (3)(a).
179     (4) If a home ownership promotion zone is created as described in this section:
180  (a) affected local taxing entities are required to participate according to the requirements
181  of the home ownership promotion zone established by the municipality; and
182  (b) each affected taxing entity is required to participate at the same rate.
183     (5) A home ownership promotion zone may be modified by the same manner it is created as
184  described in Subsection (3).
185     (6) Within 30 days after the day on which the municipality creates the home ownership
186  promotion zone as described in Subsection (3), the municipality shall:
187  (a) record with the recorder of the county in which the home ownership promotion zone
188  is located a document containing:
189  (i) a description of the land within the home ownership promotion zone; and
190  (ii) the date of creation of the home ownership promotion zone;
191  (b) transmit a copy of the description of the land within the home ownership promotion
192  zone and an accurate map or plat indicating the boundaries of the home ownership
193  promotion zone to the Utah Geospatial Resource Center created under Section
194  63A-16-505; and
195  (c) transmit a map and description of the land within the home ownership promotion
196  zone to:
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197  (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
198  part of the home ownership promotion zone is located;
199  (ii) the officer or officers performing the function of auditor or assessor for each
200  taxing entity that does not use the county assessment roll or collect the taxing
201  entity's taxes through the county;
202  (iii) the legislative body or governing board of each taxing entity impacted by the
203  home ownership promotion zone;
204  (iv) the tax commission; and
205  (v) the State Board of Education.
206    (7) A municipality may receive tax increment and use home ownership promotion zone
207        funds as described in Section 10-21-504.
208    (8) A home ownership promotion zone created before January 1, 2028, continues to exist,
209        as described in this part, and shall comply with the provisions of this part until dissolved.
210  Section 2. Section 11-41-102 is amended to read:
211  CHAPTER 41. Prohibited Local Economic Development Incentives
212  Part 1. Prohibition on Retail Facility Incentive Payments Act
213  11-41-102 (Effective 05/06/26). Definitions.
214       As used in this [chapter] part:
215    (1) "Agreement" means an oral or written agreement between a public entity and a person.
216    (2) "Business entity" means a sole proprietorship, partnership, limited partnership, limited
217        liability company, corporation, or other entity or association used to carry on a business
218        for profit.
219    (3) "Determination of violation" means a determination by the Governor's Office of
220        Economic Opportunity of substantial likelihood that a retail facility incentive payment
221        has been made in violation of Section 11-41-103, in accordance with Section 11-41-104.
222    (4) "Environmental mitigation" means an action or activity intended to remedy known
223        negative impacts to the environment.
224    (5) "Executive director" means the executive director of the Governor's Office of Economic
225        Opportunity.
226    (6) "General plan" means the same as that term is defined in Section 23A-6-101.
227    (7) "Legislative body" means the same as that term is defined in:
228        (a) Section 10-20-102; or
229        (b) Section 17-79-102.
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230     (8) "Mixed-use development" means development with mixed land uses, including housing.
231     (9) "Moderate income housing" means housing occupied or reserved for occupancy by
232  households with a gross household income equal to or less than 80% of the median gross
233  income for households of the same size in the county in which the housing is located.
234     (10) "Moderate income housing plan" means the moderate income housing plan element of
235  a general plan.
236     (11) "Office" means the Governor's Office of Economic Opportunity.
237     (12) "Political subdivision" means any county, city, town, school district, special district,
238  special service district, community reinvestment agency, or entity created by an
239  interlocal agreement adopted [underChapter] under Chapter 13, Interlocal Cooperation
240  Act.
241     (13) "Public entity" means:
242  (a) a political subdivision;
243  (b) a department, commission, board, council, agency, institution, officer, corporation,
244  fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or
245  other administrative unit of the executive branch of the state;
246  (c) an institution of higher education as defined in Section 53H-1-101;
247  (d) the Military Installation Development Authority created in Section 63H-1-201;
248  (e) the Utah Inland Port Authority created in Section 11-58-201; or
249  (f) the Point of the Mountain State Land Authority created in Section 11-59-201.
250     (14) "Public funds" means any money received by a public entity that is derived from:
251  (a) a sales and use tax authorized under Title 59, Chapter 12, Sales and Use Tax Act; or
252  (b) a property tax levy.
253     (15) "Public infrastructure" means:
254  (a) a public facility, as defined in Section 11-36a-102;
255  (b) a system improvement, as defined in Section 11-36a-102; or
256  (c) infrastructure developed with public funds included as part of an infrastructure
257  master plan related to a general plan.
258     (16) "Retail facility" means any facility operated by a business entity for the primary
259  purpose of making retail transactions.
260     (17) "Retail facility incentive payment" means a payment of public funds:
261  (a) to a person by a public entity;
262  (b) for the development, construction, renovation, or operation of a retail facility within
263  an area of the state; and
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264        (c) in the form of:
265  (i) a payment;
266  (ii) a rebate;
267  (iii) a refund;
268  (iv) a subsidy; or
269  (v) any other similar incentive, award, or offset.
270    (18) "Retail transaction" means any transaction subject to a sales and use tax under Title 59,
271        Chapter 12, Sales and Use Tax Act.
272    (19)(a) "Small business" means a business entity that:
273  (i) has fewer than 30 full-time equivalent employees; and
274  (ii) maintains the business entity's principal office in the state.
275        (b) "Small business" does not include:
276  (i) a franchisee, as defined in 16 C.F.R. Sec. 436.1;
277  (ii) a dealer, as defined in Section 41-1a-102; or
278  (iii) a subsidiary or affiliate of another business entity that is not a small business.
279  Section 3. Section 11-41-201 is enacted to read:
280  Part 2. Prohibition on Tax Increment Incentives for Large Load Data Centers Act
281  11-41-201 (Effective 05/06/26). Definitions.
282       As used in this part:
283    (1) "Incentive" means a payment of public funds, funded by tax increment or personal
284        property tax revenue:
285        (a) from a political subdivision to a person;
286        (b) for the development, construction, renovation, operating, or citing of a large load
287  customer or qualifying data center within an area of the state; and
288        (c) in the form of:
289  (i) a payment, rebate, refund, subsidy, or other similar incentive, award, or offset; or
290  (ii) a payment of public funds for the development, construction, renovation, or
291  operation of public infrastructure and improvements that wholly or primarily
292  support a large load customer.
293    (2) "Large load customer" means the same as that term is defined in Section 54-26-101.
294    (3) "Large load data center" means a large load customer that is also a qualifying data
295        center.
296    (4) "Political subdivision" means any county, municipality, special district, special service
297        district, public infrastructure district, community reinvestment agency, entity created by
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298  an interlocal agreement adopted under Chapter 13, Interlocal Cooperation Act, or
299  regional economic development authority.
300     (5)(a) "Public infrastructure and improvements" means infrastructure, improvements,
301  facilities, or buildings that:
302  (i)(A) benefit the public and are owned by a public entity or a utility; or
303  (B) benefit the public and are publicly maintained or operated by a public entity; or
304  (ii) are privately owned.
305  (b) "Public infrastructure and improvements" includes:
306  (i) facilities, lines, or systems that provide:
307  (A) water, chilled water, or steam; or
308  (B) sewer, storm drainage, natural gas, electricity, energy storage, clean energy,
309  microgrids, or telecommunications service; and
310  (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
311  facilities, rail lines, intermodal facilities, multimodal facilities, and public
312  transportation facilities.
313     (6) "Qualifying data center" means the same as that term is defined in Section 59-12-102.
314     (7) "Regional economic development authority" means the same as that term is defined in
315  Section 63N-3a-101.
316     (8) "Tax increment" means the same as that term is defined in Section 59-2-924.
317  Section 4. Section 11-41-202 is enacted to read:
318  11-41-202 (Effective 05/06/26). Political subdivisions prohibited from providing
319     incentives -- Exceptions.
320     (1) Beginning on May 6, 2027, except as provided in Subsections (2) and (3), a political
321  subdivision may not provide an incentive to a large load data center.
322     (2)(a) A municipality or county, or agency created by a municipality or county, may
323  provide an incentive to a large load data center:
324  (i) only if the large load data center is located within a regionally significant
325  development zone, as described in Title 63N, Chapter 3a, Part 4, Regionally
326  Significant Zones with Energy Implications; and
327  (ii) with regionally significant development zone funds described in Subsection
328  63N-3a-403(5).
329  (b) A regional economic development authority may provide an incentive to a large load
330  data center:
331  (i) if the large load data center is located in a project area created by the regional
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332  economic development authority;
333  (ii) if the regional economic development authority's project area overlaps with a
334  regionally significant development zone, as described in Subsection
335  63N-3a-208(7)(b); and
336  (iii) the incentive is funded by:
337  (A) regionally significant development zone funds described in Section
338  63N-3a-403 that have been shared with the regional economic development
339  authority; or
340  (B) the regional economic development authority's project area funds, subject to a
341  maximum cap of 60% of property tax increment generated within the
342  overlapping project area.
343        (c) A county that levies the county energy excise tax authorized in Section 59-35-201
344  may provide up to 80% of the revenue generated by the county energy excise tax as
345  an incentive to a large load data center.
346        (d) A municipality that levies the municipal energy tax authorized in Title 10, Chapter 1,
347  Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the
348  revenue generated by the municipal energy tax as an incentive to a large load data
349  center.
350        (e) A sales and use tax exemption described in Section 59-12-104 does not constitute an
351  incentive.
352    (3) A political subdivision that entered into an agreement to provide an incentive to a large
353        load data center, or has adopted a survey area resolution in accordance with Section
354        17C-5-103 with intent to provide an incentive to a large load data center, before May 6,
355        2027:
356        (a) may continue to provide the incentive according to the terms of the political
357  subdivision's agreement;
358        (b) may not extend the term of the agreement; and
359        (c) may not increase the value of the incentive under the agreement.
360  Section 5. Section 11-58-102 is amended to read:
361  11-58-102 (Effective 05/06/26). Definitions.
362       As used in this chapter:
363    (1) "Authority" means the Utah Inland Port Authority, created in Section 11-58-201.
364    (2) "Authority jurisdictional land" means land within the authority boundary delineated:
365        (a) in the electronic shapefile that is the electronic component of H.B. 2001, Utah Inland
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366  Port Authority Amendments, 2018 Second Special Session; and
367  (b) beginning April 1, 2020, as provided in Subsection 11-58-202(3).
368     (3) "Base taxable value" means:
369  (a)(i) except as provided in Subsection (3)(a)(ii), for a project area that consists of the
370  authority jurisdictional land, the taxable value of authority jurisdictional land in
371  calendar year 2018; and
372  (ii) for an area described in Section 11-58-600.7, the taxable value of that area in
373  calendar year 2017; or
374  (b) for a project area that consists of land outside the authority jurisdictional land, the
375  taxable value of property within any portion of a project area, as designated by board
376  resolution, from which the property tax differential will be collected, as shown upon
377  the assessment roll last equalized before the year in which the authority adopts a
378  project area plan for that area.
379     (4) "Board" means the authority's governing body, created in Section 11-58-301.
380     (5) "Business plan" means a plan designed to facilitate, encourage, and bring about
381  development of the authority jurisdictional land to achieve the goals and objectives
382  described in Subsection 11-58-203(1), including the development and establishment of
383  an inland port.
384     (6) "Contaminated land" means land:
385  (a) within a project area; and
386  (b) that contains hazardous materials, as defined in Section 19-6-302, hazardous
387  substances, as defined in Section 19-6-302, or landfill material on, in, or under the
388  land.
389     (7) "Development" means:
390  (a) the demolition, construction, reconstruction, modification, expansion, or
391  improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
392  recreational amenity, or other facility, including public infrastructure and
393  improvements; and
394  (b) the planning of, arranging for, or participation in any of the activities listed in
395  Subsection (7)(a).
396     (8) "Development project" means a project for the development of land within a project
397  area.
398     (9) "Distribution center" means a building that is:
399  (a) used for the storage, sorting, and distribution of goods intended for sale; and
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400        (b) not associated with or operated in conjunction with an adjacent manufacturing
401  facility.
402    (10) "Inland port" means one or more sites that:
403        (a) contain multimodal facilities, intermodal facilities, or other facilities that:
404  (i) are related but may be separately owned and managed; and
405  (ii) together are intended to:
406  (A) allow global trade to be processed and altered by value-added services as
407  goods move through the supply chain;
408  (B) provide a regional merging point for transportation modes for the distribution
409  of goods to and from ports and other locations in other regions;
410  (C) provide cargo-handling services to allow freight consolidation and
411  distribution, temporary storage, customs clearance, and connection between
412  transport modes; and
413  (D) provide international logistics and distribution services, including freight
414  forwarding, customs brokerage, integrated logistics, and information systems;
415  and
416        (b) may include a satellite customs clearance terminal, an intermodal facility, a customs
417  pre-clearance for international trade, or other facilities that facilitate, encourage, and
418  enhance regional, national, and international trade.
419    (11) "Inland port use" means a use of land:
420        (a) for an inland port;
421        (b) that directly implements or furthers the purposes of an inland port, as stated in
422  Subsection (10);
423        (c) that complements or supports the purposes of an inland port, as stated in Subsection
424  (10); or
425        (d) that depends upon the presence of the inland port for the viability of the use.
426    (12) "Intermodal facility" means a facility for transferring containerized cargo between rail,
427        truck, air, or other transportation modes.
428    (13) "Landfill material" means garbage, waste, debris, or other materials disposed of or
429        placed in a landfill.
430    (14) "Multimodal facility" means a hub or other facility for trade combining any
431        combination of rail, trucking, air cargo, and other transportation services.
432    (15) "Nonvoting member" means an individual appointed as a member of the board under
433        Subsection 11-58-302(3) who does not have the power to vote on matters of authority
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434  business.
435     (16) "Project area" means:
436  (a) the authority jurisdictional land, subject to Section 11-58-605; or
437  (b) land outside the authority jurisdictional land, whether consisting of a single
438  contiguous area or multiple noncontiguous areas, described in a project area plan or
439  draft project area plan, where the development project set forth in the project area
440  plan or draft project area plan takes place or is proposed to take place.
441     (17) "Project area budget" means a multiyear projection of annual or cumulative revenues
442  and expenses and other fiscal matters pertaining to the project area.
443     (18) "Project area plan" means a written plan that, after its effective date, guides and
444  controls the development within a project area.
445     (19) "Property tax" includes a privilege tax and each levy on an ad valorem basis on
446  tangible or intangible personal or real property.
447     (20) "Property tax differential":
448  (a) means the difference between:
449  (i) the amount of property tax revenues generated each tax year by all taxing entities
450  from a project area, using the current assessed value of the property; and
451  (ii) the amount of property tax revenues that would be generated from that same area
452  using the base taxable value of the property; and
453  (b) does not include property tax revenue from:
454  (i) a county additional property tax or multicounty assessing and collecting levy
455  imposed in accordance with Section 59-2-1602;
456  (ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
457  or
458  (iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
459  obligation bond.
460     (21) "Public entity" means:
461  (a) the state, including each department, division, or other agency of the state; or
462  (b) a county, city, town, school district, special district, special service district, interlocal
463  cooperation entity, community reinvestment agency, or other political subdivision of
464  the state, including the authority.
465     (22)(a) "Public infrastructure and improvements" means infrastructure, improvements,
466  facilities, or buildings that:
467  (i)(A) benefit the public and are owned by a public entity or a utility; or
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468  (B) benefit the public and are publicly maintained or operated by a public entity; or
469  (ii)(A) are privately owned;
470  (B) benefit the public;
471  (C) as determined by the board, provide a substantial benefit to the development
472  and operation of a project area; and
473  (D) are built according to applicable county or municipal design and safety
474  standards.
475        (b) "Public infrastructure and improvements" includes:
476  (i) facilities, lines, or systems that provide:
477  (A) water, chilled water, or steam; or
478  (B) sewer, storm drainage, natural gas, electricity, energy storage, clean energy,
479  microgrids, or telecommunications service;
480  (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
481  facilities, rail lines, intermodal facilities, multimodal facilities, and public
482  transportation facilities;
483  (iii) an inland port; and
484  (iv) infrastructure, improvements, facilities, or buildings that are developed as part of
485  a remediation project.
486    (23) "Reinvestment account" means the State Reinvestment Restricted Account created in
487        Section 51-9-1002.
488    (24) "Remediation" includes:
489        (a) activities for the cleanup, rehabilitation, and development of contaminated land; and
490        (b) acquiring an interest in land within a remediation project area.
491    [(24)] (25) "Remediation differential" means property tax differential generated from a
492        remediation project area.
493    [(25)] (26) "Remediation project" means a project for the remediation of contaminated land
494        that:
495        (a) is owned by:
496  (i) the state or a department, division, or other instrumentality of the state;
497  (ii) an independent entity, as defined in Section 63E-1-102; or
498  (iii) a political subdivision of the state; and
499        (b) became contaminated land before the owner described in Subsection [(24)(a)] (26)(a)
500  obtained ownership of the land.
501    [(26)] (27) "Remediation project area" means a project area consisting of contaminated land
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502  that is or is expected to become the subject of a remediation project.
503     [(27)] (28) "Shapefile" means the digital vector storage format for storing geometric
504  location and associated attribute information.
505     [(28)] (29) "Taxable value" means the value of property as shown on the last equalized
506  assessment roll.
507     [(29)] (30) "Taxing entity":
508  (a) means a public entity that levies a tax on property within a project area; and
509  (b) does not include a public infrastructure district that the authority creates under Title
510  17D, Chapter 4, Public Infrastructure District Act.
511     [(30)] (31) "Voting member" means an individual appointed or designated as a member of
512  the board under Subsection 11-58-302(2).
513  Section 6. Section 11-58-602 is amended to read:
514  11-58-602 (Effective 05/06/26). Allowable uses of property tax differential and
515     other funds.
516     (1)(a) The authority may use money from property tax differential, money the authority
517  receives from the state, money the authority receives under Subsection
518  59-12-205(2)(a)(ii)(C), and other money available to the authority:
519  (i) for any purpose authorized under this chapter;
520  (ii) for administrative, overhead, legal, consulting, and other operating expenses of
521  the authority;
522  (iii) to pay for, including financing or refinancing, all or part of the development of
523  land within or adjacent to a project area, including assisting the ongoing operation
524  of a development or facility within or adjacent to the project area;
525  (iv) to pay the cost of the installation and construction of public infrastructure and
526  improvements within the project area from which the property tax differential
527  funds were collected;
528  (v) to pay the cost of the installation of public infrastructure and improvements
529  outside a project area if the board determines by resolution that the infrastructure
530  and improvements are of benefit to the project area;
531  (vi) to pay to a community reinvestment agency for affordable housing, as provided
532  in Subsection 11-58-606(2);
533  (vii) to pay the principal and interest on bonds issued by the authority;
534  (viii) to pay the cost of acquiring land or an easement on land that is part of or
535  adjacent to authority jurisdictional land:
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536  (A) for the perpetual preservation of the land from development; and
537  (B) to provide a buffer area between authority jurisdictional land intended for
538  development and land outside the boundary of the authority jurisdictional land;
539  and
540  (ix) subject to Subsection (1)(b), to encourage, incentivize, or require development
541  that:
542  (A) mitigates noise, air pollution, light pollution, surface and groundwater
543  pollution, and other negative environmental impacts;
544  (B) mitigates traffic congestion; or
545  (C) uses high efficiency building construction and operation.
546        (b)(i)(A) The authority shall establish minimum mitigation and environmental
547  standards that a landowner is required to meet to qualify for the use of property
548  tax differential under Subsection (1)(a)(ix) in the landowner's development.
549  (B) Minimum mitigation and environmental standards established under
550  Subsection (1)(b)(i)(A) shall include a standard prohibiting the use of property
551  tax differential as a business recruitment incentive, as defined in Section
552  11-58-603, for new commercial or industrial development or an expansion of
553  existing commercial or industrial development within the authority
554  jurisdictional land if the new or expanded development will consume on an
555  annual basis more than 200,000 gallons of potable water per day.
556  (ii) In establishing minimum mitigation and environmental standards, the authority
557  shall consult with:
558  (A) the municipality in which the development is expected to occur, for
559  development expected to occur within a municipality; or
560  (B) the county in whose unincorporated area the development is expected to
561  occur, for development expected to occur within the unincorporated area of a
562  county.
563  (iii) The authority may not use property tax differential under Subsection (1)(a)(viii)
564  for a landowner's development in a project area unless the minimum mitigation
565  and environmental standards are followed with respect to that landowner's
566  development.
567    (2) The authority may use revenue generated from the operation of public infrastructure
568        operated by the authority or improvements, including an intermodal facility, operated by
569        the authority to:
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570  (a) operate and maintain the infrastructure or improvements; and
571  (b) pay for authority operating expenses, including administrative, overhead, and legal
572  expenses.
573     (3) The determination of the board under Subsection (1)(a)(v) regarding benefit to the
574  project area is final.
575     (4) [The ] Subject to Subsection (7), the authority may not use property tax differential
576  revenue collected from one project area for a development project within another project
577  area.
578     (5)(a) The authority may use up to 10% of the general differential revenue generated
579  from a project area to pay for affordable housing within or near the project area.
580  (b) In using general differential revenue described in Subsection (5)(a), the authority
581  may provide general differential revenue generated from a project area to a non-profit
582  housing fund, as defined in Section 17C-1-102:
583  (i) for that non-profit housing fund to assist low-income individuals and families who
584  would qualify for income targeted housing to achieve homeownership, or retain
585  homeownership, within a 15 mile radius of the project area that generated the
586  general differential revenue, in accordance with the mission of the non-profit
587  housing fund; and
588  (ii) pursuant to an agreement between the non-profit housing fund and the authority
589  governing appropriate uses of general differential revenue.
590     (6) The authority may share general differential funds with a taxing entity that levies a
591  property tax on land within the project area from which the general differential is
592  generated.
593     (7)(a) For a project area adopted on or after September 30, 2026, the authority shall
594  contribute at least 1% but no more than 5%, as determined by the board, of all tax
595  differential revenue generated from the project area to the reinvestment account.
596  (b) In coordination with the authority, a county or municipality that is participating in a
597  project area adopted before September 30, 2026, may designate a portion of the tax
598  differential revenue generated in the project area that would otherwise be collected
599  and used by the authority, not to exceed 5%, for contribution to the reinvestment
600  account.
601  (c) The authority shall make a contribution described in this Subsection (7) annually or
602  quarterly, as determined by the board.
603  Section 7. Section 11-58-607 is enacted to read:
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604  11-58-607 (Effective 05/06/26). Revenue sharing agreements.
605    (1)(a) Whenever a private entity's real estate development is supported by funding from
606        the authority, authority staff may negotiate and enter into a revenue sharing
607        agreement with the private entity.
608        (b) The revenue sharing agreement shall establish, at a minimum:
609  (i) a flat amount from or a percentage of the funds generated from the development
610  that the private entity agrees to provide to the authority for contribution into the
611  reinvestment account; and
612  (ii) if the authority and private entity agree on a percentage of funds:
613  (A) how often the private entity shall provide the percentage to the authority; and
614  (B) the amount of time the private entity shall provide the percentage to the
615  authority.
616    (2)(a) Following the remediation and development of land included in a remediation
617        project area, as described in Section 11-58-605, the authority shall ensure that a
618        percentage of the profits derived from private sector activities in the project area are
619        deposited into the reinvestment account on an annual basis.
620        (b) The board, in consultation with the Office of the Legislative Fiscal Analyst, shall
621  establish the percentage of profits described in Subsection (2)(a) for each remediation
622  project area, which shall be no more than 50% of annual revenues from a remediation
623  project area.
624  Section 8. Section 17-80-501 is amended to read:
625  17-80-501 (Effective 05/06/26). County designation of a home ownership
626    promotion zone.
627    (1) Subject to Sections 17-80-502 and 17-80-503, a county may create a home ownership
628        promotion zone:
629        (a) before January 1, 2028; and
630        (b) as described in this section.
631    (2) A home ownership promotion zone created under this section:
632        (a) is an area of 10 contiguous unincorporated acres or less located entirely within the
633  boundaries of the county, zoned for fewer than six housing units per acre before the
634  creation of the home ownership promotion zone;
635        (b) shall be re-zoned for at least six housing units per acre; and
636        (c) may not be encumbered by any residential building permits as of the day on which
637  the home ownership promotion zone is created.
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638     (3)(a) The county shall designate the home ownership promotion zone by resolution of
639  the legislative body of the county following:
640  (i) the recommendation of the county planning commission; and
641  (ii) the notification requirements described in Section 17-80-503.
642  (b) The resolution described in Subsection (3)(a) shall describe how the home ownership
643  promotion zone created in accordance with this section meets the objectives and
644  requirements of Section 17-80-502.
645  (c) The home ownership promotion zone is created on the effective date of the resolution
646  described in Subsection (3)(a).
647     (4) If a home ownership promotion zone is created as described in this section:
648  (a) affected local taxing entities are required to participate according to the requirements
649  of the home ownership promotion zone established by the county; and
650  (b) each affected taxing entity is required to participate at the same rate.
651     (5) A home ownership promotion zone may be modified by the same manner it is created as
652  described in Subsection (3).
653     (6) Within 30 days after the day on which the county creates the home ownership
654  promotion zone as described in Subsection (3), the county shall:
655  (a) record with the recorder a document containing:
656  (i) a description of the land within the home ownership promotion zone; and
657  (ii) the date of creation of the home ownership promotion zone;
658  (b) transmit a copy of the description of the land within the home ownership promotion
659  zone and an accurate map or plat indicating the boundaries of the home ownership
660  promotion zone to the Utah Geospatial Resource Center created under Section
661  63A-16-505; and
662  (c) transmit a map and description of the land within the home ownership promotion
663  zone to:
664  (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
665  part of the home ownership promotion zone is located;
666  (ii) the officer or officers performing the function of auditor or assessor for each
667  taxing entity that does not use the county assessment roll or collect the taxing
668  entity's taxes through the county;
669  (iii) the legislative body or governing board of each taxing entity impacted by the
670  home ownership promotion zone;
671  (iv) the tax commission; and
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672  (v) the State Board of Education.
673    (7) A county may receive tax increment and use home ownership promotion zone funds as
674        described in Section 17-80-504.
675    (8) A home ownership promotion zone created before January 1, 2028, continues to exist,
676        as described in this part, and shall comply with the provisions of this part until dissolved.
677  Section 9. Section 17B-2a-1302 is amended to read:
678  17B-2a-1302 (Effective 05/06/26). Provisions applicable to infrastructure
679    financing district -- Exceptions -- Conflicting provisions -- Contract for administrative
680    services.
681    (1) An infrastructure financing district is governed by and has the powers stated in:
682        (a) this part; and
683        (b) Chapter 1, Provisions Applicable to All Special Districts, except as provided in [
684  Subsection (1)(b)] Subsection (5).
685    (2)(a) Notwithstanding Subsection 17B-1-103(2)(f) and except as provided in
686        Subsection (2)(b), an infrastructure financing district may issue bonds only as
687        provided in Title 11, Chapter 42, Assessment Area Act, subject to Subsection [(2)(b)]
688        (2)(c), and Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act.
689        (b) If an infrastructure financing district is created to facilitate a regionally significant
690  development zone, as described in Title 17C, Chapter 6, Regionally Significant
691  Development Zone Act, the infrastructure financing district may issue negotiable
692  bonds in accordance with Title 11, Chapter 14, Local Government Bonding Act, to
693  pay all or part of the costs of acquiring, acquiring an interest in, improving, or
694  extending any of the improvements, facilities, or property allowed under Section
695  11-14-103.
696        [(b)] (c) To the extent that the provisions of Title 11, Chapter 42, Assessment Area Act,
697  apply to the use of funds from an assessment or an assessment bond for infrastructure
698  operation and maintenance costs or for the cost of conducting economic promotion
699  activities, those provisions do not apply to an infrastructure financing district.
700        [(c)] (d) Before a county or municipality's final inspection required for the issuance of a
701  certificate of occupancy for a residential unit that is subject to an assessment levied
702  by an infrastructure financing district under Title 11, Chapter 42, Assessment Area
703  Act, the infrastructure financing district shall ensure that the assessment allocable to
704  that unit is paid in full and that any assessment lien on that unit is satisfied and
705  released.
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706     (3) Notwithstanding Subsection 17B-1-103(2)(h), an infrastructure financing district may
707  not exercise the power of eminent domain.
708     (4) This part applies only to an infrastructure financing district.
709     (5) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
710  Special Districts, and a provision in this part, the provision in this part governs.
711     (6) An infrastructure financing district may contract with another governmental entity for
712  the other governmental entity to provide administrative services to the infrastructure
713  financing district.
714  Section 10. Section 17C-1-102 is amended to read:
715  17C-1-102 (Effective 05/06/26). Definitions.
716        As used in this title:
717     (1) "Active project area" means a project area that has not been dissolved in accordance
718  with Section 17C-1-702.
719     (2) "Adjusted tax increment" means the percentage of tax increment, if less than 100%, that
720  an agency is authorized to receive:
721  (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax
722  increment under Subsection 17C-1-403(3);
723  (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
724  increment under Section 17C-1-406;
725  (c) under a project area budget approved by a taxing entity committee; or
726  (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
727  tax increment.
728     (3) "Affordable housing" means housing owned or occupied by a low or moderate income
729  family, as determined by resolution of the agency.
730     (4) "Agency" or "community reinvestment agency" means a separate body corporate and
731  politic, created under Section 17C-1-201.5 or as a redevelopment agency or community
732  development and renewal agency under previous law:
733  (a) that is a political subdivision of the state;
734  (b) that is created to undertake or promote project area development as provided in this
735  title;
736  (c) that may, at the direction of the county or municipality that creates the agency, fulfill
737  the duties described in Chapter 6, Regionally Significant Development Zones Act;
738  and
739  [(c)] (d) whose geographic boundaries are coterminous with:
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740  (i) for an agency created by a county, the unincorporated area of the county; and
741  (ii) for an agency created by a municipality, the boundaries of the municipality.
742    (5) "Agency funds" means money that an agency collects or receives for agency operations,
743        implementing a project area plan or an implementation plan as defined in Section
744        17C-1-1001, or other agency purposes, including:
745        (a) project area funds;
746        (b) income, proceeds, revenue, or property derived from or held in connection with the
747  agency's undertaking and implementation of project area development or
748  agency-wide project development as defined in Section 17C-1-1001;
749        (c) a contribution, loan, grant, or other financial assistance from any public or private
750  source;
751        (d) project area incremental revenue as defined in Section 17C-1-1001; or
752        (e) property tax revenue as defined in Section 17C-1-1001.
753    (6) "Annual income" means the same as that term is defined in regulations of the United
754        States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as
755        amended or as superseded by replacement regulations.
756    (7) "Assessment roll" means the same as that term is defined in Section 59-2-102.
757    (8) "Base taxable value" means, unless otherwise adjusted in accordance with provisions of
758        this title, a property's taxable value as shown upon the assessment roll last equalized
759        during the base year.
760    (9) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year during
761        which the assessment roll is last equalized:
762        (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,
763  before the project area plan's effective date;
764        (b) for a post-June 30, 1993, urban renewal or economic development project area plan,
765  or a community reinvestment project area plan that is subject to a taxing entity
766  committee:
767  (i) before the date on which the taxing entity committee approves the project area
768  budget; or
769  (ii) if taxing entity committee approval is not required for the project area budget,
770  before the date on which the community legislative body adopts the project area
771  plan;
772        (c) for a project on an inactive airport site, after the later of:
773  (i) the date on which the inactive airport site is sold for remediation and
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774  development; or
775  (ii) the date on which the airport that operated on the inactive airport site ceased
776  operations; or
777  (d) for a community development project area plan or a community reinvestment project
778  area plan that is subject to an interlocal agreement, as described in the interlocal
779  agreement.
780     (10) "Basic levy" means the portion of a school district's tax levy constituting the minimum
781  basic levy under Section 59-2-902.
782     (11) "Board" means the governing body of an agency, as described in Section 17C-1-203.
783     (12) "Budget hearing" means the public hearing on a proposed project area budget required
784  under Subsection 17C-2-201(2)(d) for an urban renewal project area budget, Subsection
785  17C-3-201(2)(d) for an economic development project area budget, or Subsection
786  17C-5-302(2)(e) for a community reinvestment project area budget.
787     (13) "Closed military base" means land within a former military base that the Defense Base
788  Closure and Realignment Commission has voted to close or realign when that action has
789  been sustained by the president of the United States and Congress.
790     (14) "Combined incremental value" means the combined total of all incremental values
791  from all project areas, except project areas that contain some or all of a military
792  installation or inactive industrial site, within the agency's boundaries under project area
793  plans and project area budgets at the time that a project area budget for a new project
794  area is being considered.
795     (15) "Community" means a county or municipality.
796     (16) "Community development project area plan" means a project area plan adopted under
797  Chapter 4, Part 1, Community Development Project Area Plan.
798     (17) "Community legislative body" means the legislative body of the community that
799  created the agency.
800     (18) "Community reinvestment project area plan" means a project area plan adopted under
801  Chapter 5, Part 1, Community Reinvestment Project Area Plan.
802     (19) "Contest" means to file a written complaint in a court with jurisdiction under Title
803  78A, Judiciary and Judicial Administration, and in a county in which the agency is
804  located if the action is filed in the district court.
805     (20) "Development impediment" means a condition of an area that meets the requirements
806  described in Section 17C-2-303 for an urban renewal project area or Section 17C-5-405
807  for a community reinvestment project area.
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808    (21) "Development impediment hearing" means a public hearing regarding whether a
809        development impediment exists within a proposed:
810        (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
811  17C-2-302; or
812        (b) community reinvestment project area under Section 17C-5-404.
813    (22) "Development impediment study" means a study to determine whether a development
814        impediment exists within a survey area as described in Section 17C-2-301 for an urban
815        renewal project area or Section 17C-5-403 for a community reinvestment project area.
816    (23) "Economic development project area plan" means a project area plan adopted under
817        Chapter 3, Part 1, Economic Development Project Area Plan.
818    (24) "Fair share ratio" means the ratio derived by:
819        (a) for a municipality, comparing the percentage of all housing units within the
820  municipality that are publicly subsidized income targeted housing units to the
821  percentage of all housing units within the county in which the municipality is located
822  that are publicly subsidized income targeted housing units; or
823        (b) for the unincorporated part of a county, comparing the percentage of all housing
824  units within the unincorporated county that are publicly subsidized income targeted
825  housing units to the percentage of all housing units within the whole county that are
826  publicly subsidized income targeted housing units.
827    (25) "Family" means the same as that term is defined in regulations of the United States
828        Department of Housing and Urban Development, 24 C.F.R. [Section] Sec. 5.403, as
829        amended or as superseded by replacement regulations.
830    (26) "Greenfield" means land not developed beyond agricultural, range, or forestry use.
831    (27) "Hazardous waste" means any substance defined, regulated, or listed as a hazardous
832        substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant, or
833        toxic substance, or identified as hazardous to human health or the environment, under
834        state or federal law or regulation.
835    (28) "Housing allocation" means project area funds allocated for housing under Section
836        17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
837    (29) "Housing fund" means a fund created by an agency for purposes described in Section
838        17C-1-411 or 17C-1-412 that is comprised of:
839        (a) project area funds, project area incremental revenue as defined in Section 17C-1-1001,
840  or property tax revenue as defined in Section 17C-1-1001 allocated for the purposes
841  described in Section 17C-1-411; or
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842  (b) an agency's housing allocation.
843     (30)(a) "Inactive airport site" means land that:
844  (i) consists of at least 100 acres;
845  (ii) is occupied by an airport:
846  (A)(I) that is no longer in operation as an airport; or
847  (II)(Aa) that is scheduled to be decommissioned; and
848  (Bb) for which a replacement commercial service airport is under
849  construction; and
850  (B) that is owned or was formerly owned and operated by a public entity; and
851  (iii) requires remediation because:
852  (A) of the presence of hazardous waste or solid waste; or
853  (B) the site lacks sufficient public infrastructure and facilities, including public
854  roads, electric service, water system, and sewer system, needed to support
855  development of the site.
856  (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
857  described in Subsection (30)(a).
858     (31)(a) "Inactive industrial site" means land that:
859  (i) consists of at least 1,000 acres;
860  (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
861  facility; and
862  (iii) requires remediation because of the presence of hazardous waste or solid waste.
863  (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
864  described in Subsection (31)(a).
865     (32) "Income targeted housing" means housing that is:
866  (a) owned and occupied by a family whose annual income is at or below 120% of the
867  median annual income for a family within the county in which the housing is located;
868  or
869  (b) occupied by a family whose annual income is at or below 80% of the median annual
870  income for a family within the county in which the housing is located.
871     (33) "Incremental value" means a figure derived by multiplying the marginal value of the
872  property located within a project area on which tax increment is collected by a number
873  that represents the adjusted tax increment from that project area that is paid to the
874  agency.
875     (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board, established
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876        under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
877    (35)(a) "[ ]Local government building" means a building owned and operated by a
878        community for the primary purpose of providing one or more primary community
879        functions, including:
880  (i) a fire station;
881  (ii) a police station;
882  (iii) a city hall; or
883  (iv) a court or other judicial building.
884        (b) "[ ]Local government building" does not include a building the primary purpose of
885  which is cultural or recreational in nature.
886    (36) "Low-income individual" means the same as that term is defined in Section
887        35A-8-504.5.
888    (37) "Major transit investment corridor" means the same as that term is defined in Section
889        10-20-102.
890    (38) "Marginal value" means the difference between actual taxable value and base taxable
891        value.
892    (39) "Military installation project area" means a project area or a portion of a project area
893        located within a federal military installation ordered closed by the federal Defense Base
894        Realignment and Closure Commission.
895    (40) "Municipality" means a city or town.
896    (41) "Non-profit housing fund" means:
897        (a) an organization that meets the definition of "housing organization" in Section
898  35A-8-2401;
899        (b) a registered nonprofit that assists veterans or individuals who work in public service
900  to achieve homeownership in the state;
901        (c) a registered nonprofit that:
902  (i) assists low-income individuals or families who would qualify for income targeted
903  housing to achieve homeownership in the state; and
904  (ii) provides direct support to help a low-income individual or a family eligible for
905  income targeted housing to retain ownership of a home, including through
906  rehabilitation services, lending for rehabilitation, or foreclosure mitigation
907  counseling that results in retention of the home, refinancing, or a reverse mortgage;
908        (d) a registered nonprofit that partners with a community to promote affordable housing
909  for the workforce in that community; or
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      H.B. 507  Enrolled Copy
910  (e) a registered nonprofit established to administer housing programs on behalf of an
911  association representing 10 or more counties in the state.
912     (42) "Participant" means one or more persons that enter into a participation agreement with
913  an agency.
914     (43) "Participation agreement" means a written agreement between a person and an agency
915  under Subsection 17C-1-202(5).
