02-26 10:50 S.B. 337
1
Land Use and Development Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kirk A. Cullimore
House Sponsor:
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LONG TITLE
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General Description:
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This bill creates the Beehive Development Agency and authorizes the chief executive
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officer of Governor's Office of Economic Opportunity to propose significant community
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impact project plans and associated project areas to the Beehive Development Agency.
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Highlighted Provisions:
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This bill:
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▸ defines terms and modifies definitions;
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▸ provides a severability provision;
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▸ creates the Beehive Development Agency (agency) under Utah Constitution, Article XI,
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as a political subdivision of the state that is an independent, nonprofit, separate body
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corporate and politic, with perpetual succession, and a public corporation;
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▸ provides that appropriations to the agency are nonlapsing;
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▸ establishes the agency board and describes the agency powers and duties;
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▸ provides that the agency may designate up to three significant community impact project
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areas each calendar year;
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▸ describes the purposes of a significant community impact project;
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▸ creates a revolving loan fund and establishes a loan committee;
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▸ authorizes the agency to create a public infrastructure district for a significant community
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project area;
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▸ describes the potential revenue sources of a significant community impact project area,
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including property tax differential, sales tax differential, and revenue generated by
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certain taxes;
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▸ repeals provisions establishing the Governor's Office of Economic Opportunity (office)
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board of directors and the Unified Economic Opportunity Commission;
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▸ creates the Economic Opportunity Coordinating Council (council);
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▸ changes the executive director of the office to the chief executive officer;
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▸ provides that the chief executive officer shall:
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● receive direction from the council regarding statewide strategic objectives;
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● establish strategies for and actively recruit targeted industries identified by the council;
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● encourage a business to permanently relocate to, or significantly expand operations in,
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the state;
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● establish strategies for and actively support entrepreneurship and small business
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development;
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● coordinate the economic development activities of the office, state, and authorities
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including the Military Installation Development Authority, the Utah Inland Port
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Authority, the Point of the Mountain State Land Authority, the Utah Lake Authority,
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the State Fair Park Authority, and the Utah Fairpark Area Investment and Restoration
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District; and
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● coordinate with various departments and officials in order to consolidate the Division
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of Housing and Community Development within the office by July 1, 2026;
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▸ provides a sales and use tax exemption on certain construction materials associated with a
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project area that is part of an approved significant community impact project area;
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▸ provides a formula for the State Tax Commission to administer certain sales and use taxes
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in regard to a project area in an approved significant community impact project area;
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▸ removes the sunset on the Utah Housing Corporation; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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11-59-302 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapter 263
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17D-4-102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 419
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35A-8-202 (Effective 05/07/25), as last amended by Laws of Utah 2021, Chapter 281
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59-12-103 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapters 88, 501
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59-12-104 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 35
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59-12-205 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 535
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59-12-352 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapters 413,
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419
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59-12-354 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 419
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59-12-401 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 419
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59-12-402 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 419
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63A-3-401.5 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 419
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63A-3-402 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 419
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63C-25-202 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 419
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63H-8-302 (Effective 05/07/25), as last amended by Laws of Utah 2015, Chapter 164
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and renumbered and amended by Laws of Utah 2015, Chapter 226
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63I-1-263 (Effective 05/07/25), as last amended by Laws of Utah 2024, Third Special
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Session, Chapter 4
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63J-1-602.1 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 88,
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501
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63N-1a-102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-301 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-302 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2021,
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Chapter 282
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63N-1a-303 (Effective 05/07/25), as last amended by Laws of Utah 2022, Chapter 362
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63N-1a-306 (Effective 05/07/25), as last amended by Laws of Utah 2022, Chapter 362
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63N-2-103 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 438
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63N-2-104.2 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 159,
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316
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63N-2-104.3 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-2-504 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-2-808 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-3-102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-3-403 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 268
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63N-3-605 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 521,
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537
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63N-3-801 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-3-1102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-4-104 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-4-105 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-4-504 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 506
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63N-4-804 (Effective 05/07/25), as enacted by Laws of Utah 2022, Chapter 362
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63N-7-102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-7-103 (Effective 05/07/25), as repealed and reenacted by Laws of Utah 2022,
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Chapter 362
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63N-13-101 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-16-102 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 400
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63N-16-103 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapters 157,
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400
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63N-17-201 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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67-1-2 (Effective 05/07/25), as last amended by Laws of Utah 2023, Chapter 250
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ENACTS:
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11-71-101 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-102 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-103 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-104 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-201 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-202 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-203 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-204 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-301 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-302 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-304 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-305 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-401 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-402 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-403 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-404 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-405 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-501 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-502 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-601 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-602 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-603 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-604 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-605 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-606 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-701 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-702 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-703 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-704 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-705 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-706 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-801 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-802 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-803 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-804 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-805 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-806 (Effective 05/07/25), Utah Code Annotated 1953
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11-71-901 (Effective 05/07/25), Utah Code Annotated 1953
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63N-1a-303.1 (Effective 05/07/25), Utah Code Annotated 1953
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63N-1a-303.2 (Effective 05/07/25), Utah Code Annotated 1953
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63N-1a-501 (Effective 05/07/25), Utah Code Annotated 1953
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63N-1a-502 (Effective 05/07/25), Utah Code Annotated 1953
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63N-22-101 (Effective 07/01/26), Utah Code Annotated 1953
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REPEALS:
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63N-1a-201 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-202 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-304 (Effective 05/07/25), as renumbered and amended by Laws of Utah 2021,
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Chapter 282
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63N-1a-401 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-402 (Effective 05/07/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1b-102 (Effective 05/07/25), as last amended by Laws of Utah 2022, Chapter 118
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 11-59-302 is amended to read:
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11-59-302 (Effective 05/07/25). Number of board members -- Appointment --
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Vacancies -- Chairs.
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(1) The board shall consist of 12 members as provided in Subsection (2).
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(2)(a) The president of the Senate shall appoint two members of the Senate to serve as
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members of the board.
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(b) The speaker of the House of Representatives shall appoint two members of the
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House of Representatives to serve as members of the board.
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(c) The governor shall appoint five individuals to serve as members of the board:
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(i) one of whom shall be [a member of the board of or ]employed by the Governor's
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Office of Economic Opportunity, created in Section 63N-1a-301;
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(ii) one of whom shall be an employee of the facilities division; and
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(iii) one of whom shall be an elected official from a municipality in close proximity
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to the municipality in which the point of the mountain state land is located.
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(d) The Salt Lake County mayor shall appoint one board member, who shall be an
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elected Salt Lake County government official.
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(e) The mayor of Draper, or a member of the Draper city council that the mayor
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designates, shall serve as a board member.
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(f) The commissioner of higher education, appointed under Section 53B-1-408, or the
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commissioner's designee, shall serve as a board member.
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(3)(a)(i) Subject to Subsection (3)(a)(ii), a vacancy on the board shall be filled in the
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same manner under this section as the appointment of the member whose vacancy
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is being filled.
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(ii) If the mayor of Draper or commissioner of higher education is removed as a
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board member under Subsection (5), the mayor of Draper or commissioner of
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higher education, as the case may be, shall designate an individual to serve as a
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member of the board, as provided in Subsection (2)(e) or (f), respectively.
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(b) Each person appointed or designated to fill a vacancy shall serve the remaining
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unexpired term of the member whose vacancy the person is filling.
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(4) A member of the board appointed by the governor, president of the Senate, or speaker
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of the House of Representatives serves at the pleasure of and may be removed and
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replaced at any time, with or without cause, by the governor, president of the Senate, or
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speaker of the House of Representatives, respectively.
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(5) A member of the board may be removed by a vote of two-thirds of all members of the
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board.
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(6)(a) The governor shall appoint one board member to serve as cochair of the board.
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(b) The president of the Senate and speaker of the House of Representatives shall jointly
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appoint one legislative member of the board to serve as cochair of the board.
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Section 2. Section 11-71-101 is enacted to read:
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CHAPTER 71. BEEHIVE DEVELOPMENT AGENCY ACT
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Part 1. General Provisions
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11-71-101 (Effective 05/07/25). Definitions.
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As used in this chapter:
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(1) "Agency" means the Beehive Development Agency created in Section 11-71-201.
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(2) "Approved significant community impact project plan" means a plan that has been
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approved by the board.
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(3) "Authority" means:
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(a) the Military Installation Development Authority created in Section 63H-1-201;
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(b) the Utah Inland Port Authority created in Section 11-58-201;
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(c) the Point of the Mountain State Land Authority created in Section 11-59-201;
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(d) the Utah Lake Authority created in Section 11-65-201;
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(e) the State Fair Park Authority created in Section 11-68-201; or
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(f) the Utah Fairpark Area Investment and Restoration District created in Section
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11-70-201.
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(4) "Authority-run project area" means a project area created by an authority under the
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authority's statutory powers as part of a significant community impact project plan.
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(5) "Base taxable value" means the taxable value of property within a project area, as
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designated by the board in a resolution approving a significant community impact
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project plan, from which property tax differential will be collected, as shown upon the
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assessment roll last equalized before the year in which the board adopts a resolution
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approving the significant community impact project plan.
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(6) "Base taxable year" means, for each property tax differential collection period triggered
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within a project area or a proposed project area, the calendar year before the calendar
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year in which the property tax increment begins to be collected for the parcels triggered
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for that collection period.
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(7) "Board" means the Beehive Development Agency Board created in Section 11-71-301.
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(8) "Chief executive officer" means the chief executive officer of the Governor's Office of
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Economic Opportunity, appointed under Section 63N-1a-302.
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(9) "Council" means the Economic Opportunity Coordinating Council created in Section
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63N-1a-501.
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(10) "Direct financial benefit":
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(a) means any form of financial benefit that accrues to an individual directly, including:
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(i) compensation, commission, or any other form of a payment or increase of money;
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and
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(ii) an increase in the value of a business or property; and
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(b) does not include a financial benefit that accrues to the public generally.
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(11) "Economic opportunity of statewide concern" means a major economic project
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involving job creation, housing, energy, or capital investment goals.
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(12) "Family member" means a parent, spouse, sibling, child, or grandchild.
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(13) "Project area" means land designated by a significant community impact project plan
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in which a particular economic opportunity of statewide concern:
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(a) is proposed to occur, before the adoption of a proposed significant community
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impact project plan; or
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(b) (b)may occur or occurs, in an approved significant community impact project plan.
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(14) "Property tax differential":
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(a) means the difference between:
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(i) the amount of property tax revenues generated each tax year by all taxing entities
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from a project area, using the current assessed value of the property; and
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(ii) the amount of property tax revenues that would be generated from that same area
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using the base taxable value of the property; and
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(b) does not include property tax revenue from:
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(i) a county additional property tax or multicounty assessing and collecting levy
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imposed in accordance with Section 59-2-1602;
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(ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
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or
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(iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
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obligation bond.
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(15)(a) "Public infrastructure and improvements" means infrastructure, improvements,
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facilities, or buildings that:
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(i)(A) benefit the public and are owned by a public entity or a utility; or
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(B) benefit the public and are publicly maintained or operated by a public entity; or
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(ii)(A) are privately owned;
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(B) benefit the public;
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(C) as determined by the board, provide a substantial benefit to the development
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and operation of a project area; and
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(D) are built according to applicable county or municipal design and safety
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standards.
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(b) "Public infrastructure and improvements" includes:
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(i) facilities, lines, or systems that provide:
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(A) water, chilled water, or steam; or
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(B) sewer, storm drainage, natural gas, electricity, energy storage, clean energy,
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microgrids, or telecommunications service;
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(ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
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facilities, rail lines, intermodal facilities, multimodal facilities, and public
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transportation facilities; and
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(iii) infrastructure, improvements, facilities, or buildings that are developed as part of
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a remediation project.
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(16) "Project area" means land designated by a significant community impact project plan
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in which a particular economic opportunity of statewide concern:
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(a) is proposed to occur, before the adoption of a proposed significant community
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impact project plan; or
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(b) may occur or occurs, in an approved significant community impact project plan.
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(17) "Property tax differential":
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(a) means the difference between:
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(i) the amount of property tax revenues generated each tax year by all taxing entities
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from a project area, using the current assessed value of the property; and
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(ii) the amount of property tax revenues that would be generated from that same area
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using the base taxable value of the property; and
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(b) does not include property tax revenue from:
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(i) a county additional property tax or multicounty assessing and collecting levy
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imposed in accordance with Section 59-2-1602;
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(ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
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or
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(iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
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obligation bond.
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(18) "Sales and use tax base year" means the sales and use tax year determined by the first
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year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
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boundary for a project area is established as part of the board's adoption of a significant
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community impact project plan.
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(19) "Sales and use tax boundary" means a boundary established by the board in
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coordination with the State Tax Commission, based on state sales and use tax collection,
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that corresponds as closely as reasonably practicable to the boundary of a project area
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that is established as part of a significant community impact project plan.
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(20) "Sales and use tax differential" means the difference between:
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(a) the amount of state sales and use tax revenue generated each year following the sales
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and use tax base year by the sales and use tax from the area within a sales and use tax
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boundary from which sales and use tax increment is to be collected; and
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(b) the amount of state sales and use tax revenue that was generated from within the
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sales and use tax boundary during the sales and use tax base year.
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Section 3. Section 11-71-102 is enacted to read:
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11-71-102 (Effective 05/07/25). Severability.
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If a court determines that any provision of this chapter, or the application of any
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provision of this chapter, is invalid, the remainder of this chapter shall be given effect without
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the invalid provision or application.
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Section 4. Section 11-71-103 is enacted to read:
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11-71-103 (Effective 05/07/25). Nonlapsing funds.
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Money the authority receives from legislative appropriations is nonlapsing.
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Section 5. Section 11-71-104 is enacted to read:
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11-71-104 (Effective 05/07/25). Loan approval committee -- Approval of
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infrastructure loans.
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(1) As used in this section:
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(a) "Beehive development fund" means the same as that term is defined in Section
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63A-3-401.5.
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(b) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
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(c) "Infrastructure loan" means the same as that term is defined in Section 63A-3-401.5.
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(d) "Infrastructure project" means the same as that term is defined in Section
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63A-3-401.5.
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(e) "Loan approval committee" means a committee established under Subsection (2).
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(2)(a) The agency shall establish a loan committee consisting of:
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(i) two individuals with expertise in public finance or infrastructure development,
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appointed by the governor;
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(ii) one individual with expertise in public finance or infrastructure development,
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appointed by the president of the Senate;
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(iii) one individual with expertise in public finance or infrastructure development,
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appointed by the speaker of the House of Representatives; and
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(iv) one individual with expertise in public finance or infrastructure development,
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appointed jointly by the president of the Senate and the speaker of the House of
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Representatives.
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(b) A board member of the agency may not be appointed to or serve as a member of the
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loan committee.
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(3)(a) The loan committee may recommend for board approval an infrastructure loan
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from the beehive development fund to a borrower for an infrastructure project
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undertaken by the borrower.
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(b) An infrastructure loan from the beehive development fund may not be made unless:
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(i) the infrastructure loan is recommended by the loan committee; and
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(ii) the board approves the infrastructure loan.
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(4)(a) If the loan committee recommends an infrastructure loan, the loan committee shall
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recommend the terms of an infrastructure loan in accordance with Section 63A-3-404.
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(b) The board shall require the terms of an infrastructure loan secured by property tax
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differential to include a requirement that money from the infrastructure loan be used
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only for an infrastructure project within the project area that generates the property
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tax differential.
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(5) The board may establish policies and guidelines with respect to prioritizing requests for
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infrastructure loans and approving infrastructure loans.
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(6) Within 60 days after the execution of an infrastructure loan, the board shall report the
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infrastructure loan, including the loan amount, terms, interest rate, and security, to:
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(a) the Executive Appropriations Committee; and
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(b) the State Finance Review Commission created in Section 63C-25-201.
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(7)(a) Salaries and expenses of loan committee members who are legislators shall be
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paid in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter
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3, Legislator Compensation.
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(b) A loan committee member who is not a legislator may not receive compensation or
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benefits for the member's service on the committee, but may receive per diem and
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reimbursement for travel expenses incurred as a committee member at the rates
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established by the Division of Finance under:
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(i) Sections 63A-3-106 and 63A-3-107; and
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(ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
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63A-3-107.
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Section 6. Section 11-71-201 is enacted to read:
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Part 2. Beehive Development Agency
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11-71-201 (Effective 05/07/25). Creation of Beehive Development Agency.
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(1) Under the authority of Utah Constitution, Article XI, Section 8,there is created the
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Beehive Development Agency.
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(2) The agency is:
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(a) an independent, nonprofit, separate body corporate and politic, with perpetual
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succession;
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(b) a political subdivision of the state; and
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(c) a public corporation, as defined in Section 63E-1-102.
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(3) The purpose of the agency is to fulfill any number of statewide public purposes to
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maximize the long-term economic and other benefit for the state, consistent with the
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strategies, policies, and objectives described in this chapter.
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(4) The agency is the mechanism the state chooses to focus resources and efforts on behalf
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of the state to ensure that regional and statewide interests, concerns, and purposes are
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properly addressed from a statewide perspective.
385
Section 7. Section 11-71-202 is enacted to read:
386
11-71-202 (Effective 05/07/25). Agency powers and duties.
387
(1) The agency has responsibility, and power to:
388
(a) develop policies for the consideration of a potential significant community impact
389
plan;
390
(b) approve up to three significant community impact plans per calendar year; and
391
(c) develop and implement a business plan for a project area as part of a significant
392
community impact plan.
393
(2) The agency may:
394
(a) facilitate and bring about the development of land in ways that benefit the entire state;
395
(b) as the agency considers necessary or advisable to carry out any of the agency's duties
396
or responsibilities under this chapter:
397
(i) buy, obtain an option upon, or otherwise acquire any interest in real or personal
398
property;
399
(ii) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real
400
or personal property; or
401
(iii) enter into a lease agreement on real or personal property, either as lessee or
402
lessor;
403
(c) sue and be sued;
404
(d) enter into contracts generally;
- 12 - 02-26 10:50 S.B. 337
405
(e) provide funding for the development of public infrastructure and improvements or
406
other infrastructure and improvements on or related to the authority jurisdictional
407
land or other authority project areas;
408
(f) exercise powers and perform functions under a contract, as authorized in the contract;
409
(g) receive the property tax differential, as provided in this chapter;
410
(h) receive sales and use tax differential, as provided in this chapter;
411
(i) accept financial or other assistance from any public or private source for the
412
authority's activities, powers, and duties, and expend any funds so received for any of
413
the purposes of this chapter;
414
(j) borrow money, contract with, or accept financial or other assistance from the federal
415
government, a public entity, or any other source for any of the purposes of this
416
chapter and comply with any conditions of the loan, contract, or assistance;
417
(k) issue bonds to finance the undertaking of any development objectives of the
418
authority, including bonds under Chapter 17, Utah Industrial Facilities and
419
Development Act, bonds under Chapter 42, Assessment Area Act, and bonds under
420
Chapter 42a, Commercial Property Assessed Clean Energy Act;
421
(l) hire employees, including contract employees;
422
(m) transact other business and exercise all other powers provided for in this chapter;
423
(n) engage one or more consultants to advise or assist the agency in the performance of
424
the agency's duties and responsibilities;
425
(o) own, lease, operate, or otherwise control public infrastructure and improvements in a
426
project area;
427
(p) exercise powers and perform functions that the agency is authorized by statute to
428
exercise or perform; and
429
(q) support continued growth of the state's economy.
430
(3)(a) The agency may establish a community enhancement program designed to
431
address the impacts that development within a project area has on adjacent
432
communities.
433
(b)(i) The agency may use authority money to support the community enhancement
434
program and to pay for efforts to address the impacts described in Subsection
435
(3)(a).
436
(ii) Agency money designated for use under Subsection (3)(b)(i) is exempt from
437
execution or any other process in the collection of a judgment against or debt or
438
other obligation of the authority arising out of the authority's activities with
- 13 - S.B. 337 02-26 10:50
439
respect to the community enhancement program.
440
Section 8. Section 11-71-203 is enacted to read:
441
11-71-203 (Effective 05/07/25). Additional duties -- Duty to make policies.
442
The agency board, created in Section 11-71-301, shall make additional policies
443
necessary to carry out the agency's duties under this chapter.
444
Section 9. Section 11-71-204 is enacted to read:
445
11-71-204 (Effective 05/07/25). Applicability of other laws.
446
(1) As used in this section:
447
(a) "Public body" means the same as that term is defined in Section 52-4-103.
448
(b) "Subsidiary" means an agency subsidiary that is a public body.
449
(c) "Subsidiary board" means the governing body of a subsidiary.
450
(2) The agency and land within a project area established by the agency is not subject to:
451
(a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
452
(b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
453
(c) ordinances or regulations of a county or municipality, including those relating to land
454
use, health, business license, or franchise; or
455
(d) the jurisdiction of a special district under Title 17B, Limited Purpose Local
456
Government Entities - Special Districts, or a special service district under Title 17D,
457
Chapter 1, Special Service District Act.
458
(3)(a) The definitions in Section 57-8-3 apply to this Subsection (3).
459
(b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership Act,
460
or any other provision of law:
461
(i) if the agency or the state is the owner of land in a project area on which a
462
condominium project is constructed, the agency or the state is not required to sign,
463
execute, or record a declaration of a condominium project; and
464
(ii) if a condominium unit in a project area is owned by the agency and leased to the
465
state for $1 or less per calendar year, not including any common charges that are
466
reimbursements for actual expenses:
467
(A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
468
Condominium Ownership Act;
469
(B) condominium unit owners within the same building or commercial
470
condominium project may agree on any method of allocation and payment of
471
common area expenses, regardless of the size or par value of each unit; and
472
(C) the condominium project may not be dissolved without the consent of all the
- 14 - 02-26 10:50 S.B. 337
473
condominium unit owners.
474
(4) Notwithstanding any other provision, when a law requires the consent of a local
475
government, the agency is the consenting entity for a project area established under this
476
chapter.
477
(5)(a) A department, division, or other entity of the state and, except as provided in
478
Subsection (5)(b), a political subdivision of the state shall cooperate with the agency
479
to the fullest extent possible to provide whatever support, information, or other
480
assistance the authority requests that is reasonably necessary to help the agency fulfill
481
the agency's duties and responsibilities under this chapter.
482
(b) Subsection (5)(a) does not apply to a political subdivision that does not have any of a
483
project area located within the boundary of the political subdivision.
484
(6) The agency and a subsidiary are subject to Title 52, Chapter 4, Open and Public
485
Meetings Act, except that:
486
(a) notwithstanding Section 52-4-104, the timing and nature of training to agency board
487
members or subsidiary board members on the requirements of Title 52, Chapter 4,
488
Open and Public Meetings Act, may be determined by:
489
(i) the board chair, for the agency board; or
490
(ii) the subsidiary board chair, for a subsidiary board;
491
(b) agency staff may adopt a policy governing the use of electronic meetings under
492
Section 52-4-207, if the board delegates to agency staff the power to adopt the policy;
493
and
494
(c) for an electronic meeting of the agency board or subsidiary board that otherwise
495
complies with Section 52-4-207, the agency board or subsidiary board, respectively:
496
(i) is not required to establish an anchor location; and
497
(ii) may convene and conduct the meeting without the determination otherwise
498
required under Subsection 52-4-207(5)(a)(i).
499
(7) The agency and a subsidiary of the agency are subject to Title 63G, Chapter 2,
500
Government Records Access and Management Act, except that:
501
(a) notwithstanding Section 63G-2-701:
502
(i) the agency may establish an appeals board consisting of at least three members;
503
(ii) an appeals board established under Subsection (7)(a)(i) shall include three agency
504
board members; and
505
(iii) an appeal of a decision of an appeals board is filed in district court, as provided
506
in Section 63G-2-404, except that the State Records Committee is not a party; and
- 15 - S.B. 337 02-26 10:50
507
(b) a record created or retained by the agency or a subsidiary acting in the role of a
508
facilitator under Subsection 63H-1-201(3)(v) is a protected record under Title 63G,
509
Chapter 2, Government Records Access and Management Act.
510
(8) The agency or a subsidiary acting in the role of a facilitator under Subsection
511
63H-1-201(3)(v) is not prohibited from receiving a benefit from a public-private
512
partnership that results from the facilitator's work as a facilitator.
513
(9)(a) Terms defined in Section 57-11-2 apply to this Subsection (9).
514
(b) Title 57, Chapter 11, Utah Uniform Land Sales Practices Act, does not apply to an
515
offer or disposition of an interest in land if the interest in land lies within the
516
boundaries of the project area and the agency:
517
(i)(A) has a development review committee using at least one professional planner;
518
(B) enacts standards and guidelines that require approval of planning, land use,
519
and plats, including the approval of plans for streets, culinary water, sanitary
520
sewer, and flood control; and
521
(C) will have the improvements for streets, culinary water, sanitary sewer, and
522
flood control, plus telecommunications and electricity; and
523
(ii) if at the time of the offer or disposition, the subdivider furnishes satisfactory
524
assurance of completion of the improvements described in Subsection (9)(b)(i)(C).
525
(10)(a) The agency may request and, upon request, shall receive:
526
(i) fuel dispensing and motor pool services provided by the Division of Fleet
527
Operations;
528
(ii) surplus property services provided by the Division of Purchasing and General
529
Services;
530
(iii) information technology services provided by the Division of Technology
531
Services;
532
(iv) archive services provided by the Division of Archives and Records Service;
533
(v) financial services provided by the Division of Finance;
534
(vi) human resources services provided by the Division of Human Resource
535
Management;
536
(vii) legal services provided by the Office of the Attorney General; and
537
(viii) banking services provided by the Office of the State Treasurer.
538
(b) Nothing in Subsection (10)(a) may be construed to relieve the agency of the
539
obligation to pay the applicable fee for the service provided.
540
(11)(a) To govern agency procurements, the board shall adopt a procurement policy that
- 16 - 02-26 10:50 S.B. 337
541
the board determines to be substantially consistent with applicable provisions of Title
542
63G, Chapter 6a, Utah Procurement Code.
543
(b) The board's determination under Subsection (11)(a) of substantial consistency is final
544
and conclusive.
545
Section 10. Section 11-71-301 is enacted to read:
546
Part 3. Beehive Development Agency Board
547
11-71-301 (Effective 05/07/25). Beehive Development Agency Board --
548
Delegation.
549
(1) The agency shall be governed by a board which:
550
(a) shall manage and conduct the business and affairs of the agency;
551
(b) shall determine all questions of agency policy; and
552
(c) constitutes a mixed-function board.
553
(2) The board may by resolution delegate powers to agency staff.
554
Section 11. Section 11-71-302 is enacted to read:
555
11-71-302 (Effective 05/07/25). Number of board members -- Appointment --
556
Vacancies.
557
(1) The agency board consists of five voting members described in Subsection (2).
558
(2)(a) The governor shall appoint three members to the board.
559
(b) The speaker of the House of Representatives shall appoint one member to the board.
560
(c) The president of the Senate shall appoint one member to the board.
561
(3)(a) Except as provided in Subsection (3)(b), the term of a board member is four years.
562
(b) At the time of appointment of the initial board, the governor shall appoint two
563
members for a term of two years to ensure that the terms of board members are
564
staggered so that approximately half of the board is appointed every two years.
565
(4) Board members may not serve more than two full consecutive terms except when the
566
appointing officer determines that an additional term is in the best interest of the state.
567
(5) A member of the board appointed under Subsection (2) serves at the pleasure of and
568
may be removed and replaced at any time, with or without cause, by the individual who
569
appointed the member.
570
(6) When a vacancy occurs in the membership of the board for any reason, the replacement
571
shall be appointed for the unexpired term.
572
(7) A majority of board members, not including a vacancy, constitutes a quorum for
573
conducting board business and exercising board power.
574
(8)(a) The governor shall select one board member as the board's chair.
- 17 - S.B. 337 02-26 10:50
575
(b) The board shall select one board member as the board's vice chair.
576
(9) Each board member shall serve until a successor is duly appointed and qualified.
577
(10) The board may appoint one or more advisory committees that may include individuals
578
from public entities, community organizations, environmental organizations, business
579
organizations, or other organizations or associations.
580
(11)(a) A member who is not a legislator may not receive compensation or benefits for
581
the member's service, but may receive per diem and travel expenses in accordance
582
with:
583
(i) Section 63A-3-106;
584
(ii) Section 63A-3-107; and
585
(iii) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
586
(b) Compensation and expenses of a board member who is a legislator are governed by
587
Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
588
Compensation.
589
(12) A member shall comply with the conflict of interest provisions described in Title 63G,
590
Chapter 24, Part 3, Conflicts of Interest.
591
Section 12. Section 11-71-304 is enacted to read:
592
11-71-304 (Effective 05/07/25). Limitations on board members and chief
593
executive officer -- Annual conflict of interest disclosure statement -- Penalties.
594
(1) As used in this section:
595
(a) "Chief executive officer" means the chief executive officer of the Governor's Office
596
of Economic Opportunity.
597
(b) "Established project area" means a project area:
598
(i) created under this chapter; or
599
(ii) an authority-run project area if:
600
(A) in regard to the chief executive officer, the authority-run project area is
601
established by an authority other than the Beehive Development Agency at the
602
recommendation of the chief executive officer; and
603
(B) in regard to a board member and the chief executive officer, the board and
604
authority enter into an agreement for the board to direct the authority's
605
participation in a significant community impact project plan, as described in
606
Section 11-71-401.
607
(2)(a) An individual is subject to Subsection (2)(b) if:
608
(i) the individual owns real property, other than a personal residence in which the
- 18 - 02-26 10:50 S.B. 337
609
individual resides, within an established project area, whether or not the
610
ownership interest is a recorded interest;
611
(ii) a family member of the individual owns an interest in real property, other than a
612
personal residence in which the family member resides, located within an
613
established project area; or
614
(iii) the individual or a family member of the individual owns an interest in, is
615
directly affiliated with, or is an employee or officer of a private firm, private
616
company, or other private entity that the individual reasonably believes is likely to:
617
(A) participate in or receive a direct financial benefit from the development of a
618
project area; or
619
(B) acquire an interest in or locate a facility within an established project area.
620
(b) An individual described in Subsection (2)(a):
621
(i) may not be employed as the chief executive officer; or
622
(ii) may not, if the individual is a board member, participate in the consideration or
623
vote on any matter affecting the individual or family member's interest or
624
affiliation described in Subsection (2)(a).
625
(3) Before taking office as a board member or accepting employment as chief executive
626
officer, an individual shall submit to the governor and the president of the Senate a
627
statement verifying that the individual's service as a board member or employment as
628
chief executive officer does not violate this section.
629
(4)(a) An individual may not, at any time during the individual's service as a board
630
member or employment as chief executive officer, acquire, or take any action to
631
initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real
632
property located within an established project area, if:
633
(i) the acquisition is in the individual's personal capacity or in the individual's
634
capacity as an employee or officer of a private firm, private company, or other
635
private entity; and
636
(ii) the acquisition will enable the individual to receive a direct financial benefit as a
637
result of the development of the established project area.
638
(b) Subsection (4)(a) does not apply to an individual's acquisition of, or action to initiate,
639
negotiate, or otherwise arrange for the acquisition of, an interest in real property that
640
is a personal residence in which the individual will reside upon acquisition of the real
641
property.
642
(5)(a) A board member or the chief executive officer may not receive a direct financial
- 19 - S.B. 337 02-26 10:50
643
benefit from the development of a project in an established project area.
644
(b) For purposes of Subsection (5)(a), a direct financial benefit does not include:
645
(i) expense reimbursements;
646
(ii) per diem pay for board member service, if applicable; or
647
(iii) the chief executive officer's compensation or benefits from employment with the
648
state.
649
(6) In addition to any other limitation on a board member described in this section, a board
650
member shall, no sooner than January 1 and no later than January 31 of each year during
651
which the board member holds office on the board:
652
(a) prepare a written conflict of interest disclosure statement that contains a response to
653
each item of information described in Subsection 20A-11-1604(6); and
654
(b) submit the written disclosure statement to the state auditor.
655
(7)(a) No later than 10 business days after the date on which the board member submits
656
the written disclosure statement described in Subsection (6), the state auditor shall:
657
(i) post an electronic copy of the written disclosure statement on a website
658
maintained by the state auditor; and
659
(ii) provide the lieutenant governor with a link to the electronic posting described in
660
Subsection (7)(a)(i).
661
(b) The agency shall ensure that the board member's written disclosure statement
662
remains posted on the board's or agency's website until the board member leaves
663
office.
