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Investment Zones Amendments 2026 GENERAL SESSION STATE OF UTAH Chief Sponsor: Wayne A. Harper House Sponsor: Stephen L. Whyte LONG TITLE General Description: This bill enacts, renumbers, amends, and repeals certain provisions of certain investment zones within the Governor's Office of Economic Opportunity. Highlighted Provisions: This bill: defines terms; enacts, renumbers, and amends provisions of a convention center reinvestment zone and convention center reinvestment zone in a capital city; renumbers and amends provisions of: a station area plan; a housing and transit reinvestment zone; and home ownership promotion zones in a municipality and county; renumbers provisions of: a first home investment zone; a capital city revitalization zone; and a transportation reinvestment zone; repeals an outdated section of code; and makes technical and conforming changes. Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS: 10-20-404 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15 10-21-101 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15 10-21-201 Effective 05/06/26, as enacted by Laws of Utah 2025, First Special Session, Chapter 15 11-13-103 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 187 11-13-206 Effective 05/06/26, as last amended by Laws of Utah 2018, Chapter 424 11-13-207 Effective 05/06/26, as last amended by Laws of Utah 2018, Chapter 424 17-79-403 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14 17-80-101 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14 17-80-201 Effective 05/06/26, as enacted by Laws of Utah 2025, First Special Session, Chapter 14 17B-2a-802 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 17D-4-102 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapters 29, 347 17D-4-202.1 Effective 05/06/26, as enacted by Laws of Utah 2025, Chapter 29 17D-4-203 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 498 20A-7-601 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 32B-1-202 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 162 53H-9-206 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 8 59-1-306 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 258 59-2-924 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 59-12-103 Effective 05/06/26 Superseded 07/01/26, as last amended by Laws of Utah 2025, Chapter 490 59-12-103 Effective 07/01/26, as last amended by Laws of Utah 2025, Chapter 285 59-12-205 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapters 490, 495 59-12-402.1 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 29 59-12-402.5 Effective 05/06/26, as enacted by Laws of Utah 2024, Chapter 436 59-12-1102 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 17 59-12-2206 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 400 59-12-2220 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 72-1-102 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 373 72-1-304 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 72-2-124 Effective 05/06/26 Superseded 07/01/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 72-2-124 Effective 07/01/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 72-2-201 Effective 05/06/26, as last amended by Laws of Utah 2023, Chapter 16 72-2-301 Effective 05/06/26, as enacted by Laws of Utah 2024, Chapter 501 72-5-117 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 15 72-6-112.5 Effective 05/06/26, as last amended by Laws of Utah 2023, Chapter 22 ENACTS: 63N-23-303 Effective 05/06/26, Utah Code Annotated 1953 63N-23-304 Effective 05/06/26, Utah Code Annotated 1953 63N-23-305 Effective 05/06/26, Utah Code Annotated 1953 63N-23-307 Effective 05/06/26, Utah Code Annotated 1953 63N-23-401 Effective 05/06/26, Utah Code Annotated 1953 63N-23-402 Effective 05/06/26, Utah Code Annotated 1953 63N-23-403 Effective 05/06/26, Utah Code Annotated 1953 63N-23-404 Effective 05/06/26, Utah Code Annotated 1953 63N-23-405 Effective 05/06/26, Utah Code Annotated 1953 63N-23-406 Effective 05/06/26, Utah Code Annotated 1953 63N-23-407 Effective 05/06/26, Utah Code Annotated 1953 63N-23-501 Effective 05/06/26, Utah Code Annotated 1953 63N-23-601 Effective 05/06/26, Utah Code Annotated 1953 RENUMBERS AND AMENDS: 63N-23-101 Effective 05/06/26, (Renumbered from 63N-3-602, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-102 Effective 05/06/26, (Renumbered from 63N-3-605, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-103 Effective 05/06/26, (Renumbered from 63N-3-606, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-104 Effective 05/06/26, (Renumbered from 10-21-203, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-201 Effective 05/06/26, (Renumbered from 63N-3-603, as last amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-202 Effective 05/06/26, (Renumbered from 63N-3-604, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-203 Effective 05/06/26, (Renumbered from 63N-3-607, as last amended by Laws of Utah 2025, Chapter 404) 63N-23-204 Effective 05/06/26, (Renumbered from 63N-3-608, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-205 Effective 05/06/26, (Renumbered from 63N-3-609, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-206 Effective 05/06/26, (Renumbered from 63N-3-610, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-207 Effective 05/06/26, (Renumbered from 63N-3-611, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-301 Effective 05/06/26, (Renumbered from 63N-3-603.1, as enacted by Laws of Utah 2025, Chapter 29) 63N-23-302 Effective 05/06/26, (Renumbered from 63N-3-604.1, as enacted by Laws of Utah 2025, Chapter 29) 63N-23-306 Effective 05/06/26, (Renumbered from 63N-3-610.1, as enacted by Laws of Utah 2025, Chapter 29) 63N-23-502 Effective 05/06/26, (Renumbered from 10-21-501, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-503 Effective 05/06/26, (Renumbered from 10-21-502, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-504 Effective 05/06/26, (Renumbered from 10-21-503, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-505 Effective 05/06/26, (Renumbered from 10-21-504, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-602 Effective 05/06/26, (Renumbered from 17-80-501, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14) 63N-23-603 Effective 05/06/26, (Renumbered from 17-80-502, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14) 63N-23-604 Effective 05/06/26, (Renumbered from 17-80-503, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14) 63N-23-605 Effective 05/06/26, (Renumbered from 17-80-504, as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 14) 63N-23-701 Effective 05/06/26, (Renumbered from 63N-3-1601, as last amended by Laws of Utah 2025, Chapter 440) 63N-23-702 Effective 05/06/26, (Renumbered from 63N-3-1602, as last amended by Laws of Utah 2025, First Special Session, Chapter 15) 63N-23-703 Effective 05/06/26, (Renumbered from 63N-3-1603, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-704 Effective 05/06/26, (Renumbered from 63N-3-1604, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-705 Effective 05/06/26, (Renumbered from 63N-3-1605, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-706 Effective 05/06/26, (Renumbered from 63N-3-1606, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-707 Effective 05/06/26, (Renumbered from 63N-3-1607, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-708 Effective 05/06/26, (Renumbered from 63N-3-1608, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-709 Effective 05/06/26, (Renumbered from 63N-3-1609, as enacted by Laws of Utah 2024, Chapter 537) 63N-23-801 Effective 05/06/26, (Renumbered from 63N-3-1401, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-802 Effective 05/06/26, (Renumbered from 63N-3-1402, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-803 Effective 05/06/26, (Renumbered from 63N-3-1403, as last amended by Laws of Utah 2025, Chapter 29) 63N-23-804 Effective 05/06/26, (Renumbered from 63N-3-1404, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-805 Effective 05/06/26, (Renumbered from 63N-3-1405, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-806 Effective 05/06/26, (Renumbered from 63N-3-1406, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-807 Effective 05/06/26, (Renumbered from 63N-3-1407, as enacted by Laws of Utah 2024, Chapter 436) 63N-23-808 Effective 05/06/26, (Renumbered from 63N-3-1408, as enacted by Laws of Utah 2024, Chapter 538) 63N-23-901 Effective 05/06/26, (Renumbered from 11-13-227, as last amended by Laws of Utah 2025, First Special Session, Chapter 15) REPEALS: 63N-3-601 Effective 05/06/26, as enacted by Laws of Utah 2021, Chapter 411 Be it enacted by the Legislature of the state of Utah: Section 1. Section 10-20-404 is amended to read: 10-20-404 Effective 05/06/26. General plan preparation. (1) (a) The planning commission shall provide notice, as provided in Section 10-20-203, of the planning commission's intent to make a recommendation to the municipal legislative body for a general plan or a comprehensive general plan amendment when the planning commission initiates the process of preparing the planning commission's recommendation. (b) The planning commission shall make and recommend to the legislative body a proposed general plan for the area within the municipality. (c) The plan may include areas outside the boundaries of the municipality if, in the planning commission's judgment, those areas are related to the planning of the municipality's territory. (d) Except as otherwise provided by law or with respect to a municipality's power of eminent domain, when the plan of a municipality involves territory outside the boundaries of the municipality, the municipality may not take action affecting that territory without the concurrence of the county or other municipalities affected. (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts, and descriptive and explanatory matter, shall include the planning commission's recommendations for the following plan elements: (i) a land use element that: (A) designates the long-term goals and the proposed extent, general distribution, and location of land for housing for residents of various income levels, business, industry, agriculture, recreation, education, public buildings and grounds, open space, and other categories of public and private uses of land as appropriate; (B) includes a statement of the projections for and standards of population density and building intensity recommended for the various land use categories covered by the plan; (C) except for a city of the fifth class or a town, is coordinated to integrate the land use element with the water use and preservation element; and (D) except for a city of the fifth class or a town, accounts for the effect of land use categories and land uses on water demand; (ii) a transportation and traffic circulation element that: (A) provides the general location and extent of existing and proposed freeways, arterial and collector streets, public transit, active transportation facilities, and other modes of transportation that the planning commission considers appropriate; (B) for a municipality that has access to a major transit investment corridor, addresses the municipality's plan for residential and commercial development around major transit investment corridors to maintain and improve the connections between housing, employment, education, recreation, and commerce; (C) for a municipality that does not have access to a major transit investment corridor, addresses the municipality's plan for residential and commercial development in areas that will maintain and improve the connections between housing, transportation, employment, education, recreation, and commerce; and (D) correlates with the population projections, the employment projections, and the proposed land use element of the general plan; (iii) a moderate income housing element that meets the requirements of Section 10-21-201; and (iv) except for a city of the fifth class or a town, a water use and preservation element that addresses: (A) the effect of permitted development or patterns of development on water demand and water infrastructure; (B) methods of reducing water demand and per capita consumption for future development; (C) methods of reducing water demand and per capita consumption for existing development; and (D) opportunities for the municipality to modify the municipality's operations to eliminate practices or conditions that waste water. (b) In drafting the land use element, the planning commission shall: (i) identify and consider each agriculture protection area within the municipality; (ii) avoid proposing a use of land within an agriculture protection area that is inconsistent with or detrimental to the use of the land for agriculture; and (iii) consider and coordinate with any station area plans adopted by the municipality if required under Section [10-21-203] 63N-23-104. (c) In drafting the transportation and traffic circulation element, the planning commission shall: (i) (A) consider and coordinate with the regional transportation plan developed by the municipality's region's metropolitan planning organization, if the municipality is within the boundaries of a metropolitan planning organization; or (B) consider and coordinate with the long-range transportation plan developed by the Department of Transportation, if the municipality is not within the boundaries of a metropolitan planning organization; and (ii) consider and coordinate with any station area plans adopted by the municipality if required under Section [10-21-203] 63N-23-104. (d) In drafting the water use and preservation element, the planning commission: (i) shall consider: (A) applicable regional water conservation goals recommended by the Division of Water Resources; and (B) if Section 73-10-32 requires the municipality to adopt a water conservation plan in accordance with Section 73-10-32, the municipality's water conservation plan; (ii) shall include a recommendation for: (A) water conservation policies to be determined by the municipality; and (B) landscaping options within a public street for current and future development that do not require the use of lawn or turf in a parkstrip; (iii) shall review the municipality's land use ordinances and include a recommendation for changes to an ordinance that promotes the inefficient use of water; (iv) shall consider principles of sustainable landscaping, including the: (A) reduction or limitation of the use of lawn or turf; (B) promotion of site-specific landscape design that decreases stormwater runoff or runoff of water used for irrigation; (C) preservation and use of healthy trees that have a reasonable water requirement or are resistant to dry soil conditions; (D) elimination or regulation of ponds, pools, and other features that promote unnecessary water evaporation; (E) reduction of yard waste; and (F) use of an irrigation system, including drip irrigation, best adapted to provide the optimal amount of water to the plants being irrigated; (v) shall consult with the public water system or systems serving the municipality with drinking water regarding how implementation of the land use element and water use and preservation element may affect: (A) water supply planning, including drinking water source and storage capacity consistent with Section 19-4-114; and (B) water distribution planning, including master plans, infrastructure asset management programs and plans, infrastructure replacement plans, and impact fee facilities plans; (vi) shall consult with the Division of Water Resources for information and technical resources regarding regional water conservation goals, including how implementation of the land use element and the water use and preservation element may affect the Great Salt Lake; (vii) may include recommendations for additional water demand reduction strategies, including: (A) creating a water budget associated with a particular type of development; (B) adopting new or modified lot size, configuration, and landscaping standards that will reduce water demand for new single family development; (C) providing one or more water reduction incentives for existing development such as modification of existing landscapes and irrigation systems and installation of water fixtures or systems that minimize water demand; (D) discouraging incentives for economic development activities that do not adequately account for water use or do not include strategies for reducing water demand; and (E) adopting water concurrency standards requiring that adequate water supplies and facilities are or will be in place for new development; and (viii) for a town, may include, and for another municipality, shall include, a recommendation for low water use landscaping standards for a new: (A) commercial, industrial, or institutional development; (B) common interest community, as defined in Section 57-25-102; or (C) multifamily housing project. (3) The proposed general plan may include: (a) an environmental element that addresses: (i) the protection, conservation, development, and use of natural resources, including the quality of: (A) air; (B) forests; (C) soils; (D) rivers; (E) groundwater and other waters; (F) harbors; (G) fisheries; (H) wildlife; (I) minerals; and (J) other natural resources; and (ii) (A) the reclamation of land, flood control, prevention and control of the pollution of streams and other waters; (B) the regulation of the use of land on hillsides, stream channels and other environmentally sensitive areas; (C) the prevention, control, and correction of the erosion of soils; (D) the preservation and enhancement of watersheds and wetlands; and (E) the mapping of known geologic hazards; (b) a public services and facilities element showing general plans for sewage, water, waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them, police and fire protection, and other public services; (c) a rehabilitation, redevelopment, and conservation element consisting of plans and programs for: (i) historic preservation; (ii) the diminution or elimination of a development impediment as defined in Section 17C-1-102; and (iii) redevelopment of land, including housing sites, business and industrial sites, and public building sites; (d) an economic element composed of appropriate studies and forecasts, as well as an economic development plan, which may include review of existing and projected municipal revenue and expenditures, revenue sources, identification of basic and secondary industry, primary and secondary market areas, employment, and retail sales activity; (e) recommendations for implementing all or any portion of the general plan, including the adoption of land and water use ordinances, capital improvement plans, community development and promotion, and any other appropriate action; (f) provisions addressing any of the matters listed in Subsection 10-20-401(2) or Section 10-20-403; and (g) any other element the municipality considers appropriate. Section 2. Section 10-21-101 is amended to read: 10-21-101 Effective 05/06/26. Definitions. As used in this part: (1) "Affordable housing" means housing offered for sale at 80% or less of the median county home price for housing of that type. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Applicable metropolitan planning organization" means the metropolitan planning organization that has jurisdiction over the area in which a fixed guideway public transit station is located. (4) "Applicable public transit district" means the public transit district, as defined in Section 17B-2a-802, of which a fixed guideway public transit station is included. (5) "Base taxable value" means a property's taxable value as shown upon the assessment roll last equalized during the base year. (6) "Base year" means, for a proposed home ownership promotion zone area, a year beginning the first day of the calendar quarter determined by the last equalized tax roll before the adoption of the home ownership promotion zone. (7) "Division" means the Housing and Community Development Division within the Department of Workforce Services. (8) "Existing fixed guideway public transit station" means a fixed guideway public transit station for which construction begins before June 1, 2022. (9) "Fixed guideway" means the same as that term is defined in Section 59-12-102. (10) "Home ownership promotion zone" means a home ownership promotion zone created in accordance with [this part] Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities. (11) "Implementation plan" means the implementation plan adopted as part of the moderate income housing element of a specified municipality's general plan as provided in Subsection 10-21-201(4). (12) "Initial report" or "initial moderate income housing report" means the one-time report described in Subsection 10-21-202(1). (13) "Internal accessory dwelling unit" means an accessory dwelling unit created: (a) within a primary dwelling; (b) within the footprint of the primary dwelling described in Subsection (13)(a) at the time the internal accessory dwelling unit is created; and (c) for the purpose of offering a long-term rental of 30 consecutive days or longer. (14) "Moderate income housing strategy" means a strategy described in Subsection 10-21-201(3)(a)(iii). (15) "New fixed guideway public transit station" means a fixed guideway public transit station for which construction begins on or after June 1, 2022. (16) "Participant" means the same as that term is defined in Section 17C-1-102. (17) "Participation agreement" means the same as that term is defined in Section 17C-1-102. (18) (a) "Primary dwelling" means a single-family dwelling that: (i) is detached; and (ii) is occupied as the primary residence of the owner of record. (b) "Primary dwelling" includes a garage if the garage: (i) is a habitable space; and (ii) is connected to the primary dwelling by a common wall. (19) "Project improvements" means the same as that term is defined in Section 11-36a-102. (20) "Qualifying land use petition" means a petition: (a) that involves land located within a station area for an existing public transit station that provides rail services; (b) that involves land located within a station area for which the municipality has not yet satisfied the requirements of Subsection [10-21-203(1)(a)] 63N-23-104(1)(a); (c) that proposes the development of an area greater than five contiguous acres, with no less than 51% of the acreage within the station area; (d) that would require the municipality to amend the municipality's general plan or change a zoning designation for the land use application to be approved; (e) that would require a higher density than the density currently allowed by the municipality; (f) that proposes the construction of new residential units, at least 10% of which are dedicated to moderate income housing; and (g) for which the land use applicant requests the municipality to initiate the process of satisfying the requirements of Subsection [10-21-203(1)(a)] 63N-23-104(1)(a) for the station area in which the development is proposed, subject to Subsection [10-21-203(2)(d)] 63N-23-104(2)(d). (21) "Report" means an initial report or a subsequent progress report. (22) "Specified municipality" means: (a) a city of the first, second, third, or fourth class; or (b) a city of the fifth class with a population of 5,000 or more, if the city is located within a county of the first, second, or third class. (23) (a) "Station area" means: (i) for a fixed guideway public transit station that provides rail services, the area within a one-half mile radius of the center of the fixed guideway public transit station platform; or (ii) for a fixed guideway public transit station that provides bus services only, the area within a one-fourth mile radius of the center of the fixed guideway public transit station platform. (b) "Station area" includes any parcel bisected by the radius limitation described in Subsection (a)(i) or (ii). (24) "Station area plan" means a plan that: (a) establishes a vision, and the actions needed to implement that vision, for the development of land within a station area; and (b) is developed and adopted in accordance with this section. (25) "Subsequent progress report" means the annual report described in Subsection 10-21-202(2). (26) "System improvements" means the same as that term is defined in Section 11-36a-102. (27) "Tax commission" means the State Tax Commission created in Section 59-1-201. (28) (a) "Tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a home ownership promotion zone, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Tax increment" does not include property revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); or (ii) a county additional property tax described in Subsection 59-2-1602(4). (29) "Taxing entity" means the same as that term is defined in Section 17C-1-102. Section 3. Section 10-21-201 is amended to read: 10-21-201 Effective 05/06/26. Moderate income housing plan required. (1) A moderate income housing element of a general plan shall include a moderate income housing plan that meets the requirements of this section. (2) A moderate income housing plan: (a) shall provide a realistic opportunity to meet the need for additional moderate income housing within the municipality during the next five years; (b) for a municipality that is not a specified municipality, may include a recommendation to implement three or more of the moderate income housing strategies described in Subsection (3)(a)(iii); (c) for a specified municipality that does not have a fixed guideway public transit station, shall include a recommendation to implement three or more of the moderate income housing strategies described in Subsection (3)(a)(iii) or at least one of the moderate income housing strategies described in Subsections (3)(a)(iii)(X) through (CC); (d) for a specified municipality that has a fixed guideway public transit station, shall include: (i) a recommendation to implement five or more of the moderate income housing strategies described in Subsection (3)(a)(iii), of which one shall be the moderate income housing strategy described in Subsection (3)(a)(iii)(U) and one shall be a moderate income housing strategy described in Subsection (3)(a)(iii)(G) or (H); or (ii) a recommendation to implement the moderate income housing strategy described in Subsection (3)(a)(iii)(U), one of the moderate income housing strategies described in Subsections (3)(a)(iii)(X) through (CC), and one moderate income housing strategy described in Subsection (3)(a)(iii); and (e) for a specified municipality shall include an implementation plan as provided in Subsection (4). (3) (a) In drafting the moderate income housing element, the planning commission: (i) shall consider the Legislature's determination that municipalities shall facilitate a reasonable opportunity for a variety of housing, including moderate income housing: (A) to meet the needs of people of various income levels living, working, or desiring to live or work in the community; and (B) to allow people with various incomes to benefit from and fully participate in all aspects of neighborhood and community life; (ii) for a municipality that is not a specified municipality, may include, and for a specified municipality shall include, an analysis of how the municipality will provide a realistic opportunity for the development of moderate income housing within the next five years; and (iii) for a municipality that is not a specified municipality, may include, and for a specified municipality shall include, a recommendation to implement the required number of any of the following moderate income housing strategies as specified in Subsection (2): (A) rezone for densities necessary to facilitate the production of moderate income housing; (B) demonstrate investment in the rehabilitation or expansion of infrastructure that facilitates the construction of moderate income housing; (C) demonstrate investment in the rehabilitation of existing uninhabitable housing stock into moderate income housing; (D) identify and utilize general fund subsidies or other sources of revenue to waive construction related fees that are otherwise generally imposed by the municipality for the construction or rehabilitation of moderate income housing; (E) create or allow for, and reduce regulations related to, internal or detached accessory dwelling units in residential zones; (F) zone or rezone for higher density or moderate income residential development in commercial or mixed-use zones near major transit investment corridors, commercial centers, or employment centers; (G) amend land use regulations to allow for higher density or new moderate income residential development in commercial or mixed-use zones near major transit investment corridors; (H) amend land use regulations to eliminate or reduce parking requirements for residential development where a resident is less likely to rely on the resident's own vehicle, such as residential development near major transit investment corridors or senior living facilities; (I) amend land use regulations to allow for single room occupancy developments; (J) implement zoning incentives for moderate income units in new developments; (K) preserve existing and new moderate income housing and subsidized units by utilizing a landlord incentive program, providing for deed restricted units through a grant program, or[, notwithstanding Section 10-21-301,] establishing a housing loss mitigation fund; (L) reduce, waive, or eliminate impact fees related to moderate income housing; (M) demonstrate creation of, or participation in, a community land trust program for moderate income housing; (N) implement a mortgage assistance program for employees of the municipality, an employer that provides contracted services to the municipality, or any other public employer that operates within the municipality; (O) apply for or partner with an entity that applies for state or federal funds or tax incentives to promote the construction of moderate income housing, an entity that applies for programs offered by the Utah Housing Corporation within the Utah Housing Corporation's funding capacity, an entity that applies for affordable housing programs administered by the Department of Workforce Services, an entity that applies for affordable housing programs administered by an association of governments established by an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, an entity that applies for services provided by a public housing authority to preserve and create moderate income housing, or any other entity that applies for programs or services that promote the construction or preservation of moderate income housing; (P) demonstrate utilization of a moderate income housing set aside from a community reinvestment agency, redevelopment agency, or community development and renewal agency to create or subsidize moderate income housing; (Q) eliminate impact fees for any accessory dwelling unit that is not an internal accessory dwelling unit as defined in Section 10-21-101; (R) create a program to transfer development rights for moderate income housing; (S) ratify a joint acquisition agreement with another local political subdivision for the purpose of combining resources to acquire property for moderate income housing; (T) develop a moderate income housing project for residents who are disabled or 55 years old or older; (U) develop and adopt a station area plan in accordance with Section [10-21-203] 63N-23-104; (V) create or allow for, and reduce regulations related to, multifamily residential dwellings compatible in scale and form with detached single-family residential dwellings and located in walkable communities within residential or mixed-use zones; (W) demonstrate implementation of any other program or strategy to address the housing needs of residents of the municipality who earn less than 80% of the area median income, including the dedication of a local funding source to moderate income housing or the adoption of a land use ordinance that requires 10% or more of new residential development in a residential zone be dedicated to moderate income housing; (X) create a housing and transit reinvestment zone in accordance with [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (Y) create a home ownership promotion zone in accordance with [Part 5, Home Ownership Promotion Zone for Municipalities] Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities; (Z) create a first home investment zone in accordance with [Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] Title 63N, Chapter 23, Part 7, First Home Investment Zone; (AA) approve a project that receives funding from, or qualifies to receive funding from, the Utah Homes Investment Program created in Title 51, Chapter 12, Utah Homes Investment Program; (BB) adopt or approve a qualifying affordable home ownership density bonus for single-family residential units, as described in Section 10-21-401; and (CC) adopt or approve a qualifying affordable home ownership density bonus for multi-family residential units, as described in Section 10-21-402; and (b) the planning commission shall identify each moderate income housing strategy recommended to the legislative body for implementation by restating the exact language used to describe the strategy in Subsection (3)(a)(iii). (4) (a) In drafting the implementation plan portion of the moderate income housing element as described in Subsection (2)(c), the planning commission shall recommend to the legislative body the establishment of a five-year timeline for implementing each of the moderate income housing strategies selected by the municipality for implementation. (b) The timeline described in Subsection (4)(a) shall: (i) identify specific measures and benchmarks for implementing each moderate income housing strategy selected by the municipality, whether one-time or ongoing; and (ii) provide flexibility for the municipality to make adjustments as needed. Section 4. Section 11-13-103 is amended to read: 11-13-103 Effective 05/06/26. Definitions. As used in this chapter: (1) (a) "Additional project capacity" means electric generating capacity provided by a generating unit that first produces electricity on or after May 6, 2002, and that is constructed or installed at or adjacent to the site of a project that first produced electricity before May 6, 2002, regardless of whether: (i) the owners of the new generating unit are the same as or different from the owner of the project; and (ii) the purchasers of electricity from the new generating unit are the same as or different from the purchasers of electricity from the project. (b) "Additional project capacity" does not mean or include replacement project capacity. (2) "Board" means the Permanent Community Impact Fund Board created by Section 35A-8-304, and [its] the board's successors. (3) "Candidate" means one or more of: (a) the state; (b) a county, municipality, school district, special district, special service district, or other political subdivision of the state; and (c) a prosecution district. (4) "Commercial project entity" means a project entity, defined in Subsection (18), that: (a) has no taxing authority; and (b) is not supported in whole or in part by and does not expend or disburse tax revenues. (5) "Direct impacts" means an increase in the need for public facilities or services that is attributable to the project or facilities providing additional project capacity, except impacts resulting from the construction or operation of a facility that is: (a) owned by an owner other than the owner of the project or of the facilities providing additional project capacity; and (b) used to furnish fuel, construction, or operation materials for use in the project. (6) "Electric interlocal entity" means an interlocal entity described in Subsection 11-13-203(3). (7) "Energy services interlocal entity" means an interlocal entity that is described in Subsection 11-13-203(4). (8) (a) "Estimated electric requirements," when used with respect to a qualified energy services interlocal entity, includes any of the following that meets the requirements of Subsection (8)(b): (i) generation capacity; (ii) generation output; or (iii) an electric energy production facility. (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements" if [it is] the item is needed by the qualified energy services interlocal entity to perform the qualified energy services interlocal entity's contractual or legal obligations to any of [its] qualified energy services interlocal entity's members. (9) (a) "Facilities providing replacement project capacity" means facilities that have been, are being, or are proposed to be constructed, reconstructed, converted, repowered, acquired, leased, used, or installed to provide replacement project capacity. (b) "Facilities providing replacement project capacity" includes facilities that have been, are being, or are proposed to be constructed, reconstructed, converted, repowered, acquired, leased, used, or installed: (i) to support and facilitate the construction, reconstruction, conversion, repowering, installation, financing, operation, management, or use of replacement project capacity; or (ii) for the distribution of power generated from existing capacity or replacement project capacity to facilities located on real property in which the project entity that owns the project has an ownership, leasehold, right-of-way, or permitted interest. (10) "Governing authority" means a governing board or joint administrator. (11) (a) "Governing board" means the body established in reliance on the authority provided under Subsection 11-13-206(1)(b) to govern an interlocal entity. (b) "Governing board" includes a board of directors described in an agreement, as amended, that creates a project entity. (c) "Governing board" does not include a board as defined in Subsection (2). (12) "Interlocal entity" means: (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal entity; or (b) a separate legal or administrative entity created under Section 11-13-205. (13) "Joint administrator" means an administrator or joint board described in Section 11-13-207 to administer a joint or cooperative undertaking. (14) "Joint or cooperative undertaking" means an undertaking described in Section 11-13-207 that is not conducted by an interlocal entity. (15) "Member" means a public agency that, with another public agency, creates an interlocal entity under Section 11-13-203. (16) "Out-of-state public agency" means a public agency as defined in Subsection (19)(c), (d), or (e). (17) (a) "Project": (i) means an electric generation and transmission facility owned by a Utah interlocal entity or an electric interlocal entity; and (ii) includes fuel facilities, fuel production facilities, fuel transportation facilities, energy storage facilities, or water facilities that are: (A) owned by that Utah interlocal entity or electric interlocal entity; and (B) required for the generation and transmission facility. (b) "Project" includes a project entity's ownership interest in: (i) facilities that provide additional project capacity; (ii) facilities providing replacement project capacity; (iii) additional generating, transmission, fuel, fuel transportation, water, or other facilities added to a project; and (iv) a Utah interlocal energy hub, as defined in Section 11-13-602. (18) "Project entity" means a Utah interlocal entity or an electric interlocal entity that owns a project as defined in this section. (19) "Public agency" means: (a) a city, town, county, school district, special district, special service district, an interlocal entity, or other political subdivision of the state; (b) the state or any department, division, or agency of the state; (c) any agency of the United States; (d) any political subdivision or agency of another state or the District of Columbia including any interlocal cooperation or joint powers agency formed under the authority of the law of the other state or the District of Columbia; or (e) any Indian tribe, band, nation, or other organized group or community which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (20) "Public agency insurance mutual" means the same as that term is defined in Subsection 31A-1-103(7). (21) "Qualified energy services interlocal entity" means an energy services interlocal entity that at the time that the energy services interlocal entity acquires [its] the energy services interlocal entity interest in facilities providing additional project capacity has at least five members that are Utah public agencies. (22) "Replacement project capacity" means electric generating capacity or transmission capacity that: (a) replaces all or a portion of the existing electric generating or transmission capacity of a project; and (b) is provided by a facility that is on, adjacent to, in proximity to, or interconnected with the site of a project, regardless of whether: (i) the capacity replacing existing capacity is less than or exceeds the generating or transmission capacity of the project existing before installation of the capacity replacing existing capacity; (ii) the capacity replacing existing capacity is owned by the project entity that is the owner of the project, a segment established by the project entity, or a person with whom the project entity or a segment established by the project entity has contracted; or (iii) the facility that provides the capacity replacing existing capacity is constructed, reconstructed, converted, repowered, acquired, leased, used, or installed before or after any actual or anticipated reduction or modification to existing capacity of the project. (23) "Reserve fund" means the same as that term is defined in Subsection 31A-1-103(7). (24) "Transportation reinvestment zone" means an area created by two or more public agencies by interlocal agreement to capture increased property or sales tax revenue generated by a transportation infrastructure project as described in Section [11-13-227] 63N-23-901. (25) "Utah interlocal entity": (a) means an interlocal entity described in Subsection 11-13-203(2); and (b) includes a separate legal or administrative entity created under Laws of Utah 1977, Chapter 47, Section 3, as amended. (26) "Utah public agency" means a public agency under Subsection (19)(a) or (b). Section 5. Section 11-13-206 is amended to read: 11-13-206 Effective 05/06/26. Requirements for agreements for joint or cooperative action. (1) Each agreement under Section 11-13-202, 11-13-203, 11-13-205, or [11-13-227] 63N-23-901 shall specify: (a) [its] the agreement's duration; (b) if the agreement creates an interlocal entity: (i) the precise organization, composition, and nature of the interlocal entity; (ii) the powers delegated to the interlocal entity; (iii) the manner in which the interlocal entity is to be governed; and (iv) subject to Subsection (2), the manner in which the members of [its] the governing board are to be appointed