916     (44) "Plan hearing" means the public hearing on a proposed project area plan required
917  under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection
918  17C-3-102(1)(d) for an economic development project area plan, Subsection
919  17C-4-102(1)(d) for a community development project area plan, or Subsection
920  17C-5-104(3)(e) for a community reinvestment project area plan.
921     (45) "Post-June 30, 1993, project area plan" means a project area plan adopted on or after
922  July 1, 1993, and before May 10, 2016, whether or not amended subsequent to the
923  project area plan's adoption.
924     (46) "Pre-July 1, 1993, project area plan" means a project area plan adopted before July 1,
925  1993, whether or not amended subsequent to the project area plan's adoption.
926     (47) "Private," with respect to real property, means property not owned by a public entity or
927  any other governmental entity.
928     (48) "Project area" means the geographic area described in a project area plan within which
929  the project area development described in the project area plan takes place or is
930  proposed to take place.
931     (49) "Project area budget" means a multiyear projection of annual or cumulative revenues
932  and expenses and other fiscal matters pertaining to a project area prepared in accordance
933  with:
934  (a) for an urban renewal project area, Section 17C-2-201;
935  (b) for an economic development project area, Section 17C-3-201;
936  (c) for a community development project area, Section 17C-4-204; or
937  (d) for a community reinvestment project area, Section 17C-5-302.
938     (50) "Project area development" means activity within a project area that, as determined by
939  the board, encourages, promotes, or provides development or redevelopment for the
940  purpose of implementing a project area plan, including:
941  (a) promoting, creating, or retaining public or private jobs within the state or a
942  community;
943  (b) providing office, manufacturing, warehousing, distribution, parking, or other
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944  facilities or improvements;
945        (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
946  remediating environmental issues;
947        (d) providing residential, commercial, industrial, public, or other structures or spaces,
948  including recreational and other facilities incidental or appurtenant to the structures
949  or spaces;
950        (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
951  existing structures;
952        (f) providing open space, including streets or other public grounds or space around
953  buildings;
954        (g) providing public or private buildings, infrastructure, structures, or improvements;
955        (h) relocating a business;
956        (i) improving public or private recreation areas or other public grounds;
957        (j) eliminating a development impediment or the causes of a development impediment;
958        (k) redevelopment as defined under the law in effect before May 1, 2006; or
959        (l) any activity described in this Subsection (50) outside of a project area that the board
960  determines to be a benefit to the project area.
961    (51) "Project area funds" means tax increment or sales and use tax revenue that an agency
962        receives under a project area budget adopted by a taxing entity committee or an
963        interlocal agreement.
964    (52) "Project area funds collection period" means the period of time that:
965        (a) begins the day on which the first payment of project area funds is distributed to an
966  agency under a project area budget approved by a taxing entity committee or an
967  interlocal agreement; and
968        (b) ends the day on which the last payment of project area funds is distributed to an
969  agency under a project area budget approved by a taxing entity committee or an
970  interlocal agreement.
971    (53) "Project area plan" means an urban renewal project area plan, an economic
972        development project area plan, a community development project area plan, or a
973        community reinvestment project area plan that, after the project area plan's effective
974        date, guides and controls the project area development.
975    (54)(a) "Property tax" means each levy on an ad valorem basis on tangible or intangible
976        personal or real property.
977        (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
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       H.B. 507  Enrolled Copy
 978  Tax.
 979     (55) "Public entity" means:
 980  (a) the United States, including an agency of the United States;
 981  (b) the state, including any of the state's departments or agencies; or
 982  (c) a political subdivision of the state, including a county, municipality, school district,
 983  special district, special service district, community reinvestment agency, or interlocal
 984  cooperation entity.
 985     (56) "Publicly owned infrastructure and improvements" means water, sewer, storm
 986  drainage, electrical, natural gas, telecommunication, or other similar systems and lines,
 987  streets, roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation
 988  facilities, or other facilities, infrastructure, and improvements benefitting the public and
 989  to be publicly owned or publicly maintained or operated.
 990     (57) "Record property owner" or "record owner of property" means the owner of real
 991  property, as shown on the records of the county in which the property is located, to
 992  whom the property's tax notice is sent.
 993     (58) "Sales and use tax revenue" means revenue that is:
 994  (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act; and
 995  (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.
 996     (59) "Superfund site":
 997  (a) means an area included in the National Priorities List under the Comprehensive
 998  Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec.
 999  9605; and
1000  (b) includes an area formerly included in the National Priorities List, as described in
1001  Subsection (59)(a), but removed from the list following remediation that leaves on
1002  site the waste that caused the area to be included in the National Priorities List.
1003     (60) "Survey area" means a geographic area designated for study by a survey area
1004  resolution to determine whether:
1005  (a) one or more project areas within the survey area are feasible; or
1006  (b) a development impediment exists within the survey area.
1007     (61) "Survey area resolution" means a resolution adopted by a board that designates a
1008  survey area.
1009     (62) "Taxable value" means:
1010  (a) the taxable value of all real property a county assessor assesses in accordance with
1011  Title 59, Chapter 2, Part 3, County Assessment, for the current year;
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1012        (b) the taxable value of all real and personal property the commission assesses in
1013  accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current
1014  year; and
1015        (c) the year end taxable value of all personal property a county assessor assesses in
1016  accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the
1017  prior year's tax rolls of the taxing entity.
1018    (63)(a) "Tax increment" means the difference between:
1019  (i) the amount of property tax revenue generated each tax year by a taxing entity from
1020  the area within a project area designated in the project area plan as the area from
1021  which tax increment is to be collected, using the current assessed value of the
1022  property and each taxing entity's current certified tax rate as defined in Section
1023  59-2-924; and
1024  (ii) the amount of property tax revenue that would be generated from that same area
1025  using the base taxable value of the property and each taxing entity's current
1026  certified tax rate as defined in Section 59-2-924.
1027        (b) "Tax increment" does not include taxes levied and collected under Section 59-2-1602
1028  on or after January 1, 1994, upon the taxable property in the project area unless:
1029  (i) the project area plan was adopted before May 4, 1993, whether or not the project
1030  area plan was subsequently amended; and
1031  (ii) the taxes were pledged to support bond indebtedness or other contractual
1032  obligations of the agency.
1033    (64) "Taxing entity" means a public entity that:
1034        (a) levies a tax on property located within a project area; or
1035        (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
1036    (65) "Taxing entity committee" means a committee representing the interests of taxing
1037        entities, created in accordance with Section 17C-1-402.
1038    (66) "Unincorporated" means not within a municipality.
1039    (67) "Urban renewal project area plan" means a project area plan adopted under Chapter 2,
1040        Part 1, Urban Renewal Project Area Plan.
1041    (68) "Veteran" means the same as that term is defined in Section 68-3-12.5.
1042  Section 11. Section 17C-1-409 is amended to read:
1043  17C-1-409 (Effective 05/06/26). Allowable uses of agency funds.
1044    (1)(a) An agency may use agency funds:
1045  (i) for any purpose authorized under this title;
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       H.B. 507  Enrolled Copy
1046  (ii) for administrative, overhead, legal, or other operating expenses of the agency,
1047  including consultant fees and expenses under Subsection 17C-2-102(1)(b)(ii)(B)
1048  or funding for a business resource center;
1049  (iii) subject to Section 11-41-103, to pay for, including financing or refinancing, all
1050  or part of:
1051  (A) project area development in a project area, including environmental
1052  remediation activities occurring before or after adoption of the project area
1053  plan;
1054  (B) housing-related expenditures, projects, or programs as described in Section
1055  17C-1-411 or 17C-1-412;
1056  (C) an incentive or other consideration paid to a participant under a participation
1057  agreement, subject to Subsection (6);
1058  (D) subject to Subsections (1)(c) and (4), the value of the land for and the cost of
1059  the installation and construction of any publicly owned building, facility,
1060  structure, landscaping, or other improvement within the project area from
1061  which the project area funds are collected; or
1062  (E) the cost of the installation of publicly owned infrastructure and improvements
1063  outside the project area from which the project area funds are collected if the
1064  board and the community legislative body determine by resolution that the
1065  publicly owned infrastructure and improvements benefit the project area;
1066  (iv) in an urban renewal project area that includes some or all of an inactive industrial
1067  site and subject to Subsection (1)(e), to reimburse the Department of
1068  Transportation created under Section 72-1-201, or a public transit district created
1069  under Title 17B, Chapter 2a, Part 8, Public Transit District Act, for the cost of:
1070  (A) construction of a public road, bridge, or overpass;
1071  (B) relocation of a railroad track within the urban renewal project area; or
1072  (C) relocation of a railroad facility within the urban renewal project area;
1073  (v) subject to Subsection (5), to transfer funds to a community that created the
1074  agency; or
1075  (vi) subject to Subsection (1)(f), for agency-wide project development under Part 10,
1076  Agency Taxing Authority.
1077        (b) The determination of the board and the community legislative body under Subsection
1078  (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
1079        (c) An agency may not use project area funds received from a taxing entity for the
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       Enrolled Copy  H.B. 507
1080  purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal project area plan,
1081  an economic development project area plan, or a community reinvestment project
1082  area plan without the community legislative body's consent.
1083        (d)(i) Subject to Subsection (1)(d)(ii), an agency may loan project area funds from a
1084  project area fund to another project area fund if:
1085  (A) the board approves; and
1086  (B) the community legislative body approves.
1087  (ii) An agency may not loan project area funds under Subsection (1)(d)(i) unless the
1088  projections for agency funds are sufficient to repay the loan amount.
1089  (iii) A loan described in this Subsection (1)(d) is not subject to Title 10, Chapter 5,
1090  Uniform Fiscal Procedures Act for Utah Towns, Title 10, Chapter 6, Uniform
1091  Fiscal Procedures Act for Utah Cities, Title 17, Chapter 63, Fiscal Authority and
1092  Processes, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Special Districts.
1093        (e) Before an agency may pay any tax increment or sales tax revenue under Subsection
1094  (1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of
1095  the reimbursement with:
1096  (i) the Department of Transportation; or
1097  (ii) a public transit district.
1098        (f) Before an agency may use project area funds for agency-wide project development,
1099  as defined in Section 17C-1-1001, the agency shall obtain the consent of the taxing
1100  entity committee or each taxing entity party to an interlocal agreement with the
1101  agency.
1102    (2)(a) Sales and use tax revenue that an agency receives from a taxing entity is not
1103        subject to the prohibition or limitations of [Title 11, Chapter 41, Prohibition on Retail
1104        Facility Incentive Payments Act] Title 11, Chapter 41, Part 1, Prohibition on Retail
1105        Facility Incentive Payments Act.
1106        (b) An agency may use sales and use tax revenue that the agency receives under an
1107  interlocal agreement under Section 17C-4-201 or 17C-5-204 for the uses authorized
1108  in the interlocal agreement.
1109    (3)(a) An agency may contract with the community that created the agency or another
1110        public entity to use agency funds to reimburse the cost of items authorized by this
1111        title to be paid by the agency that are paid by the community or other public entity.
1112        (b) If land is acquired or the cost of an improvement is paid by another public entity and
1113  the land or improvement is leased to the community, an agency may contract with
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       H.B. 507  Enrolled Copy
1114  and make reimbursement from agency funds to the community.
1115     (4) Notwithstanding any other provision of this title, an agency may not use project area
1116  funds, project area incremental revenue as defined in Section 17C-1-1001, or property
1117  tax revenue as defined in Section 17C-1-1001, to construct a local government building
1118  unless the taxing entity committee or each taxing entity party to an interlocal agreement
1119  with the agency consents.
1120     (5) For the purpose of offsetting the community's annual local contribution to the Homeless
1121  Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in a
1122  calendar year to a community under Subsections (1)(a)(v), 17C-1-411(1)(d), and
1123  17C-1-412(1)(a)(x) may not exceed the community's annual local contribution as
1124  defined in Subsection 59-12-205(5).
1125     (6)(a) Before providing tax increment funding to a private participant pursuant to a
1126  participation agreement, an agency shall consult with the county treasurer of the
1127  county in which the agency operates to determine if:
1128  (i) the private participant is delinquent on property tax;
1129  (ii) the private participant is delinquent on privilege tax; or
1130  (iii) the private participant is subject to a political subdivision lien for past due fees or
1131  charges.
1132  (b) If the county treasurer, in consultation with the agency, determines a participant is
1133  delinquent on property tax or privilege tax or subject to a political subdivision lien,
1134  the agency shall confirm whether the participation agreement between the agency and
1135  private participant includes a provision described in Subsection 17C-1-202(5)(d).
1136  (c) If authorized by the agency pursuant to a participation agreement, the county
1137  treasurer of the county in which the agency operates may provide tax increment
1138  funding that would otherwise be provided directly to the agency to provide to the
1139  private participant to:
1140  (i) the county, in the amount the private entity is delinquent for property tax or
1141  privilege tax; and
1142  (ii) the political subdivision holding the political subdivision lien, in the amount
1143  necessary to resolve the political subdivision lien.
1144  Section 12. Section 17C-1-603 is amended to read:
1145  17C-1-603 (Effective 05/06/26). Reporting requirements -- Governor's Office of
1146     Economic Opportunity to maintain a database.
1147     (1) As used in this section:
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       Enrolled Copy  H.B. 507
1148        (a) "Database" means the collection of electronic data described in Subsection (2)(a).
1149        (b) "Office" means the Governor's Office of Economic Opportunity.
1150        (c) "Office website" means a public website maintained by the office.
1151        (d) "Project area" means:
1152  (i) the same as that term is defined in Section 17C-1-102; and
1153  (ii) if applicable, a regionally significant development zone for which the agency is
1154  responsible, as described in Chapter 6, Regionally Significant Development Zones
1155  Act.
1156        (e) "Project area funds" means:
1157  (i) the same as that term is defined in Section 17C-1-102; and
1158  (ii) if applicable, regionally significant development zone revenue as described in
1159  Section 17C-6-202.
1160    (2) The office shall:
1161        (a) create and maintain electronic data to track information for each agency located
1162  within the state; and
1163        (b) make the database publicly accessible from the office website.
1164    (3)(a) The office may:
1165  (i) contract with a third party to create and maintain the database; and
1166  (ii) charge a fee for a county, city, or agency to provide information to the database.
1167        (b) The office shall make rules, in accordance with Title 63G, Chapter 3, Utah
1168  Administrative Rulemaking Act, to establish a fee schedule for the fee described in
1169  Subsection (3)(a)(ii).
1170    (4) On or before June 30 of each year, an agency shall, for each active project area for
1171        which the project area funds collection period has not expired, submit to the office for
1172        inclusion in the database the following information:
1173        (a) an assessment of the change in marginal value, including:
1174  (i) the base year;
1175  (ii) the estimated current assessed value;
1176  (iii) the percentage change in marginal value; and
1177  (iv) a narrative description of the relative growth in assessed value;
1178        (b) the amount of project area funds the agency received and the amount of project area
1179  funds the agency spent for each year of the project area funds collection period,
1180  broken down by the applicable budget or funds analysis category described in
1181  Subsection (4)(d), including:
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       H.B. 507  Enrolled Copy
1182  (i) a comparison of the actual project area funds received and spent for each year to
1183  the amount of project area funds forecasted for each year when the project area
1184  was created, if available;
1185  (ii)(A) the agency's historical receipts and expenditures of project area funds,
1186  including the tax year for which the agency first received project area funds
1187  from the project area; or
1188  (B) if the agency has not yet received project area funds from the project area, the
1189  year in which the agency expects each project area funds collection period to
1190  begin;
1191  (iii) a list of each taxing entity that levies or imposes a tax within the project area and
1192  a description of the benefits that each taxing entity receives from the project area;
1193  and
1194  (iv) the amount paid to other taxing entities under Section 17C-1-410, if applicable;
1195        (c) a description of current and anticipated project area development, including:
1196  (i) a narrative of any significant project area development, including infrastructure
1197  development, site development, participation agreements, or vertical construction;
1198  and
1199  (ii) other details of development within the project area, including:
1200  (A) the total developed acreage;
1201  (B) the total undeveloped acreage;
1202  (C) the percentage of residential development; and
1203  (D) the total number of housing units authorized, if applicable;
1204        (d) the project area budget, if applicable, or other project area funds analyses, with
1205  receipts and expenditures categorized by the type of receipt and expenditure related
1206  to the development performed or to be performed under the project area plan,
1207  including:
1208  (i) each project area funds collection period, including:
1209  (A) the start and end date of the project area funds collection period; and
1210  (B) the number of years remaining in each project area funds collection period;
1211  (ii) the amount of project area funds the agency is authorized to receive from the
1212  project area cumulatively and from each taxing entity, including:
1213  (A) the total dollar amount; and
1214  (B) the percentage of the total amount of project area funds generated within the
1215  project area;
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       Enrolled Copy  H.B. 507
1216  (iii) the remaining amount of project area funds the agency is authorized to receive
1217  from the project area cumulatively and from each taxing entity; and
1218  (iv) the amount of project area funds the agency is authorized to use to pay for the
1219  agency's administrative costs, as described in Subsection 17C-1-409(1), including:
1220  (A) the total dollar amount; and
1221  (B) the percentage of the total amount of all project area funds;
1222        (e) the estimated amount of project area funds that the agency is authorized to receive
1223  from the project area for the current calendar year;
1224        (f) the estimated amount of project area funds to be paid to the agency for the next
1225  calendar year;
1226        (g) a map of the project area;
1227        (h) a description of how the goals, policies, and purposes of the project area plan have
1228  been furthered during the preceding year; and
1229        (i) any other relevant information the agency elects to provide.
1230    (5) An agency with no active project area shall, no later than June 30 of each year until the
1231        agency is dissolved under Section 17C-1-701.5, submit a report to the office stating that
1232        the agency has no active project area.
1233    (6) Any information an agency submits in accordance with this section:
1234        (a) is for informational purposes only; and
1235        (b) does not alter the amount of project area funds that an agency is authorized to receive
1236  from a project area.
1237    (7) The provisions of this section apply regardless of when the agency or project area is
1238        created.
1239    (8) On or before September 1 of each year, the office shall prepare and submit an annual
1240        written report to the Political Subdivisions Interim Committee that identifies the
1241        agencies that complied and the agencies that failed to comply with the reporting
1242        requirements of this section during the preceding reporting period.
1243    (9)(a) If, by September 30 of the year the information is due, the office does not receive
1244        the information that an agency is required to submit under Subsection (4), the office
1245        shall:
1246  (i) refer the noncompliant agency to the state auditor for review; and
1247  (ii) post a notice on the office website identifying the noncompliant agency and
1248  describing the agency's noncompliance.
1249        (b) If the office does not receive a report an agency is required to submit under
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       H.B. 507  Enrolled Copy
1250  Subsection (5), the office shall refer the noncompliant agency to the state auditor for
1251  review.
1252  (c) If, for two consecutive years, the office does not receive information an agency is
1253  required to submit under Subsection (4):
1254  (i) the office shall, no later than July 31 of the second consecutive year, notify the
1255  auditor and treasurer of the county in which the noncompliant agency is located of
1256  the agency's noncompliance; and
1257  (ii) upon receiving the notice described in Subsection (9)(c)(i), the county treasurer
1258  shall withhold from the agency 20% of the amount of tax increment the agency is
1259  otherwise entitled to receive.
1260  (d) If, after having funds withheld under Subsection (9)(c)(ii), an agency complies with
1261  Subsection (4):
1262  (i) the office shall notify the county auditor and treasurer that the agency has
1263  complied with the requirement of Subsection (4); and
1264  (ii) the county treasurer shall disburse the withheld funds to the agency.
1265  Section 13. Section 17C-6-101 is enacted to read:
1266  CHAPTER 6. Regionally Significant Development Zones Act
1267  Part 1. General Provisions
1268  17C-6-101 (Effective 05/06/26). Definitions.
1269        As used in this chapter:
1270     (1) "Creating entity" means the political subdivision that proposes and receives approval for
1271  the creation of a zone under Title 63N, Chapter 3a, Part 2, Creation of Regionally
1272  Significant Development Zones.
1273     (2) "Enhanced development" means the same as that term is defined in Section 63N-3a-101.
1274     (3) "Financing district" means:
1275  (a) an infrastructure financing district created under Title 17B, Chapter 2a, Part 13,
1276  Infrastructure Financing District; or
1277  (b) a public infrastructure district created under Title 17D, Chapter 4, Public
1278  Infrastructure District Act.
1279     (4) "Impacted primary area" means the same as that term is defined in Section 63N-3a-101.
1280     (5) "Large load data center" means the same as that term is defined in Section 11-41-201.
1281     (6) "Proposal" means the document approved by a committee as described in Title 63N,
1282  Chapter 3a, Part 2, Creation of Regionally Significant Development Zones.
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1283    (7) "Public infrastructure and improvements" means the same as that term is defined in
1284        Subsections 17D-4-102(14)(a)(i) and (ii), except the requirement in Subsection
1285        17D-4-102(14)(a)(i)(C) that the acquisition or financing be expressly permitted by a
1286        governing document or agreement may be fulfilled by the agency described in Section
1287        17C-6-102 or a financing district created by the agency.
1288    (8) "Zone" means a regionally significant development zone created under Title 63N,
1289        Chapter 3a, Part 2, Creation of Regionally Significant Development Zones.
1290  Section 14. Section 17C-6-102 is enacted to read:
1291  17C-6-102 (Effective 05/06/26). Agency to manage a regionally significant
1292    development zone.
1293    (1)(a) Upon the approval of a zone, as described in Section 63N-3a-203, a creating entity
1294        shall designate the creating entity's agency as the entity responsible for:
1295  (i) the management of the zone;
1296  (ii) the development of the zone; and
1297  (iii) the fulfillment of any duties described in this chapter.
1298        (b) If one or more creating entities propose a zone, as described in Section 63N-3a-201
1299  by entering into an interlocal agreement as described in Section 63N-3a-202, the
1300  interlocal agreement shall describe:
1301  (i) which agency is responsible for the management of the zone and zone revenue; or
1302  (ii) how each participating agency shall share responsibility for:
1303  (A) the management of the zone; and
1304  (B) zone revenue, as described in Part 2, Financing.
1305    (2) A proposal, along with conditions established by the committee that approved the
1306        proposal under Section 63N-3a-203, constitutes a governing document for the zone.
1307    (3)(a) The agency, in consultation with the creating entity, may create policies governing
1308        the development of the zone if the policies:
1309  (i) conform with the proposal; and
1310  (ii) do not contradict any provision of the proposal or any condition established by
1311  the committee that approved the proposal to create the zone.
1312        (b) If the agency and creating entity determine a modification to the proposal is required
1313  to pursue the objectives of the zone, the creating entity shall submit a proposal to
1314  modify the regionally significant development zone as described in Section
1315  63N-3a-208.
1316  Section 15. Section 17C-6-201 is enacted to read:
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1317  Part 2. Financing
1318  17C-6-201 (Effective 05/06/26). Energy tax -- Agency to study revenue
1319     generation options.
1320     (1) A county that levies the county energy excise tax authorized by Title 59, Chapter 35,
1321  County Energy Excise Tax Act, may provide revenue generated by the county energy
1322  excise tax to an agency for use in a zone if the zone includes at least one large load data
1323  center.
1324     (2) An agency shall study options to generate additional revenue within a zone and provide
1325  recommendations to the legislative body of the creating entity.
1326  Section 16. Section 17C-6-202 is enacted to read:
1327  17C-6-202 (Effective 05/06/26). Regionally significant development zone revenue.
1328     (1) The following are approved revenue sources for a zone:
1329  (a) property tax increment or personal property tax, as described in Section 63N-3a-204;
1330  and
1331  (b) revenue, if any, an agency receives from a county as described in Section 17C-6-201.
1332     (2) Revenue described in Subsection (1):
1333  (a) is zone revenue;
1334  (b) shall be administered by the agency; and
1335  (c) may be expended as provided in this chapter.
1336  Section 17. Section 17C-6-203 is enacted to read:
1337  17C-6-203 (Effective 05/06/26). Allowable uses of zone revenue.
1338     (1) An agency that is assigned to manage a zone shall use zone revenue within:
1339  (a) the zone; and
1340  (b) an impacted primary area, if the agency finds that the use of the zone revenue will:
1341  (i) directly benefit the zone; and
1342  (ii) promote the objectives of the zone, as outlined in the proposal.
1343     (2) An agency that receives zone revenue shall, subject to any requirement to remit revenue
1344  to the State Reinvestment Restricted Account as described in Title 63N, Chapter 3a, Part
1345  2, Creation of Regionally Significant Development Zones, allocate zone revenue to:
1346  (a) development in the zone, including, as applicable:
1347  (i) income targeted housing costs;
1348  (ii) structured parking;
1349  (iii) enhanced development costs;
1350  (iv) horizontal construction costs;
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1351  (v) vertical construction costs;
1352  (vi) property acquisition costs;
1353  (vii) public infrastructure and improvements; and
1354  (viii) realigning public infrastructure;
1355        (b) public infrastructure and improvements in an impacted primary area, if any; and
1356        (c) make the annual payment of principal, interest, premiums, and necessary reserves for
1357  any of the aggregate of bonds authorized under Subsection (3).
1358    (3) An agency may issue bonds, or cause bonds to be issued, as permitted by law, to pay all
1359        or part of the costs incurred for the purposes described in Subsection (2), including the
1360        cost to issue and repay the bonds including interest and reserves.
1361    (4) An agency may create one or more financing districts within the boundaries of the zone,
1362        and pledge and utilize zone funds to secure the payment of bonds issued by the created
1363        financing district.
1364    (5) In addition to the purposes described in Subsection (2), an agency may use zone
1365        revenue to cover the costs of the agency to administer the zone, not to exceed:
1366        (a) 3% of the total annual zone revenue; or
1367        (b) if the agency provides zone revenue to an entity through a participation agreement,
1368  3% of the total annual zone revenue retained by the agency after providing zone
1369  revenue pursuant to the terms of the participation agreement.
1370    (6) At the request of a creating entity, an agency shall reimburse the creating entity the cost
1371        of conducting the pro forma analysis required for the proposal, as described in Section
1372        63N-3a-202.
1373    (7) An agency may provide zone revenue to a person according to the terms of a
1374        participation agreement or an agreement described in Section 17C-6-301.
1375  Section 18. Section 17C-6-301 is enacted to read:
1376  Part 3. Partnership Agreements
1377  17C-6-301 (Effective 05/06/26). Private-public partnerships for a zone.
1378    (1) A person that seeks to enter into a private-public partnership with an agency shall
1379        provide the agency with an application that:
1380        (a) demonstrates the applicant is qualified to operate, in whole or in part, a project
1381  within the zone; and
1382        (b) provides any additional information required by the creating entity or agency.
1383    (2) An agency may enter into a private-public partnership:
1384        (a) if, after reviewing the application described in Subsection (1), the agency determines
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1385  a private-public partnership will promote the objectives of the zone; and
1386  (b) through an agreement described in this section.
1387     (3) An agreement to create a private-public partnership between a person and an agency
1388  may:
1389  (a) establish or recognize an ownership interest in the project for the person, in
1390  consideration of the person's financial investment in the project;
1391  (b) establish an ownership interest in the project for the agency or agency's creating
1392  entity, in consideration of the public's financial investment in the project; or
1393  (c) create a lease between the person and the agency.
1394  Section 19. Section 17C-6-401 is enacted to read:
1395  Part 4. Budgets, Audits, and Reports
1396  17C-6-401 (Effective 05/06/26). Regionally significant development zone budgets.
1397     (1) An agency shall develop a budget for the zone in accordance with:
1398  (a) Chapter 1, Part 6, Agency Annual Report, Budget, and Audit Requirements; and
1399  (b) this section.
1400     (2) An agency:
1401  (a) may incorporate a zone budget into the agency's budget; and
1402  (b) shall develop and present a zone budget as a separate agency budget item.
1403  Section 20. Section 17C-6-402 is enacted to read:
1404  17C-6-402 (Effective 05/06/26). Audits -- County auditor reports.
1405     (1) An agency shall comply with the same auditing requirements that are described in
1406  Sections 17C-1-604 and 17C-1-605 in regard to the regionally significant development
1407  zone.
1408     (2) The county auditor for a county in which a zone is created shall prepare an annual report
1409  in accordance with Section 17C-1-606, the same as if the zone were a project area.
1410  Section 21. Section 17C-6-403 is enacted to read:
1411  17C-6-403 (Effective 05/06/26). Reporting.
1412     (1) Beginning the second year after the effective date of a zone, an agency shall produce a
1413  biennial written report in accordance with this section no later than September 1.
1414     (2) Notwithstanding Section 17C-1-609, the report described in Subsection (1) shall:
1415  (a) describe the agency's progress in managing the zone and pursuing the objectives of
1416  the zone, as described in the proposal;
1417  (b) describe any impediments to the continued development of the zone;
1418  (c) describe the degree to which the development of the zone is complete;
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1419        (d) detail the amount of zone revenues received to date; and
1420        (e) detail the amount of revenues the agency has spent on behalf of the zone to date.
1421    (3) The agency shall provide the report described in this section to the Political
1422        Subdivisions Interim Committee.
1423    (4) The report described in this section is in addition to the reporting requirements
1424        described in Section 17C-1-603.
1425  Section 22. Section 17C-6-404 is enacted to read:
1426  17C-6-404 (Effective 05/06/26). Use of financing district.
1427       If an agency creates or utilizes a financing district to fulfill one or more objectives of the
1428    zone, the agency and the creating entity shall ensure that the financing district complies with
1429    the same budgeting, auditing, and reporting requirements described in this part, the same as if
1430    the financing district were the agency.
1431  Section 23. Section 17D-4-201 is amended to read:
1432  17D-4-201 (Effective 05/06/26). Creation -- Annexation or withdrawal of
1433    property.
1434    (1)(a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
1435        provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions
1436        Applicable to All Special Districts, a public infrastructure district may not be created
1437        unless a petition is filed with the creating entity that contains the signatures of 100%
1438        of surface property owners within the applicable area consenting to the creation of
1439        the public infrastructure district.
1440        (b)(i) As used in this Subsection (1)(b):
1441  (A) "Military land" means the same as that term is defined in Section 63H-1-102.
1442  (B) "Project area" means the same as that term is defined in Section 63H-1-102.
1443  (ii) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and
1444  any other provision of this chapter, a development authority may adopt a
1445  resolution creating a public infrastructure district if all owners of surface property
1446  proposed to be included within the public infrastructure district consent in writing
1447  to the creation of the public infrastructure district.
1448  (iii) For purposes of Subsection (1)(b)(ii), if the surface property proposed to be
1449  included within the public infrastructure district includes military land that is
1450  within a project area, the owner of the military land within the project area is the
1451  lessee of the military land.
1452  (iv) A public infrastructure district created under Subsection (1)(b)(ii) may be created
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1453  as a subsidiary of the development authority that adopts the resolution creating the
1454  public infrastructure district.
1455     (2)(a) The following do not apply to the creation of a public infrastructure district:
1456  (i) Section 17B-1-203;
1457  (ii) Section 17B-1-204;
1458  (iii) Subsection 17B-1-208(2);
1459  (iv) Section 17B-1-212; or
1460  (v) Section 17B-1-214.
1461  (b) The protest period described in Section 17B-1-213 may be waived in whole or in
1462  part with the consent of 100% of the surface property owners within the applicable
1463  area approving the creation of the public infrastructure district.
1464  (c) If the protest period is waived under Subsection (2)(b), a resolution approving the
1465  creation of the public infrastructure district may be adopted in accordance with
1466  Subsection 17B-1-213(5).
1467  (d) A petition meeting the requirements of Subsection (1) may be certified under Section
1468  17B-1-209.
1469  (e) Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the
1470  items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30
1471  days of the day on which a resolution creating a public infrastructure district is
1472  adopted.
1473     (3) Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
1474  boundaries of a public infrastructure district may be annexed into the public
1475  infrastructure district if the following requirements are met:
1476  [(a)(i) adoption of resolutions of the board and the creating entity, each approving of
1477  the annexation; or]
1478  [(ii) adoption of a resolution of the board to annex the area, provided that the
1479  governing document or creation resolution for the public infrastructure district
1480  authorizes the board to annex an area outside of the boundaries of the public
1481  infrastructure district without future consent of the creating entity; and]
1482  [(b)] (a) the board adopts a resolution approving the annexation;
1483  (b) the governing document or resolution creating the public infrastructure district
1484  authorizes the public infrastructure district to annex the proposed annexation area;
1485  (c) a petition is filed with the public infrastructure district that contains the signatures of
1486  100% of surface property owners within the [area proposed to be annexed] proposed
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1487  annexation area, demonstrating the surface property owners' consent to the
1488  annexation into the public infrastructure district[.] ; and
1489        (d) if the creating entity is a county or municipality and the proposed annexation area is
1490  outside the boundaries of the creating entity:
1491  (i) for an area that is unincorporated, the legislative body of the county where the
1492  area is located adopts a resolution approving the annexation; or
1493  (ii) for an area that is within the boundaries of a municipality, the legislative body of
1494  the municipality where the area is located adopts a resolution approving the
1495  annexation.
1496    (4)(a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be
1497        withdrawn from a public infrastructure district if the following requirements are met:
1498  (i)[(A)] adoption of [resolutions] a resolution of the board [and the creating entity,
1499  each ]approving of the withdrawal; [or] and
1500  [(B) adoption of a resolution of the board to withdraw the property, provided
1501  that the governing document or creation resolution for the public
1502  infrastructure district authorizes the board to withdraw property from the
1503  public infrastructure district without further consent from the creating entity;
1504  and]
1505  (ii) a petition is filed with the public infrastructure district that contains the signatures
1506  of 100% of surface property owners within the area proposed to be withdrawn,
1507  demonstrating that the surface property owners consent to the withdrawal from the
1508  public infrastructure district.
1509        (b) If any bonds that the public infrastructure district issues are allocable to the area to
1510  be withdrawn remain unpaid at the time of the proposed withdrawal, the property
1511  remains subject to any taxes, fees, or assessments that the public infrastructure
1512  district imposes until the bonds or any associated refunding bonds are paid.
1513        (c) Upon meeting the requirements of Subsection (3) or (4)(a), the board shall:
1514  (i) within 30 days of the day on which a resolution is adopted or a petition is filed
1515  under Subsection (3) or (4)(a), file with the lieutenant governor:
1516  (A) a copy of a notice of impending boundary action, as defined in Section
1517  67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
1518  (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5;
1519  and
1520  (ii) comply with the requirements of Section 17B-1-512, except:
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1521  (A) Subsections 17B-1-512(1)(b) and (c) do not apply; and
1522  (B) the time periods described in this section govern.
1523     (5) A creating entity may impose limitations on the powers of a public infrastructure district
1524  through the governing document.
1525     (6)(a) A public infrastructure district is separate and distinct from the creating entity.
1526  (b)(i) Except as provided in Subsection (6)(b)(ii), any financial burden, including the
1527  cost of accounting, audit reporting, and budget preparation, of a public
1528  infrastructure district:
1529  (A) is borne solely by the public infrastructure district; and
1530  (B) is not borne by the creating entity, by the state, or by any municipality,
1531  county, or other political subdivision.
1532  (ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing
1533  document may require:
1534  (A) the district applicant to bear the initial costs of the public infrastructure
1535  district; and
1536  (B) the public infrastructure district to reimburse the district applicant for the
1537  initial costs the creating entity bears.
1538  (iii) Nothing in this Subsection (6) precludes a public infrastructure district from
1539  qualifying directly for an impact fee offset, credit, or refund under Title 11,
1540  Chapter 36a, Impact Fees Act, regarding any qualifying system improvements
1541  financed by the public infrastructure district.
1542  (c) Any legal responsibility, liability, judgment, or claim against a public infrastructure
1543  district:
1544  (i) is the sole responsibility of the public infrastructure district; and
1545  (ii) does not constitute a liability, judgment, or claim against the creating entity, the
1546  state, or any municipality, county, or other political subdivision.
1547  (d)(i)(A) The public infrastructure district solely bears the responsibility of any
1548  collection, enforcement, or foreclosure proceeding with regard to any fee or
1549  assessment the public infrastructure district imposes.
1550  (B) The creating entity does not bear the responsibility described in Subsection
1551  (6)(d)(i)(A).
1552  (ii) A public infrastructure district, and not the creating entity, shall undertake the
1553  enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in
1554  accordance with Title 11, Chapter 42, Assessment Area Act.
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1555    (7) A creating entity may establish criteria in determining whether to approve or disapprove
1556        of the creation of a public infrastructure district, including:
1557        (a) historical performance of the district applicant;
1558        (b) compliance with the creating entity's master plan;
1559        (c) credit worthiness of the district applicant;
1560        (d) plan of finance of the public infrastructure district; and
1561        (e) proposed development within the public infrastructure district.
1562    (8)(a) The creation of a public infrastructure district is subject to the sole discretion of
1563        the creating entity responsible for approving or rejecting the creation of the public
1564        infrastructure district.
1565        (b) The proposed creating entity bears no liability for rejecting the proposed creation of
1566  a public infrastructure district.
1567  Section 24. Section 17D-4-202 is amended to read:
1568  17D-4-202 (Effective 05/06/26). Public infrastructure district board -- Governing
1569    document.
1570    (1)(a) The legislative body or board of the creating entity shall [appoint the initial
1571        members of the board of a public infrastructure district, in accordance with the
1572        governing document.] approve the governing document for the public infrastructure
1573        district through resolution.
1574        (b) A governing document[ approved by the legislative body or board of the creating
1575  entity may provide for] :
1576  (i) shall include the names of the initial members of the board;
1577  (ii) shall provide that, upon the lieutenant governor issuing a certificate of
1578  incorporation for the public infrastructure district, members of the board may be
1579  appointed in accordance with the terms of the governing document and this
1580  section; and
1581  (iii) may provide for the board of a public infrastructure district to, upon a vacancy
1582  on the board and subject to Subsection (4), appoint an individual to the board so
1583  long as the individual meets the requirements to serve on a public infrastructure
1584  district board described in this section.
1585        [(c) For public infrastructure districts not described in Subsection (1)(b), and except as
1586  provided in Subsection (1)(d):]
1587  [(i) if there is a vacancy on the board of a public infrastructure district, or a board
1588  member provides notice to the legislative body or board of the creating entity of
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       H.B. 507  Enrolled Copy
1589  the board member's intention to resign from the board, the legislative body or
1590  board of the creating entity shall appoint a replacement board member within 45
1591  days from the day on which the vacancy first occurs or the board member
1592  provides notice of the board member's intent to resign; and]
1593  [(ii) if a legislative body or board of the creating entity fails to fill a vacancy on the
1594  board within the time period described in Subsection (1)(c)(i), the board of the
1595  public infrastructure district may appoint an individual who is eligible to serve on
1596  the board according to the requirements of this section to fill the board vacancy.]