664
(8) The state auditor shall take the action described in Subsection (9) if:
665
(a) a board member fails to timely submit the written disclosure statement described in
666
Subsection (6); or
667
(b) a submitted written disclosure statement does not comply with the requirements of
668
Subsection 20A-11-1604(6).
669
(9) If a circumstance described in Subsection (8) occurs, the state auditor shall, within five
670
days after the day on which the state auditor determines that a violation occurred, notify
671
the board member of the violation and direct the board member to submit an amended
672
written disclosure statement correcting the problem.
673
(10)(a) It is unlawful for a board member to fail to submit or amend a written disclosure
674
statement within seven days after the day on which the board member receives the
675
notice described in Subsection (9).
676
(b) A board member who violates Subsection (10)(a) is guilty of a class B misdemeanor.
- 20 - 02-26 10:50 S.B. 337
677
(c) The state auditor shall report a violation of Subsection (10)(a) to the attorney general.
678
(d) In addition to the criminal penalty described in Subsection (10)(b), the state auditor
679
shall impose a civil fine of $100 against a board member who violates Subsection
680
(10)(a).
681
(11) The state auditor shall retain a fine collected under this section to pay for the costs of
682
administering this section.
683
(12) Nothing in this section may be construed to affect the application or effect of any other
684
code provision applicable to a board member or employee relating to ethics or conflicts
685
of interest.
686
Section 13. Section 11-71-305 is enacted to read:
687
11-71-305 (Effective 05/07/25). Policymaking.
688
The board shall establish policies, in addition to the requirements of this chapter,
689
governing:
690
(1) proposed significant community impact project plans;
691
(2) criteria to consider a proposed significant community impact project plan;
692
(3) criteria to approve or deny a proposed significant community impact project plan; and
693
(4) any other policy the board considers necessary to fulfill the agency's duties under this
694
chapter.
695
Section 14. Section 11-71-401 is enacted to read:
696
Part 4. Significant Community Impact Project Plan and Project Areas
697
11-71-401 (Effective 05/07/25). Preparation of a significant community impact
698
project plan -- Required contents of a significant community impact project plan.
699
(1) The chief executive officer may present a proposed significant community impact
700
project plan to the board for the board's consideration.
701
(2) A proposed significant community impact project plan shall:
702
(a) describe the economic opportunity of statewide concern to be addressed through the
703
proposed significant community impact project;
704
(b) describe how the proposed significant community impact project promotes the
705
strategic economic development objectives for the state, as established by the council;
706
(c) except as provided in Subsection (6), describe the proposed project area for the
707
proposed significant community impact project, including:
708
(i) a boundary description of each proposed project area;
709
(ii) a proposed base taxable value for each proposed project area;
710
(iii) a proposed base taxable year;
- 21 - S.B. 337 02-26 10:50
711
(iv) a proposed sales and use tax boundary;
712
(v) a proposed sales and use tax base year;
713
(vi) the time period proposed for the collection of property tax differential and sales
714
and use tax differential, not to exceed:
715
(A) an initial 25-year period; and
716
(B) an optional secondary 15-year period; and
717
(vii) the information described in Subsection (5);
718
(d) describe any grants, awards, loans, or other incentives authorized under Title 63N,
719
Economic Opportunity Act, that will be leveraged in the significant community
720
impact project plan, including:
721
(i) a grant under Title 63N, Chapter 3, Part 10, Economic Assistance Grant Program;
722
(ii) a grant under Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant
723
Program;
724
(iii) an award from the Industrial Assistance Account under Title 63N, Chapter 3,
725
Part 1, Industrial Assistance Account;
726
(iv) an award under Title 63N, Chapter 4, Rural Development Act; or
727
(v) a tax credit incentive under Title 63N, Chapter 2, Tax Credit Incentives for
728
Economic Development; and
729
(e) include any other information the board requires.
730
(3) A grant, award, loan, or other incentive described in Subsection (2)(d):
731
(a) may proceed with or without an approved significant community impact project;
732
(b) is not required to be approved by the board; and
733
(c) if the grant, award, loan, or other incentive is proposed in the significant community
734
impact project plan, the grant, award, loan, or other incentive becomes project area
735
funds, as described in Section 11-71-501, upon the board's adoption of the significant
736
community impact project plan.
737
(4) Land included or to be included within a single project area is not required to be
738
contiguous.
739
(5) If a project area is to be on state land, the description of a project area shall include
740
written acknowledgment from the state officer, board chair, or other individual
741
responsible for the state land.
742
(6)(a) The chief executive officer may propose a significant community impact project
743
plan that requests an authority create an authority-run project area, under the
744
authority's statutory provisions, as part of a proposed significant community impact
- 22 - 02-26 10:50 S.B. 337
745
project plan.
746
(b) The board may request an authority described in Subsection (6)(a) enter into an
747
agreement with the board to participate in a significant community impact project
748
plan, once approved, under the board's direction.
749
(7)(a) The chief executive officer is not required to secure local consent from any
750
affected local government entity before making a proposal for a significant
751
community impact project plan or associated project area, as described in this section.
752
(b) In presenting a proposed significant community impact project plan to the board, the
753
chief executive officer shall describe how the chief executive officer consulted with a
754
local government entity that may be affected by the adoption of a significant
755
community impact project area.
756
Section 15. Section 11-71-402 is enacted to read:
757
11-71-402 (Effective 05/07/25). Public meeting to consider and discuss proposed
758
significant community impact project plan -- Notice -- Modification to proposed
759
economic zone.
760
(1) The board shall hold at least one public meeting to consider and discuss a proposed
761
significant community impact project plan.
762
(2)(a) At least 15 days before holding a public meeting described under Subsection (1),
763
the board shall make the proposed significant community impact project plan
764
publicly available on a website.
765
(b) At least 10 days before holding a public meeting described in Subsection (1), the
766
board shall give notice of the public meeting:
767
(i) to each taxing entity that would be impacted by a project area in the proposed
768
significant community impact project area plan;
769
(ii) to a municipality located within one-half mile of a proposed project area in the
770
proposed significant community impact project area plan; and
771
(iii) for a proposed project area in the proposed significant community project area
772
plan, as a class A notice under Section 63G-30-102, for at least 10 days.
773
(3)(a) A private owner of land proposed to be included within a proposed project area
774
may request that the owner's land be excluded from a project area.
775
(b) A request under Subsection (3)(a) shall be submitted to the board:
776
(i) in writing; and
777
(ii) no more than 45 days after the public meeting described in Subsection (1).
778
(4) Before adopting a proposed significant community impact project plan, the board:
- 23 - S.B. 337 02-26 10:50
779
(a) shall eliminate from a proposed project area the land of any owner who timely
780
requests the owner's land to be excluded from the project area under Subsection (3);
781
and
782
(b) may make other modifications to the proposed significant community impact project
783
plan that the board considers necessary or appropriate.
784
(5) Notwithstanding Subsections (2) through (4), if a proposed significant community
785
impact project plan includes the creation of an authority-run project area, the
786
authority-run project area shall be noticed and created by the authority designated in the
787
proposed significant community impact project plan according to the statutory
788
provisions governing the authority.
789
(6) The board may adopt no more than three significant community impact project areas in
790
a calendar year.
791
Section 16. Section 11-71-403 is enacted to read:
792
11-71-403 (Effective 05/07/25). Approval -- Effective date -- Certain legal
793
challenges barred.
794
(1) The board may adopt a proposed significant community impact project plan by
795
resolution, with any modifications described in Subsection 11-71-402(4), following
796
consideration and discussion of:
797
(a) long-term population growth estimates in the state and areas in and around a
798
proposed project area;
799
(b) workforce needs and availability, especially for targeted industries identified by the
800
council;
801
(c) infrastructure needs in a proposed project area, including water, power,
802
transportation, and telecommunications;
803
(d) the availability of, and impact on the availability of, resources like water, energy, air
804
quality, and recreational opportunity;
805
(e) the needs of urban and rural areas of the state;
806
(f) impacts to the quality of life for all residents of the state; and
807
(g) any comments received before or during the public meeting described in Section
808
11-71-402.
809
(2) The board is not required to secure local consent from any affected local government
810
entity before approving a proposed significant community impact project plan or
811
associated project area.
812
(3) A resolution approving a significant community impact project plan shall contain, at
- 24 - 02-26 10:50 S.B. 337
813
minimum, the board's findings that:
814
(a) the proposed significant community impact project plan addresses an economic
815
opportunity of statewide concern;
816
(b) there is a public benefit to the proposed significant community impact project plan;
817
(c) the proposed significant community impact project plan is economically sound and
818
feasible to adopt and carry out; and
819
(d) if adopted, the proposed significant community impact project plan will promote
820
strategic economic development objectives for the state, as established by the council
821
under Section 63N-1a-502.
822
(4) The board may adopt no more than three significant community impact project plans
823
and associated project areas in a calendar year.
824
(5) If a parcel within a project area approved by the board under this section is part of a
825
project area, as that term is defined in Section 17C-1-102, a housing and transit
826
reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
827
Reinvestment Zone Act, a first home investment zone created under Title 63N, Chapter
828
3, Part 16, First Home Investment Zone Act, or a home ownership promotion zone
829
created under Title 10, Chapter 9a, Part 10, Home Ownership Promotion Zone for
830
Municipalities, or Title 17, Chapter 27a, Part 12, Home Ownership Promotion Zone for
831
Counties, the chief executive officer and board shall work with the relevant local
832
government entity to establish how the overlapping parcel shall be managed and how
833
revenue generated by activity on the parcel shall be distributed.
834
(6)(a) A significant community impact project plan and the project area associated with
835
the plan becomes effective on the date designated by the board in the resolution
836
described in this section.
837
(b)(i) Property tax differential may begin to be generated for an approved project area
838
on January 1 following the approval of a significant community impact project
839
plan.
840
(ii) Sales and use tax differential may begin to be generated for an approved project
841
area from the beginning of the first fiscal quarter following 90 days from the
842
approval of a significant community impact project plan.
843
(c) Upon the effective date described in Subsection (6)(a), all affected local taxing
844
entities are required to participate according to the terms approved by the board and
845
each affected taxing entity is required to participate at the same rate.
846
(7) A legal action or other challenge to a significant community impact project plan or a
- 25 - S.B. 337 02-26 10:50
847
project area in a significant community impact project plan is barred unless brought
848
within 30 days after the effective date of the significant community impact project plan,
849
as described in Subsection (6)(a).
850
Section 17. Section 11-71-404 is enacted to read:
851
11-71-404 (Effective 05/07/25). Notice of significant community impact project
852
plan adoption -- Notice of project area adoptions -- Effective date -- Time for challenging
853
a statewide community impact project plan or project area.
854
(1) Upon the board's adoption of a significant community impact project plan as described
855
in Section 11-71-403, the board shall provide notice as provided in Subsection (2) by
856
publishing or causing to be published, legal notice for the project area included in the
857
significant community impact project plan, as a class A notice under Section 63G-30-102,
858
for at least 30 days.
859
(2)(a) Each notice under Subsection (1) shall include:
860
(i) the board resolution adopting the significant community impact project plan or a
861
summary of the board resolution; and
862
(ii) a statement that the significant community impact project plan, including a
863
description of all project areas approved in the plan, is available for general public
864
inspection and the hours for inspection.
865
(b) The statement required under Subsection (2)(a)(ii) may be included within the board
866
resolution adopting the significant community impact project plan or within the
867
summary of the resolution.
868
(3) The board shall make the adopted significant community impact project plan and a
869
description of the project area available to the general public at the authority's offices
870
during normal business hours.
871
(4) Within 10 days after the day on which a significant community impact project area is
872
established, or after an amendment to a significant community impact project plan is
873
adopted that modifies a boundary of a project area, the board shall send notice of the
874
establishment or modification of the project area and an accurate map or plat of the
875
project area to:
876
(a) the State Tax Commission;
877
(b) the Utah Geospatial Resource Center created in Section 63A-16-505; and
878
(c) the assessor and recorder of each county where the project area is located.
879
Section 18. Section 11-71-405 is enacted to read:
880
11-71-405 (Effective 05/07/25). Amendment to a significant community impact
- 26 - 02-26 10:50 S.B. 337
881
project plan.
882
(1) The board may amend an adopted significant community impact project plan by
883
following the same procedure under this part that applies to the initial adoption of a
884
significant community impact project plan.
885
(2) If an amendment to a significant community impact project plan results in land being
886
included in a project area that was not included in the project area before the
887
amendment, the base taxable value applicable to the project area before the amendment
888
also applies to the land added to the project area by amendment.
889
Section 19. Section 11-71-501 is enacted to read:
890
Part 5. Project Area Budget
891
11-71-501 (Effective 05/07/25). Project area budget.
892
(1) Before the agency may use the property tax differential from a project area, the board
893
shall prepare and adopt a project area budget.
894
(2) A project area budget shall include:
895
(a) the base taxable value of property in the project area;
896
(b) the projected property tax differential expected to be generated within the project
897
area;
898
(c) the amount of the property tax differential expected to be used to implement the
899
project area plan, including the estimated amount of the property tax differential to be
900
used for:
901
(i) land acquisition;
902
(ii) public infrastructure and improvements;
903
(iii) a remediation project, if applicable; and
904
(iv) loans, grants, or other incentives to private and public entities;
905
(d) the property tax differential expected to be used to cover the cost of administering
906
the project area plan;
907
(e) the amount of property tax differential expected to be shared with other taxing
908
entities; and
909
(f) for property that the authority owns or leases and expects to sell or sublease, the
910
expected total cost of the property to the authority and the expected selling price or
911
lease payments.
912
(3) The board may amend an adopted project area budget as and when the board considers
913
it appropriate.
914
Section 20. Section 11-71-502 is enacted to read:
- 27 - S.B. 337 02-26 10:50
915
11-71-502 (Effective 05/07/25). Budgets impacting public infrastructure districts
916
created by the agency.
917
(1)(a) Before the agency creates a subsidiary public infrastructure district for a
918
significant community impact project area, the board shall prepare and adopt a public
919
infrastructure district budget.
920
(b) The public infrastructure district budget described in Subsection (1)(a) shall include
921
the projected revenue to be generated by the public infrastructure district through:
922
(i) the issuance of bonds; and
923
(ii) the levying of taxes as described in this section.
924
(2)(a)(i) A public infrastructure district created by the agency as a subsidiary of the
925
agency in accordance with Title 17D, Chapter 4, Public Infrastructure District Act,
926
may, subject to limitations of Title 17D, Chapter 4, Public Infrastructure District
927
Act, levy a property tax for the operations and maintenance of the subsidiary
928
public infrastructure district's financed infrastructure and related improvements,
929
subject to a maximum rate of .015%.
930
(ii) A levy under Subsection (2)(a)(i) may be separate from a public infrastructure
931
district property tax levy for a bond.
932
(b) If a subsidiary public infrastructure district issues a bond:
933
(i) the subsidiary public infrastructure district may:
934
(A) delay the effective date of the property tax levy for the bond until after the
935
period of capitalized interest payments; and
936
(B) covenant with bondholders not to reduce or impair the property tax levy; and
937
(ii) notwithstanding a provision to the contrary in Title 17D, Chapter 4, Public
938
Infrastructure District Act, the tax rate for the property tax levy for the bond may
939
not exceed a rate that generates more revenue than required to pay the annual debt
940
service of the bond plus administrative costs, subject to a maximum rate of .02%.
941
(c)(i) A subsidiary public infrastructure district may create tax areas, as defined in
942
Section 59-2-102, within the public infrastructure district and apply a different
943
property tax rate to each tax area, subject to the maximum levy rate limitations
944
described in Subsections (2)(a)(i) and (2)(b)(ii).
945
(ii) If a subsidiary public infrastructure district issues bonds, the subsidiary public
946
infrastructure district may issue bonds secured by property taxes from:
947
(A) the entire subsidiary public infrastructure district boundary; or
948
(B) one or more tax areas within the subsidiary public infrastructure district
- 28 - 02-26 10:50 S.B. 337
949
boundary.
950
(3) The requirements of this section may be in addition to the requirements described in
951
Part 7, Beehive Development Agency Bonds.
952
Section 21. Section 11-71-601 is enacted to read:
953
Part 6. Project Area Revenue
954
11-71-601 (Effective 05/07/25). Project area funds -- Project area agreements.
955
(1) The following constitute potential project area funds for an approved project area that is
956
part of a significant community impact project plan:
957
(a) a grant, award, loan, or incentive authorized under Title 63N, Economic Opportunity
958
Act, included as a part of the approved significant community impact project plan;
959
(b) property tax differential from a project area, as described in Section 11-71-605;
960
(c) sales and use tax differential from a project area, as described in Section 11-71-606;
961
and
962
(d) revenue generated by a tax authorized under this part.
963
(2) Project area funds may be expended for a purpose described in a significant community
964
impact project plan, including:
965
(a) to pay for, including financing or refinancing, all or part of the development of land
966
within an project area, including assisting the ongoing operation of a development or
967
a facility within the project area;
968
(b) to pay the cost of the installation and construction of public infrastructure and
969
improvements within the project area from which the project area funds were
970
collected;
971
(c) to pay the cost of the installation of public infrastructure and improvements outside a
972
project area if the board determines by resolution that the infrastructure and
973
improvements are of benefit to the project area;
974
(d) to pay the principal and interest on bonds issued by the agency for the benefit of the
975
project area, if the bonds were first approved by the board;
976
(e) to pay the cost of acquiring a conservation easement on land that is part of or
977
adjacent to the project area; and
978
(f) to incentivize development that is contemplated in an approved significant
979
community impact project plan.
980
(3)(a) The agency may use money it receives under Subsections 59-12-103(17) and (19)
981
for the development of the project area that generated the funds, including paying for
982
bonds issued to pay for the development and construction of projects in the project
- 29 - S.B. 337 02-26 10:50
983
area.
984
(b) If the amount of money the agency receives under Subsection (3)(a) exceeds the
985
amount required to pay the annual debt service on bonds issued to pay for the
986
development and construction of a project, the agency may use the excess amount
987
received to:
988
(i) pay down the principal on a bond associated with the project area that generated
989
the funds; or
990
(ii) support development outside of the project area that generated the funds.
991
(4) Before project funds may be used outside of the project area, the board shall:
992
(a) make a finding that the use of project area funds outside the project area will directly
993
benefit the project area and the elements of the significant community impact project
994
plan being targeted in the project area; and
995
(b) describe the maximum distance that project area funds may be used outside the
996
project area.
997
Section 22. Section 11-71-602 is enacted to read:
998
11-71-602 (Effective 05/07/25). Accommodations tax.
999
(1) As used in this section, "accommodations and services" means an accommodation or
1000
service described in Subsection 59-12-103(1)(i).
1001
(2) The board may impose an accommodations tax on a provider for amounts paid or
1002
charged for accommodations and services, if the place of accommodation is located
1003
within the project area on:
1004
(a) municipality-owned, county-owned, or state-owned property;
1005
(b) privately owned property on which a municipality, county, or the state owns some or
1006
all of the place of accommodation; or
1007
(c) privately owned property on which the board finds that a private owner is receiving
1008
significant benefit due to the proximity of the project area to the privately owned
1009
property.
1010
(3) The maximum rate of the accommodations tax authorized by this section is 15% of the
1011
amounts paid to or charged by the provider for accommodations and services.
1012
(4) A provider may recover an amount equal to the accommodations tax authorized in this
1013
section from customers, if the provider includes the amount as a separate billing line
1014
item.
1015
(5) If the board imposes the tax described in this section for an area, the board may not also
1016
impose on the amounts paid or charged for accommodations and services in the same
- 30 - 02-26 10:50 S.B. 337
1017
area any other tax described in:
1018
(a) Title 59, Chapter 12, Sales and Use Tax Act; or
1019
(b) Title 59, Chapter 28, State Transient Room Tax Act.
1020
(6) Except as provided in Subsection (7) or (8), the tax imposed under this section shall be
1021
administered, collected, and enforced in accordance with:
1022
(a) the same procedures used to administer, collect, and enforce the tax under:
1023
(i) Title 59, Chapter 12, Part 1, Tax Collection; or
1024
(ii) Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
1025
(b) Title 59, Chapter 1, General Taxation Policies.
1026
(7) The location of a transaction shall be determined in accordance with Sections 59-12-211
1027
through 59-12-215.
1028
(8)(a) A tax under this section is not subject to Section 59-12-107.1 or 59-12-123 or
1029
Subsections 59-12-205(2) through (5).
1030
(b) The exemptions described in Sections 59-12-104, 59-12-104.1, and 59-12-104.6 do
1031
not apply to a tax imposed under this section.
1032
(9) The State Tax Commission shall:
1033
(a) except as provided in Subsection (9)(b), distribute the revenue collected from the tax
1034
to the board; and
1035
(b) retain and deposit an administrative charge in accordance with Section 59-1-306
1036
from revenue the State Tax Commission collects from a tax under this section.
1037
(10)(a) If the board imposes, repeals, or changes the rate of tax under this section, the
1038
implementation, repeal, or change shall take effect:
1039
(i) on the first day of a calendar quarter; and
1040
(ii) after a 90-day period beginning on the date the State Tax Commission receives
1041
the notice described in Subsection (10)(b) from the legislative body of the county
1042
or municipality.
1043
(b) The notice required in Subsection (10)(a)(ii) shall state:
1044
(i) that the county or municipality will impose, repeal, or change the rate of a tax
1045
under this section;
1046
(ii) the effective date of the implementation, repeal, or change of the tax; and
1047
(iii) the rate of the tax.
1048
Section 23. Section 11-71-603 is enacted to read:
1049
11-71-603 (Effective 05/07/25). Energy sales and use tax.
1050
(1) The board may levy an energy tax within a project area on an energy supplier as defined
- 31 - S.B. 337 02-26 10:50
1051
in Section 10-1-303.
1052
(2) The maximum rate of the energy tax under this section is 6% of the delivered value as
1053
defined in Section 10-1-303, except that delivered value does not include the amount of
1054
a tax paid under this section.
1055
(3)(a) An energy supplier may recover an amount equal to the energy tax from the
1056
energy suppplier's customers, if the energy supplier includes the amount as a separate
1057
billing line item.
1058
(b) The energy tax levied under this section is in addition to the rate approved by the
1059
Public Service Commission and charged to the customer.
1060
(4) If the agency has levied a municipal energy tax in the project area, the energy tax paid
1061
by a customer is reduced by any municipal energy tax paid by that customer on the same
1062
delivered value.
1063
(5)(a) The energy tax is payable by the energy supplier to the agency on a monthly basis
1064
as described by the resolution levying the tax.
1065
(b) The resolution shall allow the energy supplier to retain 1% of the tax remittance each
1066
month to offset the energy supplier's costs of collecting and remitting the tax.
1067
Section 24. Section 11-71-604 is enacted to read:
1068
11-71-604 (Effective 05/07/25). Other taxes levied for a project area.
1069
(1) If the board does not levy the tax described in Section 11-71-602 for an area, the board
1070
may levy the following taxes:
1071
(a) a transient room tax described in Subsection 59-12-352(7);
1072
(b) resort community tax described in Section 59-12-401; and
1073
(c) additional resort community sales and use tax described in Section 59-12-402.
1074
(2) Revenue generated by a tax described in this section from a project area constitutes
1075
project area funds for that project area.
1076
Section 25. Section 11-71-605 is enacted to read:
1077
11-71-605 (Effective 05/07/25). Property tax differential.
1078
(1) A county that collects property tax located within a project area shall, in accordance
1079
with Section 59-2-1365, distribute to the agency:
1080
(a) beginning the year after a statewide community impact project plan is approved by
1081
resolution and for up to 25 years, up to 75% of property tax differential generated in
1082
the project area; and
1083
(b) beginning the twenty-sixth year after a statewide community impact project plan is
1084
approved by resolution and for 15 years thereafter, unless earlier terminated by
- 32 - 02-26 10:50 S.B. 337
1085
resolution of the board, 50% of property tax differential generated in the project area.
1086
(2) The agency may utilize property tax differential as described in this section and subject
1087
to the requirements of Section 11-71-501.
1088
(3) Improvements on a parcel within a project area become subject to property tax on
1089
January 1 immediately following the day on which the authority, or an entity designated
1090
by the authority, issues a certificate of occupancy or other final approval with respect to
1091
those improvements.
1092
(4) If an approved significant community impact project plan includes the creation of one
1093
or more authority-run project areas:
1094
(a) the authority shall manage the authority-run project area:
1095
(i) pursuant to the authority's statutory provisions; and
1096
(ii) in accordance with any agreement between the board and the authority governing
1097
the significant community impact project plan; and
1098
(b) the provisions of this section do not apply to the authority-run project area.
1099
Section 26. Section 11-71-606 is enacted to read:
1100
11-71-606 (Effective 05/07/25). Sales and use tax differential.
1101
(1)(a) The State Tax Commission shall, in accordance with Sections 59-12-103 and
1102
59-12-205, distribute to the fiscal agent designated by the board in an approved
1103
statewide community impact project plan:
1104
(i) beginning the year after a statewide community impact project plan is approved by
1105
resolution and for up to 25 years, 75% of property tax differential generated in the
1106
sales and use tax boundary for the project area; and
1107
(ii) beginning the twenty-sixth year after a statewide community impact project plan
1108
is approved by resolution and for up to 15 years thereafter, unless earlier
1109
terminated by resolution of the board, 50% of sales and use tax differential
1110
generated in the sales and use tax boundary for the project area.
1111
(b) The State Tax Commission shall determine the sales and use tax boundary, in
1112
consultation with the board, as close to the boundary of the established project area as
1113
practical.
1114
(2) If an approved significant community impact project plan includes the creation of one
1115
or more authority-run project areas:
1116
(a) the authority shall manage the authority-run project area:
1117
(i) pursuant to the authority's statutory provisions; and
1118
(ii) in accordance with any agreement between the board and the authority governing
- 33 - S.B. 337 02-26 10:50
1119
the significant community impact project plan; and
1120
(b) the provisions of this section do not apply to the authority-run project area.
1121
Section 27. Section 11-71-701 is enacted to read:
1122
Part 7. Beehive Development Agency Bonds
1123
11-71-701 (Effective 05/07/25). Resolution authorizing issuance of bonds --
1124
Characteristics of bonds -- Notice.
1125
(1) The agency may not issue bonds under this part unless the board first:
1126
(a) adopts a parameters resolution for the bonds that sets forth:
1127
(i) the maximum:
1128
(A) amount of bonds;
1129
(B) term; and
1130
(C) interest rate; and
1131
(ii) the expected security for the bonds; and
1132
(b) submits the parameters resolution for review and recommendation to the State
1133
Finance Review Commission created in Section 63C-25-201.
1134
(2)(a) As provided in the agency resolution authorizing the issuance of bonds under this
1135
part or the trust indenture under which the bonds are issued, bonds issued under this
1136
part may be issued in one or more series and may be sold at public or private sale and
1137
in the manner provided in the resolution or indenture.
1138
(b) Bonds issued under this part shall bear the date, be payable at the time, bear interest
1139
at the rate, be in the denomination and in the form, carry the conversion or
1140
registration privileges, have the rank or priority, be executed in the manner, be
1141
subject to the terms of redemption or tender, with or without premium, be payable in
1142
the medium of payment and at the place, and have other characteristics as provided in
1143
the agency resolution authorizing the bond's issuance or the trust indenture under
1144
which the bonds are issued.
1145
(3) Upon the board's adoption of a resolution providing for the issuance of bonds, the board
1146
may provide for the publication of the resolution:
1147
(a) for the area within the agency's boundaries, as a class A notice under Section
1148
63G-30-102, for at least 30 days; and
1149
(b) as required in Section 45-1-101.
1150
(4) In lieu of publishing the entire resolution, the board may publish notice of bonds that
1151
contains the information described in Subsection 11-14-316(2).
1152
(5) For a period of 30 days after the publication, any person in interest may contest:
- 34 - 02-26 10:50 S.B. 337
1153
(a) the legality of the resolution or proceeding;
1154
(b) any bonds that may be authorized by the resolution or proceeding; or
1155
(c) any provisions made for the security and payment of the bonds.
1156
(6)(a) A person may contest the matters set forth in Subsection (5) by filing a verified
1157
written complaint, within 30 days of the publication under Subsection (5), in the
1158
court with jurisdiction in the county in which the person resides.
1159
(b) A person may not contest the matters set forth in Subsection (5), or the regularity,
1160
formality, or legality of the resolution or proceeding, for any reason, after the 30-day
1161
period for contesting provided in Subsection (6)(a).
1162
(7) No later than 60 days after the closing day of any bonds, the agency shall report the
1163
bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
1164
(a) the Executive Appropriations Committee; and
1165
(b) the State Finance Review Commission created in Section 63C-25-201.
1166
Section 28. Section 11-71-702 is enacted to read:
1167
11-71-702 (Effective 05/07/25). Sources from which bonds may be made payable
1168
-- Agency powers regarding bonds.
1169
(1) The principal and interest on bonds issued by the agency may be made payable from:
1170
(a) the income and revenues of the projects financed with the proceeds of the bonds;
1171
(b) the income and revenues of certain designated projects that were financed in whole
1172
or in part with the proceeds of the bonds;
1173
(c) the income, proceeds, revenues, property, and funds the agency derives from or holds
1174
in connection with the agency's undertaking and carrying out development of a
1175
significant community impact project plan or an associated project area;
1176
(d) property tax differential funds;
1177
(e) sales and use differential funds;
1178
(f) agency revenues generally;
1179
(g) a contribution, loan, grant, or other financial assistance from the federal government
1180
or a public entity in aid of the agency; or
1181
(h) funds derived from any combination of the methods listed in Subsections (1)(a)
1182
through (g).
1183
(2) In connection with the issuance of agency bonds, the agency may:
1184
(a) pledge all or any part of the agency's gross or net rents, fees, or revenues that exist or
1185
may come into existence;
1186
(b) encumber by mortgage, deed of trust, or otherwise all or any part of the agency's real
- 35 - S.B. 337 02-26 10:50
1187
or personal property, then owned or thereafter acquired; and
1188
(c) make the covenants and take the action that may be necessary, convenient, or
1189
desirable to secure the agency's bonds, or, except as otherwise provided in this
1190
chapter, that will tend to make the bonds more marketable, even though such
1191
covenants or actions are not specifically enumerated in this chapter.
1192
Section 29. Section 11-71-703 is enacted to read:
1193
11-71-703 (Effective 05/07/25). Purchase of bonds.
1194
(1) Any person, firm, corporation, association, political subdivision of the state, or other
1195
entity or public or private officer may purchase bonds issued by an agency under this
1196
part with funds owned or controlled by the purchaser.
1197
(2) Nothing in this section may be construed to relieve a purchaser of agency bonds of any
1198
duty to exercise reasonable care in selecting securities.
1199
Section 30. Section 11-71-704 is enacted to read:
1200
11-71-704 (Effective 05/07/25). Those executing bonds not personally liable --
1201
Limitation of obligations under bonds -- Negotiability.
1202
1203
(1) A member of the board or other person executing an agency bond is not liable
1204
personally on the bond.
1205
(2)(a) A bond issued by the agency is not a general obligation or liability of the state or
1206
any of the state's political subdivisions and does not constitute a charge against the
1207
state's general credit or taxing powers.
1208
(b) A bond issued by the agency is not payable out of any funds or properties other than
1209
those of the agency.
1210
(c) The state and its political subdivisions are not and may not be held liable on a bond
1211
issued by the agency.
1212
(d) A bond issued by the agency does not constitute indebtedness within the meaning of
1213
any constitutional or statutory debt limitation.
1214
(3) A bond issued by the agency under this part is fully negotiable.
1215
Section 31. Section 11-71-705 is enacted to read:
1216
11-71-705 (Effective 05/07/25). Obligee rights -- Board may confer other rights.
1217
(1) In addition to all other rights that are conferred on an obligee of a bond issued by the
1218
agency under this part and subject to contractual restrictions binding on the obligee, an
1219
obligee may:
1220
(a) by mandamus, suit, action, or other proceeding, compel an agency and its board,
- 36 - 02-26 10:50 S.B. 337
1221
officers, agents, or employees to perform every term, provision, and covenant
1222
contained in any contract of the agency with or for the benefit of the obligee, and
1223
require the agency to carry out the covenants and agreements of the agency and to
1224
fulfill all duties imposed on the agency by this part; and
1225
(b) by suit, action, or proceeding in equity, enjoin any acts or things that may be
1226
unlawful or violate the rights of the obligee.