or selected; (c) [its] the agreement's purpose or purposes; (d) the manner of financing the joint or cooperative action and of establishing and maintaining a budget for it; (e) the permissible method or methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon such partial or complete termination; (f) the process, conditions, and terms for withdrawal of a participating public agency from the interlocal entity or the joint or cooperative undertaking; (g) (i) whether voting is based upon one vote per member or weighted; and (ii) if weighted voting is allowed, the basis upon which the vote weight will be determined; and (h) any other necessary and proper matters. (2) Each agreement under Section 11-13-203 or 11-13-205 that creates an interlocal entity shall require that Utah public agencies that are parties to the agreement have the right to appoint or select members of the interlocal entity's governing board with a majority of the voting power. Section 6. Section 11-13-207 is amended to read: 11-13-207 Effective 05/06/26. Additional requirements for agreement not establishing interlocal entity. (1) If an agreement under Section 11-13-202 or [11-13-227] 63N-23-901 does not establish an interlocal entity to conduct the joint or cooperative undertaking, the agreement shall, in addition to the items specified in Section 11-13-206, provide for: (a) the joint or cooperative undertaking to be administered by: (i) an administrator; or (ii) a joint board with representation from the public agencies that are parties to the agreement; (b) the manner of acquiring, holding, and disposing of real and personal property used in the joint or cooperative undertaking; (c) the functions to be performed by the joint or cooperative undertaking; and (d) the powers of the joint administrator. (2) The creation, operation, governance, and fiscal procedures of a joint or cooperative undertaking are governed by this chapter. Section 7. Section 17-79-403 is amended to read: 17-79-403 Effective 05/06/26. General plan preparation. (1) (a) The planning commission shall provide notice, as provided in Section 17-79-203, of the planning commission's intent to make a recommendation to the county legislative body for a general plan or a comprehensive general plan amendment when the planning commission initiates the process of preparing the planning commission's recommendation. (b) The planning commission shall make and recommend to the legislative body a proposed general plan for: (i) the unincorporated area within the county; or (ii) if the planning commission is a planning commission for a mountainous planning district, the mountainous planning district. (c) (i) The plan may include planning for incorporated areas if, in the planning commission's judgment, [they] the plans are related to the planning of the unincorporated territory or of the county as a whole. (ii) Elements of the county plan that address incorporated areas are not an official plan or part of a municipal plan for any municipality, unless the county plan is recommended by the municipal planning commission and adopted by the governing body of the municipality. (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts, and descriptive and explanatory matter, shall include the planning commission's recommendations for the following plan elements: (i) a land use element that: (A) designates the long-term goals and the proposed extent, general distribution, and location of land for housing for residents of various income levels, business, industry, agriculture, recreation, education, public buildings and grounds, open space, and other categories of public and private uses of land as appropriate; (B) includes a statement of the projections for and standards of population density and building intensity recommended for the various land use categories covered by the plan; (C) is coordinated to integrate the land use element with the water use and preservation element; and (D) accounts for the effect of land use categories and land uses on water demand; (ii) a transportation and traffic circulation element that: (A) provides the general location and extent of existing and proposed freeways, arterial and collector streets, public transit, active transportation facilities, and other modes of transportation that the planning commission considers appropriate; (B) addresses the county's plan for residential and commercial development around major transit investment corridors to maintain and improve the connections between housing, employment, education, recreation, and commerce; and (C) correlates with the population projections, the employment projections, and the proposed land use element of the general plan; (iii) for a specified county as defined in Section 17-80-101, a moderate income housing element that meets the requirements of Section [17-80-202] 17-80-201; (iv) a resource management plan detailing the findings, objectives, and policies required by Section 17-79-402; and (v) a water use and preservation element that addresses: (A) the effect of permitted development or patterns of development on water demand and water infrastructure; (B) methods of reducing water demand and per capita consumption for future development; (C) methods of reducing water demand and per capita consumption for existing development; and (D) opportunities for the county to modify the county's operations to eliminate practices or conditions that waste water. (b) In drafting the land use element, the planning commission shall: (i) identify and consider each agriculture protection area within the unincorporated area of the county or mountainous planning district; (ii) avoid proposing a use of land within an agriculture protection area that is inconsistent with or detrimental to the use of the land for agriculture; and (iii) consider and coordinate with any station area plans adopted by municipalities located within the county under [10-21-203] Section 63N-23-104. (c) In drafting the transportation and traffic circulation element, the planning commission shall: (i) (A) consider and coordinate with the regional transportation plan developed by the county's region's metropolitan planning organization, if the relevant areas of the county are within the boundaries of a metropolitan planning organization; or (B) consider and coordinate with the long-range transportation plan developed by the Department of Transportation, if the relevant areas of the county are not within the boundaries of a metropolitan planning organization; and (ii) consider and coordinate with any station area plans adopted by municipalities located within the county under Section [10-21-203] 63N-23-104. (d) In drafting the water use and preservation element, the planning commission: (i) shall consider applicable regional water conservation goals recommended by the Division of Water Resources; (ii) shall consult with the Division of Water Resources for information and technical resources regarding regional water conservation goals, including how implementation of the land use element and water use and preservation element may affect the Great Salt Lake; (iii) shall notify the community water systems serving drinking water within the unincorporated portion of the county and request feedback from the community water systems about how implementation of the land use element and water use and preservation element may affect: (A) water supply planning, including drinking water source and storage capacity consistent with Section 19-4-114; and (B) water distribution planning, including master plans, infrastructure asset management programs and plans, infrastructure replacement plans, and impact fee facilities plans; (iv) shall consider the potential opportunities and benefits of planning for regionalization of public water systems; (v) shall consult with the Department of Agriculture and Food for information and technical resources regarding the potential benefits of agriculture conservation easements and potential implementation of agriculture water optimization projects that would support regional water conservation goals; (vi) shall notify an irrigation or canal company located in the county so that the irrigation or canal company can be involved in the protection and integrity of the irrigation or canal company's delivery systems; (vii) shall include a recommendation for: (A) water conservation policies to be determined by the county; and (B) landscaping options within a public street for current and future development that do not require the use of lawn or turf in a parkstrip; (viii) shall review the county's land use ordinances and include a recommendation for changes to an ordinance that promotes the inefficient use of water; (ix) shall consider principles of sustainable landscaping, including the: (A) reduction or limitation of the use of lawn or turf; (B) promotion of site-specific landscape design that decreases stormwater runoff or runoff of water used for irrigation; (C) preservation and use of healthy trees that have a reasonable water requirement or are resistant to dry soil conditions; (D) elimination or regulation of ponds, pools, and other features that promote unnecessary water evaporation; (E) reduction of yard waste; and (F) use of an irrigation system, including drip irrigation, best adapted to provide the optimal amount of water to the plants being irrigated; (x) may include recommendations for additional water demand reduction strategies, including: (A) creating a water budget associated with a particular type of development; (B) adopting new or modified lot size, configuration, and landscaping standards that will reduce water demand for new single family development; (C) providing one or more water reduction incentives for existing landscapes and irrigation systems and installation of water fixtures or systems that minimize water demand; (D) discouraging incentives for economic development activities that do not adequately account for water use or do not include strategies for reducing water demand; and (E) adopting water concurrency standards requiring that adequate water supplies and facilities are or will be in place for new development; and (xi) shall include a recommendation for low water use landscaping standards for a new: (A) commercial, industrial, or institutional development; (B) common interest community, as defined in Section 57-25-102; or (C) multifamily housing project. (3) The proposed general plan may include: (a) an environmental element that addresses: (i) to the extent not covered by the county's resource management plan, the protection, conservation, development, and use of natural resources, including the quality of: (A) air; (B) forests; (C) soils; (D) rivers; (E) groundwater and other waters; (F) harbors; (G) fisheries; (H) wildlife; (I) minerals; and (J) other natural resources; and (ii) (A) the reclamation of land, flood control, prevention and control of the pollution of streams and other waters; (B) the regulation of the use of land on hillsides, stream channels and other environmentally sensitive areas; (C) the prevention, control, and correction of the erosion of soils; (D) the preservation and enhancement of watersheds and wetlands; and (E) the mapping of known geologic hazards; (b) a public services and facilities element showing general plans for sewage, water, waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them, police and fire protection, and other public services; (c) a rehabilitation, redevelopment, and conservation element consisting of plans and programs for: (i) historic preservation; (ii) the diminution or elimination of a development impediment as defined in Section 17C-1-102; and (iii) redevelopment of land, including housing sites, business and industrial sites, and public building sites; (d) an economic element composed of appropriate studies and forecasts, as well as an economic development plan, which may include review of existing and projected county revenue and expenditures, revenue sources, identification of basic and secondary industry, primary and secondary market areas, employment, and retail sales activity; (e) recommendations for implementing all or any portion of the general plan, including the adoption of land and water use ordinances, capital improvement plans, community development and promotion, and any other appropriate action; (f) provisions addressing any of the matters listed in Subsection 17-79-401(2) or 17-79-402(1); and (g) any other element the county considers appropriate. Section 8. Section 17-80-101 is amended to read: 17-80-101 Effective 05/06/26. Definitions. As used in this part: (1) "Affordable housing" means housing offered for sale at 80% or less of the median county home price for housing of that type. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Base taxable value" means a property's taxable value as shown upon the assessment roll last equalized during the base year. (4) "Base year" means, for a proposed home ownership promotion zone area, a year beginning the first day of the calendar quarter determined by the last equalized tax roll before the adoption of the home ownership promotion zone. (5) "Division" means the Housing and Community Development Division within the Department of Workforce Services. (6) "Home ownership promotion zone" means a home ownership promotion zone created in accordance with [this part] Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties. (7) "Implementation plan" means the implementation plan adopted as part of the moderate income housing element of a specified county's general plan. (8) "Initial report" means the one-time moderate income housing report described in Subsection 17-80-202(1). (9) "Internal accessory dwelling unit" means an accessory dwelling unit created: (a) within a primary dwelling; (b) within the footprint of the detached primary dwelling at the time the internal accessory dwelling unit is created; and (c) for the purpose of offering a long-term rental of 30 consecutive days or longer. (10) "Moderate income housing strategy" means a strategy described in Section 17-80-201. (11) "Participant" means the same as that term is defined in Section 17C-1-102. (12) "Participation agreement" means the same as that term is defined in Section 17C-1-102. (13) (a) "Primary dwelling" means a single-family dwelling that: (i) is detached; and (ii) is occupied as the primary residence of the owner of record. (b) "Primary dwelling" includes a garage if the garage: (i) is a habitable space; and (ii) is connected to the primary dwelling by a common wall. (14) "Project improvements" means the same as that term is defined in Section 11-36a-102. (15) "Report" means an initial report or a subsequent report described in Section 17-80-202. (16) "Specified county" means a county of the first, second, or third class, which has a population of more than 5,000 in the county's unincorporated areas. (17) "Subsequent progress report" means the annual moderate income housing report described in Section 17-80-202. (18) "System improvements" means the same as that term is defined in Section 11-36a-102. (19) "Tax commission" means the State Tax Commission created in Section 59-1-201. (20) (a) "Tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a home ownership promotion zone, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Tax increment" does not include property revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); or (ii) a county additional property tax described in Subsection 59-2-1602(4). (21) "Taxing entity" means the same as that term is defined in Section 17C-1-102. Section 9. Section 17-80-201 is amended to read: 17-80-201 Effective 05/06/26. Moderate income housing plan required. (1) A moderate income housing element of a general plan shall include a moderate income housing element that meets the requirements of this section. (2) For a specified county, as defined in Section 17-80-101, a moderate income housing element shall: (a) provide a realistic opportunity to meet the need for additional moderate income housing within the next five years; (b) select three or more moderate income housing strategies described in Subsections (3)(a)(ii)(A) through (V), or at least one moderate income housing strategy described in Subsections (3)(a)(ii)(W) through (BB), for implementation; and (c) include an implementation plan as provided in Subsection (4). (3) (a) In drafting the moderate income housing element, the county planning commission shall: (i) consider the Legislature's determination that counties should facilitate a reasonable opportunity for a variety of housing, including moderate income housing: (A) to meet the needs of people of various income levels living, working, or desiring to live or work in the community; and (B) to allow people with various incomes to benefit from and fully participate in all aspects of neighborhood and community life; and (ii) include an analysis of how the county will provide a realistic opportunity for the development of moderate income housing within the planning horizon, including a recommendation to implement three or more of the following moderate income housing strategies: (A) rezone for densities necessary to facilitate the production of moderate income housing; (B) demonstrate investment in the rehabilitation or expansion of infrastructure that facilitates the construction of moderate income housing; (C) demonstrate investment in the rehabilitation of existing uninhabitable housing stock into moderate income housing; (D) identify and utilize county general fund subsidies or other sources of revenue to waive construction related fees that are otherwise generally imposed by the county for the construction or rehabilitation of moderate income housing; (E) create or allow for, and reduce regulations related to, internal or detached accessory dwelling units in residential zones; (F) zone or rezone for higher density or moderate income residential development in commercial or mixed-use zones, commercial centers, or employment centers; (G) amend land use regulations to allow for higher density or new moderate income residential development in commercial or mixed-use zones near major transit investment corridors; (H) amend land use regulations to eliminate or reduce parking requirements for residential development where a resident is less likely to rely on the resident's own vehicle, such as residential development near major transit investment corridors or senior living facilities; (I) amend land use regulations to allow for single room occupancy developments; (J) implement zoning incentives for moderate income units in new developments; (K) preserve existing and new moderate income housing and subsidized units by utilizing a landlord incentive program, providing for deed restricted units through a grant program, or establishing a housing loss mitigation fund; (L) reduce, waive, or eliminate impact fees related to moderate income housing; (M) demonstrate creation of, or participation in, a community land trust program for moderate income housing; (N) implement a mortgage assistance program for employees of the county, an employer that provides contracted services for the county, or any other public employer that operates within the county; (O) apply for or partner with an entity that applies for state or federal funds or tax incentives to promote the construction of moderate income housing, an entity that applies for programs offered by the Utah Housing Corporation within that agency's funding capacity, an entity that applies for affordable housing programs administered by the Department of Workforce Services, an entity that applies for services provided by a public housing authority to preserve and create moderate income housing, or any other entity that applies for programs or services that promote the construction or preservation of moderate income housing; (P) demonstrate utilization of a moderate income housing set aside from a community reinvestment agency, redevelopment agency, or community development and renewal agency to create or subsidize moderate income housing; (Q) eliminate impact fees for any accessory dwelling unit that is not an internal accessory dwelling unit as defined in Section 17-79-611; (R) create a program to transfer development rights for moderate income housing; (S) ratify a joint acquisition agreement with another local political subdivision for the purpose of combining resources to acquire property for moderate income housing; (T) develop a moderate income housing project for residents who are disabled or 55 years old or older; (U) create or allow for, and reduce regulations related to, multifamily residential dwellings compatible in scale and form with detached single-family residential dwellings and located in walkable communities within residential or mixed-use zones; (V) demonstrate implementation of any other program or strategy to address the housing needs of residents of the county who earn less than 80% of the area median income, including the dedication of a local funding source to moderate income housing or the adoption of a land use ordinance that requires 10% or more of new residential development in a residential zone be dedicated to moderate income housing; (W) create a housing and transit reinvestment zone in accordance with [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (X) create a home ownership investment zone in accordance with [Part 5, Home Ownership Promotion Zone] Title 63N, Chapter 23, Part 6, Home Ownership Investment Zone for Counties; (Y) create a first home investment zone in accordance with [Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] Title 63N, Chapter 23, Part 7, First Home Investment Zone; (Z) approve a project that receives funding from, or qualifies to receive funding from, the Utah Homes Investment Program created in Title 51, Chapter 12, Utah Homes Investment Program; (AA) adopt or approve a qualifying affordable home ownership density bonus for single-family residential units, as described in Section 17-80-401; and (BB) adopt or approve an affordable home ownership density bonus for multi-family residential units, as described in Section 17-80-402. (b) The planning commission shall identify each moderate income housing strategy recommended to the legislative body for implementation by restating the exact language used to describe the strategy in Subsection (3)(a)(ii). (4) (a) In drafting the implementation plan portion of the moderate income housing element as described in Subsection (2)(c), the planning commission shall recommend to the legislative body the establishment of a five-year timeline for implementing each of the moderate income housing strategies selected by the county for implementation. (b) The timeline described in Subsection (4)(a) shall: (i) identify specific measures and benchmarks for implementing each moderate income housing strategy selected by the county; and (ii) provide flexibility for the county to make adjustments as needed. Section 10. Section 17B-2a-802 is amended to read: 17B-2a-802 Effective 05/06/26. Definitions. As used in this part: (1) "Affordable housing" means housing occupied or reserved for occupancy by households that meet certain gross household income requirements based on the area median income for households of the same size. (a) "Affordable housing" may include housing occupied or reserved for occupancy by households that meet specific area median income targets or ranges of area median income targets. (b) "Affordable housing" does not include housing occupied or reserved for occupancy by households with gross household incomes that are more than 60% of the area median income for households of the same size. (2) "Appointing entity" means the person, county, unincorporated area of a county, or municipality appointing a member to a public transit district board of trustees. (3) (a) "Chief executive officer" means a person appointed by the board of trustees of a small public transit district to serve as chief executive officer. (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and responsibilities assigned to the general manager but prescribed by the board of trustees to be fulfilled by the chief executive officer. (4) "Confidential employee" means a person who, in the regular course of the person's duties: (a) assists in and acts in a confidential capacity in relation to other persons who formulate, determine, and effectuate management policies regarding labor relations; or (b) has authorized access to information relating to effectuating or reviewing the employer's collective bargaining policies. (5) "Council of governments" means a decision-making body in each county composed of membership including the county governing body and the mayors of each municipality in the county. (6) "Department" means the Department of Transportation created in Section 72-1-201. (7) "Executive director" means a person appointed by the board of trustees of a large public transit district to serve as executive director. (8) "Fixed guideway" means the same as that term is defined in Section 59-12-102. (9) "Fixed guideway capital development" means the same as that term is defined in Section 72-1-102. (10) (a) "General manager" means a person appointed by the board of trustees of a small public transit district to serve as general manager. (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public transit district. (11) "Large public transit district" means a public transit district that provides public transit to an area that includes: (a) more than 65% of the population of the state based on: (i) the estimate of the Utah Population Committee created in Section 63C-20-103; or (ii) if the Utah Population Committee estimate is not available for each county, municipality, and unincorporated area that comprise the district, the most recent official census or census estimate of the United States Bureau of the Census; and (b) two or more counties. (12) "Local advisory council" means the local advisory council created in accordance with Section 17B-2a-808.2. (13) (a) "Locally elected public official" means a person who holds an elected position with a county or municipality. (b) "Locally elected public official" does not include a person who holds an elected position if the elected position is not with a county or municipality. (14) "Managerial employee" means a person who is: (a) engaged in executive and management functions; and (b) charged with the responsibility of directing, overseeing, or implementing the effectuation of management policies and practices. (15) "Metropolitan planning organization" means the same as that term is defined in Section 72-1-208.5. (16) "Multicounty district" means a public transit district located in more than one county. (17) "Operator" means a public entity or other person engaged in the transportation of passengers for hire. (18) (a) "Public transit" means regular, continuing, shared-ride, surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income. (b) "Public transit" does not include transportation services provided by: (i) chartered bus; (ii) sightseeing bus; (iii) taxi; (iv) school bus service; (v) courtesy shuttle service for patrons of one or more specific establishments; or (vi) intra-terminal or intra-facility shuttle services. (19) "Public transit district" means a special district that provides public transit services. (20) "Public transit innovation grant" means the same as that term is defined in Section 72-2-401. (21) "Small public transit district" means any public transit district that is not a large public transit district. (22) "Station area plan" means a plan developed and adopted by a municipality in accordance with Section [10-21-203] 63N-23-104. (23) (a) "Supervisor" means a person who has authority, in the interest of the employer, to: (i) hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees; or (ii) adjust another employee's grievance or recommend action to adjust another employee's grievance. (b) "Supervisor" does not include a person whose exercise of the authority described in Subsection (23)(a): (i) is of a merely routine or clerical nature; and (ii) does not require the person to use independent judgment. (24) "Transit facility" means a transit vehicle, transit station, depot, passenger loading or unloading zone, parking lot, or other facility: (a) leased by or operated by or on behalf of a public transit district; and (b) related to the public transit services provided by the district, including: (i) railway or other right-of-way; (ii) railway line; and (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by a transit vehicle. (25) "Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle operated as public transportation by a public transit district. (26) "Transit-oriented development" means a mixed use residential or commercial area that is designed to maximize access to public transit and includes the development of land owned by a large public transit district. (27) "Transit-supportive development" means a mixed use residential or commercial area that is designed to maximize access to public transit and does not include the development of land owned by a large public transit district. Section 11. Section 17D-4-102 is amended to read: 17D-4-102 Effective 05/06/26. Definitions. As used in this chapter: (1) "Board" means the board of trustees of a public infrastructure district. (2) "Capital city" means a city of the first class that is the capital of the state that has a convention center within the boundary of the city. (3) "Convention center" means a government facility: (a) owned by the county in which the convention center is located; (b) primarily used for hosting conventions, exhibitions, trade shows, or similar events; and (c) is located within the boundaries of a city of the first class in a county of the first class. (4) "Convention center public infrastructure district" means a public infrastructure district created to finance public infrastructure and improvements associated with and benefiting a convention center area and surrounding area, including the costs to finance any public or privately owned improvements, including: (a) convention center-related improvements; (b) arena improvements; and (c) a convention center revitalization project, as that term is defined in Section [63N-3-602] 63N-23-101. (5) "Convention center public infrastructure district in a capital city" means a convention center public infrastructure district created to finance public infrastructure and improvements for a convention center in a capital city, including: (a) the costs to finance any public improvements that serve the convention center; (b) privately owned improvements if the improvements are an allowed use of funds under Section [63N-3-1403] 63N-23-803; and (c) a convention center revitalization project, as that term is defined in Section [63N-3-602] 63N-23-101. (6) "Creating entity" means the county, municipality, basic special district, or development authority that approves the creation of a public infrastructure district. (7) "Development authority" means: (a) the Utah Inland Port Authority created in Section 11-58-201; (b) the Point of the Mountain State Land Authority created in Section 11-59-201; (c) the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201; or (d) the military installation development authority created in Section 63H-1-201. (8) "District applicant" means the person proposing the creation of a public infrastructure district. (9) "Division" means a division of a public infrastructure district: (a) that is relatively equal in number of eligible voters or potential eligible voters to all other divisions within the public infrastructure district, taking into account existing or potential developments which, when completed, would increase or decrease the population within the public infrastructure district; and (b) which a member of the board represents. (10) "Governing document" means the document governing a public infrastructure district to which the creating entity agrees before the creation of the public infrastructure district, as amended from time to time, and subject to the limitations of Title 17B, Chapter 1, Provisions Applicable to All Special Districts, and this chapter. (11) (a) "Limited tax bond" means a bond: (i) that is directly payable from and secured by ad valorem property taxes that are levied: (A) by a public infrastructure district that issues the bond; and (B) on taxable property within the district; (ii) that is a general obligation of the public infrastructure district; and (iii) for which the ad valorem property tax levy for repayment of the bond does not exceed the property tax levy rate limit established under Section 17D-4-303 for any fiscal year, except as provided in Subsection 17D-4-301(13). (b) "Limited tax bond" does not include: (i) a short-term bond; (ii) a tax and revenue anticipation bond; or (iii) a special assessment bond. (12) (a) "Municipal advisor" means a person that: (i) advises a political subdivision on matters related to the issuance of bonds by governmental entities, including the pricing, sales, and marketing of bonds and the procuring of bond ratings, credit enhancement, and insurance with respect to bonds; (ii) is qualified to provide the advice described in Subsection (12)(a)(i); (iii) is not an officer or employee of the political subdivision receiving advice; (iv) has not been engaged to provide underwriting services in connection with a transaction in which the person will provide advice to the political subdivision; and (v) has experience doing business related to the issuance of bonds in the state. (b) "Municipal advisor" may include: (i) an individual who meets the description in Subsection (12)(a); or (ii) a firm of individuals who collectively meet the description in Subsection (12)(a). (13) (a) "Participation agreement" means an executed agreement between a local government [entity] and project participant, as those terms are defined in Section [63N-3-1401] 63N-23-801. (b) "Participation agreement" includes an agreement under [Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone] Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone. (14) (a) "Public infrastructure and improvements" means: (i) infrastructure, utilities, improvements, facilities, buildings, or remediation that: (A) benefit the public and are owned by a public entity or a public or private utility; (B) benefit the public and are publicly maintained or operated by a public entity; or (C) are privately owned and are expressly permitted to be acquired or financed by the public infrastructure district's governing document or an agreement between the public infrastructure district and the public infrastructure district's creating entity; (ii) publicly or privately owned roads, rights-of-way, trails, parking, or parking structures; and (iii) (A) for a convention center public infrastructure district, infrastructure, utilities, improvements, facilities, buildings, or remediation that: (I) benefit the public and are owned by a public entity or a utility; (II) benefit the public and are publicly maintained or operated by a public entity; or (III) are privately owned and provide a substantial benefit, as determined by the board of a convention center public infrastructure district, to: (Aa) the development and operation of a convention center public infrastructure district; or (Bb) the residents or property owners within the boundaries of a convention center public infrastructure district or within the boundaries of a convention center reinvestment zone to which the convention center public infrastructure district is either within or adjacent; or (B) if the infrastructure and improvements are outside of the boundaries of a convention center public infrastructure district, benefit a convention center public infrastructure district to which the convention center public infrastructure district project area is either within or adjacent. (b) "Public infrastructure and improvements" also means: (i) the same as that term is defined in Section 11-58-102, for a public infrastructure district created by the Utah Inland Port Authority created in Section 11-58-201; (ii) the same as that term is defined in Section 11-70-101, for a public infrastructure district created by the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201; (iii) the same as that term is defined in Section 63H-1-102, for a public infrastructure district created by the military installation development authority created in Section 63H-1-201; (iv) for any public infrastructure district created by a development authority, any infrastructure, utilities, improvements, facilities, buildings, or remediation that are privately owned and benefit the public; and (v) for a public infrastructure district to which tax increment revenue is pledged or distributed, any publicly or privately owned infrastructure, utilities, improvements, facilities, buildings, or remediation that is a permitted use of the tax increment revenue. (15) (a) "Tax increment revenue" means the difference between the tax revenue generated from or within a specific area and the revenue that would be generated if a base taxable value were used. (b) "Tax increment revenue" includes any concept substantially the same as the definition in Subsection (15)(a), regardless of the name of the concept. Section 12. Section 17D-4-202.1 is amended to read: 17D-4-202.1 Effective 05/06/26. Convention center public infrastructure -- District board -- Petition and process requirements -- Governing document. (1) As used is this section: (a) "City" means a municipality of the first class located in a county of the first class in which a convention center is located. (b) "County" means a county in which a convention center is located. (c) "Lessee" means a lessee of property within the proposed convention center public infrastructure district that leases the property from the city or county for a term of at least 10 years. (d) (i) "Petitioner" means: (A) a surface property owner, a property owner, or lessee of property within a proposed convention center public infrastructure district's boundaries that initiates the formation of a convention center public infrastructure district; or (B) a surface property owner under this chapter, and Title 17B, Chapter 1, Provisions Applicable to All Special Districts, in relation to a convention center public infrastructure district. (ii) "Petitioner" does not include a city, county, or other public entity. (2) A convention center public infrastructure district shall be created in a city upon the submission of a petition in accordance with this part and shall have all the powers of a public infrastructure district under this chapter. (3) A convention center public infrastructure district may only be created within a city in which a convention center is located. (4) The petition described in Subsection (2) shall: (a) include the governing document; and (b) for a petition to a city which has previously authorized revitalization taxes described in Section [63N-3-1403] 63N-23-803, include as part of the governing document approval and authorization of an interlocal agreement pledging and securing the revitalization taxes for debt of the proposed convention center public infrastructure district. (5) (a) The process for creating a convention center public infrastructure district or a convention center public infrastructure district in a capital city shall be initiated by the submission of a petition and a governing document to the city, except that: (i) the city recorder shall certify the petition within 14 days from the day the petitioner submits the petition to the city recorder; (ii) if the city recorder fails to certify the petition within the time described in Subsection (5)(a)(i), the petition shall be considered certified; and (iii) within 30 days from the day that the petitioner submits the petition to the city recorder, or if the city and the petitioner have come to an agreement as described in Subsection (5)(b), the city shall adopt a resolution to approve: (A) the governing document the petitioner submitted with the petition; and (B) the creation of a convention center public infrastructure district or a convention center public infrastructure district in a capital city. (b) Notwithstanding Subsection (5)(a), the city and petitioner may negotiate the finalized terms of the petition, including the terms of an interlocal agreement, within a time period agreed upon by the city and petitioner. (6) (a) The boundaries of a convention center public infrastructure district shall be limited to an area within a one-half-mile radius of a convention center. (b) If a parcel is intersected by the radius described in Subsection (6)(a), the entire parcel may be included in the district. (7) A convention center public infrastructure district shall be subject to the following provisions regarding taxation and financing: (a) a convention center public infrastructure district may levy an administrative tax of up to 0.0005 per dollar of taxable value on taxable property within the district; and (b) the administrative tax shall be used exclusively for administrative expenses and may not be used for capital costs or debt payment. (8) A convention center public infrastructure district shall be governed by the governing document submitted and approved as described in this section. (9) The convention center public infrastructure board shall consist of five members as follows: (a) three members shall be representatives of the petitioner and selected by the petitioner; (b) one member may be a representative of the city and selected by the mayor of the city; and (c) one member may be a representative of the county and selected by the mayor of the county. (10) If a city or county mayor chooses not to select a member of the board as described in Subsection (9)(b) or (c), elects in writing to permanently abdicate the board seat, or chooses to vacate a member at any time, the petitioner shall select a member for the replacement who shall not be a representative of the city or county in which the convention center is located. (11) (a) A convention center public infrastructure district shall enter into an interlocal agreement with the relevant county that provides that, for any revenue that is transferred to the convention center public infrastructure district from a convention center reinvestment zone created [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the mayor of the county shall have approval authority for the expenditure of any revenue related to a convention center revitalization project, as that term is defined in Section [63N-3-602] 63N-23-101. (b) The approval authority described in Subsection (11)(a) does not include approval authority over: (i) any bonds or debt or related terms issued by the convention center public infrastructure district; or (ii) revenue subject to a participation