1597  [(d)] (c) If a public infrastructure district board position has transitioned from
1598  appointment to election, as described in Subsection (4), and an elected board position
1599  becomes vacant, the [provisions of Section 20A-1-512 apply to fill the vacancy]
1600  vacant board position shall be filled through the remainder of the term in the method
1601  provided in the governing document.
1602     (2)(a) Unless otherwise limited in the governing document and except as provided in
1603  Subsection (2)(b), the initial term of each member of the board is four years.
1604  (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
1605  board shall serve a six-year term so that, after the expiration of the initial term, the
1606  term of approximately half the board members expires every two years.
1607  (c) A board may elect that a majority of the board serve an initial term of six years.
1608  (d) After the initial term, the term of each member of the board is four years.
1609  (e) A member of the board who is appointed shall continue to serve on the board of the
1610  public infrastructure district until a replacement board member is appointed.
1611     (3)(a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to
1612  be a resident within the boundaries of the public infrastructure district if:
1613  (i) all of the surface property owners consent to the waiver of the residency
1614  requirement in the petition requesting the creation of the public infrastructure
1615  district;
1616  (ii) there are no residents within the boundaries of the public infrastructure district;
1617  (iii) no qualified candidate timely files to be considered for appointment to the board;
1618  or
1619  (iv) no qualified individual files a declaration of candidacy for a board position in
1620  accordance with Subsection 17B-1-306(5).
1621  (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
1622  residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board
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1623  member elected for a division or board position that has transitioned from an
1624  appointed to an elected board member in accordance with this section.
1625        (c) An individual who is not a resident within the boundaries of the public infrastructure
1626  district may not serve as a board member unless the individual is:
1627  (i) an owner of land or an agent or officer of the owner of land within the boundaries
1628  of the public infrastructure district; and
1629  (ii) a registered voter at the individual's primary residence.
1630        (d) If [the creating entity determines that ]a public infrastructure district is not
1631  anticipated to have permanent residents within the public infrastructure district's
1632  boundaries, or is anticipated to be primarily composed of non-residential property or
1633  non-primary residential property, a governing document may allow the [creating
1634  entity to continue] board to appoint a property owner, or the agent of a property
1635  owner, to the public infrastructure district board.
1636        (e) A governing document may allow for a property owner to recommend a property
1637  owner or a property owner's agent for appointment to the public infrastructure district
1638  board in numbers proportional to the property owner's ownership of land, or value of
1639  land, within a public infrastructure district.
1640    (4)(a) A governing document may provide for a transition from [legislative body ]
1641        appointment under Subsection (1) to a method of election by registered voters based
1642        upon milestones or events that the governing document identifies, including a
1643        milestone for each division or individual board position providing that when the
1644        milestone is reached:
1645  (i) for a division, the registered voters of the division elect a member of the board in
1646  place of an appointed member at the next municipal general election for the board
1647  position; or
1648  (ii) for an at large board position established in the governing document, the
1649  registered voters of the public infrastructure district elect a member of the board in
1650  place of an appointed member at the next municipal general election for the board
1651  position.
1652        (b) Regardless of whether a board member is elected under Subsection (4)(a), the
1653  position of each remaining board member shall continue to be appointed under
1654  Subsection (1) until the member's respective division or board position surpasses the
1655  density milestone described in the governing document.
1656    (5)(a) [Subject to Subsection (5)(c), the ] For a public infrastructure district that has
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       H.B. 507  Enrolled Copy
1657  transitioned to a method of election as described in Subsection (4), the board may, in
1658  the board's discretion but no more frequently than every four years, reestablish the
1659  boundaries of each division so that each division that has reached a milestone
1660  specified in the governing document, as described in Subsection (4)(a), has, as nearly
1661  as possible, the same number of eligible voters.
1662  (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
1663  consider existing or potential developments within the divisions that, when
1664  completed, would increase or decrease the number of eligible voters within the
1665  division.
1666  [(c) The governing document may prohibit the board from reestablishing, without the
1667  consent of the creating entity, the division boundaries as described in Subsection
1668  (5)(a).]
1669     (6) A public infrastructure district may not compensate a board member for the member's
1670  service on the board under Section 17B-1-307 unless the board member is a resident
1671  within the boundaries of the public infrastructure district.
1672     (7) A governing document shall:
1673  (a) include a boundary description and a map of the public infrastructure district;
1674  (b) state the number of board members;
1675  (c) describe any divisions of the public infrastructure district;
1676  (d) establish any applicable property tax levy rate limit for the public infrastructure
1677  district;
1678  (e) establish any applicable limitation on the principal amount of indebtedness for the
1679  public infrastructure district;
1680  (f) describe the public infrastructure and improvements, facilities, or properties that the
1681  public infrastructure district is created to construct, repair, or otherwise complete, as
1682  described in Section 17D-4-203; and
1683  [(f)] (g) include other information that the public infrastructure district or the creating
1684  entity determines to be necessary or advisable.
1685     (8)(a) Except as provided in Subsection (8)(b), the board and the governing body of the
1686  creating entity may amend a governing document by each adopting a resolution that
1687  approves the amended governing document.
1688  (b) Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy
1689  rate limitation requires the consent of 100% of surface property owners within the
1690  boundaries of the public infrastructure district.
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1691    (9) A board member is not in violation of Section 67-16-9 if the board member:
1692        (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
1693  and files the disclosure with the creating entity:
1694  (i) before any appointment or election; and
1695  (ii) upon any significant change in the business relationship; and
1696        (b) conducts the affairs of the public infrastructure district in accordance with this title
1697  and any parameters described in the governing document.
1698    (10) Notwithstanding any other provision of this section, the governing document governs
1699        the number, appointment, eligibility for appointment, and terms of board members of a
1700        public infrastructure district created by the development authority.
1701  Section 25. Section 17D-4-202.1 is amended to read:
1702  17D-4-202.1 (Effective 05/06/26). Convention center public infrastructure --
1703    District board -- Petition and process requirements -- Governing document.
1704    (1) As used is this section:
1705        (a) "City" means a municipality of the first class located in a county of the first class in
1706  which a convention center is located.
1707        (b) "County" means a county in which a convention center is located.
1708        (c) "Lessee" means a lessee of property within the proposed convention center public
1709  infrastructure district that leases the property from the city or county for a term of at
1710  least 10 years.
1711        (d)(i) "Petitioner" means:
1712  (A) a surface property owner, a property owner, or lessee of property within a
1713  proposed convention center public infrastructure district's boundaries that
1714  initiates the formation of a convention center public infrastructure district; or
1715  (B) a surface property owner under this chapter, and Title 17B, Chapter 1,
1716  Provisions Applicable to All Special Districts, in relation to a convention
1717  center public infrastructure district.
1718  (ii) "Petitioner" does not include a city, county, or other public entity.
1719    (2) A convention center public infrastructure district shall be created in a city upon the
1720        submission of a petition in accordance with this part and shall have all the powers of a
1721        public infrastructure district under this chapter.
1722    (3) A convention center public infrastructure district may only be created within a city in
1723        which a convention center is located.
1724    (4) The petition described in Subsection (2) shall:
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       H.B. 507  Enrolled Copy
1725  (a) include the governing document; and
1726  (b) for a petition to a city which has previously authorized revitalization taxes described
1727  in Section 63N-3-1403, include as part of the governing document approval and
1728  authorization of an interlocal agreement pledging and securing the revitalization
1729  taxes for debt of the proposed convention center public infrastructure district.
1730     (5)(a) The process for creating a convention center public infrastructure district or a
1731  convention center public infrastructure district in a capital city shall be initiated by
1732  the submission of a petition and a governing document to the city, except that:
1733  (i) the city recorder shall certify the petition within 14 days from the day the
1734  petitioner submits the petition to the city recorder;
1735  (ii) if the city recorder fails to certify the petition within the time described in
1736  Subsection (5)(a)(i), the petition shall be considered certified; and
1737  (iii) within 30 days from the day that the petitioner submits the petition to the city
1738  recorder, or if the city and the petitioner have come to an agreement as described
1739  in Subsection (5)(b), the city shall adopt a resolution to approve:
1740  (A) the governing document the petitioner submitted with the petition; and
1741  (B) the creation of a convention center public infrastructure district or a
1742  convention center public infrastructure district in a capital city.
1743  (b) Notwithstanding Subsection (5)(a), the city and petitioner may negotiate the finalized
1744  terms of the petition, including the terms of an interlocal agreement, within a time
1745  period agreed upon by the city and petitioner.
1746     (6)(a) The boundaries of a convention center public infrastructure district shall be
1747  limited to an area within a one-half-mile radius of a convention center.
1748  (b) If a parcel is intersected by the radius described in Subsection (6)(a), the entire parcel
1749  may be included in the district.
1750     (7) A convention center public infrastructure district shall be subject to the following
1751  provisions regarding taxation and financing:
1752  (a) a convention center public infrastructure district may levy an administrative tax of up
1753  to 0.0005 per dollar of taxable value on taxable property within the district; and
1754  (b) the administrative tax shall be used exclusively for administrative expenses and may
1755  not be used for capital costs or debt payment.
1756     (8) A convention center public infrastructure district shall be governed by the governing
1757  document submitted and approved as described in this section.
1758     (9) The convention center public infrastructure board shall consist of five members to be
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1759        appointed by the board in accordance with the governing document as follows:
1760        (a) three members shall be representatives of the petitioner and selected by the petitioner;
1761        (b) one member may be a representative of the city and selected by the mayor of the
1762  city; and
1763        (c) one member may be a representative of the county and selected by the mayor of the
1764  county.
1765    (10)(a) Except as provided in Subsection (10)(b), upon a vacancy or expiration of a term
1766        of a board member for a convention center public infrastructure district, the board
1767        shall appoint the replacement in the same manner as described in Subsection (9) for
1768        the unexpired period of the board member's term.
1769        (b) If a city or county mayor chooses not to select a member of the board as described in
1770  Subsection (9)(b) or (c), elects in writing to permanently abdicate the board seat, or
1771  chooses to vacate a member at any time, the petitioner shall select a member for the
1772  replacement who shall not be a representative of the city or county in which the
1773  convention center is located.
1774    (11)(a) A convention center public infrastructure district shall enter into an interlocal
1775        agreement with the relevant county that provides that, for any revenue that is
1776        transferred to the convention center public infrastructure district from a convention
1777        center reinvestment zone created [pursuant to] in accordance with Title 63N, Chapter
1778        3, Part 6, Housing and Transit Reinvestment Zone Act, the mayor of the county shall
1779        have approval authority for the expenditure of any revenue related to a convention
1780        center revitalization project, as that term is defined in Section 63N-3-602.
1781        (b) The approval authority described in Subsection (11)(a) does not include approval
1782  authority over:
1783  (i) any bonds or debt or related terms issued by the convention center public
1784  infrastructure district; or
1785  (ii) revenue subject to a participation agreement entered into pursuant to Title 63N,
1786  Chapter 3, Part 14, Capital City Revitalization Zone.
1787  Section 26. Section 17D-4-203 is amended to read:
1788  17D-4-203 (Effective 05/06/26). Public infrastructure district powers.
1789    (1) A public infrastructure district has all of the authority conferred upon a special district
1790        under Section 17B-1-103.
1791    (2) A public infrastructure district may:
1792        (a) issue negotiable bonds to pay:
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1793  (i) all or part of the costs of acquiring, acquiring an interest in, improving, or
1794  extending any of the improvements, facilities, or property allowed under Section
1795  11-14-103;
1796  (ii) capital costs of improvements in an energy assessment area, as defined in Section
1797  11-42a-102, and other related costs, against the funds that the public infrastructure
1798  district will receive because of an assessment in an energy assessment area;
1799  (iii) public improvements related to the provision of housing;
1800  (iv) capital costs related to public transportation;
1801  (v) for a public infrastructure district that is within or adjacent to a housing and
1802  transit reinvestment zone described in Title 63N, Chapter 3, Part 6, Housing and
1803  Transit Reinvestment Zone Act, any and all costs to finance any public or
1804  privately owned improvements, which, in the discretion of the board of the public
1805  infrastructure district, promote the objectives described in Section 63N-3-603.1;
1806  (vi) the cost of acquiring or financing public infrastructure and improvements;
1807  (vii) for a public infrastructure district that is a subsidiary of or created by the Utah
1808  Inland Port Authority, the costs associated with a remediation project, as defined
1809  in Section 11-58-102;
1810  (viii) for a convention center public infrastructure district that is within or adjacent to
1811  a convention center reinvestment zone as defined in Section 63N-3-602, any or all
1812  of the costs to finance any public or privately owned improvements, including
1813  convention center-related improvements and arena improvements, which, in the
1814  discretion of the board of a convention center public infrastructure district,
1815  promote the objectives of the convention center reinvestment zone, as described in
1816  Section 63N-3-603.1;
1817  (ix) for a convention center public infrastructure district, the costs of financing a
1818  convention revitalization project, as the term is defined in Section 63N-3-602;
1819  (x) for a convention center public infrastructure district in a capital city that is within
1820  or adjacent to a convention center reinvestment zone in a capital city, as defined in
1821  Section 63N-3-602, any or all of the costs to financing any publicly owned
1822  improvements, including the cost of financing a convention center revitalization
1823  project in a capital city, as defined in Section 63N-3-602, convention
1824  center-related improvements, and publicly or privately owned improvements that
1825  directly serve the convention center, which, in the discretion of the board of the
1826  convention center public infrastructure district in a capital city, promote the
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1827  objectives of the convention center reinvestment zone in a capital city, as
1828  described in Section 63N-3-603.1; and
1829  (xi) for a convention center public infrastructure district in a capital city that is within
1830  a capital city revitalization zone project area, as defined in Section 63N-3-1401,
1831  any allowed uses of funds or revenue provided for under Section 59-12-402.5,
1832  including eligible expenses consistent with the terms of the participation
1833  agreement, except that a convention center public infrastructure district in a
1834  capital city may not issue negotiable bonds serviced by the revitalization tax under
1835  Section 59-12-402.5 for privately owned improvements for more than the
1836  maximum dollar amount described in the participation agreement.
1837        (b) enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal
1838  Cooperation Act, provided that the interlocal agreement may not expand the powers
1839  of the public infrastructure district, within the limitations of Title 11, Chapter 13,
1840  Interlocal Cooperation Act, without the consent of the creating entity;
1841        (c) notwithstanding any other provision in code, acquire completed or partially
1842  completed improvements, including related design and consulting services and
1843  related work product, for fair market value as reasonably determined by[:]
1844  [(i) the board;]
1845  [(ii) the creating entity, if required in the governing document; or]
1846  [(iii)] a surveyor or engineer that a public infrastructure district employs or engages
1847  to perform the necessary engineering services for and to supervise the
1848  construction or installation of the improvements;
1849        (d) contract with the creating entity for the creating entity to provide administrative
1850  services on behalf of the public infrastructure district, when agreed to by both parties,
1851  in order to achieve cost savings and economic efficiencies, at the discretion of the
1852  creating entity;
1853        (e) for a public infrastructure district created by a development authority, or for a public
1854  infrastructure district created by a municipality and located in an urban renewal
1855  project area that includes some or all of an inactive industrial site:
1856  (i)(A) operate and maintain public infrastructure and improvements the district
1857  acquires or finances; and
1858  (B) use fees, assessments, or taxes to pay for the operation and maintenance of
1859  those public infrastructure and improvements;[ and]
1860  (ii) issue bonds under Title 11, Chapter 42, Assessment Area Act; and
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1861  (iii) notwithstanding Section 17D-4-303 and subject to Subsection (3), for an
1862  advanced manufacturing project or a critical mineral extraction project located on
1863  state-owned or development authority-owned land within an authority project
1864  area, levy a property tax at a rate not to exceed a rate that generates more revenue
1865  than required to pay the annual debt service of the bond plus administrative costs
1866  and issue unlimited general obligation bonds as may be authorized by an election
1867  as described in this chapter and approved by the authority board.
1868  (f) for a public infrastructure district that is a subsidiary of or created by the Utah Inland
1869  Port Authority, pay for costs associated with a remediation project, as defined in
1870  Section 11-58-102, of the Utah Inland Port Authority.
1871     (3) For general obligation bonds described in Subsection (2)(e)(iii)(A), the principal
1872  amount of the bonds cannot exceed 75% of the market value of the project for which the
1873  bonds are issued after the project is constructed and operating, as estimated and
1874  approved by a majority of the board of the public infrastructure district.
1875     (4) A public infrastructure district created by the Utah Fairpark Area Investment and
1876  Restoration District, created in Section 11-70-201, may:
1877  (a) pay for the cost of the development and construction of a qualified stadium, as
1878  defined in Section 11-70-101; and
1879  (b) pay for the cost of public infrastructure and improvements.
1880  Section 27. Section 17D-4-204 is amended to read:
1881  17D-4-204 (Effective 05/06/26). Relation to other local entities.
1882     (1) Notwithstanding the creation of a public infrastructure district, the creating entity and
1883  any other public entity, as applicable, retains all of the entity's authority over all zoning,
1884  planning, design specifications and approvals, and permitting within the public
1885  infrastructure district.
1886     (2) The inclusion of property within the boundaries of a public infrastructure district does
1887  not preclude the inclusion of the property within any other special district.
1888     (3)(a) All infrastructure that is connected to another public entity's system:
1889  (i) belongs to that public entity, regardless of inclusion within the boundaries of a
1890  public infrastructure district, unless the public infrastructure district and the public
1891  entity otherwise agree; and
1892  (ii) shall comply with the design, inspection requirements, and other standards of the
1893  public entity.
1894  (b) A public infrastructure district shall convey or transfer the infrastructure described in
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       Enrolled Copy  H.B. 507
1895  Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
1896  cost to the public entity.
1897        (c) The conveyance, transfer, or dedication of infrastructure to a creating entity or a
1898  public entity in accordance with this section is not a financial benefit of the creating
1899  entity or public entity.
1900    (4)(a) No public entity or private person shall receive funds from any portion of a public
1901        infrastructure district's property tax revenue without a resolution of the public
1902        infrastructure district's board authorizing the public entity or private person to receive
1903        the funds.
1904        (b) Subsection (4)(a) does not apply to the county's expenses related to collecting
1905  property tax in accordance with Title 59, Chapter 2, [Part 12, ]Property Tax Act.
1906        (c) Subsection (4)(a) applies notwithstanding any provision in:
1907  (i) Title 17C, Limited Purpose Local Government Entities - Community
1908  Reinvestment Agency Act;
1909  (ii) Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
1910  (iii) a statute governing a development authority created under Utah Constitution,
1911  Article XI; or
1912  (iv) a provision of code related to the collection, distribution, or sharing of tax
1913  increment revenue, incremental property tax increases, or actions related to the
1914  collection, distribution, or sharing of tax increment revenue or incremental
1915  property tax increases.
1916  Section 28. Section 17D-4-303 is amended to read:
1917  17D-4-303 (Effective 05/06/26). Limits on public infrastructure district property
1918    tax levy -- Notice requirements.
1919    (1) [The ] Except as provided in Subsections 17D-4-203(2)(e) and 63H-1-202(10), the
1920        property tax levy of a public infrastructure district, for all purposes, including payment
1921        of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value of
1922        taxable property in the district.
1923    (2) The limitation described in Subsection (1) does not apply to the levy by the public
1924        infrastructure district to pay principal of and interest on a general obligation bond that
1925        the public infrastructure district issues.
1926    (3)(a) Within 30 days after the day on which the lieutenant governor issues a certificate
1927        of incorporation for the public infrastructure district under Section 67-1a-6.5, the
1928        board shall record a notice with the recorder of the county in which property within
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       H.B. 507  Enrolled Copy
1929  the public infrastructure district is located.
1930  (b) The notice described in Subsection (3)(a) shall:
1931  (i) contain a description of the boundaries of the public infrastructure district;
1932  (ii) state that a copy of the governing document is on file at the office of the creating
1933  entity;
1934  (iii) state that the public infrastructure district may finance and repay infrastructure
1935  and other improvements through the levy of a property tax; and
1936  (iv) state the maximum rate that the public infrastructure district may levy.
1937  (c) The effective date of the public infrastructure district for purposes of assessing
1938  property tax is the day on which the notice is recorded in the office of the recorder of
1939  each county in which the public infrastructure district is located, as described in
1940  Section 59-2-305.5.
1941     (4) If the board fails to record a notice as described in Subsection (3):
1942  (a) the public infrastructure district is still created as of the day the lieutenant governor
1943  issues a certificate of incorporation for the public infrastructure district;
1944  (b) any bonds issued by the public infrastructure district are still valid; and
1945  (c) the public infrastructure district may not levy a tax or levy or collect a fee until the
1946  board records the notice described in Subsection (3).
1947  Section 29. Section 17D-4-401 is enacted to read:
1948  Part 4. Dissolution
1949  17D-4-401 (Effective 05/06/26). District dissolution.
1950     (1) The board of trustees of a public infrastructure district, other than a public infrastructure
1951  district created by a development authority that provides ongoing services, shall adopt a
1952  resolution to dissolve the public infrastructure once:
1953  (a) the public infrastructure district has paid all the public infrastructure district's debts;
1954  (b) the public infrastructure district's contractual obligations are satisfied or defeased; and
1955  (c) except for public infrastructure and improvements, facilities, or properties that are
1956  privately owned, the public infrastructure and improvements, facilities, or properties
1957  described in the governing document, as required in Section 17D-4-202, have been:
1958  (i) constructed, repaired, or otherwise completed;
1959  (ii) accepted by the public entity as meeting the public entity's applicable
1960  development, design, and construction standards; and
1961  (iii) transferred to the entity responsible for the maintenance and operation of the
1962  public infrastructure and improvement, facility, or property.
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1963    (2) The board shall:
1964        (a) adopt a resolution approving the dissolution of the public infrastructure district
1965  within 30 days of the day on which the conditions of Subsection (1) are met; and
1966        (b) file with the lieutenant governor a notice of an impending boundary action, as
1967  defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3),
1968  within 30 days of the day on which the board adopts a resolution described in
1969  Subsection (2)(a).
1970    (3) The board may use any assets of the public infrastructure district that remain after the
1971        requirements of Subsection (1) are met to pay costs associated with the dissolution
1972        process.
1973    (4) Upon the lieutenant governor's issuance of a certificate of dissolution under Section
1974        67-1a-6.5:
1975        (a) the public infrastructure district is dissolved; and
1976        (b) the board shall:
1977  (i) if the public infrastructure district was located within the boundary of a single
1978  county, submit to the recorder of that county the original and a certified copy of
1979  the resolution described in Subsection (2)(a); or
1980  (ii) if the public infrastructure district was located within the boundaries of more than
1981  a single county:
1982  (A) submit to the recorder of one of those counties the original certificate of
1983  dissolution and a certified copy of the resolution described in Subsection (2)(a);
1984  and
1985  (B) submit to the recorder of each other county a certified copy of the certificate
1986  of dissolution and a certified copy of the resolution described in Subsection
1987  (2)(a).
1988    (5) If any assets of the public infrastructure district remain after the conditions of
1989        Subsection (1) are met and the costs described in Subsection (3) are paid, the board shall
1990        distribute the assets in the following order of priority:
1991        (a) if there is a readily identifiable connection between the remaining assets and a
1992  financial burden borne by the real property owners in the dissolved public
1993  infrastructure district, proportionately to those real property owners; and
1994        (b) the entity described in Subsection (1)(c)(ii).
1995  Section 30. Section 51-9-1001 is enacted to read:
1996  Part 10. State Reinvestment Restricted Account
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       H.B. 507  Enrolled Copy
1997  51-9-1001 (Effective 05/06/26). Definitions.
1998        As used in this part:
1999     (1) "Account" means the State Reinvestment Restricted Account created in Section
2000  51-9-1002.
2001     (2) "Generational water infrastructure" means physical facilities or other physical assets
2002  designed to meet generational demands for water.
2003  Section 31. Section 51-9-1002 is enacted to read:
2004  51-9-1002 (Effective 05/06/26). State Reinvestment Restricted Account created.
2005     (1) There is created within the General Fund a restricted account known as the "State
2006  Reinvestment Restricted Account."
2007     (2) The account shall consist of:
2008  (a) revenue deposited into the account in accordance with:
2009  (i) Title 63N, Chapter 3a, Part 2, Creation of Regionally Significant Development
2010  Zones; and
2011  (ii) Title 63N, Chapter 3a, Part 4, Regionally Significant Zones with Energy
2012  Implications;
2013  (b) revenue deposited into the account by the Utah Inland Port Authority in accordance
2014  with Sections 11-58-602 and 11-58-607; and
2015  (c) interest and earnings on money in the account.
2016     (3) The state treasurer shall invest the money in the fund according to Title 51, Chapter 7,
2017  State Money Management Act, except that interest or other earnings derived from those
2018  investments shall be deposited into the account.
2019  Section 32. Section 51-9-1003 is enacted to read:
2020  51-9-1003 (Effective 05/06/26). Authorized use of the State Reinvestment
2021     Restricted Account.
2022     (1) Money in the account is to be used, subject to appropriation, for:
2023  (a) income tax relief;
2024  (b) development of generational water infrastructure;
2025  (c) facilitating preservation of the Great Salt Lake watershed, as described in Title 73,
2026  Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;
2027  (d) regionally significant transit development and regionally significant transit
2028  infrastructure; and
2029  (e) development of energy resources, as described in Title 79, Chapter 6, Utah Energy
2030  Act.
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2031    (2) Money in the account that is derived from a local source may not be used in an area
2032        outside the area in which the money was generated unless the money is used for a
2033        purpose described in Subsection (1).
2034  Section 33. Section 57-1-49 is enacted to read:
2035  57-1-49 (Effective 05/06/26). Disclosure of annual assessment to a public
2036    infrastructure district.
2037    (1) As used in this section, "public infrastructure district" means an entity created as
2038        described in Title 17D, Chapter 4, Public Infrastructure District Act.
2039    (2) In a conveyance of residential real property within the boundaries of a public
2040        infrastructure district, a seller or the seller's representative shall ensure that the expected
2041        annual cost of the public infrastructure district's final tax rate, as shown on the last
2042        equalized assessment rolls, is included in a disclosure document at or before closing.
2043  Section 34. Section 59-1-306 is amended to read:
2044  59-1-306 (Effective 05/06/26). Definition -- State Tax Commission
2045    Administrative Charge Account -- Amount of administrative charge -- Deposit of
2046    revenue into the restricted account -- Interest deposited into General Fund --
2047    Expenditure of money deposited into the restricted account.
2048    (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the
2049        commission administers under:
2050        (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2051        (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
2052        (c) Section 19-6-714;
2053        (d) Section 19-6-805;
2054        (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
2055  Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
2056        (f) Section 59-27-105;
2057        (g) Chapter 31, Cannabinoid Licensing and Tax Act;
2058        (h) Chapter 32, Local Impact Mitigation Tax Act;
2059        (i) Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax;
2060        (j) Chapter 35, County Energy Excise Tax Act;
2061        [(j)] (k) Section 63H-1-205;
2062        [(k)] (l) Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;[ or]
2063        [(l)] (m) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
2064  Charges; or
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2065  [(m)] (n) Title 79, Chapter 6, [Part 11] Part 14, Energy Project Assessment.
2066     (2) There is created a restricted account within the General Fund known as the "State Tax
2067  Commission Administrative Charge Account."
2068     (3) Subject to the other provisions of this section, the restricted account shall consist of
2069  administrative charges the commission retains and deposits in accordance with this
2070  section.
2071     (4) For purposes of this section, the administrative charge is a percentage of revenue the
2072  commission collects from each qualifying tax, fee, or charge of not to exceed the lesser
2073  of:
2074  (a) 1.5%; or
2075  (b) an equal percentage of revenue the commission collects from each qualifying tax,
2076  fee, or charge sufficient to cover the cost to the commission of administering the
2077  qualifying taxes, fees, or charges.
2078     (5) The commission shall deposit an administrative charge into the restricted account.
2079     (6) Interest earned on the restricted account shall be deposited into the General Fund.
2080     (7) The commission shall expend money appropriated by the Legislature to the commission
2081  from the restricted account to administer qualifying taxes, fees, or charges or to offset
2082  general operational expenses.
2083  Section 35. Section 59-2-924 is amended to read:
2084  59-2-924 (Effective 05/06/26). Definitions -- Report of valuation of property to
2085     county auditor and commission -- Transmittal by auditor to governing bodies --
2086     Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget
2087     -- Notice provided by the commission.
2088     (1) As used in this section:
2089  (a)(i) "Ad valorem property tax revenue" means revenue collected in accordance with
2090  this chapter.
2091  (ii) "Ad valorem property tax revenue" does not include:
2092  (A) interest;
2093  (B) penalties;
2094  (C) collections from redemptions; or
2095  (D) revenue received by a taxing entity from personal property that is
2096  semiconductor manufacturing equipment assessed by a county assessor in
2097  accordance with Part 3, County Assessment.
2098  (b) "Adjusted tax increment" means the same as that term is defined in Section
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2099  17C-1-102.
2100        (c)(i) "Aggregate taxable value of all property taxed" means:
2101  (A) the aggregate taxable value of all real property a county assessor assesses in
2102  accordance with Part 3, County Assessment, for the current year;
2103  (B) the aggregate taxable value of all real and personal property the commission
2104  assesses in accordance with Part 2, Assessment of Property, for the current
2105  year; and
2106  (C) the aggregate year end taxable value of all personal property a county assessor
2107  assesses in accordance with Part 3, County Assessment, contained on the prior
2108  year's tax rolls of the taxing entity.
2109  (ii) "Aggregate taxable value of all property taxed" does not include the aggregate
2110  year end taxable value of personal property that is:
2111  (A) semiconductor manufacturing equipment assessed by a county assessor in
2112  accordance with Part 3, County Assessment; and
2113  (B) contained on the prior year's tax rolls of the taxing entity.
2114        (d) "Base taxable value" means:
2115  (i) for an authority created under Section 11-58-201, the same as that term is defined
2116  in Section 11-58-102;
2117  (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
2118  the same as that term is defined in Section 11-59-207;
2119  (iii) for the Utah Fairpark Area Investment and Restoration District created in Section
2120  11-70-201, the same as that term is defined in Section 11-70-101;
2121  (iv) for an agency created under Section 17C-1-201.5, the same as that term is
2122  defined in Section 17C-1-102;
2123  (v) for an authority created under Section 63H-1-201, the same as that term is defined
2124  in Section 63H-1-102;
2125  (vi) for a host local government, the same as that term is defined in Section
2126  63N-2-502;
2127  (vii) for a housing and transit reinvestment zone or convention center reinvestment
2128  zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
2129  Reinvestment Zone Act, the same as that term is defined in Section 63N-3-602;
2130  (viii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
2131  Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
2132  5, Home Ownership Promotion Zone, a property's taxable value as shown upon
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2133  the assessment roll last equalized during the base year, as that term is defined in
2134  Section 10-21-101 or Section 17-80-101;
2135  (ix) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
2136  First Home Investment Zone Act, a property's taxable value as shown upon the
2137  assessment roll last equalized during the base year, as that term is defined in
2138  Section 63N-3-1601;
2139  (x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
2140  Major Sporting Event Venue Zone Act, a property's taxable value as shown upon
2141  the assessment roll last equalized during the property tax base year, as that term is
2142  defined in Section 63N-3-1701;[ or]
2143  (xi) for an electrical energy development zone created under Section 79-6-1104, the
2144  value of the property within an electrical energy development zone, as shown on
2145  the assessment roll last equalized before the creation of the electrical development
2146  zone, as that term is defined in Section 79-6-1104[.] ; or
2147  (xii) for a regionally significant development zone created under Section 63N-3a-203,
2148  the taxable value of the property within a regionally significant development zone
2149  boundary, as shown on the assessment roll last equalized during the base year, as
2150  that term is defined in Section 63N-3a-101.
2151        (e) "Centrally assessed benchmark value" means an amount equal to the average year
2152  end taxable value of real and personal property the commission assesses in
2153  accordance with Part 2, Assessment of Property, for the previous three calendar
2154  years, adjusted for taxable value attributable to:
2155  (i) an annexation to a taxing entity;
2156  (ii) an incorrect allocation of taxable value of real or personal property the
2157  commission assesses in accordance with Part 2, Assessment of Property; or
2158  (iii) a change in value as a result of a change in the method of apportioning the value
2159  prescribed by the Legislature, a court, or the commission in an administrative rule
2160  or administrative order.
2161        (f) "Centrally assessed industry" means the following industry classes the commission
2162  assesses in accordance with Part 2, Assessment of Property:
2163  (i) air carrier;
2164  (ii) coal;
2165  (iii) coal load out property;
2166  (iv) electric generation;
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2167  (v) electric rural;
2168  (vi) electric utility;
2169  (vii) gas utility;
2170  (viii) ground access property;
2171  (ix) land only property;
2172  (x) liquid pipeline;
2173  (xi) metalliferous mining;
2174  (xii) nonmetalliferous mining;
2175  (xiii) oil and gas gathering;
2176  (xiv) oil and gas production;
2177  (xv) oil and gas water disposal;
2178  (xvi) railroad;
2179  (xvii) sand and gravel; and
2180  (xviii) uranium.
2181        (g)(i) "Centrally assessed new growth" means the greater of:
2182  (A) for each centrally assessed industry, zero; or
2183  (B) the amount calculated by subtracting the centrally assessed benchmark value
2184  for each centrally assessed industry, adjusted for prior year end incremental
2185  value, from the taxable value of real and personal property the commission
2186  assesses in accordance with Part 2, Assessment of Property, for each centrally
2187  assessed industry for the current year, adjusted for current year incremental
2188  value.
2189  (ii) "Centrally assessed new growth" does not include a change in value for a
2190  centrally assessed industry as a result of a change in the method of apportioning
2191  the value prescribed by the Legislature, a court, or the commission in an
2192  administrative rule or administrative order.
2193        (h) "Certified tax rate" means a tax rate that will provide the same ad valorem property
2194  tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
2195        (i) "Community reinvestment agency" means the same as that term is defined in Section
2196  17C-1-102.
2197        (j) "Eligible new growth" means the greater of:
2198  (i) zero; or
2199  (ii) the sum of:
2200  (A) locally assessed new growth;
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2201  (B) centrally assessed new growth; and
2202  (C) project area new growth or hotel property new growth.
2203        (k) "Host local government" means the same as that term is defined in Section
2204  63N-2-502.
2205        (l) "Hotel property" means the same as that term is defined in Section 63N-2-502.
2206        (m) "Hotel property new growth" means an amount equal to the incremental value that is
2207  no longer provided to a host local government as incremental property tax revenue.
2208        (n) "Incremental property tax revenue" means the same as that term is defined in Section
2209  63N-2-502.
2210        (o) "Incremental value" means:
2211  (i) for an authority created under Section 11-58-201, the amount calculated by
2212  multiplying:
2213  (A) the difference between the taxable value and the base taxable value of the
2214  property that is located within a project area and on which property tax
2215  differential is collected; and
2216  (B) the number that represents the percentage of the property tax differential that
2217  is paid to the authority;
2218  (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
2219  an amount calculated by multiplying:
2220  (A) the difference between the current assessed value of the property and the base
2221  taxable value; and
2222  (B) the number that represents the percentage of the property tax augmentation, as
2223  defined in Section 11-59-207, that is paid to the Point of the Mountain State
2224  Land Authority;
2225  (iii) for the Utah Fairpark Area Investment and Restoration District created in Section
2226  11-70-201, the amount calculated by multiplying:
2227  (A) the difference between the taxable value for the current year and the base
2228  taxable value of the property that is located within a project area; and
2229  (B) the number that represents the percentage of enhanced property tax revenue,
2230  as defined in Section 11-70-101;
2231  (iv) for an agency created under Section 17C-1-201.5, the amount calculated by
2232  multiplying:
2233  (A) the difference between the taxable value and the base taxable value of the
2234  property located within a project area and on which tax increment is collected;
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2235  and
2236  (B) the number that represents the adjusted tax increment from that project area
2237  that is paid to the agency;
2238  (v) for an authority created under Section 63H-1-201, the amount calculated by
2239  multiplying:
2240  (A) the difference between the taxable value and the base taxable value of the
2241  property located within a project area and on which property tax allocation is
2242  collected; and
2243  (B) the number that represents the percentage of the property tax allocation from
2244  that project area that is paid to the authority;
2245  (vi) for a housing and transit reinvestment zone or convention center reinvestment
2246  zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
2247  Reinvestment Zone Act, an amount calculated by multiplying:
2248  (A) the difference between the taxable value and the base taxable value of the
2249  property that is located within a housing and transit reinvestment zone or
2250  convention center reinvestment zone and on which tax increment is collected;
2251  and
2252  (B) the number that represents the percentage of the tax increment that is paid to
2253  the housing and transit reinvestment zone or convention center reinvestment
2254  zone;
2255  (vii) for a host local government, an amount calculated by multiplying:
2256  (A) the difference between the taxable value and the base taxable value of the
2257  hotel property on which incremental property tax revenue is collected; and
2258  (B) the number that represents the percentage of the incremental property tax
2259  revenue from that hotel property that is paid to the host local government;
2260  (viii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
2261  Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
2262  5, Home Ownership Promotion Zone, an amount calculated by multiplying:
2263  (A) the difference between the taxable value and the base taxable value of the
2264  property that is located within a home ownership promotion zone and on which
2265  tax increment is collected; and
2266  (B) the number that represents the percentage of the tax increment that is paid to
2267  the home ownership promotion zone;
2268  (ix) for a first home investment zone created in accordance with Title 63N, Chapter
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2269  3, Part 16, First Home Investment Zone Act, an amount calculated by multiplying:
2270  (A) the difference between the taxable value and the base taxable value of the
2271  property that is located within a first home investment zone and on which tax
2272  increment is collected; and
2273  (B) the number that represents the percentage of the tax increment that is paid to
2274  the first home investment zone;
2275  (x) for a major sporting event venue zone created [pursuant to] in accordance with
2276  Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
2277  calculated by multiplying:
2278  (A) the difference between the taxable value and the base taxable value of the
2279  property located within a qualified development zone for a major sporting
2280  event venue zone and upon which property tax increment is collected; and
2281  (B) the number that represents the percentage of tax increment that is paid to the
2282  major sporting event venue zone, as approved by a major sporting event venue
2283  zone committee described in Section 63N-1a-1706;[ or]
2284  (xi) for an electrical energy development zone created under Section 79-6-1104, the
2285  amount calculated by multiplying:
2286  (A) the difference between the taxable value and the base taxable value of the
2287  property that is located within the electrical energy developmental zone; and
2288  (B) the number that represents the percentage of the tax increment that is paid to a
2289  community reinvestment agency and the Electrical Energy Development
2290  Investment Fund created in Section 79-6-1105[.] ; or
2291  (xii) for a regionally significant development zone created under Section 63N-3a-203,
2292  the amount calculated by multiplying:
2293  (A) the difference between the taxable value and the base taxable value of the
2294  property that is located within the regionally significant development zone; and
2295  (B) the number that represents the percentage of the tax increment that is paid to a
2296  creating entity's agency, as established by the committee in Section 63N-3a-204.
