02-18 09:07 S.B. 179 1 Local Regulation of Business Entities Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Calvin R. Musselman House Sponsor: Thomas W. Peterson 2 3 LONG TITLE 4 General Description: 5 This bill enacts provisions related to local classification and approval of new and unlisted 6 business uses. 7 Highlighted Provisions: 8 This bill: 9 ▸ defines terms; and 10 ▸ requires each municipality and county to enact a land use regulation establishing a 11 process for reviewing a business use not listed as an approved use in existing ordinances. 12 Money Appropriated in this Bill: 13 None 14 Other Special Clauses: 15 None 16 Utah Code Sections Affected: 17 ENACTS: 18 10-9a-507.5, Utah Code Annotated 1953 19 17-27a-506.5, Utah Code Annotated 1953 20 21 Be it enacted by the Legislature of the state of Utah: 22 Section 1. Section 10-9a-507.5 is enacted to read: 23 10-9a-507.5 . Classification of new and unlisted business uses. 24 (1) As used in this section: 25 (a) "Classification request" means a request to determine whether a proposed business 26 use aligns with an existing land use specified in a municipality's land use ordinances. 27 (b) "New or unlisted business use" means a business activity that does not align with an 28 existing land use specified in a municipality's land use ordinances. 29 (2)(a) Each municipality shall incorporate into the municipality's land use ordinances a 30 process for reviewing and approving a new or unlisted business use and designating S.B. 179 S.B. 179 02-18 09:07 31 an appropriate zone or zones for an approved use. 32 (b) The process described in Subsection (2)(a) shall: 33 (i) detail how an applicant may submit a classification request; 34 (ii) establish a procedure for the municipality to review a classification request, 35 including: 36 (A) providing a land use authority with criteria to determine whether a proposed 37 use aligns with an existing use; and 38 (B) allowing an applicant to proceed under the regulations of an existing use if a 39 land use authority determines a proposed use aligns with that existing use; 40 (iii) provide that if a use is determined to be a new or unlisted business use: 41 (A) the applicant shall submit an application for approval of the new or unlisted 42 business use to the legislative body for review; 43 (B) the legislative body shall consider and determine whether to approve or deny 44 the new or unlisted business use; and 45 (C) Ŝ→ [the legislative body shall issue an approval or denial of the new or 45a unlisted ] ←Ŝ 46 Ŝ→ [business use within 60 days after the day on which the applicant 46a submits an ] ←Ŝ 47 Ŝ→ [application for approval if the applicant responds promptly to requests 47a for ] ←Ŝ 48 Ŝ→ [additional information and appears at required hearings;] 48a the legislative body shall approve or deny the new or unlisted business use, 48b within a time frame the legislative body establishes by ordinance, if the 48c applicant responds to requests for additional information within a time frame 48d established by the municipality and appears at required hearings; ←Ŝ 49 (iv) provide that if the legislative body approves a proposed new or unlisted business 50 use, the legislative body shall designate an appropriate zone or zones for the 51 approved use; and 52 (v) provide that if the legislative body denies a proposed new or unlisted business 53 use, or if an applicant disagrees with the land use authority's classification of the 54 proposed use, the legislative body shall: 55 (A) notify the applicant in writing of each reason for the classification or denial; 56 and - 2 - 02-18 09:07 S.B. 179 57 (B) offer the applicant an opportunity to challenge the classification or denial 58 through an administrative appeal process established by the municipality. 59 (3) Each municipality shall amend each land use ordinance that contains a list of approved 60 or prohibited business uses to include a reference to the process for petitioning to 61 approve a new or unlisted business use, as described in Subsection (2). 62 Section 2. Section 17-27a-506.5 is enacted to read: 63 17-27a-506.5 . Classification of new and unlisted business uses. 64 (1) As used in this section: 65 (a) "Classification request" means a request to determine whether a proposed business 66 use aligns with an existing land use specified in a county's land use ordinances. 67 (b) "New or unlisted business use" means a business activity that does not align with an 68 existing land use specified in a county's land use ordinances. 69 (2)(a) Each county shall incorporate into the county's land use ordinances a process for 70 reviewing and approving a new or unlisted business use and designating an 71 appropriate zone or zones for an approved use. 72 (b) The process described in Subsection (2)(a) shall: 73 (i) detail how an applicant may submit a classification request; 74 (ii) establish a procedure for the county to review a classification request, including: 75 (A) providing a land use authority with criteria to determine whether a proposed 76 use aligns with an existing use; and 77 (B) allowing an applicant to proceed under the regulations of an existing use if a 78 land use authority determines a proposed use aligns with that existing use; 79 (iii) provide that if a use is determined to be a new or unlisted business use: 80 (A) the applicant shall submit an application for approval of the new or unlisted 81 business use to the legislative body for review; 82 (B) the legislative body shall consider and determine whether to approve or deny 83 the new or unlisted business use; and 84 (C) Ŝ→ [the legislative body shall issue an approval or denial of the new or 84a unlisted ] ←Ŝ 85 Ŝ→ [business use within 60 days after the day on which the applicant 85a submits an ] ←Ŝ 86 Ŝ→ [application for approval if the applicant responds promptly to requests 86a for ] ←Ŝ 87 Ŝ→ [additional information and appears at required hearings;] - 3 - S.B. 179 02-18 09:07 87a the legislative body shall approve or deny the new or unlisted business use, 87b within a time frame the legislative body establishes by ordinance, if the 87c applicant responds to requests for additional information within a time frame 87d established by the county and appears at required hearings; ←Ŝ 88 (iv) provide that if the legislative body approves a proposed new or unlisted business 89 use, the legislative body shall designate an appropriate zone or zones for the 90 approved use; and 91 (v) provide that if the legislative body denies a proposed new or unlisted business 92 use, or if an applicant disagrees with a land use authority's classification of the 93 proposed use, the legislative body shall: 94 (A) notify the applicant in writing of each reason for the classification or denial; 95 and 96 (B) offer the applicant an opportunity to challenge the classification or denial 97 through an administrative appeal process established by the county. 98 (3) Each county shall amend each land use ordinance that contains a list of approved or 99 prohibited business uses to include a reference to the process for petitioning to approve a 100 new or unlisted business use, as described in Subsection (2). 101 Section 3. Effective Date. 102 This bill takes effect on May 7, 2025. - 4 -