UT
Utah Senate Bill SB0129

Utah 2025 Regular Session

Utah Senate Bill SB0129 Compare Versions

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1-Enrolled Copy S.B. 129
1+02-27 09:56 3rd Sub. (Ivory) S.B. 129
2+James A. Dunnigan proposes the following substitute bill:
23 1
34 Higher Education Development Areas
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Chris H. Wilson
78 House Sponsor: Steve Eliason
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill enacts provisions relating to the development of property owned by certain higher
1617 6
1718 education institutions.
1819 7
1920 Highlighted Provisions:
2021 8
2122 This bill:
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2324 ▸ authorizes certain higher education institutions to designate a development area consisting
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2526 of property owned by the institution;
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2728 ▸ provides a process for an institution to adopt a resolution designating a development area;
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2930 ▸ requires an institution to establish a fund for revenue from the development area and
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3132 provides for uses of money in the fund;
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3334 ▸ provides limitations on a member of the board of trustees regarding participation in
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3536 development actions and requires a member of a board of trustees to disclose a conflict
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3738 before the board of trustees approves a development agreement;
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3940 ▸ requires payment of privilege tax on leased property within a development area and
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4142 describes the method for a county treasurer to distribute privilege tax revenue to the
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4344 institution; and
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4546 ▸ requires the board of trustees to provide an annual report to the Higher Education
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4748 Appropriations Subcommittee for each development area.
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4950 Money Appropriated in this Bill:
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5152 None
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5354 Other Special Clauses:
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5556 This bill provides a special effective date.
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5758 Utah Code Sections Affected:
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59-ENACTS: S.B. 129 Enrolled Copy
60+ENACTS:
6061 28
6162 53B-20-108, Utah Code Annotated 1953
63+3rd Sub. S.B. 129 3rd Sub. (Ivory) S.B. 129 02-27 09:56
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6365
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6567 Be it enacted by the Legislature of the state of Utah:
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6769 Section 1. Section 53B-20-108 is enacted to read:
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6971 53B-20-108 . Development of university property.
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7173 (1) As used in this section:
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7375 (a) "Board of trustees" means the board of trustees of an eligible university.
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7577 (b) "Conflict" means a situation in which a board of trustees member or a family
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7779 member of a board of trustees member will or is likely to receive a direct financial
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7981 benefit because of the development of eligible university property within a
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8183 development area.
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8385 (c) "Designation resolution" means a board of trustees' resolution designating eligible
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8587 university property as a development area.
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8789 (d) "Development action" means:
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8991 (i) a board of trustees' deliberations on whether to adopt a designation resolution;
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9193 (ii) a board of trustees' adoption of a designation resolution;
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9395 (iii) a board of trustees' deliberations on whether to approve a development
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9597 agreement; or
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9799 (iv) a board of trustees' approval of a development agreement.
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99101 (e) "Development agreement" means an agreement between an eligible university and a
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101103 development partner that governs the development of eligible university property
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103105 within a development area.
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105107 (f) "Development area" means a single, contiguous area that:
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107109 (i) consists only of eligible university property;
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109111 (ii) is no larger than 75 acres; and
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111113 (iii) the board of trustees designates for development or redevelopment in a
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113115 designation resolution under this section.
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115117 (g) "Development fund" means the fund described in and established under Subsection
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117119 (4).
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119121 (h) "Development partner" means a person who enters into a development agreement
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121123 with an eligible university to develop or redevelop eligible university property within
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123125 a development area.
124126 60
125127 (i) "Direct financial benefit":
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127129 (i) means any form of financial benefit that accrues to an individual directly,
128-- 2 - Enrolled Copy S.B. 129
129130 62
130131 including:
132+- 2 - 02-27 09:56 3rd Sub. (Ivory) S.B. 129
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132134 (A) compensation, commission, or any other form of a payment or increase of
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134136 money; and
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136138 (B) an increase in the value of a business or property; and
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138140 (ii) does not include a financial benefit that accrues to the public generally.
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140142 (j) "Eligible university" means an institution of higher education listed in Subsection
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142144 53B-1-102(1)(a).