2297        (p)(i) "Locally assessed new growth" means the greater of:
2298  (A) zero; or
2299  (B) the amount calculated by subtracting the year end taxable value of real
2300  property the county assessor assesses in accordance with Part 3, County
2301  Assessment, for the previous year, adjusted for prior year end incremental
2302  value from the taxable value of real property the county assessor assesses in
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2303  accordance with Part 3, County Assessment, for the current year, adjusted for
2304  current year incremental value.
2305  (ii) "Locally assessed new growth" does not include a change in:
2306  (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal,
2307  or another adjustment;
2308  (B) assessed value based on whether a property is allowed a residential exemption
2309  for a primary residence under Section 59-2-103;
2310  (C) assessed value based on whether a property is assessed under Part 5, Farmland
2311  Assessment Act; or
2312  (D) assessed value based on whether a property is assessed under Part 17, Urban
2313  Farming Assessment Act.
2314        (q) "Project area" means:
2315  (i) for an authority created under Section 11-58-201, the same as that term is defined
2316  in Section 11-58-102;
2317  (ii) for the Utah Fairpark Area Investment and Restoration District created in Section
2318  11-70-201, the same as that term is defined in Section 11-70-101;
2319  (iii) for an agency created under Section 17C-1-201.5, the same as that term is
2320  defined in Section 17C-1-102;
2321  (iv) for an authority created under Section 63H-1-201, the same as that term is
2322  defined in Section 63H-1-102;
2323  (v) for a housing and transit reinvestment zone or convention center reinvestment
2324  zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
2325  Reinvestment Zone Act, the same as that term is defined in Section 63N-3-602;
2326  (vi) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
2327  Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
2328  5, Home Ownership Promotion Zone, the same as that term is defined in Section
2329  10-21-101 or Section 17-80-101;
2330  (vii) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
2331  First Home Investment Zone Act, the same as that term is defined in Section
2332  63N-3-1601;[ or]
2333  (viii) for a major sporting event venue zone established under Title 63N, Chapter 3,
2334  Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
2335  as defined in Section 63N-3-1701[.] ; or
2336  (ix) for a regionally significant development zone created under Title 63N, Chapter
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2337  3a, Part 2, Creation of Regionally Significant Development Zones, the qualified
2338  development zone, as defined in Section 63N-3a-204.
2339        (r) "Project area new growth" means:
2340  (i) for an authority created under Section 11-58-201, an amount equal to the
2341  incremental value that is no longer provided to an authority as property tax
2342  differential;
2343  (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
2344  an amount equal to the incremental value that is no longer provided to the Point of
2345  the Mountain State Land Authority as property tax augmentation, as defined in
2346  Section 11-59-207;
2347  (iii) for the Utah Fairpark Area Investment and Restoration District created in Section
2348  11-70-201, an amount equal to the incremental value that is no longer provided to
2349  the Utah Fairpark Area Investment and Restoration District;
2350  (iv) for an agency created under Section 17C-1-201.5, an amount equal to the
2351  incremental value that is no longer provided to an agency as tax increment;
2352  (v) for an authority created under Section 63H-1-201, an amount equal to the
2353  incremental value that is no longer provided to an authority as property tax
2354  allocation;
2355  (vi) for a housing and transit reinvestment zone or convention center reinvestment
2356  zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
2357  Reinvestment Zone Act, an amount equal to the incremental value that is no
2358  longer provided to a housing and transit reinvestment zone or convention center
2359  reinvestment zone as tax increment;
2360  (vii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
2361  Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
2362  5, Home Ownership Promotion Zone, an amount equal to the incremental value
2363  that is no longer provided to a home ownership promotion zone as tax increment;
2364  (viii) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
2365  First Home Investment Zone Act, an amount equal to the incremental value that is
2366  no longer provided to a first home investment zone as tax increment;[ or]
2367  (ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
2368  Major Sporting Event Venue Zone Act, an amount equal to the incremental value
2369  that is no longer provided to the creating entity of a major sporting event venue
2370  zone as property tax increment[.] ; or
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2371  (x) for a regionally significant development zone created under Title 63N, Chapter
2372  3a, Part 2, Creation of Regionally Significant Development Zones, an amount
2373  equal to the incremental value that is no longer provided to the creating entity's
2374  agency for the regionally significant development zone.
2375        (s) "Project area incremental revenue" means the same as that term is defined in Section
2376  17C-1-1001.
2377        (t) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.
2378        (u) "Property tax differential" means the same as that term is defined in Sections
2379  11-58-102 and 79-6-1104.
2380        (v) "Tax increment" means:
2381  (i) for a project created under Section 17C-1-201.5, the same as that term is defined
2382  in Section 17C-1-102;
2383  (ii) for a housing and transit reinvestment zone or convention center reinvestment
2384  zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
2385  Reinvestment Zone Act, the same as the term "property tax increment" is defined
2386  in Section 63N-3-602;
2387  (iii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
2388  Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
2389  5, Home Ownership Promotion Zone, the same as that term is defined in Section
2390  10-21-101 or Section 17-80-101;
2391  (iv) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
2392  First Home Investment Zone Act, the same as that term is defined in Section
2393  63N-3-1601;[ or]
2394  (v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
2395  Major Sporting Event Venue Zone Act, property tax increment, as that term is
2396  defined in Section 63N-3-1701[.] ; or
2397  (vi) for a regionally significant development zone created under Title 63N, Chapter
2398  3a, Part 2, Creation of Regionally Significant Development Zones, the same as the
2399  term "property tax increment" is defined in Section 63N-3a-101.
2400    (2) Before June 1 of each year, each county assessor shall deliver to the county auditor and
2401        the commission the following statements:
2402        (a) a statement containing the aggregate valuation of all taxable real property a county
2403  assessor assesses in accordance with Part 3, County Assessment, for each taxing
2404  entity; and
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2405  (b) a statement containing the taxable value of all personal property a county assessor
2406  assesses in accordance with Part 3, County Assessment, from the prior year end
2407  values.
2408     (3) The county auditor shall, on or before June 8, transmit to the governing body of each
2409  taxing entity:
2410  (a) the statements described in Subsections (2)(a) and (b);
2411  (b) an estimate of the revenue from personal property;
2412  (c) the certified tax rate; and
2413  (d) all forms necessary to submit a tax levy request.
2414     (4)(a) Except as otherwise provided in this section, the certified tax rate shall be
2415  calculated by dividing the ad valorem property tax revenue that a taxing entity
2416  budgeted for the prior year by the amount calculated under Subsection (4)(b).
2417  (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
2418  calculate an amount as follows:
2419  (i) calculate for the taxing entity the difference between:
2420  (A) the aggregate taxable value of all property taxed; and
2421  (B) any adjustments for current year incremental value;
2422  (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
2423  determined by increasing or decreasing the amount calculated under Subsection
2424  (4)(b)(i) by the average of the percentage net change in the value of taxable
2425  property for the equalization period for the three calendar years immediately
2426  preceding the current calendar year;
2427  (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the
2428  product of:
2429  (A) the amount calculated under Subsection (4)(b)(ii); and
2430  (B) the percentage of property taxes collected for the five calendar years
2431  immediately preceding the current calendar year; and
2432  (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an
2433  amount determined by:
2434  (A) multiplying the percentage of property taxes collected for the five calendar
2435  years immediately preceding the current calendar year by eligible new growth;
2436  and
2437  (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the
2438  amount calculated under Subsection (4)(b)(iii).
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2439    (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated
2440        as follows:
2441        (a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
2442  tax rate is zero;
2443        (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
2444  (i) in a county of the first, second, or third class, the levy imposed for municipal-type
2445  services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
2446  to Unincorporated Areas; and
2447  (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
2448  purposes and such other levies imposed solely for the municipal-type services
2449  identified in Section 17-78-501 and Subsection 17-63-101(23);
2450        (c) for a community reinvestment agency that received all or a portion of a taxing
2451  entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
2452  Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
2453  Subsection (4) except that the commission shall treat the total revenue transferred to
2454  the community reinvestment agency as ad valorem property tax revenue that the
2455  taxing entity budgeted for the prior year; and
2456        (d) for debt service voted on by the public, the certified tax rate is the actual levy
2457  imposed by that section, except that a certified tax rate for the following levies shall
2458  be calculated in accordance with Section 59-2-913 and this section:
2459  (i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
2460  (ii) a levy to pay for the costs of state legislative mandates or judicial or
2461  administrative orders under Section 59-2-1602.
2462    (6)(a) A taxing entity may impose a judgment levy under Section 59-2-1328 or
2463        59-2-1330 at a rate that is sufficient to generate only the revenue required to satisfy
2464        one or more eligible judgments.
2465        (b) The ad valorem property tax revenue generated by a judgment levy described in
2466  Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate
2467  certified tax rate.
2468    (7)(a) For the purpose of calculating the certified tax rate, the county auditor shall use:
2469  (i) the taxable value of real property:
2470  (A) the county assessor assesses in accordance with Part 3, County Assessment;
2471  and
2472  (B) contained on the assessment roll;
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2473  (ii) the year end taxable value of personal property:
2474  (A) a county assessor assesses in accordance with Part 3, County Assessment; and
2475  (B) contained on the prior year's assessment roll; and
2476  (iii) the taxable value of real and personal property the commission assesses in
2477  accordance with Part 2, Assessment of Property.
2478  (b) For purposes of Subsection (7)(a), taxable value does not include eligible new
2479  growth.
2480     (8)(a) On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
2481  (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
2482  the county auditor of:
2483  (i) the taxing entity's intent to exceed the certified tax rate; and
2484  (ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
2485  (c) The county auditor shall notify property owners of any intent to levy a tax rate that
2486  exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
2487     (9)(a) Subject to Subsection (9)(d), the commission shall provide notice, through
2488  electronic means on or before July 31, to a taxing entity and the Revenue and
2489  Taxation Interim Committee if:
2490  (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
2491  taxable value of the real and personal property the commission assesses in
2492  accordance with Part 2, Assessment of Property, for the previous year, adjusted
2493  for prior year end incremental value; and
2494  (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year
2495  end taxable value of the real and personal property of a taxpayer the commission
2496  assesses in accordance with Part 2, Assessment of Property, for the previous year.
2497  (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
2498  subtracting the taxable value of real and personal property the commission assesses
2499  in accordance with Part 2, Assessment of Property, for the current year, adjusted for
2500  current year incremental value, from the year end taxable value of the real and
2501  personal property the commission assesses in accordance with Part 2, Assessment of
2502  Property, for the previous year, adjusted for prior year end incremental value.
2503  (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
2504  subtracting the total taxable value of real and personal property of a taxpayer the
2505  commission assesses in accordance with Part 2, Assessment of Property, for the
2506  current year, from the total year end taxable value of the real and personal property of
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2507  a taxpayer the commission assesses in accordance with Part 2, Assessment of
2508  Property, for the previous year.
2509        (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet the
2510  requirement under Subsection (9)(a)(ii).
2511  Section 36. Section 59-35-101 is enacted to read:
2512  CHAPTER 35. County Energy Excise Tax Act
2513  59-35-101 (Effective 05/06/26). Definitions.
2514       As used in this chapter:
2515    (1) "Delivered value" means the fair market value of energy delivered for use and includes:
2516        (a) the value of the energy itself; and
2517        (b) any transportation, freight, customer demand charges, services charges, or other
2518  costs typically incurred in providing energy in usable form.
2519    (2) "Energy" means gas and electricity.
2520    (3) "Energy supplier" means a person supplying energy.
2521    (4) "High-impact consumer" means:
2522        (a) a large load customer; or
2523        (b) a qualifying data center.
2524    (5) "Large load customer" means the same as that term is defined in Section 54-26-101.
2525    (6) "Qualifying data center" means the same as that term is defined in Section 59-12-102.
2526    (7) "Regional economic development authority" means:
2527        (a) the Military Installation Development Authority created in Section 63H-1-201;
2528        (b) the Point of the Mountain State Land Authority created in Section 11-59-201; and
2529        (c) the Utah Fairpark Area Investment and Restoration District created in Section
2530  11-70-201.
2531  Section 37. Section 59-35-201 is enacted to read:
2532  59-35-201 (Effective 05/06/26). County energy excise tax -- Rate -- Effective date
2533    -- Notice requirements.
2534    (1) A county may levy an excise tax for the delivered value of energy upon a high-impact
2535        consumer located:
2536        (a) within the county; and
2537        (b) on unincorporated land.
2538    (2)(a) Subject to Section 59-35-202, a county may impose the tax levied under
2539        Subsection (1) at a maximum rate of 6% of the delivered value of the energy to the
2540        high-impact consumer.
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2541  (b) A high-impact consumer that qualifies as both a large load customer and a qualifying
2542  data center is only subject to one excise tax described in this section.
2543     (3)(a) An energy supplier that delivers energy to a high-impact consumer is responsible
2544  for collecting and remitting a tax described in this section to the commission on a
2545  quarterly basis in the same manner that the energy supplier collects and remits sales
2546  and use tax.
2547  (b) For purposes of determining the point of sale for the delivered value of energy, the
2548  energy supplier shall use the location of the high-impact consumer's meter.
2549  (c) If an energy supplier passes along the cost of a tax imposed under this chapter to the
2550  high-impact consumer, the energy supplier shall indicate to the high-impact
2551  consumer that the tax is passed through by the energy supplier as a separately
2552  itemized charge.
2553     (4) A county that imposes or repeals the tax under this chapter, or modifies the rate of a tax
2554  imposed under this chapter, shall ensure county's action takes effect:
2555  (a) on the first day of a calendar quarter; and
2556  (b) after a 90-day period beginning on the date the county sends notice to the tax
2557  commission as described in Subsection (5).
2558     (5) A notice described in Subsection (4)(b) shall include:
2559  (a) that the county is imposing or repealing a tax under this chapter, or modifying the
2560  rate of a tax imposed under this chapter;
2561  (b) the tax rate, if applicable; and
2562  (c) the effective date of the tax.
2563     (6) A county excise tax imposed under this chapter is in addition to any sales and use tax
2564  imposed by the county under Title 59, Chapter 12, Sales and Use Tax Act.
2565  Section 38. Section 59-35-202 is enacted to read:
2566  59-35-202 (Effective 05/06/26). High-impact consumers in certain project areas.
2567        If a high-impact consumer is subject to a municipal energy sales and use tax, as
2568     described in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, that is
2569     levied by a regional land use economic development authority, the county may levy a tax
2570     described in Section 59-35-201 on the high-impact consumer only:
2571     (1) to the extent that the regional economic development authority does not levy the
2572  maximum rate described in Section 10-1-304; and
2573     (2) at a rate that ensures the combined rate of the tax described in this section and the
2574  municipal energy sales and use tax levied on the high-impact consumer does not exceed
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2575        6%.
2576  Section 39. Section 59-35-301 is enacted to read:
2577  59-35-301 (Effective 05/06/26). Administration, collection, and enforcement --
2578    Rulemaking.
2579    (1) The commission shall administer, collect, and enforce a tax under this chapter in
2580        accordance with Chapter 1, General Taxation Policies.
2581    (2) Subject to Section 59-1-306, the commission shall:
2582        (a) deposit 10% of the revenue the commission collects from a tax under this chapter
2583  into the State Reinvestment Restricted Account created in Section 51-9-1002; and
2584        (b) distribute 90% of the revenue to the county that levied the tax.
2585    (3) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
2586        Administrative Rulemaking Act, about the delivered value of taxable energy.
2587    (4) The rules made under Subsection (3) shall:
2588        (a) provide that an arm's length sales price for taxable energy sold or used by a
2589  high-impact consumer is the delivered value to the high-impact consumer, unless the
2590  sales price does not include some portion of the taxable energy or component of
2591  delivered value; and
2592        (b) establish one or more default methods for determining the delivered value one time
2593  per calendar year on or before January 31 for taxable energy when the commission
2594  determines that the sales price does not accurately reflect delivered value.
2595    (5) In establishing a default method under Subsection (4)(b), the commission:
2596        (a) shall take into account quantity discounts and other reductions or increases in value
2597  that are generally available in the marketplace for various grades or types of property
2598  and classes of services; and
2599        (b) may consider:
2600  (i) generally applicable tariffs for various classes of utility services approved by the
2601  Public Service Commission or other governmental entity;
2602  (ii) posted prices;
2603  (iii) spot-market prices;
2604  (iv) trade publications;
2605  (v) market data; and
2606  (vi) other information and data prescribed by the commission.
2607    The following section is affected by a coordination clause at the end of this bill.
2608  Section 40. Section 63G-2-206 is amended to read:
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2609  63G-2-206 (Effective 05/06/26). Sharing records.
2610     (1) A governmental entity may provide a record that is private, controlled, or protected to
2611  another governmental entity, a government-managed corporation, a political
2612  subdivision, the federal government, or another state if the requesting entity:
2613  (a) serves as a repository or archives for purposes of historical preservation,
2614  administrative maintenance, or destruction;
2615  (b) enforces, litigates, or investigates civil, criminal, or administrative law, and the
2616  record is necessary to a proceeding or investigation;
2617  (c) is authorized by state statute to conduct an audit and the record is needed for that
2618  purpose;
2619  (d) is one that collects information for presentence, probationary, or parole purposes; or
2620  (e)(i) is:
2621  (A) the Legislature;
2622  (B) a legislative committee;
2623  (C) a member of the Legislature; or
2624  (D) a legislative staff member acting at the request of the Legislature, a legislative
2625  committee, or a member of the Legislature; and
2626  (ii) requests the record in relation to the Legislature's duties including:
2627  (A) the preparation or review of a legislative proposal or legislation;
2628  (B) appropriations; or
2629  (C) an investigation or review conducted by the Legislature or a legislative
2630  committee.
2631     (2)(a) A governmental entity may provide a private, controlled, or protected record or
2632  record series to another governmental entity, a political subdivision, a
2633  government-managed corporation, the federal government, or another state if the
2634  requesting entity provides written assurance:
2635  (i) that the record or record series is necessary to the performance of the
2636  governmental entity's duties and functions;
2637  (ii) that the record or record series will be used for a purpose similar to the purpose
2638  for which the information in the record or record series was collected or obtained;
2639  and
2640  (iii) that the use of the record or record series produces a public benefit that is greater
2641  than or equal to the individual privacy right that protects the record or record
2642  series.
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2643        (b) A governmental entity may provide a private, controlled, or protected record or
2644  record series to a contractor or a private provider according to the requirements of
2645  Subsection [(6)(b)] (7)(b).
2646    (3)(a) A governmental entity shall provide a private, controlled, or protected record to
2647        another governmental entity, a political subdivision, a government-managed
2648        corporation, the federal government, or another state if the requesting entity:
2649  (i) is entitled by law to inspect the record;
2650  (ii) is required to inspect the record as a condition of participating in a state or federal
2651  program or for receiving state or federal funds; or
2652  (iii) is an entity described in Subsection (1)(a), (b), (c), (d), or (e).
2653        (b) Subsection (3)(a)(iii) applies only if the record is a record described in Subsection
2654  63G-2-305(4).
2655    (4) A record that is classified as protected as economic development information under
2656        Subsection 63G-2-305(2)(b):
2657        (a) may be provided by the governmental entity that possesses the record and classified
2658  the record as protected to another governmental entity in lieu of the second
2659  governmental entity entering into a nondisclosure agreement with the person that
2660  requested the record be treated as protected under Section 63G-2-309;
2661        (b) may be shared with the following entities when the entities are considering an
2662  economic development project:
2663  (i) the Governor's Office of Economic Opportunity;
2664  (ii) the Utah Inland Port Authority created in Section 11-58-201;
2665  (iii) the Military Installation Development Authority created in Section 63H-1-201;
2666  (iv) the Point of the Mountain State Land Authority created in Section 11-59-201;
2667  (v) the Utah Fairpark Area Investment and Restoration District created in Section
2668  11-70-201;
2669  (vi) a county where the economic development opportunity may take place or be
2670  sited; and
2671  (vii) a municipality where the economic development opportunity may take place or
2672  be sited;
2673        (c) remains protected when shared as described in this Subsection (4); and
2674        (d) shall be treated as a protected record by any governmental entity that receives the
2675  record in accordance with this Subsection (4).
2676    (5) Before disclosing a record or record series under this section to another governmental
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2677  entity, another state, the United States, a foreign government, or to a contractor or
2678  private provider, the originating governmental entity shall:
2679  (a) inform the recipient of the record's classification and the accompanying restrictions
2680  on access; and
2681  (b) if the recipient is not a governmental entity to which this chapter applies, obtain the
2682  recipient's written agreement which may be by mechanical or electronic transmission
2683  that it will abide by those restrictions on access unless a statute, federal regulation, or
2684  interstate agreement otherwise governs the sharing of the record or record series.
2685     [(5)] (6) A governmental entity may disclose a record to another state, the United States, or
2686  a foreign government for the reasons listed in Subsections (1) and (2) without complying
2687  with the procedures of Subsection (2) or [(4)] (5) if disclosure is authorized by executive
2688  agreement, treaty, federal statute, compact, federal regulation, or state statute.
2689     [(6)] (7)(a) Subject to Subsections [(6)(b)] (7)(b) and (c), an entity receiving a record
2690  under this section is subject to the same restrictions on disclosure of the record as the
2691  originating entity.
2692  (b) A contractor or a private provider may receive information under this section only if:
2693  (i) the contractor or private provider's use of the record or record series produces a
2694  public benefit that is greater than or equal to the individual privacy right that
2695  protects the record or record series;
2696  (ii) the record or record series it requests:
2697  (A) is necessary for the performance of a contract with a governmental entity;
2698  (B) will only be used for the performance of the contract with the governmental
2699  entity;
2700  (C) will not be disclosed to any other person; and
2701  (D) will not be used for advertising or solicitation purposes; and
2702  (iii) the contractor or private provider gives written assurance to the governmental
2703  entity that is providing the record or record series that [it] the contractor or private
2704  provider will adhere to the restrictions of this Subsection [(6)(b)] (7)(b).
2705  (c) The classification of a record already held by a governmental entity and the
2706  applicable restrictions on disclosure of that record are not affected by the
2707  governmental entity's receipt under this section of a record with a different
2708  classification that contains information that is also included in the previously held
2709  record.
2710     [(7)] (8) Notwithstanding any other provision of this section, if a more specific court rule or
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2711        order, state statute, federal statute, or federal regulation prohibits or requires sharing
2712        information, that rule, order, statute, or federal regulation controls.
2713    [(8)] (9)(a) The following records may not be shared under this section:
2714  (i) records held by the Division of Oil, Gas, and Mining that pertain to any person
2715  and that are gathered under authority of Title 40, Chapter 6, Board and Division of
2716  Oil, Gas, and Mining;
2717  (ii) except as provided in Subsection [(8)(b)] (9)(b), records of publicly funded
2718  libraries as described in Subsection 63G-2-302(1)(c); and
2719  (iii) a record described in Section 63G-12-210.
2720        (b) A publicly funded library may share a record that is a private record under
2721  Subsection 63G-2-302(1)(c) with a law enforcement agency, as defined in Section
2722  53-1-102, if:
2723  (i) the record is a video surveillance recording of the library premises; and
2724  (ii) the law enforcement agency certifies in writing that:
2725  (A) the law enforcement agency believes that the record will provide important
2726  information for a pending investigation into criminal or potentially criminal
2727  behavior; and
2728  (B) the law enforcement agency's receipt of the record will assist the agency to
2729  prevent imminent harm to an individual or imminent and substantial damage to
2730  property.
2731    [(9)] (10) Records that may evidence or relate to a violation of law may be disclosed to a
2732        government prosecutor, peace officer, or auditor.
2733  Section 41. Section 63G-2-305 is amended to read:
2734  63G-2-305 (Effective 05/06/26). Protected records.
2735       The following records are protected if properly classified by a governmental entity:
2736    (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret [has
2737        provided] provides the governmental entity with the information specified in Section
2738        63G-2-309;
2739    (2)(a) commercial information or nonindividual financial information obtained from a
2740        person if:
2741  [(a)] (i) disclosure of the information could reasonably be expected to result in unfair
2742  competitive injury to the person submitting the information or would impair the
2743  ability of the governmental entity to obtain necessary information in the future;
2744  [(b)] (ii) the person submitting the information has a greater interest in prohibiting
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       H.B. 507  Enrolled Copy
2745  access than the public in obtaining access; and
2746  [(c)] (iii) the person submitting the information [has provided] provides the
2747  governmental entity with the information specified in Section 63G-2-309; or
2748  (b) confidential economic development information:
2749  (i)(A) if the information is related to an economic development opportunity;
2750  (B) that a person provides to a governmental entity involved with recruiting or
2751  negotiating with the person to expand the person's existing business within the
2752  state or bring a new business to the state; and
2753  (C) if the person submitting the information provides the governmental entity with
2754  the information specified in Section 63G-2-309; or
2755  (ii) that takes the form of a nondisclosure agreement between a person and a
2756  governmental entity exploring an economic development opportunity;
2757     (3) commercial or financial information acquired or prepared by a governmental entity to
2758  the extent that disclosure would lead to financial speculations in currencies, securities, or
2759  commodities that will interfere with a planned transaction by the governmental entity or
2760  cause substantial financial injury to the governmental entity or state economy;
2761     (4) records, the disclosure of which could cause commercial injury to, or confer a
2762  competitive advantage upon a potential or actual competitor of, a commercial project
2763  entity as defined in Subsection 11-13-103(4);
2764     (5) test questions and answers to be used in future license, certification, registration,
2765  employment, or academic examinations;
2766     (6) records, the disclosure of which would impair governmental procurement proceedings
2767  or give an unfair advantage to any person proposing to enter into a contract or agreement
2768  with a governmental entity, except, subject to Subsections (1) and (2), that this
2769  Subsection (6) does not restrict the right of a person to have access to, after the contract
2770  or grant has been awarded and signed by all parties:
2771  (a) a bid, proposal, application, or other information submitted to or by a governmental
2772  entity in response to:
2773  (i) an invitation for bids;
2774  (ii) a request for proposals;
2775  (iii) a request for quotes;
2776  (iv) a grant; or
2777  (v) other similar document; or
2778  (b) an unsolicited proposal, as defined in Section 63G-6a-712;
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2779    (7) information submitted to or by a governmental entity in response to a request for
2780        information, except, subject to Subsections (1) and (2), that this Subsection (7) does not
2781        restrict the right of a person to have access to the information, after:
2782        (a) a contract directly relating to the subject of the request for information has been
2783  awarded and signed by all parties; or
2784        (b)(i) a final determination is made not to enter into a contract that relates to the
2785  subject of the request for information; and
2786  (ii) at least two years have passed after the day on which the request for information
2787  is issued;
2788    (8) records that would identify real property or the appraisal or estimated value of real or
2789        personal property, including intellectual property, under consideration for public
2790        acquisition before any rights to the property are acquired unless:
2791        (a) public interest in obtaining access to the information is greater than or equal to the
2792  governmental entity's need to acquire the property on the best terms possible;
2793        (b) the information has already been disclosed to persons not employed by or under a
2794  duty of confidentiality to the entity;
2795        (c) in the case of records that would identify property, potential sellers of the described
2796  property have already learned of the governmental entity's plans to acquire the
2797  property;
2798        (d) in the case of records that would identify the appraisal or estimated value of
2799  property, the potential sellers have already learned of the governmental entity's
2800  estimated value of the property; or
2801        (e) the property under consideration for public acquisition is a single family residence
2802  and the governmental entity seeking to acquire the property has initiated negotiations
2803  to acquire the property as required under Section 78B-6-505;
2804    (9) records prepared in contemplation of sale, exchange, lease, rental, or other compensated
2805        transaction of real or personal property including intellectual property, which, if
2806        disclosed prior to completion of the transaction, would reveal the appraisal or estimated
2807        value of the subject property, unless:
2808        (a) the public interest in access is greater than or equal to the interests in restricting
2809  access, including the governmental entity's interest in maximizing the financial
2810  benefit of the transaction; or
2811        (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
2812  the value of the subject property have already been disclosed to persons not
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2813  employed by or under a duty of confidentiality to the entity;
2814     (10) records created or maintained for civil, criminal, or administrative enforcement
2815  purposes or audit purposes, or for discipline, licensing, certification, or registration
2816  purposes, if release of the records:
2817  (a) reasonably could be expected to interfere with investigations undertaken for
2818  enforcement, discipline, licensing, certification, or registration purposes;
2819  (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
2820  proceedings;
2821  (c) would create a danger of depriving a person of a right to a fair trial or impartial
2822  hearing;
2823  (d) reasonably could be expected to disclose the identity of a source who is not generally
2824  known outside of government and, in the case of a record compiled in the course of
2825  an investigation, disclose information furnished by a source not generally known
2826  outside of government if disclosure would compromise the source; or
2827  (e) reasonably could be expected to disclose investigative or audit techniques,
2828  procedures, policies, or orders not generally known outside of government if
2829  disclosure would interfere with enforcement or audit efforts;
2830     (11) records the disclosure of which would jeopardize the life or safety of an individual;
2831     (12) records the disclosure of which would jeopardize the security of governmental
2832  property, governmental programs, or governmental recordkeeping systems from
2833  damage, theft, or other appropriation or use contrary to law or public policy;
2834     (13) records that, if disclosed, would jeopardize the security or safety of a correctional
2835  facility, or records relating to incarceration, treatment, probation, or parole, that would
2836  interfere with the control and supervision of an offender's incarceration, treatment,
2837  probation, or parole;
2838     (14) records that, if disclosed, would reveal recommendations made to the Board of
2839  Pardons and Parole by an employee of or contractor for the Department of Corrections,
2840  the Board of Pardons and Parole, or the Department of Health and Human Services that
2841  are based on the employee's or contractor's supervision, diagnosis, or treatment of any
2842  person within the board's jurisdiction;
2843     (15) records and audit workpapers that identify audit, collection, and operational procedures
2844  and methods used by the State Tax Commission, if disclosure would interfere with
2845  audits or collections;
2846     (16) records of a governmental audit agency relating to an ongoing or planned audit until
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2847        the final audit is released;
2848    (17) records that are subject to the attorney client privilege;
2849    (18) records prepared for or by an attorney, consultant, surety, indemnitor, insurer,
2850        employee, or agent of a governmental entity for, or in anticipation of, litigation or a
2851        judicial, quasi-judicial, or administrative proceeding;
2852    (19)(a)(i) personal files of a state legislator, including personal correspondence to or
2853        from a member of the Legislature; and
2854  (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
2855  legislative action or policy may not be classified as protected under this section;
2856  and
2857        (b)(i) an internal communication that is part of the deliberative process in connection
2858  with the preparation of legislation between:
2859  (A) members of a legislative body;
2860  (B) a member of a legislative body and a member of the legislative body's staff; or
2861  (C) members of a legislative body's staff; and
2862  (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
2863  legislative action or policy may not be classified as protected under this section;
2864    (20)(a) records in the custody or control of the Office of Legislative Research and
2865        General Counsel, that, if disclosed, would reveal a particular legislator's
2866        contemplated legislation or contemplated course of action before the legislator has
2867        elected to support the legislation or course of action, or made the legislation or course
2868        of action public; and
2869        (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
2870  Office of Legislative Research and General Counsel is a public document unless a
2871  legislator asks that the records requesting the legislation be maintained as protected
2872  records until such time as the legislator elects to make the legislation or course of
2873  action public;
2874    (21) a research request from a legislator to a legislative staff member and research findings
2875        prepared in response to the request;
2876    (22) drafts, unless otherwise classified as public;
2877    (23) records concerning a governmental entity's strategy about:
2878        (a) collective bargaining; or
2879        (b) imminent or pending litigation;
2880    (24) records of investigations of loss occurrences and analyses of loss occurrences that may
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2881  be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
2882  Uninsured Employers' Fund, or similar divisions in other governmental entities;
2883     (25) records, other than personnel evaluations, that contain a personal recommendation
2884  concerning an individual if disclosure would constitute a clearly unwarranted invasion
2885  of personal privacy, or disclosure is not in the public interest;
2886     (26) records that reveal the location of historic, prehistoric, paleontological, or biological
2887  resources that if known would jeopardize the security of those resources or of valuable
2888  historic, scientific, educational, or cultural information;
2889     (27) records of independent state agencies if the disclosure of the records would conflict
2890  with the fiduciary obligations of the agency;
2891     (28) records of an institution of higher education defined in Section 53H-1-101 regarding
2892  tenure evaluations, appointments, applications for admissions, retention decisions, and
2893  promotions, which could be properly discussed in a meeting closed in accordance with
2894  Title 52, Chapter 4, Open and Public Meetings Act, provided that records of the final
2895  decisions about tenure, appointments, retention, promotions, or those students admitted,
2896  may not be classified as protected under this section;
2897     (29) records of the governor's office, including budget recommendations, legislative
2898  proposals, and policy statements, that if disclosed would reveal the governor's
2899  contemplated policies or contemplated courses of action before the governor has
2900  implemented or rejected those policies or courses of action or made them public;
2901     (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
2902  revenue estimates, and fiscal notes of proposed legislation before issuance of the final
2903  recommendations in these areas;
2904     (31) records provided by the United States or by a government entity outside the state that
2905  are given to the governmental entity with a requirement that they be managed as
2906  protected records if the providing entity certifies that the record would not be subject to
2907  public disclosure if retained by it;
2908     (32) transcripts, minutes, recordings, or reports of the closed portion of a meeting of a
2909  public body except as provided in Section 52-4-206;
2910     (33) records that would reveal the contents of settlement negotiations but not including final
2911  settlements or empirical data to the extent that they are not otherwise exempt from
2912  disclosure;
2913     (34) memoranda prepared by staff and used in the decision-making process by an
2914  administrative law judge, a member of the Board of Pardons and Parole, or a member of
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2915        any other body charged by law with performing a quasi-judicial function;
2916    (35) records that would reveal negotiations regarding assistance or incentives offered by or
2917        requested from a governmental entity for the purpose of encouraging a person to expand
2918        or locate a business in Utah, but only if disclosure would result in actual economic harm
2919        to the person or place the governmental entity at a competitive disadvantage, but this
2920        section may not be used to restrict access to a record evidencing a final contract;
2921    (36) materials to which access must be limited for purposes of securing or maintaining the
2922        governmental entity's proprietary protection of intellectual property rights including
2923        patents, copyrights, and trade secrets;
2924    (37) the name of a donor or a prospective donor to a governmental entity, including an
2925        institution of higher education defined in Section 53H-1-101, and other information
2926        concerning the donation that could reasonably be expected to reveal the identity of the
2927        donor, provided that:
2928        (a) the donor requests anonymity in writing;
2929        (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
2930  classified protected by the governmental entity under this Subsection (37); and
2931        (c) except for an institution of higher education defined in Section 53H-1-101, the
2932  governmental unit to which the donation is made is primarily engaged in educational,
2933  charitable, or artistic endeavors, and has no regulatory or legislative authority over
2934  the donor, a member of the donor's immediate family, or any entity owned or
2935  controlled by the donor or the donor's immediate family;
2936    (38) accident reports, except as provided in Sections 41-6a-404, 41-12a-202, and 73-18-13;
2937    (39) a notification of workers' compensation insurance coverage described in Section
2938        34A-2-205;
2939    (40) subject to Subsections (40)(g) and (h), the following records of an institution of higher
2940        education defined in Section 53H-1-101, which have been developed, discovered,
2941        disclosed to, or received by or on behalf of faculty, staff, employees, or students of the
2942        institution:
2943        (a) unpublished lecture notes;
2944        (b) unpublished notes, data, and information:
2945  (i) relating to research; and
2946  (ii) of:
2947  (A) the institution of higher education defined in Section 53H-1-101; or
2948  (B) a sponsor of sponsored research;
                                                      - 87 -
       H.B. 507  Enrolled Copy
2949  (c) unpublished manuscripts;
2950  (d) creative works in process;
2951  (e) scholarly correspondence; [and]
2952  (f) confidential information contained in research proposals;
2953  (g) this Subsection (40) may not be construed to prohibit disclosure of public
2954  information required pursuant to Subsection 53H-14-202(2)(a) or (b); and
2955  (h) this Subsection (40) may not be construed to affect the ownership of a record;
2956     (41)(a) records in the custody or control of the Office of the Legislative Auditor General
2957  that would reveal the name of a particular legislator who requests a legislative audit
2958  prior to the date that audit is completed and made public; and
2959  (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
2960  Office of the Legislative Auditor General is a public document unless the legislator
2961  asks that the records in the custody or control of the Office of the Legislative Auditor
2962  General that would reveal the name of a particular legislator who requests a
2963  legislative audit be maintained as protected records until the audit is completed and
2964  made public;
2965     (42) records that provide detail as to the location of an explosive, including a map or other
2966  document that indicates the location of:
2967  (a) a production facility; or
2968  (b) a magazine;
2969     (43) information contained in the statewide database of the Division of Aging and Adult
2970  Services created by Section 26B-6-210;
2971     (44) information contained in the Licensing Information System described in Title 80,
2972  Chapter 2, Child Welfare Services;
2973     (45) information regarding National Guard operations or activities in support of the
2974  National Guard's federal mission;
2975     (46) records provided by any pawn or secondhand business to a law enforcement agency or
2976  to the central database in compliance with Title 13, Chapter 32a, Pawnshop, Secondhand
2977  Merchandise, and Catalytic Converter Transaction Information Act;