1227
(2)(a) In a board resolution authorizing the issuance of bonds or in a trust indenture,
1228
mortgage, lease, or other contract, the board may confer upon an obligee holding or
1229
representing a specified amount in bonds, the rights described in Subsection (2)(b), to
1230
accrue upon the happening of an event or default prescribed in the resolution,
1231
indenture, mortgage, lease, or other contract, and to be exercised by suit, action, or
1232
proceeding in any court of competent jurisdiction.
1233
(b)(i) The rights that the board may confer under Subsection (2)(a) are the rights to:
1234
(A) cause possession of all or part of a development project to be surrendered to
1235
an obligee;
1236
(B) obtain the appointment of a receiver of all or part of an agency's development
1237
project and of the rents and profits from the development project; and
1238
(C) require the agency and its board and employees to account as if the agency
1239
and the board and employees were the trustees of an express trust.
1240
(ii) If a receiver is appointed through the exercise of a right granted under Subsection
1241
(2)(b)(i)(B), the receiver:
1242
(A) may enter and take possession of the development project or any part of the
1243
development project, operate and maintain the development project, and collect
1244
and receive all fees, rents, revenues, or other charges arising from the
1245
development project after the receiver's appointment; and
1246
(B) shall keep money collected as receiver for the agency in separate accounts and
1247
apply the money pursuant to the agency obligations as the court directs.
1248
Section 32. Section 11-71-706 is enacted to read:
1249
11-71-706 (Effective 05/07/25). Bonds exempt from taxes -- Agency may
1250
purchase its own bonds.
1251
(1) A bond issued by the agency, or a subsidiary public infrastructure district as described
1252
in Section 11-71-502, under this part is issued for an essential public and governmental
1253
purpose and is, together with interest on the bond and income from the bond, exempt
1254
from all state taxes except the corporate franchise tax.
- 37 - S.B. 337 02-26 10:50
1255
(2) The agency may purchase the agency's own bonds at a price that the board determines.
1256
(3) Nothing in this section may be construed to limit the right of an obligee to pursue a
1257
remedy for the enforcement of a pledge or lien given under this part by the agency on
1258
the agency's rents, fees, grants, properties, or revenues.
1259
Section 33. Section 11-71-801 is enacted to read:
1260
Part 8. Agency Budget, Reporting, and Audits
1261
11-71-801 (Effective 05/07/25). Annual agency budget -- Fiscal year -- Public
1262
hearing required -- Auditor forms -- Requirement to file annual budget.
1263
(1) The agency shall prepare and the board shall adopt an annual budget of revenues and
1264
expenditures for the agency for each fiscal year.
1265
(2) Each annual agency budget shall be adopted before June 30, except that the agency's
1266
initial budget shall be adopted as soon as reasonably practicable after the organization of
1267
the board and the beginning of agency operations.
1268
(3) The agency's fiscal year shall be the period from July 1 to the following June 30.
1269
(4)(a) Before adopting an annual budget, the board shall hold a public hearing on the
1270
annual budget.
1271
(b) The agency shall provide notice of the public hearing on the annual budget by
1272
publishing notice:
1273
(i) at least once in a newspaper of general circulation within the state, at least one
1274
week before the public hearing; and
1275
(ii) on the Utah Public Notice Website created in Section 63A-16-601, at least one
1276
week immediately before the public hearing.
1277
(c) The agency shall make the annual budget available for public inspection at least three
1278
days before the date of the public hearing.
1279
(5) The state auditor shall prescribe the budget forms and the categories to be contained in
1280
each agency budget, including:
1281
(a) revenues and expenditures for the budget year;
1282
(b) legal fees; and
1283
(c) administrative costs, including rent, supplies, and salaries of agency personnel.
1284
(6)(a) Within 30 days after adopting an annual budget, the board shall file a copy of the
1285
annual budget with the auditor of each county in which the agency jurisdictional land
1286
is located, the State Tax Commission, the state auditor, the State Board of Education,
1287
and each taxing entity that levies a tax on property from which the agency collects
1288
property tax differential.
- 38 - 02-26 10:50 S.B. 337
1289
(b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
1290
state as a taxing entity is met if the agency files a copy with the State Tax
1291
Commission and the state auditor.
1292
Section 34. Section 11-71-802 is enacted to read:
1293
11-71-802 (Effective 05/07/25). Amending the agency annual budget.
1294
(1) The board may by resolution amend an annual agency budget.
1295
(2) An amendment of the annual agency budget that would increase the total expenditures
1296
may be made only after public hearing by notice published as required for initial
1297
adoption of the annual budget.
1298
(3) The agency may not make expenditures in excess of the total expenditures established
1299
in the annual budget as the budget is adopted or amended.
1300
Section 35. Section 11-71-803 is enacted to read:
1301
11-71-803 (Effective 05/07/25). Report.
1302
(1) No later than September 1 of each year, the board shall evaluate the agency's work to
1303
pursue strategic economic development objectives in the state.
1304
(2) No later than October 1 of each year, the board shall report to the council regarding:
1305
(a) progress made toward strategic economic development objectives;
1306
(b) draft proposals for significant community impact project plans;
1307
(c) complete proposals for significant community impact project plans; and
1308
(d) approved significant community impact project plans.
1309
(3) On or before October 1 of each year, the board shall provide a written report to the
1310
Economic Development and Workforce Services Interim Committee regarding any
1311
approved significant community impact project plans.
1312
(4)(a) On or before November 1 of each year, the agency shall prepare and file a report
1313
with the county auditor of each county in which a project area created under this
1314
chapter is located, the State Tax Commission, the State Board of Education, and each
1315
taxing entity that levies a tax on property from which the agency collects property tax
1316
differential.
1317
(b) The requirement of Subsection (4)(a) to file a copy of the report with the state as a
1318
taxing entity is met if the agency files a copy with the State Tax Commission and the
1319
state auditor.
1320
(c) Each report under this Subsection (4) shall contain:
1321
(i) an estimate of the property tax differential to be paid to the agency for the calendar
1322
year ending December 31; and
- 39 - S.B. 337 02-26 10:50
1323
(ii) an estimate of the property tax differential to be paid to the agency for the
1324
calendar year beginning the next January 1.
1325
(5) Before November 30 of each year, the board shall present a report to the Executive
1326
Appropriations Committee of the Legislature, as the Executive Appropriations
1327
Committee directs, that includes:
1328
(a) an overview of any policies created by the board under this chapter;
1329
(b) an accounting of how agency funds have been spent;
1330
(c) any agency business plans developed under Part 5, Project Area Budget; and
1331
(d) an explanation of the agency's progress in achieving the policies and objectives
1332
described in this chapter.
1333
Section 36. Section 11-71-804 is enacted to read:
1334
11-71-804 (Effective 05/07/25). Audit requirements.
1335
The agency shall comply with the audit requirements of Title 51, Chapter 2a,
1336
Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
1337
Entities Act.
1338
Section 37. Section 11-71-805 is enacted to read:
1339
11-71-805 (Effective 05/07/25). Audit report.
1340
(1) The agency shall, within 180 days after the end of the agency's fiscal year, file a copy of
1341
the audit report with the county auditor, the State Tax Commission, the State Board of
1342
Education, and each taxing entity that levies a tax on property from which the agency
1343
collects property tax differential.
1344
(2) Each audit report under Subsection (1) shall include:
1345
(a) the property tax differential collected by the agency;
1346
(b) the outstanding principal amount of bonds issued or other loans incurred to finance
1347
the costs associated with the agency's projects; and
1348
(c) the actual amount expended for:
1349
(i) acquisition of property;
1350
(ii) site improvements or site preparation costs;
1351
(iii) installation of public utilities or other public improvements; and
1352
(iv) administrative costs of the agency.
1353
Section 38. Section 11-71-806 is enacted to read:
1354
11-71-806 (Effective 05/07/25). Board is a public treasurer -- Certain agency
1355
funds are public funds.
1356
(1) The board, or the board's designee:
- 40 - 02-26 10:50 S.B. 337
1357
(a) is a public treasurer, as defined in Section 51-7-3; and
1358
(b) shall invest the agency funds specified in Subsection (2) as provided in that
1359
subsection.
1360
(2) Notwithstanding Subsection 63E-2-110(2)(a), property tax differential funds, sales and
1361
use tax differential, tax revenue collected by the agency as described in this chapter, and
1362
appropriations that the agency receives from the state:
1363
(a) are public funds; and
1364
(b) shall be invested as provided in Title 51, Chapter 7, State Money Management Act.
1365
Section 39. Section 11-71-901 is enacted to read:
1366
Part 9. Agency Dissolution
1367
11-71-901 (Effective 05/07/25). Dissolution of agency -- Restrictions -- Notice of
1368
dissolution -- Disposition of agency property -- Agency records -- Dissolution expenses.
1369
(1) The agency may not be dissolved unless the agency has no outstanding bonded
1370
indebtedness, other unpaid loans, indebtedness, or advances, and no legally binding
1371
contractual obligations with persons or entities other than the state.
1372
(2) Upon the dissolution of the agency:
1373
(a) the Governor's Office of Economic Opportunity shall publish a notice of dissolution:
1374
(i) for the county in which a project area created by the dissolved agency is located,
1375
as a class A notice under Section 63G-30-102, for at least seven days; and
1376
(ii) as required in Section 45-1-101; and
1377
(b) all title to property owned by the agency vests in the state.
1378
(3) The books, documents, records, papers, and seal of each dissolved agency shall be
1379
deposited for safekeeping and reference with the state auditor.
1380
(4) The agency shall pay all expenses of the deactivation and dissolution.
1381
Section 40. Section 17D-4-102 is amended to read:
1382
17D-4-102 (Effective 05/07/25). Definitions.
1383
As used in this chapter:
1384
(1) "Board" means the board of trustees of a public infrastructure district.
1385
(2) "Creating entity" means the county, municipality, or development authority that
1386
approves the creation of a public infrastructure district.
1387
(3) "Development authority" means:
1388
(a) the Utah Inland Port Authority created in Section 11-58-201;
1389
(b) the Point of the Mountain State Land Authority created in Section 11-59-201;
1390
(c) the Utah Fairpark Area Investment and Restoration District created in Section
- 41 - S.B. 337 02-26 10:50
1391
11-70-201; [or]
1392
(d) the military installation development authority created in Section 63H-1-201[.] ; or
1393
(e) the Beehive Development Agency created in Section 11-71-201.
1394
(4) "District applicant" means the person proposing the creation of a public infrastructure
1395
district.
1396
(5) "Division" means a division of a public infrastructure district:
1397
(a) that is relatively equal in number of eligible voters or potential eligible voters to all
1398
other divisions within the public infrastructure district, taking into account existing or
1399
potential developments which, when completed, would increase or decrease the
1400
population within the public infrastructure district; and
1401
(b) which a member of the board represents.
1402
(6) "Governing document" means the document governing a public infrastructure district to
1403
which the creating entity agrees before the creation of the public infrastructure district,
1404
as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
1405
Provisions Applicable to All Special Districts, and this chapter.
1406
(7)(a) "Limited tax bond" means a bond:
1407
(i) that is directly payable from and secured by ad valorem property taxes that are
1408
levied:
1409
(A) by a public infrastructure district that issues the bond; and
1410
(B) on taxable property within the district;
1411
(ii) that is a general obligation of the public infrastructure district; and
1412
(iii) for which the ad valorem property tax levy for repayment of the bond does not
1413
exceed the property tax levy rate limit established under Section 17D-4-303 for
1414
any fiscal year, except as provided in Subsection 17D-4-301(8).
1415
(b) "Limited tax bond" does not include:
1416
(i) a short-term bond;
1417
(ii) a tax and revenue anticipation bond; or
1418
(iii) a special assessment bond.
1419
(8) "Public infrastructure and improvements" means:
1420
(a) the same as that term is defined in Section 11-58-102, for a public infrastructure
1421
district created by the Utah Inland Port Authority created in Section 11-58-201;
1422
(b) the same as that term is defined in Section 11-70-101, for a public infrastructure
1423
district created by the Utah Fairpark Area Investment and Restoration District created
1424
in Section 11-70-201; [and]
- 42 - 02-26 10:50 S.B. 337
1425
(c) the same as that term is defined in Section 63H-1-102, for a public infrastructure
1426
district created by the military installation development authority created in Section
1427
63H-1-201[.] ; and
1428
(d) the same as that term is defined in Section 11-71-101, for a public infrastructure
1429
district created by the Beehive Development Agency created in Section 11-71-201.
1430
Section 41. Section 35A-8-202 is amended to read:
1431
35A-8-202 (Effective 05/07/25). Powers and duties of division.
1432
(1) The division shall:
1433
(a) assist local governments and citizens in the planning, development, and maintenance
1434
of necessary public infrastructure and services;
1435
(b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
1436
planning commissions, area-wide clearinghouses, zoning commissions, parks or
1437
recreation boards, community development groups, community action agencies, and
1438
other agencies created for the purpose of aiding and encouraging an orderly,
1439
productive, and coordinated development of the state and its political subdivisions;
1440
(c) assist the governor in coordinating the activities of state agencies which have an
1441
impact on the solution of community development problems and the implementation
1442
of community plans;
1443
(d) serve as a clearinghouse for information, data, and other materials which may be
1444
helpful to local governments in discharging their responsibilities and provide
1445
information on available federal and state financial and technical assistance;
1446
(e) carry out continuing studies and analyses of the problems faced by communities
1447
within the state and develop such recommendations for administrative or legislative
1448
action as appear necessary;
1449
(f) assist in funding affordable housing;
1450
(g) support economic development activities through grants, loans, and direct programs
1451
financial assistance;
1452
(h) certify project funding at the local level in conformance with federal, state, and other
1453
requirements;
1454
(i) utilize the capabilities and facilities of public and private universities and colleges
1455
within the state in carrying out its functions; [and]
1456
(j) assist and support local governments, community action agencies, and citizens in the
1457
planning, development, and maintenance of home weatherization, energy efficiency,
1458
and antipoverty activities[.] ;
- 43 - S.B. 337 02-26 10:50
1459
(k) coordinate with the chief executive officer of the Governor's Office of Economic
1460
Development in pursuing statewide objectives for housing; and
1461
(l) assist the chief executive officer of the Governor's Office of Economic Development
1462
in fulfilling the duties described in Section 63N-1a-303.2.
1463
(2) The division may:
1464
(a) by following the procedures and requirements of Title 63J, Chapter 5, Federal Funds
1465
Procedures Act, seek federal grants, loans, or participation in federal programs;
1466
(b) if any federal program requires the expenditure of state funds as a condition to
1467
participation by the state in any fund, property, or service, with the governor's
1468
approval, expend whatever funds are necessary out of the money provided by the
1469
Legislature for the use of the department;
1470
(c) in accordance with Part 9, Domestic Violence Shelters, assist in developing,
1471
constructing, and improving shelters for victims of domestic violence, as described in
1472
Section 77-36-1, through loans and grants to nonprofit and governmental entities; and
1473
(d) assist, when requested by a county or municipality, in the development of accessible
1474
housing.
1475
Section 42. Section 59-12-103 is amended to read:
1476
59-12-103 (Effective 01/01/26). Sales and use tax base -- Rates -- Effective dates
1477
-- Use of sales and use tax revenue.
1478
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
1479
price for amounts paid or charged for the following transactions:
1480
(a) retail sales of tangible personal property made within the state;
1481
(b) amounts paid for:
1482
(i) telecommunications service, other than mobile telecommunications service, that
1483
originates and terminates within the boundaries of this state;
1484
(ii) mobile telecommunications service that originates and terminates within the
1485
boundaries of one state only to the extent permitted by the Mobile
1486
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1487
(iii) an ancillary service associated with a:
1488
(A) telecommunications service described in Subsection (1)(b)(i); or
1489
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
1490
(c) sales of the following for commercial use:
1491
(i) gas;
1492
(ii) electricity;
- 44 - 02-26 10:50 S.B. 337
1493
(iii) heat;
1494
(iv) coal;
1495
(v) fuel oil; or
1496
(vi) other fuels;
1497
(d) sales of the following for residential use:
1498
(i) gas;
1499
(ii) electricity;
1500
(iii) heat;
1501
(iv) coal;
1502
(v) fuel oil; or
1503
(vi) other fuels;
1504
(e) sales of prepared food;
1505
(f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1506
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
1507
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
1508
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
1509
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
1510
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
1511
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
1512
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
1513
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
1514
activity;
1515
(g) amounts paid or charged for services for repairs or renovations of tangible personal
1516
property, unless Section 59-12-104 provides for an exemption from sales and use tax
1517
for:
1518
(i) the tangible personal property; and
1519
(ii) parts used in the repairs or renovations of the tangible personal property described
1520
in Subsection (1)(g)(i), regardless of whether:
1521
(A) any parts are actually used in the repairs or renovations of that tangible
1522
personal property; or
1523
(B) the particular parts used in the repairs or renovations of that tangible personal
1524
property are exempt from a tax under this chapter;
1525
(h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
1526
cleaning or washing of tangible personal property;
- 45 - S.B. 337 02-26 10:50
1527
(i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
1528
court accommodations and services;
1529
(j) amounts paid or charged for laundry or dry cleaning services;
1530
(k) amounts paid or charged for leases or rentals of tangible personal property if within
1531
this state the tangible personal property is:
1532
(i) stored;
1533
(ii) used; or
1534
(iii) otherwise consumed;
1535
(l) amounts paid or charged for tangible personal property if within this state the tangible
1536
personal property is:
1537
(i) stored;
1538
(ii) used; or
1539
(iii) consumed;
1540
(m) amounts paid or charged for a sale:
1541
(i)(A) of a product transferred electronically; or
1542
(B) of a repair or renovation of a product transferred electronically; and
1543
(ii) regardless of whether the sale provides:
1544
(A) a right of permanent use of the product; or
1545
(B) a right to use the product that is less than a permanent use, including a right:
1546
(I) for a definite or specified length of time; and
1547
(II) that terminates upon the occurrence of a condition; and
1548
(n) sales of leased tangible personal property from the lessor to the lessee made in the
1549
state.
1550
(2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
1551
imposed on a transaction described in Subsection (1) equal to the sum of:
1552
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1553
(A) 4.70% plus the rate specified in Subsection (11)(a); and
1554
(B)(I) the tax rate the state imposes in accordance with Part 18, Additional
1555
State Sales and Use Tax Act, if the location of the transaction as determined
1556
under Sections 59-12-211 through 59-12-215 is in a county in which the
1557
state imposes the tax under Part 18, Additional State Sales and Use Tax Act;
1558
and
1559
(II) the tax rate the state imposes in accordance with Part 20, Supplemental
1560
State Sales and Use Tax Act, if the location of the transaction as determined
- 46 - 02-26 10:50 S.B. 337
1561
under Sections 59-12-211 through 59-12-215 is in a city, town, or the
1562
unincorporated area of a county in which the state imposes the tax under
1563
Part 20, Supplemental State Sales and Use Tax Act; and
1564
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1565
transaction under this chapter other than this part.
1566
(b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
1567
tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
1568
to the sum of:
1569
(i) a state tax imposed on the transaction at a tax rate of 2%; and
1570
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1571
transaction under this chapter other than this part.
1572
(c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
1573
on amounts paid or charged for food and food ingredients equal to the sum of:
1574
(i) a state tax imposed on the amounts paid or charged for food and food ingredients
1575
at a tax rate of 1.75%; and
1576
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1577
amounts paid or charged for food and food ingredients under this chapter other
1578
than this part.
1579
(d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
1580
or charged for fuel to a common carrier that is a railroad for use in a locomotive
1581
engine at a rate of 4.85%.
1582
(e)(i)(A) If a shared vehicle owner certifies to the commission, on a form
1583
prescribed by the commission, that the shared vehicle is an individual-owned
1584
shared vehicle, a tax imposed under Subsection (2)(a)(i)(A) does not apply to
1585
car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle
1586
owner.
1587
(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
1588
required once during the time that the shared vehicle owner owns the shared
1589
vehicle.
1590
(C) The commission shall verify that a shared vehicle is an individual-owned
1591
shared vehicle by verifying that the applicable Utah taxes imposed under this
1592
chapter were paid on the purchase of the shared vehicle.
1593
(D) The exception under Subsection (2)(e)(i)(A) applies to a certified
1594
individual-owned shared vehicle shared through a car-sharing program even if
- 47 - S.B. 337 02-26 10:50
1595
non-certified shared vehicles are also available to be shared through the same
1596
car-sharing program.
1597
(ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
1598
(iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
1599
representation that the shared vehicle is an individual-owned shared vehicle
1600
certified with the commission as described in Subsection (2)(e)(i).
1601
(B) If a car-sharing program relies in good faith on a shared vehicle owner's
1602
representation that the shared vehicle is an individual-owned shared vehicle
1603
certified with the commission as described in Subsection (2)(e)(i), the
1604
car-sharing program is not liable for any tax, penalty, fee, or other sanction
1605
imposed on the shared vehicle owner.
1606
(iv) If all shared vehicles shared through a car-sharing program are certified as
1607
described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
1608
no obligation to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax
1609
period.
1610
(v) A car-sharing program is not required to list or otherwise identify an
1611
individual-owned shared vehicle on a return or an attachment to a return.
1612
(vi) A car-sharing program shall:
1613
(A) retain tax information for each car-sharing program transaction; and
1614
(B) provide the information described in Subsection (2)(e)(vi)(A) to the
1615
commission at the commission's request.
1616
(f)(i) For a bundled transaction that is attributable to food and food ingredients and
1617
tangible personal property other than food and food ingredients, a state tax and a
1618
local tax is imposed on the entire bundled transaction equal to the sum of:
1619
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
1620
(I) the tax rate described in Subsection (2)(a)(i)(A); and
1621
(II)(Aa) the tax rate the state imposes in accordance with Part 18,
1622
Additional State Sales and Use Tax Act, if the location of the transaction
1623
as determined under Sections 59-12-211 through 59-12-215 is in a
1624
county in which the state imposes the tax under Part 18, Additional State
1625
Sales and Use Tax Act; and
1626
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental
1627
State Sales and Use Tax Act, if the location of the transaction as
1628
determined under Sections 59-12-211 through 59-12-215 is in a city,
- 48 - 02-26 10:50 S.B. 337
1629
town, or the unincorporated area of a county in which the state imposes
1630
the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1631
(B) a local tax imposed on the entire bundled transaction at the sum of the tax
1632
rates described in Subsection (2)(a)(ii).
1633
(ii) If an optional computer software maintenance contract is a bundled transaction
1634
that consists of taxable and nontaxable products that are not separately itemized
1635
on an invoice or similar billing document, the purchase of the optional computer
1636
software maintenance contract is 40% taxable under this chapter and 60%
1637
nontaxable under this chapter.
1638
(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
1639
transaction described in Subsection (2)(f)(i) or (ii):
1640
(A) if the sales price of the bundled transaction is attributable to tangible personal
1641
property, a product, or a service that is subject to taxation under this chapter
1642
and tangible personal property, a product, or service that is not subject to
1643
taxation under this chapter, the entire bundled transaction is subject to taxation
1644
under this chapter unless:
1645
(I) the seller is able to identify by reasonable and verifiable standards the
1646
tangible personal property, product, or service that is not subject to taxation
1647
under this chapter from the books and records the seller keeps in the seller's
1648
regular course of business; or
1649
(II) state or federal law provides otherwise; or
1650
(B) if the sales price of a bundled transaction is attributable to two or more items
1651
of tangible personal property, products, or services that are subject to taxation
1652
under this chapter at different rates, the entire bundled transaction is subject to
1653
taxation under this chapter at the higher tax rate unless:
1654
(I) the seller is able to identify by reasonable and verifiable standards the
1655
tangible personal property, product, or service that is subject to taxation
1656
under this chapter at the lower tax rate from the books and records the seller
1657
keeps in the seller's regular course of business; or
1658
(II) state or federal law provides otherwise.
1659
(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
1660
seller's regular course of business includes books and records the seller keeps in
1661
the regular course of business for nontax purposes.
1662
(g)(i) Except as otherwise provided in this chapter and subject to Subsections
- 49 - S.B. 337 02-26 10:50
1663
(2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
1664
personal property, a product, or a service that is subject to taxation under this
1665
chapter, and the sale, lease, or rental of tangible personal property, other property,
1666
a product, or a service that is not subject to taxation under this chapter, the entire
1667
transaction is subject to taxation under this chapter unless the seller, at the time of
1668
the transaction:
1669
(A) separately states the portion of the transaction that is not subject to taxation
1670
under this chapter on an invoice, bill of sale, or similar document provided to
1671
the purchaser; or
1672
(B) is able to identify by reasonable and verifiable standards, from the books and
1673
records the seller keeps in the seller's regular course of business, the portion of
1674
the transaction that is not subject to taxation under this chapter.
1675
(ii) A purchaser and a seller may correct the taxability of a transaction if:
1676
(A) after the transaction occurs, the purchaser and the seller discover that the
1677
portion of the transaction that is not subject to taxation under this chapter was
1678
not separately stated on an invoice, bill of sale, or similar document provided
1679
to the purchaser because of an error or ignorance of the law; and
1680
(B) the seller is able to identify by reasonable and verifiable standards, from the
1681
books and records the seller keeps in the seller's regular course of business, the
1682
portion of the transaction that is not subject to taxation under this chapter.
1683
(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
1684
keeps in the seller's regular course of business includes books and records the
1685
seller keeps in the regular course of business for nontax purposes.
1686
(h)(i) If the sales price of a transaction is attributable to two or more items of tangible
1687
personal property, products, or services that are subject to taxation under this
1688
chapter at different rates, the entire purchase is subject to taxation under this
1689
chapter at the higher tax rate unless the seller, at the time of the transaction:
1690
(A) separately states the items subject to taxation under this chapter at each of the
1691
different rates on an invoice, bill of sale, or similar document provided to the
1692
purchaser; or
1693
(B) is able to identify by reasonable and verifiable standards the tangible personal
1694
property, product, or service that is subject to taxation under this chapter at the
1695
lower tax rate from the books and records the seller keeps in the seller's regular
1696
course of business.
- 50 - 02-26 10:50 S.B. 337
1697
(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
1698
seller's regular course of business includes books and records the seller keeps in
1699
the regular course of business for nontax purposes.
1700
(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
1701
imposed under the following shall take effect on the first day of a calendar quarter:
1702
(i) Subsection (2)(a)(i)(A);
1703
(ii) Subsection (2)(b)(i);
1704
(iii) Subsection (2)(c)(i); or
1705
(iv) Subsection (2)(f)(i)(A)(I).
1706
(j)(i) A tax rate increase takes effect on the first day of the first billing period that
1707
begins on or after the effective date of the tax rate increase if the billing period for
1708
the transaction begins before the effective date of a tax rate increase imposed
1709
under:
1710
(A) Subsection (2)(a)(i)(A);
1711
(B) Subsection (2)(b)(i);
1712
(C) Subsection (2)(c)(i); or
1713
(D) Subsection (2)(f)(i)(A)(I).
1714
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1715
statement for the billing period is rendered on or after the effective date of the
1716
repeal of the tax or the tax rate decrease imposed under:
1717
(A) Subsection (2)(a)(i)(A);
1718
(B) Subsection (2)(b)(i);
1719
(C) Subsection (2)(c)(i); or
1720
(D) Subsection (2)(f)(i)(A)(I).
1721
(k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
1722
is computed on the basis of sales and use tax rates published in the catalogue, a
1723
tax rate repeal or change in a tax rate takes effect:
1724
(A) on the first day of a calendar quarter; and
1725
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate
1726
change.
1727
(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
1728
(A) Subsection (2)(a)(i)(A);
1729
(B) Subsection (2)(b)(i);
1730
(C) Subsection (2)(c)(i); or
- 51 - S.B. 337 02-26 10:50
1731
(D) Subsection (2)(f)(i)(A)(I).
1732
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1733
the commission may by rule define the term "catalogue sale."
1734
(l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
1735
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
1736
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
1737
fuel at the location.
1738
(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1739
or other fuel is furnished through a single meter for two or more of the following
1740
uses:
1741
(A) a commercial use;
1742
(B) an industrial use; or
1743
(C) a residential use.
1744
(3)(a) The following state taxes shall be deposited into the General Fund:
1745
(i) the tax imposed by Subsection (2)(a)(i)(A);
1746
(ii) the tax imposed by Subsection (2)(b)(i);
1747
(iii) the tax imposed by Subsection (2)(c)(i); and
1748
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
1749
(b) The following local taxes shall be distributed to a county, city, or town as provided
1750
in this chapter:
1751
(i) the tax imposed by Subsection (2)(a)(ii);
1752
(ii) the tax imposed by Subsection (2)(b)(ii);
1753
(iii) the tax imposed by Subsection (2)(c)(ii); and
1754
(iv) the tax imposed by Subsection (2)(f)(i)(B).
1755
(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General Fund.
1756
(4)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1757
2003, the lesser of the following amounts shall be expended as provided in
1758
Subsections (4)(b) through (g):
1759
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1760
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1761
(B) for the fiscal year; or
1762
(ii) $17,500,000.
1763
(b)(i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1764
described in Subsection (4)(a) shall be transferred each year as designated sales
- 52 - 02-26 10:50 S.B. 337
1765
and use tax revenue to the Division of Wildlife Resources to:
1766
(A) implement the measures described in Subsections 23A-3-214(3)(a) through (d)
1767
to protect sensitive plant and animal species; or
1768
(B) award grants, up to the amount authorized by the Legislature in an
1769
appropriations act, to political subdivisions of the state to implement the
1770
measures described in Subsections 23A-3-214(3)(a) through (d) to protect
1771
sensitive plant and animal species.
1772
(ii) Money transferred to the Division of Wildlife Resources under Subsection
1773
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or
1774
any other person to list or attempt to have listed a species as threatened or
1775
endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et
1776
seq.
1777
(iii) At the end of each fiscal year:
1778
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to
1779
the Water Resources Conservation and Development Fund created in Section
1780
73-10-24;
1781
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1782
Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1783
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1784
Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1785
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1786
Subsection (4)(a) shall be deposited each year in the Agriculture Resource
1787
Development Fund created in Section 4-18-106.
1788
(d)(i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount
1789
described in Subsection (4)(a) shall be transferred each year as designated sales
1790
and use tax revenue to the Division of Water Rights to cover the costs incurred in
1791
hiring legal and technical staff for the adjudication of water rights.
1792
(ii) At the end of each fiscal year:
1793
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to
1794
the Water Resources Conservation and Development Fund created in Section
1795
73-10-24;
1796
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1797
Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1798
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
- 53 - S.B. 337 02-26 10:50
1799
Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1800
(e)(i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount
1801
described in Subsection (4)(a) shall be deposited into the Water Resources
1802
Conservation and Development Fund created in Section 73-10-24 for use by the
1803
Division of Water Resources.
1804
(ii) In addition to the uses allowed of the Water Resources Conservation and
1805
Development Fund under Section 73-10-24, the Water Resources Conservation
1806
and Development Fund may also be used to:
1807
(A) conduct hydrologic and geotechnical investigations by the Division of Water
1808
Resources in a cooperative effort with other state, federal, or local entities, for
1809
the purpose of quantifying surface and ground water resources and describing
1810
the hydrologic systems of an area in sufficient detail so as to enable local and
1811
state resource managers to plan for and accommodate growth in water use
1812
without jeopardizing the resource;
1813
(B) fund state required dam safety improvements; and
1814
(C) protect the state's interest in interstate water compact allocations, including the
1815
hiring of technical and legal staff.
1816
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in
1817
Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program
1818
Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund
1819
wastewater projects.
1820
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1821
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program
1822
Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
1823
(i) provide for the installation and repair of collection, treatment, storage, and
1824
distribution facilities for any public water system, as defined in Section 19-4-102;
1825
(ii) develop underground sources of water, including springs and wells; and
1826
(iii) develop surface water sources.
1827
(5)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1828
2006, the difference between the following amounts shall be expended as provided in
1829
this Subsection (5), if that difference is greater than $1:
1830
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for
1831
the fiscal year by a 1/16% tax rate on the transactions described in Subsection (1);
1832
and
- 54 - 02-26 10:50 S.B. 337
1833
(ii) $17,500,000.
1834
(b)(i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1835
(A) transferred each fiscal year to the Department of Natural Resources as
1836
designated sales and use tax revenue; and
1837
(B) expended by the Department of Natural Resources for watershed rehabilitation
1838
or restoration.