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144-(k) "Eligible university property" means real property owned by an eligible university as
146+(k) "Eligible university property" means real property owned by an eligible university Ĥ→
147+69a
148+as of January 1, 2025 ←Ĥ .
145149 70
146-of January 1, 2025.
150+(l) "Family member" means a parent, spouse, sibling, child, or grandchild.
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148-(l) "Family member" means a parent, spouse, sibling, child, or grandchild.
152+(m) "Leased property" means eligible university property that:
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150-(m) "Leased property" means eligible university property that:
154+(i) is within a development area; and
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152-(i) is within a development area; and
156+(ii) an eligible university leases to a private person.
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154-(ii) an eligible university leases to a private person.
158+(n) "Privilege tax" means a tax imposed under Section 59-4-101.
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156-(n) "Privilege tax" means a tax imposed under Section 59-4-101.
160+(2)(a) Except as provided in Subsection (2)(f), before January 1, 2035, an eligible
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158-(2)(a) Except as provided in Subsection (2)(f), before January 1, 2035, an eligible
162+university may, by resolution of the eligible university's board of trustees, designate
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160-university may, by resolution of the eligible university's board of trustees, designate
164+eligible university property as a development area.
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162-eligible university property as a development area.
166+(b) Before adopting a designation resolution, a board of trustees shall:
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164-(b) Before adopting a designation resolution, a board of trustees shall:
168+(i) obtain approval from the Utah Board of Higher Education of the geographic area
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166-(i) obtain approval from the Utah Board of Higher Education of the geographic area
170+proposed to be designated as a development area; and
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168-proposed to be designated as a development area; and
172+(ii) after obtaining approval from the Utah Board of Higher Education under
169173 82
170-(ii) after obtaining approval from the Utah Board of Higher Education under
174+Subsection (2)(b)(i):
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172-Subsection (2)(b)(i):
176+(A) provide notice of the public hearing required under Subsection (2)(b)(ii)(B),
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174-(A) provide notice of the public hearing required under Subsection (2)(b)(ii)(B),
178+as required for a class A notice under Section 63G-30-102, for at least seven
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176-as required for a class A notice under Section 63G-30-102, for at least seven
180+days before the day of the public hearing; and
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178-days before the day of the public hearing; and
182+(B) hold a public hearing on the proposed adoption of a designation resolution.
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180-(B) hold a public hearing on the proposed adoption of a designation resolution.
184+(c) A notice under Subsection (2)(b)(ii)(A) shall include a copy of the proposed
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182-(c) A notice under Subsection (2)(b)(ii)(A) shall include a copy of the proposed
186+designation resolution.
183187 89
184-designation resolution.
188+(d) A designation resolution, including a proposed designation resolution that
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186-(d) A designation resolution, including a proposed designation resolution that
190+accompanies a notice under Subsection (2)(b)(ii)(A), shall:
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188-accompanies a notice under Subsection (2)(b)(ii)(A), shall:
192+(i) accurately describe the boundary of the proposed development area;
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190-(i) accurately describe the boundary of the proposed development area;
194+(ii) describe the development that is proposed to occur in the proposed development
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192-(ii) describe the development that is proposed to occur in the proposed development
196+area; and
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194-area; and
198+(iii) estimate the amount and sources of revenue the eligible university expects to
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196-(iii) estimate the amount and sources of revenue the eligible university expects to
197-- 3 - S.B. 129 Enrolled Copy
200+receive from the development area.
201+- 3 - 3rd Sub. (Ivory) S.B. 129 02-27 09:56
198202 96
199-receive from the development area.
203+(e) Before adopting a designation resolution, a board of trustees may modify the
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201-(e) Before adopting a designation resolution, a board of trustees may modify the
205+proposed designation resolution to:
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203-proposed designation resolution to:
207+(i) address concerns raised in a public hearing held under Subsection (2)(b)(ii)(B); or
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205-(i) address concerns raised in a public hearing held under Subsection (2)(b)(ii)(B); or
209+(ii) clarify or adjust provisions of the proposed designation resolution, as the board of
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207-(ii) clarify or adjust provisions of the proposed designation resolution, as the board of
211+trustees considers appropriate.
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209-trustees considers appropriate.