2978     (47) information regarding food security, risk, and vulnerability assessments performed by
2979  the Department of Agriculture and Food;
2980     (48) except to the extent that the record is exempt from this chapter [pursuant to] in
2981  accordance with Section 63G-2-106, records related to an emergency plan or program, a
2982  copy of which is provided to or prepared or maintained by the Division of Emergency
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       Enrolled Copy  H.B. 507
2983        Management, and the disclosure of which would jeopardize:
2984        (a) the safety of the general public; or
2985        (b) the security of:
2986  (i) governmental property;
2987  (ii) governmental programs; or
2988  (iii) the property of a private person who provides the Division of Emergency
2989  Management information;
2990    (49) records of the Department of Agriculture and Food that provides for the identification,
2991        tracing, or control of livestock diseases, including any program established under Title
2992        4, Chapter 24, Utah Livestock Brand and Anti-Theft Act, or Title 4, Chapter 31, Control
2993        of Animal Disease;
2994    (50) as provided in Section 26B-2-709:
2995        (a) information or records held by the Department of Health and Human Services related
2996  to a complaint regarding a provider, program, or facility which the department is
2997  unable to substantiate; and
2998        (b) information or records related to a complaint received by the Department of Health
2999  and Human Services from an anonymous complainant regarding a provider, program,
3000  or facility;
3001    (51) unless otherwise classified as public under Section 63G-2-301 and except as provided
3002        under Section 41-1a-116, an individual's home address, home telephone number, or
3003        personal mobile phone number, if:
3004        (a) the individual is required to provide the information in order to comply with a law,
3005  ordinance, rule, or order of a government entity; and
3006        (b) the subject of the record has a reasonable expectation that this information will be
3007  kept confidential due to:
3008  (i) the nature of the law, ordinance, rule, or order; and
3009  (ii) the individual complying with the law, ordinance, rule, or order;
3010    (52) the portion of the following documents that contains a candidate's residential or
3011        mailing address, if the candidate provides to the filing officer another address or phone
3012        number where the candidate may be contacted:
3013        (a) a declaration of candidacy, a nomination petition, or a certificate of nomination,
3014  described in Section 20A-9-201, 20A-9-202, 20A-9-203, 20A-9-404, 20A-9-405,
3015  20A-9-408, 20A-9-408.5, 20A-9-502, or 20A-9-601;
3016        (b) an affidavit of impecuniosity, described in Section 20A-9-201; or
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       H.B. 507  Enrolled Copy
3017  (c) a notice of intent to gather signatures for candidacy, described in Section 20A-9-408;
3018     (53) the name, home address, work addresses, and telephone numbers of an individual that
3019  is engaged in, or that provides goods or services for, medical or scientific research that is:
3020  (a) conducted within the state system of higher education, as described in Section
3021  53H-1-102; and
3022  (b) conducted using animals;
3023     (54) in accordance with Section 78A-12-203, any record of the Judicial Performance
3024  Evaluation Commission concerning an individual commissioner's vote, in relation to
3025  whether a judge meets or exceeds minimum performance standards under Subsection
3026  78A-12-203(4), and information disclosed under Subsection 78A-12-203(5)(e);
3027     (55) information collected and a report prepared by the Judicial Performance Evaluation
3028  Commission concerning a judge, unless Section 20A-7-702 or Title 78A, Chapter 12,
3029  Judicial Performance Evaluation Commission Act, requires disclosure of, or makes
3030  public, the information or report;
3031     (56) records provided or received by the Public Lands Policy Coordinating Office in
3032  furtherance of any contract or other agreement made in accordance with Section
3033  63L-11-202;
3034     (57) information requested by and provided to the 911 Division under Section 63H-7a-302;
3035     (58) in accordance with Section 73-10-33:
3036  (a) a management plan for a water conveyance facility in the possession of the Division
3037  of Water Resources or the Board of Water Resources; or
3038  (b) an outline of an emergency response plan in possession of the state or a county or
3039  municipality;
3040     (59) the following records in the custody or control of the Office of Inspector General of
3041  Medicaid Services, created in Section 63A-13-201:
3042  (a) records that would disclose information relating to allegations of personal
3043  misconduct, gross mismanagement, or illegal activity of a person if the information
3044  or allegation cannot be corroborated by the Office of Inspector General of Medicaid
3045  Services through other documents or evidence, and the records relating to the
3046  allegation are not relied upon by the Office of Inspector General of Medicaid
3047  Services in preparing a final investigation report or final audit report;
3048  (b) records and audit workpapers to the extent they would disclose the identity of a
3049  person who, during the course of an investigation or audit, communicated the
3050  existence of any Medicaid fraud, waste, or abuse, or a violation or suspected
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3051  violation of a law, rule, or regulation adopted under the laws of this state, a political
3052  subdivision of the state, or any recognized entity of the United States, if the
3053  information was disclosed on the condition that the identity of the person be
3054  protected;
3055        (c) before the time that an investigation or audit is completed and the final investigation
3056  or final audit report is released, records or drafts circulated to a person who is not an
3057  employee or head of a governmental entity for the person's response or information;
3058        (d) records that would disclose an outline or part of any investigation, audit survey plan,
3059  or audit program; or
3060        (e) requests for an investigation or audit, if disclosure would risk circumvention of an
3061  investigation or audit;
3062    (60) records that reveal methods used by the Office of Inspector General of Medicaid
3063        Services, the fraud unit, or the Department of Health and Human Services, to discover
3064        Medicaid fraud, waste, or abuse;
3065    (61) information provided to the Department of Health and Human Services or the Division
3066        of Professional Licensing under Subsections 58-67-304(3) and (4) and Subsections
3067        58-68-304(3) and (4);
3068    (62) a record described in Section 63G-12-210;
3069    (63) captured plate data that is obtained through an automatic license plate reader system
3070        used by a governmental entity as authorized in Section 41-6a-2003;
3071    (64) an audio or video recording created by a body-worn camera, as that term is defined in
3072        Section 77-7a-103, that records sound or images inside a hospital or health care facility
3073        as those terms are defined in Section 78B-3-403, inside a clinic of a health care provider,
3074        as that term is defined in Section 78B-3-403, or inside a human [service] services
3075        program as that term is defined in Section 26B-2-101, except for recordings that:
3076        (a) depict the commission of an alleged crime;
3077        (b) record any encounter between a law enforcement officer and a person that results in
3078  death or bodily injury, or includes an instance when an officer fires a weapon;
3079        (c) record any encounter that is the subject of a complaint or a legal proceeding against a
3080  law enforcement officer or law enforcement agency;
3081        (d) contain an officer involved critical incident as defined in Subsection 76-2-408(1)(f);
3082  or
3083        (e) have been requested for reclassification as a public record by a subject or authorized
3084  agent of a subject featured in the recording;
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       H.B. 507  Enrolled Copy
3085     (65) a record pertaining to the search process for a president of an institution of higher
3086  education described in Section 53H-3-302;
3087     (66) an audio recording that is:
3088  (a) produced by an audio recording device that is used in conjunction with a device or
3089  piece of equipment designed or intended for resuscitating an individual or for treating
3090  an individual with a life-threatening condition;
3091  (b) produced during an emergency event when an individual employed to provide law
3092  enforcement, fire protection, paramedic, emergency medical, or other first responder
3093  service:
3094  (i) is responding to an individual needing resuscitation or with a life-threatening
3095  condition; and
3096  (ii) uses a device or piece of equipment designed or intended for resuscitating an
3097  individual or for treating an individual with a life-threatening condition; and
3098  (c) intended and used for purposes of training emergency responders how to improve
3099  their response to an emergency situation;
3100     (67) records submitted by or prepared in relation to an applicant seeking a recommendation
3101  by the Research and General Counsel Subcommittee, the Budget Subcommittee, or the
3102  Legislative Audit Subcommittee, established under Section 36-12-8, for an employment
3103  position with the Legislature;
3104     (68) work papers as defined in Section 31A-2-204;
3105     (69) a record made available to Adult Protective Services or a law enforcement agency
3106  under Section 61-1-206;
3107     (70) a record submitted to the Insurance Department in accordance with Section
3108  31A-37-201;
3109     (71) a record described in Section 31A-37-503;
3110     (72) any record created by the Division of Professional Licensing as a result of Subsection
3111  58-37f-304(5) or 58-37f-702(2)(a)(ii);
3112     (73) a record described in Section 72-16-306 that relates to the reporting of an injury
3113  involving an amusement ride;
3114     (74) except as provided in Subsection 63G-2-305.5(1), the signature of an individual on a
3115  political petition, or on a request to withdraw a signature from a political petition,
3116  including a petition or request described in the following titles:
3117  (a) Title 10, Utah Municipal Code;
3118  (b) Title 17, Counties;
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       Enrolled Copy  H.B. 507
3119        (c) Title 17B, Limited Purpose Local Government Entities - Special Districts;
3120        (d) Title 17D, Limited Purpose Local Government Entities - Other Entities; and
3121        (e) Title 20A, Election Code;
3122    (75) except as provided in Subsection 63G-2-305.5(2), the signature of an individual in a
3123        voter registration record;
3124    (76) except as provided in Subsection 63G-2-305.5(3), any signature, other than a signature
3125        described in Subsection (74) or (75), in the custody of the lieutenant governor or a local
3126        political subdivision collected or held under, or in relation to, Title 20A, Election Code;
3127    (77) a Form I-918 Supplement B certification as described in Title 77, Chapter 38, Part 5,
3128        Victims Guidelines for Prosecutors Act;
3129    (78) a record submitted to the Insurance Department under Section 31A-48-103;
3130    (79) personal information, as defined in Section 63G-26-102, to the extent disclosure is
3131        prohibited under Section 63G-26-103;
3132    (80) an image taken of an individual during the process of booking the individual into jail,
3133        unless:
3134        (a) the individual is convicted of a criminal offense based upon the conduct for which
3135  the individual was incarcerated at the time the image was taken;
3136        (b) a law enforcement agency releases or disseminates the image:
3137  (i) after determining that the individual is a fugitive or an imminent threat to an
3138  individual or to public safety and releasing or disseminating the image will assist
3139  in apprehending the individual or reducing or eliminating the threat; or
3140  (ii) to a potential witness or other individual with direct knowledge of events relevant
3141  to a criminal investigation or criminal proceeding for the purpose of identifying or
3142  locating an individual in connection with the criminal investigation or criminal
3143  proceeding;
3144        (c) a judge orders the release or dissemination of the image based on a finding that the
3145  release or dissemination is in furtherance of a legitimate law enforcement interest; or
3146        (d) the image is displayed to a person who is permitted to view the image under Section
3147  17-72-802;
3148    (81) a record:
3149        (a) concerning an interstate claim to the use of waters in the Colorado River system;
3150        (b) relating to a judicial proceeding, administrative proceeding, or negotiation with a
3151  representative from another state or the federal government as provided in Section
3152  63M-14-205; and
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       H.B. 507  Enrolled Copy
3153  (c) the disclosure of which would:
3154  (i) reveal a legal strategy relating to the state's claim to the use of the water in the
3155  Colorado River system;
3156  (ii) harm the ability of the Colorado River Authority of Utah or river commissioner to
3157  negotiate the best terms and conditions regarding the use of water in the Colorado
3158  River system; or
3159  (iii) give an advantage to another state or to the federal government in negotiations
3160  regarding the use of water in the Colorado River system;
3161     (82) any part of an application described in Section 63N-16-201 that the Governor's Office
3162  of Economic Opportunity determines is nonpublic, confidential information that if
3163  disclosed would result in actual economic harm to the applicant, but this Subsection (82)
3164  may not be used to restrict access to a record evidencing a final contract or approval
3165  decision;
3166     (83) the following records of a drinking water or wastewater facility:
3167  (a) an engineering or architectural drawing of the drinking water or wastewater facility;
3168  and
3169  (b) except as provided in Section 63G-2-106, a record detailing tools or processes the
3170  drinking water or wastewater facility uses to secure, or prohibit access to, the records
3171  described in Subsection (83)(a);
3172     (84) a statement that an employee of a governmental entity provides to the governmental
3173  entity as part of the governmental entity's personnel or administrative investigation into
3174  potential misconduct involving the employee if the governmental entity:
3175  (a) requires the statement under threat of employment disciplinary action, including
3176  possible termination of employment, for the employee's refusal to provide the
3177  statement; and
3178  (b) provides the employee assurance that the statement cannot be used against the
3179  employee in any criminal proceeding;
3180     (85) any part of an application for a Utah Fits All Scholarship account described in Section
3181  53F-6-402 or other information identifying a scholarship student as defined in Section
3182  53F-6-401;
3183     (86) a record:
3184  (a) concerning a claim to the use of waters in the Great Salt Lake;
3185  (b) relating to a judicial proceeding, administrative proceeding, or negotiation with a
3186  person concerning the claim, including a representative from another state or the
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       Enrolled Copy  H.B. 507
3187  federal government; and
3188        (c) the disclosure of which would:
3189  (i) reveal a legal strategy relating to the state's claim to the use of the water in the
3190  Great Salt Lake;
3191  (ii) harm the ability of the Great Salt Lake commissioner to negotiate the best terms
3192  and conditions regarding the use of water in the Great Salt Lake; or
3193  (iii) give an advantage to another person including another state or to the federal
3194  government in negotiations regarding the use of water in the Great Salt Lake;
3195    (87) a consumer complaint described in Section 13-2-11, unless the consumer complaint is
3196        reclassified as public as described in Subsection [13-2-11(4)] 13-2-11(3);
3197    (88) a record of the Utah water agent, appointed under Section 73-10g-702:
3198        (a) concerning a claim to the use of waters;
3199        (b) relating to a judicial proceeding, administrative proceeding, or negotiation with a
3200  representative from another state, a tribe, the federal government, or other
3201  government entity as provided in Title 73, Chapter 10g, Part 7, Utah Water Agent;
3202  and
3203        (c) the disclosure of which would:
3204  (i) reveal a legal strategy relating to the state's claim to the use of the water;
3205  (ii) harm the ability of the Utah water agent to negotiate the best terms and conditions
3206  regarding the use of water; or
3207  (iii) give an advantage to another state, a tribe, the federal government, or other
3208  government entity in negotiations regarding the use of water; and
3209    (89) a record created or maintained for an investigation of the Prosecutor Conduct
3210        Commission, created in Section 63M-7-1102, that contains any personal identifying
3211        information of a prosecuting attorney, including:
3212        (a) a complaint, or a document that is submitted or created for a complaint, received by
3213  the Prosecutor Conduct Commission; or
3214        (b) a finding by the Prosecutor Conduct Commission.
3215  Section 42. Section 63G-2-309 is amended to read:
3216  63G-2-309 (Effective 05/06/26). Confidentiality claims.
3217    (1)(a)(i) Any person who provides to a governmental entity a record that the person
3218        believes should be protected under Subsection 63G-2-305(1) or (2) or both
3219        Subsections 63G-2-305(1) and (2) shall provide with the record, or within a
3220        reasonable amount of time after providing the record:
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       H.B. 507  Enrolled Copy
3221  (A) a written claim of business confidentiality; and
3222  (B) a concise statement of reasons supporting the claim of business confidentiality.
3223  (ii) Any of the following who provides to an institution of higher education defined
3224  in Section 53H-1-101 a record that the person or governmental entity believes
3225  should be protected under [Subsection 63G-2-305(40)(a)(ii) or (vi) or both
3226  Subsections 63G-2-305(40)(a)(ii) and (vi)] Subsection 63G-2-305(40) shall
3227  provide the institution within the state system of higher education a written claim
3228  of business confidentiality in accordance with Section 53H-14-204:
3229  (A) a person;
3230  (B) a federal governmental entity;
3231  (C) a state governmental entity; or
3232  (D) a local governmental entity.
3233  (b) A person or governmental entity who complies with this Subsection (1) shall be
3234  notified by the governmental entity to whom the request for a record is made if:
3235  (i) a record claimed to be protected under one of the following is classified public:
3236  (A) Subsection 63G-2-305(1);
3237  (B) Subsection 63G-2-305(2);
3238  (C) Subsection [63G-2-305(40)(a)(ii)] 63G-2-305(40); or
3239  [(D) Subsection 63G-2-305(40)(a)(vi); or]
3240  [(E)] (D) a combination of the provisions described in Subsections (1)(b)(i)(A)
3241  through [(D)] (C); or
3242  (ii) the governmental entity to whom the request for a record is made determines that
3243  the record claimed to be protected under a provision listed in Subsection (1)(b)(i)
3244  should be released after balancing interests under Subsection 63G-2-201(5)(b) or
3245  63G-2-401(6).
3246  (c) A person who makes a claim of business confidentiality under this Subsection (1)
3247  shall protect, defend, and indemnify the governmental entity that retains the record,
3248  and all staff and employees of the governmental entity from and against any claims,
3249  liability, or damages resulting from or arising from a denial of access to the record as
3250  a protected record based on the claim of business confidentiality.
3251     (2)(a) Except as provided in Subsection (2)(b) or by court order, the governmental entity
3252  to whom the request for a record is made may not disclose a record claimed to be
3253  protected under a provision listed in Subsection (1)(b)(i) but which the governmental
3254  entity or the director of the Government Records Office determines should be
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       Enrolled Copy  H.B. 507
3255        disclosed until the period in which to bring an appeal expires or the end of the
3256        appeals process, including judicial appeal.
3257        (b) Subsection (2)(a) does not apply where the claimant, after notice, has waived the
3258  claim by not appealing or intervening before the director of the Government Records
3259  Office.
3260    (3) Disclosure or acquisition of information under this chapter does not constitute
3261        misappropriation under Subsection 13-24-2(2).
3262  Section 43. Section 63G-2-802 is amended to read:
3263  63G-2-802 (Effective 05/06/26). Injunction -- Attorney fees and costs.
3264    (1) As used in this section, "defending party" means:
3265        (a) a governmental entity or political subdivision:
3266  (i) whose access denial is the subject of a petition for judicial review under Section
3267  63G-2-404; and
3268  (ii) that defends the access denial in an action for judicial review under Section
3269  63G-2-404; or
3270        (b) a person, other than the governmental entity or political subdivision described in
3271  Subsection (1)(a), that is party to the action for judicial review in opposition to
3272  disclosure of the record that is the subject of judicial review.
3273    (2)(a) If a protected record is shared as described in Subsection 63G-2-206(4) and the
3274        protected record is intentionally disclosed, or about to be intentionally disclosed, the
3275        person who requested the record be protected under Section 63G-2-309 may bring an
3276        action against the governmental entity that intentionally disclosed, or is about to i
3277        ntentionally disclose, as described in this section.
3278        (b) A person described in Subsection (2)(a) may seek and obtain:
3279  (i) injunctive relief to stop the improper disclosure of the protected record; and
3280  (ii) damages for an improper disclosure, subject to the limits set by rule in accordance
3281  with Subsection 63G-7-605(5).
3282    (3) A district court in this state may enjoin any governmental entity or political subdivision
3283        that violates or proposes to violate the provisions of this chapter.
3284    [(3)] (4)(a) Subject to Subsection [(6)] (7), a district court may assess against a defending
3285        party reasonable attorney fees and costs reasonably incurred in connection with a
3286        judicial appeal to determine whether a requester is entitled access to records under a
3287        records request, if:
3288  (i) the requester substantially prevails; and
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       H.B. 507  Enrolled Copy
3289  (ii) the court finds that the defending party acted in bad faith.
3290  (b) Subject to Subsection [(6)] (7), in determining whether to award attorney fees or costs
3291  to a requester under this section, the court shall consider:
3292  (i) the public benefit derived from the case;
3293  (ii) the nature of the requester's interest in the records; and
3294  (iii) whether the defending party's actions had a reasonable basis.
3295  (c) A court may not award attorney fees or costs to a requester under this section if the
3296  purpose of the litigation is primarily to benefit the requester's financial or commercial
3297  interest.
3298     [(4)] (5) Neither attorney fees nor costs may be awarded for fees or costs incurred during
3299  administrative proceedings.
3300     [(5)] (6) A district court may assess against a requester reasonable attorney fees and costs
3301  reasonably incurred in connection with a judicial appeal to determine whether the
3302  requester is entitled to access to records under a records request, if:
3303  (a) the defending party substantially prevails; and
3304  (b) the court finds that the requester acted in bad faith.
3305     [(6)] (7) A court may award to a requester attorney fees and costs incurred in connection
3306  with appeals to district courts under Subsection [63G-2-404(2)] 63G-2-404(3) only if the
3307  attorney fees and costs were incurred 20 or more days after the day on which the
3308  requester provided to the governmental entity, political subdivision, or other person
3309  against which the requester seeks an award of attorney fees and costs, an adequate
3310  explanation in writing of the basis for the requester's position, regardless of whether the
3311  explanation is a part of or outside an administrative or court proceeding.
3312     [(7)] (8) Except for the waiver of immunity in Subsection 63G-7-301(2)(e), a claim for
3313  attorney fees or costs as provided in this section is not subject to Chapter 7,
3314  Governmental Immunity Act of Utah.
3315  Section 44. Section 63G-7-605 is amended to read:
3316  63G-7-605 (Effective 05/06/26). Adjustments to limitation of judgment amounts.
3317     (1) As used in this section:
3318  (a) "Adjusted consumer price factor" means what the consumer price index would be
3319  without the medical care component and the medical services component.
3320  (b) "Aggregate limit" means the limit on the aggregate amount of personal injury
3321  damages claims from a single occurrence, as provided in Subsection 63G-7-604(1)(d).
3322  (c) "Applicable index" means:
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3323  (i) the consumer price index, for a calculation of the percentage change in the
3324  consumer price index;
3325  (ii) the adjusted consumer price factor, for a calculation of the percentage change in
3326  the adjusted consumer price factor;
3327  (iii) the medical care component, for a calculation of the percentage change in the
3328  medical care component; or
3329  (iv) the medical services component, for a calculation of the percentage change in the
3330  medical services component.
3331        (d) "Base applicable index" means an applicable index for the year that is three years
3332  before the year in which the legislative fiscal analyst calculates new limits under this
3333  section.
3334        (e) "Consumer [price index] Price Index" means the annual index reported by the United
3335  States Bureau of Labor Statistics for consumer prices for all urban consumers, not
3336  seasonally adjusted.
3337        (f) "Individual limit" means the limit on the amount of a judgment for damages for
3338  personal injury, as provided in Subsection 63G-7-604(1)(a).
3339        (g) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
3340  manager under this section.
3341        (h) "Latest individual limit" means the individual limit, as last adjusted by the risk
3342  manager under this section.
3343        (i) "Latest property damage limit" means the property damage limit, as last adjusted by
3344  the risk manager under this section.
3345        (j) "Medical care component" means the medical care sub-index of the consumer price
3346  index.
3347        (k) "Medical services component" means the medical care services sub-index of the
3348  consumer price index.
3349        (l) "Percentage change" means the amount of change between the base applicable index
3350  and the applicable index for the year before the year in which the legislative fiscal
3351  analyst calculates new limits under this section, expressed as a percentage of the base
3352  applicable index.
3353        (m) "Property damage limit" means the limit on the amount of a judgment for property
3354  damage, as provided in Subsection 63G-7-604(1)(c).
3355        (n) "Risk manager" means the state risk manager appointed under Section 63A-4-101.5.
3356    (2) Each even-numbered year, the legislative fiscal analyst shall, subject to Subsection (3):
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3357  (a) calculate a new individual limit by adding to the latest individual limit the sum of:
3358  (i) 66.5% of the latest individual limit, multiplied by the percentage change in the
3359  adjusted consumer price factor;
3360  (ii) 16.75% of the latest individual limit, multiplied by the percentage change in the
3361  medical care component; and
3362  (iii) 16.75% of the latest individual limit, multiplied by the percentage change in the
3363  medical services component;
3364  (b) calculate a new aggregate limit by adding to the latest aggregate limit the sum of:
3365  (i) 66.5% of the latest aggregate limit, multiplied by the percentage change in the
3366  adjusted consumer price factor;
3367  (ii) 16.75% of the latest aggregate limit, multiplied by the percentage change in the
3368  medical care component; and
3369  (iii) 16.75% of the latest aggregate limit, multiplied by the percentage change in the
3370  medical services component;
3371  (c) calculate a new property damage limit by adding to the latest property damage limit
3372  the amount of the latest property damage limit multiplied by the percentage change in
3373  the consumer price index;
3374  (d) round up to the nearest $100 the individual limit, aggregate limit, and property
3375  damage limit calculated under Subsections (2)(a), (b), and (c); and
3376  (e) no later than May 1, communicate the newly calculated limits under Subsections
3377  (2)(a), (b), and (c) to the risk manager.
3378     (3) The newly calculated individual limit, aggregate limit, or property damage limit under
3379  Subsection (2) may not be less than the amount of the limit before the new calculation
3380  under Subsection (2).
3381     (4)(a) Each even-numbered year, the risk manager shall make rules, to become effective
3382  no later than July 1 of that year, that establish a new individual limit, aggregate limit,
3383  and property damage limit, as calculated under Subsection (2).
3384  (b) A newly calculated individual limit, aggregate limit, or property damage limit under
3385  this section has prospective effect only from the date the rules establishing the new
3386  limit take effect.
3387  (c) An individual limit, aggregate limit, or property damage limit, as newly calculated
3388  under this section, applies only to a claim for injury or loss that occurs after the
3389  effective date of the rules that establish the newly calculated limit.
3390     (5) The risk manager shall make rules by no later than July 1, 2026, and thereafter each July
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3391        1 of even-numbered years, that establish the limit of liability for damages resulting from
3392        the disclosure of a protected record as provided in Subsection 63G-2-802(2).
3393  Section 45. Section 63I-2-263 is amended to read:
3394  63I-2-263 (Effective 05/06/26). Repeal dates: Titles 63A through 63O.
3395    (1) Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
3396        Procurement Advisory Council is repealed July 1, 2025.
3397    (2) Section 63A-5b-807, Eminent domain of unincorporated city owned land, is repealed
3398        January 1, 2027.
3399    (3) Section 63A-17-806, Definitions -- Infant at Work Pilot Program -- Administration --
3400        Report, is repealed June 30, 2026.
3401    (4) Section 63C-1-103, Appointment and terms of boards, committees, councils, and
3402        commissions transitioning on October 1, 2024, or December 31, 2024, is repealed July
3403        1, 2025.
3404    (5) Section 63C-1-104, Appointment and terms of boards transitioning on October 1, 2024,
3405        is repealed January 1, 2025.
3406    (6) Subsection 63G-6a-802(1)(e), regarding a procurement for a presidential debate, is
3407        repealed January 1, 2025.
3408    (7) Subsection 63G-6a-802(3)(b)(iii), regarding a procurement for a presidential debate, is
3409        repealed January 1, 2025.
3410    (8) Subsection 63H-7a-403(2)(b), regarding the charge to maintain the public safety
3411        communications network, is repealed July 1, 2033.
3412    (9) Subsection 63J-1-602.2(30), regarding funding the Enterprise Zone Act, is repealed
3413        December 31, 2026.
3414    (10) Subsection 63J-1-602.2(46), regarding appropriations to the State Tax Commission for
3415        deferral reimbursements, is repealed July 1, 2027.
3416    (11) Section 63M-7-221, Expungement working group, is repealed April 30, 2025.
3417    (12) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed December 31, 2026.
3418    (13) Subsection 63N-3a-201(3)(c), regarding a county legislative body making certain
3419        findings regarding proposed economic development projects, is repealed July 1, 2027.
3420  Section 46. Section 63N-2-103 is amended to read:
3421  63N-2-103 (Effective 05/06/26). Definitions.
3422       As used in this part:
3423    (1)(a) "Business entity" means a person that enters into a written agreement with the
3424        office to initiate a new commercial project in Utah that will qualify the person to
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3425  receive a tax credit under Section 59-7-614.2 or 59-10-1107.
3426  (b) With respect to a tax credit authorized by the office in accordance with Subsection
3427  63N-2-104.3(2), "business entity" includes a nonprofit entity.
3428     (2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
3429  industrial, manufacturing, business park, research park, or other appropriate business
3430  related use in a general plan that contemplates future growth.
3431     (3) "Development zone" means an economic development zone created under Section
3432  63N-2-104.
3433     (4) "Local government entity" means:
3434  (a) a county, city, or town[.] ;
3435  (b) for state-owned land, a development authority statutorily authorized to manage the
3436  land; or
3437  (c) for development authority-owned land, the development authority.
3438     (5) "New commercial project" means an economic development opportunity that:
3439  (a) involves a targeted industry; or
3440  (b) is located within:
3441  (i) a county of the third, fourth, fifth, or sixth class; or
3442  (ii) a municipality that has a population of 10,000 or less and the municipality is
3443  located within a county of the second class.
3444     (6) "Remote work opportunity" means a new commercial project that:
3445  (a) does not require a physical office in the state where employees associated with the
3446  new commercial project are required to work; and
3447  (b) requires employees associated with the new commercial project to:
3448  (i) work remotely from a location within the state; and
3449  (ii) maintain residency in the state.
3450     (7) "Significant capital investment" means an investment in capital or fixed assets, which
3451  may include real property, personal property, and other fixtures related to a new
3452  commercial project that represents an expansion of existing operations in the state or
3453  that increases the business entity's existing workforce in the state.
3454     (8) "Tax credit" means an economic development tax credit created by Section 59-7-614.2
3455  or 59-10-1107.
3456     (9) "Tax credit amount" means the amount the office lists as a tax credit on a tax credit
3457  certificate for a taxable year.
3458     (10) "Tax credit certificate" means a certificate issued by the office that:
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3459        (a) lists the name of the business entity to which the office authorizes a tax credit;
3460        (b) lists the business entity's taxpayer identification number;
3461        (c) lists the amount of tax credit that the office authorizes the business entity for the
3462  taxable year; and
3463        (d) may include other information as determined by the office.
3464    (11) "Written agreement" means a written agreement entered into between the office and a
3465        business entity under Section 63N-2-104.2.
3466  Section 47. Section 63N-3-602 is amended to read:
3467  63N-3-602 (Effective 05/06/26). Definitions.
3468       As used in this part:
3469    (1) "Affordable housing" means housing occupied or reserved for occupancy by households
3470        with a gross household income:
3471        (a) equal to or less than 80% of the county median gross income for households of the
3472  same size, in certain circumstances as provided in this part; or
3473        (b) equal to or less than 60% of the county median gross income for households of the
3474  same size, in certain circumstances as provided in this part.
3475    (2) "Agency" means the same as that term is defined in Section 17C-1-102.
3476    (3) "Base taxable value" means a property's taxable value as shown upon the assessment
3477        roll last equalized during the base year.
3478    [(4) "Base year" means, for each property tax increment collection period triggered within a
3479        proposed housing and transit reinvestment zone or convention center reinvestment zone
3480        project area, the calendar year prior to the calendar year the property tax increment
3481        begins to be collected for the parcels that are in a project that is triggered for that
3482        collection period.]
3483    (4) "Base year" means:
3484        (a)(i) the calendar year in which the committee approves the zone; or
3485  (ii) a calendar year the committee establishes in approving the zone, which may not
3486  be a calendar year more than five years from the year in which the committee
3487  approves the zone; or
3488        (b) for a convention center reinvestment zone in a capital city, the year ending December
3489  31, 2023.
3490    (5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast and
3491        efficient service that may include dedicated lanes, busways, traffic signal priority,
3492        off-board fare collection, elevated platforms, and enhanced stations.
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3493     (6) "Bus rapid transit station" means an existing station, stop, or terminal, or a proposed
3494  station, stop, or terminal that is specifically identified as needed in phase one of a
3495  metropolitan planning organization's adopted long-range transportation plan and in
3496  phase one of the relevant public transit district's adopted long-range transit plan:
3497  (a) along an existing bus rapid transit line; or
3498  (b) along an extension to an existing bus rapid transit line or new bus rapid transit line.
3499     (7) "Capital city" means the same as that term is defined in Section 17D-4-102.
3500     (8)(a) "Commuter rail" means a regional passenger rail transit facility operated by a
3501  large public transit district.
3502  (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
3503  transit district.
3504     (9) "Commuter rail station" means an existing station, stop, or terminal, or a proposed
3505  station, stop, or terminal, which has been specifically identified as needed in phase one
3506  of a metropolitan planning organization's adopted long-range transportation plan and in
3507  phase one of the relevant public transit district's adopted long-range transit plan:
3508  (a) along an existing commuter rail line;
3509  (b) along an extension to an existing commuter rail line or new commuter rail line;
3510  (c) along a fixed guideway extension from an existing commuter rail line; or
3511  (d) at the landing point of a pedestrian bridge or vehicle bridge extending from an
3512  existing commuter rail station.
3513     (10) "Convention center" means a convention center owned by a county of the first class
3514  within a city of the first class.
3515     (11) "Convention center revitalization project" means a project within a city of the first
3516  class within a county of the first class for the revitalization, activation, and
3517  modernization of a convention center and the surrounding area, including projects
3518  meeting the objectives described in Section 63N-3-603.1.
3519     (12) "Convention center reinvestment zone" means a convention center reinvestment zone
3520  created under this part.
3521     (13)(a) "Developable area" means the portion of land within a housing and transit
3522  reinvestment zone available for development and construction of business and
3523  residential uses.
3524  (b) "Developable area" does not include portions of land within a housing and transit
3525  reinvestment zone that are allocated to:
3526  (i) parks;
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3527  (ii) recreation facilities;
3528  (iii) open space;
3529  (iv) trails;
3530  (v) publicly-owned roadway facilities; or
3531  (vi) other public facilities.
3532    (14) "Dwelling unit" means one or more rooms arranged for the use of one or more
3533        individuals living together, as a single housekeeping unit normally having cooking,
3534        living, sanitary, and sleeping facilities.
3535    (15) "Eligible municipality" means a city that:
3536        (a)(i) is the county seat of a county of the first class; or
3537  (ii) a city of the first class located in a county of the first class; and
3538        (b) has a convention center within the boundary of the city.
3539    (16) "Enhanced development" means the construction of mixed uses including housing,
3540        commercial uses, and related facilities.
3541    (17) "Enhanced development costs" means extra costs associated with structured parking
3542        costs, vertical construction costs, horizontal construction costs, life safety costs,
3543        structural costs, conveyor or elevator costs, and other costs incurred due to the increased
3544        height of buildings or enhanced development.
3545    (18) "First home investment zone" means the same as that term is defined in Section
3546        63N-3-1601.
3547    (19) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
3548    (20) "Horizontal construction costs" means the additional costs associated with earthwork,
3549        over excavation, utility work, transportation infrastructure, and landscaping to achieve
3550        enhanced development in the housing and transit reinvestment zone.
3551    (21) "Housing and transit reinvestment zone" means a housing and transit reinvestment
3552        zone created pursuant to this part.
3553    (22) "Housing and transit reinvestment zone committee" means a housing and transit
3554        reinvestment zone committee created pursuant to Section 63N-3-605.
3555    (23) "Large public transit district" means the same as that term is defined in Section
3556        17B-2a-802.
3557    (24) "Light rail" means a passenger rail public transit system with right-of-way and fixed
3558        rails:
3559        (a) dedicated to exclusive use by light-rail public transit vehicles;
3560        (b) that may cross streets at grade; and
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3561  (c) that may share parts of surface streets.
3562     (25) "Light rail station" means an existing station, stop, or terminal or a proposed station,
3563  stop, or terminal, which has been specifically identified as needed in phase one of a
3564  metropolitan planning organization's adopted long-range transportation plan and in
3565  phase one of the relevant public transit district's adopted long-range plan:
3566  (a) along an existing light rail line; or
3567  (b) along an extension to an existing light rail line or new light rail line.
3568     (26) "Metropolitan planning organization" means the same as that term is defined in
3569  Section 72-1-208.5.
3570     (27) "Mixed use development" means development with a mix of:
3571  (a) multi-family residential use; and
3572  (b) at least one additional land use, which shall be a significant part of the overall
3573  development.
3574     (28) "Municipality" means the same as that term is defined in Section 10-1-104.
3575     (29) "Participant" means the same as that term is defined in Section 17C-1-102.
3576     (30) "Participation agreement" means the same as that term is defined in Section 17C-1-102,
3577  except that the agency may not provide and the person may not receive a direct subsidy.
3578     (31) "Project" means a housing and transit reinvestment zone or convention center
3579  reinvestment zone created under this part.
3580     (32)(a) "Property tax increment" means the difference between:
3581  (i) the amount of property tax revenue generated each tax year by a taxing entity from
3582  the area within a housing and transit reinvestment zone or convention center
3583  reinvestment zone designated in the applicable reinvestment zone proposal as the
3584  area from which tax increment is to be collected, using the current assessed value
3585  and each taxing entity's current certified tax rate as defined in Section 59-2-924;
3586  and
3587  (ii) the amount of property tax revenue that would be generated from that same area
3588  using the base taxable value and each taxing entity's current certified tax rate as
3589  defined in Section 59-2-924.
3590  (b) "Property tax increment" does not include property tax revenue from:
3591  (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
3592  (ii) a county additional property tax described in Subsection 59-2-1602(4); or
3593  (iii) a public library fund levy described in Subsection 9-7-501(2).
3594     (33) "Public transit county" means a county that has created a small public transit district.
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3595    (34) "Public transit hub" means a public transit depot or station where four or more routes
3596        serving separate parts of the county-created transit district stop to transfer riders between
3597        routes.
3598    (35) "Sales and use tax base year" means:
3599        (a) for a housing and transit reinvestment zone, a sales and use tax year determined by
3600  the first year pertaining to the tax imposed in Section 59-12-103 after the sales and
3601  use tax boundary for a housing and transit reinvestment zone is established; or
3602        (b) for a convention center reinvestment zone, a sales and use tax year determined by the
3603  year specified in the approved proposal for a convention center reinvestment zone,
3604  pertaining to the taxes:
3605  (i) imposed under Section 59-12-103;
3606  (ii) imposed by a city of the first class in a county of the first class under Title 59,
3607  Chapter 12, Part 2, Local Sales and Use Tax Act;
3608  (iii) imposed by a city of the first class in a county of the first class under Section
3609  59-12-402.1;
3610  (iv) imposed by a county of the first class under Section 59-12-1102; and
3611  (v) imposed by a county of the first class under Title 59, Chapter 12, Part 22, Local
3612  Option Sales and Use Taxes for Transportation Act.
3613    (36) "Sales and use tax boundary" means:
3614        (a) for a housing and transit reinvestment zone, a boundary created as described in
3615  Section 63N-3-604, based on state sales and use tax collection boundaries that
3616  correspond as closely as reasonably practicable to the housing and transit
3617  reinvestment zone boundary; or
3618        (b) for a convention center reinvestment zone, a boundary created as described in
3619  Section 63N-3-604.1, based on state sales and use tax collection boundaries that
3620  correspond as closely as reasonably practicable to the convention center reinvestment
3621  zone boundary.
3622    (37) "Sales and use tax increment" means:
3623        (a) for a housing and transit reinvestment zone, the difference between:
3624  (i) the amount of state sales and use tax revenue generated each year following the
3625  sales and use tax base year by the sales and use tax from the area within a housing
3626  and transit reinvestment zone designated in the housing and transit reinvestment
3627  zone proposal as the area from which sales and use tax increment is to be
3628  collected; and
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       H.B. 507  Enrolled Copy
3629  (ii) the amount of state sales and use tax revenue that was generated from that same
3630  area during the sales and use tax base year; or
3631  (b) for a convention center reinvestment zone, the difference between:
3632  (i) the amount of sales and use tax revenue generated each year following the sales
3633  and use tax base year by the sales and use tax from the area within a convention
3634  center reinvestment zone designated in the convention center reinvestment zone
3635  proposal as the area from which sales and use tax increment is to be collected; and
3636  (ii) the amount of sales and use tax revenue that was generated from that same area
3637  during the sales and use tax base year.