agreement entered into [pursuant to Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone] in accordance with Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone. Section 13. Section 17D-4-203 is amended to read: 17D-4-203 Effective 05/06/26. Public infrastructure district powers. (1) A public infrastructure district has all of the authority conferred upon a special district under Section 17B-1-103. (2) A public infrastructure district may: (a) issue negotiable bonds to pay: (i) all or part of the costs of acquiring, acquiring an interest in, improving, or extending any of the improvements, facilities, or property allowed under Section 11-14-103; (ii) capital costs of improvements in an energy assessment area, as defined in Section 11-42a-102, and other related costs, against the funds that the public infrastructure district will receive because of an assessment in an energy assessment area; (iii) public improvements related to the provision of housing; (iv) capital costs related to public transportation; (v) for a public infrastructure district that is within or adjacent to a housing and transit reinvestment zone described in [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, any and all costs to finance any public or privately owned improvements, which, in the discretion of the board of the public infrastructure district, promote the objectives described in [Section 63N-3-603.1] Section 63N-23-301 or 63N-23-401; (vi) the cost of acquiring or financing public infrastructure and improvements; (vii) for a public infrastructure district that is a subsidiary of or created by the Utah Inland Port Authority, the costs associated with a remediation project, as defined in Section 11-58-102; (viii) for a convention center public infrastructure district that is within or adjacent to a convention center reinvestment zone as defined in Section [63N-3-602] 63N-23-101, any or all of the costs to finance any public or privately owned improvements, including convention center-related improvements and arena improvements, which, in the discretion of the board of a convention center public infrastructure district, promote the objectives of the convention center reinvestment zone, as described in Section [63N-3-603.1] 63N-23-301; (ix) for a convention center public infrastructure district, the costs of financing a convention center revitalization project, as the term is defined in Section [63N-3-602] 63N-23-101; (x) for a convention center public infrastructure district in a capital city that is within or adjacent to a convention center reinvestment zone in a capital city, as defined in Section [63N-3-602] 63N-23-101, any or all of the costs to financing any publicly owned improvements, including the cost of financing a convention center revitalization project in a capital city, as defined in Section [63N-3-602] 63N-23-101, convention center-related improvements, and publicly or privately owned improvements that directly serve the convention center, which, in the discretion of the board of the convention center public infrastructure district in a capital city, promote the objectives of the convention center reinvestment zone in a capital city, as described in Section [63N-3-603.1] 63N-23-401; and (xi) for a convention center public infrastructure district in a capital city that is within a capital city revitalization zone project area, as defined in Section [63N-3-1401] 63N-23-801, any allowed uses of funds or revenue provided for under Section 59-12-402.5, including eligible expenses consistent with the terms of the participation agreement, except that a convention center public infrastructure district in a capital city may not issue negotiable bonds serviced by the revitalization tax under Section 59-12-402.5 for privately owned improvements for more than the maximum dollar amount described in the participation agreement. (b) enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal Cooperation Act, without the consent of the creating entity; (c) notwithstanding any other provision in code, acquire completed or partially completed improvements, including related design and consulting services and related work product, for fair market value as reasonably determined by: (i) the board; (ii) the creating entity, if required in the governing document; or (iii) a surveyor or engineer that a public infrastructure district employs or engages to perform the necessary engineering services for and to supervise the construction or installation of the improvements; (d) contract with the creating entity for the creating entity to provide administrative services on behalf of the public infrastructure district, when agreed to by both parties, in order to achieve cost savings and economic efficiencies, at the discretion of the creating entity; (e) for a public infrastructure district created by a development authority, or for a public infrastructure district created by a municipality and located in an urban renewal project area that includes some or all of an inactive industrial site: (i) (A) operate and maintain public infrastructure and improvements the district acquires or finances; and (B) use fees, assessments, or taxes to pay for the operation and maintenance of those public infrastructure and improvements; and (ii) issue bonds under Title 11, Chapter 42, Assessment Area Act; and (f) for a public infrastructure district that is a subsidiary of or created by the Utah Inland Port Authority, pay for costs associated with a remediation project, as defined in Section 11-58-102, of the Utah Inland Port Authority. (3) A public infrastructure district created by the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, may: (a) pay for the cost of the development and construction of a qualified stadium, as defined in Section 11-70-101; and (b) pay for the cost of public infrastructure and improvements. Section 14. Section 20A-7-601 is amended to read: 20A-7-601 Effective 05/06/26. Referenda -- General signature requirements -- Signature requirements for land use laws, subjurisdictional laws, and transit area land use laws -- Time requirements. (1) As used in this section: (a) "Number of active voters" means the number of active voters in the county, city, or town on the immediately preceding January 1. (b) "Qualifying county" means a county that has created a small public transit district, as defined in Section 17B-2a-802, on or before January 1, 2022. (c) "Qualifying transit area" means: (i) a station area, as defined in Section [10-21-101] 63N-23-101, for which the municipality with jurisdiction over the station area has satisfied the requirements of Subsection [10-21-203(1)(a)(i)] 63N-23-104(1)(a)(i), as demonstrated by the adoption of a station area plan or resolution under Subsection [10-21-203(1)] 63N-23-104(1); or (ii) a housing and transit reinvestment zone, as defined in Section [63N-3-602] 63N-23-101, created within a qualifying county. (d) "Subjurisdiction" means an area comprised of all precincts and subprecincts in the jurisdiction of a county, city, or town that are subject to a subjurisdictional law. (e) (i) "Subjurisdictional law" means a local law or local obligation law passed by a local legislative body that imposes a tax or other payment obligation on property in an area that does not include all precincts and subprecincts under the jurisdiction of the county, city, or town. (ii) "Subjurisdictional law" does not include a land use law. (f) "Transit area land use law" means a land use law that relates to the use of land within a qualifying transit area. (g) "Voter participation area" means an area described in Subsection 20A-7-401.3(1)(a) or (2)(b). (2) Except as provided in Subsections (3) through (5), an eligible voter seeking to have a local law passed by the local legislative body submitted to a vote of the people shall, after filing a referendum application, obtain legal signatures equal to: (a) for a county of the first class: (i) 7.75% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 7.75% of the number of active voters in at least 75% of the county's voter participation areas; (b) for a city of the first class: (i) 7.5% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 7.5% of the number of active voters in at least 75% of the city's voter participation areas; (c) for a county of the second class: (i) 8% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 8% of the number of active voters in at least 75% of the county's voter participation areas; (d) for a city of the second class: (i) 8.25% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 8.25% of the number of active voters in at least 75% of the city's voter participation areas; (e) for a county of the third class: (i) 9.5% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 9.5% of the number of active voters in at least 75% of the county's voter participation areas; (f) for a city of the third class: (i) 10% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 10% of the number of active voters in at least 75% of the city's voter participation areas; (g) for a county of the fourth class: (i) 11.5% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 11.5% of the number of active voters in at least 75% of the county's voter participation areas; (h) for a city of the fourth class: (i) 11.5% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 11.5% of the number of active voters in at least 75% of the city's voter participation areas; (i) for a city of the fifth class or a county of the fifth class, 25% of the number of active voters in the city or county; or (j) for a town or a county of the sixth class, 35% of the number of active voters in the town or county. (3) Except as provided in Subsection (4) or (5), an eligible voter seeking to have a land use law or local obligation law passed by the local legislative body submitted to a vote of the people shall, after filing a referendum application, obtain legal signatures equal to: (a) for a county of the first, second, third, or fourth class: (i) 16% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 16% of the number of active voters in at least 75% of the county's voter participation areas; (b) for a county of the fifth or sixth class: (i) 16% of the number of active voters in the county; and (ii) beginning on January 1, 2020, 16% of the number of active voters in at least 75% of the county's voter participation areas; (c) for a city of the first class: (i) 15% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 15% of the number of active voters in at least 75% of the city's voter participation areas; (d) for or a city of the second class: (i) 16% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 16% of the number of active voters in at least 75% of the city's voter participation areas; (e) for a city of the third class: (i) 27.5% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 27.5% of the number of active voters in at least 75% of the city's voter participation areas; (f) for a city of the fourth class: (i) 29% of the number of active voters in the city; and (ii) beginning on January 1, 2020, 29% of the number of active voters in at least 75% of the city's voter participation areas; (g) for a city of the fifth class, 35% of the number of active voters in the city; or (h) for a town, 40% of the number of active voters in the town. (4) A person seeking to have a subjurisdictional law passed by the local legislative body submitted to a vote of the people shall, after filing a referendum application, obtain legal signatures of the residents in the subjurisdiction equal to: (a) 10% of the number of active voters in the subjurisdiction if the number of active voters exceeds 25,000; (b) 12.5% of the number of active voters in the subjurisdiction if the number of active voters does not exceed 25,000 but is more than 10,000; (c) 15% of the number of active voters in the subjurisdiction if the number of active voters does not exceed 10,000 but is more than 2,500; (d) 20% of the number of active voters in the subjurisdiction if the number of active voters does not exceed 2,500 but is more than 500; (e) 25% of the number of active voters in the subjurisdiction if the number of active voters does not exceed 500 but is more than 250; and (f) 30% of the number of active voters in the subjurisdiction if the number of active voters does not exceed 250. (5) An eligible voter seeking to have a transit area land use law passed by the local legislative body submitted to a vote of the people shall, after filing a referendum application, obtain legal signatures equal to: (a) for a county: (i) 20% of the number of active voters in the county; and (ii) 21% of the number of active voters in at least 75% of the county's voter participation areas; (b) for a city of the first class: (i) 20% of the number of active voters in the city; and (ii) 20% of the number of active voters in at least 75% of the city's voter participation areas; (c) for a city of the second class: (i) 20% of the number of active voters in the city; and (ii) 21% of the number of active voters in at least 75% of the city's voter participation areas; (d) for a city of the third class: (i) 34% of the number of active voters in the city; and (ii) 34% of the number of active voters in at least 75% of the city's voter participation areas; (e) for a city of the fourth class: (i) 36% of the number of active voters in the city; and (ii) 36% of the number of active voters in at least 75% of the city's voter participation areas; or (f) for a city of the fifth class or a town, 40% of the number of active voters in the city or town. (6) Sponsors of any referendum petition challenging, under Subsection (2), (3), (4), or (5), any local law passed by a local legislative body shall file the application no later than the first business day that is at least five days after the day on which the local law was passed. (7) This section does not authorize a local legislative body to impose a tax or other payment obligation on a subjurisdiction in order to benefit an area outside of the subjurisdiction. Section 15. Section 32B-1-202 is amended to read: 32B-1-202 Effective 05/06/26. Proximity to community location. (1) As used in this section: (a) "Designated project area zone" means the area that is: (i) bounded by: (A) South Temple Street; (B) 100 South Street; (C) West Temple Street; and (D) 400 West Street; and (ii) within a project area as defined in Section [63N-3-1401] 63N-23-801. (b) (i) "Outlet" means: (A) a state store; (B) a package agency; or (C) a retail licensee. (ii) "Outlet" does not include: (A) an airport lounge licensee; or (B) a restaurant. (c) "Restaurant" means: (i) a full-service restaurant licensee; (ii) a limited-service restaurant licensee; (iii) a beer-only restaurant licensee; or (iv) a restaurant venue on-premise banquet licensee. (2) (a) Except as otherwise provided in this section or Section 32B-1-202.1, the commission may not issue a license for an outlet if, on the date the commission takes final action to approve or deny the application, there is a community location: (i) within 600 feet of the proposed outlet, as measured from the nearest patron entrance of the proposed outlet by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; or (ii) within 200 feet of the proposed outlet, measured in a straight line from the nearest patron entrance of the proposed outlet to the nearest property boundary of the community location. (b) Except as otherwise provided in this section or Section 32B-1-202.1, the commission may not issue a license for a restaurant if, on the date the commission takes final action to approve or deny the application, there is a community location: (i) within 300 feet of the proposed restaurant, as measured from the nearest patron entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; or (ii) within 200 feet of the proposed restaurant, measured in a straight line from the nearest patron entrance of the proposed restaurant to the nearest property boundary of the community location. (3) (a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates under a previously approved variance to one or more proximity requirements in effect before May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another outlet or restaurant with the same type of license as that outlet or restaurant, may operate under the previously approved variance regardless of whether: (i) the outlet or restaurant changes ownership; (ii) the property on which the outlet or restaurant is located changes ownership; or (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse, the property is used for a different purpose. (b) An outlet or a restaurant that has continuously operated at a location since before January 1, 2007, is considered to have a previously approved variance. (4) An outlet or restaurant that holds a license on May 12, 2020, and operates in accordance with the proximity requirements in effect at the time the commission issued the license or operates under a previously approved variance described in Subsection (3), subject to the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with the same type of license as that outlet or restaurant may operate at the premises regardless of whether: (a) the outlet or restaurant changes ownership; (b) the property on which the outlet or restaurant is located changes ownership; or (c) there is a lapse of one year or less in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse the property is used for a different purpose. (5) (a) If, after an outlet or a restaurant obtains a license under this title, a person establishes a community location on a property that puts the outlet or restaurant in violation of the proximity requirements in effect at the time the license is issued or a previously approved variance described in Subsection (3), subject to the other provisions of this title, that outlet or restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant, may operate at the premises regardless of whether: (i) the outlet or restaurant changes ownership; (ii) the property on which the outlet or restaurant is located changes ownership; or (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse the property is used for a different purpose. (b) The provisions of this Subsection (5) apply regardless of when the outlet's or restaurant's license is issued. (6) The proximity requirements described in Subsection (2) do not apply: (a) if the proposed outlet or proposed restaurant and the community location are located within the boundaries of a designated project area zone; or (b) if a local authority includes in the written consent of the local authority an acknowledgment and authorization of the outlet's or the restaurant's proximity to a public park, including any connected trail system, if the public park and connected trail system are: (i) at least 12 acres in size; (ii) on land the state owns; and (iii) managed by the Point of the Mountain State Land Authority created in Section 11-59-201. (7) Nothing in this section prevents the commission from considering the proximity of an educational, religious, and recreational facility, or any other relevant factor in reaching a decision on a proposed location of an outlet. Section 16. Section 53H-9-206 is amended to read: 53H-9-206 Effective 05/06/26. Development of university property. (1) As used in this section: (a) "Board of trustees" means the board of trustees of an eligible university. (b) "Conflict" means a situation in which a board of trustees member or a family member of a board of trustees member will or is likely to receive a direct financial benefit because of the development of eligible university property within a development area. (c) "Designation resolution" means a board of trustees' resolution designating eligible university property as a development area. (d) "Development action" means: (i) a board of trustees' deliberations on whether to adopt a designation resolution; (ii) a board of trustees' adoption of a designation resolution; (iii) a board of trustees' deliberations on whether to approve a development agreement; or (iv) a board of trustees' approval of a development agreement. (e) "Development agreement" means an agreement between an eligible university and a development partner that governs the development of eligible university property within a development area. (f) "Development area" means a single, contiguous area that: (i) consists only of eligible university property; (ii) is no larger than 75 acres; and (iii) the board of trustees designates for development or redevelopment in a designation resolution under this section. (g) "Development fund" means the fund described in and established under Subsection (4). (h) "Development partner" means a person who enters into a development agreement with an eligible university to develop or redevelop eligible university property within a development area. (i) "Direct financial benefit": (i) means any form of financial benefit that accrues to an individual directly, including: (A) compensation, commission, or any other form of a payment or increase of money; and (B) an increase in the value of a business or property; and (ii) does not include a financial benefit that accrues to the public generally. (j) "Eligible university" means an institution of higher education listed in Subsection 53H-1-102(1)(a). (k) "Eligible university property" means real property owned by an eligible university as of January 1, 2025. (l) "Family member" means a parent, spouse, sibling, child, or grandchild. (m) "Leased property" means eligible university property that: (i) is within a development area; and (ii) an eligible university leases to a private person. (n) "Privilege tax" means a tax imposed under Section 59-4-101. (2) (a) Except as provided in Subsection (2)(f), before January 1, 2035, an eligible university may, by resolution of the eligible university's board of trustees, designate eligible university property as a development area. (b) Before adopting a designation resolution, a board of trustees shall: (i) obtain approval from the Utah Board of Higher Education of the geographic area proposed to be designated as a development area; and (ii) after obtaining approval from the Utah Board of Higher Education under Subsection (2)(b)(i): (A) provide notice of the public hearing required under Subsection (2)(b)(ii)(B), as required for a class A notice under Section 63G-30-102, for at least seven days before the day of the public hearing; and (B) hold a public hearing on the proposed adoption of a designation resolution. (c) A notice under Subsection (2)(b)(ii)(A) shall include a copy of the proposed designation resolution. (d) A designation resolution, including a proposed designation resolution that accompanies a notice under Subsection (2)(b)(ii)(A), shall: (i) accurately describe the boundary of the proposed development area; (ii) describe the development that is proposed to occur in the proposed development area; and (iii) estimate the amount and sources of revenue the eligible university expects to receive from the development area. (e) Before adopting a designation resolution, a board of trustees may modify the proposed designation resolution to: (i) address concerns raised in a public hearing held under Subsection (2)(b)(ii)(B); or (ii) clarify or adjust provisions of the proposed designation resolution, as the board of trustees considers appropriate. (f) A board of trustees may not adopt a designation resolution if: (i) the board of trustees has previously adopted a designation resolution; or (ii) the area in the proposed development area would overlap with part or all of: (A) a community reinvestment project area created under Title 17C, Chapter 5, Part 1, Community Reinvestment Project Area Plan, as that project area exists on January 1, 2025; or (B) a housing and transit reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, as that zone exists on January 1, 2025. (3) Within 30 days after a board of trustees' adoption of a designation resolution, the board of trustees or the board of trustees' delegee shall deliver a copy of the designation resolution to: (a) the clerk of the municipality in which the development area that is the subject of the designation resolution is located; and (b) the assessor, treasurer, and auditor of the county in which the development area that is the subject of the designation resolution is located. (4) (a) Upon adoption of a designation resolution, a board of trustees shall establish a separate fund related to the development area that is the subject of the designation resolution. (b) An eligible university shall deposit into a development fund all money the eligible university receives from the development and lease of eligible university property within a development area. (c) Money in a development fund shall be accounted for separately from any other fund of the eligible university. (d) An eligible university may use money in a development fund for: (i) expenses associated with the development of the development area; (ii) capital facility projects of the eligible university; (iii) operation and maintenance costs associated with capital facilities of the eligible university; or (iv) any other eligible university-related purpose. (5) An eligible university may enter into a development agreement. (6) (a) A board of trustees member may not participate in a development action if the board of trustees member or a family member of the board of trustees member owns an interest in, is directly affiliated with, or is an employee or officer of a private firm, private company, or other private entity that the board of trustees member reasonably believes is likely to participate in or receive a direct financial benefit from the development of land that is the subject of a development agreement. (b) Before the board of trustees approves a development agreement, the board of trustees shall require any member with a conflict to disclose the conflict in writing to the board of trustees. (c) Nothing in this Subsection (6) affects the application or effect of any other code provision applicable to a board of trustees member relating to ethics or conflicts of interest. (7) (a) Beginning January 1 of the year immediately following the execution of a development agreement, the possession or other beneficial use enjoyed by a person of leased property that is located within the development area subject to the development agreement shall be subject to Title 59, Chapter 4, Privilege Tax, if that leased property is used in connection with a business conducted for profit. (b) The treasurer of the county in which the leased property described in Subsection (7)(a) is located shall, in the manner and at the time provided in Section 59-2-1365: (i) collect privilege tax from a lessee of the leased property; and (ii) distribute 80% of the privilege tax revenue to the eligible university. (8) (a) A board of trustees shall present a written report to the Higher Education Appropriations Subcommittee no later than September 30 of each year after the board of trustees' adoption of a designation resolution. (b) A report under Subsection (8)(a) shall: (i) describe the development taking place or expected to take place within the development area; and (ii) provide a summary of money deposited into and expended from the development fund for that development area. Section 17. Section 59-1-306 is amended to read: 59-1-306 Effective 05/06/26. Definition -- State Tax Commission Administrative Charge Account -- Amount of administrative charge -- Deposit of revenue into the restricted account -- Interest deposited into General Fund -- Expenditure of money deposited into the restricted account. (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the commission administers under: (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act; (c) Section 19-6-714; (d) Section 19-6-805; (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act; (f) Section 59-27-105; (g) Chapter 31, Cannabinoid Licensing and Tax Act; (h) Chapter 32, Local Impact Mitigation Tax Act; (i) Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax; (j) Section 63H-1-205; (k) [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone;[or] (l) Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone; (m) Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City; [(l)] (n) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges; or [(m)] (o) Title 79, Chapter 6, Part [11] 14, Energy Project Assessment. (2) There is created a restricted account within the General Fund known as the "State Tax Commission Administrative Charge Account." (3) Subject to the other provisions of this section, the restricted account shall consist of administrative charges the commission retains and deposits in accordance with this section. (4) For purposes of this section, the administrative charge is a percentage of revenue the commission collects from each qualifying tax, fee, or charge of not to exceed the lesser of: (a) 1.5%; or (b) an equal percentage of revenue the commission collects from each qualifying tax, fee, or charge sufficient to cover the cost to the commission of administering the qualifying taxes, fees, or charges. (5) The commission shall deposit an administrative charge into the restricted account. (6) Interest earned on the restricted account shall be deposited into the General Fund. (7) The commission shall expend money appropriated by the Legislature to the commission from the restricted account to administer qualifying taxes, fees, or charges or to offset general operational expenses. Section 18. Section 59-2-924 is amended to read: 59-2-924 Effective 05/06/26. Definitions -- Report of valuation of property to county auditor and commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the commission. (1) As used in this section: (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with this chapter. (ii) "Ad valorem property tax revenue" does not include: (A) interest; (B) penalties; (C) collections from redemptions; or (D) revenue received by a taxing entity from personal property that is semiconductor manufacturing equipment assessed by a county assessor in accordance with Part 3, County Assessment. (b) "Adjusted tax increment" means the same as that term is defined in Section 17C-1-102. (c) (i) "Aggregate taxable value of all property taxed" means: (A) the aggregate taxable value of all real property a county assessor assesses in accordance with Part 3, County Assessment, for the current year; (B) the aggregate taxable value of all real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the current year; and (C) the aggregate year end taxable value of all personal property a county assessor assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls of the taxing entity. (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year end taxable value of personal property that is: (A) semiconductor manufacturing equipment assessed by a county assessor in accordance with Part 3, County Assessment; and (B) contained on the prior year's tax rolls of the taxing entity. (d) "Base taxable value" means: (i) for an authority created under Section 11-58-201, the same as that term is defined in Section 11-58-102; (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, the same as that term is defined in Section [11-59-207] 11-59-208; (iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the same as that term is defined in Section 11-70-101; (iv) for an agency created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102; (v) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102; (vi) for a host local government, the same as that term is defined in Section 63N-2-502; (vii) for a housing and transit reinvestment zone or convention center reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the same as that term is defined in Section 63N-3-602;] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as that term is defined in Section 63N-23-101; (viii) for a home ownership promotion zone created under [Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone] Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, a property's taxable value as shown upon the assessment roll last equalized during the base year, as that term is defined in Section [10-21-101] 63N-23-501 or [Section 17-80-101] 63N-23-601; (ix) for a first home investment zone created under [Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] Title 63N, Chapter 23, Part 7, First Home Investment Zone, a property's taxable value as shown upon the assessment roll last equalized during the base year, as that term is defined in Section [63N-3-1601] 63N-23-701; (x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, a property's taxable value as shown upon the assessment roll last equalized during the property tax base year, as that term is defined in Section 63N-3-1701; or (xi) for an electrical energy development zone created under Section 79-6-1104, the value of the property within an electrical energy development zone, as shown on the assessment roll last equalized before the creation of the electrical development zone, as that term is defined in Section 79-6-1104. (e) "Centrally assessed benchmark value" means an amount equal to the average year end taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous three calendar years, adjusted for taxable value attributable to: (i) an annexation to a taxing entity; (ii) an incorrect allocation of taxable value of real or personal property the commission assesses in accordance with Part 2, Assessment of Property; or (iii) a change in value as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or administrative order. (f) "Centrally assessed industry" means the following industry classes the commission assesses in accordance with Part 2, Assessment of Property: (i) air carrier; (ii) coal; (iii) coal load out property; (iv) electric generation; (v) electric rural; (vi) electric utility; (vii) gas utility; (viii) ground access property; (ix) land only property; (x) liquid pipeline; (xi) metalliferous mining; (xii) nonmetalliferous mining; (xiii) oil and gas gathering; (xiv) oil and gas production; (xv) oil and gas water disposal; (xvi) railroad; (xvii) sand and gravel; and (xviii) uranium. (g) (i) "Centrally assessed new growth" means the greater of: (A) for each centrally assessed industry, zero; or (B) the amount calculated by subtracting the centrally assessed benchmark value for each centrally assessed industry, adjusted for prior year end incremental value, from the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for each centrally assessed industry for the current year, adjusted for current year incremental value. (ii) "Centrally assessed new growth" does not include a change in value for a centrally assessed industry as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or administrative order. (h) "Certified tax rate" means a tax rate that will provide the same ad valorem property tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year. (i) "Community reinvestment agency" means the same as that term is defined in Section 17C-1-102. (j) "Eligible new growth" means the greater of: (i) zero; or (ii) the sum of: (A) locally assessed new growth; (B) centrally assessed new growth; and (C) project area new growth or hotel property new growth. (k) "Host local government" means the same as that term is defined in Section 63N-2-502. (l) "Hotel property" means the same as that term is defined in Section 63N-2-502. (m) "Hotel property new growth" means an amount equal to the incremental value that is no longer provided to a host local government as incremental property tax revenue. (n) "Incremental property tax revenue" means the same as that term is defined in Section 63N-2-502. (o) "Incremental value" means: (i) for an authority created under Section 11-58-201, the amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property that is located within a project area and on which property tax differential is collected; and (B) the number that represents the percentage of the property tax differential that is paid to the authority; (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, an amount calculated by multiplying: (A) the difference between the current assessed value of the property and the base taxable value; and (B) the number that represents the percentage of the property tax augmentation, as defined in Section [11-59-207] 11-59-208, that is paid to the Point of the Mountain State Land Authority; (iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the amount calculated by multiplying: (A) the difference between the taxable value for the current year and the base taxable value of the property that is located within a project area; and (B) the number that represents the percentage of enhanced property tax revenue, as defined in Section 11-70-101; (iv) for an agency created under Section 17C-1-201.5, the amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property located within a project area and on which tax increment is collected; and (B) the number that represents the adjusted tax increment from that project area that is paid to the agency; (v) for an authority created under Section 63H-1-201, the amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property located within a project area and on which property tax allocation is collected; and (B) the number that represents the percentage of the property tax allocation from that project area that is paid to the authority; (vi) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property that is located within a housing and transit reinvestment zone or convention center reinvestment zone and on which tax increment is collected; and (B) the number that represents the percentage of the tax increment that is paid to the housing and transit reinvestment zone or convention center reinvestment zone; (vii) for a host local government, an amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the hotel property on which incremental property tax revenue is collected; and (B) the number that represents the percentage of the incremental property tax revenue from that hotel property that is paid to the host local government; (viii) for a home ownership promotion zone created [under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone] in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, an amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property that is located within a home ownership promotion zone and on which tax increment is collected; and (B) the number that represents the percentage of the tax increment that is paid to the home ownership promotion zone; (ix) for a first home investment zone created in accordance with [Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] Title 63N, Chapter 23, Part 7, First Home Investment Zone, an amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property that is located within a first home investment zone and on which tax increment is collected; and (B) the number that represents the percentage of the tax increment that is paid to the first home investment zone; (x) for a major sporting event venue zone created [pursuant to] in accordance with Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property located within a qualified development zone for a major sporting event venue zone and upon which property tax increment is collected; and (B) the number that represents the percentage of tax increment that is paid to the major sporting event venue zone, as approved by a major sporting event venue zone committee described in Section 63N-1a-1706; or (xi) for an electrical energy development zone created under Section 79-6-1104, the amount calculated by multiplying: (A) the difference between the taxable value and the base taxable value of the property that is located within the electrical energy developmental zone; and (B) the number that represents the percentage of the tax increment that is paid to a community reinvestment agency and the Electrical Energy Development Investment Fund created in Section 79-6-1105. (p) (i) "Locally assessed new growth" means the greater of: (A) zero; or (B) the amount calculated by subtracting the year end taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the previous year, adjusted for prior year end incremental value from the taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted for current year incremental value. (ii) "Locally assessed new growth" does not include a change in: (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or another adjustment; (B) assessed value based on whether a property is allowed a residential exemption for a primary residence under Section 59-2-103; (C) assessed value based on whether a property is assessed under Part 5, Farmland Assessment Act; or (D) assessed value based on whether a property is assessed under Part 17, Urban Farming Assessment Act. (q) "Project area" means: (i) for an authority created under Section 11-58-201, the same as that term is defined in Section 11-58-102; (ii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the same as that term is defined in Section 11-70-101; (iii) for an agency created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102; (iv) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102; (v) for a housing and transit reinvestment zone or convention center reinvestment zone created [under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Convention Center Reinvestment Zone in a Capital City, the same as that term is defined in Section [63N-3-602] 63N-23-101; (vi) for a home ownership promotion zone created [under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone] in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, the same as that term is defined in [Section 10-21-101 or Section 17-80-101] Section 63N-23-101; (vii) for a first home investment zone created [under Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone, the same as that term is defined in Section [63N-3-1601] 63N-23-701; or (viii) for a major sporting event venue zone established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, the qualified development zone, as defined in Section 63N-3-1701. (r) "Project area new growth" means: (i) for an authority created under Section 11-58-201, an amount equal to the incremental value that is no longer provided to an authority as property tax differential; (ii) for the Point of the Mountain State Land Authority created in Section 11-59-201, an amount equal to the incremental value that is no longer provided to the Point of the Mountain State Land Authority as property tax augmentation, as defined in Section [11-59-207] 11-59-208; (iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, an amount equal to the incremental value that is no longer provided to the Utah Fairpark Area Investment and Restoration District; (iv) for an agency created under Section 17C-1-201.5, an amount equal to the incremental value that is no longer provided to an