1839
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1840
tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources
1841
Conservation and Development Fund created in Section 73-10-24.
1842
(c)(i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1843
remaining difference described in Subsection (5)(a) shall be:
1844
(A) transferred each fiscal year to the Division of Water Resources as designated
1845
sales and use tax revenue; and
1846
(B) expended by the Division of Water Resources for cloud-seeding projects
1847
authorized by Title 73, Chapter 15, Modification of Weather.
1848
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1849
tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources
1850
Conservation and Development Fund created in Section 73-10-24.
1851
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
1852
remaining difference described in Subsection (5)(a) shall be deposited into the Water
1853
Resources Conservation and Development Fund created in Section 73-10-24 for use
1854
by the Division of Water Resources for:
1855
(i) preconstruction costs:
1856
(A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
1857
Chapter 26, Bear River Development Act; and
1858
(B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
1859
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1860
(ii) the cost of employing a civil engineer to oversee any project authorized by Title
1861
73, Chapter 26, Bear River Development Act;
1862
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
1863
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
1864
Act; and
1865
(iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
1866
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i)
- 55 - S.B. 337 02-26 10:50
1867
through (iii).
1868
(e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
1869
remaining difference described in Subsection (5)(a) shall be deposited each year into
1870
the Water Rights Restricted Account created by Section 73-2-1.6.
1871
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), each
1872
fiscal year, the commission shall deposit into the Water Infrastructure Restricted
1873
Account created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax
1874
rate on the transactions described in Subsection (1) for the fiscal year.
1875
(7)(a) Notwithstanding Subsection (3)(a) and subject to Subsections (7)(b), (c), and (d),
1876
for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into
1877
the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of
1878
the taxes listed under Subsection (3)(a) equal to 17% of the revenue collected from
1879
the following sales and use taxes:
1880
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1881
(ii) the tax imposed by Subsection (2)(b)(i);
1882
(iii) the tax imposed by Subsection (2)(c)(i); and
1883
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
1884
(b)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall
1885
annually reduce the deposit under Subsection (7)(a) into the Transportation
1886
Investment Fund of 2005 by an amount equal to .44% of the revenue collected
1887
from the following sales and use taxes:
1888
(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1889
(B) the tax imposed by Subsection (2)(b)(i);
1890
(C) the tax imposed by Subsection (2)(c)(i); and
1891
(D) the tax imposed by Subsection (2)(f)(i)(A)(I).
1892
(ii) The commission shall annually deposit the amount described in Subsection
1893
(7)(b)(i) into the Cottonwood Canyons Transportation Investment Fund created in
1894
Section 72-2-124.
1895
(c)(i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
1896
2023, the commission shall annually reduce the deposit into the Transportation
1897
Investment Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is
1898
equal to 5% of:
1899
(A) the amount of revenue generated in the current fiscal year by the portion of
1900
taxes listed under Subsection (3)(a) that equals 20.68% of the revenue
- 56 - 02-26 10:50 S.B. 337
1901
collected from taxes described in Subsections (7)(a)(i) through (iv);
1902
(B) the amount of revenue generated in the current fiscal year by registration fees
1903
designated under Section 41-1a-1201 to be deposited into the Transportation
1904
Investment Fund of 2005; and
1905
(C) revenue transferred by the Division of Finance to the Transportation
1906
Investment Fund of 2005 in accordance with Section 72-2-106 in the current
1907
fiscal year.
1908
(ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
1909
given fiscal year.
1910
(iii) The commission shall annually deposit the amount described in Subsection
1911
(7)(c)(i) into the Active Transportation Investment Fund created in Subsection
1912
72-2-124(11).
1913
(d)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall
1914
annually reduce the deposit into the Transportation Investment Fund of 2005
1915
under this Subsection (7) by an amount that is equal to 1% of the revenue
1916
collected from the following sales and use taxes:
1917
(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1918
(B) the tax imposed by Subsection (2)(b)(i);
1919
(C) the tax imposed by Subsection (2)(c)(i); and
1920
(D) the tax imposed by Subsection (2)(f)(i)(A)(I).
1921
(ii) The commission shall annually deposit the amount described in Subsection
1922
(7)(d)(i) into the Commuter Rail Subaccount created in Section 72-2-124.
1923
(8)(a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
1924
Subsection (7), and subject to [Subsections] Subsection (8)(b)[ and (d)(ii)], for a fiscal
1925
year beginning on or after July 1, 2018, the commission shall annually deposit into
1926
the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of
1927
the taxes listed under Subsection (3)(a) in an amount equal to 3.68% of the revenue
1928
collected from the following taxes:
1929
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1930
(ii) the tax imposed by Subsection (2)(b)(i);
1931
(iii) the tax imposed by Subsection (2)(c)(i); and
1932
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
1933
(b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
1934
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection
- 57 - S.B. 337 02-26 10:50
1935
(8)(a) by an amount that is equal to 35% of the amount of revenue generated in the
1936
current fiscal year by the portion of the tax imposed on motor and special fuel that is
1937
sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon.
1938
(c) The commission shall annually deposit the amount described in Subsection (8)(b)
1939
into the Transit Transportation Investment Fund created in Section 72-2-124.
1940
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1941
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies
1942
Fund created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
1943
(10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the fiscal
1944
year during which the commission receives notice under Section 63N-2-510 that
1945
construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the
1946
commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the
1947
revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact
1948
Mitigation Fund, created in Section 63N-2-512.
1949
(11)(a) The rate specified in this subsection is 0.15%.
1950
(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
1951
on or after July 1, 2019, annually transfer the amount of revenue collected from the
1952
rate described in Subsection (11)(a) on the transactions that are subject to the sales
1953
and use tax under Subsection (2)(a)(i)(A) into the Medicaid ACA Fund created in
1954
Section 26B-1-315.
1955
(12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1956
2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated
1957
credit solely for use of the Search and Rescue Financial Assistance Program created in,
1958
and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
1959
(13)(a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
1960
annually transfer $1,813,400 of the revenue deposited into the Transportation
1961
Investment Fund of 2005 under Subsections (7) and (8) to the General Fund.
1962
(b) If the total revenue deposited into the Transportation Investment Fund of 2005 under
1963
Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
1964
transfer the total revenue deposited into the Transportation Investment Fund of 2005
1965
under Subsections (7) and (8) during the fiscal year to the General Fund.
1966
(14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610, beginning
1967
the first day of the calendar quarter one year after the sales and use tax boundary for a
1968
housing and transit reinvestment zone is established, the commission, at least annually,
- 58 - 02-26 10:50 S.B. 337
1969
shall transfer an amount equal to 15% of the sales and use tax increment within an
1970
established sales and use tax boundary, as defined in Section 63N-3-602, into the Transit
1971
Transportation Investment Fund created in Section 72-2-124.
1972
(15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
1973
on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure Restricted
1974
Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
1975
(3)(a) equal to 1% of the revenue collected from the following sales and use taxes:
1976
(a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1977
(b) the tax imposed by Subsection (2)(b)(i);
1978
(c) the tax imposed by Subsection (2)(c)(i); and
1979
(d) the tax imposed by Subsection (2)(f)(i)(A)(I).
1980
(16) Notwithstanding Subsection (3)(a), beginning October 1, 2024 the commission shall
1981
transfer to the Utah Fairpark Area Investment and Restoration District, created in
1982
Section 11-70-201, the revenue from the sales and use tax imposed by Subsection
1983
(2)(a)(i)(A) at a 4.7% rate, on transactions occurring within the district sales tax area, as
1984
defined in Section 11-70-101.
1985
(17) Notwithstanding Subsection (3)(a) and except as provided in Subsections (19) and (20),
1986
the commission shall transfer to the Beehive Development Agency:
1987
(a) for the first 25 years following the adoption of a project area, 75% of the revenue
1988
from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on
1989
transactions occurring within the sales and use tax boundary, as defined in Section
1990
11-71-101, for the project area; and
1991
(b) for 15 years following the time period described in Subsection (17)(a), if approved
1992
by the Beehive Development Agency board established in Section 11-71-302, 50% of
1993
the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7%
1994
rate, on transactions occurring within the sales and use tax boundary for a project
1995
area.
1996
[(17)] (18)(a) As used in this Subsection [(17)] (18):
1997
(i) "Additional land" means point of the mountain state land described in Subsection
1998
11-59-102(6)(b) that the point of the mountain authority acquires after the point of
1999
the mountain authority provides the commission a map under Subsection [(17)(c)]
2000
(18)(c).
2001
(ii) "Point of the mountain authority" means the Point of the Mountain State Land
2002
Authority, created in Section 11-59-201.
- 59 - S.B. 337 02-26 10:50
2003
(iii) "Point of the mountain state land" means the same as that term is defined in
2004
Section 11-59-102.
2005
(b) Notwithstanding Subsection (3)(a), the commission shall distribute to the point of the
2006
mountain authority 50% of the revenue from the sales and use tax imposed by
2007
Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the
2008
mountain state land.
2009
(c) The distribution under Subsection [(17)(b)] (18)(b) shall begin the next calendar
2010
quarter that begins at least 90 days after the point of the mountain authority provides
2011
the commission a map that:
2012
(i) accurately describes the point of the mountain state land; and
2013
(ii) the point of the mountain authority certifies as accurate.
2014
(d) A distribution under Subsection [(17)(b)] (18)(b) with respect to additional land shall
2015
begin the next calendar quarter that begins at least 90 days after the point of the
2016
mountain authority provides the commission a map of point of the mountain state
2017
land that:
2018
(i) accurately describes the point of the mountain state land, including the additional
2019
land; and
2020
(ii) the point of the mountain authority certifies as accurate.
2021
(e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
2022
distributed to the point of the mountain authority under Subsection [(17)(b)] (18)(b),
2023
the point of the mountain authority shall immediately notify the commission in
2024
writing that the bonds are paid in full.
2025
(ii) The commission shall discontinue distributions of sales and use tax revenue under
2026
Subsection [(17)(b)] (18)(b) at the beginning of the calendar quarter that begins at
2027
least 90 days after the date that the commission receives the written notice under
2028
Subsection [(17)(e)(i)] (18)(c)(i).
2029
(19)(a) As used in this Subsection (19):
2030
(i) "Applicable percentage" means, for a project area established under Title 11,
2031
Chapter 71, Beehive Development Agency Act, 15% of the revenue from the sales
2032
and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring
2033
within the qualified development zone described in Subsection (19)(a)(ii)(A).
2034
(ii) "Qualified development zone" means the sales and use tax boundary of a project
2035
area established under Title 11, Chapter 71, Beehive Development Agency Act.
2036
(iii) "Qualifying construction materials" means construction materials that are:
- 60 - 02-26 10:50 S.B. 337
2037
(A) delivered to a delivery outlet within a qualified development zone; and
2038
(B) intended to be permanently attached to real property within the qualified
2039
development zone.
2040
(b) For a sale of qualifying construction materials, the commission shall distribute the
2041
product calculated in Subsection (19)(c) to the Beehive Development Agency if the
2042
seller of the construction materials:
2043
(i) establishes a delivery outlet with the commission within the qualified development
2044
zone;
2045
(ii) reports the sales of the construction materials to the delivery outlet described in
2046
Subsection (19)(b)(i); and
2047
(iii) does not report the sales of the construction materials on a simplified electronic
2048
return.
2049
(c) For the purposes of Subsection (19)(b), the product is equal to:
2050
(i) the sales price or purchase price of the qualifying construction materials; and
2051
(ii) the applicable percentage.
2052
(d) If an amount of revenue is distributed pertaining to a qualified construction material
2053
transaction pursuant to Subsection (19)(b), the distribution under Subsection (17) is
2054
satisfied for that transaction.
2055
(20)(a) As used in this Subsection (20):
2056
(i) "Qualified development zone" means the same as that term is defined in
2057
Subsection (19).
2058
(ii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M,
2059
Schedule J or a substantially similar form as designated by the commission.
2060
(b) Revenue generated by a Schedule J sale within a qualified development zone shall be
2061
distributed into the General Fund.
2062
Section 43. Section 59-12-104 is amended to read:
2063
59-12-104 (Effective 01/01/26). Exemptions.
2064
Exemptions from the taxes imposed by this chapter are as follows:
2065
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2066
under Chapter 13, Motor and Special Fuel Tax Act;
2067
(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
2068
subdivisions; however, this exemption does not apply to sales of:
2069
(a) construction materials except:
2070
(i) construction materials purchased by or on behalf of institutions of the public
- 61 - S.B. 337 02-26 10:50
2071
education system as defined in Utah Constitution, Article X, Section 2, provided
2072
the construction materials are clearly identified and segregated and installed or
2073
converted to real property which is owned by institutions of the public education
2074
system; and
2075
(ii) construction materials purchased by the state, its institutions, or its political
2076
subdivisions which are installed or converted to real property by employees of the
2077
state, its institutions, or its political subdivisions; or
2078
(b) tangible personal property in connection with the construction, operation,
2079
maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
2080
facilities providing additional project capacity, as defined in Section 11-13-103;
2081
(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
2082
(i) the proceeds of each sale do not exceed $1; and
2083
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
2084
the cost of the item described in Subsection (3)(b) as goods consumed; and
2085
(b) Subsection (3)(a) applies to:
2086
(i) food and food ingredients; or
2087
(ii) prepared food;
2088
(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
2089
(i) alcoholic beverages;
2090
(ii) food and food ingredients; or
2091
(iii) prepared food;
2092
(b) sales of tangible personal property or a product transferred electronically:
2093
(i) to a passenger;
2094
(ii) by a commercial airline carrier; and
2095
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
2096
(c) services related to Subsection (4)(a) or (b);
2097
(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
2098
in interstate or foreign commerce;
2099
(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
2100
and prerecorded video tapes by a producer, distributor, or studio to a motion picture
2101
exhibitor, distributor, or commercial television or radio broadcaster;
2102
(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
2103
cleaning or washing of tangible personal property if the cleaning or washing of the
2104
tangible personal property is not assisted cleaning or washing of tangible personal
- 62 - 02-26 10:50 S.B. 337
2105
property;
2106
(b) if a seller that sells at the same business location assisted cleaning or washing of
2107
tangible personal property and cleaning or washing of tangible personal property that
2108
is not assisted cleaning or washing of tangible personal property, the exemption
2109
described in Subsection (7)(a) applies if the seller separately accounts for the sales of
2110
the assisted cleaning or washing of the tangible personal property; and
2111
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
2112
Administrative Rulemaking Act, the commission may make rules:
2113
(i) governing the circumstances under which sales are at the same business location;
2114
and
2115
(ii) establishing the procedures and requirements for a seller to separately account for
2116
sales of assisted cleaning or washing of tangible personal property;
2117
(8) sales made to or by religious or charitable institutions in the conduct of their regular
2118
religious or charitable functions and activities, if the requirements of Section 59-12-104.1
2119
are fulfilled;
2120
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
2121
state if:
2122
(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
2123
(b) the vehicle is not registered in this state; and
2124
(c)(i) the vehicle is not used in this state; or
2125
(ii) the vehicle is used in this state:
2126
(A) if the vehicle is not used to conduct business, for a time period that does not
2127
exceed the longer of:
2128
(I) 30 days in any calendar year; or
2129
(II) the time period necessary to transport the vehicle to the borders of this
2130
state; or
2131
(B) if the vehicle is used to conduct business, for the time period necessary to
2132
transport the vehicle to the borders of this state;
2133
(10)(a) amounts paid for an item described in Subsection (10)(b) if:
2134
(i) the item is intended for human use; and
2135
(ii)(A) a prescription was issued for the item; or
2136
(B) the item was purchased by a hospital or other medical facility; and
2137
(b)(i) Subsection (10)(a) applies to:
2138
(A) a drug;
- 63 - S.B. 337 02-26 10:50
2139
(B) a syringe; or
2140
(C) a stoma supply; and
2141
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2142
the commission may by rule define the terms:
2143
(A) "syringe"; or
2144
(B) "stoma supply";
2145
(11) purchases or leases exempt under Section 19-12-201;
2146
(12)(a) sales of an item described in Subsection (12)(c) served by:
2147
(i) the following if the item described in Subsection (12)(c) is not available to the
2148
general public:
2149
(A) a church; or
2150
(B) a charitable institution; or
2151
(ii) an institution of higher education if:
2152
(A) the item described in Subsection (12)(c) is not available to the general public;
2153
or
2154
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
2155
plan offered by the institution of higher education; [or]
2156
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
2157
(i) a medical facility; or
2158
(ii) a nursing facility; and
2159
(c) Subsections (12)(a) and (b) apply to:
2160
(i) food and food ingredients;
2161
(ii) prepared food; or
2162
(iii) alcoholic beverages;
2163
(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
2164
or a product transferred electronically by a person:
2165
(i) regardless of the number of transactions involving the sale of that tangible
2166
personal property or product transferred electronically by that person; and
2167
(ii) not regularly engaged in the business of selling that type of tangible personal
2168
property or product transferred electronically;
2169
(b) this Subsection (13) does not apply if:
2170
(i) the sale is one of a series of sales of a character to indicate that the person is
2171
regularly engaged in the business of selling that type of tangible personal property
2172
or product transferred electronically;
- 64 - 02-26 10:50 S.B. 337
2173
(ii) the person holds that person out as regularly engaged in the business of selling
2174
that type of tangible personal property or product transferred electronically;
2175
(iii) the person sells an item of tangible personal property or product transferred
2176
electronically that the person purchased as a sale that is exempt under Subsection
2177
(25); or
2178
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
2179
of this state in which case the tax is based upon:
2180
(A) the bill of sale, lease agreement, or other written evidence of value of the
2181
vehicle or vessel being sold; or
2182
(B) in the absence of a bill of sale, lease agreement, or other written evidence of
2183
value, the fair market value of the vehicle or vessel being sold at the time of the
2184
sale as determined by the commission; and
2185
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2186
commission shall make rules establishing the circumstances under which:
2187
(i) a person is regularly engaged in the business of selling a type of tangible personal
2188
property or product transferred electronically;
2189
(ii) a sale of tangible personal property or a product transferred electronically is one
2190
of a series of sales of a character to indicate that a person is regularly engaged in
2191
the business of selling that type of tangible personal property or product
2192
transferred electronically; or
2193
(iii) a person holds that person out as regularly engaged in the business of selling a
2194
type of tangible personal property or product transferred electronically;
2195
(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2196
operating repair or replacement parts, or materials, except for office equipment or office
2197
supplies, by:
2198
(a) a manufacturing facility that:
2199
(i) is located in the state; and
2200
(ii) uses or consumes the machinery, equipment, normal operating repair or
2201
replacement parts, or materials:
2202
(A) in the manufacturing process to manufacture an item sold as tangible personal
2203
property, as the commission may define that phrase in accordance with Title
2204
63G, Chapter 3, Utah Administrative Rulemaking Act; or
2205
(B) for a scrap recycler, to process an item sold as tangible personal property, as
2206
the commission may define that phrase in accordance with Title 63G, Chapter
- 65 - S.B. 337 02-26 10:50
2207
3, Utah Administrative Rulemaking Act;
2208
(b) an establishment, as the commission defines that term in accordance with Title 63G,
2209
Chapter 3, Utah Administrative Rulemaking Act, that:
2210
(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
2211
Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
2212
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
2213
Fuels) Mining, of the 2002 North American Industry Classification System of the
2214
federal Executive Office of the President, Office of Management and Budget;
2215
(ii) is located in the state; and
2216
(iii) uses or consumes the machinery, equipment, normal operating repair or
2217
replacement parts, or materials in:
2218
(A) the production process to produce an item sold as tangible personal property,
2219
as the commission may define that phrase in accordance with Title 63G,
2220
Chapter 3, Utah Administrative Rulemaking Act;
2221
(B) research and development, as the commission may define that phrase in
2222
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2223
(C) transporting, storing, or managing tailings, overburden, or similar waste
2224
materials produced from mining;
2225
(D) developing or maintaining a road, tunnel, excavation, or similar feature used
2226
in mining; or
2227
(E) preventing, controlling, or reducing dust or other pollutants from mining; or
2228
(c) an establishment, as the commission defines that term in accordance with Title 63G,
2229
Chapter 3, Utah Administrative Rulemaking Act, that:
2230
(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
2231
American Industry Classification System of the federal Executive Office of the
2232
President, Office of Management and Budget;
2233
(ii) is located in the state; and
2234
(iii) uses or consumes the machinery, equipment, normal operating repair or
2235
replacement parts, or materials in the operation of the web search portal;
2236
(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
2237
(i) tooling;
2238
(ii) special tooling;
2239
(iii) support equipment;
2240
(iv) special test equipment; or
- 66 - 02-26 10:50 S.B. 337
2241
(v) parts used in the repairs or renovations of tooling or equipment described in
2242
Subsections (15)(a)(i) through (iv); and
2243
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
2244
(i) the tooling, equipment, or parts are used or consumed exclusively in the
2245
performance of any aerospace or electronics industry contract with the United
2246
States government or any subcontract under that contract; and
2247
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
2248
title to the tooling, equipment, or parts is vested in the United States government
2249
as evidenced by:
2250
(A) a government identification tag placed on the tooling, equipment, or parts; or
2251
(B) listing on a government-approved property record if placing a government
2252
identification tag on the tooling, equipment, or parts is impractical;
2253
(16) sales of newspapers or newspaper subscriptions;
2254
(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
2255
transferred electronically traded in as full or part payment of the purchase price,
2256
except that for purposes of calculating sales or use tax upon vehicles not sold by a
2257
vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
2258
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
2259
vehicle being traded in; or
2260
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
2261
fair market value of the vehicle being sold and the vehicle being traded in, as
2262
determined by the commission; and
2263
(b) Subsection (17)(a) does not apply to the following items of tangible personal
2264
property or products transferred electronically traded in as full or part payment of the
2265
purchase price:
2266
(i) money;
2267
(ii) electricity;
2268
(iii) water;
2269
(iv) gas; or
2270
(v) steam;
2271
(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
2272
property or a product transferred electronically used or consumed primarily and
2273
directly in farming operations, regardless of whether the tangible personal
2274
property or product transferred electronically:
- 67 - S.B. 337 02-26 10:50
2275
(A) becomes part of real estate; or
2276
(B) is installed by a farmer, contractor, or subcontractor; or
2277
(ii) sales of parts used in the repairs or renovations of tangible personal property or a
2278
product transferred electronically if the tangible personal property or product
2279
transferred electronically is exempt under Subsection (18)(a)(i); and
2280
(b) amounts paid or charged for the following are subject to the taxes imposed by this
2281
chapter:
2282
(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
2283
supplies if used in a manner that is incidental to farming; and
2284
(B) tangible personal property that is considered to be used in a manner that is
2285
incidental to farming includes:
2286
(I) hand tools; or
2287
(II) maintenance and janitorial equipment and supplies;
2288
(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
2289
transferred electronically if the tangible personal property or product
2290
transferred electronically is used in an activity other than farming; and
2291
(B) tangible personal property or a product transferred electronically that is
2292
considered to be used in an activity other than farming includes:
2293
(I) office equipment and supplies; or
2294
(II) equipment and supplies used in:
2295
(Aa) the sale or distribution of farm products;
2296
(Bb) research; or
2297
(Cc) transportation; or
2298
(iii) a vehicle required to be registered by the laws of this state during the period
2299
ending two years after the date of the vehicle's purchase;
2300
(19) sales of hay;
2301
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
2302
farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
2303
garden, farm, or other agricultural produce is sold by:
2304
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
2305
agricultural produce;
2306
(b) an employee of the producer described in Subsection (20)(a); or
2307
(c) a member of the immediate family of the producer described in Subsection (20)(a);
2308
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
- 68 - 02-26 10:50 S.B. 337
2309
the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
2310
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
2311
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
2312
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
2313
manufacturer, processor, wholesaler, or retailer;
2314
(23) a product stored in the state for resale;
2315
(24)(a) purchases of a product if:
2316
(i) the product is:
2317
(A) purchased outside of this state;
2318
(B) brought into this state:
2319
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
2320
(II) by a nonresident person who is not living or working in this state at the
2321
time of the purchase;
2322
(C) used for the personal use or enjoyment of the nonresident person described in
2323
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
2324
and
2325
(D) not used in conducting business in this state; and
2326
(ii) for:
2327
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
2328
of the product for a purpose for which the product is designed occurs outside of
2329
this state;
2330
(B) a boat, the boat is registered outside of this state; or
2331
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2332
registered outside of this state;
2333
(b) the exemption provided for in Subsection (24)(a) does not apply to:
2334
(i) a lease or rental of a product; or
2335
(ii) a sale of a vehicle exempt under Subsection (33); and
2336
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2337
purposes of Subsection (24)(a), the commission may by rule define what constitutes
2338
the following:
2339
(i) conducting business in this state if that phrase has the same meaning in this
2340
Subsection (24) as in Subsection (63);
2341
(ii) the first use of a product if that phrase has the same meaning in this Subsection
2342
(24) as in Subsection (63); or
- 69 - S.B. 337 02-26 10:50
2343
(iii) a purpose for which a product is designed if that phrase has the same meaning in
2344
this Subsection (24) as in Subsection (63);
2345
(25) a product purchased for resale in the regular course of business, either in its original
2346
form or as an ingredient or component part of a manufactured or compounded product;
2347
(26) a product upon which a sales or use tax was paid to some other state, or one of its
2348
subdivisions, except that the state shall be paid any difference between the tax paid and
2349
the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
2350
is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
2351
Sales and Use Tax Act;
2352
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
2353
for use in compounding a service taxable under the subsections;
2354
(28) purchases made in accordance with the special supplemental nutrition program for
2355
women, infants, and children established in 42 U.S.C. Sec. 1786;
2356
(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
2357
parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
2358
the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
2359
President, Office of Management and Budget;
2360
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2361
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
2362
motor is:
2363
(a) not registered in this state; and
2364
(b)(i) not used in this state; or
2365
(ii) used in this state:
2366
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
2367
a time period that does not exceed the longer of:
2368
(I) 30 days in any calendar year; or
2369
(II) the time period necessary to transport the boat, boat trailer, or outboard
2370
motor to the borders of this state; or
2371
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
2372
time period necessary to transport the boat, boat trailer, or outboard motor to
2373
the borders of this state;
2374
(31) sales of aircraft manufactured in Utah;
2375
(32) amounts paid for the purchase of telecommunications service for purposes of
2376
providing telecommunications service;
- 70 - 02-26 10:50 S.B. 337
2377
(33) sales, leases, or uses of the following:
2378
(a) a vehicle by an authorized carrier; or
2379
(b) tangible personal property that is installed on a vehicle:
2380
(i) sold or leased to or used by an authorized carrier; and
2381
(ii) before the vehicle is placed in service for the first time;
2382
(34)(a) 45% of the sales price of any new manufactured home; and
2383
(b) 100% of the sales price of any used manufactured home;
2384
(35) sales relating to schools and fundraising sales;
2385
(36) sales or rentals of durable medical equipment if:
2386
(a) a person presents a prescription for the durable medical equipment; and
2387
(b) the durable medical equipment is used for home use only;
2388
(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
2389
Section 72-11-102; and
2390
(b) the commission shall by rule determine the method for calculating sales exempt
2391
under Subsection (37)(a) that are not separately metered and accounted for in utility
2392
billings;
2393
(38) sales to a ski resort of:
2394
(a) snowmaking equipment;
2395
(b) ski slope grooming equipment;
2396
(c) passenger ropeways as defined in Section 72-11-102; or
2397
(d) parts used in the repairs or renovations of equipment or passenger ropeways
2398
described in Subsections (38)(a) through (c);
2399
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
2400
oil, or other fuels for industrial use;
2401
(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2402
amusement, entertainment, or recreation an unassisted amusement device as defined
2403
in Section 59-12-102;
2404
(b) if a seller that sells or rents at the same business location the right to use or operate
2405
for amusement, entertainment, or recreation one or more unassisted amusement
2406
devices and one or more assisted amusement devices, the exemption described in
2407
Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
2408
the right to use or operate for amusement, entertainment, or recreation for the assisted
2409
amusement devices; and
2410
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
- 71 - S.B. 337 02-26 10:50
2411
Administrative Rulemaking Act, the commission may make rules:
2412
(i) governing the circumstances under which sales are at the same business location;
2413
and
2414
(ii) establishing the procedures and requirements for a seller to separately account for
2415
the sales or rentals of the right to use or operate for amusement, entertainment, or
2416
recreation for assisted amusement devices;
2417
(41)(a) sales of photocopies by:
2418
(i) a governmental entity; or
2419
(ii) an entity within the state system of public education, including:
2420
(A) a school; or
2421
(B) the State Board of Education; or
2422
(b) sales of publications by a governmental entity;
2423
(42) amounts paid for admission to an athletic event at an institution of higher education
2424
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
2425
U.S.C. Sec. 1681 et seq.;
2426
(43)(a) sales made to or by:
2427
(i) an area agency on aging; or
2428
(ii) a senior citizen center owned by a county, city, or town; or
2429
(b) sales made by a senior citizen center that contracts with an area agency on aging;
2430
(44) sales or leases of semiconductor fabricating, processing, research, or development
2431
materials regardless of whether the semiconductor fabricating, processing, research, or
2432
development materials:
2433
(a) actually come into contact with a semiconductor; or
2434
(b) ultimately become incorporated into real property;
2435
(45) an amount paid by or charged to a purchaser for accommodations and services
2436
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
2437
Section 59-12-104.2;
2438
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
2439
accordance with Section 41-3-306 for the event period specified on the temporary sports
2440
event registration certificate;
2441
(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2442
adopted by the Public Service Commission only for purchase of electricity produced
2443
from a new alternative energy source built after January 1, 2016, as designated in the
2444
tariff by the Public Service Commission; and
- 72 - 02-26 10:50 S.B. 337
2445
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2446
only to the portion of the tariff rate a customer pays under the tariff described in
2447
Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
2448
(47)(a) that the customer would have paid absent the tariff;
2449
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
2450
the mobility enhancing equipment;
2451
(49) sales of water in a:
2452
(a) pipe;
2453
(b) conduit;
2454
(c) ditch; or
2455
(d) reservoir;
2456
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
2457
foreign nation;
2458
(51)(a) sales of an item described in Subsection (51)(b) if the item:
2459
(i) does not constitute legal tender of a state, the United States, or a foreign nation;
2460
and
2461
(ii) has a gold, silver, or platinum content of 50% or more; and
2462
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
2463
(i) ingot;
2464
(ii) bar;
2465
(iii) medallion; or
2466
(iv) decorative coin;
2467
(52) amounts paid on a sale-leaseback transaction;
2468
(53) sales of a prosthetic device:
2469
(a) for use on or in a human; and
2470
(b)(i) for which a prescription is required; or
2471
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
2472
(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2473
machinery or equipment by an establishment described in Subsection (54)(c) if the
2474
machinery or equipment is primarily used in the production or postproduction of the
2475
following media for commercial distribution:
2476
(i) a motion picture;
2477
(ii) a television program;
2478
(iii) a movie made for television;
- 73 - S.B. 337 02-26 10:50
2479
(iv) a music video;
2480
(v) a commercial;
2481
(vi) a documentary; or
2482
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2483
commission by administrative rule made in accordance with Subsection (54)(d); [
2484
or]
2485
(b) purchases, leases, or rentals of machinery or equipment by an establishment
2486
described in Subsection (54)(c) that is used for the production or postproduction of
2487
the following are subject to the taxes imposed by this chapter:
2488
(i) a live musical performance;
2489
(ii) a live news program; or
2490
(iii) a live sporting event;
2491
(c) the following establishments listed in the 1997 North American Industry
2492
Classification System of the federal Executive Office of the President, Office of
2493
Management and Budget, apply to Subsections (54)(a) and (b):
2494
(i) NAICS Code 512110; or
2495
(ii) NAICS Code 51219; and
2496
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2497
commission may by rule:
2498
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2499
or
2500
(ii) define:
2501
(A) "commercial distribution";
2502
(B) "live musical performance";
2503
(C) "live news program"; or
2504
(D) "live sporting event";
2505