3638     (38) "Sales and use tax revenue" means:
3639  (a) for a housing and transit reinvestment zone, revenue that is generated from the tax
3640  imposed under Section 59-12-103; or
3641  (b) for a convention center reinvestment zone, revenue that is generated from:
3642  (i) the sales and use taxes imposed under Section 59-12-103; and
3643  (ii) the sales and use taxes:
3644  (A) imposed by a city of the first class in a county of the first class under Title 59,
3645  Chapter 12, Part 2, Local Sales and Use Tax Act;
3646  (B) imposed by a city of the first class in a county of the first class under Section
3647  59-12-402.1;
3648  (C) imposed by a county of the first class under Section 59-12-1102; and
3649  (D) imposed by a county of the first class under Title 59, Chapter 12, Part 22,
3650  Local Option Sales and Use Taxes for Transportation Act.
3651     (39) "Small public transit district" means the same as that term is defined in Section
3652  17B-2a-802.
3653     (40) "Tax Commission" means the State Tax Commission created in Section 59-1-201.
3654     (41) "Taxing entity" means the same as that term is defined in Section 17C-1-102.
3655     (42) "Vertical construction costs" means the additional costs associated with construction
3656  above four stories and structured parking to achieve enhanced development in the
3657  housing and transit reinvestment zone.
3658  Section 48. Section 63N-3-603 is amended to read:
3659  63N-3-603 (Effective 05/06/26). Applicability, requirements, and limitations on a
3660     housing and transit reinvestment zone.
3661     (1) A housing and transit reinvestment zone proposal created under this part shall
3662  demonstrate how the proposal addresses the following objectives:
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3663        (a) higher utilization of public transit;
3664        (b) increasing availability of housing, including affordable housing, and fulfillment of
3665  moderate income housing plans;
3666        (c) promoting and encouraging development of owner-occupied housing;
3667        (d) improving efficiencies in parking and transportation, including walkability of
3668  communities near public transit facilities;
3669        (e) overcoming development impediments and market conditions that render a
3670  development cost prohibitive absent the proposal and incentives;
3671        (f) conserving water resources through efficient land use;
3672        (g) improving air quality by reducing fuel consumption and motor vehicle trips;
3673        (h) encouraging transformative mixed-use development and investment in transportation
3674  and public transit infrastructure in strategic areas;
3675        (i) strategic land use and municipal planning in major transit investment corridors as
3676  described in Subsection 10-20-404(2);
3677        (j) increasing access to employment and educational opportunities; and
3678        (k) increasing access to child care.
3679    (2)(a) In order to accomplish the objectives described in Subsection (1), a municipality
3680        or public transit county that initiates the process to create a housing and transit
3681        reinvestment zone as described in this part shall ensure that the proposal for a
3682        housing and transit reinvestment zone includes:
3683  (i) except as provided in Subsection (3), at least 12% of the proposed dwelling units
3684  within the housing and transit reinvestment zone are affordable housing units,
3685  with:
3686  (A) up to 9% of the proposed dwelling units occupied or reserved for occupancy
3687  by households with a gross household income equal to or less than 80% of the
3688  county median gross income for households of the same size; and
3689  (B) at least 3% of the proposed dwelling units occupied or reserved for occupancy
3690  by households with a gross household income equal to or less than 60% of the
3691  county median gross income for households of the same size;
3692  (ii) except as provided in Subsection (2)(c), a housing and transit reinvestment zone
3693  shall include:
3694  (A) at least 51% of the developable area within a housing and transit reinvestment
3695  zone as residential uses; and
3696  (B) an average of at least 50 dwelling units per acre within the acreage of the
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3697  housing and transit reinvestment zone dedicated to residential uses;
3698  (iii) mixed-use development; and
3699  (iv) a mix of dwelling units to ensure that at least 25% of the dwelling units have
3700  more than one bedroom.
3701  (b)(i) If a housing and transit reinvestment zone is phased, a municipality or public
3702  transit county shall ensure that a housing and transit reinvestment zone is phased
3703  and developed to provide the required 12% of affordable housing units in each
3704  phase of development.
3705  (ii) A municipality or public transit county may allow a housing and transit
3706  reinvestment zone to be phased and developed in a manner to provide more of the
3707  required affordable housing units in early phases of development.
3708  (iii) A municipality or public transit county shall include in a housing and transit
3709  reinvestment zone proposal an affordable housing plan, which may include deed
3710  restrictions, to ensure the affordable housing required in the proposal will continue
3711  to meet the definition of affordable housing at least throughout the entire term of
3712  the housing and transit reinvestment zone.
3713  (c) For a housing and transit reinvestment zone proposed by a public transit county at a
3714  public transit hub, or for a housing and transit reinvestment zone proposed by a
3715  municipality at a bus rapid transit station, the housing and transit reinvestment zone
3716  shall include:
3717  (i) at least 51% of the developable area within a housing and transit reinvestment
3718  zone as residential uses; and
3719  (ii) an average of at least 39 dwelling units per acre within the acreage of the housing
3720  and transit reinvestment zone dedicated to residential uses.
3721     (3) A municipality or public transit county that, at the time the housing and transit
3722  reinvestment zone proposal is approved by the housing and transit reinvestment zone
3723  committee, meets the affordable housing guidelines of the United States Department of
3724  Housing and Urban Development at 60% area median income is exempt from the
3725  requirement described in Subsection (2)(a).
3726     (4)(a) A municipality may only propose a housing and transit reinvestment zone at a
3727  commuter rail station, and a public transit county may only propose a housing and
3728  transit reinvestment zone at a public transit hub, that:
3729  (i) subject to Subsection (5)(a):
3730  (A)(I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality,
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3731  does not exceed a 1/3 mile radius of a commuter rail station;
3732  (II) for a municipality that is a city of the first or second class that is within a
3733  county of the first or second class, with an opportunity zone created in
3734  accordance with Section 1400Z-1, Internal Revenue Code, does not exceed
3735  a 1/2 mile radius of a commuter rail station located within the opportunity
3736  zone; or
3737  (III) for a public transit county, does not exceed a 1/3 mile radius of a public
3738  transit hub; and
3739  (B) has a total area of no more than 125 noncontiguous acres;
3740  (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each
3741  taxing entity's property tax increment above the base year for a term of no more
3742  than 25 consecutive years on each parcel within a 45-year period not to exceed the
3743  property tax increment amount approved in the housing and transit reinvestment
3744  zone proposal; and
3745  (iii) the commencement of collection of property tax increment, for all or a portion of
3746  the housing and transit reinvestment zone project area, shall be triggered by
3747  providing notice as described in Subsection (6), but a housing and transit
3748  reinvestment zone proposal may not propose or include triggering more than three
3749  property tax increment collection periods for the same project during the
3750  applicable 45-year period.
3751        (b) A municipality or public transit county may only propose a housing and transit
3752  reinvestment zone at a light rail station or bus rapid transit station that:
3753  (i) subject to Subsection (5):
3754  (A) does not exceed[:]
3755  [(I) except as provided in Subsection (4)(b)(i)(A)(II), (III), or (4)(e),] a 1/4 mile
3756  radius of a bus rapid transit station or light rail station; and
3757  [(II) for a municipality that is a city of the first class with a population greater
3758  than 150,000 that is within a county of the first class, a 1/2 mile radius of a
3759  light rail station located in an opportunity zone created in accordance with
3760  Section
3761  1400Z-1, Internal Revenue Code; or]
3762  [(III) a 1/2 mile radius of a light rail station located within a master-planned
3763  development of 500 acres or more; and]
3764  (B) has a total area of no more than 100 noncontiguous acres;
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       H.B. 507  Enrolled Copy
3765  (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a
3766  maximum of 80% of each taxing entity's property tax increment above the base
3767  year for a term of no more than 15 consecutive years on each parcel within a
3768  30-year period not to exceed the property tax increment amount approved in the
3769  housing and transit reinvestment zone proposal; and
3770  (iii) the commencement of collection of property tax increment, for all or a portion of
3771  the housing and transit reinvestment zone project area, shall be triggered by
3772  providing notice as described in Subsection (6), but a housing and transit
3773  reinvestment zone proposal may not propose or include triggering more than three
3774  property tax increment collection periods for the same project during the
3775  applicable 30-year period.
3776        (c) For a housing and transit reinvestment zone proposed by a public transit county at a
3777  public transit hub, or for a housing and transit reinvestment zone proposed by a
3778  municipality at a bus rapid transit station, if the proposed housing density within the
3779  housing and transit reinvestment zone is between 39 and 49 dwelling units per acre,
3780  the maximum capture of each taxing entity's property tax increment above the base
3781  year is 60%.
3782        [(d) A municipality that is a city of the first class with a population greater than 150,000
3783  in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and
3784  (4)(b)(i)(A)(II) may only propose one housing and transit reinvestment zone within
3785  an opportunity zone.]
3786        [(e)] (d)(i) Subject to Subsection [(4)(e)(ii)] (4)(d)(ii), the radius restrictions described
3787  in Subsection (4)(b)(i) do not apply, and a housing and transit reinvestment zone
3788  may extend to an area between two or three light rail or bus rapid transit stations
3789  located within a city of the third class or fourth class if the [two ]light rail stations
3790  or bus rapid transit stations are within a .95 mile distance on the same light rail line
3791  or dedicated offset bus lane.
3792  (ii) If a housing and transit reinvestment zone is extended to accommodate [two]
3793  multiple light rail stations or bus rapid transit stations as described in Subsection [
3794  (4)(e)(i)] (4)(d)(i):
3795  (A) the housing and transit reinvestment zone is limited to a total area not to
3796  exceed 100 noncontiguous acres; and
3797  (B) the housing and transit reinvestment zone may not exceed a 1/4 mile radius
3798  from the light rail or bus rapid transit stations or any point on the light rail line
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3799  or dedicated offset bus line between the two stations.
3800  (iii) If a housing and transit reinvestment zone is extended to accommodate three
3801  light rail or bus rapid transit stations as described in Subsection (4)(d)(i):
3802  (A) the housing and transit reinvestment zone is limited to a total area not to
3803  exceed 250 noncontiguous acres;
3804  (B) the housing and transit reinvestment zone may not exceed a one-quarter mile
3805  radius from the light rail or bus rapid transit stations or any point on the light
3806  rail line or dedicated offset bus line between the three stations; and
3807  (C) the housing and transit reinvestment zone shall be counted as two for purposes
3808  of Subsection (7).
3809        [(f)] (e) If a parcel within the housing and transit reinvestment zone is included as an area
3810  that is part of a project area, as that term is defined in Section 17C-1-102, and created
3811  under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for
3812  collection unless the project area funds collection period, as that term is defined in
3813  Section 17C-1-102, has expired.
3814    (5)(a) For a housing and transit reinvestment zone for a commuter rail station, if a parcel
3815        is intersected by the relevant radius limitation, the full parcel may be included as part
3816        of the housing and transit reinvestment zone area and will not count against the
3817        limitations described in Subsection (4)(a)(i).
3818        (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
3819  station, if a parcel is intersected by the relevant radius limitation, the full parcel may
3820  be included as part of the housing and transit reinvestment zone area and will not
3821  count against the limitations described in Subsection (4)(b)(i).
3822        (c) A housing and transit reinvestment zone may not be smaller than 10 acres.
3823    (6)(a) The notice of commencement of collection of property tax increment required in
3824        Subsection (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to the
3825        following entities no later than December 31 of the year before the year for which the
3826        property tax increment collection is proposed to commence:
3827  (i) the State Tax Commission;
3828  (ii) the State Board of Education;
3829  (iii) the state auditor;
3830  (iv) the auditor of the county in which the housing and transit reinvestment zone is
3831  located;
3832  (v) each taxing entity affected by the collection of property tax increment from the
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3833  housing and transit reinvestment zone; and
3834  (vi) the Governor's Office of Economic Opportunity.
3835  (b) The notice described in Subsection (4)(a)(iii) or (4)(b)(iii) may not be triggered until
3836  the date on which the housing and transit reinvestment zone proposal is approved by
3837  the housing and transit reinvestment zone committee.
3838  (c)(i) For a convention center reinvestment zone in a capital city, a municipality or
3839  public infrastructure district may submit a notice of commencement of collection
3840  of property tax increment for each separate parcel or subarea within the
3841  convention center reinvestment zone in a capital city.
3842  (ii) The collection of property tax increment described in Subsection (6)(c)(i) shall
3843  commence no later than five years from the day the convention center
3844  reinvestment zone in a capital city proposal is approved.
3845     (7)(a) The maximum number of housing and transit reinvestment zones at light rail
3846  stations, not including a convention center reinvestment zone, is eight in any given
3847  county.
3848  (b) Within a county of the first class, the maximum number of housing and transit
3849  reinvestment zones at bus rapid transit stations is three.
3850  (c) Within a county of the first class, the maximum total combined number of housing
3851  and transit reinvestment zones described in Subsections (7)(a) and (b) and first home
3852  investment zones created under Part 16, First Home Investment Zone Act, is 11.
3853     (8)(a) For purposes of this Subsection (8), "entitlement agreement" means:
3854  (i) a land use application;
3855  (ii) a rezone petition; or
3856  (iii) a request, petition, or application to:
3857  (A) enact or approve a development agreement; or
3858  (B) to amend or modify a development agreement.
3859  (b) This Subsection (8) applies to a specified county, as defined in Section 17-80-101,
3860  that has created a small public transit district on or before January 1, 2022.
3861  (c) To accomplish the objectives described in Subsection (1), an owner of undeveloped
3862  property within an unincorporated county shall have the right to develop and build a
3863  mixed-use development if:
3864  (i) the owner has submitted an entitlement agreement to the county on or before
3865  December 31, 2022, and is within a 1/3 mile radius of a public transit hub in a
3866  county described in Subsection (8)(b), including parcels that are intersected by the
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       Enrolled Copy  H.B. 507
3867  1/3 mile radius; and
3868  (ii) the county described in Subsection (8)(b) has failed to approve the entitlement
3869  agreement described in Subsection (8)(c)(i) by ordinance before December 31,
3870  2022.
3871        (d) The mixed use development described in Subsection (8)(c) shall include the
3872  following:
3873  (i)(A)(I) a maximum number of dwelling units equal to 30 multiplied by the
3874  total acres of developable area within the mixed-use development dedicated
3875  exclusively to residential use; or
3876  (II) a maximum number of dwelling units equal to 15 multiplied by the total
3877  acres of the mixed-use development; and
3878  (B) at least 33% of the dwelling units as affordable housing;
3879  (ii) commercial uses, including office, retail, educational, and healthcare in support of
3880  the mixed-use development constituting no more than 1/3 of the total planned
3881  gross building square footage of the subject parcels; and
3882  (iii) any other infrastructure element necessary or reasonable to support the
3883  mixed-use development, including:
3884  (A) parking infrastructure;
3885  (B) streets;
3886  (C) sidewalks;
3887  (D) parks; and
3888  (E) trails.
3889        (e)(i) The mixed-use development described in this Subsection (8) may qualify for a
3890  housing and transit reinvestment zone described in Subsection (4)(a).
3891  (ii) The county described in Subsection (8)(b) may propose a housing and transit
3892  reinvestment zone in accordance with this part, if the housing and transit
3893  reinvestment zone includes:
3894  (A)(I) an average of at least 30 dwelling units per acre within the acreage of the
3895  housing and transit reinvestment zone dedicated to residential use; or
3896  (II) a minimum number of 14 dwelling units per acre on average within the
3897  acreage of the housing and transit reinvestment zone; and
3898  (B) at least 33% of the dwelling units as affordable housing units.
3899        (f) A county may not take an action or enforce an agreement, ordinance, regulation, or
3900  requirement that prevents or creates development impediments to the development of
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       H.B. 507  Enrolled Copy
3901  a mixed-use development as described in this Subsection (8).
3902  (g) A county action to approve or implement the development of a mixed-use
3903  development as described in this Subsection (8) shall constitute an administrative
3904  action taken by the county and does not require county legislative action.
3905  Section 49. Section 63N-3-604 is amended to read:
3906  63N-3-604 (Effective 05/06/26). Process for a proposal of a housing and transit
3907     reinvestment zone -- Analysis.
3908     (1) [Subject ] On or before December 31, 2027, and subject to approval of the housing and
3909  transit reinvestment zone committee as described in Section 63N-3-605, in order to
3910  create a housing and transit reinvestment zone, a municipality or public transit county
3911  that has general land use authority over the housing and transit reinvestment zone area,
3912  shall:
3913  (a) prepare a proposal for the housing and transit reinvestment zone that:
3914  (i) demonstrates that the proposed housing and transit reinvestment zone will meet
3915  the objectives described in Subsection 63N-3-603(1);
3916  (ii) explains how the municipality or public transit county will achieve the
3917  requirements of Subsection 63N-3-603(2)(a)(i);
3918  (iii) defines the specific transportation infrastructure needs, if any, and proposed
3919  improvements and estimated budgets;
3920  (iv) defines the boundaries of:
3921  (A) the housing and transit reinvestment zone; and
3922  (B) the sales and use tax boundary corresponding to the housing and transit
3923  reinvestment zone boundary, as described in Section 63N-3-610;
3924  (v) includes maps of the proposed housing and transit reinvestment zone to illustrate:
3925  (A) the proposed boundary and radius from a public transit hub;
3926  (B) proposed housing density within the housing and transit reinvestment zone;
3927  and
3928  (C) existing zoning and proposed zoning changes related to the housing and transit
3929  reinvestment zone;
3930  (vi) identifies any development impediments that prevent the development from
3931  being a market-rate investment, including proposed strategies and estimated
3932  budgets for addressing each one;
3933  (vii) describes the proposed development plan and estimated budgets, including the
3934  requirements described in Subsections 63N-3-603(2) and (4);
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       Enrolled Copy  H.B. 507
3935  (viii) establishes a base year and collection period to calculate the property tax
3936  increment within the housing and transit reinvestment zone;
3937  (ix) establishes a sales and use tax base year to calculate the sales and use tax
3938  increment within the housing and transit reinvestment zone in accordance with
3939  Section 63N-3-610;
3940  (x) describes projected maximum revenues generated and the amount of property tax
3941  increment capture from each taxing entity and proposed expenditures of revenue
3942  derived from the housing and transit reinvestment zone;
3943  (xi) includes an analysis of other applicable or eligible incentives, grants, or sources
3944  of revenue that can be used to reduce the finance gap;
3945  (xii) estimates budgets and evaluates possible benefits to active and public
3946  transportation availability and impacts on air quality;
3947  (xiii) proposes a finance schedule to align expected revenue with required financing
3948  costs and payments;
3949  (xiv) provides a pro-forma for the planned development that:
3950  (A) satisfies the requirements described in Subsections 63N-3-603(2), (3), and (4);
3951  (B) includes data showing the cost difference between what type of development
3952  could feasibly be developed absent the housing and transit reinvestment zone
3953  property tax increment and the type of development that is proposed to be
3954  developed with the housing and transit reinvestment zone property tax
3955  increment; and
3956  (C) provides estimated budgets and construction costs, anticipated revenue,
3957  financing, expenses, and other sources and uses of funds for the project area;
3958  and
3959  (xv) for a housing and transit reinvestment zone at a commuter rail station, light rail
3960  station, or bus rapid transit station that is proposed and not in public transit service
3961  operation as of the date of submission of the proposal, demonstrates that the
3962  proposed station is:
3963  (A) included as needed in phase one of a metropolitan planning organization's
3964  adopted long-range transportation plan and in phase one of the relevant public
3965  transit district's adopted long-range plan; and
3966  (B) reasonably anticipated to be constructed in the near future; and
3967        (b) submit the housing and transit reinvestment zone proposal to the Governor's Office
3968  of Economic Opportunity.
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       H.B. 507  Enrolled Copy
3969     (2) As part of the proposal described in Subsection (1), a municipality or public transit
3970  county shall study and evaluate possible impacts of a proposed housing and transit
3971  reinvestment zone on parking within the city and housing and transit reinvestment zone.
3972     (3)(a) After receiving the proposal as described in Subsection (1)(b), the Governor's
3973  Office of Economic Opportunity shall:
3974  (i) within 14 days after the date on which the Governor's Office of Economic
3975  Opportunity receives the proposal described in Subsection (1)(b), provide notice
3976  of the proposal to all affected taxing entities, including the Tax Commission,
3977  cities, counties, school districts, metropolitan planning organizations, and the
3978  county assessor and county auditor of the county in which the housing and transit
3979  reinvestment zone is located; and
3980  (ii) at the expense of the proposing municipality or public transit county as described
3981  in Subsection (5), contract with an independent entity to perform the financial gap
3982  analysis described in Subsection (3)(b).
3983  (b) The gap analysis required in Subsection (3)(a)(ii) shall include:
3984  (i) a description of the planned development;
3985  (ii) a market analysis relative to other comparable project developments included in
3986  or adjacent to the municipality or public transit county absent the proposed
3987  housing and transit reinvestment zone;
3988  (iii) an evaluation of the proposal to and a determination of the adequacy and
3989  efficiency of the proposal;
3990  (iv) an evaluation of the proposed increment capture needed to cover the enhanced
3991  development costs associated with the housing and transit reinvestment zone
3992  proposal and enable the proposed development to occur; and
3993  (v) based on the market analysis and other findings, an opinion relative to the
3994  appropriate amount of potential public financing reasonably determined to be
3995  necessary to achieve the objectives described in Subsection 63N-3-603(1).
3996  (c) After receiving notice from the Governor's Office of Economic Opportunity of a
3997  proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i),
3998  the State Tax Commission shall:
3999  (i) evaluate the feasibility of administering the tax implications of the proposal; and
4000  (ii) provide a letter to the Governor's Office of Economic Opportunity describing any
4001  challenges in the administration of the proposal, or indicating that the Tax
4002  Commission can feasibly administer the proposal.
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       Enrolled Copy  H.B. 507
4003    (4) After receiving the results from the analysis described in Subsection (3)(b), the
4004        municipality or public transit county proposing the housing and transit reinvestment
4005        zone may:
4006        (a) amend the housing and transit reinvestment zone proposal based on the findings of
4007  the analysis described in Subsection (3)(b) and request that the Governor's Office of
4008  Economic Opportunity submit the amended housing and transit reinvestment zone
4009  proposal to the housing and transit reinvestment zone committee; or
4010        (b) request that the Governor's Office of Economic Opportunity submit the original
4011  housing and transit reinvestment zone proposal to the housing and transit
4012  reinvestment zone committee.
4013    (5)(a) The Governor's Office of Economic Opportunity may accept, as a dedicated
4014        credit, up to $20,000 from a municipality or public transit county for the costs of the
4015        gap analysis described in Subsection (3)(b).
4016        (b) The Governor's Office of Economic Opportunity may expend funds received from a
4017  municipality or public transit county as dedicated credits to pay for the costs
4018  associated with the gap analysis described in Subsection (3)(b).
4019    (6)(a) Beginning January 1, 2028:
4020  (i) a municipality or public transit county may not propose a housing and transit
4021  reinvestment zone;
4022  (ii) a municipality or public transit county may amend a housing and transit
4023  reinvestment zone proposal, as described in Subsection (4), if the proposal is
4024  pending review or approval on December 31, 2027; and
4025  (iii) the Governor's Office of Economic Opportunity may not fulfill the duties
4026  described in Subsection (3) or (5) in regard to a proposal for a housing and transit
4027  reinvestment zone unless the proposal is pending review or approval on December
4028  31, 2027.
4029        (b) Subsection (6)(a) does not impact housing and transit reinvestment zones that are in
4030  existence on January 1, 2028.
4031  Section 50. Section 63N-3-604.1 is amended to read:
4032  63N-3-604.1 (Effective 05/06/26). Process for proposing a convention center
4033    reinvestment zone.
4034    (1) [To ] On or before December 31, 2027, to create a convention center reinvestment zone
4035        under this part, the Governor's Office of Economic Opportunity shall, after consulting
4036        with and giving notice to the related eligible municipality and county, provide a proposal
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       H.B. 507  Enrolled Copy
4037  for a convention center reinvestment zone to the housing and transit reinvestment zone
4038  committee.
4039     (2)(a) The Governor's Office of Economic Opportunity shall ensure that a proposal for
4040  the creation of a convention center reinvestment zone includes the following
4041  information and data that:
4042  (i) defines the boundary of the proposed convention center reinvestment zone;
4043  (ii) describes generally the proposed development plan;
4044  (iii) identifies a base year and collection period to calculate the property tax
4045  increment within the convention center reinvestment zone;
4046  (iv) specifies a sales and use tax base year to calculate the sales and use tax increment
4047  within the convention center reinvestment zone in accordance with Section
4048  63N-3-610.1;
4049  (v) provides estimated project and investment objectives for the convention center
4050  reinvestment zone; and
4051  (vi) outlines generally the impacts on transportation in and around the proposed
4052  convention center reinvestment zone.
4053  (b) For a convention center reinvestment zone in a capital city, the proposal described in
4054  Subsection (2)(a) shall also provide estimated budgets and construction costs,
4055  anticipated revenue, financing, expenses, and other sources and uses of funds for the
4056  project area.
4057  (c) The proposal described in Subsection (2)(b) shall limit the use of funds to:
4058  (i) a convention center;
4059  (ii) a publicly owned entertainment venue;
4060  (iii) parking; and
4061  (iv) infrastructure related to the project.
4062     (3) A proposal by the Governor's Office of Economic Opportunity for a convention center
4063  reinvestment zone shall demonstrate how the information and data provided in the
4064  proposal pursuant to Subsection (2) furthers the objectives described in Section
4065  63N-3-603.1 and is in the public interest.
4066     (4) After submitting the proposal as described in Subsection (2), the Governor's Office of
4067  Economic Opportunity shall provide notice of the proposal to all affected taxing entities,
4068  including the State Tax Commission, cities, counties, school districts, metropolitan
4069  planning organizations, and the county assessor and county auditor of the county in
4070  which the convention center reinvestment zone is located.
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       Enrolled Copy  H.B. 507
4071    (5) After receiving notice from the Governor's Office of Economic Opportunity of a
4072        proposed convention center reinvestment zone as described in Subsection (4), the Tax
4073        Commission shall, within 14 days:
4074        (a) evaluate the feasibility of administering the tax implications of the proposal; and
4075        (b) provide a letter to the Governor's Office of Economic Opportunity describing any
4076  challenges in the administration of the proposal, or indicating that the State Tax
4077  Commission can feasibly administer the proposal.
4078    (6) Beginning January 1, 2028, the Governor's Office of Economic Opportunity may not
4079        propose, and the committee may not consider, the creation of a convention center
4080        reinvestment zone.
4081  Section 51. Section 63N-3-605 is amended to read:
4082  63N-3-605 (Effective 05/06/26) (Applies beginning 05/04/22). Housing and transit
4083    reinvestment zone committee -- Creation.
4084    (1) [For] On or before December 31, 2027, for any housing and transit reinvestment zone
4085        proposed under this part, or for a first home investment zone proposed in accordance
4086        with Part 16, First Home Investment Zone Act, there is created a housing and transit
4087        reinvestment zone committee with membership described in Subsection (2).
4088    (2) Each housing and transit reinvestment zone committee shall consist of the following
4089        members:
4090        (a) one representative from the Governor's Office of Economic Opportunity, designated
4091  by the executive director of the Governor's Office of Economic Opportunity;
4092        (b) one representative from each municipality that is a party to the proposed housing and
4093  transit reinvestment zone or first home investment zone, designated by the chief
4094  executive officer of each respective municipality;
4095        (c) a member of the Transportation Commission created in Section 72-1-301;
4096        (d) a member of the board of trustees of a large public transit district;
4097        (e) one individual from the Office of the State Treasurer, designated by the state
4098  treasurer;
4099        (f) two members designated by the president of the Senate;
4100        (g) two members designated by the speaker of the House of Representatives;
4101        (h) one member designated by the chief executive officer of each county affected by the
4102  housing and transit reinvestment zone or first home investment zone;
4103        (i) two representatives designated by the school superintendent from the school district
4104  affected by the housing and transit reinvestment zone or first home investment zone;
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       H.B. 507  Enrolled Copy
4105  and
4106  (j) one representative, representing the largest participating local taxing entity, after the
4107  municipality, county, and school district.
4108     (3) The individual designated by the Governor's Office of Economic Opportunity as
4109  described in Subsection (2)(a) shall serve as chair of the housing and transit
4110  reinvestment zone committee.
4111     (4)(a) A majority of the members of the housing and transit reinvestment zone
4112  committee constitutes a quorum of the housing and transit reinvestment zone
4113  committee.
4114  (b) An action by a majority of a quorum of the housing and transit reinvestment zone
4115  committee is an action of the housing and transit reinvestment zone committee.
4116     (5)(a) After the Governor's Office of Economic Opportunity receives the results of the
4117  analysis described in Section 63N-3-604, and after the Governor's Office of
4118  Economic Opportunity has received a request from the submitting municipality or
4119  public transit county to submit the housing and transit reinvestment zone proposal to
4120  the housing and transit reinvestment zone committee, the Governor's Office of
4121  Economic Opportunity shall notify each of the entities described in Subsection (2) of
4122  the formation of the housing and transit reinvestment zone committee.
4123  (b) For a first home investment zone, the housing and transit reinvestment zone
4124  committee shall follow the procedures described in Section 63N-3-1604.
4125     (6)(a) The chair of the housing and transit reinvestment zone committee shall convene a
4126  public meeting to consider the proposed housing and transit reinvestment zone.
4127  (b) A meeting of the housing and transit reinvestment zone committee is subject to Title
4128  52, Chapter 4, Open and Public Meetings Act.
4129     (7)(a) The proposing municipality or public transit county shall present the housing and
4130  transit reinvestment zone proposal to the housing and transit reinvestment zone
4131  committee in a public meeting.
4132  (b) The housing and transit reinvestment zone committee shall, for a housing and transit
4133  reinvestment zone proposal:
4134  (i) evaluate and verify whether the elements of a housing and transit reinvestment
4135  zone described in Subsections 63N-3-603(2) and (4) have been met; and
4136  (ii) evaluate the proposed housing and transit reinvestment zone relative to the
4137  analysis described in Subsection 63N-3-604(2).
4138  (c) The housing and transit reinvestment zone committee shall, for a convention center
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4139  reinvestment zone proposal, evaluate and verify whether the objectives of a
4140  convention center reinvestment zone described in Section 63N-3-603.1 have been
4141  met.
4142    (8)(a) Subject to Subsection (8)(b), the housing and transit reinvestment zone committee
4143        may:
4144  (i)(A) for a housing and transit reinvestment zone, request changes to the housing
4145  and transit reinvestment zone proposal based on the analysis, characteristics,
4146  and criteria described in Section 63N-3-604; or
4147  (B) for a convention center reinvestment zone, request changes to the convention
4148  center reinvestment zone proposal based on the characteristics and criteria
4149  described in Sections 63N-3-603.1 and 63N-3-604.1; or
4150  (ii) subject to Subsection (12), vote to approve or deny the proposal.
4151        (b) Before the housing and transit reinvestment zone committee may approve the
4152  housing and transit reinvestment zone proposal, the municipality or public transit
4153  county proposing the housing and transit reinvestment zone shall ensure that the area
4154  of the proposed housing and transit reinvestment zone is zoned in such a manner to
4155  accommodate the requirements of a housing and transit reinvestment zone described
4156  in this section and the proposed development.
4157    (9)(a) If a housing and transit reinvestment zone is approved by the committee:
4158  [(a)] (i) the proposed housing and transit reinvestment zone is established according to
4159  the terms of the housing and transit reinvestment zone proposal;
4160  [(b)] (ii) affected local taxing entities are required to participate according to the terms
4161  of the housing and transit reinvestment zone proposal; and
4162  [(c)] (iii) each affected taxing entity is required to participate at the same rate.
4163        (b) If a zone is approved by the committee, the proposing municipality or public transit
4164  county shall:
4165  (i) enter into an agreement with the relevant property owners identifying the density
4166  necessary to implement the approved proposal;
4167  (ii) enter into an entitlement agreement, development agreement, or participation
4168  agreement with the property owners within the zone as soon as reasonably
4169  possible to implement the approved proposal; and
4170  (iii) if the proposing municipality or public transit county have not entered into one
4171  or more of the agreements described in Subsection (9)(b)(ii) within two years of
4172  the approval of the proposal, submit a written report to the committee describing
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4173  the status of:
4174  (A) the agreement required by Subsection (9)(b)(ii) and an explanation of the
4175  status; and
4176  (B) related land use regulations to implement the approved proposal.
4177     (10) A housing and transit reinvestment zone proposal may be amended by following the
4178  same procedure as approving a housing and transit reinvestment zone proposal, except
4179  the proposing municipality or public transit county is not required to submit an
4180  additional pro forma analysis unless requested by the office or the committee.
4181     (11)(a) The approval for a convention center reinvestment zone in a capital city may be
4182  completed with a condition that the relevant municipality also create a public
4183  infrastructure district as provided in Subsection 63N-3-607(8)(b).
4184  (b) The approval described in Subsection (11)(a) shall verify that the requirements and
4185  limitations on use of funds is limited to the conditions described under Subsections
4186  63N-3-604.1(2)(b) and (c).
4187     (12)(a) Beginning January 1, 2028, the committee may not approve a proposal for a
4188  housing and transit reinvestment zone, a first home investment zone, or a convention
4189  center reinvestment zone unless the proposal was pending on December 31, 2027.
4190  (b) Housing and transit reinvestment zones that are in existence on January 1, 2028,
4191  continue to exist and shall comply with the relevant requirements of this part until the
4192  housing and transit reinvestment zone is dissolved.
4193  (c) First home investment zones that are in existence on January 1, 2028, continue to
4194  exist and shall comply with the relevant requirements of this part until the first home
4195  investment zone is dissolved.
4196  (d) Convention center reinvestment zones that are in existence on January 1, 2028,
4197  continue to exist and shall comply with the relevant requirements of this part until the
4198  convention center reinvestment zone is dissolved.
4199  Section 52. Section 63N-3-607 is amended to read:
4200  63N-3-607 (Effective 05/06/26). Payment, use, and administration of revenue
4201     from a housing and transit reinvestment zone.
4202     (1) In accordance with this part:
4203  (a) a municipality or public transit county may receive and use property tax increment
4204  and housing and transit reinvestment zone funds;
4205  (b)(i) a public infrastructure district shall use the funds from a convention center
4206  reinvestment zone in a capital city within or for the benefit of a convention center
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4207  reinvestment zone in a capital city; and
4208  (ii) funds from a convention center reinvestment zone in a capital city may be used
4209  outside of the capital city convention center reinvestment zone if the use meets the
4210  objectives described in Section 63N-3-603.1 and is determined by the board of the
4211  public infrastructure district to be a direct benefit to the convention center
4212  reinvestment zone in a capital city; and
4213        (c) a municipality or a public infrastructure district may receive and use property tax
4214  increment and convention center reinvestment zone funds for a convention center
4215  reinvestment zone that is not within a capital city.
4216    (2)(a) Except as provided in Subsection (3), a county that collects property tax on
4217        property located within a housing and transit reinvestment zone shall, in accordance
4218        with Section 59-2-1365, distribute to the municipality or public transit county any
4219        property tax increment the municipality or public transit county is authorized to
4220        receive up to the maximum approved by the housing and transit reinvestment zone
4221        committee.
4222        (b) Property tax increment distributed to a municipality or public transit county in
4223  accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality
4224  or public transit county.
4225        (c)(i) Property tax increment paid to the municipality or public transit county are
4226  housing and transit reinvestment zone funds and shall be administered by an
4227  agency created by the municipality or public transit county within which the
4228  housing and transit reinvestment zone is located.
4229  (ii) Before an agency may receive housing and transit reinvestment zone funds from
4230  the municipality or public transit county, the municipality or public transit county
4231  and the agency shall enter into an interlocal agreement with terms that:
4232  (A) are consistent with the approval of the housing and transit reinvestment zone
4233  committee; and
4234  (B) meet the requirements of Section 63N-3-603 or, for a convention center
4235  reinvestment zone, the requirements of Section 63N-3-603.1.
4236    (3)(a) A county that collects property tax on property located within a convention center
4237        reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the
4238        relevant public infrastructure district created by the eligible municipality any
4239        property tax increment the public infrastructure district is authorized to receive up to
4240        the amounts approved by the housing and transit reinvestment zone committee.
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4241  (b) Property tax increment distributed to a public infrastructure district in accordance
4242  with Subsection (3)(a) is not revenue of the taxing entity or municipality.
4243  (c) Property tax increment paid to the public infrastructure district are convention center
4244  reinvestment zone funds and shall be administered by the public infrastructure district
4245  within which the convention center reinvestment zone is located.
4246     (4)(a)(i) A municipality or public transit county and agency shall use housing and
4247  transit reinvestment zone funds within, or for the direct benefit of, the housing and
4248  transit reinvestment zone.
4249  (ii) A public infrastructure district shall use convention center reinvestment zone
4250  funds within, or for the benefit of, the convention center reinvestment zone.
4251  (b) If any housing and transit reinvestment zone funds will be used outside of the
4252  housing and transit reinvestment zone, there must be a finding in the approved
4253  proposal for a housing and transit reinvestment zone that the use of the housing and
4254  transit reinvestment zone funds outside of the housing and transit reinvestment zone
4255  will directly benefit the housing and transit reinvestment zone.
4256     (5)(a) A municipality or public transit county shall use housing and transit reinvestment
4257  zone funds to achieve the purposes described in Subsections 63N-3-603(1) and (2),
4258  by paying all or part of the costs of any of the following:
4259  (i) income targeted housing costs;
4260  (ii) structured parking within the housing and transit reinvestment zone;
4261  (iii) enhanced development costs;
4262  (iv) horizontal construction costs;
4263  (v) vertical construction costs;
4264  (vi) property acquisition costs within the housing and transit reinvestment zone;
4265  (vii) the costs of the municipality or public transit county to create and administer the
4266  housing and transit reinvestment zone, which may not exceed 2% of the total
4267  housing and transit reinvestment zone funds, plus the costs to complete the gap
4268  analysis described in Subsection 63N-3-604(2);[ or]
4269  (viii) subject to Subsection (5)(b), costs for the construction or expansion of child
4270  care facilities within the boundary of the housing and transit reinvestment zone[.] ;
4271  or
4272  (ix) extraterritorial affordable housing costs as described in Subsection (5)(d).
4273  (b) A municipality or public transit county may not use more than 1% of the total
4274  housing and transit reinvestment zone funds to pay costs described in Subsection
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4275  (5)(a)(viii).
4276        (c) A public infrastructure district shall use convention center reinvestment zone funds
4277  to achieve the purposes described in Section 63N-3-603.1.