213+(f) A board of trustees may not adopt a designation resolution if:
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211-(f) A board of trustees may not adopt a designation resolution if:
215+(i) the board of trustees has previously adopted a designation resolution; or
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213-(i) the board of trustees has previously adopted a designation resolution; or
217+(ii) the area in the proposed development area would overlap with part or all of:
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215-(ii) the area in the proposed development area would overlap with part or all of:
219+(A) a community reinvestment project area created under Title 17C, Chapter 5,
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217-(A) a community reinvestment project area created under Title 17C, Chapter 5,
221+Part 1, Community Reinvestment Project Area Plan, as that project area exists
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219-Part 1, Community Reinvestment Project Area Plan, as that project area exists
223+on Ĥ→ [May 7, 2025] January 1, 2025 ←Ĥ ; or
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221-on January 1, 2025; or
225+(B) a housing and transit reinvestment zone created under Title 63N, Chapter 3,
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223-(B) a housing and transit reinvestment zone created under Title 63N, Chapter 3,
227+Part 6, Housing and Transit Reinvestment Zone Act, as that zone exists on Ĥ→ [
228+108a
229+May ] ←Ĥ
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225-Part 6, Housing and Transit Reinvestment Zone Act, as that zone exists on
231+ Ĥ→ [7, 2025] January 1, 2025 ←Ĥ .
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227-January 1, 2025.
233+(3) Within 30 days after a board of trustees' adoption of a designation resolution, the board
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229-(3) Within 30 days after a board of trustees' adoption of a designation resolution, the board
235+of trustees or the board of trustees' delegee shall deliver a copy of the designation
230236 112
231-of trustees or the board of trustees' delegee shall deliver a copy of the designation
237+resolution to:
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233-resolution to:
239+(a) the clerk of the municipality in which the development area that is the subject of the
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235-(a) the clerk of the municipality in which the development area that is the subject of the
241+designation resolution is located; and
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237-designation resolution is located; and
243+(b) the assessor, treasurer, and auditor of the county in which the development area that
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239-(b) the assessor, treasurer, and auditor of the county in which the development area that
245+is the subject of the designation resolution is located.
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241-is the subject of the designation resolution is located.
247+(4)(a) Upon adoption of a designation resolution, a board of trustees shall establish a
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243-(4)(a) Upon adoption of a designation resolution, a board of trustees shall establish a
249+separate fund related to the development area that is the subject of the designation
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245-separate fund related to the development area that is the subject of the designation
251+resolution.
246252 120
247-resolution.
253+(b) An eligible university shall deposit into a development fund all money the eligible
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249-(b) An eligible university shall deposit into a development fund all money the eligible
255+university receives from the development and lease of eligible university property
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251-university receives from the development and lease of eligible university property
257+within a development area.
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253-within a development area.
259+(c) Money in a development fund shall be accounted for separately from any other fund
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255-(c) Money in a development fund shall be accounted for separately from any other fund
261+of the eligible university.
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257-of the eligible university.
263+(d) An eligible university may use money in a development fund for:
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259-(d) An eligible university may use money in a development fund for:
265+(i) expenses associated with the development of the development area;
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261-(i) expenses associated with the development of the development area;
267+(ii) capital facility projects of the eligible university;
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263-(ii) capital facility projects of the eligible university;
269+(iii) operation and maintenance costs associated with capital facilities of the eligible
270+- 4 - 02-27 09:56 3rd Sub. (Ivory) S.B. 129
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265-(iii) operation and maintenance costs associated with capital facilities of the eligible
266-- 4 - Enrolled Copy S.B. 129
272+university; or
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268-university; or
274+(iv) any other eligible university-related purpose.
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270-(iv) any other eligible university-related purpose.
276+(5) An eligible university may enter into a development agreement.
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272-(5) An eligible university may enter into a development agreement.
278+(6)(a) A board of trustees member may not participate in a development action if the
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274-(6)(a) A board of trustees member may not participate in a development action if the
280+board of trustees member or a family member of the board of trustees member owns
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276-board of trustees member or a family member of the board of trustees member owns
282+an interest in, is directly affiliated with, or is an employee or officer of a private firm,
277283 135
278-an interest in, is directly affiliated with, or is an employee or officer of a private firm,
284+private company, or other private entity that the board of trustees member reasonably
279285 136
280-private company, or other private entity that the board of trustees member reasonably
286+believes is likely to participate in or receive a direct financial benefit from the
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282-believes is likely to participate in or receive a direct financial benefit from the
288+development of land that is the subject of a development agreement.