(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2506
or before June 30, 2027, of tangible personal property that:
2507
(i) is leased or purchased for or by a facility that:
2508
(A) is an alternative energy electricity production facility;
2509
(B) is located in the state; and
2510
(C)(I) becomes operational on or after July 1, 2004; or
2511
(II) has its generation capacity increased by one or more megawatts on or after
2512
July 1, 2004, as a result of the use of the tangible personal property;
- 74 - 02-26 10:50 S.B. 337
2513
(ii) has an economic life of five or more years; and
2514
(iii) is used to make the facility or the increase in capacity of the facility described in
2515
Subsection (55)(a)(i) operational up to the point of interconnection with an
2516
existing transmission grid including:
2517
(A) a wind turbine;
2518
(B) generating equipment;
2519
(C) a control and monitoring system;
2520
(D) a power line;
2521
(E) substation equipment;
2522
(F) lighting;
2523
(G) fencing;
2524
(H) pipes; or
2525
(I) other equipment used for locating a power line or pole; and
2526
(b) this Subsection (55) does not apply to:
2527
(i) tangible personal property used in construction of:
2528
(A) a new alternative energy electricity production facility; or
2529
(B) the increase in the capacity of an alternative energy electricity production
2530
facility;
2531
(ii) contracted services required for construction and routine maintenance activities;
2532
and
2533
(iii) unless the tangible personal property is used or acquired for an increase in
2534
capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
2535
property used or acquired after:
2536
(A) the alternative energy electricity production facility described in Subsection
2537
(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2538
(B) the increased capacity described in Subsection (55)(a)(i) is operational as
2539
described in Subsection (55)(a)(iii);
2540
(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2541
or before June 30, 2027, of tangible personal property that:
2542
(i) is leased or purchased for or by a facility that:
2543
(A) is a waste energy production facility;
2544
(B) is located in the state; and
2545
(C)(I) becomes operational on or after July 1, 2004; or
2546
(II) has its generation capacity increased by one or more megawatts on or after
- 75 - S.B. 337 02-26 10:50
2547
July 1, 2004, as a result of the use of the tangible personal property;
2548
(ii) has an economic life of five or more years; and
2549
(iii) is used to make the facility or the increase in capacity of the facility described in
2550
Subsection (56)(a)(i) operational up to the point of interconnection with an
2551
existing transmission grid including:
2552
(A) generating equipment;
2553
(B) a control and monitoring system;
2554
(C) a power line;
2555
(D) substation equipment;
2556
(E) lighting;
2557
(F) fencing;
2558
(G) pipes; or
2559
(H) other equipment used for locating a power line or pole; and
2560
(b) this Subsection (56) does not apply to:
2561
(i) tangible personal property used in construction of:
2562
(A) a new waste energy facility; or
2563
(B) the increase in the capacity of a waste energy facility;
2564
(ii) contracted services required for construction and routine maintenance activities;
2565
and
2566
(iii) unless the tangible personal property is used or acquired for an increase in
2567
capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
2568
or acquired after:
2569
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2570
described in Subsection (56)(a)(iii); or
2571
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
2572
described in Subsection (56)(a)(iii);
2573
(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
2574
before June 30, 2027, of tangible personal property that:
2575
(i) is leased or purchased for or by a facility that:
2576
(A) is located in the state;
2577
(B) produces fuel from alternative energy, including:
2578
(I) methanol; or
2579
(II) ethanol; and
2580
(C)(I) becomes operational on or after July 1, 2004; or
- 76 - 02-26 10:50 S.B. 337
2581
(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
2582
2004, as a result of the installation of the tangible personal property;
2583
(ii) has an economic life of five or more years; and
2584
(iii) is installed on the facility described in Subsection (57)(a)(i);
2585
(b) this Subsection (57) does not apply to:
2586
(i) tangible personal property used in construction of:
2587
(A) a new facility described in Subsection (57)(a)(i); or
2588
(B) the increase in capacity of the facility described in Subsection (57)(a)(i); [or]
2589
(ii) contracted services required for construction and routine maintenance activities;
2590
and
2591
(iii) unless the tangible personal property is used or acquired for an increase in
2592
capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2593
or acquired after:
2594
(A) the facility described in Subsection (57)(a)(i) is operational; or
2595
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
2596
(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2597
transferred electronically to a person within this state if that tangible personal
2598
property or product transferred electronically is subsequently shipped outside the
2599
state and incorporated pursuant to contract into and becomes a part of real property
2600
located outside of this state; and
2601
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2602
state or political entity to which the tangible personal property is shipped imposes a
2603
sales, use, gross receipts, or other similar transaction excise tax on the transaction
2604
against which the other state or political entity allows a credit for sales and use taxes
2605
imposed by this chapter;
2606
(59) purchases:
2607
(a) of one or more of the following items in printed or electronic format:
2608
(i) a list containing information that includes one or more:
2609
(A) names; or
2610
(B) addresses; or
2611
(ii) a database containing information that includes one or more:
2612
(A) names; or
2613
(B) addresses; and
2614
(b) used to send direct mail;
- 77 - S.B. 337 02-26 10:50
2615
(60) redemptions or repurchases of a product by a person if that product was:
2616
(a) delivered to a pawnbroker as part of a pawn transaction; and
2617
(b) redeemed or repurchased within the time period established in a written agreement
2618
between the person and the pawnbroker for redeeming or repurchasing the product;
2619
(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2620
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2621
and
2622
(ii) has a useful economic life of one or more years; and
2623
(b) the following apply to Subsection (61)(a):
2624
(i) telecommunications enabling or facilitating equipment, machinery, or software;
2625
(ii) telecommunications equipment, machinery, or software required for 911 service;
2626
(iii) telecommunications maintenance or repair equipment, machinery, or software;
2627
(iv) telecommunications switching or routing equipment, machinery, or software; or
2628
(v) telecommunications transmission equipment, machinery, or software;
2629
(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2630
personal property or a product transferred electronically that are used in the research
2631
and development of alternative energy technology; and
2632
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2633
commission may, for purposes of Subsection (62)(a), make rules defining what
2634
constitutes purchases of tangible personal property or a product transferred
2635
electronically that are used in the research and development of alternative energy
2636
technology;
2637
(63)(a) purchases of tangible personal property or a product transferred electronically if:
2638
(i) the tangible personal property or product transferred electronically is:
2639
(A) purchased outside of this state;
2640
(B) brought into this state at any time after the purchase described in Subsection
2641
(63)(a)(i)(A); and
2642
(C) used in conducting business in this state; and
2643
(ii) for:
2644
(A) tangible personal property or a product transferred electronically other than
2645
the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2646
use of the property for a purpose for which the property is designed occurs
2647
outside of this state; or
2648
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
- 78 - 02-26 10:50 S.B. 337
2649
registered outside of this state and not required to be registered in this state
2650
under Section 41-1a-202 or 73-18-9 based on residency;
2651
(b) the exemption provided for in Subsection (63)(a) does not apply to:
2652
(i) a lease or rental of tangible personal property or a product transferred
2653
electronically; or
2654
(ii) a sale of a vehicle exempt under Subsection (33); and
2655
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2656
purposes of Subsection (63)(a), the commission may by rule define what constitutes
2657
the following:
2658
(i) conducting business in this state if that phrase has the same meaning in this
2659
Subsection (63) as in Subsection (24);
2660
(ii) the first use of tangible personal property or a product transferred electronically if
2661
that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2662
(iii) a purpose for which tangible personal property or a product transferred
2663
electronically is designed if that phrase has the same meaning in this Subsection
2664
(63) as in Subsection (24);
2665
(64) sales of disposable home medical equipment or supplies if:
2666
(a) a person presents a prescription for the disposable home medical equipment or
2667
supplies;
2668
(b) the disposable home medical equipment or supplies are used exclusively by the
2669
person to whom the prescription described in Subsection (64)(a) is issued; and
2670
(c) the disposable home medical equipment and supplies are listed as eligible for
2671
payment under:
2672
(i) Title XVIII, federal Social Security Act; or
2673
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2674
(65) sales:
2675
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2676
Act; or
2677
(b) of tangible personal property to a subcontractor of a public transit district, if the
2678
tangible personal property is:
2679
(i) clearly identified; and
2680
(ii) installed or converted to real property owned by the public transit district;
2681
(66) sales of construction materials:
2682
(a) purchased on or after July 1, 2010;
- 79 - S.B. 337 02-26 10:50
2683
(b) purchased by, on behalf of, or for the benefit of an international airport:
2684
(i) located within a county of the first class; and
2685
(ii) that has a United States customs office on its premises; and
2686
(c) if the construction materials are:
2687
(i) clearly identified;
2688
(ii) segregated; and
2689
(iii) installed or converted to real property:
2690
(A) owned or operated by the international airport described in Subsection (66)(b);
2691
and
2692
(B) located at the international airport described in Subsection (66)(b);
2693
(67) sales of construction materials:
2694
(a) purchased on or after July 1, 2008;
2695
(b) purchased by, on behalf of, or for the benefit of a new airport:
2696
(i) located within a county of the second class; and
2697
(ii) that is owned or operated by a city in which an airline as defined in Section
2698
59-2-102 is headquartered; and
2699
(c) if the construction materials are:
2700
(i) clearly identified;
2701
(ii) segregated; and
2702
(iii) installed or converted to real property:
2703
(A) owned or operated by the new airport described in Subsection (67)(b);
2704
(B) located at the new airport described in Subsection (67)(b); and
2705
(C) as part of the construction of the new airport described in Subsection (67)(b);
2706
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2707
carrier that is a railroad for use in a locomotive engine;
2708
(69) purchases and sales described in Section 63H-4-111;
2709
(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2710
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2711
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2712
aircraft's registration lists a state or country other than this state as the location of
2713
registry of the fixed wing turbine powered aircraft; or
2714
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2715
provider in connection with the maintenance, repair, overhaul, or refurbishment in
2716
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
- 80 - 02-26 10:50 S.B. 337
2717
aircraft's registration lists a state or country other than this state as the location of
2718
registry of the fixed wing turbine powered aircraft;
2719
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2720
(a) to a person admitted to an institution of higher education; and
2721
(b) by a seller, other than a bookstore owned by an institution of higher education, if
2722
51% or more of that seller's sales revenue for the previous calendar quarter are sales
2723
of a textbook for a higher education course;
2724
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2725
on a purchaser from a business for which the municipality provides an enhanced level of
2726
municipal services;
2727
(73) amounts paid or charged for construction materials used in the construction of a new or
2728
expanding life science research and development facility in the state, if the construction
2729
materials are:
2730
(a) clearly identified;
2731
(b) segregated; and
2732
(c) installed or converted to real property;
2733
(74) amounts paid or charged for:
2734
(a) a purchase or lease of machinery and equipment that:
2735
(i) are used in performing qualified research:
2736
(A) as defined in Section 41(d), Internal Revenue Code; and
2737
(B) in the state; and
2738
(ii) have an economic life of three or more years; and
2739
(b) normal operating repair or replacement parts:
2740
(i) for the machinery and equipment described in Subsection (74)(a); and
2741
(ii) that have an economic life of three or more years;
2742
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2743
(a) for a sale:
2744
(i) the ownership of the seller and the ownership of the purchaser are identical; and
2745
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2746
tangible personal property prior to making the sale; or
2747
(b) for a lease:
2748
(i) the ownership of the lessor and the ownership of the lessee are identical; and
2749
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2750
tangible personal property prior to making the lease;
- 81 - S.B. 337 02-26 10:50
2751
(76)(a) purchases of machinery or equipment if:
2752
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2753
Gambling, and Recreation Industries, of the 2012 North American Industry
2754
Classification System of the federal Executive Office of the President, Office of
2755
Management and Budget;
2756
(ii) the machinery or equipment:
2757
(A) has an economic life of three or more years; and
2758
(B) is used by one or more persons who pay admission or user fees described in
2759
Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2760
and
2761
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2762
(A) amounts paid or charged as admission or user fees described in Subsection
2763
59-12-103(1)(f); and
2764
(B) subject to taxation under this chapter; and
2765
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2766
commission may make rules for verifying that 51% of a purchaser's sales revenue for
2767
the previous calendar quarter is:
2768
(i) amounts paid or charged as admission or user fees described in Subsection
2769
59-12-103(1)(f); and
2770
(ii) subject to taxation under this chapter;
2771
(77) purchases of a short-term lodging consumable by a business that provides
2772
accommodations and services described in Subsection 59-12-103(1)(i);
2773
(78) amounts paid or charged to access a database:
2774
(a) if the primary purpose for accessing the database is to view or retrieve information
2775
from the database; and
2776
(b) not including amounts paid or charged for a:
2777
(i) digital audio work;
2778
(ii) digital audio-visual work; or
2779
(iii) digital book;
2780
(79) amounts paid or charged for a purchase or lease made by an electronic financial
2781
payment service, of:
2782
(a) machinery and equipment that:
2783
(i) are used in the operation of the electronic financial payment service; and
2784
(ii) have an economic life of three or more years; and
- 82 - 02-26 10:50 S.B. 337
2785
(b) normal operating repair or replacement parts that:
2786
(i) are used in the operation of the electronic financial payment service; and
2787
(ii) have an economic life of three or more years;
2788
(80) sales of a fuel cell as defined in Section 54-15-102;
2789
(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2790
product transferred electronically if the tangible personal property or product transferred
2791
electronically:
2792
(a) is stored, used, or consumed in the state; and
2793
(b) is temporarily brought into the state from another state:
2794
(i) during a disaster period as defined in Section 53-2a-1202;
2795
(ii) by an out-of-state business as defined in Section 53-2a-1202;
2796
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2797
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2798
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2799
Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2800
Recreation Program;
2801
(83) amounts paid or charged for a purchase or lease of molten magnesium;
2802
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2803
occupant of a qualifying data center of machinery, equipment, or normal operating
2804
repair or replacement parts, if the machinery, equipment, or normal operating repair or
2805
replacement parts:
2806
(a) are used in:
2807
(i) the operation of the qualifying data center; or
2808
(ii) the occupant's operations in the qualifying data center; and
2809
(b) have an economic life of one or more years;
2810
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2811
that includes cleaning or washing of the interior of the vehicle;
2812
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2813
operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2814
supplies used or consumed:
2815
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2816
in Section 79-6-701 located in the state;
2817
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2818
chemicals, reagents, solutions, or supplies are used or consumed in:
- 83 - S.B. 337 02-26 10:50
2819
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2820
added to gasoline or diesel fuel;
2821
(ii) research and development;
2822
(iii) transporting, storing, or managing raw materials, work in process, finished
2823
products, and waste materials produced from refining gasoline or diesel fuel, or
2824
adding blendstock to gasoline or diesel fuel;
2825
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2826
refining; or
2827
(v) preventing, controlling, or reducing pollutants from refining; and
2828
(c) if the person holds a valid refiner tax exemption certification as defined in Section
2829
79-6-701;
2830
(87) amounts paid to or charged by a proprietor for accommodations and services, as
2831
defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2832
tax imposed under Section 63H-1-205;
2833
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2834
operating repair or replacement parts, or materials, except for office equipment or office
2835
supplies, by an establishment, as the commission defines that term in accordance with
2836
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2837
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2838
American Industry Classification System of the federal Executive Office of the
2839
President, Office of Management and Budget;
2840
(b) is located in this state; and
2841
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2842
materials in the operation of the establishment;
2843
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2844
(90) sales of a note, leaf, foil, or film, if the item:
2845
(a) is used as currency;
2846
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
2847
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2848
transparent polymer holder, coating, or encasement;
2849
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2850
surfing facility, if a trained instructor:
2851
(a) is present with the participant, in person or by video, for the duration of the activity;
2852
and
- 84 - 02-26 10:50 S.B. 337
2853
(b) actively instructs the participant, including providing observation or feedback;
2854
(92) amounts paid or charged in connection with the construction, operation, maintenance,
2855
repair, or replacement of facilities owned by or constructed for:
2856
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2857
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2858
(93) amounts paid by the service provider for tangible personal property, other than
2859
machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2860
that:
2861
(a) is consumed in the performance of a service that is subject to tax under Subsection
2862
59-12-103(1)(b), (f), (g), (h), (i), or (j);
2863
(b) has to be consumed for the service provider to provide the service described in
2864
Subsection (93)(a); and
2865
(c) will be consumed in the performance of the service described in Subsection (93)(a),
2866
to one or more customers, to the point that the tangible personal property disappears
2867
or cannot be used for any other purpose;
2868
(94) sales of rail rolling stock manufactured in Utah;
2869
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2870
construction materials between establishments, as the commission defines that term in
2871
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2872
(a) the establishments are related directly or indirectly through 100% common
2873
ownership or control; and
2874
(b) each establishment is described in one of the following subsectors of the 2022 North
2875
American Industry Classification System of the federal Executive Office of the
2876
President, Office of Management and Budget:
2877
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2878
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
2879
(96) sales of construction materials used for the construction of a qualified stadium, as
2880
defined in Section 11-70-101; [and]
2881
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
2882
Section 4-41-102[.] ; and
2883
(98) sales of construction materials used for the construction of a structure or facility within
2884
a project area approved by the Beehive Development Agency created in Section
2885
11-71-201, if the Beehive Development Agency board approves the construction and
2886
establishes a delivery outlet with the commission.
- 85 - S.B. 337 02-26 10:50
2887
Section 44. Section 59-12-205 is amended to read:
2888
59-12-205 (Effective 01/01/26). Ordinances to conform with statutory
2889
amendments -- Distribution of tax revenue -- Determination of population.
2890
(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
2891
59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or
2892
town's sales and use tax ordinances:
2893
(a) within 30 days of the day on which the state makes an amendment to an applicable
2894
provision of Part 1, Tax Collection; and
2895
(b) as required to conform to the amendments to Part 1, Tax Collection.
2896
(2)(a) Except as provided in Subsections (3) and (4) and subject to Subsection (5):
2897
(i) 50% of each dollar collected from the sales and use tax authorized by this part
2898
shall be distributed to each county, city, and town on the basis of the percentage
2899
that the population of the county, city, or town bears to the total population of all
2900
counties, cities, and towns in the state; and
2901
(ii)(A) except as provided in Subsections (2)(a)(ii)(B), (C), [and] (D), and (E),
2902
50% of each dollar collected from the sales and use tax authorized by this part
2903
shall be distributed to each county, city, and town on the basis of the location
2904
of the transaction as determined under Sections 59-12-211 through 59-12-215;
2905
(B) except as provided in Subsections (7) and (8), 50% of each dollar collected
2906
from the sales and use tax authorized by this part within a project area
2907
described in a project area plan adopted by the military installation
2908
development authority under Title 63H, Chapter 1, Military Installation
2909
Development Authority Act, shall be distributed to the military installation
2910
development authority created in Section 63H-1-201;
2911
(C) except as provided in Subsections (7) and (8), beginning July 1, 2024, 20% of
2912
each dollar collected from the sales and use tax authorized by this part within a
2913
project area under Title 11, Chapter 58, Utah Inland Port Authority Act, shall
2914
be distributed to the Utah Inland Port Authority, created in Section 11-58-201; [
2915
and]
2916
(D) except as provided in Subsections (7) and (8), 50% of each dollar collected
2917
from the sales and use tax authorized by this part within the lake authority
2918
boundary, as defined in Section 11-65-101, shall be distributed to the Utah
2919
Lake Authority, created in Section 11-65-201, beginning the next full calendar
2920
quarter following the creation of the Utah Lake Authority[.] ; and
- 86 - 02-26 10:50 S.B. 337
2921
(E) except as provided in Subsections (7) and (8), 50% of each dollar collected
2922
from the sales and use tax authorized by this part within a sales and use tax
2923
boundary, as defined in Section 11-71-101, shall be distributed to the Beehive
2924
Development Agency for a project area approved by the Beehive Development
2925
Agency board beginning the next full calendar quarter following the creation of
2926
the project area.
2927
(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
2928
July 1, 2022.
2929
(3)(a) As used in this Subsection (3):
2930
(i) "Eligible county, city, or town" means a county, city, or town that:
2931
(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
2932
(3)(b) equal to the amount described in Subsection (3)(b)(ii); and
2933
(B) does not impose a sales and use tax under Section 59-12-2103 on or before
2934
July 1, 2016.
2935
(ii) "Minimum tax revenue distribution" means the total amount of tax revenue
2936
distributions an eligible county, city, or town received from a tax imposed in
2937
accordance with this part for fiscal year 2004-05.
2938
(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
2939
imposed in accordance with this part equal to the greater of:
2940
(i) the payment required by Subsection (2); or
2941
(ii) the minimum tax revenue distribution.
2942
(4)(a) For purposes of this Subsection (4):
2943
(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to
2944
2.55% of the participating local government's tax revenue distribution amount
2945
under Subsection (2)(a)(i) for the previous fiscal year.
2946
(ii) "Participating local government" means a county or municipality, as defined in
2947
Section 10-1-104, that is not an eligible municipality certified in accordance with
2948
Section 35A-16-404.
2949
(b) For revenue collected from the tax authorized by this part that is distributed on or
2950
after January 1, 2019, the commission, before making a tax revenue distribution
2951
under Subsection (2)(a)(i) to a participating local government, shall:
2952
(i) adjust a participating local government's tax revenue distribution under Subsection
2953
(2)(a)(i) by:
2954
(A) subtracting an amount equal to one-twelfth of the annual local contribution for
- 87 - S.B. 337 02-26 10:50
2955
each participating local government from the participating local government's
2956
tax revenue distribution; and
2957
(B) if applicable, reducing the amount described in Subsection (4)(b)(i)(A) by an
2958
amount equal to one-twelfth of $250 for each bed that is available at all
2959
homeless shelters located within the boundaries of the participating local
2960
government, as reported to the commission by the Office of Homeless Services
2961
in accordance with Section 35A-16-405; and
2962
(ii) deposit the resulting amount described in Subsection (4)(b)(i) into the Homeless
2963
Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
2964
(c) For a participating local government that qualifies to receive a distribution described
2965
in Subsection (3), the commission shall apply the provisions of this Subsection (4)
2966
after the commission applies the provisions of Subsection (3).
2967
(5)(a) As used in this Subsection (5):
2968
(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to
2969
the total revenue an establishment described in NAICS Code 327320, Ready-Mix
2970
Concrete Manufacturing, of the 2022 North American Industry Classification
2971
System of the federal Executive Office of the President, Office of Management
2972
and Budget, collects and remits under this part for a calendar year.
2973
(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
2974
(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
2975
(A) contains sand and gravel; and
2976
(B) is assessed by the commission in accordance with Section 59-2-201.
2977
(iv) "Ton" means a short ton of 2,000 pounds.
2978
(v) "Tonnage ratio" means the ratio of:
2979
(A) the total amount of sand and gravel, measured in tons, sold during a calendar
2980
year from all sand and gravel extraction sites located within a county, city, or
2981
town; to
2982
(B) the total amount of sand and gravel, measured in tons, sold during the same
2983
calendar year from sand and gravel extraction sites statewide.
2984
(b) For purposes of calculating the ratio described in Subsection (5)(a)(v), the
2985
commission shall:
2986
(i) use the gross sales data provided to the commission as part of the commission's
2987
property tax valuation process; and
2988
(ii) if a sand and gravel extraction site operates as a unit across municipal or county
- 88 - 02-26 10:50 S.B. 337
2989
lines, apportion the reported tonnage among the counties, cities, or towns based on
2990
the percentage of the sand and gravel extraction site located in each county, city,
2991
or town, as approximated by the commission.
2992
(c)(i) Beginning July 2023, and each July thereafter, the commission shall distribute
2993
from total collections under this part an amount equal to the annual dedicated sand
2994
and gravel sales tax revenue for the preceding calendar year to each county, city,
2995
or town in the same proportion as the county's, city's, or town's tonnage ratio for
2996
the preceding calendar year.
2997
(ii) The commission shall ensure that the revenue distributed under this Subsection
2998
(5)(c) is drawn from each jurisdiction's collections in proportion to the
2999
jurisdiction's share of total collections for the preceding 12-month period.
3000
(d) A county, city, or town shall use revenue described in Subsection (5)(c) for class B
3001
or class C roads.
3002
(6)(a) Population figures for purposes of this section shall be based on the most recent
3003
official census or census estimate of the United States Bureau of the Census.
3004
(b) If a needed population estimate is not available from the United States Bureau of the
3005
Census, population figures shall be derived from the estimate from the Utah
3006
Population Committee.
3007
(c) The population of a county for purposes of this section shall be determined only from
3008
the unincorporated area of the county.
3009
(7)(a) As used in this Subsection (7):
3010
(i) "Applicable percentage" means, for a project area under Title 11, Chapter 71,
3011
Beehive Development Agency Act, for sales occurring within a qualified
3012
development zone described in Subsection (7)(a)(ii), 50% of the revenue from the
3013
sales and use tax under this part.
3014
(ii) "Qualified development zone" means the sales and use tax boundary a project
3015
area under Title 11, Chapter 71, Beehive Development Agency Act.
3016
(iii) "Qualifying construction materials" means construction materials that are:
3017
(A) delivered to a delivery outlet within a qualified development zone; and
3018
(B) intended to be permanently attached to real property within the qualified
3019
development zone.
3020
(b) For a sale of qualifying construction materials, the commission shall distribute the
3021
product calculated in Subsection (7)(c) to the Beehive Development Agency for a
3022
qualified development zone if the seller of the construction materials:
- 89 - S.B. 337 02-26 10:50
3023
(i) establishes a delivery outlet with the commission within the qualified development
3024
zone;
3025
(ii) reports the sales of the construction materials to the delivery outlet described in
3026
Subsection (7)(b)(i); and
3027
(iii) does not report the sales of the construction materials on a simplified electronic
3028
return.
3029
(c) For the purposes of Subsection (7)(b), the product is equal to:
3030
(i) the sales price or purchase price of the qualifying construction materials; and
3031
(ii) the applicable percentage.
3032
(d) If an amount of revenue is distributed pertaining to a qualified construction material
3033
transaction pursuant to Subsection (7)(b), the distribution under Subsection
3034
(2)(a)(ii)(E) is satisfied for that transaction.
3035
(8)(a) As used in this Subsection (8):
3036
(i) "Qualified development zone" means the same as that term is defined in
3037
Subsection (7).
3038
(ii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M,
3039
Schedule J or a substantially similar form as designated by the commission.
3040
(b) Revenue generated by a Schedule J sale within a qualified development zone shall be
3041
distributed to the jurisdiction that would have received the revenue in the absence of
3042
the qualified development zone.
3043
Section 45. Section 59-12-352 is amended to read:
3044
59-12-352 (Effective 01/01/26). Transient room tax authority for municipalities
3045
and certain authorities -- Purposes for which revenues may be used.
3046
(1)(a) Except as provided in Subsection (5), the governing body of a municipality may
3047
impose a tax of not to exceed 1% on charges for the accommodations and services
3048
described in Subsection 59-12-103(1)(i).
3049
(b) Subject to Section 63H-1-203, the military installation development authority created
3050
in Section 63H-1-201 may impose a tax under this section for accommodations and
3051
services described in Subsection 59-12-103(1)(i) within a project area described in a
3052
project area plan adopted by the authority under Title 63H, Chapter 1, Military
3053
Installation Development Authority Act, as though the authority were a municipality.
3054
(c) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration
3055
District, created in Section 11-70-201, may impose a tax under this section for
3056
accommodations and services described in Subsection 59-12-103(1)(i) within the
- 90 - 02-26 10:50 S.B. 337
3057
district sales tax area, as defined in Section 11-70-101, to the same extent and in the
3058
same manner as a municipality may impose a tax under this section.
3059
(d) Beginning January 1, 2026, the Beehive Development Agency may impose a tax
3060
under this section for accommodations and services described in Subsection
3061
59-12-103(1)(i) within a project area established by the Beehive Development
3062
Agency Board:
3063
(i) to the same extent and in the same manner as a municipality may impose a tax
3064
under this section; and
3065
(ii) as described in Subsection (7).
3066
(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
3067
ordinance, increase or decrease the tax under this part.
3068
(3) A governing body of a municipality shall regulate the tax under this part by ordinance.
3069
(4) A municipality may use revenues generated by the tax under this part for general fund
3070
purposes.
3071
(5)(a) A municipality may not impose a tax under this section for accommodations and
3072
services described in Subsection 59-12-103(1)(i) within a project area described in a
3073
project area plan adopted by[ ]:
3074
(i) the military installation development authority under Title 63H, Chapter 1,
3075
Military Installation Development Authority Act; [or]
3076
(ii) the Utah Fairpark Area Investment and Restoration District under Title 11,
3077
Chapter 70, Utah Fairpark Area Investment and Restoration District[.] ; or
3078
(iii) the Beehive Development Agency created in Section 11-71-201.
3079
(b) Subsection (5)(a) does not apply to the military installation development authority's
3080
imposition of a tax under this section.
3081
(6)(a) As used in this Subsection (6):
3082
(i) "Authority" means the Point of the Mountain State Land Authority, created in
3083
Section 11-59-201.
3084
(ii) "Authority board" means the board referred to in Section 11-59-301.
3085
(b) The authority may, by a resolution adopted by the authority board, impose a tax of
3086
not to exceed 5% on charges for the accommodations and services described in
3087
Subsection 59-12-103(1)(i) for transactions that occur on point of the mountain state
3088
land, as defined in Section 11-59-102.
3089
(c) The authority board, by resolution, shall regulate the tax under this Subsection (6).
3090
(d) The authority shall use all revenue from a tax imposed under this Subsection (6) to
- 91 - S.B. 337 02-26 10:50
3091
provide affordable housing, consistent with the manner that a community
3092
reinvestment agency uses funds for income targeted housing under Section 17C-1-412.
3093
(e) A tax under this Subsection (6) is in addition to any other tax that may be imposed
3094
under this part.
3095
(7)(a) The Beehive Development Agency Board may impose a tax of not to exceed 5%
3096
on charges for the accommodations and services described in Subsection
3097
59-12-103(1)(i) for transactions that occur within a project area.
3098
(b) Revenue generated by a tax imposed under this Subsection (7):
3099
(i) shall be distributed to the Beehive Development Agency; and
3100
(ii) constitutes project area funds, to be managed and expended as described in
3101
Section 11-71-501.
3102
(c) A tax under this Subsection (7) is in addition to any other tax that may be imposed
3103
under this part.
3104
Section 46. Section 59-12-354 is amended to read:
3105
59-12-354 (Effective 01/01/26). Collection of tax -- Administrative charge.
3106
(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall be
3107
administered, collected, and enforced in accordance with:
3108
(a) the same procedures used to administer, collect, and enforce the tax under:
3109
(i) Part 1, Tax Collection; or
3110
(ii) Part 2, Local Sales and Use Tax Act; and
3111
(b) Chapter 1, General Taxation Policies.
3112
(2)(a) The location of a transaction shall be determined in accordance with Sections
3113
59-12-211 through 59-12-215.
3114
(b) Except as provided in Subsection (2)(c), the commission shall distribute the revenue
3115
collected from the tax to:
3116
(i)(A) the municipality within which the revenue was collected, for a tax imposed
3117
under this part by a municipality; or
3118
(B) the Utah Fairpark Area Investment and Restoration District, for a tax imposed
3119
under this part by the Utah Fairpark Area Investment and Restoration District; [
3120
and]
3121
(ii) the Point of the Mountain State Land Authority, for a tax imposed under
3122
Subsection 59-12-352(6)[.] ; and
3123
(iii) the Beehive Development Agency, for a tax imposed under Subsection
3124
59-12-352(7).
- 92 - 02-26 10:50 S.B. 337
3125
(c) The commission shall retain and deposit an administrative charge in accordance with
3126
Section 59-1-306 from the revenue the commission collects from a tax under this part.
3127
(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections
3128
59-12-205(2) through (5).
3129
Section 47. Section 59-12-401 is amended to read:
3130
59-12-401 (Effective 01/01/26). Resort communities tax authority for cities,
3131
towns, and certain authorities -- Base -- Rate -- Collection fees.
3132
(1)(a) In addition to other sales and use taxes, a city or town in which the transient room
3133
capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
3134
municipality's permanent census population may impose a sales and use tax of up to
3135
1.1% on the transactions described in Subsection 59-12-103(1) located within the city
3136
or town.
3137
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
3138
section on:
3139
(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3140
manufactured home, or a mobile home;
3141
(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3142
uses are exempt from taxation under Section 59-12-104; and
3143
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3144
food ingredients; [or]
3145
(ii) transactions that occur in the district sales tax area, as defined in Subsection (4), if
3146
the fairpark district, as defined in Subsection (4), has imposed a tax under
3147
Subsection (4); or
3148
(iii) transactions that occur in a project area of the Beehive Development Agency, if
3149
the Beehive Development Agency has imposed a tax under Subsection (5).
3150
(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3151
in accordance with Sections 59-12-211 through 59-12-215.