4278        (d)(i) As used in this Subsection (5)(d), "extraterritorial affordable housing" means
4279  affordable housing, as affordable housing is defined in Section 63N-3-1601, that:
4280  (A) is located within the municipality proposing the housing and transit
4281  reinvestment zone but outside the boundary of the housing and transit
4282  reinvestment zone;
4283  (B) is part of a development with a density of at least six units per acre;
4284  (C) is required to be owner occupied for no less than 25 years; and
4285  (D) has not been issued a building permit by the municipality as of the date of the
4286  approval of the housing and transit reinvestment zone.
4287  (ii) A municipality or public transit county may use housing and transit reinvestment
4288  zone funds on extraterritorial affordable housing costs if the municipality or
4289  public transit county satisfies the requirement to make a finding that the action
4290  will benefit the housing and transit reinvestment zone, as described under
4291  Subsection (4)(b).
4292  (iii) One hundred percent of extraterritorial affordable housing shall meet the
4293  affordable housing requirements described in Section 63N-3-1602.
4294    (6) Housing and transit reinvestment zone funds may be paid to a participant, if the agency
4295        and participant enter into a participation agreement that requires the participant to utilize
4296        the housing and transit reinvestment zone funds as allowed in this section.
4297    (7)(a) Housing and transit reinvestment zone funds may be used to pay all of the costs of
4298        bonds issued by the municipality or public transit county in accordance with Title
4299        17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the
4300        bonds including interest.
4301        (b) Convention center reinvestment zone funds may be used to pay all of the costs of
4302  debt incurred by the public infrastructure district, including the cost to issue and
4303  repay the debt including interest.
4304    (8)(a) A municipality or public transit county may create one or more public
4305        infrastructure districts within the housing and transit reinvestment zone under Title
4306        17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing
4307        and transit reinvestment zone funds to guarantee the payment of public infrastructure
4308        bonds issued by a public infrastructure district.
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       H.B. 507  Enrolled Copy
4309  (b) An eligible municipality that is a capital city shall create one or more public
4310  infrastructure districts within the convention center reinvestment zone under Title
4311  17D, Chapter 4, Public Infrastructure District Act, and the convention center
4312  reinvestment zone funds may be used to pay all or any portion of debt incurred by the
4313  public infrastructure district, including the cost to issue and repay the debt including
4314  interest.
4315  Section 53. Section 63N-3-608 is amended to read:
4316  63N-3-608 (Effective 05/06/26). Applicability to an existing community
4317     reinvestment project.
4318     (1) For a housing and transit reinvestment zone created under this part that overlaps any
4319  portion of an existing inactive industrial site community reinvestment project area plan
4320  created in accordance with Title 17C, Limited Purpose Local Government Entities -
4321  Community Reinvestment Agency Act:
4322  (a) if the community reinvestment project area plan captures less than 80% of the
4323  property tax increment from a taxing entity, or if a taxing entity is not participating in
4324  the community reinvestment project area plan, the housing and transit reinvestment
4325  zone may capture the difference between:
4326  (i) 80%; and
4327  (ii) the percentage of property tax increment captured pursuant to the community
4328  reinvestment project area plan; and
4329  (b) if a community reinvestment project area plan expires before the housing and transit
4330  reinvestment zone, the housing and transit reinvestment zone may capture the
4331  property tax increment allocated to the community reinvestment project area plan for
4332  any remaining portion of the term of the housing and transit reinvestment zone and
4333  the base year shall be updated in accordance with Subsection 63N-3-602(4).
4334     (2) For a convention center reinvestment zone created under this part that overlaps any
4335  portion of an existing community reinvestment project area created in accordance with
4336  Title 17C, Limited Purpose Local Government Entities - Community Reinvestment
4337  Agency Act:
4338  (a) if the community reinvestment project area captures less than 100% of the property
4339  tax increment from a taxing entity, or if a taxing entity is not participating in the
4340  community reinvestment project area, the convention center reinvestment zone may
4341  capture the difference between:
4342  (i) 100%; and
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       Enrolled Copy  H.B. 507
4343  (ii) the percentage of property tax increment captured pursuant to the community
4344  reinvestment project area for each taxing entity; and
4345        (b) if a community reinvestment project area plan expires before the convention center
4346  reinvestment zone, the convention center reinvestment zone may capture the property
4347  tax increment allocated to the community reinvestment project area for any
4348  remaining portion of the term of the convention center reinvestment zone with the
4349  base year relating back to the base year established by the community reinvestment
4350  project area.
4351    (3) A zone that overlaps any portion of an existing community reinvestment project may
4352        capture up to the maximum allowable increment of the increment generated above the
4353        zone base year.
4354  Section 54. Section 63N-3-611 is amended to read:
4355  63N-3-611 (Effective 05/06/26). Boundary adjustments -- Governing law.
4356       [If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
4357    housing and transit reinvestment zone or a convention center reinvestment zone, the
4358    municipality administering the property tax increment collected in the housing and transit
4359    reinvestment zone, or for a convention center reinvestment zone, the Governor's Office of
4360    Economic Opportunity may make corresponding adjustments to the boundary of the housing
4361    and transit reinvestment zone.]
4362    (1)(a) Subject to the requirements under this part, and after the housing and transit
4363        reinvestment zone committee approves a housing and transit reinvestment zone or a
4364        convention center reinvestment zone proposal in accordance with Section 63N-3-605,
4365        the office shall consult with the relevant county assessor to determine a boundary
4366        adjustment to a housing and transit reinvestment zone or a convention center
4367        reinvestment zone.
4368        (b) If an area is excluded from or bisected by the radius requirements described in this
4369  part, a boundary adjustment to include or exclude the area is permitted if:
4370  (i) the committee or office, if applicable, determines that inclusion or exclusion has a
4371  reasonable nexus to advancing the objectives described in Section 63N-3-603;
4372  (ii) the adjustment does not include a parcel that is located entirely outside a one-half
4373  mile radius from a bus rapid transit or light rail station, or a two-third mile radius
4374  from a commuter rail station; and
4375  (iii) any acreage included in a housing and transit reinvestment zone under this
4376  section is offset by an exclusion of acreage such that the total acreage approved by
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       H.B. 507  Enrolled Copy
4377  the committee does not exceed the maximum in Section 63N-3-603.
4378     (2)(a) Except as provided in Subsection (2)(b), a parcel may only be triggered for
4379  property tax increment collection on the legal parcel boundary drawn at the time the
4380  parcel is triggered for property tax increment collection.
4381  (b)(i) A convention center reinvestment zone in a capital city may commence a
4382  property tax increment collection at different times for different parcels or
4383  subareas within the convention center reinvestment zone in a capital city.
4384  (ii) The property tax increment collection described in Subsection (2)(b)(i) shall use
4385  the base year of 2023 and commence no later than five years from the day that the
4386  convention center reinvestment zone in a capital city proposal is approved.
4387     (3)(a) A housing and transit reinvestment zone or convention center reinvestment zone
4388  shall be governed by the law in effect on the date the application for the housing and
4389  transit reinvestment zone or convention center reinvestment zone was approved by
4390  the housing and transit reinvestment zone committee.
4391  (b) Notwithstanding Subsection (3)(a), an approved housing and transit reinvestment
4392  zone proposal submitted before May 1, 2024, shall be governed by the base year
4393  defined in code before January 1, 2023.
4394  Section 55. Section 63N-3-1603 is amended to read:
4395  63N-3-1603 (Effective 05/06/26). Process for a proposal of a first home
4396     investment zone.
4397     (1) [Subject ] On or before December 31, 2027, and subject to approval of the housing and
4398  transit reinvestment zone committee as described in Section 63N-3-1604, in order to
4399  create a first home investment zone, a municipality that has general land use authority
4400  over the first home investment zone area, shall:
4401  (a) prepare a proposal for the first home investment zone that:
4402  (i) demonstrates that the proposed first home investment zone will meet the
4403  objectives described in Subsection 63N-3-1602(1);
4404  (ii) explains how the municipality will achieve the requirements of Subsection
4405  63N-3-1602(2);
4406  (iii) defines the specific infrastructure needs, if any, and proposed improvements;
4407  (iv) demonstrates how the first home investment zone will ensure:
4408  (A) sufficient pedestrian access to schools and other areas of community; and
4409  (B) inclusion of child care facilities and access;
4410  (v) defines the boundaries of the first home investment zone;
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       Enrolled Copy  H.B. 507
4411  (vi) includes maps of the proposed first home investment zone to illustrate:
4412  (A) proposed housing density within the first home investment zone;
4413  (B) extraterritorial homes relevant to the first home investment zone, including
4414  density of the development of extraterritorial homes; and
4415  (C) existing zoning and proposed zoning changes related to the first home
4416  investment zone;
4417  (vii) identifies any development impediments that prevent the development from
4418  being a market-rate investment and proposed strategies for addressing each one;
4419  (viii) describes the proposed development plan, including the requirements described
4420  in Subsections 63N-3-1602(2) and (4);
4421  (ix) establishes the collection period or periods to calculate the tax increment;
4422  (x) describes projected maximum revenues generated and the amount of tax
4423  increment capture from each taxing entity and proposed expenditures of revenue
4424  derived from the first home investment zone;
4425  (xi) includes an analysis of other applicable or eligible incentives, grants, or sources
4426  of revenue that can be used to reduce the finance gap;
4427  (xii) proposes a finance schedule to align expected revenue with required financing
4428  costs and payments;
4429  (xiii) evaluates possible benefits to active transportation, public transportation
4430  availability and utilization, street connectivity, and air quality; and
4431  (xiv) provides a pro forma for the planned development that:
4432  (A) satisfies the requirements described in Subsections 63N-3-1602(2) and (4); and
4433  (B) includes data showing the cost difference between what type of development
4434  could feasibly be developed absent the first home investment zone tax
4435  increment and the type of development that is proposed to be developed with
4436  the first home investment zone tax increment;
4437        (b) submit the proposal to the relevant school district to discuss the requirements of the
4438  proposal and whether the proposal provides the benefits and achieves the objectives
4439  described in this part; and
4440        (c) submit the first home investment zone proposal to the Governor's Office of
4441  Economic Opportunity.
4442    (2) As part of the proposal described in Subsection (1), a municipality shall:
4443        (a) study and evaluate possible impacts of a proposed first home investment zone on
4444  parking and efficient use of land within the municipality and first home investment
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4445  zone; and
4446  (b) include in the first home investment zone proposal the findings of the study
4447  described in Subsection (2)(a) and proposed strategies to efficiently address parking
4448  impacts.
4449     (3)(a) After receiving the proposal as described in Subsection (1)(c), the Governor's
4450  Office of Economic Opportunity shall:
4451  (i) within 14 days after the date on which the Governor's Office of Economic
4452  Opportunity receives the proposal described in Subsection (1)(c), provide notice
4453  of the proposal to all affected taxing entities, including the State Tax Commission,
4454  cities, counties, school districts, metropolitan planning organizations, and the
4455  county assessor and county auditor of the county in which the first home
4456  investment zone is located; and
4457  (ii) at the expense of the proposing municipality as described in Subsection (5),
4458  contract with an independent entity to:
4459  (A) perform the gap analysis described in Subsection (3)(b); and
4460  (B) perform an analysis of the pro-forma described in Subsection (1)(a)(xiv)(B)
4461  and the feasibility of the proposed development absent the tax increment.
4462  (b) The gap and pro-forma analysis required in Subsection (3)(a)(ii) shall include:
4463  (i) a description of the planned development;
4464  (ii) a market analysis relative to other comparable project developments included in
4465  or adjacent to the municipality absent the proposed first home investment zone;
4466  (iii) an evaluation of the proposal and a determination of the adequacy and efficiency
4467  of the proposal;
4468  (iv) an evaluation of the proposed tax increment capture needed to cover the system
4469  improvements and project improvements associated with the first home
4470  investment zone proposal and enable the proposed development to occur, and for
4471  the benefit of affordable housing projects; and
4472  (v) based on the market analysis and other findings, an opinion relative to the
4473  appropriate amount of potential public financing reasonably determined to be
4474  necessary to achieve the objectives described in Subsection 63N-3-1602(1).
4475  (c) After receiving notice from the Governor's Office of Economic Opportunity of a
4476  proposed first home investment zone as described in Subsection (3)(a)(i), the
4477  municipality, in consultation with the county assessor and the State Tax Commission,
4478  shall:
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       Enrolled Copy  H.B. 507
4479  (i) evaluate the feasibility of administering the tax implications of the proposal; and
4480  (ii) provide a letter to the Governor's Office of Economic Opportunity describing any
4481  challenges in the administration of the proposal, or indicating that the county
4482  assessor can feasibly administer the proposal.
4483    (4) After receiving the results from the analysis described in Subsection (3)(b), the
4484        municipality proposing the first home investment zone may:
4485        (a) amend the first home investment zone proposal based on the findings of the analysis
4486  described in Subsection (3)(b) and request that the Governor's Office of Economic
4487  Opportunity submit the amended first home investment zone proposal to the housing
4488  and transit reinvestment zone committee; or
4489        (b) request that the Governor's Office of Economic Opportunity submit the original first
4490  home investment zone proposal to the housing and transit reinvestment zone
4491  committee.
4492    (5)(a) The Governor's Office of Economic Opportunity may accept, as a dedicated
4493        credit, up to $20,000 from a municipality for the costs of the gap analysis described
4494        in Subsection (3)(b).
4495        (b) The Governor's Office of Economic Opportunity may expend funds received from a
4496  municipality as dedicated credits to pay for the costs associated with the gap analysis
4497  described in Subsection (3)(b).
4498    (6) Beginning January 1, 2028:
4499        (a) a municipality may not propose a first home investment zone;
4500        (b) a municipality may amend a first home investment zone proposal, as described in
4501  Subsection (4), if the proposal was pending on December 31, 2027; and
4502        (c) the Governor's Office of Economic Opportunity may not fulfill the duties described
4503  in Subsection (3) or (5) in regard to a proposal for a first home investment zone
4504  unless the proposal was pending on December 31, 2027.
4505  Section 56. Section 63N-3-1609 is amended to read:
4506  63N-3-1609 (Effective 05/06/26). Boundary adjustments.
4507    (1) If the relevant county assessor or county auditor adjusts parcel boundaries relevant
4508        to a first home investment zone, the municipality administering the tax increment
4509        collected in the first home investment zone may make corresponding adjustments to the
4510        boundary of the first home investment zone.
4511    (2) Subject to the requirements under this part, and after the housing and transit
4512        reinvestment zone committee approves a first home investment zone proposal in
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4513  accordance with Section 63N-3-1604, the office shall consult with the relevant county
4514  assessor to determine a boundary adjustment to parcel boundaries relevant to a first
4515  home investment zone.
4516     (3) A parcel may only be triggered for property tax increment collection on the legal parcel
4517  boundary drawn at the time the parcel is triggered for property tax increment collection.
4518  Section 57. Section 63N-3a-101 is enacted to read:
4519  CHAPTER 3a. Coordination of Regional Economic Development Activity
4520  Part 1. General Provisions
4521  63N-3a-101 (Effective 05/06/26). Definitions.
4522        As used in this chapter:
4523     (1) "Affordable housing" means:
4524  (a) for homes that are not owner-occupied, housing occupied or reserved for occupancy
4525  by households with a gross household income equal to or less than 80% of the county
4526  median gross income for households of the same size; or
4527  (b)(i) for homes that are owner-occupied, housing occupied or reserved for
4528  occupancy by households with a gross household income equal to or less than
4529  120% of the median gross income for households of the same size in the county in
4530  which the housing is located; or
4531  (ii) for homes that are owner-occupied, housing that is priced at 80% of the zip code
4532  median home price if:
4533  (A) the proposal demonstrates that a deviation from the county median home price
4534  will achieve the objectives described in Section 63N-3a-103; and
4535  (B) the zip code median home price is based upon county property tax assessment
4536  data.
4537     (2) "Agency" means the same as that term is defined in Section 17C-1-102.
4538     (3) "Base taxable value" means a property's taxable value as shown upon the assessment
4539  roll last equalized during the base year.
4540     (4) "Base year" means:
4541  (a) the calendar year in which the committee approves a regionally significant
4542  development zone; or
4543  (b) a calendar year that the committee establishes when the committee approves a
4544  regionally significant development zone, which may not be a calendar year more than
4545  five years from the year in which the committee approves the regionally significant
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4546  development zone.
4547    (5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast and
4548        efficient service that may include dedicated lanes, busways, traffic signal priority,
4549        off-board fare collection, elevated platforms, and enhanced stations.
4550    (6) "Bus rapid transit station" means an existing station, stop, or terminal, or a proposed
4551        station, stop, or terminal that is specifically identified as needed in phase one of a
4552        metropolitan planning organization's adopted long-range transportation plan:
4553        (a) along an existing bus rapid transit line; or
4554        (b) along an extension to an existing bus rapid transit line or new bus rapid transit line.
4555    (7) "Committee" means the increment financing committee created in Section 63N-3a-102.
4556    (8)(a) "Commuter rail" means a regional passenger rail transit facility operated by a
4557        large public transit district.
4558        (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
4559  transit district.
4560    (9) "Commuter rail station" means an existing station, stop, or terminal, or a proposed
4561        station, stop, or terminal, which has been specifically identified as needed in phase one
4562        of a metropolitan planning organization's adopted long-range transportation plan:
4563        (a) along an existing commuter rail line;
4564        (b) along an extension to an existing commuter rail line or new commuter rail line;
4565        (c) along a fixed guideway extension from an existing commuter rail line; or
4566        (d) at the landing point of a pedestrian bridge or vehicle bridge extending from an
4567  existing commuter rail station.
4568    (10) "Creating entity" means:
4569        (a) a municipality; or
4570        (b) a county.
4571    (11)(a) "Developable area" means the portion of land within a zone available for
4572        development and construction of uses that met the relevant objectives described in
4573        Part 3, Specific Provisions for Certain Zones.
4574        (b) "Developable area" does not include portions of land within a zone intended for
4575  development that are allocated to:
4576  (i) parks;
4577  (ii) open spaces;
4578  (iii) trails;
4579  (iv) parking;
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4580  (v) roadway facilities; or
4581  (vi) other public facilities.
4582     (12) "Dwelling unit" means one or more rooms arranged for the use of one or more
4583  individuals living together, as a single housekeeping unit, with cooking, living, sanitary,
4584  and sleeping facilities.
4585     (13) "Enhanced development" means the construction of mixed uses including housing,
4586  commercial, recreational, and related facilities.
4587     (14) "Enhanced development costs" means extra costs associated with structured parking
4588  costs, vertical construction costs, horizontal construction costs, life safety costs,
4589  structural costs, conveyor or elevator costs, and other costs incurred due to the increased
4590  height of buildings or enhanced development.
4591     (15) "Extraterritorial home" means a dwelling that is included as part of a proposal that:
4592  (a) is located within the municipality making the proposal but outside the boundary of
4593  the proposed project area;
4594  (b) is part of a development with a density of at least six units per acre;
4595  (c) is not located within an existing project area, a housing and transit reinvestment
4596  zone, a first home investment zone, or an area that could be included in a housing and
4597  transit reinvestment zone or a first home investment zone;
4598  (d) has not been issued a building permit by the municipality as of the date of the
4599  approval of the project area; and
4600  (e) is required to be owner occupied for no less than 25 years.
4601     (16) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
4602     (17) "High-density residential" means a minimum of 30 residential units per acre.
4603     (18) "Home" means a dwelling unit.
4604     (19) "Horizontal construction costs" means the additional costs associated with earthwork,
4605  over excavation, utility work, transportation infrastructure, and landscaping to achieve
4606  enhanced development in a regionally significant development zone.
4607     (20) "Impacted primary area" means land described in a proposal:
4608  (a) outside of a proposed zone boundary; and
4609  (b) that is crucial to one or more aspects of the development of the zone.
4610     (21) "Increment financing" means a public entity's utilization of:
4611  (a) property tax increment; or
4612  (b) any other portion of public revenue that is calculated using a base year and revenue
4613  growth following the base year, if the public revenue is authorized for use by a
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4614  committee.
4615    (22) "Large public transit district" means the same as that term is defined in Section
4616        17B-2a-802.
4617    (23) "Light rail" means a passenger rail public transit system with right-of-way and fixed
4618        rails:
4619        (a) dedicated to exclusive use by light-rail public transit vehicles;
4620        (b) that may cross streets at grade; and
4621        (c) that may share parts of surface streets.
4622    (24) "Light rail station" means an existing station, stop, or terminal or a proposed station,
4623        stop, or terminal, which has been specifically identified as needed in phase one of a
4624        metropolitan planning organization's adopted long-range transportation plan:
4625        (a) along an existing light rail line; or
4626        (b) along an extension to an existing light rail line or new light rail line.
4627    (25) "Metropolitan planning organization" means the same as that term is defined in
4628        Section 72-1-208.5.
4629    (26) "Mixed use development" means development with a mix of:
4630        (a) multi-family residential use; and
4631        (b) at least one additional land use, which shall be a significant portion of the overall
4632  development.
4633    (27) "Moderate income housing" means residential units where a household whose income
4634        is no more than 80% of the area median income is able to occupy the housing unit
4635        paying no more than 30% of the household's income for gross housing costs, including
4636        utilities.
4637    (28) "Municipality" means the same as that term is defined in Section 10-1-104.
4638    (29) "Notification of increment financing" means a document, physical or electronic,
4639        provided by a regional economic development authority to the office describing the
4640        regional economic development authority's intent to trigger and utilize one or more
4641        forms of increment financing.
4642    (30)(a) "Owner occupied" means private real property that is:
4643  (i) used for a single-family residential purpose; and
4644  (ii) occupied by the owner of the real property.
4645        (b) "Owner occupied" includes real property that is used for a multi-family residential
4646  purpose if each dwelling unit on the real property is occupied by the owner of the
4647  dwelling unit.
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4648     (31) "Participant" means the same as that term is defined in Section 17C-1-102.
4649     (32) "Participation agreement" means the same as that term is defined in Section 17C-1-102,
4650  except that the agency may not provide and the person may not receive a direct subsidy.
4651     (33) "Project" means the enterprise to be pursued through the proposal of a regionally
4652  significant development zone.
4653     (34)(a) "Project improvements" means site improvements and facilities that are:
4654  (i) planned and designed to provide service for development resulting from a
4655  development activity;
4656  (ii) necessary for the use and convenience of the occupants or users of development
4657  resulting from a development activity; and
4658  (iii) not identified or reimbursed as a system improvement.
4659  (b) "Project improvements" does not mean system improvements.
4660     (35)(a) "Property tax increment" means the difference between:
4661  (i) the amount of property tax revenue generated each tax year by all taxing entities,
4662  except as provided in Subsection (35)(b), from within a regionally significant
4663  development zone, using the current assessed value and each taxing entity's
4664  current certified tax rate as defined in Section 59-2-924; and
4665  (ii) the amount of property tax revenue that would be generated from that same area
4666  using the base taxable value and each taxing entity's current certified tax rate as
4667  defined in Section 59-2-924.
4668  (b) "Property tax increment" does not include property tax revenue from:
4669  (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
4670  (ii) a county additional property tax described in Subsection 59-2-1602(4);
4671  (iii) a levy imposed by a public infrastructure district as described in Section
4672  17D-4-303; or
4673  (iv) a public library fund levy described in Subsection 9-7-501(2).
4674     (36) "Proposal" means a document, physical or electronic, developed by a creating entity:
4675  (a) outlining the need for the creation of a regionally significant development zone;
4676  (b) explaining whether the zone is proposed to create:
4677  (i) a regionally significant transit-oriented development, as described in Section
4678  63N-3a-301;
4679  (ii) a regionally significant first home village, as described in Section 63N-3a-302;
4680  (iii) a regionally significant economic development opportunity, as described in
4681  Section 63N-3a-303;
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4682        (c) describing how the relevant objectives would be achieved by the creation of the
4683  regionally significant development zone;
4684        (d) describing the boundaries of the proposed regionally significant development zone;
4685        (e) describing the impacted primary area, if any, of a proposed regionally significant
4686  development zone; and
4687        (f) that is submitted to a committee.
4688    (37) "Public transit county" means a county that has created a small public transit district.
4689    (38) "Public transit hub" means a public transit depot or station where four or more routes
4690        serving separate parts of the county-created transit district stop to transfer riders between
4691        routes.
4692    (39) "Qualified development zone" means the property within a project area, and, if
4693        applicable, the impacted primary area, as approved by the committee.
4694    (40) "Regional economic development authority" means:
4695        (a) the Utah Inland Port Authority created in Section 11-58-201;
4696        (b) the Point of the Mountain Land Use Authority created in Section 11-59-201;
4697        (c) the Utah Fairpark Area Investment and Restoration District created in Section
4698  11-70-201; or
4699        (d) the Military Installation Development Authority created in Section 63H-1-201.
4700    (41)(a) "Regionally significant development zone" means an area:
4701  (i) created as described in Part 2, Creation of Regionally Significant Development
4702  Zones;
4703  (ii) governed as described in Title 17C, Chapter 6, Regionally Significant
4704  Development Zone Act; and
4705  (iii) in which a creating entity is able to promote efficient use of transit, housing
4706  affordability, or regional economic growth.
4707    (42) "Small public transit district" means the same as that term is defined in Section
4708        17B-2a-802.
4709    (43)(a) "System improvements" means existing and future public facilities that are
4710        designed to provide services to service areas within the community at large.
4711        (b) "System improvements" does not mean project improvements.
4712    (44) "Tax commission" means the State Tax Commission created in Section 59-1-201.
4713    (45) "Taxing entity" means the same as that term is defined in Section 17C-1-102.
4714    (46)(a) "Tax increment" means the difference between:
4715  (i) the amount of tax revenue generated each tax year from a particular revenue
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       H.B. 507  Enrolled Copy
4716  source by all taxing entities within a particular area after an established base year;
4717  and
4718  (ii) the amount of revenue that would be generated from the same particular revenue
4719  source and from the same particular area during the established base year.
4720  (b) "Tax increment" includes tax differential, property tax allocation, enhanced property
4721  tax revenue, property tax augmentation, or any other term that meets the definition
4722  described in Subsection (46)(a).
4723     (47) "Transportation system" means:
4724  (a) a street, alley, road, highway, pathway, or thoroughfares of any kind, including
4725  connected structures;
4726  (b) an airport or aerial transit infrastructure;
4727  (c) a light rail and light rail station;
4728  (d) a public transit facility; or
4729  (e) any other modes or forms of conveyance used by the public.
4730     (48) "Vertical construction costs" means the additional costs associated with construction
4731  above four stories and structured parking to achieve enhanced development in a project
4732  area.
4733  Section 58. Section 63N-3a-102 is enacted to read:
4734  63N-3a-102 (Effective 05/06/26). Increment authorization committee -- Creation.
4735     (1) For any project proposed under this chapter that requires the use of tax increment, there
4736  is created an increment authorization committee with membership described in
4737  Subsection (2).
4738     (2) Each increment authorization committee shall consist of the following members:
4739  (a) the executive director or the executive director's designee;
4740  (b) the executive director of the Department of Transportation created in Section
4741  72-1-201 or the executive director's designee;
4742  (c) one individual from the Office of the State Treasurer, designated by the state
4743  treasurer;
4744  (d) two members designated by the president of the Senate;
4745  (e) two members designated by the speaker of the House of Representatives;
4746  (f) one representative representing the largest participating local taxing entity by
4747  population, after the creating entity and other than a water conservancy district, in the
4748  proposed zone;
4749  (g) one representative from the creating entity; and
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4750        (h)(i) if a proposal addresses affordable housing, moderate income housing, or
4751  addresses a regionally significant first home village:
4752  (A) one representative from the office, designated by the executive director, who
4753  works on housing policy; and
4754  (B) two representatives designated by the school superintendent from the largest
4755  school district by student population affected by the proposal;
4756  (ii) if a proposal addresses a regionally significant transit-oriented zone, one member
4757  appointed by the governor:
4758  (A) from the Transportation Committee created in Section 72-1-301; or
4759  (B) a member of the board of trustees of a large public transit district;
4760  (iii) if a proposal addresses a regionally significant economic development
4761  opportunity that is not described in Subsections (2)(h)(i) and (ii):
4762  (A) the director of the Office of Energy Development created in Section 79-6-401;
4763  and
4764  (B) any individual with relevant expertise appointed by the governor.
4765    (3) A majority of committee members constitutes a quorum.
4766    (4) A majority vote of a quorum constitutes action by the committee.
4767  Section 59. Section 63N-3a-103 is enacted to read:
4768  63N-3a-103 (Effective 05/06/26). Executive director duties -- Contracting.
4769    (1) In addition to the duties described in Section 63N-1a-303, the executive director shall
4770        coordinate the use of increment financing to achieve the state's long-term housing and
4771        economic development goals while balancing the need of local communities to protect
4772        tax base and continue to provide essential services to a growing population.
4773    (2) Following the office's evaluation of a proposal, as described in Section 63N-3a-202, the
4774        executive director shall:
4775        (a) determine whether the proposal demonstrates broad regional benefits to the state and
4776  the state's residents, including the provision of affordable housing, enhancing
4777  statewide infrastructure, or contributing to economic resilience;
4778        (b) evaluate the proposal by considering:
4779  (i) the impact of proposed increment financing on residents; and
4780  (ii) existing uses of increment in the proposed area; and
4781        (c) provide the proposal, with the executive director's determination and
4782  recommendation, to the committee for consideration.
4783    (3) The executive director shall:
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       H.B. 507  Enrolled Copy
4784  (a) coordinate a committee's evaluation of a proposal; and
4785  (b) maintain active communication with regional economic development authorities
4786  regarding increment financing.
4787     (4)(a) Subject to Subsection (4)(b), the office may enter into a contract with an
4788  independent consultant, regional economic development authority, or political
4789  subdivision with expertise in analyzing economic development opportunities and
4790  managing increment financing to assist the office in the performance of the duties
4791  described in this chapter.
4792  (b) An independent consultant contracted to assist the office under Subsection (4)(a)
4793  may not advise the creating entity or any party with a financial stake in the proposed
4794  regionally significant development zone.
4795  Section 60. Section 63N-3a-104 is enacted to read:
4796  63N-3a-104 (Effective 05/06/26). Maximum number of zones per county.
4797     (1) As used in this section, "increment zone" means:
4798  (a) a housing and transit reinvestment zone;
4799  (b) a convention center reinvestment zone;
4800  (c) a first homes investment zone;
4801  (d) a home ownership promotion zone;
4802  (e) a major sporting event venue zone; and
4803  (f) an electrical energy development zone.
4804     (2) In any given county:
4805  (a) the maximum number of increment zones at light rail stations, not including a
4806  convention center reinvestment zone, is eight; and
4807  (b) the maximum number of regionally significant development zones created as
4808  described in Part 2, Creation of Regionally Significant Development Zones, is eight.
4809     (3) In addition to the caps described in Subsection (2), within a county of the first class, as
4810  classified under Section 17-60-104:
4811  (a) the maximum number of housing and transit reinvestment zones at bus rapid transit
4812  stations is three;
4813  (b) the maximum total combined number of housing and transit reinvestment zones and
4814  first home investment zones is 11; and
4815  (c) the maximum total combined number of increment zones, not including a convention
4816  center reinvestment zone, is 14.
4817  Section 61. Section 63N-3a-105 is enacted to read:
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4818  63N-3a-105 (Effective 05/06/26). Rulemaking.
4819       In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4820    office may make rules as necessary to fulfill the duties described in this chapter.
4821  Section 62. Section 63N-3a-106 is enacted to read:
4822  63N-3a-106 (Effective 05/06/26). Political Subdivisions Interim Committee
4823    working group.
4824    (1) The Political Subdivisions Interim Committee shall convene a working group as
4825        described in this section by no later than May 30, 2026, to:
4826        (a) study tax increment financing; and
4827        (b) make a recommendation to the Political Subdivisions Interim Committee by no later
4828  than November 1, 2026, regarding caps on the maximum percentage of tax increment
4829  or the maximum amount of revenue to be generated and utilized through tax
4830  increment financing.
4831    (2) The chairs of the interim committee shall jointly designate members of the working
4832        group described in Subsection (1) as follows:
4833        (a) three legislators from the membership of the interim committee, one of whom shall
4834  be a member of the Senate;
4835        (b) one individual recommended by the Utah League of Cities and Towns who
4836  represents the interests of municipalities;
4837        (c) one individual recommended by the Utah Association of Counties who represents the
4838  interests of counties;
4839        (d) one individual who represents the interests of school districts; and
4840        (e) one individual who represents the tax commission.
4841    (3) The office and the Office of Legislative Research and General Counsel shall provide
4842        staff support to the working group.
4843  Section 63. Section 63N-3a-201 is enacted to read:
4844  Part 2. Creation of Regionally Significant Development Zones
4845  63N-3a-201 (Effective 05/06/26). Process to propose -- Advance consultation --
4846    Proposal requirements -- Consultation and public comment required -- Office review.
4847    (1)(a) A creating entity may propose the creation of a regionally significant development
4848        zone:
4849  (i) within the jurisdictional boundaries of the creating entity; and
4850  (ii) as provided in this section.
4851        (b) One or more creating entities may jointly propose a regionally significant
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       H.B. 507  Enrolled Copy
4852  development zone, and be treated as a single creating entity for the purposes of this
4853  part, if:
4854  (i) the creating entities first enter an interlocal agreement governing how the creating
4855  entities shall manage the zone, if approved; or
4856  (ii) the creating entities include a proposed interlocal agreement the creating entities
4857  will enter upon approval of the zone.
4858  (c) An interlocal agreement described in Subsection (1)(b) shall meet the requirements
4859  of Section 17C-6-102.
4860     (2) Before a creating entity may submit a proposal to the office as described in this section:
4861  (a) the legislative body of the creating entity shall:
4862  (i) submit a draft of the proposal to every school district that would be impacted by
4863  the creation of a regionally significant development zone, as described in the
4864  proposal, to discuss the requirements of the proposal;
4865  (ii) provide a school district described in Subsection (2)(a)(i) no less than 30 calendar
4866  days to offer the creating entity feedback on the draft proposal; and
4867  (iii)(A) hold a public meeting and receive public comment on the proposal to
4868  create a regionally significant development zone; and
4869  (B) provide notice of the public meeting as a class A notice as described in
4870  Section 63G-30-102 for at least 10 days;
4871  (b) if the creating entity is a municipality, the municipal legislative body shall:
4872  (i) submit a draft of the proposal to the county legislative body where the proposed
4873  regionally significant development zone is located; and
4874  (ii) provide the county no less than 30 days to offer the creating entity feedback on
4875  the draft proposal, including a finding of whether the county legislative body
4876  considers the proposed project regionally significant; and
4877  (c) submit a draft of the proposal to every affected local taxing entity that will be
4878  required to participate in the regionally significant development zone at least 30 days
4879  before the creating entity submits a proposal to the office.
4880     (3)(a) A creating entity shall include any feedback or public comment received under
4881  Subsection (2) in a proposal submitted to the office.
4882  (b) A creating entity may provide the public entity's response to any feedback or public
4883  comment described in Subsection (3)(a) along with the proposal.
4884  (c) If a county legislative body makes a finding under Subsection (2)(b)(ii) that a
4885  proposed project is not regionally significant:
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4886  (i) the municipal creating entity may submit a proposal to the office as described in
4887  this section; and
4888  (ii) if the proposal is for a regionally significant economic development opportunity
4889  described in Section 63N-3a-303, the committee may approve the proposal, but
4890  notwithstanding the requirement in Section 63N-3a-203 that all affected taxing
4891  entities participate at the same rate, the county's participation in property tax
4892  increment is limited to a maximum of 40%.
4893    (4) A creating entity shall submit a proposal to the office in a form and manner determined
4894        by the office.
4895    (5) A proposal made under this chapter shall:
4896        (a) demonstrate how the proposed zone addresses:
4897  (i) for a regionally significant transit-oriented development, the objectives and
4898  requirements described in Section 63N-3a-301;
4899  (ii) for a regionally significant first home village, the objectives and requirements
4900  described in Section 63N-3a-302; or
4901  (iii) for a regionally significant economic development opportunity, the objectives
4902  and requirements described in Section 63N-3a-303;
4903        (b) describe the development impediments and market conditions that render a
4904  development cost prohibitive absent the financial incentives described in this chapter
4905  and for which the creating entity requests approval to utilize in the proposal;
4906        (c) include a pro forma analysis that includes data showing the cost difference between:
4907  (i) what type of redevelopment or development could feasibly occur without the
4908  creation of a regionally significant development zone; and
4909  (ii) the type of redevelopment or development that is proposed to occur with the
4910  creation of a regionally significant development zone and the accompanying
4911  regionally significant development zone revenue; and
4912        (d) include any other information the office requires by rule.
4913    (6) A proposal may include a request to capture property tax increment, the entirety of
4914        personal property tax revenue, or both.
4915    (7) A regionally significant development zone may not be smaller than 10 acres.
4916    (8)(a) After receiving a proposal, the office shall:
4917  (i) provide notice of the proposal to any impacted metropolitan planning
4918  organizations;
4919  (ii) provide notice of the proposal to the county assessor and county auditor of every
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       H.B. 507  Enrolled Copy
4920  county in which a proposed regionally significant development zone would be
4921  wholly or partially located;
4922  (iii) evaluate the feasibility of administering the tax implications of the proposal;
4923  (iv) evaluate the pro forma analysis included in the proposal; and
4924  (v) following the evaluations described in Subsections (8)(a)(iii) and (iv), provide
4925  any findings the office makes to the creating entity.
4926  (b) In conducting the evaluations described in Subsections (8)(a)(iii) and (iv), the office:
4927  (i) shall consult with the tax commission and the relevant county assessor and county
4928  auditor; and
4929  (ii) may consult with an independent consultant as described in Section 63N-3a-103.
4930  (c)(i) The office shall provide any findings following the evaluations described in
4931  Subsections (8)(a)(iii) and (iv) to the creating entity.
4932  (ii) After receiving the findings described in Subsection (8)(a)(v), the creating entity
4933  may:
4934  (A) amend the proposal and request the office submit the amended proposal to the
4935  committee; or
4936  (B) request the office submit the original proposal to the committee.
4937     (9) If the office determines a proposal meets the requirements of this section, the office
4938  shall:
4939  (a) notify the creating entity;
4940  (b) provide the proposal to the executive director for the executive director's evaluation
4941  and recommendation, as described in Section 63N-3a-103; and
4942  (c) notify the relevant individuals described in Section 63N-3a-102 that an increment
4943  financing committee is convened to consider a proposal.
4944  Section 64. Section 63N-3a-202 is enacted to read:
4945  63N-3a-202 (Effective 05/06/26). Committee consideration of a proposal.
4946     (1) The proposing creating entity shall present the proposal to the committee in a public
4947  meeting.
4948     (2) Before voting to approve or deny a proposal, the committee shall evaluate and verify
4949  whether the proposal adequately addresses relevant objectives and requirements
4950  described in Part 3, Specific Provisions.