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284-development of land that is the subject of a development agreement.
290+(b) Before the board of trustees approves a development agreement, the board of trustees
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286-(b) Before the board of trustees approves a development agreement, the board of trustees
292+shall require any member with a conflict to disclose the conflict in writing to the
287293 140
288-shall require any member with a conflict to disclose the conflict in writing to the
294+board of trustees.
289295 141
290-board of trustees.
296+(c) Nothing in this Subsection (6) affects the application or effect of any other code
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292-(c) Nothing in this Subsection (6) affects the application or effect of any other code
298+provision applicable to a board of trustees member relating to ethics or conflicts of
293299 143
294-provision applicable to a board of trustees member relating to ethics or conflicts of
300+interest.
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296-interest.
302+(7)(a) Beginning January 1 of the year immediately following the execution of a
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298-(7)(a) Beginning January 1 of the year immediately following the execution of a
304+development agreement, the possession or other beneficial use enjoyed by a person of
299305 146
300-development agreement, the possession or other beneficial use enjoyed by a person of
306+leased property that is located within the development area subject to the
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302-leased property that is located within the development area subject to the
308+development agreement shall be subject to Title 59, Chapter 4, Privilege Tax, if that
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304-development agreement shall be subject to Title 59, Chapter 4, Privilege Tax, if that
310+leased property is used in connection with a business conducted for profit.
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306-leased property is used in connection with a business conducted for profit.
312+(b) The treasurer of the county in which the leased property described in Subsection
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308-(b) The treasurer of the county in which the leased property described in Subsection
314+(7)(a) is located shall, in the manner and at the time provided in Section 59-2-1365:
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310-(7)(a) is located shall, in the manner and at the time provided in Section 59-2-1365:
316+(i) collect privilege tax from a lessee of the leased property; and
311317 152
312-(i) collect privilege tax from a lessee of the leased property; and
318+(ii) distribute 80% of the privilege tax revenue to the eligible university.
313319 153
314-(ii) distribute 80% of the privilege tax revenue to the eligible university.
320+(8)(a) A board of trustees shall present a written report to the Higher Education
315321 154
316-(8)(a) A board of trustees shall present a written report to the Higher Education
322+Appropriations Subcommittee no later than September 30 of each year after the board
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318-Appropriations Subcommittee no later than September 30 of each year after the board
324+of trustees' adoption of a designation resolution.
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320-of trustees' adoption of a designation resolution.
326+(b) A report under Subsection (8)(a) shall:
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322-(b) A report under Subsection (8)(a) shall:
328+(i) describe the development taking place or expected to take place within the
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324-(i) describe the development taking place or expected to take place within the
330+development area; and
325331 159
326-development area; and
332+(ii) provide a summary of money deposited into and expended from the development
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328-(ii) provide a summary of money deposited into and expended from the development
334+fund for that development area.
329335 161
330-fund for that development area.
336+Section 2. Effective Date.
331337 162
332-Section 2. Effective Date.
338+This bill takes effect:
339+- 5 - 3rd Sub. (Ivory) S.B. 129 02-27 09:56
333340 163
334-This bill takes effect:
335-- 5 - S.B. 129 Enrolled Copy
341+(1) except as provided in Subsection (2), May 7, 2025; or
336342 164
337-(1) except as provided in Subsection (2), May 7, 2025; or
343+(2) if approved by two-thirds of all members elected to each house:
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339-(2) if approved by two-thirds of all members elected to each house:
345+(a) upon approval by the governor;
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341-(a) upon approval by the governor;
347+(b) without the governor's signature, the day following the constitutional time limit of
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343-(b) without the governor's signature, the day following the constitutional time limit of
349+Utah Constitution, Article VII, Section 8; or
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345-Utah Constitution, Article VII, Section 8; or
346-169
347351 (c) in the case of a veto, the date of veto override.
348352 - 6 -