3152
(d) A city or town imposing a tax under this section shall impose the tax on the purchase
3153
price or the sales price for amounts paid or charged for food and food ingredients if
3154
the food and food ingredients are sold as part of a bundled transaction attributable to
3155
food and food ingredients and tangible personal property other than food and food
3156
ingredients.
3157
(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3158
the implementation of Subsection (1) which exceed, in any year, the revenues
- 93 - S.B. 337 02-26 10:50
3159
received by the state from its collection fees received in connection with the
3160
implementation of Subsection (1) shall be paid over to the state General Fund by the
3161
cities and towns which impose the tax provided for in Subsection (1).
3162
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3163
cities and towns according to the amount of revenue the respective cities and towns
3164
generate in that year through imposition of that tax.
3165
(3)(a) Subject to Section 63H-1-203, the military installation development authority
3166
created in Section 63H-1-201 may impose a tax under this section on the transactions
3167
described in Subsection 59-12-103(1) located within a project area described in a
3168
project area plan adopted by the authority under Title 63H, Chapter 1, Military
3169
Installation Development Authority Act, as though the authority were a city or a town.
3170
(b) For purposes of calculating the permanent census population within a project area,
3171
the board, as defined in Section 63H-1-102, shall:
3172
(i) use the actual number of permanent residents within the project area as determined
3173
by the board;
3174
(ii) include in the calculation of transient room capacity the number, as determined
3175
by the board, of approved high-occupancy lodging units, recreational lodging
3176
units, special lodging units, and standard lodging units, even if the units are not
3177
constructed;
3178
(iii) adopt a resolution verifying the population number; and
3179
(iv) provide the commission any information required in Section 59-12-405.
3180
(c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may
3181
impose the sales and use tax under this section if there are no permanent residents.
3182
(4)(a) As used in this Subsection (4):
3183
(i) "District sales tax area" means the same as that term is defined in Section
3184
11-70-101.
3185
(ii) "Fairpark district" means the Utah Fairpark Area Investment and Restoration
3186
District, created in Section 11-70-201.
3187
(iii) "Fairpark district board" means the board of the fairpark district.
3188
(b) The fairpark district, by resolution of the fairpark district board, may impose a tax
3189
under this section, as though the fairpark district were a city or town, on transactions
3190
described in Subsection 59-12-103(1):
3191
(i) located within the district sales tax area; and
3192
(ii) that occur on or after October 1, 2024.
- 94 - 02-26 10:50 S.B. 337
3193
(c) For purposes of calculating the permanent census population within the district sales
3194
tax area, the fairpark district board shall:
3195
(i) use the actual number of permanent residents within the district sales tax area as
3196
determined by the fairpark district board;
3197
(ii) include in the calculation of transient room capacity the number, as determined
3198
by the fairpark district board, of approved high-occupancy lodging units,
3199
recreational lodging units, special lodging units, and standard lodging units, even
3200
if the units are not constructed;
3201
(iii) adopt a resolution verifying the population number; and
3202
(iv) provide the commission any information required in Section 59-12-405.
3203
(d) Notwithstanding Subsection (1)(a), the fairpark district may impose the sales and use
3204
tax under this section if there are no permanent residents within the district sales tax
3205
area.
3206
(5) Beginning January 1, 2026, the Beehive Development Agency may impose a tax under
3207
this section as though the Beehive Development Agency were a city or town in which
3208
the transient room capacity as defined in Section 59-12-405 is greater than or equal to
3209
66% of the municipality's permanent census population on the transactions described in
3210
Subsection 59-12-103(1) located within the sales and use tax boundary for the project
3211
area.
3212
Section 48. Section 59-12-402 is amended to read:
3213
59-12-402 (Effective 01/01/26). Additional resort communities sales and use tax
3214
-- Base -- Rate -- Collection fees -- Resolution and voter approval requirements --
3215
Election requirements -- Notice requirements -- Ordinance requirements -- Certain
3216
authorities implementing additional resort communities sales and use tax.
3217
(1)(a) Subject to Subsections (2) through (6), the governing body of a municipality in
3218
which the transient room capacity as defined in Section 59-12-405 is greater than or
3219
equal to 66% of the municipality's permanent census population may, in addition to
3220
the sales tax authorized under Section 59-12-401, impose an additional resort
3221
communities sales tax in an amount that is less than or equal to .5% on the
3222
transactions described in Subsection 59-12-103(1) located within the municipality.
3223
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
3224
impose a tax under this section on:
3225
(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3226
manufactured home, or a mobile home;
- 95 - S.B. 337 02-26 10:50
3227
(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3228
uses are exempt from taxation under Section 59-12-104; and
3229
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3230
food ingredients; [or]
3231
(ii) transactions that occur in the district sales tax area, as defined in Subsection
3232
59-12-401(4), if the Utah Fairpark Area Investment and Restoration District,
3233
created in Section 11-70-201, has imposed a tax under Subsection (8)[.] ; or
3234
(iii) transactions that occur within the sales and use tax boundary of a project area
3235
established by the Beehive Development Agency, if the Beehive Development
3236
Agency, created in Section 11-71-201, has imposed a tax under Subsection (9).
3237
(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3238
in accordance with Sections 59-12-211 through 59-12-215.
3239
(d) A municipality imposing a tax under this section shall impose the tax on the
3240
purchase price or sales price for amounts paid or charged for food and food
3241
ingredients if the food and food ingredients are sold as part of a bundled transaction
3242
attributable to food and food ingredients and tangible personal property other than
3243
food and food ingredients.
3244
(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3245
the implementation of Subsection (1) which exceed, in any year, the revenues
3246
received by the state from its collection fees received in connection with the
3247
implementation of Subsection (1) shall be paid over to the state General Fund by the
3248
cities and towns which impose the tax provided for in Subsection (1).
3249
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3250
cities and towns according to the amount of revenue the respective cities and towns
3251
generate in that year through imposition of that tax.
3252
(3) To impose an additional resort communities sales tax under this section, the governing
3253
body of the municipality shall:
3254
(a) pass a resolution approving the tax; and
3255
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
3256
Subsection (4).
3257
(4) To obtain voter approval for an additional resort communities sales tax under
3258
Subsection (3)(b), a municipality shall:
3259
(a) hold the additional resort communities sales tax election during:
3260
(i) a regular general election; or
- 96 - 02-26 10:50 S.B. 337
3261
(ii) a municipal general election; and
3262
(b) post notice of the election for the municipality, as a class A notice under Section
3263
63G-30-102, for at least 15 days before the day on which the election is held.
3264
(5) An ordinance approving an additional resort communities sales tax under this section
3265
shall provide an effective date for the tax as provided in Section 59-12-403.
3266
(6)(a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
3267
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
3268
municipality imposed a license fee or tax on businesses based on gross receipts
3269
pursuant to Section 10-1-203.
3270
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
3271
apply to a municipality that, on or before January 1, 1996, imposed a license fee or
3272
tax on only one class of businesses based on gross receipts pursuant to Section
3273
10-1-203.
3274
(7) Subject to Subsection 63H-1-203(1), a military installation development authority
3275
authorized to impose a resort communities tax under Section 59-12-401 may impose an
3276
additional resort communities sales tax under this section.
3277
(8) The Utah Fairpark Area Investment and Restoration District, created in Section
3278
11-70-201, may impose an additional resort communities tax under this section on
3279
transactions that occur:
3280
(a) within the district sales tax area, as defined in Subsection 59-12-401(4); and
3281
(b) that occur on or after October 1, 2024.
3282
(9) On or after January 1, 2026, the Beehive Development Agency may impose an
3283
additional resort communities tax under this section on transactions that occur within the
3284
project area sales and use tax boundary, as defined in Section 11-71-101, as if the
3285
Beehive Development Agency was a municipality.
3286
Section 49. Section 63A-3-401.5 is amended to read:
3287
63A-3-401.5 (Effective 05/07/25). Definitions.
3288
As used in this part:
3289
(1) "Beehive development fund" means the infrastructure fund created in Subsection
3290
63A-3-402(1)(e).
3291
(2) "Borrower" means a person who borrows money from an infrastructure fund for an
3292
infrastructure project.
3293
[(2)] (3) "Fairpark district development fund" means the infrastructure fund created in
3294
Subsection 63A-3-402(1)(c).
- 97 - S.B. 337 02-26 10:50
3295
[(3)] (4) "Independent political subdivision" means:
3296
(a) the Utah Inland Port Authority created in Section 11-58-201;
3297
(b) the Point of the Mountain State Land Authority created in Section 11-59-201;
3298
(c) the Utah Fairpark Area Investment and Restoration District created in Section
3299
11-70-201; or
3300
(d) the Military Installation Development Authority created in Section 63H-1-201.
3301
[(4)] (5) "Infrastructure fund" means a fund created in Subsection 63A-3-402(1).
3302
[(5)] (6) "Infrastructure loan" means a loan of infrastructure fund money to finance an
3303
infrastructure project.
3304
[(6)] (7) "Infrastructure project" means a project to acquire, construct, reconstruct,
3305
rehabilitate, equip, or improve public infrastructure and improvements:
3306
(a) within a project area; or
3307
(b) outside a project area, if the respective loan approval body determines by resolution
3308
that the public infrastructure and improvements are of benefit to the project area.
3309
[(7)] (8) "Inland port" means the same as that term is defined in Section 11-58-102.
3310
[(8)] (9) "Inland port fund" means the infrastructure fund created in Subsection 63A-3-402
3311
(1)(a).
3312
[(9)] (10) "Military development fund" means the infrastructure fund created in Subsection
3313
63A-3-402(1)(d).
3314
[(10)] (11) "Point of the mountain fund" means the infrastructure fund created in Subsection
3315
63A-3-402(1)(b).
3316
[(11)] (12) "Project area" means:
3317
(a) the same as that term is defined in Section 11-58-102, for purposes of an
3318
infrastructure loan from the inland port fund;
3319
(b) the point of the mountain state land, as defined in Section 11-59-102, for purposes of
3320
an infrastructure loan from the point of the mountain fund;
3321
(c) the same as that term is defined in Section 11-70-101, for purposes of an
3322
infrastructure loan from the fairpark district development fund; [or]
3323
(d) the same as that term is defined in Section 63H-1-102, for purposes of an
3324
infrastructure loan from the military development fund[.] ; or
3325
(e) the same as that term is defined in Section 11-71-101, for purposes of an
3326
infrastructure loan from the beehive development fund.
3327
[(12)] (13) "Property tax revenue" means:
3328
(a) property tax differential, as defined in Section 11-58-102, for purposes of an
- 98 - 02-26 10:50 S.B. 337
3329
infrastructure loan from the inland port fund;
3330
(b) enhanced property tax revenue, as defined in Section 11-70-101, for purposes of an
3331
infrastructure loan from the fairpark district development fund; [or]
3332
(c) property tax allocation, as defined in Section 63H-1-102, for purposes of an
3333
infrastructure loan from the military development fund[.] ; or
3334
(d) property tax differential, as defined in Section 11-71-101, for purposes of an
3335
infrastructure loan from the beehive development fund.
3336
[(13)] (14) "Public infrastructure and improvements" means:
3337
(a) the same as that term is defined in Section 11-58-102, for purposes of an
3338
infrastructure loan from the inland port fund;
3339
(b) publicly owned infrastructure and improvements, as defined in Section 11-59-102,
3340
for purposes of an infrastructure loan from the point of the mountain fund;
3341
(c) the same as that term is defined in Section 11-70-101, for purposes of an
3342
infrastructure loan from the fairpark district development fund; [or]
3343
(d) the same as that term is defined in Section 63H-1-102, for purposes of an
3344
infrastructure loan from the military development fund[.] ; or
3345
(e) the same as that term is defined in Section 11-71-101, for purposes of an
3346
infrastructure loan from the beehive development fund.
3347
[(14)] (15) "Respective loan approval body" means:
3348
(a) the board created in Section 11-58-301, for purposes of an infrastructure loan from
3349
the inland port fund;
3350
(b) the board created in Section 11-59-301, for purposes of an infrastructure loan from
3351
the point of the mountain fund;
3352
(c) the board created in Section 11-70-301, for purposes of an infrastructure loan from
3353
the fairpark area development fund; [or]
3354
(d) the committee created in Section 63H-1-104, for purposes of an infrastructure loan
3355
from the military development fund[.] ; or
3356
(e) the loan committee created in Section 11-71-104, for purposes of an infrastructure
3357
loan from the beehive development fund.
3358
Section 50. Section 63A-3-402 is amended to read:
3359
63A-3-402 (Effective 05/07/25). Infrastructure funds established -- Purpose of
3360
funds -- Use of money in funds.
3361
(1) There are created, as enterprise revolving loan funds:
3362
(a) the inland port infrastructure revolving loan fund;
- 99 - S.B. 337 02-26 10:50
3363
(b) the point of the mountain infrastructure revolving loan fund;
3364
(c) the fairpark area development revolving loan fund; [and]
3365
(d) the military development infrastructure revolving loan fund[.] ; and
3366
(e) the beehive development infrastructure revolving loan fund.
3367
(2) The purpose of each infrastructure fund is to provide funding, through infrastructure
3368
loans, for infrastructure projects undertaken by a borrower.
3369
(3)(a) Money in an infrastructure fund may be used only to provide loans for
3370
infrastructure projects.
3371
(b) The division may not loan money in an infrastructure fund without the approval of:
3372
(i) the respective loan approval body; and
3373
(ii) the Executive Appropriations Committee of the Legislature, for a loan from the
3374
inland port fund, the point of the mountain fund, [or ]the fairpark area
3375
development fund, or the beehive development fund.
3376
Section 51. Section 63C-25-202 is amended to read:
3377
63C-25-202 (Effective 05/07/25). Powers and duties.
3378
(1) The commission shall annually review a report provided in accordance with Section
3379
63B-1-305 or 63B-1a-102.
3380
(2)(a) A loan entity other than a loan entity described in Subsection (2)(b) shall no later
3381
than January 1 of each year submit information on each revolving loan fund from
3382
which the loan entity made a loan in the previous fiscal year, including information
3383
identifying new and ongoing loan recipients, the terms of each loan, loan repayment,
3384
and any other information regarding a revolving loan fund requested by the
3385
commission.
3386
(b) If a loan entity is:
3387
(i) the Utah Inland Port Authority, the loan entity shall submit the information in
3388
accordance with Section 11-58-106 and any other information regarding a
3389
revolving loan fund requested by the commission;
3390
(ii) the Point of the Mountain State Land Authority, the loan entity shall submit the
3391
information in accordance with Section 11-59-104 and any other information
3392
regarding a revolving loan fund requested by the commission;
3393
(iii) the Utah Fairpark Area Investment and Restoration District, the loan entity shall
3394
submit the information in accordance with Section 11-70-104 and any other
3395
information regarding a revolving loan fund requested by the commission; [or]
3396
(iv) the Military Installation Development Authority, the loan entity shall submit the
- 100 - 02-26 10:50 S.B. 337
3397
information in accordance with Section 63H-1-104 and any other information
3398
regarding a revolving loan fund requested by the commission[.] ; or
3399
(v) the Beehive Development Agency, the loan entity shall submit the information in
3400
accordance with Section 11-71-104 and any other information regarding a
3401
revolving loan fund requested by the commission.
3402
(c) The commission may annually review and provide feedback for the following:
3403
(i) each loan entity for compliance with state law authorizing and regulating the
3404
revolving loan fund, including, as applicable, Title 11, Chapter 14, Local
3405
Government Bonding Act;
3406
(ii) each loan entity's revolving loan fund policies and practices, including policies
3407
and practices for approving and setting the terms of a loan; and
3408
(iii) each borrower of funds from a revolving loan fund for accurate and timely
3409
reporting by the borrower to the appropriate debt repository.
3410
(3)(a) The commission shall review and may approve a bond before a large public transit
3411
district may issue a bond.
3412
(b) The commission may not approve issuance of a bond described in Subsection (3)(a)
3413
unless the execution and terms of the bond comply with state law.
3414
(c) If, after review, the commission approves a bond described in Subsection (3)(a), the
3415
large public transit district:
3416
(i) may not change before issuing the bond the terms of the bond that were reviewed
3417
by the commission if the change is outside the approved parameters and intended
3418
purposes; and
3419
(ii) is under no obligation to issue the bond.
3420
(d) A member of the commission who approves a bond under Subsection (3)(a) or
3421
reviews a parameters resolution under Subsection (4)(a) is not liable personally on
3422
the bond.
3423
(e) The approval of a bond under Subsection (3)(a) or review under Subsection (4)(a) of
3424
a parameters resolution by the commission:
3425
(i) is not an obligation of the state; and
3426
(ii) is not an act that:
3427
(A) lends the state's credit; or
3428
(B) constitutes indebtedness within the meaning of any constitutional or statutory
3429
debt limitation.
3430
(4)(a) The commission shall review and, at the commission's discretion, may make
- 101 - S.B. 337 02-26 10:50
3431
recommendations regarding a parameters resolution before:
3432
(i) a bonding political subdivision may issue a bond; or
3433
(ii) a public infrastructure district may issue a bond, if the creating entity of the
3434
public infrastructure district is a bonding political subdivision.
3435
(b) The commission shall conduct the review under Subsection (4)(a) and forward any
3436
recommendations to the bonding political subdivision or public infrastructure district
3437
no later than 45 days after the day on which the commission receives the bonding
3438
political subdivision's or public infrastructure district's parameters resolution.
3439
(c) Notwithstanding Subsection (4)(a), if the commission fails to review a parameters
3440
resolution or forward recommendations, if any, in the timeframe described in
3441
Subsection (4)(b), the bonding political subdivision or public infrastructure district,
3442
respectively, may proceed with the bond without review by the commission.
3443
(d) After review by the commission under Subsection (4)(a), the bonding political
3444
subdivision or public infrastructure district:
3445
(i) shall consider recommendations by the commission; and
3446
(ii) may proceed with the bond but is under no obligation to issue the bond.
3447
(5) The commission shall provide training and other information on debt management,
3448
lending and borrowing best practices, and compliance with state law to the authority, a
3449
bonding political subdivision, a large public transit district, and a loan entity.
3450
(6)(a) Before a bonding government entity may enter into a concessionaire contract, the
3451
commission shall review and approve the concessionaire contract.
3452
(b) If, after review, the commission approves the concessionaire contract, the bonding
3453
government entity:
3454
(i) may not change the terms of the concessionaire contract if the change is outside of:
3455
(A) any applicable approved parameters of the concessionaire contract; or
3456
(B) the intended purposes of the concessionaire contract; and
3457
(ii) is under no obligation to enter into the concessionaire contract.
3458
Section 52. Section 63H-8-302 is amended to read:
3459
63H-8-302 (Effective 05/07/25). Corporation -- Additional powers.
3460
(1) To accomplish the declared purposes of this chapter, the corporation has the following
3461
powers:
3462
(a) to purchase mortgage loans originated by mortgage lenders or local public bodies
3463
made for the purpose of financing the construction, development, rehabilitation,
3464
refinancing, or purchase of residential housing for low and moderate income persons;
- 102 - 02-26 10:50 S.B. 337
3465
(b) to make mortgage loans and to provide financial assistance to housing sponsors for
3466
the purpose of financing the construction, development, rehabilitation, refinancing, or
3467
purchase of residential housing for low and moderate income persons;
3468
(c) to make mortgage loans and provide financial assistance to housing sponsors for the
3469
purpose of financing the operations of a housing development that are necessary or
3470
desirable to enable the housing development to remain available as residential
3471
housing for low and moderate income persons, whether or not the housing
3472
development has been financed by the corporation;
3473
(d) to provide financial assistance to any housing authority created under Title 35A,
3474
Chapter 8, Part 4, Housing Authorities, which housing authorities may enter into
3475
commitments for and accept loans for a housing project as defined in Section
3476
35A-8-401; and
3477
(e) to make mortgage loans and to provide financial assistance to low and moderate
3478
income persons for the construction, rehabilitation, refinancing, or purchase of
3479
residential housing.
3480
(2) The corporation may issue bonds to purchase loans under Subsection (1)(a) only after a
3481
determination by the corporation that the loans are not otherwise available upon
3482
reasonably equivalent terms and conditions from private lenders.
3483
(3) Loans for owner-occupied housing made under Subsection (1)(a) may not include a
3484
penalty for prepayment.
3485
(4) The corporation shall make rules or adopt policies and procedures to govern the
3486
activities authorized under this section, including:
3487
(a) procedures for the submission of requests or the invitation of proposals for the
3488
purchase and sale of mortgage loans and the making of mortgage loans;
3489
(b) rates, fees, charges, and other terms and conditions of originating or servicing
3490
mortgage loans in order to protect against a realization of an excessive financial
3491
return or benefit by the originator or servicer;
3492
(c) the type and amount of collateral, payment bonds, performance bonds, or other
3493
security to be provided for construction loans made by the corporation;
3494
(d) the nature and amounts of fees to be charged by the corporation to provide for
3495
expenses and reserves of the corporation;
3496
(e) procedures allowing the corporation to prohibit persons who fail to comply with the
3497
rules of the corporation with respect to the operations of a program of the corporation
3498
from participating, either directly or indirectly, in the programs of the corporation;
- 103 - S.B. 337 02-26 10:50
3499
(f) the terms and conditions under which the corporation may purchase and make
3500
mortgage loans under each program of the corporation;
3501
(g) the terms and conditions under which the corporation may provide financial
3502
assistance under each program of the corporation;
3503
(h) the terms and conditions under which the corporation may guarantee mortgage loans
3504
under each program of the corporation; and
3505
(i) any other matters related to the duties or exercise of powers under this section.
3506
(5)(a)(i) The trustees of the corporation shall elect the directors, trustees, and
3507
members, if any, of each subsidiary.
3508
(ii) Service by a trustee of the corporation in any of these capacities does not
3509
constitute a conflict of interest for any purpose.
3510
(iii) The corporation may delegate any of its powers and duties under this chapter to
3511
any subsidiary.
3512
(iv) Subsidiaries shall constitute legal entities separate and distinct from each other,
3513
the corporation, and the state.
3514
(b) A note, bond, and other obligation of a subsidiary shall contain on its face a
3515
statement to the effect that:
3516
(i) the subsidiary is obligated to pay the note, bond, or other obligation solely from
3517
the revenues or other funds of the subsidiary;
3518
(ii) neither the corporation, nor the state, nor any of its political subdivisions is
3519
obligated to pay the note, bond, or other obligation; and
3520
(iii) neither the faith and credit nor the taxing power of the state or its political
3521
subdivisions is pledged to the payment of principal, the redemption price of, or the
3522
interest on, the note, bond, or other obligation.
3523
(c) Upon dissolution of a subsidiary of the corporation, any assets shall revert to the
3524
corporation or to a successor to the corporation or, failing this succession, to the state.
3525
(6)(a) The corporation may, with the approval of the state treasurer:
3526
(i) enter into interest rate contracts that its trustees determine are necessary,
3527
convenient, or appropriate for the control or management of debt or for the cost of
3528
servicing debt; and
3529
(ii) use corporation funds to satisfy its payment obligations under those contracts.
3530
(b) An interest rate contract may contain payment, security, default, termination,
3531
remedy, and other terms and conditions that the trustees consider appropriate.
3532
(c) An interest rate contract and funds used in connection with an interest rate contract
- 104 - 02-26 10:50 S.B. 337
3533
may not be considered a deposit or investment.
3534
(7) The corporation shall coordinate with the chief executive officer of the Governor's
3535
Office of Economic Opportunity in fulfilling the corporation's duties.
3536
Section 53. Section 63I-1-263 is amended to read:
3537
63I-1-263 (Effective 05/07/25). Repeal dates: Titles 63A to 63O.
3538
(1) Subsection 63A-5b-405(5), regarding prioritizing and allocating capital improvement
3539
funding, is repealed July 1, 2024.
3540
(2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
3541
2028.
3542
(3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1, 2025.
3543
(4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
3544
December 31, 2026.
3545
(5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
3546
repealed December 31, 2024.
3547
(6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
3548
(7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
3549
(8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
3550
(9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July
3551
1, 2028.
3552
(10) Section 63G-6a-805, Purchase from community rehabilitation programs, is repealed
3553
July 1, 2026.
3554
(11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1, 2028.
3555
(12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
3556
2029.
3557
[(13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.]
3558
[(14)] (13) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
3559
Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
3560
[(15)] (14) Subsection 63J-1-602.2(26), regarding the Utah Seismic Safety Commission, is
3561
repealed January 1, 2025.
3562
[(16)] (15) Section 63L-11-204, Canyon resource management plan, is repealed July 1, 2025.
3563
[(17)] (16) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee,
3564
is repealed July 1, 2027.
3565
[(18)] (17) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
3566
repealed July 1, 2027.
- 105 - S.B. 337 02-26 10:50
3567
[(19)] (18) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses,
3568
is repealed July 1, 2029.
3569
[(20)] (19) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
3570
(20) Section 63N-1a-303.2, Coordination of future Office of Housing and Community
3571
Planning, is repealed July 1, 2026.
3572
(21) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is repealed
3573
January 1, 2030.
3574
(22) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
3575
(23) Subsection 63N-2-511(1)(b), regarding the Board of Tourism Development, is
3576
repealed July 1, 2025.
3577
(24) Section 63N-2-512, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
3578
(25) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is repealed July
3579
1, 2027.
3580
(26) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
3581
repealed July 1, 2025.
3582
(27) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed July
3583
1, 2028.
3584
(28) Section 63N-4-804, which creates the Rural Opportunity Advisory Committee, is
3585
repealed July 1, 2027.
3586
(29) Subsection 63N-4-805(5)(b), regarding the Rural Employment Expansion Program, is
3587
repealed July 1, 2028.
3588
(30) Subsection 63N-7-101(1), regarding the Board of Tourism Development, is repealed
3589
July 1, 2025.
3590
(31) Subsection 63N-7-102(3)(c), regarding a requirement for the Utah Office of Tourism
3591
to receive approval from the Board of Tourism Development, is repealed July 1, 2025.
3592
(32) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1, 2025.
3593
Section 54. Section 63J-1-602.1 is amended to read:
3594
63J-1-602.1 (Effective 05/07/25). List of nonlapsing appropriations from
3595
accounts and funds.
3596
Appropriations made from the following accounts or funds are nonlapsing:
3597
(1) The Native American Repatriation Restricted Account created in Section 9-9-407.
3598
(2) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as
3599
provided under Title 9, Chapter 23, Pete Suazo Utah Athletic Commission Act.
3600
(3) Funds collected for directing and administering the C-PACE district created in Section
- 106 - 02-26 10:50 S.B. 337
3601
11-42a-106.
3602
(4) Money received by the Utah Inland Port Authority, as provided in Section 11-58-105.
3603
(5) The Commerce Electronic Payment Fee Restricted Account created in Section 13-1-17.
3604
(6) The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section
3605
19-2a-106.
3606
(7) The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
3607
Section 19-5-126.
3608
(8) State funds for matching federal funds in the Children's Health Insurance Program as
3609
provided in Section 26B-3-906.
3610
(9) Funds collected from the program fund for local health department expenses incurred in
3611
responding to a local health emergency under Section 26B-7-111.
3612
(10) The Technology Development Restricted Account created in Section 31A-3-104.
3613
(11) The Criminal Background Check Restricted Account created in Section 31A-3-105.
3614
(12) The Captive Insurance Restricted Account created in Section 31A-3-304, except to the
3615
extent that Section 31A-3-304 makes the money received under that section free revenue.
3616
(13) The Title Licensee Enforcement Restricted Account created in Section 31A-23a-415.
3617
(14) The Health Insurance Actuarial Review Restricted Account created in Section
3618
31A-30-115.
3619
(15) The State Mandated Insurer Payments Restricted Account created in Section
3620
31A-30-118.
3621
(16) The Insurance Fraud Investigation Restricted Account created in Section 31A-31-108.
3622
(17) The Underage Drinking Prevention Media and Education Campaign Restricted
3623
Account created in Section 32B-2-306.
3624
(18) The Drinking While Pregnant Prevention Media and Education Campaign Restricted
3625
Account created in Section 32B-2-308.
3626
(19) The School Readiness Restricted Account created in Section 35A-15-203.
3627
(20) Money received by the Utah State Office of Rehabilitation for the sale of certain
3628
products or services, as provided in Section 35A-13-202.
3629
(21) The Homeless Shelter Cities Mitigation Restricted Account created in Section
3630
35A-16-402.
3631
(22) The Oil and Gas Administrative Penalties Account created in Section 40-6-11.
3632
(23) The Oil and Gas Conservation Account created in Section 40-6-14.5.
3633
(24) The Division of Oil, Gas, and Mining Restricted account created in Section 40-6-23.
3634
(25) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to the
- 107 - S.B. 337 02-26 10:50
3635
Motor Vehicle Division.
3636
(26) The License Plate Restricted Account created by Section 41-1a-122.
3637
(27) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
3638
created by Section 41-3-110 to the State Tax Commission.
3639
(28) The State Disaster Recovery Restricted Account to the Division of Emergency
3640
Management, as provided in Section 53-2a-603.
3641
(29) The Response, Recovery, and Post-disaster Mitigation Restricted Account created in
3642
Section 53-2a-1302.
3643
(30) The Department of Public Safety Restricted Account to the Department of Public
3644
Safety, as provided in Section 53-3-106.
3645
(31) The Utah Highway Patrol Aero Bureau Restricted Account created in Section 53-8-303.
3646
(32) The DNA Specimen Restricted Account created in Section 53-10-407.
3647
(33) The Technical Colleges Capital Projects Fund created in Section 53B-2a-118.
3648
(34) The Higher Education Capital Projects Fund created in Section 53B-22-202.
3649
(35) A certain portion of money collected for administrative costs under the School
3650
Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
3651
(36) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5, subject
3652
to Subsection 54-5-1.5(4)(d).
3653
(37) Funds collected from a surcharge fee to provide certain licensees with access to an
3654
electronic reference library, as provided in Section 58-3a-105.
3655
(38) Certain fines collected by the Division of Professional Licensing for violation of
3656
unlawful or unprofessional conduct that are used for education and enforcement
3657
purposes, as provided in Section 58-17b-505.
3658
(39) Funds collected from a surcharge fee to provide certain licensees with access to an
3659
electronic reference library, as provided in Section 58-22-104.
3660
(40) Funds collected from a surcharge fee to provide certain licensees with access to an
3661
electronic reference library, as provided in Section 58-55-106.
3662
(41) Funds collected from a surcharge fee to provide certain licensees with access to an
3663
electronic reference library, as provided in Section 58-56-3.5.
3664
(42) Certain fines collected by the Division of Professional Licensing for use in education
3665
and enforcement of the Security Personnel Licensing Act, as provided in Section
3666
58-63-103.
3667
(43) The Relative Value Study Restricted Account created in Section 59-9-105.
3668
(44) The Cigarette Tax Restricted Account created in Section 59-14-204.
- 108 - 02-26 10:50 S.B. 337
3669
(45) Funds paid to the Division of Real Estate for the cost of a criminal background check
3670
for a mortgage loan license, as provided in Section 61-2c-202.
3671
(46) Funds paid to the Division of Real Estate for the cost of a criminal background check
3672
for principal broker, associate broker, and sales agent licenses, as provided in Section
3673
61-2f-204.
3674
(47) Certain funds donated to the Department of Health and Human Services, as provided
3675
in Section 26B-1-202.
3676
(48) Certain funds donated to the Division of Child and Family Services, as provided in
3677
Section 80-2-404.
3678
(49) Funds collected by the Office of Administrative Rules for publishing, as provided in
3679
Section 63G-3-402.
3680
(50) The Immigration Act Restricted Account created in Section 63G-12-103.
3681
(51) Money received by the military installation development authority, as provided in
3682
Section 63H-1-504.
3683
(52) The Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304.
3684
(53) The Utah Statewide Radio System Restricted Account created in Section 63H-7a-403.
3685
(54) The Utah Capital Investment Restricted Account created in Section 63N-6-204.
3686
(55) The Motion Picture Incentive Account created in Section 63N-8-103.
3687
(56) Funds collected by the housing of state probationary inmates or state parole inmates, as
3688
provided in Subsection 64-13e-104(2).
3689
(57) Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and
3690
State Lands, as provided in Section 65A-8-103.
3691
(58) The following funds or accounts created in Section 72-2-124:
3692
(a) Transportation Investment Fund of 2005;
3693
(b) Transit Transportation Investment Fund;
3694
(c) Cottonwood Canyons Transportation Investment Fund;
3695
(d) Active Transportation Investment Fund; and
3696
(e) Commuter Rail Subaccount.