4951     (3) In considering a proposal, a committee may request any information from a creating
4952  entity needed to make a determination about whether to approve or deny a proposal, or
4953  approve a proposal with modifications, including a description of the proposed uses of
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4954        funds and how funds will be used to support public projects related to the regionally
4955        significant development zone.
4956    (4) The committee may:
4957        (a) request changes to the proposal;
4958        (b) vote to approve the proposal, with or without modifications to the proposal; or
4959        (c) vote to deny the proposal.
4960    (5) If the committee votes to approve the proposal, with or without modifications, the
4961        committee shall:
4962        (a) fulfill the requirements of Section 63N-3a-203; and
4963        (b) establish any parameters described in Section 63N-3a-204.
4964  Section 65. Section 63N-3a-203 is enacted to read:
4965  63N-3a-203 (Effective 05/06/26). Approval process -- Creation of a regionally
4966    significant development zone -- Boundaries.
4967    (1) If the committee votes to approve a proposal, as described in Section 63N-3a-202:
4968        (a) a regionally significant development zone is created as of the effective date and
4969  subject to the governance requirements described in Section 63N-3a-206;
4970        (b) affected local taxing entities are required to participate according to the terms
4971  approved by the committee; and
4972        (c) subject to Subsection 63N-3a-201(3)(c), each affected taxing entity is required to
4973  participate at the same rate.
4974    (2)(a) The effective date of a regionally significant development zone is the later of:
4975  (i) January 1 following the approval of the proposal, if the committee approves the
4976  proposal on or before September 30; or
4977  (ii) January 1 following the year after the year in which the committee approves the
4978  proposal.
4979        (b) A creating entity may not trigger the collection of tax increment within a regionally
4980  significant development zone before the effective date.
4981    (3) In approving a proposal, the committee shall establish:
4982        (a) the qualified development zone boundary for the purpose of calculating property tax
4983  increment;
4984        (b) the maximum number of consecutive years a creating entity's agency may collect and
4985  use increment, not to exceed 25 years; and
4986        (c) the maximum amount of tax increment revenue, in total and from each proposed
4987  source, that may be captured in the regionally significant development zone.
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       H.B. 507  Enrolled Copy
4988     (4)(a) In accordance with Section 63N-3a-204, for any proposal requesting approval of
4989  the use of property tax increment, the committee shall also establish:
4990  (i) the property tax base year;
4991  (ii) the percentage of property tax increment allowed to be captured within and used
4992  on behalf of a regionally significant development zone, not to exceed the limits
4993  described in Section 63N-3a-204; and
4994  (iii) the maximum amount of property tax increment revenue that an agency may
4995  collect for a regionally significant development zone.
4996  (b) The base taxable value of land within a regionally significant development zone is
4997  determined as of January 1 of the base year established by the committee under
4998  Subsection (4)(a).
4999  (c)(i) Except as provided in Subsection (4)(c)(ii), a creating entity may propose, and a
5000  committee may approve, the diversion of all the revenue attributed to personal
5001  property tax generated within a regionally significant development zone to the
5002  regionally significant development zone for a period not to exceed 25 years.
5003  (ii) A creating entity proposing a zone described in Part 4, Regionally Significant
5004  Zones with Energy Implications, shall propose the diversion of all the revenue
5005  attributed to personal property tax generated within a regionally significant
5006  development zone to the regionally significant development zone for a period not
5007  to exceed 25 years.
5008  (d) In accordance with Section 63N-3a-204 and except as provided in Section
5009  63N-3a-403, for a proposal requesting approval of the use of property tax increment
5010  or personal property tax diversion, the committee shall establish a percentage of
5011  revenue that the creating entity's agency shall transfer to the state treasurer for deposit
5012  into the State Reinvestment Restricted Account created in Section 51-9-1002, which
5013  shall be at least 5% but no more than 25% of the total annual revenue an agency
5014  receives from property tax sources described in this Subsection (4).
5015     (5) Within 30 days after the committee approves a proposal, the creating entity shall:
5016  (a) record with the recorder of the county in which the regionally significant
5017  development zone is located a document containing:
5018  (i) a description of the land within the regionally significant development zone and, if
5019  applicable, primary project area;
5020  (ii) the approval date; and
5021  (iii) the effective date;
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5022        (b) transmit a copy of the description of the land within the regionally significant
5023  development zone and an accurate map or plat indicating the boundaries of the
5024  regionally significant development zone, and if applicable, primary project area to the
5025  Utah Geospatial Resource Center created under Section 63A-16-505; and
5026        (c) transmit a copy of the approved regionally significant development zone proposal,
5027  map, and legal description of the regionally significant development zone, and if
5028  applicable, primary project area, to:
5029  (i) the auditor, recorder, attorney, surveyor, treasurer, and assessor of the county in
5030  which any part of the regionally significant development zone is located;
5031  (ii) the officer or officers performing the function of auditor or assessor for each
5032  taxing entity that does not use the county assessment roll or collect the taxing
5033  entity's taxes through the county;
5034  (iii) the legislative body or governing board of each taxing entity affected by the
5035  regionally significant development zone;
5036  (iv) the tax commission; and
5037  (v) the State Board of Education.
5038    (6) Within 90 days after the committee approves a proposal, the committee shall provide to
5039        the tax commission:
5040        (a) a statement that the regionally significant development zone is established under this
5041  part;
5042        (b) the approval date of the proposal and the effective date of the regionally significant
5043  development zone;
5044        (c) the qualified development zone boundary, if applicable; and
5045        (d) any information about the regionally significant development zone requested by the
5046  commission.
5047  Section 66. Section 63N-3a-204 is enacted to read:
5048  63N-3a-204 (Effective 05/06/26). Property tax increment -- Personal property
5049    tax revenue diversion -- Remittance to the State Reinvestment Restricted Account.
5050    (1) As used in this section, "designated remitting percentage" means the percentage of
5051        property tax increment revenue established by the committee as described in Subsection
5052        63N-3a-203(4).
5053    (2)(a) A creating entity may propose a qualified development zone boundary that
5054        includes a project area and an impacted primary area.
5055        (b) The committee may establish a qualified development zone boundary that includes:
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       H.B. 507  Enrolled Copy
5056  (i) a project area only; or
5057  (ii) a project area and a proposed impacted primary area.
5058     (3) A creating entity's agency may receive, remit, and use property tax increment in
5059  accordance with this section and as described in Title 17C, Chapter 6, Regionally
5060  Significant Development Zones Act.
5061     (4) The creating entity or creating entity's agency:
5062  (a) may trigger the collection of property tax increment by parcel; and
5063  (b) shall send notice of commencement of collection of property tax increment to the
5064  following entities by no later than October 1 of the year before the year in which
5065  property tax increment collection is proposed to commence:
5066  (i) the tax commission;
5067  (ii) the State Board of Education;
5068  (iii) the state auditor;
5069  (iv) the county auditor and county assessor of each county within the qualified
5070  development zone boundary;
5071  (v) each taxing entity to be affected by collection of property tax within the qualified
5072  development zone boundary; and
5073  (vi) the office.
5074     (5)(a) A county that collects property tax on property located within a qualified
5075  development zone boundary shall, in accordance with Section 59-2-1365, distribute
5076  to the creating entity's agency:
5077  (i) the percentage of property tax increment established by the committee as
5078  described in Subsection 63N-3a-203(4), not to exceed:
5079  (A) 70% for a regionally significant transit-oriented zone;
5080  (B) 70% for a regionally significant first home village; and
5081  (C) 60% for a regionally significant economic development opportunity; and
5082  (ii) if applicable, the percentage of personal property tax revenue generated within
5083  the boundary, as established by the committee under Subsection 63N-3a-203(4).
5084  (b) Property tax revenue distributed to a creating entity's agency in accordance with this
5085  Subsection (5):
5086  (i) is not revenue of the taxing entity, the creating entity, or the creating entity's
5087  agency; and
5088  (ii) constitutes regionally significant development zone funds and shall be
5089  administered as described in Section 17C-6-203.
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5090    (6) The creating entity's agency may receive property tax increment within a qualified
5091        development zone boundary for:
5092        (a) up to 25 total years, subject to any limit established by the committee under
5093  Subsection 63N-3a-203(4); and
5094        (b) no longer than 40 years after the effective date of the regionally significant
5095  development zone.
5096    (7) No later than March 1, the agency for a regionally significant development zone shall
5097        transfer the established remitting percentage of revenue collected in the previous
5098        calendar year to the state treasurer for deposit into the State Reinvestment Restricted
5099        Account created in Section 51-9-1002.
5100    (8) Once the maximum amount of property tax increment has been distributed to the
5101        creating entity's agency, as established by the committee in Subsection 63N-3a-203(4),
5102        the county that collects property tax on property located within a qualified development
5103        zone boundary is no longer obligated to distribute property tax increment generated
5104        within the qualified development zone boundary or personal property tax revenue to the
5105        creating entity's agency.
5106  Section 67. Section 63N-3a-205 is enacted to read:
5107  63N-3a-205 (Effective 05/06/26). Compliance with terms of approved proposal
5108    required -- Modifications to a regionally significant development zone -- Boundary
5109    adjustments.
5110    (1) If a regionally significant development zone is approved by the committee and created
5111        as described in Section 63N-3a-203:
5112        (a) the regionally significant development zone is created according to the terms:
5113  (i) of the approved proposal, or modified approved proposal; and
5114  (ii) established by the committee as described in this part; and
5115        (b) the creating entity or the creating entity's agency shall enter into an entitlement
5116  agreement, development agreement, or participation agreement as necessary or
5117  required to implement the approved proposal and any established terms.
5118    (2) Any aspect of a regionally significant development zone, including the approved use of
5119        zone revenue or the boundary of the qualified development zone, may be amended by
5120        following the same procedure as making a proposal under Section 63N-3a-201, except
5121        the creating entity is not required to submit an additional pro forma analysis unless
5122        requested by the office or the committee.
5123    (3) If the relevant county assessor or county auditor adjusts parcel or lot boundaries
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       H.B. 507  Enrolled Copy
5124  relevant to a regionally significant development zone, the creating entity may make
5125  corresponding adjustments to the qualified development zone.
5126  Section 68. Section 63N-3a-206 is enacted to read:
5127  63N-3a-206 (Effective 05/06/26). Triggering increment collection.
5128        In addition to any other notification requirements in this part, a creating entity of a
5129     regionally significant development zone shall notify each affected taxing entity within the zone
5130     at least 90 days before the creating entity triggers a collection period for property tax
5131     increment for a parcel.
5132  Section 69. Section 63N-3a-207 is enacted to read:
5133  63N-3a-207 (Effective 05/06/26). Payment, use, and administration of regionally
5134     significant development zone revenue.
5135     (1) A creating entity shall designate an agency to:
5136  (a) administer the regionally significant development zone;
5137  (b) promote the objectives for the regionally significant development zone; and
5138  (c) be the custodian of regionally significant development zone revenue, as described in
5139  Title 17C, Chapter 6, Regionally Significant Development Zones Act.
5140     (2) An agency may share regionally significant development zone revenue with another
5141  governmental entity or a private party as described in this section.
5142     (3) Before a governmental entity that is not an agency may receive regionally significant
5143  development zone revenue from the creating entity, the creating entity or creating
5144  entity's agency and the governmental entity shall enter into an agreement governing the
5145  use of the revenue, consistent with this chapter and Title 17C, Chapter 6, Regionally
5146  Significant Development Zones Act.
5147     (4) Before a private party may receive regionally significant development zone revenue, the
5148  creating entity or creating entity's agency and the private party shall enter into an
5149  agreement governing the use of the revenue, consistent with this chapter and Title 17C,
5150  Chapter 6, Regionally Significant Development Zones Act.
5151     (5) A creating entity's agency shall use and be responsible for regionally significant
5152  development zone revenue as described in Section 17C-6-203.
5153     (6) The creating entity of a regionally significant development zone shall be responsible for:
5154  (a) tracking revenue received by the creating entity on behalf of the regionally
5155  significant development zone; and
5156  (b) reporting to the county auditor and tax commission if the creating entity receives the
5157  maximum amount of tax increment revenue from any source, as established by the
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5158  committee under Section 63N-3a-203.
5159  Section 70. Section 63N-3a-208 is enacted to read:
5160  63N-3a-208 (Effective 05/06/26). Applicability to an existing project area.
5161    (1) As used in this section, "maximum allowable increment" means the percent of property
5162        tax increment a regionally significant development zone is authorized to capture and
5163        utilize, as established by the committee under this chapter.
5164    (2) Except as provided in Subsection (4), if a regionally significant development zone
5165        overlaps an area that is part of a project area, as that term is defined in Section
5166        17C-1-102, that parcel may not be triggered for tax increment collection unless the
5167        project area funds collection period, as that term is defined in Section 17C-1-102, has
5168        expired.
5169    (3)(a) Except as provided in Subsection (3)(b), a regionally significant development
5170        zone may not overlap a housing and transit reinvestment zone or a first home
5171        investment zone.
5172        (b) Subject to Subsection (4), a regionally significant development zone may overlap a
5173  housing and transit reinvestment zone or a first home investment zone if:
5174  (i) the regionally significant development zone does not collect property tax
5175  increment for the area overlapping with the housing and transit reinvestment zone
5176  or the first home investment zone; or
5177  (ii) the regionally significant development zone does not collect property tax
5178  increment for the area overlapping with the housing and transit reinvestment zone
5179  or the first home investment zone until the collection period for the housing and
5180  transit reinvestment zone's collection of property tax increment or the first home
5181  investment zone's collection of property tax increment has ended.
5182    (4)(a) If a community reinvestment project area plan captures less than maximum
5183        allowable increment of the property tax increment from a taxing entity, or if a taxing
5184        entity is not participating in the community reinvestment project area plan, because
5185        the agency and relevant taxing entities agreed to capture a lower percentage or agreed
5186        to exclude a taxing entity from the community reinvestment project area plan,
5187        Subsection (3)(a) does not apply.
5188        (b) If, at the creation of a housing and transit reinvestment zone or a first home
5189  investment zone, the taxing entities agreed that tax increment collection would end
5190  on a certain date or after a certain number of years, Subsection (3)(b) does not apply
5191  unless the taxing entities that were involved in the agreement affirmatively agree to
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       H.B. 507  Enrolled Copy
5192  participate in the regionally significant development zone tax increment collection.
5193     (5)(a) Except as provided in Subsection (5)(b), a regionally significant development
5194  zone may not overlap project areas created by the:
5195  (i) Military Installation Development Authority described in Subsection
5196  63H-1-102(17);
5197  (ii) Utah Fairpark Area Investment and Restoration District described in Subsection
5198  11-70-101(24); or
5199  (iii) Utah Inland Port Authority project area described in Subsection 11-58-102(16).
5200  (b) A creating entity may propose, and the committee may approve, a regionally
5201  significant development zone that overlaps with a project area if:
5202  (i) the regional economic development authority that created the project area consents
5203  to the creation of the regionally significant development zone; and
5204  (ii) no more than 60% of tax increment is captured and used by the creating entity's
5205  agency and the regional economic development authority in combination in any
5206  given year.
5207  Section 71. Section 63N-3a-301 is enacted to read:
5208  Part 3. Specific Provisions for Certain Zones
5209  63N-3a-301 (Effective 05/06/26). Provisions specific to a regionally significant
5210     transit-oriented development.
5211     (1) A proposal to create a regionally significant development zone that qualifies as a
5212  regionally significant transit-oriented development, as described in this section, shall
5213  demonstrate how the proposal addresses the following objectives:
5214  (a) higher utilization of public transit;
5215  (b) increasing availability of housing, including affordable housing;
5216  (c) promoting and encouraging development of owner-occupied housing;
5217  (d) improving efficiencies in parking and transportation, including walkability of
5218  communities near public transit facilities;
5219  (e) overcoming development impediments and market conditions that render a
5220  development cost prohibitive absent the proposal and incentives;
5221  (f) conserving water resources through efficient land use;
5222  (g) improving air quality by reducing fuel consumption and motor vehicle trips;
5223  (h) encouraging mixed-use development and investment in transportation and public
5224  transit infrastructure in strategic areas;
5225  (i) strategic land use and municipal planning in major transit investment corridors as
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       Enrolled Copy  H.B. 507
5226  described in Subsection 10-20-404(2);
5227        (j) increasing access to employment and educational opportunities; and
5228        (k) increasing access to child care.
5229    (2) To accomplish the objectives described in Subsection (1), a creating entity that proposes
5230        a regionally significant transit-oriented development as described in this section shall
5231        ensure that the proposal includes:
5232        (a) except as provided in Subsection (3), at least 12% of the proposed dwelling units
5233  within the zone are affordable housing units, with:
5234  (i) up to 9% of the proposed dwelling units occupied or reserved for occupancy by
5235  households with a gross household income equal to or less than 80% of the county
5236  median gross income for households of the same size; and
5237  (ii) at least 3% of the proposed dwelling units occupied or reserved for occupancy by
5238  households with a gross household income equal to or less than 60% of the county
5239  median gross income for households of the same size; and
5240        (b) except as provided in Subsection (4), at least 51% of the developable area within a
5241  zone be dedicated to residential uses and:
5242  (i) an average of at least 50 dwelling units per acre within the acreage of the zone
5243  dedicated to residential uses;
5244  (ii) mixed-use development within the zone; and
5245  (iii) a mix of dwelling units to ensure that at least 25% of the dwelling units have
5246  more than one bedroom.
5247    (3)(a) If the projects within a regionally significant transit-oriented development are
5248        developed in phases, a creating entity and agency shall ensure that each phase is
5249        developed to provide the required 12% of affordable housing units.
5250        (b) A creating entity may allow a regionally significant transit development to be phased
5251  and developed in a manner to provide more of the required affordable housing units
5252  in early phases of development.
5253        (c) A creating entity shall include in a proposal an affordable housing plan, which may
5254  include deed restrictions, to ensure the affordable housing required in the proposal
5255  will continue to meet the definition of affordable housing at least throughout the
5256  entire term of the zone.
5257        (d) If the creating entity meets the affordable housing guidelines of the United States
5258  Department of Housing and Urban Development at 60% area median income at the
5259  time the regionally significant transit-oriented development proposal is approved by
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       H.B. 507  Enrolled Copy
5260  the committee, the creating entity is exempt from the percentage requirements
5261  described in Subsection (2)(a).
5262     (4) For a regionally significant transit-oriented development proposed to be located at a
5263  public transit hub or a bus rapid transit station, the regionally significant transit-oriented
5264  development shall include:
5265  (a) at least 51% of the developable area within a zone as residential uses; and
5266  (b) an average of at least 50 dwelling units per acre within the acreage of the zone
5267  dedicated to residential uses.
5268  Section 72. Section 63N-3a-302 is enacted to read:
5269  63N-3a-302 (Effective 05/06/26). Provisions specific to a regionally significant
5270     first home village.
5271     (1) A proposal to create a regionally significant development zone that qualifies as a
5272  regionally significant first home village, as described in this section, shall demonstrate
5273  how the proposal addresses the following objectives:
5274  (a) improving efficiencies in parking and transportation, including walkability of
5275  communities near public transit facilities, street and path interconnectivity within the
5276  proposed development and connections to surrounding communities, and access to
5277  roadways, public transportation, and active transportation;
5278  (b) improving availability of housing options;
5279  (c) overcoming development impediments and market conditions that render a
5280  development cost prohibitive absent the proposal and incentives;
5281  (d) conserving water resources through efficient land use;
5282  (e) improving air quality by reducing fuel consumption and motor vehicle trips;
5283  (f) encouraging mixed-use development;
5284  (g) strategic land use and municipal planning in major transit investment corridors;
5285  (h) increasing access to employment and educational opportunities;
5286  (i) increasing access to child care; and
5287  (j) improving efficiencies in parking and transportation, including walkability of
5288  communities, street and path interconnectivity within the proposed development and
5289  connections to surrounding communities, and access to roadways, public
5290  transportation, and active transportation.
5291     (2)(a) To promote the creation of walkable communities, a regionally significant first
5292  home village development shall be anchored by a core of high-density residential and
5293  mixed residential-commercial uses, including opportunities for shopping, child care,
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5294        and employment.
5295        (b) To accomplish the objectives described in Subsection (1), a creating entity shall
5296  ensure that the proposal for a regionally significant first home village includes:
5297  (i) subject to Subsection (3), a minimum of 30 housing units per acre:
5298  (A) in at least 51% of the developable area within the first home investment zone;
5299  and
5300  (B) of which 50% must be owner occupied;
5301  (ii) a mixed use development;
5302  (iii) a requirement that at least 25% of homes within the zone remain owner occupied
5303  for at least 25 years from the date of original purchase;
5304  (iv) for homes inside the zone, a requirement that at least 12% of the owner occupied
5305  homes and 12% of the homes that are not owner occupied qualify as affordable
5306  housing; and
5307  (v) a requirement that at least 20% of the extraterritorial homes are affordable
5308  housing.
5309    (3)(a) Subject to Subsection (3)(b), to satisfy the requirements described in Subsection
5310        (2), a regionally significant first home village may include an extraterritorial home to
5311        count toward density and owner-occupancy requirements by:
5312  (i) adding the total number of extraterritorial homes related to the regionally
5313  significant first home village to the total number of homes within the regionally
5314  significant first home village; and
5315  (ii) dividing the sum described in Subsection (3)(a)(i) by a number equal to 51% of
5316  the total number of developable acres within the regionally significant first home
5317  village.
5318        (b) Extraterritorial homes may account for no more than half of the total homes to
5319  calculate density within a first home village.
5320    (4) For a condominium building that is part of a regionally significant first home village
5321        development for purposes of meeting the requirement to have a minimum of 30 housing
5322        units per acre, the requirement that 50% of housing units be owner occupied applies
5323        beginning one year after the day on which the condominium building is complete and
5324        receives a certificate of occupancy from the relevant local land use authority.
5325  Section 73. Section 63N-3a-303 is enacted to read:
5326  63N-3a-303 (Effective 05/06/26). Provisions specific to a regionally significant
5327    economic development opportunity.
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5328     (1) A creating entity with general land use authority over an area may submit a proposal
5329  that does not qualify under Section 63N-3a-301 or 63N-3a-302 as a regionally
5330  significant economic development opportunity.
5331     (2) A proposal for a regionally significant economic development opportunity shall
5332  demonstrate the likelihood that the project will constitute a significant capital
5333  investment, as that term is defined in Section 63N-2-103.
5334     (3) If a proposal for a regionally significant economic development opportunity involves a
5335  large load customer, as that term is defined in Section 54-26-101, or a qualifying data
5336  center, as that term is defined in Section 59-12-102, the proposal shall comply with Part
5337  4, Regionally Significant Zones with Energy Implications.
5338     (4) The executive director and office shall establish additional criteria by rule, in
5339  accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for a
5340  regionally significant economic development opportunity.
5341  Section 74. Section 63N-3a-401 is enacted to read:
5342  Part 4. Regionally Significant Zones with Energy Implications
5343  63N-3a-401 (Effective 05/06/26). Definitions.
5344        As used in this part:
5345     (1) "Incentive" means the same as that term is defined in Section 11-41-201.
5346     (2) "Large load data center" means the same as that term is defined in Section 11-41-201.
5347     (3) "Reinvestment account" means the State Reinvestment Restricted Account created in
5348  Section 51-9-1002.
5349     (4) "Zone" means a regionally significant development zone that includes, or is proposed to
5350  include, a large load data center.
5351  Section 75. Section 63N-3a-402 is enacted to read:
5352  63N-3a-402 (Effective 05/06/26). Incentives prohibited -- Exception.
5353     (1)(a) Except as provided in Subsection (1)(b), a county or municipality may not offer
5354  an incentive for a large load data center that is not located within a zone.
5355  (b) Subsection (1)(a) does not apply to:
5356  (i) a project area established before May 6, 2027; or
5357  (ii) an agreement between a county or municipality and a private entity that was
5358  executed before May 6, 2027.
5359     (2) In addition to the requirements described in Part 2, Creation of Regionally Significant
5360  Development Zones, a creating entity that proposes a zone shall include in the proposal:
5361  (a) a description of the proposed boundaries of the zone;
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5362        (b) an assessment of existing electrical energy infrastructure within and proximate to the
5363  proposed zone;
5364        (c) a development plan that includes:
5365  (i) anticipated infrastructure improvements;
5366  (ii) projected economic benefits to the county or municipality; and
5367  (iii) evidence of local support, as applicable; and
5368        (d) any other information required by the committee.
5369    (3) A proposal for a zone described in this part:
5370        (a) shall include the diversion of all personal property tax revenue generated within the
5371  zone, as described in Subsection 63N-3a-203(4)(c)(ii); and
5372        (b) may include a request to:
5373  (i) capture up to 60% of the property tax increment generated within the zone; and
5374  (ii) divert up to 100% of personal property tax revenue generated within the zone.
5375    (4) A proposed zone may not overlap with:
5376        (a) a project area designated by a community reinvestment agency; or
5377        (b) a project area created by the Utah Inland Port Authority or the Military Installation
5378  Development Authority.
5379  Section 76. Section 63N-3a-403 is enacted to read:
5380  63N-3a-403 (Effective 05/06/26). Committee consideration of a zone with energy
5381    implications.
5382    (1) The committee shall approve an application for a zone designation if the application
5383        demonstrates that:
5384        (a) the proposed zone includes land suitable for a large load data center based on:
5385  (i) access to electrical energy resources; and
5386  (ii) adequate water supply; and
5387        (b) the proposed development plan:
5388  (i) aligns with the state's regional and statewide economic development objectives;
5389  (ii) includes realistic timelines and milestones;
5390  (iii) identifies specific infrastructure improvements; and
5391  (iv) quantifies projected economic benefits to the residents who live near the zone.
5392    (2)(a) The committee shall establish the percentage of property tax increment a
5393        regionally significant development zone is authorized to capture and utilize as
5394        described in Subsection 63N-3a-203(4), including establishing the percentage of
5395        property tax increment that shall be deposited into the reinvestment account.
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       H.B. 507  Enrolled Copy
5396  (b) If the committee approves a proposal to divert personal property tax revenue, the
5397  committee shall establish:
5398  (i) the percentage of personal property tax revenue that shall be diverted to the county
5399  or municipality that creates the zone; and
5400  (ii) the remitting percentage that the county treasurer shall deposit into the
5401  reinvestment account.
5402  (c) The remitting percentage of property tax increment revenue for a zone described in
5403  this part is established in Subsection (3).
5404     (3) Beginning January 1 following the designation of a zone as described in this section, the
5405  county treasurer shall:
5406  (a) transfer the percentage, established by the committee under Subsection (2)(b)(i), of
5407  revenue attributed to personal property tax within the zone to the agency managing
5408  the zone;
5409  (b) transfer the remitting percentage, established by the committee under Subsection
5410  (2)(b)(ii), of revenue attributed to personal property tax within the zone into the
5411  reinvestment account;
5412  (c) transfer the percentage of property tax increment, as established by the committee
5413  under Subsection (2)(a), generated within the zone to the zone's creating entity;
5414  (d) deposit the percentage of tax increment established under Subsection (2)(a) for
5415  deposit into the reinvestment account into the reinvestment account; and
5416  (e) make the distributions required under this Subsection (3):
5417  (i) at the same time as regular annual property tax distributions; and
5418  (ii) using the same method as other property tax distributions.
5419     (4) A county or municipality that receives revenue under Subsection (3) may:
5420  (a) transfer revenue to the agency managing the zone, to be used as regionally
5421  significant development zone revenue as described in Title 17C, Chapter 6,
5422  Regionally Significant Development Zones Act;
5423  (b) transfer revenue to a regional economic development authority with a project area
5424  that overlaps the zone, as described in Subsection 63N-3a-208(7)(b), in accordance
5425  with an agreement between the county or municipality and the regional economic
5426  development authority;
5427  (c) subject to Subsection (5), use the revenue to provide an incentive;
5428  (d) use the revenue to facilitate infrastructure development, including electrical energy
5429  infrastructure development and water infrastructure development; and
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       Enrolled Copy  H.B. 507
5430        (e) use the revenue to support workforce development programs within the county or
5431  municipality.
5432    (5)(a) Beginning May 6, 2027, a county or municipality, or a regional economic
5433        development authority that shares zone revenue with a county or municipality, may
5434        only provide an incentive to a large load data center from the revenue the county or
5435        municipality receives, or that is shared with the regional economic development
5436        authority, of up to 80% of the diverted personal property tax revenue as described
5437        under Subsection (3).
5438        (b) Notwithstanding Subsection (5)(a):
5439  (i) a county that levies the county energy excise tax authorized in Section 59-35-201
5440  may offer up to 80% of the revenue the county collects annually from the county
5441  energy excise tax as an incentive for a large load data center, as described in
5442  Section 11-41-202; and
5443  (ii) a municipality that levies the municipal energy tax authorized in Title 10, Chapter
5444  1, Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the
5445  revenue generated by the municipal energy tax as an incentive to a large load data
5446  center, as described in Section 11-41-202.
5447    (6) Nothing in this section authorizes a political subdivision other than one described in
5448        Subsection (4) or (5) to offer an incentive to a large load data center, as described in
5449        Title 11, Chapter 41, Part 2, Prohibition on Tax Increment Incentives for Large Load
5450        Data Centers Act.
5451  Section 77. Section 63N-3a-501 is enacted to read:
5452  Part 5. Reporting
5453  63N-3a-501 (Effective 05/06/26). Reporting.
5454    (1) After the effective date of a regionally significant development zone, as described in
5455        Section 63N-3a-203, the creating entity shall provide a written report, no later than
5456        August 1, on the creating entity's and creating entity's agency's activities to implement
5457        the objectives of the regionally significant development zone to the executive director.
5458    (2) The executive director shall annually provide a written report, no later than October 1,
5459        summarizing all reports received under Subsection (1) and including any
5460        recommendations to the Legislature for statutory changes to this chapter, to the
5461        Economic Development and Workforce Services Interim Committee.
5462  Section 78. Section 79-6-1104 is amended to read:
5463  79-6-1104 (Effective 05/06/26). Electrical energy development zones -- Property
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       H.B. 507  Enrolled Copy
5464     tax differential.
5465     (1) As used in this section:
5466  (a) "Base taxable value" means the value of property within an electrical energy
5467  development zone, as shown on the assessment roll last equalized before the creation
5468  of the electrical energy development zone.
5469  (b) "Community reinvestment agency" means the same as that term is defined in Section
5470  17C-1-102.
5471  (c) "Community reinvestment project area" means the same as that term is defined in
5472  Section 17C-1-102.
5473  (d) "Municipal power project" means an electrical energy project that:
5474  (i) is operated by or on behalf of a municipality; and
5475  (ii) exclusively serves customers within that municipality's jurisdictional boundaries.
5476  (e) "Property tax differential" means the difference between:
5477  (i) the amount of property tax revenues generated each tax year by all taxing entities
5478  from an electrical energy development zone, using the current assessed value of
5479  the property; and
5480  (ii) the amount of property tax revenues that would be generated from that same area
5481  using the base taxable value of the property.
5482  (f) "[State land use] Regional economic development authority" means:
5483  (i) the Utah Inland Port Authority created in Section 11-58-201;
5484  (ii) the Military Installation Development Authority created in Section 63H-1-201;
5485  (iii) the School and Institutional Trust Lands Administration created in Section
5486  53C-1-201; or
5487  (iv) any other land use authority created by the state that has jurisdiction over state
5488  lands.
5489     (2)(a) Except as provided in Subsection (2)(b), a county or municipality may not offer
5490  financial incentives for a baseload electrical energy project that is not located within
5491  a designated electrical energy development zone.
5492  (b) Subsection (2)(a) does not apply to:
5493  (i) financial incentives offered for:
5494  (A) a municipal power project;[ or]
5495  (B) an electrical energy project that exclusively utilizes intermittent resources; or
5496  (C) an electrical energy project that is not a nuclear energy project; or
5497  (ii) an electrical energy project for which a project area plan has been approved
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       Enrolled Copy  H.B. 507
5498  before July 1, 2026.
5499    (3) A county or municipality may:
5500        (a) pass a resolution declaring an intent to establish within the county or municipality
5501  boundaries an energy development zone;
5502        (b) enter into an interlocal agreement with the council outlining each parties'
5503  responsibilities relating to an energy development zone; and
5504        (c) apply to the council for the designation of an electrical energy development zone by
5505  submitting:
5506  (i) a description of the proposed boundaries of the electrical energy development
5507  zone;
5508  (ii) an assessment of existing electrical energy infrastructure within and proximate to
5509  the proposed electrical energy development zone;
5510  (iii) a development plan that includes:
5511  (A) proposed electrical energy development projects;
5512  (B) anticipated infrastructure improvements;
5513  (C) projected economic benefits to the county; and
5514  (D) evidence of local support including any interlocal agreement entered into
5515  between the county or municipality and the council, as applicable;
5516  (iv) if the applicant is a municipality, evidence of coordination with the county in
5517  which the proposed electrical energy development zone is located, including any
5518  interlocal agreement entered into between the county or municipality and the
5519  council, as applicable;
5520  (v) if the applicant is a county and any portion of the proposed electrical energy
5521  development zone is within the boundaries of a municipality, evidence of an
5522  agreement with the municipality regarding the establishment of the electrical
5523  energy development zone; and
5524  (vi) any other information required by the council.
5525    (4) A [state land use] regional economic development authority may:
5526        (a) propose an electrical energy development zone within lands under [its] the regional
5527  economic development authority's jurisdiction; and
5528        (b) apply to the council for the designation of an electrical energy development zone by
5529  submitting:
5530  (i) a description of the proposed boundaries of the electrical energy development
5531  zone;
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       H.B. 507  Enrolled Copy
5532  (ii) an assessment of existing electrical energy infrastructure within and proximate to
5533  the proposed electrical energy development zone;
5534  (iii) a development plan that includes:
5535  (A) proposed electrical energy development projects;
5536  (B) anticipated infrastructure improvements; and
5537  (C) projected economic benefits;
5538  (iv) evidence that the proposed zone is consistent with applicable land use plans and
5539  regulations; and
5540  (v) any other information required by the council.
5541     (5) The council shall:
5542  (a) approve an application for electrical energy development zone designation if the
5543  application demonstrates:
5544  (i) the proposed electrical energy development zone includes land suitable for
5545  electrical energy development based on:
5546  (A) access to electrical energy resources;
5547  (B) proximity to existing or planned transmission infrastructure;
5548  (C) adequate transportation access; and
5549  (D) sufficient land area for proposed development; and
5550  (ii) the development plan:
5551  (A) aligns with state energy policy under Section 79-6-301;
5552  (B) includes realistic timelines and milestones;
5553  (C) identifies specific infrastructure improvements; and
5554  (D) quantifies projected economic benefits;
5555  (b) make a determination on an application within 60 days of submission;
5556  (c) provide written notice to the county or municipality explaining the basis for approval
5557  or denial;
5558  (d) if an electrical energy development zone overlaps with an area designated by a
5559  community reinvestment agency as a community reinvestment project area as of May
5560  7, 2025, enter into an agreement with the community reinvestment agency to
5561  determine the percentage division of the property tax differential between:
5562  (i) the Electrical Energy Development Investment Fund; and
5563  (ii) the community reinvestment agency; and
5564  (e) if an electrical energy development zone overlaps with an inland port project, enter
5565  into an agreement with the Utah Inland Port Authority to determine the percentage
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       Enrolled Copy  H.B. 507
5566  division of the property tax differential between:
5567  (i) the Electrical Energy Development Investment Fund; and
5568  (ii) the Utah Inland Port Authority created in Section 11-58-201.
5569    (6) Within 30 days after the council designates an electrical energy development zone:
5570        (a) the county auditor shall certify to the council the base taxable value of property
5571  within the electrical energy development zone; and
5572        (b) the county shall transmit to the council copies of the property tax assessment rolls for
5573  all property within the electrical energy development zone.
5574    (7)(a) Each year, the county auditor shall:
5575  (i) determine the amount of the property tax differential for the electrical energy
5576  development zone by comparing:
5577  (A) the current assessed value of property within the electrical energy
5578  development zone; and
5579  (B) the base taxable value of property within the electrical energy development
5580  zone;
5581  (ii) inform the county treasurer of the property tax differential amount; and
5582  (iii) provide notice to the council of the amount calculated under this Subsection
5583  (7)(a).
5584        (b) The county treasurer shall transfer the property tax differential to the council for
5585  deposit into the Electrical Energy Development Investment Fund created in Section
5586  79-6-1105, subject to any agreements entered into under Subsections (5)(d) and (5)(e).
5587        (c) The county treasurer shall make distributions required under this section:
5588  (i) at the same time as regular annual property tax distributions; and
5589  (ii) using the same method as other property tax distributions.
5590    (8) For property tax differential not subject to Subsection (5)(d) the council may enter into
5591        agreements with taxing entities regarding the allocation of the property tax differential.
5592  Section 79. Repealer.
5593  This bill repeals:
5594  Section 11-41-101, Title.
5595  Section 80. Effective Date.
5596    This bill takes effect on May 6, 2026.
5597  Section 81. Retrospective operation.
5598    Section 63N-3-605 (Effective 05/06/26) (Applies beginning 05/04/22) has retrospective
5599    operation to May 4, 2022.
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       H.B. 507  Enrolled Copy
5600  Section 82. Coordinating H.B. 507 with H.B. 475.
5601     If H.B. 507, State Coordination of Regional and Local Economic Development Projects
5602     Amendments, and H.B. 475, Development Planning and Coordination Amendments, both pass
5603     and become law, the Legislature intends that, on May 6, 2026, Subsection 63G-2-206(4)
5604     enacted in H.B. 507 be amended to read:
5605     "(4) A record that is classified as protected as economic development information under
5606     Subsection 63G-2-305(2)(b):
5607     (a) may be provided by the governmental entity that possesses the record and classified the
5608     record as protected to another governmental entity in lieu of the second governmental entity
5609     entering into a nondisclosure agreement with the person that requested the record be treated as
5610     protected under Section 63G-2-309;
5611     (b) may be shared with the following entities when the entities are considering an economic
5612     development project:
5613  (i) the Governor's Office of Economic Development;
5614  (ii) the Utah Inland Port Authority created in Section 11-58-201;
5615  (iii) the Military Installation Development Authority created in Section 63H-1-201;
5616  (iv) the Point of the Mountain State Land Authority created in Section 11-59-201;
5617  (v) the Utah Fairpark Area Investment and Restoration District created in Section
5618     11-70-201;
5619  (vi) the Economic Development Council created in Section 63N-1a-501;
5620  (vii) a county where the economic development opportunity may take place or be sited;
5621     and
5622  (viii) a municipality where the economic development opportunity may take place or be
5623     sited;
5624     (c) remains protected when shared as described in this Subsection (4); and
5625     (d) shall be treated as a protected record by any governmental entity that receives the record
5626     in accordance with this Subsection (4).".
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