3697
(59) The Amusement Ride Safety Restricted Account, as provided in Section 72-16-204.
3698
(60) Certain funds received by the Office of the State Engineer for well drilling fines or
3699
bonds, as provided in Section 73-3-25.
3700
(61) The Water Resources Conservation and Development Fund, as provided in Section
3701
73-23-2.
3702
(62) Award money under the State Asset Forfeiture Grant Program, as provided under
- 109 - S.B. 337 02-26 10:50
3703
Section 77-11b-403.
3704
(63) Funds donated or paid to a juvenile court by private sources, as provided in Subsection
3705
78A-6-203(1)(c).
3706
(64) Fees for certificate of admission created under Section 78A-9-102.
3707
(65) Funds collected for adoption document access as provided in Sections 78B-6-141,
3708
78B-6-144, and 78B-6-144.5.
3709
(66) Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah
3710
Indigent Defense Commission.
3711
(67) The Utah Geological Survey Restricted Account created in Section 79-3-403.
3712
(68) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State Park,
3713
and Green River State Park, as provided under Section 79-4-403.
3714
(69) Certain funds received by the Division of State Parks from the sale or disposal of
3715
buffalo, as provided under Section 79-4-1001.
3716
(70) Money received by the Beehive Development Agency, as provided in Section
3717
11-71-103.
3718
Section 55. Section 63N-1a-102 is amended to read:
3719
63N-1a-102 (Effective 05/07/25). Definitions.
3720
As used in this title:
3721
(1) "Baseline jobs" means the number of full-time employee positions that existed within a
3722
business entity in the state before the date on which a project related to the business
3723
entity is approved by the office[ or by the GOEO board].
3724
(2) "Baseline state revenue" means the amount of state tax revenue collected from a
3725
business entity or the employees of a business entity during the year before the date on
3726
which a project related to the business entity is approved by the office[ or by the GOEO
3727
board].
3728
[(3) "Commission" means the Unified Economic Opportunity Commission created in
3729
Section 63N-1a-201.]
3730
[(4)] (3) "Chief executive officer" means the chief executive officer of the Governor's Office of
Economic Opportunity.
3731
(4) "Council" means the Economic Opportunity Coordinating Council created in Section
3732
63N-1a-501.
3733
(5) "Economic opportunity agency" includes:
3734
(a) the Department of Workforce Services;
3735
(b) the Department of Cultural and Community Engagement;
- 110 - 02-26 10:50 S.B. 337
3736
(c) the Department of Commerce;
3737
(d) the Department of Natural Resources;
3738
(e) the Office of Energy Development;
3739
(f) the State Board of Education;
3740
(g) institutions of higher education;
3741
(h) the Utah Multicultural Commission;
3742
(i) the World Trade Center Utah;
3743
(j) local government entities;
3744
(k) associations of governments;
3745
(l) the Utah League of Cities and Towns;
3746
(m) the Utah Association of Counties;
3747
(n) the Economic Development Corporation of Utah;
3748
(o) the Small Business Administration;
3749
(p) chambers of commerce;
3750
(q) industry associations;
3751
(r) small business development centers; and
3752
(s) other entities identified by the [commission or the executive director] chief executive
3753
officer.
3754
[(5) "Executive director" means the executive director of the office.]
3755
(6) "Full-time employee" means an employment position that is filled by an employee who
3756
works at least 30 hours per week and:
3757
(a) may include an employment position filled by more than one employee, if each
3758
employee who works less than 30 hours per week is provided benefits comparable to
3759
a full-time employee; and
3760
(b) may not include an employment position that is shifted from one jurisdiction in the
3761
state to another jurisdiction in the state.
3762
[(7) "GOEO board" means the Board of Economic Opportunity created in Section
3763
63N-1a-401.]
3764
[(8)] (7) "High paying job" means a newly created full-time employee position where the
3765
aggregate average annual gross wage of the employment position, not including health
3766
care or other paid or unpaid benefits, is:
3767
(a) at least 110% of the average wage of the county in which the employment position
3768
exists; or
3769
(b) for an employment position related to a project described in Chapter 2, Part 1,
- 111 - S.B. 337 02-26 10:50
3770
Economic Development Tax Increment Financing, and that is located within the
3771
boundary of a county of the third, fourth, fifth, or sixth class, or located within a
3772
municipality in a county of the second class and where the municipality has a
3773
population of 10,000 or less:
3774
(i) at least 100% of the average wage of the county in which the employment position
3775
exists; or
3776
(ii) an amount determined by rule made by the office in accordance with Title 63G,
3777
Chapter 3, Utah Administrative Rulemaking Act, if the office determines the
3778
project is in a county experiencing economic distress.
3779
[(9)] (8)(a) "Incremental job" means a full-time employment position in the state that:
3780
(i) did not exist within a business entity in the state before the beginning of a project
3781
related to the business entity; and
3782
(ii) is created in addition to the number of baseline jobs that existed within a business
3783
entity.
3784
(b) "Incremental job" includes a full-time employment position where the employee is
3785
hired:
3786
(i) directly by a business entity; or
3787
(ii) by a professional employer organization, as defined in Section 31A-40-102, on
3788
behalf of a business entity.
3789
[(10)] (9) "New state revenue" means the state revenue collected from a business entity or a
3790
business entity's employees during a calendar year minus the baseline state revenue
3791
calculation.
3792
[(11)] (10) "Office" or "GOEO" means the Governor's Office of Economic Opportunity.
3793
[(12)] (11) "State revenue" means state tax liability paid by a business entity or a business
3794
entity's employees under any combination of the following provisions:
3795
(a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
3796
(b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
3797
Information;
3798
(c) Title 59, Chapter 10, Part 2, Trusts and Estates;
3799
(d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
3800
(e) Title 59, Chapter 12, Sales and Use Tax Act.
3801
[(13)] (12) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.
3802
[(14)] (13) "Statewide economic development strategy" means the economic development
3803
strategy developed by the commission in accordance with Section 63N-1a-202.
- 112 - 02-26 10:50 S.B. 337
3804
[(15)] (14) "Talent board" means the Talent, Education, and Industry Alignment Board
3805
created in Section 53B-34-102.
3806
[(16)] (15) "Targeted industry" means an industry or group of industries targeted by the [
3807
commission] council under Section [63N-1a-202] 63N-1a-502, for economic
3808
development in the state.
3809
Section 56. Section 63N-1a-301 is amended to read:
3810
63N-1a-301 (Effective 05/07/25). Creation of office -- Responsibilities.
3811
(1) There is created the Governor's Office of Economic Opportunity.
3812
(2) The office is:
3813
(a) responsible for implementing the statewide economic development strategy
3814
developed by the [commission] council; and
3815
(b) the industrial and business promotion authority of the state.
3816
(3) The office shall:
3817
(a) consistent with the statewide economic development strategy, coordinate and align
3818
into a single effort the activities of the economic opportunity agencies in the field of
3819
economic development;
3820
(b) provide support and direction to economic opportunity agencies in establishing
3821
goals, metrics, and activities that align with the statewide economic development
3822
strategy;
3823
(c) administer and coordinate state and federal economic development grant programs;
3824
(d) promote and encourage the economic, commercial, financial, industrial, agricultural,
3825
and civic welfare of the state;
3826
(e) promote and encourage the employment of workers in the state and the purchase of
3827
goods and services produced in the state by local businesses;
3828
(f) act to create, develop, attract, and retain business, industry, and commerce in the state:
3829
(i) in accordance with the statewide economic development plan and [commission]
3830
council directives; and
3831
(ii) subject to the restrictions in Section 11-41-103;
3832
(g) act to enhance the state's economy;
3833
(h) act to assist strategic industries that are likely to drive future economic growth;
3834
(i) assist communities in the state in developing economic development capacity and
3835
coordination with other communities;
3836
(j) identify areas of education and workforce development in the state that can be
3837
improved to support economic and business development;
- 113 - S.B. 337 02-26 10:50
3838
(k) consistent with direction from the [commission] council, develop core strategic
3839
priorities for the office, which may include:
3840
(i) enhancing statewide access to entrepreneurship opportunities and small business
3841
support;
3842
(ii) focusing industry recruitment and expansion of targeted industries;
3843
(iii) ensuring that in awarding competitive economic development incentives the
3844
office accurately measures the benefits and costs of the incentives; and
3845
(iv) assisting communities with technical support to aid those communities in
3846
improving economic development opportunities;
3847
(l) submit an annual written report as described in Section 63N-1a-306; and
3848
(m) perform other duties as provided by the Legislature.
3849
(4) To perform the office's duties under this title, the office may:
3850
(a) enter into a contract or agreement with, or make a grant to, a public or private entity,
3851
including a municipality, if the contract or agreement is not in violation of state
3852
statute or other applicable law;
3853
(b) except as provided in Subsection (4)(c), receive and expend funds from a public or
3854
private source for any lawful purpose that is in the state's best interest; and
3855
(c) solicit and accept a contribution of money, services, or facilities from a public or
3856
private donor, but may not use the contribution for publicizing the exclusive interest
3857
of the donor.
3858
(5) Money received under Subsection (4)(c) shall be deposited into the General Fund as
3859
dedicated credits of the office.
3860
(6)(a) The office shall[:]
3861
[(i) obtain the advice of the GOEO board before implementing a change to a policy,
3862
priority, or objective under which the office operates; and]
3863
[(ii)] provide periodic updates to the [commission] council regarding the office's
3864
efforts under Subsections (3)(a) and (b).
3865
(b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
3866
money or services related to the assistance, retention, or recruitment of business,
3867
industry, or commerce in the state.
3868
Section 57. Section 63N-1a-302 is amended to read:
3869
63N-1a-302 (Effective 05/07/25). Chief executive officer of office -- Appointment
3870
-- Removal -- Compensation.
3871
(1) The office shall be administered, organized, and managed by [an executive director] a
- 114 - 02-26 10:50 S.B. 337
3872
chief executive officer appointed by the governor, with the advice and consent of the
3873
Senate.
3874
(2) The [executive director] chief executive officer serves at the pleasure of the governor.
3875
(3) The salary of the chief executive officer shall be determined by the governor.
3876
[(3) The salary of the executive director shall be established by the governor within the
3877
salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.]
3878
Section 58. Section 63N-1a-303 is amended to read:
3879
63N-1a-303 (Effective 05/07/25). Powers and duties of chief executive officer.
3880
(1) Unless otherwise expressly provided by statute, the [executive director] chief executive
3881
officer may organize the office in any appropriate manner, including the appointment of
3882
deputy directors of the office.
3883
(2) The [executive director] chief executive officer may consolidate personnel and service
3884
functions for efficiency and economy in the office.
3885
(3) The [executive director] chief executive officer, with the approval of the governor:
3886
(a) may, by following the procedures and requirements of Title 63J, Chapter 5, Federal
3887
Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
3888
(b) may enter into a lawful contract or agreement with another state, a chamber of
3889
commerce organization, a service club, or a private entity; and
3890
(c) shall annually prepare and submit to the governor a budget of the office's financial
3891
requirements.
3892
(4) With the governor's approval, if a federal program requires the expenditure of state
3893
funds as a condition for the state to participate in a fund, property, or service, the [
3894
executive director] chief executive officer may expend necessary funds from money
3895
provided by the Legislature for the use of the office.
3896
(5) The [executive director] chief executive officer shall coordinate with the executive
3897
directors of the Department of Workforce Services and the Governor's Office of
3898
Planning and Budget to review data and metrics to be reported to the Legislature as
3899
described in Subsection 63N-1a-306(2)(b).
3900
(6) Unless otherwise provided in this title, the [executive director] chief executive officer
3901
may make rules in accordance with Title 63G, Chapter 3, Utah Administrative
3902
Rulemaking Act, as necessary for the administration of programs established under state
3903
law.
3904
Section 59. Section 63N-1a-303.1 is enacted to read:
3905
63N-1a-303.1 (Effective 05/07/25). Additional duties of the chief executive officer.
- 115 - S.B. 337 02-26 10:50
3906
(1) The chief executive officer shall:
3907
(a) receive direction from the council regarding statewide strategic objectives;
3908
(b) establish strategies for and actively recruit targeted industries identified by the
3909
council;
3910
(c) encourage a business to permanently relocate to, or significantly expand operations
3911
in, the state;
3912
(d) establish strategies for and actively support entrepreneurship and small business
3913
development;
3914
(e) coordinate the economic development activities of the office, state, and the following
3915
authorities:
3916
(i) the Military Installation Development Authority created in Section 63H-1-201;
3917
(ii) the Utah Inland Port Authority created in Section 11-58-201;
3918
(iii) the Point of the Mountain State Land Authority created in Section 11-59-201;
3919
(iv) the Utah Lake Authority created in Section 11-65-201;
3920
(v) the State Fair Park Authority created in Section 11-68-201;
3921
(vi) the Utah Fairpark Area Investment and Restoration District created in Section
3922
11-70-201; or
3923
(vii) the Beehive Development Agency created in Section 11-71-201;
3924
(f) develop proposals for significant community impact projects for consideration by the
3925
Beehive Development Agency established in Title 11, Chapter 71, Beehive
3926
Development Agency Act;
3927
(g) consider any targeted industries identified by the council;
3928
(h) consider areas of the state for targeted economic development, including housing
3929
development, as identified by the council;
3930
(i) match areas of the state for targeted economic development, including housing
3931
development, with targeted industries or businesses encouraged to permanently
3932
relocate to, or significantly expand operations in, the state;
3933
(j) ensure the office's efforts are, to the extent practicable, data-driven, evidence-based,
3934
and focused on developing human capital, physical capital, and innovation; and
3935
(k) support an integrated international trade strategy for the state.
3936
(2) The chief executive officer shall comply with the disclosure requirements of Section
3937
11-71-304.
3938
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3939
chief executive officer may make rules for the conduct of the office's business.
- 116 - 02-26 10:50 S.B. 337
3940
Section 60. Section 63N-1a-303.2 is enacted to read:
3941
63N-1a-303.2 (Effective 05/07/25). Coordination of future Office of Housing and
3942
Community Planning.
3943
(1) In addition to the duties described in Section 63N-1a-204, the chief executive officer
3944
shall coordinate with the following in order to create a plan to consolidate the Division
3945
of Housing and Community Development into the office by July 1, 2026:
3946
(a) the governor, or the governor's designee;
3947
(b) the president of the Senate, or the president's designee;
3948
(c) the speaker of the House of Representatives, or the speaker's designee;
3949
(d) the executive director of the Department of Workforce Services;
3950
(e) the director of the Division of Finance; and
3951
(f) the chairs of the Commission on Housing Affordability, created in Section
3952
35A-8-2202.
3953
(2) In coordinating with the individuals and entities described in Subsection (1), the chief
3954
executive officer shall provide regular written updates, no less frequently than monthly,
3955
to:
3956
(a) the Economic Development and Workforce Services Interim Committee;
3957
(b) the Political Subdivisions Interim Committee;
3958
(c) the Economic and Community Development Appropriations Subcommittee; and
3959
(d) the board.
3960
(3) The chief executive officer may hire a director for the Office of Housing and
3961
Community Planning and the director may assist in the process described in Subsections
3962
(1) and (2).
3963
Section 61. Section 63N-1a-306 is amended to read:
3964
63N-1a-306 (Effective 05/07/25). Annual report -- Content -- Format.
3965
(1) The office shall prepare and submit to the governor and the Legislature, by October 1 of
3966
each year, an annual written report of the operations, activities, programs, and services
3967
of the office, including the divisions, sections, boards, commissions, councils, and
3968
committees established under this title, for the preceding fiscal year.
3969
(2) For each operation, activity, program, or service provided by the office, the annual
3970
report shall include:
3971
(a) a description of the operation, activity, program, or service;
3972
(b) data and metrics:
3973
(i) selected and used by the office to measure progress, performance, effectiveness,
- 117 - S.B. 337 02-26 10:50
3974
and scope of the operation, activity, program, or service, including summary data;
3975
and
3976
(ii) that are consistent and comparable for each state operation, activity, program, or
3977
service that primarily involves employment training or placement as determined
3978
by the [executive directors of the office] chief executive officer, the executive
3979
director of the Department of Workforce Services, and the executive director of
3980
the Governor's Office of Planning and Budget;
3981
(c) budget data, including the amount and source of funding, expenses, and allocation of
3982
full-time employees for the operation, activity, program, or service;
3983
(d) historical data from previous years for comparison with data reported under
3984
Subsections (2)(b) and (c);
3985
(e) goals, challenges, and achievements related to the operation, activity, program, or
3986
service;
3987
(f) relevant federal and state statutory references and requirements;
3988
(g) contact information of officials knowledgeable and responsible for each operation,
3989
activity, program, or service; and
3990
(h) other information determined by the office that:
3991
(i) may be needed, useful, or of historical significance; or
3992
(ii) promotes accountability and transparency for each operation, activity, program,
3993
or service with the public and elected officials.
3994
(3) The annual report shall be designed to provide clear, accurate, and accessible
3995
information to the public, the governor, and the Legislature.
3996
(4) The office shall:
3997
(a) submit the annual report in accordance with Section 68-3-14;
3998
(b) make the annual report, and previous annual reports, accessible to the public by
3999
placing a link to the reports on the office's website; and
4000
(c) provide the data and metrics described in Subsection (2)(b) to the talent board.
4001
Section 62. Section 63N-1a-501 is enacted to read:
4002
Part 5. Economic Opportunity Coordinating Council
4003
63N-1a-501 (Effective 05/07/25). Creation of Economic Opportunity
4004
Coordinating Council.
4005
(1) There is created the Economic Opportunity Coordinating Council.
4006
(2) The council consists of:
4007
(a) the governor, or the governor's designee, who shall be the chair of the council;
- 118 - 02-26 10:50 S.B. 337
4008
(b) the president of the Senate or the president's designee;
4009
(c) the speaker of the House of Representatives or the speaker's designee;
4010
(d) the chief executive officer;
4011
(e) a member appointed by the Military Installation Development Authority board
4012
created in Section 63H-1-301, to represent the interests of the Military Installation
4013
Development Authority;
4014
(f) a member appointed by the Point of the Mountain State Land Authority board created
4015
in Section 11-59-301, to represent the interests of the Point of the Mountain State
4016
Land Authority;
4017
(g) a member appointed by the Utah Inland Port Authority board created in Section
4018
11-58-301, to represent the interests of the Utah Inland Port Authority;
4019
(h) a member appointed by the Utah Fairpark Area Investment and Restoration District
4020
board created in Section 11-70-301, to represent the interests of the Utah Fairpark
4021
Area Investment and Restoration District; and
4022
(i) a member appointed by the Beehive Development Agency board created in Section
4023
11-71-301, to represent the interests of the Beehive Development Agency.
4024
(3)(a) A majority of council members, not including a vacancy, constitutes a quorum for
4025
the purpose of conducting council business.
4026
(b) The action of a majority of a quorum constitutes the action of the council.
4027
(4) The office shall provide office space and administrative staff support for the council.
4028
(5)(a) A council member may not receive compensation or benefits for the member's
4029
service on the council, but may receive per diem and travel expenses in accordance
4030
with:
4031
(i) Sections 63A-3-106 and 63A-3-107; and
4032
(ii) rules made by the Division of Finance in accordance with Sections 63A-3-106
4033
and 63A-3-107.
4034
(b) Compensation and expenses of a council member who is a legislator are governed by
4035
Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and
4036
Expenses.
4037
Section 63. Section 63N-1a-502 is enacted to read:
4038
63N-1a-502 (Effective 05/07/25). Coordinating council duties.
4039
(1) The council shall:
4040
(a) establish strategic economic development objectives for the state, including
4041
establishing broad objectives;
- 119 - S.B. 337 02-26 10:50
4042
(b) provide recommendations to the commissioner regarding efforts to achieve the
4043
strategic economic development objectives;
4044
(c) make recommendations to the Legislature;
4045
(d) unify and coordinate economic development projects that have regional or statewide
4046
impact;
4047
(e) at least once every five years, recommend to the commissioner industries or groups
4048
of industries to target for economic development in the state;
4049
(f) gather input from organizations contributing to economic development in the state,
4050
including economic opportunity agencies; and
4051
(g) receive an annual report from the board.
4052
(2) The council may establish working groups as appropriate to assist and advise the
4053
council.
4054
Section 64. Section 63N-2-103 is amended to read:
4055
63N-2-103 (Effective 05/07/25). Definitions.
4056
As used in this part:
4057
(1)(a) "Business entity" means a person that enters into a written agreement with the
4058
office to initiate a new commercial project in Utah that will qualify the person to
4059
receive a tax credit under Section 59-7-614.2 or 59-10-1107.
4060
(b) With respect to a tax credit authorized by the office in accordance with Subsection
4061
63N-2-104.3(2), "business entity" includes a nonprofit entity.
4062
(2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
4063
industrial, manufacturing, business park, research park, or other appropriate business
4064
related use in a general plan that contemplates future growth.
4065
(3) "Development zone" means an economic development zone created under Section
4066
63N-2-104.
4067
(4) "Local government entity" means a county, city, or town.
4068
(5) "New commercial project" means an economic development opportunity that:
4069
(a) involves a targeted industry;
4070
(b) is located within:
4071
(i) a county of the third, fourth, fifth, or sixth class; or
4072
(ii) a municipality that has a population of 10,000 or less and the municipality is
4073
located within a county of the second class; or
4074
(c) involves an economic development opportunity that the [commission] office
4075
determines to be eligible for a tax credit under this part.
- 120 - 02-26 10:50 S.B. 337
4076
(6) "Remote work opportunity" means a new commercial project that:
4077
(a) does not require a physical office in the state where employees associated with the
4078
new commercial project are required to work; and
4079
(b) requires employees associated with the new commercial project to:
4080
(i) work remotely from a location within the state; and
4081
(ii) maintain residency in the state.
4082
(7) "Significant capital investment" means an investment in capital or fixed assets, which
4083
may include real property, personal property, and other fixtures related to a new
4084
commercial project that represents an expansion of existing operations in the state or
4085
that increases the business entity's existing workforce in the state.
4086
(8) "Tax credit" means an economic development tax credit created by Section 59-7-614.2
4087
or 59-10-1107.
4088
(9) "Tax credit amount" means the amount the office lists as a tax credit on a tax credit
4089
certificate for a taxable year.
4090
(10) "Tax credit certificate" means a certificate issued by the office that:
4091
(a) lists the name of the business entity to which the office authorizes a tax credit;
4092
(b) lists the business entity's taxpayer identification number;
4093
(c) lists the amount of tax credit that the office authorizes the business entity for the
4094
taxable year; and
4095
(d) may include other information as determined by the office.
4096
(11) "Written agreement" means a written agreement entered into between the office and a
4097
business entity under Section 63N-2-104.2.
4098
Section 65. Section 63N-2-104.2 is amended to read:
4099
63N-2-104.2 (Effective 05/07/25). Written agreement -- Contents -- Grounds for
4100
amendment or termination.
4101
(1) If the office determines that a business entity is eligible for a tax credit under Section
4102
63N-2-104.1, the office may enter into a written agreement with the business entity that:
4103
(a) establishes performance benchmarks for the business entity to claim a tax credit,
4104
including any minimum wage requirements;
4105
(b) specifies the maximum amount of tax credit that the business entity may be
4106
authorized for a taxable year and over the life of the new commercial project, subject
4107
to the limitations in Section 63N-2-104.3;
4108
(c) establishes the length of time the business entity may claim a tax credit;
4109
(d) requires the business entity to retain records supporting a claim for a tax credit for at
- 121 - S.B. 337 02-26 10:50
4110
least four years after the business entity claims the tax credit;
4111
(e) requires the business entity to submit to audits for verification of any tax credit
4112
claimed; and
4113
(f) requires the business entity, in order to claim a tax credit, to meet the requirements of
4114
Section 63N-2-105.
4115
(2) In establishing the terms of a written agreement, including the duration and amount of
4116
tax credit that the business entity may be authorized to receive, the office shall:
4117
(a) authorize the tax credit in a manner that provides the most effective incentive for the
4118
new commercial project; and
4119
(b) consider the following factors:
4120
(i) whether the new commercial project provides vital or specialized support to
4121
supply chains;
4122
(ii) whether the new commercial project provides an innovative product, technology,
4123
or service;
4124
(iii) the number and wages of new incremental jobs associated with the new
4125
commercial project;
4126
(iv) the amount of financial support provided by local government entities for the
4127
new commercial project;
4128
(v) the amount of capital expenditures associated with the new commercial project;
4129
(vi) whether the new commercial project returns jobs transferred overseas;
4130
(vii) the rate of unemployment in the county in which the new commercial project is
4131
located;
4132
(viii) whether the new commercial project creates a remote work opportunity;
4133
(ix) whether the new commercial project is located in a development zone created by
4134
a local government entity as described in Subsection 63N-2-104(2);
4135
(x) whether the business entity commits to hiring Utah workers for the new
4136
commercial project;
4137
(xi) whether the business entity adopts a corporate citizenry plan or supports
4138
initiatives in the state that advance education, gender equality, diversity and
4139
inclusion, work-life balance, environmental or social good, or other similar causes;
4140
(xii) whether the business entity's headquarters are located within the state;
4141
(xiii) the likelihood of other business entities relocating to another state as a result of
4142
the new commercial project;
4143
(xiv) the necessity of the tax credit for the business entity's expansion in the state or
- 122 - 02-26 10:50 S.B. 337
4144
relocation from another state;
4145
(xv) whether the proposed new commercial project might reasonably be expected to
4146
occur in the foreseeable future without the tax credit; and
4147
(xvi) the location and impact of the new commercial project on existing and planned
4148
transportation facilities, existing and planned housing, including affordable
4149
housing, and public infrastructure[; and] .
4150
[(c) consult with the GOEO board.]
4151
(3) In determining the amount of tax credit that a business entity may be authorized to
4152
receive under a written agreement, the office may:
4153
(a) authorize a higher or optimized amount of tax credit for a new commercial project
4154
located within a development zone created by a local government entity as described
4155
in Subsection 63N-2-104(2); and
4156
(b) establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
4157
Rulemaking Act, a process by which the office closely approximates the amount of
4158
taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for
4159
a capital project.
4160
(4) If the office identifies any of the following events after entering into a written
4161
agreement with a business entity, the office and the business entity shall amend, or the
4162
office may terminate, the written agreement:
4163
(a) a change in the business entity's organization resulting from a merger with or
4164
acquisition of another entity located in the state;
4165
(b) a material increase in the business entity's retail operations that results in new state
4166
revenue not subject to the incentive; or
4167
(c) an increase in the business entity's operations that:
4168
(i) is outside the scope of the written agreement or outside the boundaries of a
4169
development zone; and
4170
(ii) results in new state revenue not subject to the incentive.
4171
Section 66. Section 63N-2-104.3 is amended to read:
4172
63N-2-104.3 (Effective 05/07/25). Limitations on tax credit amount.
4173
(1) Except as provided in Subsection (2)(a), for a new commercial project that is located
4174
within the boundary of a county of the first or second class, the office may not authorize
4175
a tax credit that exceeds:
4176
(a) 50% of the new state revenues from the new commercial project in any given year;
4177
(b) 30% of the new state revenues from the new commercial project over a period of up
- 123 - S.B. 337 02-26 10:50
4178
to 20 years; or
4179
(c) 35% of the new state revenues from the new commercial project over a period of up
4180
to 20 years, if:
4181
(i) the new commercial project brings 2,500 or more new incremental jobs to the
4182
state;
4183
(ii) the amount of capital expenditures associated with the new commercial project is
4184
$1,000,000,000 or more; and
4185
(iii) the [commission] council approves the tax credit.
4186
(2) If the office authorizes a tax credit for a new commercial project located within the
4187
boundary of:
4188
(a) a municipality with a population of 10,000 or less located within a county of the
4189
second class and that is experiencing economic hardship as determined by the office,
4190
the office may authorize a tax credit of up to 50% of new state revenues from the new
4191
commercial project over a period of up to 20 years;
4192
(b) a county of the third class, the office may authorize a tax credit of up to 50% of new
4193
state revenues from the new commercial project over a period of up to 20 years; and
4194
(c) a county of the fourth, fifth, or sixth class, the office may authorize a tax credit of
4195
50% of new state revenues from the new commercial project over a period of up to
4196
20 years.
4197
Section 67. Section 63N-2-504 is amended to read:
4198
63N-2-504 (Effective 05/07/25). Independent review committee.
4199
(1) In accordance with rules adopted by the office under Section 63N-2-509, the GOEO
4200
board shall establish a separate, independent review committee to provide
4201
recommendations to the office regarding the terms and conditions of an agreement and
4202
to consult with the office as provided in this part or in rule.
4203
(2) The review committee shall consist of:
4204
(a) one member appointed by the [executive director] chief executive officer or the chief
4205
executive officer's designee to represent the office;
4206
(b) two members appointed by the mayor or chief executive of the county in which the
4207
qualified hotel is located or proposed to be located;
4208
(c) two members appointed by:
4209
(i) the mayor of the municipality in which the qualified hotel is located or proposed
4210
to be located, if the qualified hotel is located or proposed to be located within the
4211
boundary of a municipality; or
- 124 - 02-26 10:50 S.B. 337
4212
(ii) the mayor or chief executive of the county in which the qualified hotel is located
4213
or proposed to be located, in addition to the two members appointed under
4214
Subsection (2)(b), if the qualified hotel is located or proposed to be located
4215
outside the boundary of a municipality;
4216
(d) an individual representing the hotel industry, appointed by the Utah Hotel and
4217
Lodging Association;
4218
(e) an individual representing the commercial development and construction industry,
4219
appointed by the president or chief executive officer of the local chamber of
4220
commerce; and
4221
(f) an individual representing the convention and meeting planners industry, appointed
4222
by the president or chief executive officer of the local convention and visitors bureau[;
4223
and] .
4224
[(g) one member appointed by the GOEO board.]
4225
(3)(a) A member serves an indeterminate term and may be removed from the review
4226
committee by the appointing authority at any time.
4227
(b) A vacancy may be filled in the same manner as an appointment under Subsection (2).
4228
(4) A member of the review committee may not be paid for serving on the review
4229
committee and may not receive per diem or expense reimbursement.
4230
(5) The office shall provide any necessary staff support to the review committee.
4231
Section 68. Section 63N-2-808 is amended to read:
4232
63N-2-808 (Effective 05/07/25). Agreements between office and tax credit
4233
applicant and life science establishment -- Tax credit certificate.
4234
(1)(a) The office[, with advice from the GOEO board,] may enter into an agreement to
4235
grant a tax credit certificate to a tax credit applicant selected in accordance with this
4236
part, if the tax credit applicant meets the conditions established in the agreement and
4237
under this part.
4238
(b) The agreement described in Subsection (1)(a) shall:
4239
(i) detail the requirements that the tax credit applicant shall meet prior to receiving a
4240
tax credit certificate;
4241
(ii) require the tax credit certificate recipient to retain records supporting a claim for a
4242
tax credit for at least four years after the tax credit certificate recipient claims a tax
4243
credit under this part; and
4244
(iii) require the tax credit certificate recipient to submit to audits for verification of
4245
the tax credit claimed, including audits by the office and by the State Tax
- 125 - S.B. 337 02-26 10:50
4246
Commission.
4247
(2)(a) The office[, with advice from the GOEO board,] shall enter into an agreement
4248
with the life science establishment in which the tax credit applicant invested for
4249
purposes of claiming a tax credit.
4250
(b) The agreement described in Subsection (2)(a):
4251
(i) shall provide the office with a document that expressly and directly authorizes the
4252
State Tax Commission to disclose to the office the life science establishment's tax
4253
returns and other information that would otherwise be subject to confidentiality
4254
under Section 59-1-403 or Section 6103, Internal Revenue Code;
4255
(ii) shall authorize the Department of Workforce Services to disclose to the office the
4256
employment data that the life science establishment submits to the Department of
4257
Workforce Services;
4258
(iii) shall require the life science establishment to provide the office with the life
4259
science establishment's current capitalization tables; and
4260
(iv) may require the life science establishment to provide the office with other data
4261
that:
4262
(A) ensure compliance with the requirements of this chapter; and
4263
(B) demonstrate the economic impact of the tax credit applicant's investment in
4264
the life science establishment.
4265
Section 69. Section 63N-3-102 is amended to read:
4266
63N-3-102 (Effective 05/07/25). Definitions.
4267
As used in this part:
4268
(1) "Administrator" means the [executive director] chief executive officer or the [executive
4269
director's] chief executive officer's designee.
4270
(2) "Applicant" means an individual, for profit business entity, nonprofit, corporation,
4271
partnership, unincorporated association, government entity, executive branch department
4272
or division of a department, a political subdivision, a state institution of higher
4273
education, or any other administrative unit of the state.
4274
(3) "Economic opportunities" means business situations or community circumstances which
4275
lend themselves to the furtherance of the economic interests of the state by providing a
4276
catalyst or stimulus to the growth or retention, or both, of commerce and industry in the
4277
state, including retention of companies whose relocation outside the state would have a
4278
significant detrimental economic impact on the state as a whole, regions of the state, or
4279
specific components of the state.
- 126 - 02-26 10:50 S.B. 337
4280
(4) "Restricted Account" means the restricted account known as the Industrial Assistance
4281
Account created in Section 63N-3-103.
4282
(5) "Talent development grant" means a grant awarded under Section 63N-3-112.
4283
Section 70. Section 63N-3-403 is amended to read:
4284
63N-3-403 (Effective 05/07/25). Transient Room Tax Fund -- Source of revenues
4285
-- Interest -- Expenditure or pledge of revenues.
4286
(1) There is created a fiduciary fund held by the state in a purely custodial capacity known
4287
as the Transient Room Tax Fund.
4288
(2)(a) The fund shall be funded by the portion of the sales and use tax described in
4289
Subsection 59-12-301(2).
4290
(b)(i) The fund shall earn interest.
4291
(ii) Any interest earned on fund money shall be deposited into the fund.
4292
(3)(a) Subject to Subsection (3)(b), the [executive director] chief executive officer or the
4293
chief executive officer's designee shall expend or pledge the money deposited into
4294
the fund:
4295
(i) to mitigate the impacts of traffic and parking relating to a convention facility
4296
within a county of the first class;
4297
(ii) for a purpose listed in Section 17-31-2, except that any requirements in Section
4298
17-31-2 for the expenditure of money do not apply; or
4299
(iii) for a combination of Subsections (3)(a)(i) and (ii).
4300
(b) The [executive director] chief executive officer or the chief executive officer's
4301
designee may not expend more than $20,000,000 in total to mitigate the impacts of
4302
traffic and parking relating to a convention facility within a county of the first class.
4303
Section 71. Section 63N-3-605 is amended to read:
4304
63N-3-605 (Effective 05/07/25). Housing and Transit Reinvestment Zone
4305
Committee -- Creation.
4306
(1) For any housing and transit reinvestment zone proposed under this part, or for a first
4307
home investment zone proposed in accordance with Part 16, First Home Investment
4308
Zone Act, there is created a housing and transit reinvestment zone committee with
4309
membership described in Subsection (2).
4310
(2) Each housing and transit reinvestment zone committee shall consist of the following
4311
members:
4312
(a) one representative from the Governor's Office of Economic Opportunity, designated
4313
by the [executive director of the Governor's Office of Economic Opportunity] chief
- 127 - S.B. 337 02-26 10:50
4314
executive officer or the chief executive officer's designee;
4315
(b) one representative from each municipality that is a party to the proposed housing and
4316
transit reinvestment zone or first home investment zone, designated by the chief
4317
executive officer of each respective municipality;
4318
(c) a member of the Transportation Commission created in Section 72-1-301;
4319
(d) a member of the board of trustees of a large public transit district;
4320
(e) one individual from the Office of the State Treasurer, designated by the state
4321
treasurer;
4322
(f) two members designated by the president of the Senate;
4323
(g) two members designated by the speaker of the House of Representatives;
4324
(h) one member designated by the chief executive officer of each county affected by the
4325
housing and transit reinvestment zone or first home investment zone;
4326
(i) two representatives designated by the school superintendent from the school district
4327
affected by the housing and transit reinvestment zone or first home investment zone;
4328
and
4329
(j) one representative, representing the largest participating local taxing entity, after the
4330
municipality, county, and school district.
4331
(3) The individual designated by the Governor's Office of Economic Opportunity as
4332
described in Subsection (2)(a) shall serve as chair of the housing and transit
4333
reinvestment zone committee.
4334
(4)(a) A majority of the members of the housing and transit reinvestment zone
4335
committee constitutes a quorum of the housing and transit reinvestment zone
4336
committee.
4337
(b) An action by a majority of a quorum of the housing and transit reinvestment zone
4338
committee is an action of the housing and transit reinvestment zone committee.
4339
(5)(a) After the Governor's Office of Economic Opportunity receives the results of the
4340
analysis described in Section 63N-3-604, and after the Governor's Office of
4341
Economic Opportunity has received a request from the submitting municipality or
4342
public transit county to submit the housing and transit reinvestment zone proposal to
4343
the housing and transit reinvestment zone committee, the Governor's Office of
4344
Economic Opportunity shall notify each of the entities described in Subsection (2) of
4345
the formation of the housing and transit reinvestment zone committee.
4346
(b) For a first home investment zone, the housing and transit reinvestment zone
4347
committee shall follow the procedures described in Section 63N-3-1604.
- 128 - 02-26 10:50 S.B. 337
4348
(6)(a) The chair of the housing and transit reinvestment zone committee shall convene a
4349
public meeting to consider the proposed housing and transit reinvestment zone.
4350
(b) A meeting of the housing and transit reinvestment zone committee is subject to Title
4351
52, Chapter 4, Open and Public Meetings Act.
4352
(7)(a) The proposing municipality or public transit county shall present the housing and
4353
transit reinvestment zone proposal to the housing and transit reinvestment zone
4354
committee in a public meeting.
4355
(b) The housing and transit reinvestment zone committee shall:
4356
(i) evaluate and verify whether the elements of a housing and transit reinvestment
4357
zone described in Subsections 63N-3-603(2) and (4) have been met; and
4358
(ii) evaluate the proposed housing and transit reinvestment zone relative to the
4359
analysis described in Subsection 63N-3-604(2).
4360
(8)(a) Subject to Subsection (8)(b), the housing and transit reinvestment zone committee
4361
may:
4362
(i) request changes to the housing and transit reinvestment zone proposal based on
4363
the analysis, characteristics, and criteria described in Section 63N-3-604; or
4364
(ii) vote to approve or deny the proposal.
4365
(b) Before the housing and transit reinvestment zone committee may approve the
4366
housing and transit reinvestment zone proposal, the municipality or public transit
4367
county proposing the housing and transit reinvestment zone shall ensure that the area
4368
of the proposed housing and transit reinvestment zone is zoned in such a manner to
4369
accommodate the requirements of a housing and transit reinvestment zone described
4370
in this section and the proposed development.
4371
(9) If a housing and transit reinvestment zone is approved by the committee:
4372
(a) the proposed housing and transit reinvestment zone is established according to the
4373
terms of the housing and transit reinvestment zone proposal;
4374
(b) affected local taxing entities are required to participate according to the terms of the
4375
housing and transit reinvestment zone proposal; and
4376
(c) each affected taxing entity is required to participate at the same rate[ ].
4377
(10) A housing and transit reinvestment zone proposal may be amended by following the
4378
same procedure as approving a housing and transit reinvestment zone proposal.
4379
Section 72. Section 63N-3-801 is amended to read:
4380
63N-3-801 (Effective 05/07/25). Creation and administration.
4381
(1) There is created an enterprise fund known as the "State Small Business Credit Initiative
- 129 - S.B. 337 02-26 10:50
4382
Program Fund" administered by the office.
4383
(2) The [executive director] chief executive officer or the [executive director's] chief
4384
executive officer's designee is the administrator of the fund.
4385
(3) Revenues deposited into the fund shall consist of:
4386
(a) grants, pay backs, bonuses, entitlements, and other money received from the federal
4387
government to implement the State Small Business Credit Initiative; and
4388
(b) transfers, grants, gifts, bequests, and other money made available from any source to
4389
implement this part.
4390
(4)(a) The state treasurer shall invest the money in the fund according to the procedures
4391
and requirements of Title 51, Chapter 7, State Money Management Act.
4392
(b) Interest and other earnings derived from the fund money shall be deposited in the
4393
fund.
4394
(5) The office may use fund money for administration of the fund.
4395
Section 73. Section 63N-3-1102 is amended to read:
4396
63N-3-1102 (Effective 05/07/25). Manufacturing Modernization Grant Program
4397
-- Creation -- Purpose -- Requirements -- Rulemaking -- Report.
4398
(1)(a) There is created the Manufacturing Modernization Grant Program to be
4399
administered by the office.
4400
(b) The purpose of the program is to award grants to existing Utah businesses to
4401
establish, relocate, retain, or develop manufacturing industry in the state and lessen
4402
dependence on manufacturing overseas.
4403
(2)(a) An entity that submits a proposal for a grant to the office shall include details in
4404
the proposal regarding:
4405
(i) the entity's plan to use the grant to fulfill the purpose described in Subsection
4406
(1)(b);
4407
(ii) any plan to use funding sources in addition to a grant for the proposal; and
4408
(iii) any existing or planned partnerships between the entity and another individual or
4409
entity to implement the proposal.
4410
(b) In evaluating a proposal for a grant, the office shall consider:
4411
(i) the likelihood the proposal will accomplish the purpose described in Subsection
4412
(1)(b);
4413
(ii) the extent to which any additional funding sources or existing or planned
4414
partnerships will benefit the proposal; and
4415
(iii) the viability and sustainability of the proposal.
- 130 - 02-26 10:50 S.B. 337
4416
(c) In determining a grant award, the office[:]
4417
[(i) may consult with the GOEO board; and]
4418
[(ii)] may prioritize a targeted industry or an entity with fewer than 250 employees.
4419
(3) Before receiving the grant, a grant recipient shall enter into a written agreement with the
4420
office that specifies:
4421
(a) the grant amount;
4422
(b) the time period and structure for distribution of the grant, including any terms and
4423
conditions the recipient is required to meet to receive a distribution; and
4424
(c) the expenses for which the recipient may use the grant, including:
4425
(i) acquisition of manufacturing equipment;
4426
(ii) production, design, or engineering costs;
4427
(iii) specialized employee training;
4428
(iv) technology upgrades; or
4429
(v) provision of a grant to another individual or entity for the expenses described in
4430
Subsections (3)(c)(i) through (iv) or to otherwise fulfill the recipient's proposal.
4431
(4) Subject to Subsection (2), the office may, in accordance with Title 63G, Chapter 3, Utah
4432
Administrative Rulemaking Act, make rules to establish:
4433
(a) the form and process for submitting a proposal to the office for a grant;
4434
(b) the entities that are eligible to apply for a grant;
4435
(c) the method and formula for determining a grant amount; and
4436
(d) the reporting requirements for a grant recipient.
4437
(5) On or before October 1 of each year, the office shall provide a written report to the
4438
Economic Development and Workforce Services Interim Committee regarding:
4439
(a) each grant awarded; and
4440
(b) the economic impact of each grant.
4441
Section 74. Section 63N-4-104 is amended to read:
4442
63N-4-104 (Effective 05/07/25). Duties.
4443
(1) The Center for Rural Development shall:
4444
(a) work to enhance the capacity of the office to address rural economic development,
4445
planning, and leadership training challenges and opportunities by establishing
4446
partnerships and positive working relationships with appropriate public and private
4447
sector entities, individuals, and institutions;
4448
(b) work with the [GOEO board] chief executive officer to coordinate and focus
4449
available resources in ways that address the economic development, planning, and
- 131 - S.B. 337 02-26 10:50
4450
leadership training challenges and priorities in rural Utah;
4451
(c) assist in administering the Rural Opportunity Program created in Section 63N-4-802;
4452
and
4453
(d) in accordance with economic development and planning policies set by state
4454
government, coordinate relations between:
4455
(i) the state;
4456
(ii) rural governments;
4457
(iii) other public and private groups engaged in rural economic planning and
4458
development; and
4459
(iv) federal agencies.
4460
(2) The Center for Rural Development may, in accordance with Title 63G, Chapter 3, Utah
4461
Administrative Rulemaking Act, make rules necessary to carry out its duties.
4462
Section 75. Section 63N-4-105 is amended to read:
4463
63N-4-105 (Effective 05/07/25). Program manager.
4464
(1) The [executive director] chief executive officer may appoint a director for the Center for
4465
Rural Development with the approval of the governor.
4466
(2) The director of the Center for Rural Development shall be a person knowledgeable in
4467
the field of rural economic development and planning and experienced in administration.
4468
(3) Upon change of the [executive director] chief executive officer, the director of the
4469
Center for Rural Development may not be dismissed without cause for at least 180 days.
4470
Section 76. Section 63N-4-504 is amended to read:
4471
63N-4-504 (Effective 05/07/25). Requirements for awarding a working hubs
4472
grant.
4473
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4474
office shall make rules establishing the eligibility and reporting criteria for an entity to
4475
receive a grant under this part, including:
4476
(a) the form and process of submitting an application to the office for a grant;
4477
(b) which entities are eligible to apply for a grant;
4478
(c) the method and formula for determining grant amounts; and
4479
(d) the reporting requirements of grant recipients.
4480
(2) In determining the award of a grant, the office may prioritize projects:
4481
(a) that will serve underprivileged or underserved communities, including communities
4482
with high unemployment or low median incomes;
4483
(b) where an applicant demonstrates comprehensive planning of the project but has
- 132 - 02-26 10:50 S.B. 337
4484
limited access to financial resources, including financial resources from local or
4485
county government; and
4486
(c) that maximize economic development opportunities in collaboration with the
4487
economic development needs or plans of an educational institution, a county, and a
4488
municipality.
4489
(3) Subject to legislative appropriation, a grant may only be awarded by the [executive
4490
director] chief executive officer or the chief executive officer's designee.
4491
(4) A grant may only be awarded under this part:
4492
(a) if the grant recipient agrees to provide any combination of funds, land, buildings, or
4493
in-kind work in an amount equal to at least 25% of the grant;
4494
(b) if the grant recipient agrees not to use grant money for the ongoing operation or
4495
maintenance of a coworking and innovation center; and
4496
(c) in an amount no more than $500,000 to a grant applicant.
4497
Section 77. Section 63N-4-804 is amended to read:
4498
63N-4-804 (Effective 05/07/25). Rural Opportunity Advisory Committee.
4499
(1) There is created within the office the Rural Opportunity Advisory Committee.
4500
(2) The advisory committee shall be composed of seven members appointed by the [
4501
executive director] chief executive officer, at least five of whom shall reside in a rural
4502
county.
4503
(3) The advisory committee shall advise and make recommendations to the office regarding
4504
the awarding of grants and loans under the Rural Opportunity Program.
4505
(4)(a) Subject to Subsection (4)(b), each member of the advisory committee shall be
4506
appointed for a four-year term unless a member is appointed to complete an
4507
unexpired term.
4508
(b) The [executive director] chief executive officer may adjust the length of term at the
4509
time of appointment or reappointment so that approximately half of the advisory
4510
committee is appointed every two years.
4511
(5) The advisory committee shall annually elect a chair from among the advisory
4512
committee's members.
4513
(6) A majority of the advisory committee constitutes a quorum for the purpose of
4514
conducting advisory committee business and the action of a majority of a quorum
4515
constitutes the action of the advisory committee.
4516
(7) The office shall provide staff support for the advisory committee.
4517
(8) A member may not receive compensation or benefits for the member's service, but may
- 133 - S.B. 337 02-26 10:50
4518
receive per diem and travel expenses in accordance with:
4519
(a) Section 63A-3-106;
4520
(b) Section 63A-3-107; and
4521
(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
4522
63A-3-107.
4523
Section 78. Section 63N-7-102 is amended to read:
4524
63N-7-102 (Effective 05/07/25). Utah Office of Tourism created -- Appointment
4525
of managing director -- Responsibilities of tourism office.
4526
(1) There is created within GOEO the Utah Office of Tourism.
4527
(2)(a) The [executive director] chief executive officer shall appoint a managing director
4528
of the tourism office.
4529
(b) The managing director may, with the approval of the [executive director] chief
4530
executive officer, appoint staff.
4531
(3) The tourism office shall:
4532
(a) be the tourism development authority of the state;
4533
(b) develop a tourism advertising, marketing, branding, destination development, and
4534
destination management program for the state;
4535
(c) receive approval from the board under Subsection 63N-7-202(1)(a) before
4536
implementing the program described in Subsection (3)(b);
4537
(d) develop a plan to increase the economic contribution by tourists visiting the state;
4538
(e) plan and conduct a program of information, advertising, and publicity relating to the
4539
recreational, scenic, historic, cultural, and culinary tourist attractions, amenities, and
4540
advantages of the state at large;
4541
(f) encourage and assist in the coordination of the activities of persons, firms,
4542
associations, corporations, travel regions, counties, and governmental agencies
4543
engaged in publicizing, developing, and promoting the tourist attractions, amenities,
4544
and advantages of the state;
4545
(g) conduct a regular and ongoing research program to identify statewide economic
4546
trends and conditions in the tourism sector of the economy; and
4547
(h) ensure that any plan or program developed under this Subsection (3) addresses, but
4548
not be limited to, the following policies:
4549
(i) enhancing the state's image;
4550
(ii) promoting the state as a year-round destination;
4551
(iii) encouraging expenditures by visitors to the state; and
- 134 - 02-26 10:50 S.B. 337
4552
(iv) expanding the markets where the state is promoted.
4553
Section 79. Section 63N-7-103 is amended to read:
4554
63N-7-103 (Effective 05/07/25). Annual report.
4555
The [executive director ] chief executive officer or chief executive officer's designee
4556
shall include, in the annual written report described in Section 63N-1a-306, a report from the
4557
managing director on the activities of the tourism office, including information regarding the
4558
economic efficiency and results of the tourism advertising, marketing, branding, destination
4559
development, and destination management program developed under Section 63N-7-102.
4560
Section 80. Section 63N-13-101 is amended to read:
4561
63N-13-101 (Effective 05/07/25). Title -- Projects to assist companies to secure
4562
new business with federal, state, and local governments.
4563
(1) This chapter is known as "Procurement Programs."
4564
(2) The Legislature recognizes that:
4565
(a) many Utah companies provide products and services which are routinely procured by
4566
a myriad of governmental entities at all levels of government, but that attempting to
4567
understand and comply with the numerous certification, registration, proposal, and
4568
contract requirements associated with government procurement often raises
4569
significant barriers for those companies with no government contracting experience;
4570
(b) the costs associated with obtaining a government contract for products or services
4571
often prevent most small businesses from working in the governmental procurement
4572
market;
4573
(c) currently a majority of federal procurement opportunities are contracted to
4574
businesses located outside of the state;
4575
(d) the office currently administers programs and initiatives that help create and grow
4576
companies in Utah and recruit companies to Utah through the use of state employees,
4577
public-private partnerships, and contractual services; and
4578
(e) there exists a significant opportunity for Utah companies to secure new business with
4579
federal, state, and local governments.
4580
(3) The office, through [its executive director] the chief executive officer or chief executive
4581
officer's designee:
4582
(a) shall manage and direct the administration of state and federal programs and
4583
initiatives whose purpose is to procure federal, state, and local governmental
4584
contracts;
4585
(b) may require program accountability measures; and
- 135 - S.B. 337 02-26 10:50
4586
(c) may receive and distribute legislative appropriations and public and private grants for
4587
projects and programs that:
4588
(i) are focused on growing Utah companies and positively impacting statewide
4589
revenues by helping these companies secure new business with federal, state, and
4590
local governments;
4591
(ii) provide guidance to Utah companies interested in obtaining new business with
4592
federal, state, and local governmental entities;
4593
(iii) would facilitate marketing, business development, and expansion opportunities
4594
for Utah companies in cooperation with the office's APEX accelerator program
4595
and with public, nonprofit, or private sector partners such as local chambers of
4596
commerce, trade associations, or private contractors as determined by the office's
4597
director to successfully match Utah businesses with government procurement
4598
opportunities; and
4599
(iv) may include the following components:
4600
(A) recruitment, individualized consultation, and an introduction to government
4601
contracting;
4602
(B) specialized contractor training for companies located in Utah;
4603
(C) a Utah contractor matching program for government requirements;
4604
(D) experienced proposal and bid support; and
4605
(E) specialized support services.
4606
(4)(a) The office, through [its executive director] the chief executive officer or chief
4607
executive officer's designee, shall make any distribution referred to in Subsection (3)
4608
on a semiannual basis.
4609
(b) A recipient of money distributed under this section shall provide the office with a set
4610
of standard monthly reports, the content of which shall be determined by the office to
4611
include at least the following information:
4612
(i) consultive meetings with Utah companies;
4613
(ii) seminars or training meetings held;
4614
(iii) government contracts awarded to Utah companies;
4615
(iv) increased revenues generated by Utah companies from new government
4616
contracts;
4617
(v) jobs created;
4618
(vi) salary ranges of new jobs; and
4619
(vii) the value of contracts generated.
- 136 - 02-26 10:50 S.B. 337
4620
Section 81. Section 63N-16-102 is amended to read:
4621
63N-16-102 (Effective 05/07/25). Definitions.
4622
As used in this chapter:
4623
(1) "Advisory committee" means the General Regulatory Sandbox Program Advisory
4624
Committee created in Section 63N-16-104.
4625
(2) "Applicable agency" means a department or agency of the state that by law regulates a
4626
business activity and persons engaged in such business activity, including the issuance
4627
of licenses or other types of authorization, which the office determines would otherwise
4628
regulate a sandbox participant.
4629
(3) "Applicant" means a person that applies to participate in the regulatory sandbox.
4630
(4) "Blockchain technology" means the use of a digital database containing records of
4631
financial transactions, which can be simultaneously used and shared within a
4632
decentralized, publicly accessible network and can record transactions between two
4633
parties in a verifiable and permanent way.
4634
(5) "Consumer" means a person that purchases or otherwise enters into a transaction or
4635
agreement to receive an offering pursuant to a demonstration by a sandbox participant.
4636
(6) "Demonstrate" or "demonstration" means to temporarily provide an offering in
4637
accordance with the provisions of the regulatory sandbox program described in this
4638
chapter.
4639
(7) "Director" means the director of the Utah Office of Regulatory Relief created in Section
4640
63N-16-103.
4641
[(8) "Executive director" means the executive director of the Governor's Office of
4642
Economic Opportunity.]
4643
[(9)] (8) "Financial product or service" means:
4644
(a) a financial product or financial service that requires state licensure or registration; or
4645
(b) a financial product, financial service, or banking business that includes a business
4646
model, delivery mechanism, offering of deposit accounts, or element that may require
4647
a license or other authorization to act as a financial institution, enterprise, or other
4648
entity that is regulated by Title 7, Financial Institutions Act, or other related
4649
provisions.
4650
[(10)] (9) "Health, safety, and financial well-being" includes protecting against physical
4651
injury, property damage, or financial harm.
4652
[(11)] (10) "Innovation" means the use or incorporation of a new or existing idea, a new or
4653
emerging technology, or a new use of existing technology, including blockchain
- 137 - S.B. 337 02-26 10:50
4654
technology, to address a problem, provide a benefit, or otherwise offer a product,
4655
production method, or service.
4656
[(12)] (11) "Insurance product or service" means an insurance product or insurance service
4657
that requires state licensure, registration, or other authorization as regulated by Title
4658
31A, Insurance Code, including an insurance product or insurance service that includes a
4659
business model, delivery mechanism, or element that requires a license, registration, or
4660
other authorization to do an insurance business, act as an insurance producer or
4661
consultant, or engage in insurance adjusting as regulated by Title 31A, Insurance Code.
4662
[(13)] (12)(a) "Offering" means a product, production method, or service, including a
4663
financial product or service or an insurance product or service, that includes an
4664
innovation.
4665
(b) "Offering" does not include a product, production method, or service that is governed
4666
by Title 61, Chapter 1, Utah Uniform Securities Act.
4667
[(14)] (13) "Product" means a commercially distributed good that is:
4668
(a) tangible personal property;
4669
(b) the result of a production process; and
4670
(c) passed through the distribution channel before consumption.
4671
[(15)] (14) "Production" means the method or process of creating or obtaining a good, which
4672
may include assembling, breeding, capturing, collecting, extracting, fabricating,
4673
farming, fishing, gathering, growing, harvesting, hunting, manufacturing, mining,
4674
processing, raising, or trapping a good.
4675
[(16)] (15) "Regulatory relief office" means the Utah Office of Regulatory Relief created in
4676
Section 63N-16-103.
4677
[(17)] (16) "Regulatory sandbox" means the General Regulatory Sandbox Program created
4678
in Section 63N-16-201, which allows a person to temporarily demonstrate an offering
4679
under a waiver or suspension of one or more state laws or regulations.
4680
[(18)] (17) "Sandbox participant" means a person whose application to participate in the
4681
regulatory sandbox is approved in accordance with the provisions of this chapter.
4682
[(19)] (18) "Service" means any commercial activity, duty, or labor performed for another
4683
person.
4684
Section 82. Section 63N-16-103 is amended to read:
4685
63N-16-103 (Effective 05/07/25). Creation of regulatory relief office and
4686
appointment of director -- Responsibilities of regulatory relief office.
4687
(1) There is created within the Governor's Office of Economic Opportunity the Utah Office
- 138 - 02-26 10:50 S.B. 337
4688
of Regulatory Relief.
4689
(2)(a) The regulatory relief office shall be administered by a director.
4690
(b) The director shall report to the [executive director] chief executive officer or the [
4691
executive director's] chief executive officer's designee and may appoint staff subject
4692
to the approval of the [executive director] chief executive officer.
4693
(3) The regulatory relief office shall:
4694
(a) administer the provisions of this chapter;
4695
(b) administer the regulatory sandbox program; and
4696
(c) act as a liaison between private businesses and applicable agencies to identify state
4697
laws or regulations that could potentially be waived or suspended under the
4698
regulatory sandbox program, or amended.
4699
(4) The regulatory relief office may:
4700
(a) propose potential reciprocity agreements between states that use or are proposing to
4701
use similar programs to the regulatory sandbox; and
4702
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
4703
the provisions of this chapter, make rules regarding:
4704
(i) administering the regulatory sandbox, including making rules regarding the
4705
application process and the reporting requirements of sandbox participants; and
4706
(ii) cooperating and consulting with other agencies in the state that administer
4707
sandbox programs.
4708
Section 83. Section 63N-17-201 is amended to read:
4709
63N-17-201 (Effective 05/07/25). Utah Broadband Center -- Creation -- Director
4710
-- Duties.
4711
(1) There is created within the office the Utah Broadband Center.
4712
(2) The [executive director] chief executive officer shall appoint a director of the broadband
4713
center to oversee the operations of the broadband center.
4714
(3) The broadband center shall:
4715
(a) ensure that publicly funded broadband projects continue to be publicly accessible and
4716
provide a public benefit;
4717
(b) develop the statewide digital connectivity plan described in Section 63N-17-203;
4718
(c) carry out the duties described in Section 63N-17-202;
4719
(d) administer the Broadband Access Grant Program in accordance with Part 3,
4720
Broadband Access Grant Program; and
4721
(e) administer the Broadband Equity Access and Deployment Grant Program in
- 139 - S.B. 337 02-26 10:50
4722
accordance with Part 4, Broadband Equity Access and Deployment Program.
4723
(f) The broadband center shall ensure efficiency with respect to:
4724
(i) expenditure of funds; and
4725
(ii) avoiding duplication of efforts.
4726
(g) The broadband center shall consider administering broadband infrastructure funds in
4727
a manner that:
4728
(i) efficiently maximizes the leverage of federal funding;
4729
(ii) avoids the use of public funds for broadband facilities that duplicate existing
4730
broadband facilities that already meet or exceed federal standards; and
4731
(iii) accounts for the benefits and costs to the state of existing facilities, equipment,
4732
and services of public and private broadband providers.
4733
Section 84. Section 63N-22-101 is enacted to read:
4734
CHAPTER 22. OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT
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63N-22-101 (Effective 07/01/26). Office of Housing and Community
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Development.
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(1) There is created the Office of Housing and Community Development.
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(2) The chief executive officer may hire a director of the Office of Housing and Community
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Development.
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Section 85. Section 67-1-2 is amended to read:
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67-1-2 (Effective 05/07/25). Senate confirmation of gubernatorial nominees --
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Verification of nomination requirements -- Consultation on appointments -- Notification
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of anticipated vacancies.
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(1)(a) Except as provided in Subsection (3), at least 30 days before the day of an
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extraordinary session of the Senate to confirm a gubernatorial nominee, the governor
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shall send to each member of the Senate and to the Office of Legislative Research
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and General Counsel the following information for each nominee:
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(i) the nominee's name and biographical information, including a resume and
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curriculum vitae with personal contact information, including home address, email
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address, and telephone number, redacted, except that the governor shall send to
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the Office of Legislative Research and General Counsel the contact information
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for the nominee;
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(ii) a detailed list, with citations, of the legal requirements for the appointed position;
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(iii) a detailed list with supporting documents explaining how, and verifying that, the
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nominee meets each statutory and constitutional requirement for the appointed
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position;
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(iv) a written certification by the governor that the nominee satisfies all requirements
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for the appointment; and
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(v) public comment information collected in accordance with Section 63G-24-204.
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(b) This Subsection (1) does not apply to a judicial appointee.
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(2)(a) A majority of the president of the Senate, the Senate majority leader, and the
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Senate minority leader may waive the 30-day requirement described in Subsection (1)
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for a gubernatorial nominee other than a nominee for the following:
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(i) the executive director of a department;
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(ii) the [executive director] chief executive officer of the Governor's Office of
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Economic Opportunity;
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(iii) the executive director of the Labor Commission;
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(iv) a member of the State Tax Commission;
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(v) a member of the State Board of Education;
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(vi) a member of the Utah Board of Higher Education; or
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(vii) an individual:
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(A) whose appointment requires the advice and consent of the Senate; and
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(B) whom the governor designates as a member of the governor's cabinet.
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(b) The Senate shall hold a confirmation hearing for a nominee for an individual
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described in Subsection (2)(a).
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(3) The governor shall:
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(a) if the governor is aware of an upcoming vacancy in a position that requires Senate
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confirmation, provide notice of the upcoming vacancy to the president of the Senate,
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the Senate minority leader, and the Office of Legislative Research and General
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Counsel at least 30 days before the day on which the vacancy occurs; and
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(b) establish a process for government entities and other relevant organizations to
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provide input on gubernatorial appointments.
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(4) When the governor makes a judicial appointment, the governor shall immediately
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provide to the president of the Senate and the Office of Legislative Research and
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General Counsel:
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(a) the name of the judicial appointee; and
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(b) the judicial appointee's:
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(i) resume;
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(ii) complete file of all the application materials the governor received from the
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judicial nominating commission; and
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(iii) any other related documents, including any letters received by the governor
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about the appointee, unless the letter specifically directs that the letter may not be
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shared.
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(5) The governor shall inform the president of the Senate and the Office of Legislative
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Research and General Counsel of the number of letters withheld pursuant to Subsection
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(4)(b)(iii).
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(6)(a) Letters of inquiry submitted by any judge at the request of any judicial nominating
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commission are classified as private in accordance with Section 63G-2-302.
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(b) All other records received from the governor pursuant to this Subsection (6) may be
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classified as private in accordance with Section 63G-2-302.
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(7) The Senate shall consent or refuse to give the Senate's consent to a nomination or
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judicial appointment.
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Section 86. Repealer.
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This bill repeals:
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Section 63N-1a-201, Creation of commission.
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Section 63N-1a-202, Commission duties.
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Section 63N-1a-304, Executive director and the Public Service Commission.
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Section 63N-1a-401, Creation of Board of Economic Opportunity.
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Section 63N-1a-402, Board of Economic Opportunity duties and powers.
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Section 63N-1b-102, Subcommittees generally.
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Section 87. Effective Date.
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(1) Except as provided in Subsections (2) and (3), this bill takes effect May 7, 2025.
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(2) The actions affecting the following sections take effect on January 1, 2026:
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(a) Section 59-12-103Effective 01/01/26;
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(b) Section 59-12-104Effective 01/01/26;
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(c) Section 59-12-205Effective 01/01/26;
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(d) Section 59-12-352Effective 01/01/26;
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(e) Section 59-12-354Effective 01/01/26;
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(f) Section 59-12-401Effective 01/01/26; and
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(g) Section 59-12-402Effective 01/01/26.
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(3) The actions affecting Section 63N-22-101 Effective 07/01/26 take effect on July 1, 2026.
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