agency as tax increment; (v) for an authority created under Section 63H-1-201, an amount equal to the incremental value that is no longer provided to an authority as property tax allocation; (vi) for a housing and transit reinvestment zone or convention center reinvestment zone created [under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount equal to the incremental value that is no longer provided to a housing and transit reinvestment zone or convention center reinvestment zone as tax increment; (vii) for a home ownership promotion zone created [under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone] in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, an amount equal to the incremental value that is no longer provided to a home ownership promotion zone as tax increment; (viii) for a first home investment zone created under [Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] Title 63N, Chapter 23, Part 7, First Home Investment Zone, an amount equal to the incremental value that is no longer provided to a first home investment zone as tax increment; or (ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount equal to the incremental value that is no longer provided to the creating entity of a major sporting event venue zone as property tax increment. (s) "Project area incremental revenue" means the same as that term is defined in Section 17C-1-1001. (t) "Property tax allocation" means the same as that term is defined in Section 63H-1-102. (u) "Property tax differential" means the same as that term is defined in Sections 11-58-102 and 79-6-1104. (v) "Tax increment" means: (i) for a project created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102; (ii) for a housing and transit reinvestment zone or convention center reinvestment zone created [under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as the term "property tax increment" is defined in Section [63N-3-602] 63N-23-101; (iii) for a home ownership promotion zone created [under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone] in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for Counties, the same as that term is defined in Section 10-21-101 or [Section] 17-80-101; (iv) for a first home investment zone created [under Title 63N, Chapter 3, Part 16, First Home Investment Zone Act] in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone, the same as that term is defined in Section [63N-3-1601] 63N-23-701; or (v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, property tax increment, as that term is defined in Section 63N-3-1701. (2) Before June 1 of each year, each county assessor shall deliver to the county auditor and the commission the following statements: (a) a statement containing the aggregate valuation of all taxable real property a county assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and (b) a statement containing the taxable value of all personal property a county assessor assesses in accordance with Part 3, County Assessment, from the prior year end values. (3) The county auditor shall, on or before June 8, transmit to the governing body of each taxing entity: (a) the statements described in Subsections (2)(a) and (b); (b) an estimate of the revenue from personal property; (c) the certified tax rate; and (d) all forms necessary to submit a tax levy request. (4) (a) Except as otherwise provided in this section, the certified tax rate shall be calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the prior year by the amount calculated under Subsection (4)(b). (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall calculate an amount as follows: (i) calculate for the taxing entity the difference between: (A) the aggregate taxable value of all property taxed; and (B) any adjustments for current year incremental value; (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the average of the percentage net change in the value of taxable property for the equalization period for the three calendar years immediately [preceding] before the current calendar year; (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product of: (A) the amount calculated under Subsection (4)(b)(ii); and (B) the percentage of property taxes collected for the five calendar years immediately [preceding] before the current calendar year; and (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount determined by: (A) multiplying the percentage of property taxes collected for the five calendar years immediately [preceding] before the current calendar year by eligible new growth; and (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount calculated under Subsection (4)(b)(iii). (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated as follows: (a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified tax rate is zero; (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is: (i) in a county of the first, second, or third class, the levy imposed for municipal-type services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services to Unincorporated Areas; and (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county purposes and such other levies imposed solely for the municipal-type services identified in Section 17-78-501 and Subsection 17-63-101(23); (c) for a community reinvestment agency that received all or a portion of a taxing entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4) except that the commission shall treat the total revenue transferred to the community reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the prior year; and (d) for debt service voted on by the public, the certified tax rate is the actual levy imposed by that section, except that a certified tax rate for the following levies shall be calculated in accordance with Section 59-2-913 and this section: (i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and (ii) a levy to pay for the costs of state legislative mandates or judicial or administrative orders under Section 59-2-1602. (6) (a) A taxing entity may impose a judgment levy under Section 59-2-1328 or 59-2-1330 at a rate that is sufficient to generate only the revenue required to satisfy one or more eligible judgments. (b) The ad valorem property tax revenue generated by a judgment levy described in Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax rate. (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use: (i) the taxable value of real property: (A) the county assessor assesses in accordance with Part 3, County Assessment; and (B) contained on the assessment roll; (ii) the year end taxable value of personal property: (A) a county assessor assesses in accordance with Part 3, County Assessment; and (B) contained on the prior year's assessment roll; and (iii) the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property. (b) For purposes of Subsection (7)(a), taxable value does not include eligible new growth. (8) (a) On or before June 30 of each year, a taxing entity shall adopt a tentative budget. (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify the county auditor of: (i) the taxing entity's intent to exceed the certified tax rate; and (ii) the amount by which the taxing entity proposes to exceed the certified tax rate. (c) The county auditor shall notify property owners of any intent to levy a tax rate that exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1. (9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim Committee if: (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end taxable value of the real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental value; and (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end taxable value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the previous year. (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by subtracting the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the current year, adjusted for current year incremental value, from the year end taxable value of the real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental value. (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by subtracting the total taxable value of real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the current year, from the total year end taxable value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the previous year. (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet the requirement under Subsection (9)(a)(ii). Section 19. Section 59-12-103 is amended to read: 59-12-103 Effective 05/06/26 Superseded 07/01/26. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use tax revenue. (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales price for amounts paid or charged for the following transactions: (a) retail sales of tangible personal property made within the state; (b) amounts paid for: (i) telecommunications service, other than mobile telecommunications service, that originates and terminates within the boundaries of this state; (ii) mobile telecommunications service that originates and terminates within the boundaries of one state only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or (iii) an ancillary service associated with a: (A) telecommunications service described in Subsection (1)(b)(i); or (B) mobile telecommunications service described in Subsection (1)(b)(ii); (c) sales of the following for commercial use: (i) gas; (ii) electricity; (iii) heat; (iv) coal; (v) fuel oil; or (vi) other fuels; (d) sales of the following for residential use: (i) gas; (ii) electricity; (iii) heat; (iv) coal; (v) fuel oil; or (vi) other fuels; (e) sales of prepared food; (f) except as provided in Section 59-12-104, amounts paid or charged as admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity; (g) amounts paid or charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for: (i) the tangible personal property; and (ii) parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(g)(i), regardless of whether: (A) any parts are actually used in the repairs or renovations of that tangible personal property; or (B) the particular parts used in the repairs or renovations of that tangible personal property are exempt from a tax under this chapter; (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted cleaning or washing of tangible personal property; (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer court accommodations and services; (j) amounts paid or charged for laundry or dry cleaning services; (k) amounts paid or charged for leases or rentals of tangible personal property if within this state the tangible personal property is: (i) stored; (ii) used; or (iii) otherwise consumed; (l) amounts paid or charged for tangible personal property if within this state the tangible personal property is: (i) stored; (ii) used; or (iii) consumed; (m) amounts paid or charged for a sale: (i) (A) of a product transferred electronically; or (B) of a repair or renovation of a product transferred electronically; and (ii) regardless of whether the sale provides: (A) a right of permanent use of the product; or (B) a right to use the product that is less than a permanent use, including a right: (I) for a definite or specified length of time; and (II) that terminates upon the occurrence of a condition; and (n) sales of leased tangible personal property from the lessor to the lessee made in the state. (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of: (i) a state tax imposed on the transaction at a tax rate equal to the sum of: (A) 4.70% plus the rate specified in Subsection (11)(a); and (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part. (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to the sum of: (i) a state tax imposed on the transaction at a tax rate of 2%; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part. (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of: (i) a state tax imposed on the amounts paid or charged for food and food ingredients at a tax rate of 1.75%; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the amounts paid or charged for food and food ingredients under this chapter other than this part. (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at a rate of 4.85%. (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle owner. (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is required once during the time that the shared vehicle owner owns the shared vehicle. (C) The commission shall verify that a shared vehicle is an individual-owned shared vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the purchase of the shared vehicle. (D) The exception under Subsection (2)(e)(i)(A) applies to a certified individual-owned shared vehicle shared through a car-sharing program even if non-certified shared vehicles are also available to be shared through the same car-sharing program. (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing. (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i). (B) If a car-sharing program relies in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any tax, penalty, fee, or other sanction imposed on the shared vehicle owner. (iv) If all shared vehicles shared through a car-sharing program are certified as described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period. (v) A car-sharing program is not required to list or otherwise identify an individual-owned shared vehicle on a return or an attachment to a return. (vi) A car-sharing program shall: (A) retain tax information for each car-sharing program transaction; and (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at the commission's request. (f) (i) For a bundled transaction that is attributable to food and food ingredients and tangible personal property other than food and food ingredients, a state tax and a local tax is imposed on the entire bundled transaction equal to the sum of: (A) a state tax imposed on the entire bundled transaction equal to the sum of: (I) the tax rate described in Subsection (2)(a)(i)(A); and (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional State Sales and Use Tax Act; and (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii). (ii) If an optional computer software maintenance contract is a bundled transaction that consists of taxable and nontaxable products that are not separately itemized on an invoice or similar billing document, the purchase of the optional computer software maintenance contract is 40% taxable under this chapter and 60% nontaxable under this chapter. (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled transaction described in Subsection (2)(f)(i) or (ii): (A) if the sales price of the bundled transaction is attributable to tangible personal property, a product, or a service that is subject to taxation under this chapter and tangible personal property, a product, or service that is not subject to taxation under this chapter, the entire bundled transaction is subject to taxation under this chapter unless: (I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is not subject to taxation under this chapter from the books and records the seller keeps in the seller's regular course of business; or (II) state or federal law provides otherwise; or (B) if the sales price of a bundled transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire bundled transaction is subject to taxation under this chapter at the higher tax rate unless: (I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business; or (II) state or federal law provides otherwise. (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction: (A) separately states the portion of the transaction that is not subject to taxation under this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or (B) is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter. (ii) A purchaser and a seller may correct the taxability of a transaction if: (A) after the transaction occurs, the purchaser and the seller discover that the portion of the transaction that is not subject to taxation under this chapter was not separately stated on an invoice, bill of sale, or similar document provided to the purchaser because of an error or ignorance of the law; and (B) the seller is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter. (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (h) (i) If the sales price of a transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate unless the seller, at the time of the transaction: (A) separately states the items subject to taxation under this chapter at each of the different rates on an invoice, bill of sale, or similar document provided to the purchaser; or (B) is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business. (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate imposed under the following shall take effect on the first day of a calendar quarter: (i) Subsection (2)(a)(i)(A); (ii) Subsection (2)(b)(i); (iii) Subsection (2)(c)(i); or (iv) Subsection (2)(f)(i)(A)(I). (j) (i) A tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the tax rate increase if the billing period for the transaction begins before the effective date of a tax rate increase imposed under: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(b)(i); (C) Subsection (2)(c)(i); or (D) Subsection (2)(f)(i)(A)(I). (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(b)(i); (C) Subsection (2)(c)(i); or (D) Subsection (2)(f)(i)(A)(I). (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax rate takes effect: (A) on the first day of a calendar quarter; and (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change. (ii) Subsection (2)(k)(i) applies to the tax rates described in the following: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(b)(i); (C) Subsection (2)(c)(i); or (D) Subsection (2)(f)(i)(A)(I). (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location. (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil, or other fuel is furnished through a single meter for two or more of the following uses: (A) a commercial use; (B) an industrial use; or (C) a residential use. (3) (a) The following state taxes shall be deposited into the General Fund: (i) the tax imposed by Subsection (2)(a)(i)(A); (ii) the tax imposed by Subsection (2)(b)(i); (iii) the tax imposed by Subsection (2)(c)(i); and (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). (b) The following local taxes shall be distributed to a county, city, or town as provided in this chapter: (i) the tax imposed by Subsection (2)(a)(ii); (ii) the tax imposed by Subsection (2)(b)(ii); (iii) the tax imposed by Subsection (2)(c)(ii); and (iv) the tax imposed by Subsection (2)(f)(i)(B). (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General Fund. (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b) through (g): (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated: (A) by a 1/16% tax rate on the transactions described in Subsection (1); and (B) for the fiscal year; or (ii) $17,500,000. (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount described in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to the Division of Wildlife Resources to: (A) implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species; or (B) award grants, up to the amount authorized by the Legislature in an appropriations act, to political subdivisions of the state to implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species. (ii) Money transferred to the Division of Wildlife Resources under Subsection (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other person to list or attempt to have listed a species as threatened or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq. (iii) At the end of each fiscal year: (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24; (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5. (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to the Division of Conservation created in Section 4-46-401 to implement water related programs. (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water rights. (ii) At the end of each fiscal year: (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24; (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5. (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described in Subsection (4)(a) shall be deposited into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources. (ii) In addition to the uses allowed of the Water Resources Conservation and Development Fund under Section 73-10-24, the Water Resources Conservation and Development Fund may also be used to: (A) conduct hydrologic and geotechnical investigations by the Division of Water Resources in a cooperative effort with other state, federal, or local entities, for the purpose of quantifying surface and ground water resources and describing the hydrologic systems of an area in sufficient detail so as to enable local and state resource managers to plan for and accommodate growth in water use without jeopardizing the resource; (B) fund state required dam safety improvements; and (C) protect the state's interest in interstate water compact allocations, including the hiring of technical and legal staff. (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects. (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to: (i) provide for the installation and repair of collection, treatment, storage, and distribution facilities for any public water system, as defined in Section 19-4-102; (ii) develop underground sources of water, including springs and wells; and (iii) develop surface water sources. (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2006, the difference between the following amounts shall be expended as provided in this Subsection (5), if that difference is greater than $1: (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and (ii) $17,500,000. (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be: (A) transferred each fiscal year to the Department of Natural Resources as designated sales and use tax revenue; and (B) expended by the Department of Natural Resources for watershed rehabilitation or restoration. (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24. (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the remaining difference described in Subsection (5)(a) shall be: (A) transferred each fiscal year to the Division of Water Resources as designated sales and use tax revenue; and (B) expended by the Division of Water Resources for cloud-seeding projects authorized by Title 73, Chapter 15, Modification of Weather. (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24. (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the remaining difference described in Subsection (5)(a) shall be deposited into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources for: (i) preconstruction costs: (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter 26, Bear River Development Act; and (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73, Chapter 26, Bear River Development Act; (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii). (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the remaining difference described in Subsection (5)(a) shall be deposited each year into the Water Rights Restricted Account created by Section 73-2-1.6. (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection (1) for the fiscal year. (7) (a) Notwithstanding Subsection (3)(a) and subject to Subsections (7)(b), (c), and (d), for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 24% of the revenue collected from the following sales and use taxes: (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; (ii) the tax imposed by Subsection (2)(b)(i); (iii) the tax imposed by Subsection (2)(c)(i); and (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). (b) (i) For a fiscal year beginning on or after July 1, 2024, the commission shall annually reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by an amount equal to.44% of the revenue collected from the following sales and use taxes: (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; (B) the tax imposed by Subsection (2)(b)(i); (C) the tax imposed by Subsection (2)(c)(i); and (D) the tax imposed by Subsection (2)(f)(i)(A)(I). (ii) The commission shall annually deposit the amount described in Subsection (7)(b)(i) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124. (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1, 2023, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of: (A) the amount of revenue generated in the current fiscal year by the portion of taxes listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iv); (B) the amount of revenue generated in the current fiscal year by registration fees designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund of 2005; and (C) revenue transferred by the Division of Finance to the Transportation Investment Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year. (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a given fiscal year. (iii) The commission shall annually deposit the amount described in Subsection (7)(c)(i) into the Active Transportation Investment Fund created in Subsection [72-2-124(11)] 72-2-124(12). (d) (i) For a fiscal year beginning on or after July 1, 2024, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under this Subsection (7) by an amount that is equal to 1% of the revenue collected from the following sales and use taxes: (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; (B) the tax imposed by Subsection (2)(b)(i); (C) the tax imposed by Subsection (2)(c)(i); and (D) the tax imposed by Subsection (2)(f)(i)(A)(I). (ii) The commission shall annually deposit the amount described in Subsection (7)(d)(i) into the Commuter Rail Subaccount created in Section 72-2-124. (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1, 2018, the commission shall annually deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) in an amount equal to 3.68% of the revenue collected from the following taxes: (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; (ii) the tax imposed by Subsection (2)(b)(i); (iii) the tax imposed by Subsection (2)(c)(i); and (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon. (c) The commission shall annually deposit the amount described in Subsection (8)(b) into the Transit Transportation Investment Fund created in Section 72-2-124. (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009. (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the fiscal year during which the commission receives notice under Section 63N-2-510 that construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in Section 63N-2-512. (11) (a) The rate specified in this subsection is 0.15%. (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into the Medicaid ACA Fund created in Section 26B-1-315. (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit solely for use of the Search and Rescue Financial Assistance Program created in, and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act. (13) (a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (17), (18), and (19), and as described in Section [63N-3-610] 63N-23-206, beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 15% of the sales and use tax increment from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, into the Transit Transportation Investment Fund created in Section 72-2-124. (b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and except as provided in Subsections (17), (18), and (19), and as described in Section [63N-3-610.1] 63N-23-406, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment as defined in Section [63N-3-602] 63N-23-101 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 and specified in the convention center reinvestment zone proposal submitted [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City. (14) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2025, the commission shall, in accordance with Subsection (14)(b), transfer a portion of the taxes listed under Subsection (3)(a) equal to 1% of the revenue collected from the following sales and use taxes: (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; (ii) the tax imposed by Subsection (2)(b)(i); (iii) the tax imposed by Subsection (2)(c)(i); and (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). (b) The commission shall transfer the portion of the taxes described in Subsection (14)(a) as follows: (i) into the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902, an amount equal to the amount that was deposited into the Outdoor Adventure Infrastructure Restricted Account in fiscal year 2025; and (ii) for any amount exceeding the amount described in Subsection (14)(b)(i), 50% into the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201. (15) Notwithstanding Subsection (3)(a) and except as provided in Subsections (17), (18), and (19), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within the district sales tax area, as defined in Section 11-70-101. (16) (a) As used in this Subsection (16): (i) "Additional land" means point of the mountain state land described in Subsection 11-59-102(6)(b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (16)(c). (ii) "Point of the mountain authority" means the Point of the Mountain State Land Authority, created in Section 11-59-201. (iii) "Point of the mountain state land" means the same as that term is defined in Section 11-59-102. (b) Notwithstanding Subsection (3)(a) and except as provided in Subsection (17), (18), and (19), the commission shall distribute to the point of the mountain authority 50% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the mountain state land. (c) The distribution under Subsection (16)(b) shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map that: (i) accurately describes the point of the mountain state land; and (ii) the point of the mountain authority certifies as accurate. (d) A distribution under Subsection (16)(b) with respect to additional land shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map of point of the mountain state land that: (i) accurately describes the point of the mountain state land, including the additional land; and (ii) the point of the mountain authority certifies as accurate. (e) (i) Upon the payment in full of bonds secured by the sales and use tax revenue distributed to the point of the mountain authority under Subsection (16)(b), the point of the mountain authority shall immediately notify the commission in writing that the bonds are paid in full. (ii) The commission shall discontinue distributions of sales and use tax revenue under Subsection (16)(b) at the beginning of the calendar quarter that begins at least 90 days after the date that the commission receives the written notice under Subsection (16)(e)(i). (17) (a) As used in this Subsection (17): (i) "Applicable percentage" means: (A) for a housing and transit reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, 15% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (17)(a)(ii)(A); (B) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (17)(a)(ii)(B); and (C) for the Point of the Mountain State Land Authority created in Section 11-59-201, 50% of the revenue from sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (17)(a)(ii)(C). (ii) "Qualified development zone" means: (A) the sales and use tax boundary of a housing and transit reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201; or (C) the sales and use tax boundary of point of the mountain state land, as defined in Section 11-59-102, under the Point of the Mountain State Land Authority created in Section 11-59-201. (iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be deposited into the General Fund. (18) (a) As used in Subsections (18) and (19): (i) "Applicable percentage" means, for a convention center reinvestment zone created in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount equal to 50% of the sales and use tax increment, as that term is defined in Section [63N-3-602] 63N-23-101, from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (18)(a)(ii). (ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City. (iii) "Qualifying construction materials" means construction materials that are: (A) delivered to a delivery outlet within a qualified development zone; and (B) intended to be permanently attached to real property within the qualified development zone. (b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (18)(c) to a qualified development zone if the seller of the construction materials: (i) establishes a delivery outlet with the commission within the qualified development zone; (ii) reports the sales of the construction materials to the delivery outlet described in Subsection (18)(b)(i); and (iii) does not report the sales of the construction materials on a simplified electronic return. (c) For the purposes of Subsection (18)(b), the product is equal to: (i) the sales price or purchase price of the qualifying construction materials; and (ii) the applicable percentage. (19) (a) As used in this Subsection (19), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the General Fund. Section 20. Section 59-12-103 is amended to read: 59-12-103 Effective 07/01/26. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use tax revenue. (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales price for amounts paid or charged for the following transactions: (a) retail sales of tangible personal property made within the state; (b) amounts paid for: (i) telecommunications service, other than mobile telecommunications service, that originates and terminates within the boundaries of this state; (ii) mobile telecommunications service that originates and terminates within the boundaries of one state only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or (iii) an ancillary service associated with a: (A) telecommunications service described in Subsection (1)(b)(i); or (B) mobile telecommunications service described in Subsection (1)(b)(ii); (c) sales of the following for commercial use: (i) gas; (ii) electricity; (iii) heat; (iv) coal; (v) fuel oil; or (vi) other fuels; (d) sales of the following for residential use: (i) gas; (ii) electricity; (iii) heat; (iv) coal; (v) fuel oil; or (vi) other fuels; (e) sales of prepared food; (f) except as provided in Section 59-12-104, amounts paid or charged as admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity; (g) amounts paid or charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for: (i) the tangible personal property; and (ii) parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(g)(i), regardless of whether: (A) any parts are actually used in the repairs or renovations of that tangible personal property; or (B) the particular parts used in the repairs or renovations of that tangible personal property are exempt from a tax under this chapter; (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted cleaning or washing of tangible personal property; (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer court accommodations and services; (j) amounts paid or charged for laundry or dry cleaning services; (k) amounts paid or charged for leases or rentals of tangible personal property if within this state the tangible personal property is: (i) stored; (ii) used; or (iii) otherwise consumed; (l) amounts paid or charged for tangible personal property if within this state the tangible personal property is: (i) stored; (ii) used; or (iii) consumed; (m) amounts paid or charged for a sale: (i) (A) of a product transferred electronically; or (B) of a repair or renovation of a product transferred electronically; and (ii) regardless of whether the sale provides: (A) a right of permanent use of the product; or (B) a right to use the product that is less than a permanent use, including a right: (I) for a definite or specified length of time; and (II) that terminates upon the occurrence of a condition; and (n) sales of leased tangible personal property from the lessor to the lessee made in the state. (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of: (i) a state tax imposed on the transaction at a tax rate equal to the sum of: (A) 4.70%; (B) the rate specified in Subsection (6)(a); and (C) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part. (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to the sum of: (i) a state tax imposed on the transaction at a tax rate of 2%; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the transaction under this chapter other than this part. (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of: (i) a state tax imposed on the amounts paid or charged for food and food ingredients at a tax rate of 1.75%; and (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the amounts paid or charged for food and food ingredients under this chapter other than this part. (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B). (e) (i) (A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not apply to car sharing, a car sharing program, a shared vehicle driver, or a shared vehicle owner, for a car sharing or shared vehicle transaction if a shared vehicle owner certifies to the commission, on a form prescribed by the commission, that the shared vehicle is an individual-owned shared vehicle. (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is required once during the time that the shared vehicle owner owns the shared vehicle. (C) The commission shall verify that a shared vehicle is an individual-owned shared vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the purchase of the shared vehicle. (D) The exception under Subsection (2)(e)(i)(A) applies to a certified individual-owned shared vehicle shared through a car-sharing program even if non-certified shared vehicles are also available to be shared through the same car-sharing program. (ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing. (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i). (B) If a car-sharing program relies in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any tax, penalty, fee, or other sanction imposed on the shared vehicle owner. (iv) If all shared vehicles shared through a car-sharing program are certified as described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and (2)(a)(i)(B) for that tax period. (v) A car-sharing program is not required to list or otherwise identify an individual-owned shared vehicle on a return or an attachment to a return. (vi) A car-sharing program shall: (A) retain tax information for each car-sharing program transaction; and (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at the commission's request. (f) (i) For a bundled transaction that is attributable to food and food ingredients and tangible personal property other than food and food ingredients, a state tax and a local tax is imposed on the entire bundled transaction equal to the sum of: (A) the tax rates described in Subsection (2)(a)(i); and (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii). (ii) If an optional computer software maintenance contract is a bundled transaction that consists of taxable and nontaxable products that are not separately itemized on an invoice or similar billing document, the purchase of the optional computer software maintenance contract is 40% taxable under this chapter and 60% nontaxable under this chapter. (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled transaction described in Subsection (2)(f)(i) or (ii): (A) if the sales price of the bundled transaction is attributable to tangible personal property, a product, or a service that is subject to taxation under this chapter and tangible personal property, a product, or service that is not subject to taxation under this chapter, the entire bundled transaction is subject to taxation under this chapter unless: (I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is not subject to taxation under this chapter from the books and records the seller keeps in the seller's regular course of business; or (II) state or federal law provides otherwise; or (B) if the sales price of a bundled transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire bundled transaction is subject to taxation under this chapter at the higher tax rate unless: (I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business; or (II) state or federal law provides otherwise. (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction: (A) separately states the portion of the transaction that is not subject to taxation under this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or (B) is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter. (ii) A purchaser and a seller may correct the taxability of a transaction if: (A) after the transaction occurs, the purchaser and the seller discover that the portion of the transaction that is not subject to taxation under this chapter was not separately stated on an invoice, bill of sale, or similar document provided to the purchaser because of an error or ignorance of the law; and (B) the seller is able to identify by reasonable and verifiable standards, from the books and records the seller keeps in the seller's regular course of business, the portion of the transaction that is not subject to taxation under this chapter. (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (h) (i) If the sales price of a transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate unless the seller, at the time of the transaction: (A) separately states the items subject to taxation under this chapter at each of the different rates on an invoice, bill of sale, or similar document provided to the purchaser; or (B) is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business. (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the regular course of business for nontax purposes. (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate imposed under the following shall take effect on the first day of a calendar quarter: (i) Subsection (2)(a)(i)(A); (ii) Subsection (2)(a)(i)(B); (iii) Subsection (2)(b)(i); (iv) Subsection (2)(c)(i); or (v) Subsection (2)(f)(i)(A). (j) (i) A tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the tax rate increase if the billing period for the transaction begins before the effective date of a tax rate increase imposed under: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(a)(i)(B); (C) Subsection (2)(b)(i); (D) Subsection (2)(c)(i); or (E) Subsection (2)(f)(i)(A). (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease imposed under: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(a)(i)(B); (C) Subsection (2)(b)(i); (D) Subsection (2)(c)(i); or (E) Subsection (2)(f)(i)(A). (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax rate takes effect: (A) on the first day of a calendar quarter; and (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change. (ii) Subsection (2)(k)(i) applies to the tax rates described in the following: (A) Subsection (2)(a)(i)(A); (B) Subsection (2)(a)(i)(B); (C) Subsection (2)(b)(i); (D) Subsection (2)(c)(i); or (E) Subsection (2)(f)(i)(A). (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location. (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil, or other fuel is furnished through a single meter for two or more of the following uses: (A) a commercial use; (B) an industrial use; or (C) a residential use. (3) (a) The commission shall deposit the following state taxes into the General Fund: (i) the tax imposed by Subsection (2)(a)(i)(A); (ii) the tax imposed by Subsection (2)(b)(i); (iii) the tax imposed by Subsection (2)(c)(i); (iv) the tax imposed by Subsection (2)(d); and (v) the tax imposed by Subsection (2)(f)(i)(A). (b) The commission shall distribute the following local taxes to a county, city, or town as provided in this chapter: (i) the tax imposed by Subsection (2)(a)(ii); (ii) the tax imposed by Subsection (2)(b)(ii); (iii) the tax imposed by Subsection (2)(c)(ii); and (iv) the tax imposed by Subsection (2)(f)(i)(B). (4) (a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make the deposits described in Subsections (4)(b) through (4)(h) from the revenue from the taxes imposed by: (i) Subsection (2)(a)(i)(A); (ii) Subsection (2)(b)(i); (iii) Subsection (2)(c)(i); and (iv) Subsection (2)(f)(i)(A). (b) The commission shall deposit 15% of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Rights Restricted Account created in Section 73-2-1.6. (c) The commission shall deposit 85% of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources for: (i) preconstruction costs: (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter 26, Bear River Development Act; and (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73, Chapter 26, Bear River Development Act; (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i) through (iii). (d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a) into the Water Infrastructure Restricted Account created in Section 73-10g-103. (e) (i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the revenue described in Subsection (4)(a) into the Transportation Investment Fund of 2005 created in Section 72-2-124. (ii) The commission shall annually reduce the deposit described in Subsection (4)(e)(i) by the sum of: (A) $1,813,400; (B) the earmark described in Subsection (5)(c); and (C) an amount equal to 35% of the revenue generated in the current fiscal year by the portion of the tax imposed on motor and special fuel that is sold, used, or received in the state that exceeds 29.4 cents per gallon. (iii) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into the Transit Transportation Investment Fund created in Section 72-2-124. (f) The commission shall deposit.44% of the revenue described in Subsection (4)(a) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124. (g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into the Commuter Rail Subaccount created in Section 72-2-124. (h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902 as follows: (i) into the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902, an amount equal to the amount that was deposited into the Outdoor Adventure Infrastructure Restricted Account in fiscal year 2025; and (ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201. (5) (a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make the deposits described in this Subsection (5). (b) (i) (A) The commission shall deposit $500,000 to the Department of Natural Resources to be used for watershed rehabilitation or restoration. (B) At the end of each fiscal year, 100% of any unexpended amount described in Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and Development Fund created in Section 73-10-24. (ii) The commission shall deposit $150,000 to the Division of Water Resources for cloud-seeding projects authorized by Title 73, Chapter 15, Modification of Weather. (iii) The commission shall deposit $525,000 into the Division of Conservation created in Section 4-46-401 to implement water related programs. (iv) The commission shall deposit $7,175,000 into the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by the Division of Water Resources: (A) for the uses allowed of the Water Resources Conservation and Development Fund under Section 73-10-24; (B) to conduct hydrologic and geotechnical investigations by the Division of Water Resources in a cooperative effort with other state, federal, or local entities, for the purpose of quantifying surface and ground water resources and describing the hydrologic systems of an area in sufficient detail so as to enable local and state resource managers to plan for and accommodate growth in water use without jeopardizing the resource; (C) to fund state required dam safety improvements; and (D) to protect the state's interest in interstate water compact allocations, including the hiring of technical and legal staff. (v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects. (vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to: (A) provide for the installation and repair of collection, treatment, storage, and distribution facilities for any public water system, as defined in Section 19-4-102; (B) develop underground sources of water, including springs and wells; and (C) develop surface water sources. (vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources to: (A) implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species; or (B) award grants, up to the amount authorized by the Legislature in an appropriations act, to political subdivisions of the state to implement the measures described in Subsections 23A-3-214(3)(a) through (d) to protect sensitive plant and animal species. (viii) Funds transferred to the Division of Wildlife Resources under Subsection (5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife Service or any other person to list or attempt to have listed a species as threatened or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et seq. (ix) At the end of each fiscal year, any unexpended amounts described in Subsections (5)(b)(vii)(A) and (B) shall lapse: (A) 50% into the Water Resources Conservation and Development Fund created in Section 73-10-24; (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and (C) 25% into the Drinking Water Loan Program Subaccount created in Section 73-10c-5. (x) The commission shall allocate $175,000 to the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water rights. (xi) At the end of each fiscal year, any unexpended amounts described in Subsection (5)(b)(x) shall lapse: (A) 50% into the Water Resources Conservation and Development Fund created in Section 73-10-24; (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and (C) 25% into the Drinking Water Loan Program Subaccount created in Section 73-10c-5. (c) The commission shall deposit $45,000,000 into the Active Transportation Investment Fund created in Section 72-2-124. (d) The commission shall deposit $533,750 into the Qualified Emergency Food Agencies Fund created by and expended in accordance with Section 35A-8-1009. (e) The commission shall deposit $200,000 into the General Fund as a dedicated credit for the sole use of the Search and Rescue Financial Assistance Program created by and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and Rescue Act. (6) (a) The rate specified in this Subsection (6) is 0.15%. (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the rate described in Subsection (6)(a) on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section 26B-1-315. (7) (a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), and as described in Section [63N-3-610] 63N-23-206, beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 15% of the sales and use tax increment from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, into the Transit Transportation Investment Fund created in Section 72-2-124. (b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and except as provided in Subsections (11), (12), and (13), and as described in Section [63N-3-610.1] 63N-3-406, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment as defined in Section [63N-3-602] 63N-23-101 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 and specified in the convention center reinvestment zone proposal submitted [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City. (8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), beginning October 1, 2024, the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within the district sales tax area, as defined in Section 11-70-101. (9) (a) As used in this Subsection (9): (i) "Additional land" means point of the mountain state land described in Subsection 11-59-102(6)(b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (9)(c). (ii) "Point of the mountain authority" means the Point of the Mountain State Land Authority, created in Section 11-59-201. (iii) "Point of the mountain state land" means the same as that term is defined in Section 11-59-102. (b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), the commission shall distribute to the point of the mountain authority 50% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring on the point of the mountain state land. (c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map that: (i) accurately describes the point of the mountain state land; and (ii) the point of the mountain authority certifies as accurate. (d) A distribution under Subsection (9)(b) with respect to additional land shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map of point of the mountain state land that: (i) accurately describes the point of the mountain state land, including the additional land; and (ii) the point of the mountain authority certifies as accurate. (e) (i) Upon the payment in full of bonds secured by the sales and use tax revenue distributed to the point of the mountain authority under Subsection (9)(b), the point of the mountain authority shall immediately notify the commission in writing that the bonds are paid in full. (ii) The commission shall discontinue distributions of sales and use tax revenue under Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90 days after the date that the commission receives the written notice under Subsection (9)(e)(i). (10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section 63N-2-503.5. (11) (a) As used in this Subsection (11): (i) "Applicable percentage" means: (A) for a housing and transit reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, 15% of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(A); (B) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(B); and (C) for the Point of the Mountain State Land Authority created in Section 11-59-201, 50% of the revenue from sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (11)(a)(ii)(C). (ii) "Qualified development zone" means: (A) the sales and use tax boundary of a housing and transit reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Act] Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201; or (C) the sales and use tax boundary of point of the mountain state land, as defined in Section 11-59-102, under the Point of the Mountain State Land Authority created in Section 11-59-201. (iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be deposited into the General Fund. (12) (a) As used in Subsections (12) and (13): (i) "Applicable percentage" means, for a convention center reinvestment zone created in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, an amount equal to 50% of the sales and use tax increment, as that term is defined in Section [63N-3-602] 63N-23-101, from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development zone described in Subsection (12)(a)(ii). (ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created in a capital city under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City. (iii) "Qualifying construction materials" means construction materials that are: (A) delivered to a delivery outlet within a qualified development zone; and (B) intended to be permanently attached to real property within the qualified development zone. (b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to a qualified development zone if the seller of the construction materials: (i) establishes a delivery outlet with the commission within the qualified development zone; (ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(i); and (iii) does not report the sales of the construction materials on a simplified electronic return. (c) For the purposes of Subsection (12)(b), the product is equal to: (i) the sales price or purchase price of the qualifying construction materials; and (ii) the applicable percentage. (13) (a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the General Fund. Section 21. Section 59-12-205 is amended to read: 59-12-205 Effective 05/06/26. Ordinances to conform with statutory amendments -- Distribution of tax revenue -- Determination of population. (1) To maintain in effect sales and use tax ordinances adopted [pursuant to] in accordance with Section 59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's sales and use tax ordinances: (a) within 30 days of the day on which the state makes an amendment to an applicable provision of Part 1, Tax Collection; and (b) as required to conform to the amendments to Part 1, Tax Collection. (2) (a) Except as provided in Subsections (3), (4), and (5) and subject to Subsection (6): (i) 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the percentage that the population of the county, city, or town bears to the total population of all counties, cities, and towns in the state; and (ii) (A) except as provided in Subsections (2)(a)(ii)(B), (C), (D), (E), and (F), 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215; (B) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, shall be distributed to the military installation development authority created in Section 63H-1-201; (C) except as provided in Subsections (10) through (13), beginning July 1, 2024, 20% of each dollar collected from the sales and use tax authorized by this part within a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port Authority, created in Section 11-58-201; (D) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within the lake authority boundary, as defined in Section 11-65-101, shall be distributed to the Utah Lake Authority, created in Section 11-65-201, beginning the next full calendar quarter following the creation of the Utah Lake Authority; [and] (E) except as provided in Subsections (10) through (13), beginning January 1, 2026, 50% of each dollar collected from the sales and use tax authorized by this part within the boundary of an eligible basic special district, as that term is defined in Section 17B-1-1405, and if applicable, the boundary of a public infrastructure district created by the eligible basic special district, shall be distributed to the eligible basic special district[.]; and (F) except as provided in Subsections (10) through (13), beginning the first day of a calendar quarter after the sales and use tax boundary for a major sporting event venue zone is established, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment, as defined in Section 63N-3-1701, from the sales and use tax imposed under this part on transactions occurring within a sales and use tax boundary, as described in Section 63N-3-1710, to the creating entity of the major sporting event venue zone. (b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before July 1, 2022. (3) Beginning no sooner than January 1, 2026, and before application of Subsections (2), (4), (5), and (6), and except as provided in Subsections (8) and (9), and as described in Section [63N-3-610.1] 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as defined in Section [63N-3-602] 63N-23-101, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, to the entity specified in the convention center reinvestment zone proposal submitted [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone. (4) (a) As used in this Subsection (4): (i) "Eligible county, city, or town" means a county, city, or town that: (A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (4)(b) equal to the amount described in Subsection (4)(b)(ii); and (B) does not impose a sales and use tax under Section 59-12-2103 on or before July 1, 2016. (ii) "Minimum tax revenue distribution" means the total amount of tax revenue distributions an eligible county, city, or town received from a tax imposed in accordance with this part for fiscal year 2004-05. (b) An eligible county, city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this part equal to the greater of: (i) the payment required by Subsection (2); or (ii) the minimum tax revenue distribution. (c) For an eligible county, city, or town that qualifies to receive a distribution described in this Subsection (4), the commission shall apply the provisions of this Subsection (4) after the commission applies the provisions of Subsection (3). (5) (a) For purposes of this Subsection (5): (i) "Annual local contribution" means the lesser of $275,000 or an amount equal to 2.55% of the participating local government's tax revenue distribution amount under Subsection (2)(a)(i) for the previous fiscal year. (ii) "Participating local government" means a county or municipality, as defined in Section 10-1-104, that is not an eligible municipality certified in accordance with Section 35A-16-404. (b) For revenue collected from the tax authorized by this part that is distributed on or after January 1, 2019, the commission, before making a tax revenue distribution under Subsection (2)(a)(i) to a participating local government, shall: (i) adjust a participating local government's tax revenue distribution under Subsection (2)(a)(i) by: (A) subtracting an amount equal to one-twelfth of the annual local contribution for each participating local government from the participating local government's tax revenue distribution; and (B) if applicable, reducing the amount described in Subsection (5)(b)(i)(A) by an amount equal to one-twelfth of $250 for each bed that is available at all homeless shelters located within the boundaries of the participating local government, as reported to the commission by the Office of Homeless Services in accordance with Section 35A-16-405; and (ii) deposit the resulting amount described in Subsection (5)(b)(i) into the Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402. (c) For a participating local government that qualifies to receive a distribution described in Subsection (4), the commission shall apply the provisions of this Subsection (5) after the commission applies the provisions of Subsections (3) and (4). (6) (a) As used in this Subsection (6): (i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to the total revenue an establishment described in NAICS Code 327320, Ready-Mix Concrete Manufacturing, of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, collects and remits under this part for a calendar year. (ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel. (iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that: (A) contains sand and gravel; and (B) is assessed by the commission in accordance with Section 59-2-201. (iv) "Ton" means a short ton of 2,000 pounds. (v) "Tonnage ratio" means the ratio of: (A) the total amount of sand and gravel, measured in tons, sold during a calendar year from all sand and gravel extraction sites located within a county, city, or town; to (B) the total amount of sand and gravel, measured in tons, sold during the same calendar year from sand and gravel extraction sites statewide. (b) For purposes of calculating the ratio described in Subsection (6)(a)(v), the commission shall: (i) use the gross sales data provided to the commission as part of the commission's property tax valuation process; and (ii) if a sand and gravel extraction site operates as a unit across municipal or county lines, apportion the reported tonnage among the counties, cities, or towns based on the percentage of the sand and gravel extraction site located in each county, city, or town, as approximated by the commission. (c) (i) Each July, the commission shall distribute from total collections under this part an amount equal to the annual dedicated sand and gravel sales tax revenue for the preceding calendar year to each county, city, or town in the same proportion as the county's, city's, or town's tonnage ratio for the preceding calendar year. (ii) The commission shall ensure that the revenue distributed under this Subsection (6)(c) is drawn from each jurisdiction's collections in proportion to the jurisdiction's share of total collections for the preceding 12-month period. (d) A county, city, or town shall use revenue described in Subsection (6)(c) for class B or class C roads. (7) (a) Population figures for purposes of this section shall be based on, to the extent not otherwise required by federal law: (i) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or (ii) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104. (b) The population of a county for purposes of this section shall be determined only from the unincorporated area of the county. (8) (a) As used in Subsections (8) and (9): (i) "Applicable percentage" means, for a convention center reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, for sales occurring within the qualified development zone described in Subsection (8)(a)(ii), 100% of the sales and use tax increment, as that term is defined in Section [63N-3-602] 63N-23-101, from the sales and use tax: (A) imposed by a city of the first class in a county of the first class under this part; (B) imposed by a city of the first class in a county of the first class under Section 59-12-402.1; (C) imposed by a county of the first class under Section 59-12-1102; and (D) imposed by a county of the first class under Part 22, Local Option Sales and Use Taxes for Transportation Act. (ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone. (iii) "Qualifying construction materials" means construction materials that are: (A) delivered to a delivery outlet within a qualified development zone; and (B) intended to be permanently attached to real property within the qualified development zone. (b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (8)(c) to a qualified development zone if the seller of the construction materials: (i) establishes a delivery outlet with the commission within the qualified development zone; (ii) reports the sales of the construction materials to the delivery outlet described in Subsection (8)(b)(i); and (iii) does not report the sales of the construction materials on a simplified electronic return. (c) For the purposes of Subsection (8)(b), the product is equal to: (i) the sales price or purchase price of the qualifying construction materials; and (ii) the applicable percentage. (9) (a) As used in this Subsection (9), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the jurisdiction that would have received the revenue in the absence of the qualified development zone. (10) (a) As used in this Subsection (10): (i) "Applicable percentage" means: (A) for a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(A): (I) 50% of the revenue from the sales and use tax imposed under this part; (II) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-401; and (III) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-402; [and] (B) for a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(B), 20% of the revenue from the sales and use tax under this part; (C) for the lake authority boundary, as defined in Section 11-65-101, for sales occurring within the qualified development zone described in Subsection (10)(a)(ii)(C), 50% of the revenue from the sales and use tax under this part; (D) for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, for sales occurring within the qualified development zone described in Subsection (10)(a)(iii)(D), 100% of the revenue from the sales and use tax imposed by the Utah Fairpark Area Investment and Restoration District under Sections 59-12-401 and 59-12-402; and (E) for an eligible basic special district created under Title 17B, Chapter 1, Part 14, Basic Special District, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(E), 50% of the revenue from the sales and use tax imposed under this part[;]. (ii) "Eligible basic special district" means the same as that term is defined in Section 17B-1-1405. (iii) "Qualified development zone" means the sales and use tax boundary of: (A) a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act; (B) a project area under Title 11, Chapter 58, Utah Inland Port Authority Act; (C) the lake authority boundary, as defined in Section 11-65-101; (D) the Utah Fairpark Investment and Restoration District, created in Section 11-70-201; or (E) the area within the boundary of an eligible basic special district, and if applicable, the boundary of a public infrastructure district created by the basic special district[;]. (iv) "Qualifying construction materials" means construction materials that are: (A) delivered to a delivery outlet within a qualified development zone; and (B) intended to be permanently attached to real property within the qualified development zone. (b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (10)(c) to a qualified development zone if the seller of the construction materials: (i) establishes a delivery outlet with the commission within the qualified development zone; (ii) reports the sales of the construction materials to the delivery outlet described in Subsection (10)(b)(i); and (iii) does not report the sales of the construction materials on a simplified electronic return; or (c) For the purposes of Subsection (10)(b), the product is equal to: (i) the sales price or purchase price of the qualifying construction materials; and (ii) the applicable percentage. (11) (a) As used in this Subsection (11): (i) "Applicable percentage" means the same as that term is defined in Subsection (10). (ii) "Qualified development zone" means the same as that term is defined in Subsection (10). (iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone. (12) (a) As used in this Subsection (12): (i) "Applicable percentage" means, for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within the qualified development zone described in Subsection (12)(a)(ii): (A) 50% of the sales and use tax increment, as that term is defined in Section [63N-3-601] 63N-23-101, from the sales and use tax imposed under this part; (B) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-401; and (C) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-402. (ii) "Qualified development zone" means the sales and use tax boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act. (iii) "Qualifying construction materials" means construction materials that are: (A) delivered to a delivery outlet within a qualified development zone; and (B) intended to be permanently attached to real property within the qualified development zone. (b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to the creating entity of a qualified development zone if the seller of the construction materials: (i) establishes a delivery outlet with the commission within the qualified development zone; (ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(i); and (iii) does not report the sales of the construction materials on a simplified electronic return[; or]. (c) For the purposes of Subsection (12)(b), the product is equal to: (i) the sales price or purchase price of the qualifying construction materials; and (ii) the applicable percentage. (13) (a) As used in this Subsection (13): (i) "Applicable percentage" means the same as that term is defined in Subsection (12). (ii) "Qualified development zone" means the same as that term is defined in Subsection (12). (iii) "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission. (b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone. Section 22. Section 59-12-402.1 is amended to read: 59-12-402.1 Effective 05/06/26. State correctional facility sales and use tax -- Base -- Rate -- Collection fees -- Imposition -- Prohibition of military installation development authority imposition of tax. (1) As used in this section, "new state correctional facility" means a new prison in the state: (a) that is operated by the Department of Corrections; (b) the construction of which begins on or after May 12, 2015; and (c) that provides a capacity of 2,500 or more inmate beds. (2) Subject to the other provisions of this part, a city or town legislative body may impose a tax under this section if the construction of a new state correctional facility has begun within the boundaries of the city or town. (3) For purposes of this section, the tax rate may not exceed.5%. (4) Except as provided in Subsection (5), a tax under this section shall be imposed on the transactions described in Subsection 59-12-103(1) within the city or town. (5) A city or town may not impose a tax under this section on: (a) the sale of: (i) a motor vehicle; (ii) an aircraft; (iii) a watercraft; (iv) a modular home; (v) a manufactured home; or (vi) a mobile home; (b) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt under Section 59-12-104; and (c) except as provided in Subsection (7), amounts paid or charged for food and food ingredients. (6) For purposes of this section, the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215. (7) A city or town that imposes a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients. (8) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before distribution of a sales and use tax imposed under this section, and as described in Section [63N-3-610.1] 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment as defined in Section [63N-3-602] 63N-23-101, from the sales and use tax imposed under this section on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1. (9) A city or town may impose a tax under this section by majority vote of the members of the city or town legislative body. (10) A city or town that imposes a tax under this section is not subject to Section 59-12-405. (11) A military installation development authority may not impose a tax under this section. Section 23. Section 59-12-402.5 is amended to read: 59-12-402.5 Effective 05/06/26. Capital city revitalization sales and use tax -- Deadline -- Rate -- Collection fees -- Imposition. (1) As used in this section: (a) "Local government" means a first class city located within a first class county. (b) "Project area" means the same as that term is defined in Section [63N-3-1401] 63N-23-801. (2) The legislative body of the local government may impose a sales and use tax under this section if the legislative body, on or before December 31, 2024: (a) complies with the requirements of [Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone] Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone; (b) gives final approval to an application by giving final approval of a project zone and a participation agreement as provided in Section [63N-3-1406] 63N-23-806; and (c) imposes the tax according to the procedures and requirements of Section [63N-3-1406] 63N-23-806. (3) (a) The tax rate may not exceed.5%. (b) The tax imposed under this section may not be imposed for a period greater than 30 years, beginning on the date of the first imposition of the tax. (4) Except as provided in Subsection (5), the local government shall impose a tax under this section on the transactions described in Subsection 59-12-103(1). (5) A local government may not impose a tax under this section on: (a) the sale of: (i) a motor vehicle; (ii) an aircraft; (iii) a watercraft; (iv) a modular home; (v) a manufactured home; or (vi) a mobile home; (b) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and (c) except as provided in Subsection (7), amounts paid or charged for food and food ingredients. (6) For purposes of this section, the location of a transaction is determined in accordance with Sections 59-12-211 through 59-12-215. (7) A local government that imposes a tax under this section shall impose the tax on the purchase price or the sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients. (8) A local government may impose a tax under this section by majority vote of the members of the local government's legislative body in compliance with the procedures and requirements of [Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone] Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone. (9) A military installation development authority may not impose a tax under this section. (10) (a) The commission shall distribute the revenue collected from the tax under this section on transactions occurring within the district sales tax area as defined in Section 11-70-101 to the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201. (b) The commission shall distribute the revenue collected outside of the district sales tax area referenced in Subsection (10)(a) to the local government. (11) A local government shall use revenue referenced in Subsection (10)(b) only: (a) within the project area defined in Section [63N-3-1401] 63N-23-801; and (b) for the allowable uses under Section [63N-3-1403] 63N-23-803. Section 24. Section 59-12-1102 is amended to read: 59-12-1102 Effective 05/06/26. Base -- Rate -- Imposition of tax -- Distribution of revenue -- Administration -- Administrative charge -- Commission requirement to retain an amount to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal of tax -- Effective date -- Notice requirements. (1) (a) (i) Subject to Subsections (2) through (7), and in addition to any other tax authorized by this chapter, a county may impose by ordinance a county option sales and use tax of.25% upon the transactions described in Subsection 59-12-103(1). (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104. (b) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215. (c) The county option sales and use tax under this section shall be imposed: (i) upon transactions that are located within the county, including transactions that are located within municipalities in the county; and (ii) except as provided in Subsection (1)(d) or (6), beginning on the first day of January: (A) of the next calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted on or before May 25; or (B) of the second calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted after May 25. (d) The county option sales and use tax under this section shall be imposed: (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before September 4, 1997; or (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997 but after September 4, 1997. (2) (a) Before imposing a county option sales and use tax under Subsection (1), a county shall hold two public hearings on separate days in geographically diverse locations in the county. (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting time of no earlier than 6 p.m. (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven days after the day the first advertisement required by Subsection (2)(c) is published. (c) (i) Before holding the public hearings required by Subsection (2)(a), the county shall advertise: (A) [its] the county's intent to adopt a county option sales and use tax; (B) the date, time, and location of each public hearing; and (C) a statement that the purpose of each public hearing is to obtain public comments regarding the proposed tax. (ii) The advertisement shall be published: (A) in a newspaper of general circulation in the county once each week for the two weeks preceding the earlier of the two public hearings; and (B) for the county, as a class A notice under Section 63G-30-102, for two weeks before the day on which the first of the two public hearings is held. (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than [1/8] one-eighth page in size, and the type used shall be no smaller than 18 point and surrounded by a [1/4-inch] one-quarter inch border. (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible: (A) the advertisement shall appear in a newspaper that is published at least five days a week, unless the only newspaper in the county is published less than five days a week; and (B) the newspaper selected shall be one of general interest and readership in the community, and not one of limited subject matter. (d) The adoption of an ordinance imposing a county option sales and use tax is subject to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures. (3) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before application of Subsections (4) through (7), and as described in Section [63N-3-610.1] 63N-3-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment as defined in Section [63N-3-602] 63N-23-101, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section [63N-3-602] 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1. (4) (a) Subject to Subsection (6), if the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is less than 75% of the state population, the tax levied under Subsection (1) shall be distributed to the county in which the tax was collected. (b) Subject to Subsection (6), if the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state population: (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the county in which the tax was collected; and (ii) except as provided in Subsection (4)(c), 50% of the tax collected under Subsection (1) in each county shall be distributed proportionately among all counties imposing the tax, based on the total population of each county. (c) Except as provided in Subsection (6), the amount to be distributed annually to a county under Subsection (4)(b)(ii), when combined with the amount distributed to the county under Subsection (4)(b)(i), does not equal at least $75,000, then: (i) the amount to be distributed annually to that county under Subsection (4)(b)(ii) shall be increased so that, when combined with the amount distributed to the county under Subsection (4)(b)(i), the amount distributed annually to the county is $75,000; and (ii) the amount to be distributed annually to all other counties under Subsection (4)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under Subsection (4)(c)(i). (d) The commission shall establish rules to implement the distribution of the tax under Subsections (4)(a), (b), and (c). (e) Population for each county for purposes of this Subsection (4) shall be based on, to the extent not otherwise required by federal law: (i) the estimate of the Utah Population Committee created in Section 63C-20-103; or (ii) if the Utah Population Committee estimate is not available, the most recent census or census estimate of the United States Bureau of the Census. (5) (a) Except as provided in Subsection (5)(b) or (c), a tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with: (i) the same procedures used to administer, collect, enforce, and interpret the tax under: (A) Part 1, Tax Collection; or (B) Part 2, Local Sales and Use Tax Act; and (ii) Chapter 1, General Taxation Policies. (b) A tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6). (c) (i) Subject to Subsection (5)(c)(ii), the commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part. (ii) Notwithstanding Section 59-1-306, the administrative charge described in Subsection (5)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of the distribution amounts resulting after: (A) the applicable distribution calculations under Subsection (4) have been made; and (B) the commission retains the amount required by Subsection (6). (6) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion of the sales and use tax collected under this part as provided in this Subsection (6). (b) For a county that imposes a tax under this part, the commission shall calculate a percentage each month by dividing the sales and use tax collected under this part for that month within the boundaries of that county by the total sales and use tax collected under this part for that month within the boundaries of all of the counties that impose a tax under this part. (c) For a county that imposes a tax under this part, the commission shall retain each month an amount equal to the product of: (i) the percentage the commission determines for the month under Subsection (6)(b) for the county; and (ii) $6,354. (d) The commission shall deposit an amount the commission retains in accordance with this Subsection (6) into the Qualified Emergency Food Agencies Fund created by Section 35A-8-1009. (e) An amount the commission deposits into the Qualified Emergency Food Agencies Fund shall be expended as provided in Section 35A-8-1009. (7) (a) For purposes of this Subsection (7): (i) "Annexation" means an annexation to a county under Title 17, Chapter 61, Part 2, Consolidation of Counties, or Part 3, County Annexation. (ii) "Annexing area" means an area that is annexed into a county. (b) (i) Except as provided in Subsection (7)(c) or (d), if, on or after July 1, 2004, a county enacts or repeals a tax under this part: (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or (II) the repeal shall take effect on the first day of a calendar quarter; and (B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(b)(ii) from the county. (ii) The notice described in Subsection (7)(b)(i)(B) shall state: (A) that the county will enact or repeal a tax under this part; (B) the statutory authority for the tax described in Subsection (7)(b)(ii)(A); (C) the effective date of the tax described in Subsection (7)(b)(ii)(A); and (D) if the county enacts the tax described in Subsection (7)(b)(ii)(A), the rate of the tax. (c) (i) If the billing period for a transaction begins before the effective date of the enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax. (ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under Subsection (1). (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (7)(b)(i) takes effect: (A) on the first day of a calendar quarter; and (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (7)(b)(i). (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." (e) (i) Except as provided in Subsection (7)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect: (A) on the first day of a calendar quarter; and (B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (7)(e)(i) from the county that annexes the annexing area. (ii) The notice described in Subsection (7)(e)(i)(B) shall state: (A) that the annexation described in Subsection (7)(b)(i) will result in an enactment or repeal of a tax under this part for the annexing area; (B) the statutory authority for the tax described in Subsection (7)(e)(ii)(A); (C) the effective date of the tax described in Subsection (7)(e)(ii)(A); and (D) the rate of the tax described in Subsection (7)(e)(ii)(A). (f) (i) If the billing period for a transaction begins before the effective date of the enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax. (ii) The repeal of a tax applies to a billing period if the billing statement for the billing period is produced on or after the effective date of the repeal of the tax imposed under Subsection (1). (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (7)(e)(i) takes effect: (A) on the first day of a calendar quarter; and (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (7)(e)(i). (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." Section 25. Section 59-12-2206 is amended to read: 59-12-2206 Effective 05/06/26. Administration, collection, and enforcement of a sales and use tax under this part -- Transmission of revenue monthly by electronic funds transfer -- Transfer of revenue to a public transit district or eligible political subdivision. (1) Except as provided in Subsection (2), the commission shall administer, collect, and enforce a sales and use tax imposed under this part. (2) The commission shall administer, collect, and enforce a sales and use tax imposed under this part in accordance with: (a) the same procedures used to administer, collect, and enforce a tax under: (i) Part 1, Tax Collection; or (ii) Part 2, Local Sales and Use Tax Act; and (b) Chapter 1, General Taxation Policies. (3) A sales and use tax under this part is not subject to Subsections 59-12-205(2) and (4) through (6). (4) Subject to Section 59-12-2207 and except as provided in Subsections (5) and (6) or another provision of this part, the state treasurer shall transmit revenue collected within a county, city, or town from a sales and use tax under this part to the county, city, or town legislative body monthly by electronic funds transfer. (5) Beginning no sooner than January 1, 2026, and subject to Section 59-12-205, before transmitting revenue as described in Subsection (4), and before application of Subsection (6), and as described in Section [63N-3-610.1] 63N-23-306, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under [Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as that term is defined in Section [63N-3-602] 63N-23-101, from a sales and use tax on transactions occurring within an established sales and use tax boundary, as that term is defined in Section [63N-3-602] 63N-23-101, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 for sales and use taxes imposed by a county of the first class [pursuant to] in accordance with: (a) Section 59-12-2213; (b) Section 59-12-2214; (c) Section 59-12-2217; (d) Section 59-12-2219; and (e) Section 59-12-2220. (6) (a) Subject to Section 59-12-2207, and except as provided in Subsection (6)(b), the state treasurer shall transfer revenue collected within a county, city, or town from a sales and use tax under this part directly to a public transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, or an eligible political subdivision as defined in Section 59-12-2202, if the county, city, or town legislative body: (i) provides written notice to the commission and the state treasurer requesting the transfer; and (ii) designates the public transit district or eligible political subdivision to which the county, city, or town legislative body requests the state treasurer to transfer the revenue. (b) The commission shall transmit a portion of the revenue collected within a county, city, or town from a sales and use tax under this part that would be transferred to a public transit district or an eligible political subdivision under Subsection (6)(a) to the county, city, or town to fund public transit fixed guideway safety oversight under Section 72-1-214 if the county, city, or town legislative body: (i) provides written notice to the commission and the state treasurer requesting the transfer; and (ii) specifies the amount of revenue required to be transmitted to the county, city, or town. Section 26. Section 59-12-2220 is amended to read: 59-12-2220 Effective 05/06/26. County option sales and use tax to fund highways or a system for public transit -- Base -- Rate. (1) Subject to the other provisions of this part and subject to the requirements of this section, the following counties may impose a sales and use tax under this section: (a) a county legislative body may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county if: (i) the entire boundary of a county is annexed into a large public transit district; and (ii) the maximum amount of sales and use tax authorizations allowed in accordance with Section 59-12-2203 and authorized under the following sections has been imposed: (A) Section 59-12-2213; (B) Section 59-12-2214; (C) Section 59-12-2215; (D) Section 59-12-2216; (E) Section 59-12-2217; (F) Section 59-12-2218; and (G) Section 59-12-2219; (b) if the county is not annexed into a large public transit district, the county legislative body may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county if: (i) the county is an eligible political subdivision; or (ii) a city or town within the boundary of the county is an eligible political subdivision; or (c) a county legislative body of a county not described in Subsection (1)(a) or (1)(b) may impose the sales and use tax on the transactions described in Subsection 59-12-103(1) located within the county, including the cities and towns within the county. (2) For purposes of Subsection (1) and subject to the other provisions of this section, a county legislative body that imposes a sales and use tax under this section may impose the tax at a rate of.2%. (3) (a) The commission shall distribute sales and use tax revenue collected under this section as determined by a county legislative body as described in Subsection (3)(b). (b) If a county legislative body imposes a sales and use tax as described in this section, the county legislative body may elect to impose a sales and use tax revenue distribution as described in Subsection (4), (5), (6), or (7), depending on the class of county, and presence and type of a public transit provider in the county. (4) Subject to Subsection (11), and after application of Subsection 59-12-2206(5), if a county legislative body imposes a sales and use tax as described in this section, and the entire boundary of the county is annexed into a large public transit district, and the county is a county of the first class, the commission shall distribute the sales and use tax revenue as follows: (a).10% to a public transit district as described in Subsection (11); (b).05% to the cities and towns as provided in Subsection (8); and (c).05% to the county legislative body. (5) Subject to Subsection (11), if a county legislative body imposes a sales and use tax as described in this section and the entire boundary of the county is annexed into a large public transit district, and the county is a county not described in Subsection (4), the commission shall distribute the sales and use tax revenue as follows: (a).10% to a public transit district as described in Subsection (11); (b).05% to the cities and towns as provided in Subsection (8); and (c).05% to the county legislative body. (6) (a) Except as provided in Subsection (14)(c), if the entire boundary of a county that imposes a sales and use tax as described in this section is not annexed into a single public transit district, but a city or town within the county is annexed into a single public transit district, or if the city or town is an eligible political subdivision, the commission shall distribute the sales and use tax revenue collected within the county as provided in Subsection (6)(b) or (c). (b) For a city, town, or portion of the county described in Subsection (6)(a) that is annexed into the single public transit district, or an eligible political subdivision, the commission shall distribute the sales and use tax revenue collected within the portion of the county that is within a public transit district or eligible political subdivision as follows: (i).05% to a public transit provider as described in Subsection (11); (ii).075% to the cities and towns as provided in Subsection (8); and (iii).075% to the county legislative body. (c) Except as provided in Subsection (14)(c), for a city, town, or portion of the county described in Subsection (6)(a) that is not annexed into a single public transit district or eligible political subdivision in the county, the commission shall distribute the sales and use tax revenue collected within that portion of the county as follows: (i).08% to the cities and towns as provided in Subsection (8); and (ii).12% to the county legislative body. (7) For a county without a public transit service that imposes a sales and use tax as described in this section, the commission shall distribute the sales and use tax revenue collected within the county as follows: (a).08% to the cities and towns as provided in Subsection (8); and (b).12% to the county legislative body. (8) (a) Subject to Subsections (8)(b) and (c), the commission shall make the distributions required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows: (i) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7) shall be distributed to the unincorporated areas, cities, and towns within those counties on the basis of the percentage that the population of each unincorporated area, city, or town bears to the total population of all of the counties that impose a tax under this section; and (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7) shall be distributed to the unincorporated areas, cities, and towns within those counties on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215. (b) (i) Population for purposes of this Subsection (8) shall be based on, to the extent not otherwise required by federal law: (A) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or (B) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104. (ii) If a needed population estimate is not available from the United States Census Bureau, population figures shall be derived from an estimate from the Utah Population Estimates Committee created by executive order of the governor. (c) (i) Beginning on January 1, 2024, if the Housing and Community Development Division within the Department of Workforce Services determines that a city or town is ineligible for funds in accordance with Subsection 10-21-202(6), beginning the first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute the distribution that city or town would have received under Subsection (8)(a) to cities or towns to which Subsection 10-21-202(6) does not apply. (ii) Beginning on January 1, 2024, if the Housing and Community Development Division within the Department of Workforce Services determines that a county is ineligible for funds in accordance with Subsection 17-80-202(6), beginning the first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute the distribution that county would have received under Subsection (8)(a) to counties to which Subsection 17-80-202(6) does not apply. (9) If a public transit service is organized after the date a county legislative body first imposes a tax under this section, a change in a distribution required by this section may not take effect until the first distribution the commission makes under this section after a 90-day period that begins on the date the commission receives written notice from the public transit provider that the public transit service has been organized. (10) (a) Except as provided in Subsections (10)(b) and (c), a county, city, or town that received distributions described in Subsections (4)(b), (4)(c), (5)(b), (5)(c), (6)(b)(ii), (6)(b)(iii), (6)(c), and (7) may only expend those funds for a purpose described in Section 59-12-2212.2. (b) If a county described in Subsection (1)(a) that is a county of the first class imposes the sales and use tax authorized in this section, the county may also use funds distributed in accordance with Subsection (4)(c) for public safety purposes. (c) In addition to the purposes described in Subsections (10)(a) and (b), for a city relevant to a project area, as that term is defined in Section [63N-3-1401] 63N-23-801, an allowable use of revenue from a sales and use tax under this section includes the revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center. (11) (a) Subject to Subsections (11)(b), (c), and (d), revenue designated for public transit as described in this section may be used for capital expenses and service delivery expenses of: (i) a public transit district; (ii) an eligible political subdivision; or (iii) another entity providing a service for public transit or a transit facility within the relevant county, as those terms are defined in Section 17B-2a-802. (b) (i) (A) If a county of the first class imposes a sales and use tax described in this section, beginning on the date on which the county imposes the sales and use tax under this section, and for a three-year period after at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or until June 30, 2030, whichever comes first, revenue designated for public transit within a county of the first class as described in Subsection (4)(a) shall be transferred to the County of the First Class Highway Projects Fund created in Section 72-2-121. (B) Revenue deposited into the County of the First Class Highway Projects Fund created in Section 72-2-121 as described in Subsection (11)(b)(i)(A) may be used for public transit innovation grants as provided in Title 72, Chapter 2, Part 4, Public Transit Innovation Grants. (ii) If a county of the first class imposes a sales and use tax described in this section, beginning on the day three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or beginning on July 1, 2030, whichever comes first, for revenue designated for public transit as described in Subsection (4)(a): (A) 50% of the revenue from a sales and use tax imposed under this section in a county of the first class shall be transferred to the County of the First Class Highway Projects Fund created in Section 72-2-121; and (B) 50% of the revenue from a sales and use tax imposed under this section in a county of the first class shall be transferred to the Transit Transportation Investment Fund created in Subsection 72-2-124(9). (c) (i) If a county that is not a county of the first class for which the entire boundary of the county is annexed into a large public transit district imposes a sales and use tax described in this section, beginning on the date on which the county imposes the sales and use tax under this section, and for a three-year period following the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or until June 30, 2030, whichever comes first, revenue designated for public transit as described in Subsection (5)(a) shall be transferred to the relevant county legislative body to be used for a purpose described in Subsection (11)(a). (ii) If a county that is not a county of the first class for which the entire boundary of the county is annexed into a large public transit district imposes a sales and use tax described in this section, beginning on the day three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section, or beginning on July 1, 2030, whichever comes first, for the revenue that is designated for public transit in Subsection (5)(a): (A) 50% shall be transferred to the Transit Transportation Investment Fund created in Subsection 72-2-124(9); and (B) 50% shall be transferred to the relevant county legislative body to be used for a purpose described in Subsection (11)(a). (d) Except as provided in Subsection [(13)(c)] (14)(c), for a county that imposes a sales and use tax under this section, for revenue designated for public transit as described in Subsection (6)(b)(i), the revenue shall be transferred to the relevant county legislative body to be used for a purpose described in Subsection (11)(a). (12) A large public transit district shall send notice to the commission at least 90 days before the earlier of: (a) the date that is three years after the date on which at least three counties described in Subsections (4) and (5) have imposed a tax under this section; or (b) June 30, 2030. (13) For a city described in Subsection (10)(c), during the bondable term of a revitalization project described in Subsection (10)(c), the city shall transfer at least 50%, and may transfer up to 100%, of any revenue the city receives from a distribution under Subsection (4)(b) to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 for revitalization of a convention center owned by the county within a city of the first class and surrounding revitalization projects related to the convention center as permitted in Subsection (10)(c). (14) (a) Notwithstanding Section 59-12-2208, a county legislative body may, but is not required to, submit an opinion question to the county's registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section. (b) If a county passes an ordinance to impose a sales and use tax as described in this section, the sales and use tax shall take effect on the first day of the calendar quarter after a 90-day period that begins on the date the commission receives written notice from the county of the passage of the ordinance. (c) A county that imposed the local option sales and use tax described in this section before January 1, 2023, may maintain that county's distribution allocation in place as of January 1, 2023. (15) (a) Revenue collected from a sales and use tax under this section may not be used to supplant existing General Fund appropriations that a county, city, or town budgeted for transportation or public transit as of the date the tax becomes effective for a county, city, or town. (b) The limitation under Subsection (15)(a) does not apply to a designated transportation or public transit capital or reserve account a county, city, or town established before the date the tax becomes effective. Section 27. Section 63N-23-101, which is renumbered from Section 63N-3-602 is renumbered and amended to read: 23. Housing Investment and Opportunity Act 1. General Provisions [63N-3-602] 63N-23-101 Effective 05/06/26. Definitions. As used in this [part] chapter: (1) "Affordable housing" means housing occupied or reserved for occupancy by households with a gross household income: (a) equal to or less than 80% of the county median gross income for households of the same size, in certain circumstances as provided in this part; or (b) equal to or less than 60% of the county median gross income for households of the same size, in certain circumstances as provided in this part. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Base taxable value" means a property's taxable value as shown upon the assessment roll last equalized during the base year. (4) "Base year" means, for each property tax increment collection period triggered within a proposed housing and transit reinvestment zone[or], convention center reinvestment zone project area, or home ownership promotion zone, the calendar year [prior to] before the calendar year the property tax increment begins to be collected for the parcels that are in a project that is triggered for that collection period. (5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast and efficient service that may include dedicated lanes, busways, traffic signal priority, off-board fare collection, elevated platforms, and enhanced stations. (6) "Bus rapid transit station" means an existing station, stop, or terminal, or a proposed station, stop, or terminal that is specifically identified as needed in phase one of a metropolitan planning organization's adopted long-range transportation plan and in phase one of the relevant public transit district's adopted long-range transit plan: (a) along an existing bus rapid transit line; or (b) along an extension to an existing bus rapid transit line or new bus rapid transit line. (7) "Capital city" means the same as that term is defined in Section 17D-4-102. (8) (a) "Commuter rail" means a regional passenger rail transit facility operated by a large public transit district. (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public transit district. (9) "Commuter rail station" means an existing station, stop, or terminal, or a proposed station, stop, or terminal, which has been specifically identified as needed in phase one of a metropolitan planning organization's adopted long-range transportation plan and in phase one of the relevant public transit district's adopted long-range transit plan: (a) along an existing commuter rail line; (b) along an extension to an existing commuter rail line or new commuter rail line; (c) along a fixed guideway extension from an existing commuter rail line; or (d) at the landing point of a pedestrian bridge or vehicle bridge extending from an existing commuter rail station. (10) "Convention center" means a convention center owned by a county of the first class within a city of the first class. (11) "Convention center revitalization project" means a project within a city of the first class within a county of the first class for the revitalization, activation, and modernization of a convention center and the surrounding area, including projects meeting the objectives described in [Section 63N-3-603.1] Section 63N-23-301 or 63N-23-401. (12) "Convention center reinvestment zone" means a convention center reinvestment zone created under [this part] Part 3, Convention Center Reinvestment Zone. (13) "Convention center reinvestment zone in a capital city" means a convention center reinvestment zone in a capital city created under Part 4, Convention Center Reinvestment Zone in a Capital City. [(13)] (14) (a) "Developable area" means the portion of land within a housing and transit reinvestment zone available for development and construction of business and residential uses. (b) "Developable area" does not include portions of land within a housing and transit reinvestment zone that are allocated to: (i) parks; (ii) recreation facilities; (iii) open space; (iv) trails; (v) publicly-owned roadway facilities; or (vi) other public facilities. [(14)] (15) "Dwelling unit" means one or more rooms arranged for the use of one or more individuals living together, as a single housekeeping unit normally having cooking, living, sanitary, and sleeping facilities. [(15)] (16) "Eligible municipality" means a city that: (a) (i) is the county seat of a county of the first class; or (ii) a city of the first class located in a county of the first class; and (b) has a convention center within the boundary of the city. [(16)] (17) "Enhanced development" means the construction of mixed uses including housing, commercial uses, and related facilities. [(17)] (18) "Enhanced development costs" means extra costs associated with structured parking costs, vertical construction costs, horizontal construction costs, life safety costs, structural costs, conveyor or elevator costs, and other costs incurred due to the increased height of buildings or enhanced development. [(18)] (19) "First home investment zone" means the same as that term is defined in Section [63N-3-1601] 63N-23-701. [(19)] (20) "Fixed guideway" means the same as that term is defined in Section 59-12-102. [(20)] (21) "Horizontal construction costs" means the additional costs associated with earthwork, over excavation, utility work, transportation infrastructure, and landscaping to achieve enhanced development in the housing and transit reinvestment zone. [(21)] (22) "Housing and transit reinvestment zone" means a housing and transit reinvestment zone created [pursuant to this part] under Section 63N-23-202. [(22)] (23) "Housing and transit reinvestment zone committee" means a housing and transit reinvestment zone committee created [pursuant to Section 63N-3-605] in accordance with Section 63N-23-102. [(23)] (24) "Large public transit district" means the same as that term is defined in Section 17B-2a-802. [(24)] (25) "Light rail" means a passenger rail public transit system with right-of-way and fixed rails: (a) dedicated to exclusive use by light-rail public transit vehicles; (b) that may cross streets at grade; and (c) that may share parts of surface streets. [(25)] (26) "Light rail station" means an existing station, stop, or terminal or a proposed station, stop, or terminal, which has been specifically identified as needed in phase one of a metropolitan planning organization's adopted long-range transportation plan and in phase one of the relevant public transit district's adopted long-range plan: (a) along an existing light rail line; or (b) along an extension to an existing light rail line or new light rail line. [(26)] (27) "Metropolitan planning organization" means the same as that term is defined in Section 72-1-208.5. [(27)] (28) "Mixed use development" means development with a mix of: (a) multi-family residential use; and (b) at least one additional land use, which shall be a significant part of the overall development. [(28)] (29) "Municipality" means the same as that term is defined in Section 10-1-104. [(29)] (30) "Participant" means the same as that term is defined in Section 17C-1-102. [(30)] (31) "Participation agreement" means the same as that term is defined in Section 17C-1-102, except that the agency may not provide and the person may not receive a direct subsidy. [(31)] (32) "Project" means a housing and transit reinvestment zone or convention center reinvestment zone created under this part. (33) "Project area" means the same as that term is defined in Section 17C-1-102. [(32)] (34) (a) "Property tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a housing and transit reinvestment zone or convention center reinvestment zone designated in the applicable reinvestment zone proposal as the area from which tax increment is to be collected, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Property tax increment" does not include property tax revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); (ii) a county additional property tax described in Subsection 59-2-1602(4); or (iii) a public library fund levy described in Subsection 9-7-501(2). [(33)] (35) "Public transit county" means a county that has created a small public transit district. [(34)] (36) "Public transit hub" means a public transit depot or station where four or more routes serving separate parts of the county-created transit district stop to transfer riders between routes. [(35)] (37) "Sales and use tax base year" means: (a) for a housing and transit reinvestment zone, a sales and use tax year determined by the first year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax boundary for a housing and transit reinvestment zone is established; or (b) for a convention center reinvestment zone, a sales and use tax year determined by the year specified in the approved proposal for a convention center reinvestment zone, pertaining to the taxes: (i) imposed under Section 59-12-103; (ii) imposed by a city of the first class in a county of the first class under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; (iii) imposed by a city of the first class in a county of the first class under Section 59-12-402.1; (iv) imposed by a county of the first class under Section 59-12-1102; and (v) imposed by a county of the first class under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act. [(36)] (38) "Sales and use tax boundary" means: (a) for a housing and transit reinvestment zone, a boundary created as described in Section [63N-3-604] 63N-23-202, based on state sales and use tax collection boundaries that correspond as closely as reasonably practicable to the housing and transit reinvestment zone boundary; or (b) for a convention center reinvestment zone, a boundary created as described in Section [63N-3-604.1] 63N-23-302, based on state sales and use tax collection boundaries that correspond as closely as reasonably practicable to the convention center reinvestment zone boundary. [(37)] (39) "Sales and use tax increment" means: (a) for a housing and transit reinvestment zone, the difference between: (i) the amount of state sales and use tax revenue generated each year following the sales and use tax base year by the sales and use tax from the area within a housing and transit reinvestment zone designated in the housing and transit reinvestment zone proposal as the area from which sales and use tax increment is to be collected; and (ii) the amount of state sales and use tax revenue that was generated from that same area during the sales and use tax base year; or (b) for a convention center reinvestment zone, the difference between: (i) the amount of sales and use tax revenue generated each year following the sales and use tax base year by the sales and use tax from the area within a convention center reinvestment zone designated in the convention center reinvestment zone proposal as the area from which sales and use tax increment is to be collected; and (ii) the amount of sales and use tax revenue that was generated from that same area during the sales and use tax base year. [(38)] (40) "Sales and use tax revenue" means: (a) for a housing and transit reinvestment zone, revenue that is generated from the tax imposed under Section 59-12-103; or (b) for a convention center reinvestment zone, revenue that is generated from: (i) the sales and use taxes imposed under Section 59-12-103; and (ii) the sales and use taxes: (A) imposed by a city of the first class in a county of the first class under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; (B) imposed by a city of the first class in a county of the first class under Section 59-12-402.1; (C) imposed by a county of the first class under Section 59-12-1102; and (D) imposed by a county of the first class under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act. [(39)] (41) "Small public transit district" means the same as that term is defined in Section 17B-2a-802. (42) (a) "Station area" means: (i) for a fixed guideway public transit station that provides rail services, the area within a one-half mile radius of the center of the fixed guideway public transit station platform; or (ii) for a fixed guideway public transit station that provides bus services only, the area within a one-fourth mile radius of the center of the fixed guideway public transit station platform. (b) "Station area" includes any parcel bisected by the radius limitation described in Subsection (42) (a)(i) or (ii). (43) "Station area plan" means a plan that: (a) establishes a vision, and the actions needed to implement that vision, for the development of land within a station area; and (b) is developed and adopted in accordance with Section 63N-23-104. [(40)] (44) "Tax Commission" means the State Tax Commission created in Section 59-1-201. [(41)] (45) "Taxing entity" means the same as that term is defined in Section 17C-1-102. (46) "Transportation reinvestment zone" means a transportation reinvestment zone created under Section 63N-23-901. [(42)] (47) "Vertical construction costs" means the additional costs associated with construction above four stories and structured parking to achieve enhanced development in the housing and transit reinvestment zone. Section 28. Section 63N-23-102, which is renumbered from Section 63N-3-605 is renumbered and amended to read: [63N-3-605] 63N-23-102 Effective 05/06/26. Housing and transit reinvestment zone committee -- Creation. (1) For any housing and transit reinvestment zone[proposed under this part], convention center reinvestment zone, convention center reinvestment zone in a capital city, or for a first home investment zone proposed [in accordance with Part 16, First Home Investment Zone Act,] under this chapter, there is created a housing and transit reinvestment zone committee with membership described in Subsection (2). (2) Each housing and transit reinvestment zone committee shall consist of the following members: (a) one representative from the Governor's Office of Economic Opportunity, designated by the executive director of the Governor's Office of Economic Opportunity; (b) one representative from each municipality that is a party to the proposed housing and transit reinvestment zone or first home investment zone, designated by the chief executive officer of each respective municipality; (c) a member of the Transportation Commission created in Section 72-1-301; (d) a member of the board of trustees of a large public transit district; (e) one individual from the Office of the State Treasurer, designated by the state treasurer; (f) two members designated by the president of the Senate; (g) two members designated by the speaker of the House of Representatives; (h) one member designated by the chief executive officer of each county affected by the housing and transit reinvestment zone or first home investment zone; (i) two representatives designated by the school superintendent from the school district affected by the housing and transit reinvestment zone or first home investment zone; and (j) one representative, representing the largest participating local taxing entity, after the municipality, county, and school district. (3) The individual designated by the Governor's Office of Economic Opportunity as described in Subsection (2)(a) shall serve as chair of the housing and transit reinvestment zone committee. (4) (a) A majority of the members of the housing and transit reinvestment zone committee constitutes a quorum of the housing and transit reinvestment zone committee. (b) An action by a majority of a quorum of the housing and transit reinvestment zone committee is an action of the housing and transit reinvestment zone committee. (5) (a) After the Governor's Office of Economic Opportunity receives the results of the analysis described in Section [63N-3-604] 63N-23-202, and after the Governor's Office of Economic Opportunity has received a request from the submitting municipality or public transit county to submit the housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each of the entities described in Subsection (2) of the formation of the housing and transit reinvestment zone committee. (b) For a first home investment zone, the housing and transit reinvestment zone committee shall follow the procedures described in Section [63N-3-1604] 63N-23-704. (6) (a) The chair of the housing and transit reinvestment zone committee shall convene a public meeting to consider the proposed housing and transit reinvestment zone. (b) A meeting of the housing and transit reinvestment zone committee is subject to Title 52, Chapter 4, Open and Public Meetings Act. (7) (a) The proposing municipality or public transit county shall present the housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee in a public meeting. (b) The housing and transit reinvestment zone committee shall, for a housing and transit reinvestment zone proposal: (i) evaluate and verify whether the elements of a housing and transit reinvestment zone described in Subsections [63N-3-603(2) and (4)] 63N-23-201(2) and (4) have been met; and (ii) evaluate the proposed housing and transit reinvestment zone relative to the analysis described in Subsection [63N-3-604 (2)] 63N-23-202(2). (c) The housing and transit reinvestment zone committee shall, for a convention center reinvestment zone proposal, evaluate and verify whether the objectives of a convention center reinvestment zone described in Section [63N-3-603.1] 63N-23-301 have been met. (d) The housing and transit reinvestment zone committee shall, for a convention center reinvestment zone in a capital city proposal, evaluate and verify whether the objectives of a convention center reinvestment zone in a capital city described in Section 63N-23-401 have been met. (8) (a) Subject to Subsection (8)(b), the housing and transit reinvestment zone committee may: (i) (A) for a housing and transit reinvestment zone, request changes to the housing and transit reinvestment zone proposal based on the analysis, characteristics, and criteria described in Section [63N-3-604] 63N-23-202; [or] (B) for a convention center reinvestment zone, request changes to the convention center reinvestment zone proposal based on the characteristics and criteria described in Sections [63N-3-603.1] 63N-23-301 and [63N-3-604.1] 63N-23-302; or (C) for a convention center reinvestment zone in a capital city, request changes to the convention center reinvestment zone proposal based on the characteristics and criteria described in Sections 63N-23-401 and 63N-23-402; or (ii) vote to approve or deny the proposal. (b) Before the housing and transit reinvestment zone committee may approve the housing and transit reinvestment zone proposal, the municipality or public transit county proposing the housing and transit reinvestment zone shall ensure that the area of the proposed housing and transit reinvestment zone is zoned in such a manner to accommodate the requirements of a housing and transit reinvestment zone described in this section and the proposed development. (9) If a housing and transit reinvestment zone is approved by the committee: (a) the proposed housing and transit reinvestment zone is established according to the terms of the housing and transit reinvestment zone proposal; (b) affected local taxing entities are required to participate according to the terms of the housing and transit reinvestment zone proposal; and (c) each affected taxing entity is required to participate at the same rate. (10) A housing and transit reinvestment zone proposal may be amended by following the same procedure as approving a housing and transit reinvestment zone proposal. (11) (a) The approval for a convention center reinvestment zone in a capital city may be completed with a condition that the relevant municipality also create a public infrastructure district as provided in [Subsection 63N-3-607(8)(b)] Section 63N-23-403. (b) The approval described in Subsection (11)(a) shall verify that the requirements and limitations on use of funds is limited to the conditions described under [Subsections 63N-3-604.1(2)(b) and (c)] Section 63N-23-403. Section 29. Section 63N-23-103, which is renumbered from Section 63N-3-606 is renumbered and amended to read: [63N-3-606] 63N-23-103 Effective 05/06/26. Notice requirements. (1) In approving a housing and transit reinvestment zone or convention center reinvestment zone proposal, the housing and transit reinvestment zone committee shall follow the hearing and notice requirements for creating a housing and transit reinvestment zone or convention center reinvestment zone area proposal. (2) Within 30 days after the housing and transit reinvestment zone committee approves a proposed housing and transit reinvestment zone, the municipality or public transit county, or for a convention center reinvestment zone, the Governor's Office of Economic Opportunity, shall: (a) record with the recorder of the county in which the housing and transit reinvestment zone or convention center reinvestment zone is located a document containing: (i) a description of the land within the housing and transit reinvestment zone or convention center reinvestment zone; (ii) a statement that the proposed housing and transit reinvestment zone or convention center reinvestment zone has been approved; and (iii) the date of adoption; (b) transmit a copy of the description of the land within the housing and transit reinvestment zone or convention center reinvestment zone and an accurate map or plat indicating the boundaries of the housing and transit reinvestment zone or convention center reinvestment zone to the Utah Geospatial Resource Center created under Section 63A-16-505; and (c) transmit a copy of the approved housing and transit reinvestment zone or convention center reinvestment zone proposal, map, and description of the land within the housing and transit reinvestment zone or convention center reinvestment zone, to: (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any part of the housing and transit reinvestment zone or convention center reinvestment zone is located; (ii) the officer or officers performing the function of auditor or assessor for each taxing entity that does not use the county assessment roll or collect the taxing entity's taxes through the county; (iii) the legislative body or governing board of each taxing entity; (iv) the State Tax Commission; and (v) the State Board of Education. Section 30. Section 63N-23-104, which is renumbered from Section 10-21-203 is renumbered and amended to read: [10-21-203] 63N-23-104 Effective 05/06/26. Station area plan requirements -- Contents -- Review and certification by applicable metropolitan planning organization. (1) (a) Subject to the requirements of this section, a municipality that has a fixed guideway public transit station located within the municipality's boundaries shall, for the station area: (i) develop and adopt a station area plan; and (ii) adopt any appropriate land use regulations to implement the station area plan. (b) The requirements of Subsection (1)(a) shall be considered satisfied if: (i) (A) the municipality has already adopted plans or ordinances, approved land use applications, approved agreements or financing, or investments have been made, before June 1, 2022, that substantially promote each of the objectives in Subsection (6)(a) within the station area, and can demonstrate that such plans, ordinances, approved land use applications, approved agreements or financing, or investments are still relevant to making meaningful progress towards achieving such objectives; and (B) the municipality adopts a resolution finding that the objectives of Subsection (6)(a) have been substantially promoted; or (ii) (A) the municipality has determined that conditions exist that make satisfying a portion or all of the requirements of Subsection (1)(a) for a station area impracticable, including conditions that relate to existing development, entitlements, land ownership, land uses that make opportunities for new development and long-term redevelopment infeasible, environmental limitations, market readiness, development impediment conditions, or other similar conditions; and (B) the municipality adopts a resolution describing the conditions that exist to make satisfying the requirements of Subsection (1)(a) impracticable. (c) To the extent that previous actions by a municipality do not satisfy the requirements of Subsection (1)(a) for a station area, the municipality shall take the actions necessary to satisfy those requirements. (2) (a) A municipality that has a new fixed guideway public transit station located within the municipality's boundaries shall satisfy the requirements of Subsection (1)(a) for the station area surrounding the new fixed guideway public transit station before the new fixed guideway public transit station begins transit services. (b) Except as provided in Subsections (2)(c) and (d), a municipality that has an existing fixed guideway public transit station located within the municipality's boundaries shall satisfy the requirements of Subsection (1)(a) for the station area surrounding the existing fixed guideway public transit station on or before December 31, 2025. (c) If a municipality has more than four existing fixed guideway public transit stations located within the municipality's boundaries, the municipality shall: (i) on or before December 31, 2025, satisfy the requirements of Subsection (1)(a) for four or more station areas located within the municipality; and (ii) on or before December 31 of each year thereafter, satisfy the requirements of Subsection (1)(a) for no less than two station areas located within the municipality until the municipality has satisfied the requirements of Subsection (1)(a) for each station area located within the municipality. (d) (i) Subject to Subsection (2)(d)(ii): (A) if a municipality receives a complete qualifying land use petition on or before July 1, 2022, the municipality shall satisfy the requirements of Subsection (1)(a) for the station area in which the development is proposed on or before July 1, 2023; and (B) if a municipality receives a complete qualifying land use petition after July 1, 2022, the municipality shall satisfy the requirements of Subsection (1)(a) for the station area in which the development is proposed within a 12-month period beginning on the first day of the month immediately following the month in which the qualifying land use petition is submitted to the municipality, and shall notify the applicable metropolitan planning organization of the receipt of the qualified land use petition within 45 days of the date of receipt. (ii) (A) A municipality is not required to satisfy the requirements of Subsection (1)(a) for more than two station areas under Subsection (2)(d)(i) within any 12-month period. (B) If a municipality receives more than two complete qualifying land use petitions on or before July 1, 2022, the municipality shall select two station areas for which the municipality will satisfy the requirements of Subsection (1)(a) in accordance with Subsection (2)(d)(i)(A). (iii) A municipality shall process on a first priority basis a land use application, including an application for a building permit, if: (A) the land use application is for a residential use within a station area for which the municipality has not satisfied the requirements of Subsection (1)(a); and (B) the municipality would be required to change a zoning designation for the land use application to be approved. (e) Notwithstanding Subsections (2)(a) through (d), the time period for satisfying the requirements of Subsection (1)(a) for a station area may be extended once for a period of 12 months if: (i) the municipality demonstrates to the applicable metropolitan planning organization that conditions exist that make satisfying the requirements of Subsection (1)(a) within the required time period infeasible, despite the municipality's good faith efforts; and (ii) the applicable metropolitan planning organization certifies to the municipality in writing that the municipality satisfied the demonstration in Subsection (2)(e)(i). (3) (a) Except as provided in Subsection (3)(b), if a station area is included within the boundaries of more than one municipality, each municipality with jurisdiction over the station area shall satisfy the requirements of Subsection (1)(a) for the portion of the station area over which the municipality has jurisdiction. (b) Two or more municipalities with jurisdiction over a station area may coordinate to develop a shared station area plan for the entire station area. (4) A municipality that has more than one fixed guideway public transit station located within the municipality may, through an integrated process, develop station area plans for multiple station areas if the station areas are within close proximity of each other. (5) (a) A municipality that is required to develop and adopt a station area plan under this section may request technical assistance from the applicable metropolitan planning organization. (b) An applicable metropolitan planning organization that receives funds from the Governor's Office of Economic Opportunity under Section 63N-3-113 shall, when utilizing the funds, give priority consideration to requests for technical assistance for station area plans required under Subsection (2)(d). (6) (a) A station area plan shall promote the following objectives within the station area: (i) increasing the availability and affordability of housing, including moderate income housing; (ii) promoting sustainable environmental conditions; (iii) enhancing access to opportunities; and (iv) increasing transportation choices and connections. (b) (i) To promote the objective described in Subsection (6)(a)(i), a municipality may consider implementing the following actions: (A) aligning the station area plan with the moderate income housing element of the municipality's general plan; (B) providing for densities necessary to facilitate the development of moderate income housing; (C) providing for affordable costs of living in connection with housing, transportation, and parking; or (D) any other similar action that promotes the objective described in Subsection (6)(a)(i). (ii) To promote the objective described in Subsection (6)(a)(ii), a municipality may consider implementing the following actions: (A) conserving water resources through efficient land use; (B) improving air quality by reducing fuel consumption and motor vehicle trips; (C) establishing parks, open spaces, and recreational opportunities; or (D) any other similar action that promotes the objective described in Subsection (6)(a)(ii). (iii) To promote the objective described in Subsection (6)(a)(iii), a municipality may consider the following actions: (A) maintaining and improving the connections between housing, transit, employment, education, recreation, and commerce; (B) encouraging mixed-use development; (C) enabling employment and educational opportunities within the station area; (D) encouraging and promoting enhanced broadband connectivity; or (E) any other similar action that promotes the objective described in Subsection (6)(a)(iii). (iv) To promote the objective described in Subsection (6)(a)(iv), a municipality may consider the following: (A) supporting investment in infrastructure for all modes of transportation; (B) increasing utilization of public transit; (C) encouraging safe streets through the designation of pedestrian walkways and bicycle lanes; (D) encouraging manageable and reliable traffic conditions; (E) aligning the station area plan with the regional transportation plan of the applicable metropolitan planning organization; or (F) any other similar action that promotes the objective described in Subsection (6)(a)(iv). (7) A station area plan shall include the following components: (a) a station area vision that: (i) is consistent with Subsection (6); and (ii) describes the following: (A) opportunities for the development of land within the station area under existing conditions; (B) constraints on the development of land within the station area under existing conditions; (C) the municipality's objectives for the transportation system within the station area and the future transportation system that meets those objectives; (D) the municipality's objectives for land uses within the station area and the future land uses that meet those objectives; (E) the municipality's objectives for public and open spaces within the station area and the future public and open spaces that meet those objectives; and (F) the municipality's objectives for the development of land within the station area and the future development standards that meet those objectives; (b) a map that depicts: (i) the station area; (ii) the area within the station area to which the station area plan applies, provided that the station area plan may apply to areas outside the station area, and the station area plan is not required to apply to the entire station area; and (iii) the area where each action is needed to implement the station area plan; (c) an implementation plan that identifies and describes each action needed within the next five years to implement the station area plan, and the party responsible for taking each action, including any actions to: (i) modify land use regulations; (ii) make infrastructure improvements; (iii) modify deeds or other relevant legal documents; (iv) secure funding or develop funding strategies; (v) establish design standards for development within the station area; or (vi) provide environmental remediation; (d) a statement that explains how the station area plan promotes the objectives described in Subsection (6)(a); and (e) as an alternative or supplement to the requirements of Subsection (6) or this Subsection (7), and for purposes of Subsection (1)(b)(ii), a statement that describes any conditions that would make the following impracticable: (i) promoting the objectives described in Subsection (6)(a); or (ii) satisfying the requirements of this Subsection (7). (8) A municipality shall develop a station area plan with the involvement of all relevant stakeholders that have an interest in the station area through public outreach and community engagement, including: (a) other impacted communities; (b) the applicable public transit district; (c) the applicable metropolitan planning organization; (d) the Department of Transportation; (e) owners of property within the station area; and (f) the municipality's residents and business owners. (9) (a) A municipality that is required to develop and adopt a station area plan for a station area under this section shall submit to the applicable metropolitan planning organization and the applicable public transit district documentation evidencing that the municipality has satisfied the requirement of Subsection (1)(a)(i) for the station area, including: (i) a station area plan; or (ii) a resolution adopted under Subsection (1)(b)(i) or (ii). (b) The applicable metropolitan planning organization, in consultation with the applicable public transit district, shall: (i) review the documentation submitted under Subsection (9)(a) to determine the municipality's compliance with this section; and (ii) provide written certification to the municipality if the applicable metropolitan planning organization determines that the municipality has satisfied the requirement of Subsection (1)(a)(i) for the station area. (c) The municipality shall include the certification described in Subsection (9)(b)(ii) in the municipality's report to the Department of Workforce Services under Section 10-21-202. (10) (a) Following certification by a metropolitan planning organization of a municipality's station area plan under Subsection (9)(b)(ii), the municipality shall provide a report to the applicable metropolitan planning organization on or before December 31 of the fifth year after the year in which the station area plan was certified, and every five years thereafter for a period not to exceed 15 years. (b) The report described in Subsection (10)(a) shall: (i) contain the status of advancing the station area plan objectives, including, if applicable, actions described in the implementation plan required in Subsection (7)(c); and (ii) identify potential actions over the next five years that would advance the station area plan objectives. (c) If a municipality has multiple certified station area plans, the municipality may consolidate the reports required in Subsection (10)(a) for the purpose of submitting reports to the metropolitan planning organization. Section 31. Section 63N-23-201, which is renumbered from Section 63N-3-603 is renumbered and amended to read: 2. Housing and Transit Reinvestment Zone [63N-3-603] 63N-23-201 Effective 05/06/26. Applicability, requirements, and limitations on a housing and transit reinvestment zone. (1) A housing and transit reinvestment zone proposal created under this part shall demonstrate how the proposal addresses the following objectives: (a) higher utilization of public transit; (b) increasing availability of housing, including affordable housing, and fulfillment of moderate income housing plans; (c) promoting and encouraging development of owner-occupied housing; (d) improving efficiencies in parking and transportation, including walkability of communities near public transit facilities; (e) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives; (f) conserving water resources through efficient land use; (g) improving air quality by reducing fuel consumption and motor vehicle trips; (h) encouraging transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas; (i) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-20-404(2); (j) increasing access to employment and educational opportunities; and (k) increasing access to child care. (2) (a) In order to accomplish the objectives described in Subsection (1), a municipality or public transit county that initiates the process to create a housing and transit reinvestment zone as described in this part shall ensure that the proposal for a housing and transit reinvestment zone includes: (i) except as provided in Subsection (3), at least 12% of the proposed dwelling units within the housing and transit reinvestment zone are affordable housing units, with: (A) up to 9% of the proposed dwelling units occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the county median gross income for households of the same size; and (B) at least 3% of the proposed dwelling units occupied or reserved for occupancy by households with a gross household income equal to or less than 60% of the county median gross income for households of the same size; (ii) except as provided in Subsection (2)(c), a housing and transit reinvestment zone shall include: (A) at least 51% of the developable area within a housing and transit reinvestment zone as residential uses; and (B) an average of at least 50 dwelling units per acre within the acreage of the housing and transit reinvestment zone dedicated to residential uses; (iii) mixed-use development; and (iv) a mix of dwelling units to ensure that at least 25% of the dwelling units have more than one bedroom. (b) (i) If a housing and transit reinvestment zone is phased, a municipality or public transit county shall ensure that a housing and transit reinvestment zone is phased and developed to provide the required 12% of affordable housing units in each phase of development. (ii) A municipality or public transit county may allow a housing and transit reinvestment zone to be phased and developed in a manner to provide more of the required affordable housing units in early phases of development. (iii) A municipality or public transit county shall include in a housing and transit reinvestment zone proposal an affordable housing plan, which may include deed restrictions, to ensure the affordable housing required in the proposal will continue to meet the definition of affordable housing at least throughout the entire term of the housing and transit reinvestment zone. (c) For a housing and transit reinvestment zone proposed by a public transit county at a public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at a bus rapid transit station, the housing and transit reinvestment zone shall include: (i) at least 51% of the developable area within a housing and transit reinvestment zone as residential uses; and (ii) an average of at least 39 dwelling units per acre within the acreage of the housing and transit reinvestment zone dedicated to residential uses. (3) A municipality or public transit county that, at the time the housing and transit reinvestment zone proposal is approved by the housing and transit reinvestment zone committee, meets the affordable housing guidelines of the United States Department of Housing and Urban Development at 60% area median income is exempt from the requirement described in Subsection (2)(a). (4) (a) A municipality may only propose a housing and transit reinvestment zone at a commuter rail station, and a public transit county may only propose a housing and transit reinvestment zone at a public transit hub, that: (i) subject to Subsection (5)(a): (A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not exceed a [1/3] one-third mile radius of a commuter rail station; (II) for a municipality that is a city of the first or second class, as classified under Section 10-2-301, that is within a county of the first or second class, as classified under Section 17-60-104, with an opportunity zone created in accordance with Section 1400Z-1, Internal Revenue Code, does not exceed a [1/2] one-half mile radius of a commuter rail station located within the opportunity zone; or (III) for a public transit county, does not exceed a [1/3] one-third mile radius of a public transit hub; and (B) has a total area of no more than 125 noncontiguous acres; (ii) subject to Section [63N-3-607] 63N-23-203, proposes the capture of a maximum of 80% of each taxing entity's property tax increment above the base year for a term of no more than 25 consecutive years on each parcel within a 45-year period not to exceed the property tax increment amount approved in the housing and transit reinvestment zone proposal; and (iii) the commencement of collection of property tax increment, for all or a portion of the housing and transit reinvestment zone project area, shall be triggered by providing notice as described in Subsection (6), but a housing and transit reinvestment zone proposal may not propose or include triggering more than three property tax increment collection periods for the same project during the applicable 45-year period. (b) A municipality or public transit county may only propose a housing and transit reinvestment zone at a light rail station or bus rapid transit station that: (i) subject to Subsection (5): (A) does not exceed: (I) except as provided in Subsection (4)(b)(i)(A)(II), (III), or (4)(e), a [1/4] one-quarter mile radius of a bus rapid transit station or light rail station; (II) for a municipality that is a city of the first class, as classified under Section 10-2-301, with a population greater than 150,000 that is within a county of the first class, as classified under Section 17-60-104, a [1/2] one-half mile radius of a light rail station located in an opportunity zone created in accordance with Section 1400Z-1, Internal Revenue Code; or [1400Z-1, Internal Revenue Code; or] (III) a [1/2] one-half mile radius of a light rail station located within a master-planned development of 500 acres or more; and (B) has a total area of no more than 100 noncontiguous acres; (ii) subject to Subsection (4)(c) and Section [63N-3-607] 63N-23-203, proposes the capture of a maximum of 80% of each taxing entity's property tax increment above the base year for a term of no more than 15 consecutive years on each parcel within a 30-year period not to exceed the property tax increment amount approved in the housing and transit reinvestment zone proposal; and (iii) the commencement of collection of property tax increment, for all or a portion of the housing and transit reinvestment zone project area, shall be triggered by providing notice as described in Subsection (6), but a housing and transit reinvestment zone proposal may not propose or include triggering more than three property tax increment collection periods for the same project during the applicable 30-year period. (c) For a housing and transit reinvestment zone proposed by a public transit county at a public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at a bus rapid transit station, if the proposed housing density within the housing and transit reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each taxing entity's property tax increment above the base year is 60%. (d) A municipality that is a city of the first class, as classified under Section 10-2-301, with a population greater than 150,000 in a county of the first class, as classified under Section 17-60-104, as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may only propose one housing and transit reinvestment zone within an opportunity zone. (e) (i) Subject to Subsection (4)(e)(ii), the radius restrictions described in Subsection (4)(b)(i) do not apply, and a housing and transit reinvestment zone may extend to an area between two light rail stations located within a city of the third class if the two light rail stations are within a.95 mile distance on the same light rail line. (ii) If a housing and transit reinvestment zone is extended to accommodate two light rail stations as described in Subsection (4)(e)(i): (A) the housing and transit reinvestment zone is limited to a total area not to exceed 100 noncontiguous acres; and (B) the housing and transit reinvestment zone may not exceed a [1/4] one-quarter mile radius from the light rail stations or any point on the light rail line between the two stations. (f) If a parcel within the housing and transit reinvestment zone is included as an area that is part of a project area, as that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for collection unless the project area funds collection period, as that term is defined in Section 17C-1-102, has expired. (5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a parcel is intersected by the relevant radius limitation, the full parcel may be included as part of the housing and transit reinvestment zone area and will not count against the limitations described in Subsection (4)(a)(i). (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit station, if a parcel is intersected by the relevant radius limitation, the full parcel may be included as part of the housing and transit reinvestment zone area and will not count against the limitations described in Subsection (4)(b)(i). (c) A housing and transit reinvestment zone may not be smaller than 10 acres. (6) (a) The notice of commencement of collection of property tax increment required in Subsection (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to the following entities no later than December 31 of the year before the year for which the property tax increment collection is proposed to commence: (i) the State Tax Commission; (ii) the State Board of Education; (iii) the state auditor; (iv) the auditor of the county in which the housing and transit reinvestment zone is located; (v) each taxing entity affected by the collection of property tax increment from the housing and transit reinvestment zone; and (vi) the Governor's Office of Economic Opportunity. (b) The notice described in Subsection (4)(a)(iii) or (4)(b)(iii) may not be triggered until the date on which the housing and transit reinvestment zone proposal is approved by the housing and transit reinvestment zone committee. (7) (a) The maximum number of housing and transit reinvestment zones at light rail stations, not including a convention center reinvestment zone, is eight in any given county. (b) Within a county of the first class, the maximum number of housing and transit reinvestment zones at bus rapid transit stations is three. (c) Within a county of the first class, the maximum total combined number of housing and transit reinvestment zones described in Subsections (7)(a) and (b) and first home investment zones created under [Part 16, First Home Investment Zone Act] Part 7, First Home Investment Zone, is 11. (8) (a) For purposes of this Subsection (8), "entitlement agreement" means: (i) a land use application; (ii) a rezone petition; or (iii) a request, petition, or application to: (A) enact or approve a development agreement; or (B) to amend or modify a development agreement. (b) This Subsection (8) applies to a specified county, as defined in Section 17-80-101, that has created a small public transit district on or before January 1, 2022. (c) To accomplish the objectives described in Subsection (1), an owner of undeveloped property within an unincorporated county shall have the right to develop and build a mixed-use development if: (i) the owner has submitted an entitlement agreement to the county on or before December 31, 2022, and is within a [1/3] one-third mile radius of a public transit hub in a county described in Subsection (8)(b), including parcels that are intersected by the [1/3] one-third mile radius; and (ii) the county described in Subsection (8)(b) has failed to approve the entitlement agreement described in Subsection (8)(c)(i) by ordinance before December 31, 2022. (d) The mixed use development described in Subsection (8)(c) shall include the following: (i) (A) (I) a maximum number of dwelling units equal to 30 multiplied by the total acres of developable area within the mixed-use development dedicated exclusively to residential use; or (II) a maximum number of dwelling units equal to 15 multiplied by the total acres of the mixed-use development; and (B) at least 33% of the dwelling units as affordable housing; (ii) commercial uses, including office, retail, educational, and healthcare in support of the mixed-use development constituting no more than [1/3] one-third of the total planned gross building square footage of the subject parcels; and (iii) any other infrastructure element necessary or reasonable to support the mixed-use development, including: (A) parking infrastructure; (B) streets; (C) sidewalks; (D) parks; and (E) trails. (e) (i) The mixed-use development described in this Subsection (8) may qualify for a housing and transit reinvestment zone described in Subsection (4)(a). (ii) The county described in Subsection (8)(b) may propose a housing and transit reinvestment zone in accordance with this part, if the housing and transit reinvestment zone includes: (A) (I) an average of at least 30 dwelling units per acre within the acreage of the housing and transit reinvestment zone dedicated to residential use; or (II) a minimum number of 14 dwelling units per acre on average within the acreage of the housing and transit reinvestment zone; and (B) at least 33% of the dwelling units as affordable housing units. (f) A county may not take an action or enforce an agreement, ordinance, regulation, or requirement that prevents or creates development impediments to the development of a mixed-use development as described in this Subsection (8). (g) A county action to approve or implement the development of a mixed-use development as described in this Subsection (8) shall constitute an administrative action taken by the county and does not require county legislative action. Section 32. Section 63N-23-202, which is renumbered from Section 63N-3-604 is renumbered and amended to read: [63N-3-604] 63N-23-202 Effective 05/06/26. Process for a proposal of a housing and transit reinvestment zone -- Analysis. (1) Subject to approval of the housing and transit reinvestment zone committee as described in Section [63N-3-605] 63N-23-102, in order to create a housing and transit reinvestment zone, a municipality or public transit county that has general land use authority over the housing and transit reinvestment zone area, shall: (a) prepare a proposal for the housing and transit reinvestment zone that: (i) demonstrates that the proposed housing and transit reinvestment zone will meet the objectives described in Subsection [63N-3-603 (1)] 63N-23-201(1); (ii) explains how the municipality or public transit county will achieve the requirements of Subsection [63N-3-603 (2)(a)(i)] 63N-23-201(2)(a)(i); (iii) defines the specific transportation infrastructure needs, if any, and proposed improvements and estimated budgets; (iv) defines the boundaries of: (A) the housing and transit reinvestment zone; and (B) the sales and use tax boundary corresponding to the housing and transit reinvestment zone boundary, as described in Section [63N-3-610] 63N-23-206; (v) includes maps of the proposed housing and transit reinvestment zone to illustrate: (A) the proposed boundary and radius from a public transit hub; (B) proposed housing density within the housing and transit reinvestment zone; and (C) existing zoning and proposed zoning changes related to the housing and transit reinvestment zone; (vi) identifies any development impediments that prevent the development from being a market-rate investment, including proposed strategies and estimated budgets for addressing each one; (vii) describes the proposed development plan and estimated budgets, including the requirements described in Subsections [63N-3-603(2) and (4)] 63N-23-201(2) and (4); (viii) establishes a base year and collection period to calculate the property tax increment within the housing and transit reinvestment zone; (ix) establishes a sales and use tax base year to calculate the sales and use tax increment within the housing and transit reinvestment zone in accordance with Section [63N-3-610] 63N-23-206; (x) describes projected maximum revenues generated and the amount of property tax increment capture from each taxing entity and proposed expenditures of revenue derived from the housing and transit reinvestment zone; (xi) includes an analysis of other applicable or eligible incentives, grants, or sources of revenue that can be used to reduce the finance gap; (xii) estimates budgets and evaluates possible benefits to active and public transportation availability and impacts on air quality; (xiii) proposes a finance schedule to align expected revenue with required financing costs and payments; (xiv) provides a pro-forma for the planned development that: (A) satisfies the requirements described in Subsections [63N-3-603 (2), (3), and (4)] 63N-23-201(2) through (4); (B) includes data showing the cost difference between what type of development could feasibly be developed absent the housing and transit reinvestment zone property tax increment and the type of development that is proposed to be developed with the housing and transit reinvestment zone property tax increment; and (C) provides estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area; and (xv) for a housing and transit reinvestment zone at a commuter rail station, light rail station, or bus rapid transit station that is proposed and not in public transit service operation as of the date of submission of the proposal, demonstrates that the proposed station is: (A) included as needed in phase one of a metropolitan planning organization's adopted long-range transportation plan and in phase one of the relevant public transit district's adopted long-range plan; and (B) reasonably anticipated to be constructed in the near future; and (b) submit the housing and transit reinvestment zone proposal to the Governor's Office of Economic Opportunity. (2) As part of the proposal described in Subsection (1), a municipality or public transit county shall study and evaluate possible impacts of a proposed housing and transit reinvestment zone on parking within the city and housing and transit reinvestment zone. (3) (a) After receiving the proposal as described in Subsection (1)(b), the Governor's Office of Economic Opportunity shall: (i) within 14 days after the date on which the Governor's Office of Economic Opportunity receives the proposal described in Subsection (1)(b), provide notice of the proposal to all affected taxing entities, including the Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the housing and transit reinvestment zone is located; and (ii) at the expense of the proposing municipality or public transit county as described in Subsection (5), contract with an independent entity to perform the financial gap analysis described in Subsection (3)(b). (b) The gap analysis required in Subsection (3)(a)(ii) shall include: (i) a description of the planned development; (ii) a market analysis relative to other comparable project developments included in or adjacent to the municipality or public transit county absent the proposed housing and transit reinvestment zone; (iii) an evaluation of the proposal to and a determination of the adequacy and efficiency of the proposal; (iv) an evaluation of the proposed increment capture needed to cover the enhanced development costs associated with the housing and transit reinvestment zone proposal and enable the proposed development to occur; and (v) based on the market analysis and other findings, an opinion relative to the appropriate amount of potential public financing reasonably determined to be necessary to achieve the objectives described in [Subsection 63N-3-603 (1)] Section 63N-23-201. (c) After receiving notice from the Governor's Office of Economic Opportunity of a proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i), the State Tax Commission shall: (i) evaluate the feasibility of administering the tax implications of the proposal; and (ii) provide a letter to the Governor's Office of Economic Opportunity describing any challenges in the administration of the proposal, or indicating that the Tax Commission can feasibly administer the proposal. (4) After receiving the results from the analysis described in Subsection (3)(b), the municipality or public transit county proposing the housing and transit reinvestment zone may: (a) amend the housing and transit reinvestment zone proposal based on the findings of the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic Opportunity submit the amended housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee; or (b) request that the Governor's Office of Economic Opportunity submit the original housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee. (5) (a) The Governor's Office of Economic Opportunity may accept, as a dedicated credit, up to $20,000 from a municipality or public transit county for the costs of the gap analysis described in Subsection (3)(b). (b) The Governor's Office of Economic Opportunity may expend funds received from a municipality or public transit county as dedicated credits to pay for the costs associated with the gap analysis described in Subsection (3)(b). Section 33. Section 63N-23-203, which is renumbered from Section 63N-3-607 is renumbered and amended to read: [63N-3-607] 63N-23-203 Effective 05/06/26. Payment, use, and administration of revenue from a housing and transit reinvestment zone. (1) In accordance with this part[:] [(a)] a municipality or public transit county may receive and use property tax increment and housing and transit reinvestment zone funds[;]. [(b) (i) a public infrastructure district shall use the funds from a convention center reinvestment zone in a capital city within or for the benefit of a convention center reinvestment zone in a capital city; and] [(ii) funds from a convention center reinvestment zone in a capital city may be used outside of the capital city convention center reinvestment zone if the use meets the objectives described in Section 63N-3-603.1 and is determined by the board of the public infrastructure district to be a direct benefit to the convention center reinvestment zone in a capital city; and] [(c) a municipality or a public infrastructure district may receive and use property tax increment and convention center reinvestment zone funds for a convention center reinvestment zone that is not within a capital city.] (2) (a) [Except as provided in Subsection (3), a] A county that collects property tax on property located within a housing and transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the municipality or public transit county any property tax increment the municipality or public transit county is authorized to receive up to the maximum approved by the housing and transit reinvestment zone committee. (b) Property tax increment distributed to a municipality or public transit county in accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality or public transit county. (c) (i) Property tax increment paid to the municipality or public transit county are housing and transit reinvestment zone funds and shall be administered by an agency created by the municipality or public transit county within which the housing and transit reinvestment zone is located. (ii) Before an agency may receive housing and transit reinvestment zone funds from the municipality or public transit county, the municipality or public transit county and the agency shall enter into an interlocal agreement with terms that: (A) are consistent with the approval of the housing and transit reinvestment zone committee; and (B) meet the requirements of Section [63N-3-603] 63N-23-201 or, for a convention center reinvestment zone, the requirements of Section [63N-3-603.1] 63N-23-301. [(3) (a) A county that collects property tax on property located within a convention center reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the relevant public infrastructure district created by the eligible municipality any property tax increment the public infrastructure district is authorized to receive up to the amounts approved by the housing and transit reinvestment zone committee.] [(b) Property tax increment distributed to a public infrastructure district in accordance with Subsection (3)(a) is not revenue of the taxing entity or municipality.] [(c) Property tax increment paid to the public infrastructure district are convention center reinvestment zone funds and shall be administered by the public infrastructure district within which the convention center reinvestment zone is located.] [(4)] (3) (a) [(i)] A municipality or public transit county and agency shall use housing and transit reinvestment zone funds within, or for the direct benefit of, the housing and transit reinvestment zone. [(ii) A public infrastructure district shall use convention center reinvestment zone funds within, or for the benefit of, the convention center reinvestment zone.] (b) If any housing and transit reinvestment zone funds will be used outside of the housing and transit reinvestment zone, there [must] shall be a finding in the approved proposal for a housing and transit reinvestment zone that the use of the housing and transit reinvestment zone funds outside of the housing and transit reinvestment zone will directly benefit the housing and transit reinvestment zone. [(5)] (4) (a) A municipality or public transit county shall use housing and transit reinvestment zone funds to achieve the purposes described in Subsections [63N-3-603(1) and (2)] 63N-23-201(1) and (2), by paying all or part of the costs of any of the following: (i) income targeted housing costs; (ii) structured parking within the housing and transit reinvestment zone; (iii) enhanced development costs; (iv) horizontal construction costs; (v) vertical construction costs; (vi) property acquisition costs within the housing and transit reinvestment zone; (vii) the costs of the municipality or public transit county to create and administer the housing and transit reinvestment zone, which may not exceed 2% of the total housing and transit reinvestment zone funds, plus the costs to complete the gap analysis described in Subsection [63N-3-604(2)] 63N-23-202(2); or (viii) subject to Subsection [(5)(b)] (4)(b), costs for the construction or expansion of child care facilities within the boundary of the housing and transit reinvestment zone. (b) A municipality or public transit county may not use more than 1% of the total housing and transit reinvestment zone funds to pay costs described in Subsection [(5)(a)(viii)] (4)(a)(viii). [(c) A public infrastructure district shall use convention center reinvestment zone funds to achieve the purposes described in Section 63N-3-603.1.] [(6)] (5) Housing and transit reinvestment zone funds may be paid to a participant, if the agency and participant enter into a participation agreement that requires the participant to utilize the housing and transit reinvestment zone funds as allowed in this section. [(7)] (6) [(a)] Housing and transit reinvestment zone funds may be used to pay all of the costs of bonds issued by the municipality or public transit county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. [(b) Convention center reinvestment zone funds may be used to pay all of the costs of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest.] [(8)] (7) [(a)] A municipality or public transit county may create one or more public infrastructure districts within the housing and transit reinvestment zone under Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing and transit reinvestment zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. [(b) An eligible municipality that is a capital city shall create one or more public infrastructure districts within the convention center reinvestment zone under Title 17D, Chapter 4, Public Infrastructure District Act, and the convention center reinvestment zone funds may be used to pay all or any portion of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest.] Section 34. Section 63N-23-204, which is renumbered from Section 63N-3-608 is renumbered and amended to read: [63N-3-608] 63N-23-204 Effective 05/06/26. Applicability to an existing community reinvestment project. [(1)] For a housing and transit reinvestment zone created under this part that overlaps any portion of an existing inactive industrial site community reinvestment project area plan created in accordance with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act: [(a)] (1) if the community reinvestment project area plan captures less than 80% of the property tax increment from a taxing entity, or if a taxing entity is not participating in the community reinvestment project area plan, the housing and transit reinvestment zone may capture the difference between: [(i)] (a) 80%; and [(ii)] (b) the percentage of property tax increment captured [pursuant to] in accordance with the community reinvestment project area plan; and [(b)] (2) if a community reinvestment project area plan expires before the housing and transit reinvestment zone, the housing and transit reinvestment zone may capture the property tax increment allocated to the community reinvestment project area plan for any remaining portion of the term of the housing and transit reinvestment zone and the base year shall be updated in accordance with [Subsection 63N-3-602(4)] Subsection 63N-23-101(4). [(2) For a convention center reinvestment zone created under this part that overlaps any portion of an existing community reinvestment project area created in accordance with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act:] [(a) if the community reinvestment project area captures less than 100% of the property tax increment from a taxing entity, or if a taxing entity is not participating in the community reinvestment project area, the convention center reinvestment zone may capture the difference between:] [(i) 100%; and] [(ii) the percentage of property tax increment captured pursuant to the community reinvestment project area for each taxing entity; and] [(b) if a community reinvestment project area plan expires before the convention center reinvestment zone, the convention center reinvestment zone may capture the property tax increment allocated to the community reinvestment project area for any remaining portion of the term of the convention center reinvestment zone with the base year relating back to the base year established by the community reinvestment project area.] Section 35. Section 63N-23-205, which is renumbered from Section 63N-3-609 is renumbered and amended to read: [63N-3-609] 63N-23-205 Effective 05/06/26. Property tax increment protections. (1) Upon petition by a participating taxing entity or on the initiative of the housing and transit reinvestment zone committee creating a housing and transit reinvestment zone[or convention center reinvestment zone], a housing and transit reinvestment zone [or convention center reinvestment zone]may suspend or terminate the collection of property tax increment in a housing and transit reinvestment zone[or convention center reinvestment zone] if the housing and transit reinvestment zone committee determines, by clear and convincing evidence, presented in a public meeting of the housing and transit reinvestment zone committee, that: (a) a substantial portion of the property tax increment collected in the housing and transit reinvestment zone[or convention center reinvestment zone] has not or will not be used for the purposes provided in Section [63N-3-607] 63N-23-203; and (b) (i) the housing and transit reinvestment zone[or convention center reinvestment zone] and related public infrastructure district has no indebtedness secured by funds provided for in this chapter; or (ii) the housing and transit reinvestment zone[or convention center reinvestment zone] and related public infrastructure district has no binding financial obligations secured by this chapter. (2) A housing and transit reinvestment zone[or convention center reinvestment zone] may not collect property tax increment in excess of the property tax increment projections or limitations set forth in the housing and transit reinvestment zone[or convention center reinvestment zone] proposal. (3) The agency administering the property tax increment collected in a housing and transit reinvestment zone under Subsection [63N-3-607(2)(c) or the public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Subsection 63N-3-607(3)(c)] 63N-23-203(2)(c), shall have standing in a court with proper jurisdiction to enforce provisions of the housing and transit reinvestment zone[or convention center reinvestment zone proposal], participation agreements, and other agreements for the use of the property tax increment collected. (4) The agency administering property tax increment from a housing and transit reinvestment zone under Subsection [63N-3-607(2)(c) or the public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Subsection 63N-3-607(3)(c) which] 63N-23-203(2)(c) that is collecting property tax increment shall follow the reporting requirements described in Section 17C-1-603 and the audit requirements described in Sections 17C-1-604 and 17C-1-605. (5) For each housing and transit reinvestment zone[or convention center reinvestment zone] collecting tax increment within a county, the county auditor shall follow the reporting requirement found in Section 17C-1-606. Section 36. Section 63N-23-206, which is renumbered from Section 63N-3-610 is renumbered and amended to read: [63N-3-610] 63N-23-206 Effective 05/06/26. Sales and use tax increment in a housing and transit reinvestment zone. (1) A housing and transit reinvestment proposal shall, in consultation with the tax commission: (a) create a sales and use tax boundary as described in Subsection (2); and (b) establish a sales and use tax base year and collection period to calculate and transfer the state sales and use tax increment within the housing and transit reinvestment zone, which sales and use tax base year is established prospectively, 90 days after the date of the notice described in Subsection (4). (2) (a) The municipality or public transit county, in consultation with the tax commission, shall establish a sales and use tax boundary that: (i) is based on state sales and use tax collection boundaries, which are determined using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route extension; (ii) follows as closely as reasonably practicable the boundary of the housing and transit reinvestment zone; and (iii) is one contiguous area that includes at least the entire boundary of the housing and transit reinvestment zone. (b) If a state sales and use tax boundary is intersected by the boundary of the housing and transit reinvestment zone, the housing and transit reinvestment zone may include the entire state sales and use tax boundary. (c) The municipality or public transit county shall include the sales and use tax boundary in the housing and transit reinvestment zone proposal as described in Section [63N-3-604] 63N-23-202. (3) (a) Beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established, the tax commission shall, at least annually, transfer an amount equal to 15% of the sales and use tax increment within an established sales and use tax boundary into the Transit Transportation Investment Fund created in Section 72-2-124. (b) A municipality or public transit county may only propose one sales and use tax increment period and one sales and use tax base year for a housing and transit reinvestment zone established under this part. (4) (a) The establishment of a sales and use tax base year and the requirement described in Subsection (3) to transfer incremental sales tax revenue shall take effect: (i) on the first day of a calendar quarter; and (ii) after a 90-day waiting period, beginning on the date the commission receives notice from the municipality or public transit county meeting the requirements of Subsection (4)(b). (b) The notice described in Subsection (4)(a) shall include: (i) a statement that the housing and transit reinvestment zone will be established under this part; (ii) the approval date and effective date of the housing and transit reinvestment zone; and (iii) the definitions of the sales and use tax boundary and sales and use tax base year. (5) The State Tax Commission may retain and deposit an administrative charge in accordance with Section 59-1-306 from sales and use tax increment the State Tax Commission collects and administers under this section. Section 37. Section 63N-23-207, which is renumbered from Section 63N-3-611 is renumbered and amended to read: [63N-3-611] 63N-23-207 Effective 05/06/26. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a housing and transit reinvestment zone[or a convention center reinvestment zone], the municipality administering the property tax increment collected in the housing and transit reinvestment zone[, or for a convention center reinvestment zone, the Governor's Office of Economic Opportunity] may make corresponding adjustments to the boundary of the housing and transit reinvestment zone. Section 38. Section 63N-23-301, which is renumbered from Section 63N-3-603.1 is renumbered and amended to read: 3. Convention Center Reinvestment Zone [63N-3-603.1] 63N-23-301 Effective 05/06/26. Applicability, requirements, and limitations on a convention center reinvestment zone. (1) A convention center reinvestment zone proposal created under this part shall demonstrate how the proposal addresses the following objectives: (a) redevelopment of a convention center and the surrounding area's infrastructure and assets; (b) activation of unrealized economic opportunities related to the convention center and surrounding infrastructure and assets; (c) modernization of infrastructure and design of the convention center and surrounding area and related public spaces; (d) encouragement of transformative development and investment, including parking improvements; (e) promotion of economic development and employment opportunities; (f) improvement of the aesthetic, functionality, and walkability of the convention center and surrounding area; (g) enhancement of tourism opportunities; and (h) creation of outdoor event space to accommodate events or festivals open to the public. [(2) A convention center reinvestment zone in a capital city proposal created under this part shall also demonstrate how the proposal addresses the following objectives:] [(a) redevelopment of a convention center and surrounding infrastructure and assets that directly serve the convention center, including parking facilities;] [(b) modernization of infrastructure and design of the convention center; and] [(c) improvement of the aesthetic, functionality, and walkability of the convention center.] [(3)] (2) The Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone to accomplish the objectives described in [Subsections (1) and (2)] Subsection (1). [(4)] (3) (a) [(i)] A convention center reinvestment zone proposal may propose the capture of 100% of the property tax increment and 100% of the sales and use tax increment described in Subsection [63N-3-602(38)(b)(ii)] 63N-23-101(40)(b)(ii) for a period of 30 years. [(ii) For a convention center reinvestment zone in a capital city, in addition to the proposed capture of property tax increment and sales and use tax increment described in Subsection (4)(a)(i), the convention center reinvestment zone may propose the capture of 50% of the sales and use tax increment described in Subsection 63N-3-602(38)(b)(i).] (b) The convention center reinvestment zone proposal shall include the respective start date and base year date from which to calculate: (i) the 30-year period of property tax increment; and (ii) the 30-year period of the sales and use tax increment. (c) The convention center reinvestment zone proposal may not stagger the collection periods for the parcels within the convention center reinvestment zone boundary and the parcels within the convention center reinvestment zone boundary shall have the same 30-year collection period. (d) The convention center reinvestment zone proposal start date for the 30-year period described in this Subsection [(4)] (3), shall be no sooner than January 1 of the year of the identified tax collection year. [(e) (i) For a convention center reinvestment zone in a capital city, revenue from the property tax increment and sales and use tax increment shall be distributed directly to a convention center public infrastructure district in a capital city created as required in Subsection 63N-3-607(8)(b); and] [(ii)] (e) For a convention center reinvestment zone[in a city other than a capital city], revenue from the property tax increment and sales and use tax increment may be distributed directly to the municipality or public infrastructure district as described in the convention center reinvestment zone proposal. [(5)] (4) The Governor's Office of Economic Opportunity may only propose a convention center reinvestment zone: (a) within the boundary of the eligible municipality; (b) consisting of a total area: (i) not to exceed 50 acres; or (ii) if greater than 50 acres, approved by the relevant eligible municipality; and (c) consisting only of contiguous parcels[; and]. [(d) for a convention center reinvestment zone in a capital city, in an area that includes any portion of an existing convention center and any city block that is bordered by an existing convention center.] [(6) (a) For a convention center reinvestment zone in a capital city, the Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone on or before April 15, 2025.] [(b) For a convention center reinvestment zone that is not in a capital city, the] (5) The Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone within 60 days after receiving a petition from the relevant city. [(7)] (6) A convention center reinvestment zone does not count toward the maximum of eight housing and transit reinvestment zones in a given county as provided in Subsection [63N-3-603(7)(a)] 63N-23-201(7)(a). Section 39. Section 63N-23-302, which is renumbered from Section 63N-3-604.1 is renumbered and amended to read: [63N-3-604.1] 63N-23-302 Effective 05/06/26. Process for proposing a convention center reinvestment zone. (1) To create a convention center reinvestment zone under this part, the Governor's Office of Economic Opportunity shall, after consulting with and giving notice to the related eligible municipality and county, provide a proposal for a convention center reinvestment zone to the housing and transit reinvestment zone committee. (2) [(a)] The Governor's Office of Economic Opportunity shall ensure that a proposal for the creation of a convention center reinvestment zone includes the following information and data that: [(i)] (a) defines the boundary of the proposed convention center reinvestment zone; [(ii)] (b) describes generally the proposed development plan; [(iii)] (c) identifies a base year and collection period to calculate the property tax increment within the convention center reinvestment zone; [(iv)] (d) specifies a sales and use tax base year to calculate the sales and use tax increment within the convention center reinvestment zone in accordance with Section [63N-3-610.1] 63N-23-306; [(v)] (e) provides estimated project and investment objectives for the convention center reinvestment zone; and [(vi)] (f) outlines generally the impacts on transportation in and around the proposed convention center reinvestment zone. [(b) For a convention center reinvestment zone in a capital city, the proposal described in Subsection (2)(a) shall also provide estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area.] [(c) The proposal described in Subsection (2)(b) shall limit the use of funds to:] [(i) a convention center;] [(ii) a publicly owned entertainment venue;] [(iii) parking; and] [(iv) infrastructure related to the project.] (3) A proposal by the Governor's Office of Economic Opportunity for a convention center reinvestment zone shall demonstrate how the information and data provided in the proposal [pursuant to] described in Subsection (2) furthers the objectives described in Section [63N-3-603.1] 63N-23-301 and is in the public interest. (4) After submitting the proposal as described in Subsection (2), the Governor's Office of Economic Opportunity shall provide notice of the proposal to all affected taxing entities, including the State Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the convention center reinvestment zone is located. (5) After receiving notice from the Governor's Office of Economic Opportunity of a proposed convention center reinvestment zone as described in Subsection (4), the Tax Commission shall, within 14 days: (a) evaluate the feasibility of administering the tax implications of the proposal; and (b) provide a letter to the Governor's Office of Economic Opportunity describing any challenges in the administration of the proposal, or indicating that the State Tax Commission can feasibly administer the proposal. Section 40. Section 63N-23-303 is enacted to read: 63N-23-303 Effective 05/06/26. Payment, use, and administration of revenue from a convention center reinvestment zone. (1) In accordance with this part, a municipality or a public infrastructure district may receive and use property tax increment and convention center reinvestment zone funds for a convention center reinvestment zone that is not within a capital city. (2) (a) A county that collects property tax on property located within a convention center reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the relevant public infrastructure district created by the eligible municipality any property tax increment the public infrastructure district is authorized to receive up to the amounts approved by the housing and transit reinvestment zone committee. (b) Property tax increment distributed to a public infrastructure district in accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality. (c) Property tax increment paid to the public infrastructure district are convention center reinvestment zone funds and shall be administered by the public infrastructure district within which the convention center reinvestment zone is located. (3) (a) A public infrastructure district shall use convention center reinvestment zone funds within, or for the benefit of the convention center reinvestment zone. (b) If any housing and transit reinvestment zone funds will be used outside of the housing and transit reinvestment zone, there shall be a finding in the approved proposal for a housing and transit reinvestment zone that the use of the housing and transit reinvestment zone funds outside of the housing and transit reinvestment zone will directly benefit the housing and transit reinvestment zone. (4) A public infrastructure district shall use convention center reinvestment zone funds to achieve the purposes described in Section 63N-23-301. (5) Convention center reinvestment zone funds may be used to pay all of the costs of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest. Section 41. Section 63N-23-304 is enacted to read: 63N-23-304 Effective 05/06/26. Applicability to an existing community reinvestment zone project. For a convention center reinvestment zone created under this part that overlaps any portion of an existing community reinvestment project area created in accordance with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act: (1) if the community reinvestment project area captures less than 100% of the property tax increment from a taxing entity, or if a taxing entity is not participating in the community reinvestment project area, the convention center reinvestment zone may capture the difference between: (a) 100%; and (b) the percentage of property tax increment captured in accordance with the community reinvestment project area for each taxing entity; and (2) if a community reinvestment project area plan expires before the convention center reinvestment zone, the convention center reinvestment zone may capture the property tax increment allocated to the community reinvestment project area for any remaining portion of the term of the convention center reinvestment zone with the base year relating back to the base year established by the community reinvestment project area. Section 42. Section 63N-23-305 is enacted to read: 63N-23-305 Effective 05/06/26. Property tax increment protections. (1) Upon petition by a participating taxing entity or on the initiative of the housing and transit reinvestment zone committee creating a convention center reinvestment zone, a convention center reinvestment zone may suspend or terminate the collection of property tax increment in a convention center reinvestment zone if the housing and transit reinvestment zone committee determines, by clear and convincing evidence, presented in a public meeting of the housing and transit reinvestment zone committee, that: (a) a substantial portion of the property tax increment collected in the convention center reinvestment zone has not or will not be used for the purposes provided in Section 63N-23-303; and (b) (i) the convention center reinvestment zone and related public infrastructure district has no indebtedness secured by funds provided for in this chapter; or (ii) the convention center reinvestment zone and related public infrastructure district has no binding financial obligations secured by this chapter. (2) A convention center reinvestment zone may not collect property tax increment in excess of the property tax increment projections or limitations set forth in the convention center reinvestment zone proposal. (3) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-303, shall have standing in a court with proper jurisdiction to enforce provisions of the convention center reinvestment zone proposal, participation agreements, and other agreements for the use of the property tax increment collected. (4) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-303 that is collecting property tax increment shall follow the reporting requirements described in Section 17C-1-603 and the audit requirements described in Sections 17C-1-604 and 17C-1-605. (5) For each convention center reinvestment zone collecting tax increment within a county, the county auditor shall follow the reporting requirement found in Section 17C-1-606. Section 43. Section 63N-23-306, which is renumbered from Section 63N-3-610.1 is renumbered and amended to read: [63N-3-610.1] 63N-23-306 Effective 05/06/26. Sales and use tax increment in a convention center reinvestment zone. (1) A convention center [revitalization] reinvestment zone proposal shall, in consultation with the State Tax Commission: (a) create a sales and use tax boundary as described in Subsection (2); and (b) establish a sales and use tax base year to calculate and transfer the sales and use tax increment within the convention center [revitalization] reinvestment zone 90 days after the date of the notice described in Subsection [(4)] (5). (2) (a) The Governor's Office of Economic Opportunity, in consultation with the State Tax Commission, shall establish a sales and use tax boundary that: (i) is based on state sales and use tax collection boundaries, which are determined using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route extension; (ii) follows as closely as reasonably practicable the boundary of the convention center [revitalization] reinvestment zone; and (iii) is one contiguous area that includes at least the entire boundary of the convention center [revitalization] reinvestment zone. (b) If a state sales and use tax boundary is intersected by the boundary of the convention center [revitalization] reinvestment zone, the convention center [revitalization] reinvestment zone may include the entire state sales and use tax boundary. (c) The Governor's Office of Economic Opportunity shall include the sales and use tax boundary in the convention center [revitalization] reinvestment zone proposal as described in Section [63N-3-603.1] 63N-23-301. (3) [(a) For a convention center reinvestment zone that is not located in a capital city, beginning] Beginning no sooner than January 1, 2026, and on the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established, the State Tax Commission shall, at least annually, transfer an amount equal to 100% of the local sales and use tax increment within an established sales and use tax boundary to the relevant municipality or public infrastructure district. [(b) For a convention center reinvestment zone that is located in a capital city, beginning no sooner than January 1, 2026, and on the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone in a capital city is established, the State Tax Commission shall, at least annually, transfer an amount equal to 50% of the state sales and use tax increment and 100% of any local sales and use tax increment within an established sales and use tax boundary to the public infrastructure district created pursuant to Subsection 63N-3-607(8)(b).] (4) The Governor's Office of Economic Opportunity may only propose one sales and use tax increment period and one sales and use tax base year for a convention center [revitalization] reinvestment zone established under this part. (5) (a) The distribution of the sales and use tax increment shall begin: (i) on the first day of a calendar quarter; (ii) after a 90-day waiting period, beginning on the date the State Tax Commission receives notice from the Governor's Office of Economic Opportunity meeting the requirements of Subsection (5)(b); and (iii) no earlier than January 1, 2026 after the year set in the proposal of the approved convention center reinvestment zone. (b) The notice described in Subsection (5)(a) shall include: (i) a statement that the convention center [revitalization] reinvestment zone will be established under this part; (ii) the approval date and effective date of the convention center [revitalization] reinvestment zone; and (iii) the definitions of the sales and use tax boundary and sales and use tax base year. (6) The State Tax Commission may retain and deposit an administrative charge in accordance with Section 59-1-306 from sales and use tax revenues the State Tax Commission collects and administers under this section. Section 44. Section 63N-23-307 is enacted to read: 63N-23-307 Effective 05/06/26. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a convention center reinvestment zone, the Governor's Office of Economic Opportunity may make corresponding adjustments to the boundary of the convention center reinvestment zone. Section 45. Section 63N-23-401 is enacted to read: 4. Convention Center Reinvestment Zone in a Capital City 63N-23-401 Effective 05/06/26. Applicability, requirements, and limitations on a convention center reinvestment zone in a capital city. (1) A convention center reinvestment zone in a capital city proposal created under this part shall demonstrate how the proposal addresses the following objectives: (a) redevelopment of a convention center and the surrounding area's infrastructure and assets; (b) activation of unrealized economic opportunities related to the convention center and surrounding infrastructure and assets; (c) modernization of infrastructure and design of the convention center and surrounding area and related public spaces; (d) encouragement of transformative development and investment, including parking improvements; (e) promotion of economic development and employment opportunities; (f) improvement of the aesthetic, functionality, and walkability of the convention center and surrounding area; (g) enhancement of tourism opportunities; and (h) creation of an outdoor event space to accommodate events or festivals open to the public. (2) A convention center reinvestment zone in a capital city proposal created under this part shall also demonstrate how the proposal addresses the following objectives: (a) redevelopment of a convention center and surrounding infrastructure and assets that directly serve the convention center, including parking facilities; (b) modernization of infrastructure and design of the convention center; and (c) improvement of the aesthetic, functionality, and walkability of the convention center. (3) The Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone in a capital city to accomplish the objectives described in Subsections (1) and (2). (4) (a) A convention center reinvestment zone in a capital city proposal may propose the capture of 100% of the property tax increment and 100% of the sales and use tax increment described in Subsection 63N-23-101(40)(b)(ii) for a period of 30 years. (b) In addition to the proposed capture of property tax increment and sales and use tax increment described in Subsection (4)(a), the convention center reinvestment zone in a capital city may propose the capture of 50% of the sales and use tax increment described in Subsection 63N-23-101(40)(b)(i). (c) The convention center reinvestment zone in a capital city proposal shall include the respective start date and base year date from which to calculate: (i) the 30-year period of property tax increment; and (ii) the 30-year period of the sales and use tax increment. (d) The convention center reinvestment zone in a capital city proposal may not stagger the collection periods for the parcels within the convention center reinvestment zone boundary and the parcels within the convention center reinvestment zone boundary shall have the same 30-year collection period. (e) The convention center reinvestment zone in a capital city proposal start date for the 30-year period described in this Subsection (4), shall be no sooner than January 1 of the year of the identified tax collection year. (f) The revenue from the property tax increment and sales and use tax increment for a convention center reinvestment zone in a capital city shall be distributed directly to a convention center public infrastructure district in a capital city created under Section 63N-23-403. (g) The convention center public infrastructure district described in Subsection (4)(f) shall be created by an eligible municipality that is a capital city infrastructure district. (5) The Governor's Office of Economic Opportunity may only propose a convention center reinvestment zone: (a) within the boundary of the eligible municipality; (b) consisting of a total area: (i) not to exceed 50 acres; or (ii) if greater than 50 acres, approved by the relevant eligible municipality; (c) consisting only of contiguous parcels; and (d) in an area that includes any portion of an existing convention center and any city block that is bordered by an existing convention center. (6) The Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone in a capital city on or before April 15, 2025. (7) A convention center reinvestment zone in a capital city does not count toward the maximum of eight housing and transit reinvestment zones in a given county as provided in Subsection 63N-23-201(7)(a). Section 46. Section 63N-23-402 is enacted to read: 63N-23-402 Effective 05/06/26. Process for proposing a convention center reinvestment zone in a capital city. (1) To create a convention center reinvestment zone in a capital city under this part, the Governor's Office of Economic Opportunity shall, after consulting with and giving notice to the related eligible municipality and county, provide a proposal for a convention center reinvestment zone in a capital city to the housing and transit reinvestment zone committee. (2) (a) The Governor's Office of Economic Opportunity shall ensure that a proposal for the creation of a convention center reinvestment zone in a capital city includes the following information and data that: (i) defines the boundary of the proposed convention center reinvestment zone in a capital city; (ii) describes generally the proposed development plan; (iii) identifies a base year and collection period to calculate the property tax increment within the convention center reinvestment zone in a capital city; (iv) specifies a sales and use tax base year to calculate the sales and use tax increment within the convention center reinvestment zone in a capital city in accordance with Section 63N-23-406; (v) provides estimated project and investment objectives for the convention center reinvestment zone in a capital city; and (vi) outlines generally the impacts on transportation in and around the proposed convention center reinvestment zone in a capital city. (b) The proposal described in Subsection (2)(a) shall also provide estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area. (c) The proposal described in Subsection (2)(b) shall limit the use of funds to: (i) a convention center; (ii) a publicly owned entertainment venue; (iii) parking; and (iv) infrastructure related to the project. (3) A proposal by the Governor's Office of Economic Opportunity for a convention center reinvestment zone in a capital city shall demonstrate how the information and data provided in the proposal described in Subsection (2) furthers the objectives described in Section 63N-23-401 and is in the public interest. (4) After submitting the proposal as described in Subsection (2), the Governor's Office of Economic Opportunity shall provide notice of the proposal to all affected taxing entities, including the State Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the convention center reinvestment zone is located. (5) After receiving notice from the Governor's Office of Economic Opportunity of a proposed convention center reinvestment zone in a capital city as described in Subsection (4), the State Tax Commission shall, within 14 days: (a) evaluate the feasibility of administering the tax implications of the proposal; and (b) provide a letter to the Governor's Office of Economic Opportunity describing any challenges in the administration of the proposal, or indicating that the State Tax Commission can feasibly administer the proposal. Section 47. Section 63N-23-403 is enacted to read: 63N-23-403 Effective 05/06/26. Payment, use, and administration of revenue from a convention center reinvestment zone in a capital city. (1) In accordance with this part: (a) a public infrastructure district shall use the funds from a convention center reinvestment zone in a capital city within or for the benefit of a convention center reinvestment zone in a capital city; and (b) funds from a convention center reinvestment zone in a capital city may be used outside of the capital city convention center reinvestment zone if the use meets the objectives described in Section 63N-23-401 and is determined by the board of the public infrastructure district to be a direct benefit to the convention center reinvestment zone in a capital city. (2) (a) A county that collects property tax on property located within a convention center reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the relevant public infrastructure district created by the eligible municipality any property tax increment the public infrastructure district is authorized to receive up to the amounts approved by the housing and transit reinvestment zone committee. (b) Property tax increment paid to the public infrastructure district are convention center reinvestment zone funds and shall be administered by the public infrastructure district within which the convention center reinvestment zone is located. (c) Property tax increment distributed to a public infrastructure district in accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality. (d) A public infrastructure district shall use convention center reinvestment zone funds to achieve the purposes described in Section 63N-23-401. (3) Convention center reinvestment zone funds may be used to pay all of the costs of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest. (4) An eligible municipality that is a capital city shall create one or more public infrastructure districts within the convention center reinvestment zone under Title 17D, Chapter 4, Public Infrastructure District Act, and the convention center reinvestment zone funds may be used to pay all or any portion of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest. Section 48. Section 63N-23-404 is enacted to read: 63N-23-404 Effective 05/06/26. Applicability to an existing community reinvestment project. For a convention center reinvestment zone in a capital city created under this part that overlaps any portion of an existing community reinvestment project area created in accordance with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act: (1) if the community reinvestment project area captures less than 100% of the property tax increment from a taxing entity, or if a taxing entity is not participating in the community reinvestment project area, the convention center reinvestment zone in a capital city may capture the difference between: (a) 100%; and (b) the percentage of property tax increment captured in accordance with the community reinvestment project area for each taxing entity; and (2) if a community reinvestment project area plan expires before the convention center reinvestment zone, the convention center reinvestment zone may capture the property tax increment allocated to the community reinvestment project area for any remaining portion of the term of the convention center reinvestment zone with the base year relating back to the base year established by the community reinvestment project area. Section 49. Section 63N-23-405 is enacted to read: 63N-23-405 Effective 05/06/26. Property tax increment protections. (1) Upon petition by a participating taxing entity or on the initiative of the housing and transit reinvestment zone committee creating a housing and transit reinvestment zone or convention center reinvestment zone, a housing and transit reinvestment zone or convention center reinvestment zone may suspend or terminate the collection of property tax increment in a housing and transit reinvestment zone or convention center reinvestment zone if the housing and transit reinvestment zone committee determines, by clear and convincing evidence, presented in a public meeting of the housing and transit reinvestment zone committee, that: (a) a substantial portion of the property tax increment collected in the convention center reinvestment zone has not or will not be used for the purposes provided in Section 63N-23-403; and (b) (i) the convention center reinvestment zone and related public infrastructure district has no indebtedness secured by funds provided for in this chapter; or (ii) the convention center reinvestment zone and related public infrastructure district has no binding financial obligations secured by this chapter. (2) A convention center reinvestment zone may not collect property tax increment in excess of the property tax increment projections or limitations set forth in the convention center reinvestment zone proposal. (3) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-403, shall have standing in a court with proper jurisdiction to enforce provisions of the convention center reinvestment zone proposal, participation agreements, and other agreements for the use of the property tax increment collected. (4) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-403 that is collecting property tax increment shall follow the reporting requirements described in Section 17C-1-603 and the audit requirements described in Sections 17C-1-604 and 17C-1-605. (5) For each convention center reinvestment zone collecting tax increment within a county, the county auditor shall follow the reporting requirement found in Section 17C-1-606. Section 50. Section 63N-23-406 is enacted to read: 63N-23-406 Effective 05/06/26. Sales and use tax increment in a convention center reinvestment zone in a capital city. (1) A convention center reinvestment zone in a capital city proposal shall, in consultation with the State Tax Commission: (a) create a sales and use tax boundary as described in Subsection (2); and (b) establish a sales and use tax base year to calculate and transfer the sales and use tax increment within the convention center reinvestment zone in a capital city 90 days after the date of the notice described in Subsection (5). (2) (a) The Governor's Office of Economic Opportunity, in consultation with the State Tax Commission, shall establish a sales and use tax boundary that: (i) is based on state sales and use tax collection boundaries, which are determined using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route extension; (ii) follows as closely as reasonably practicable the boundary of the convention center reinvestment zone; and (iii) is one contiguous area that includes at least the entire boundary of the convention center reinvestment zone. (b) If a state sales and use tax boundary is intersected by the boundary of the convention center reinvestment zone, the convention center reinvestment zone may include the entire state sales and use tax boundary. (c) The Governor's Office of Economic Opportunity shall include the sales and use tax boundary in the convention center reinvestment zone proposal as described in Section 63N-23-401. (3) Beginning no sooner than January 1, 2026, and on the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone in a capital city is established, the State Tax Commission shall, at least annually, transfer an amount equal to 50% of the state sales and use tax increment and 100% of any local sales and use tax increment within an established sales and use tax boundary to the public infrastructure district created in accordance with Section 63N-23-403. (4) The Governor's Office of Economic Opportunity may only propose one sales and use tax increment period and one sales and use tax base year for a convention center reinvestment zone established under this part. (5) (a) The distribution of the sales and use tax increment shall begin: (i) on the first day of a calendar quarter; (ii) after a 90-day waiting period, beginning on the date the State Tax Commission receives notice from the Governor's Office of Economic Opportunity meeting the requirements of Subsection (5)(b); and (iii) no earlier than January 1, 2026, after the year set in the proposal of the approved convention center reinvestment zone. (b) The notice described in Subsection (5)(a) shall include: (i) a statement that the convention center reinvestment zone will be established under this part; (ii) the approval date and effective date of the convention center reinvestment zone; and (iii) the definitions of the sales and use tax boundary and sales and use tax base year. (6) The State Tax Commission may retain and deposit an administrative charge in accordance with Section 59-1-306 from sales and use tax revenues the State Tax Commission collects and administers under this section. Section 51. Section 63N-23-407 is enacted to read: 63N-23-407 Effective 05/06/26. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a convention center reinvestment zone in a capital city, the Governor's Office of Economic Opportunity may make corresponding adjustments to the boundary of the convention center reinvestment zone in a capital city. Section 52. Section 63N-23-501 is enacted to read: 5. Home Ownership Promotion Zone for Municipalities 63N-23-501 Effective 05/06/26. Definitions. As used in this part: (1) "Affordable housing" means housing offered for sale at 80% or less of the median county home price for housing of that type. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Base taxable value" means a property's taxable value as shown upon the assessment roll last equalized during the base year. (4) "Base year" means, for a proposed home ownership promotion zone area, a year beginning the first day of the calendar quarter determined by the last equalized tax roll before the adoption of the home ownership promotion zone. (5) "Home ownership promotion zone" means a home ownership promotion zone created in accordance with this part. (6) "Participant" means the same as that term is defined in Section 17C-1-102. (7) "Participation agreement" means the same as that term is defined in Section 17C-1-102. (8) "Project improvements" means the same as that term is defined in Section 11-36a-102. (9) "System improvements" means the same as that term is defined in Section 11-36a-102. (10) "Tax commission" means the State Tax Commission created in Section 59-1-201. (11) (a) "Tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a home ownership promotion zone, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Tax increment" does not include property revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); or (ii) a county additional property tax described in Subsection 59-2-1602(4). (c) "Taxing entity" means the same as that term is defined in Section 17C-1-102. Section 53. Section 63N-23-502, which is renumbered from Section 10-21-501 is renumbered and amended to read: [10-21-501] 63N-23-502 Effective 05/06/26. Municipal designation of a home ownership promotion zone. (1) Subject to the requirements of Sections [10-21-502] 63N-23-503 and [10-21-503] 63N-23-504, a municipality may create a home ownership promotion zone as described in this section. (2) A home ownership promotion zone created under this section: (a) is an area of 10 contiguous acres or less located entirely within the boundaries of the municipality, zoned for fewer than six housing units per acre before the creation of the home ownership promotion zone; (b) shall be re-zoned for at least six housing units per acre; and (c) may not be encumbered by any residential building permits as of the day on which the home ownership promotion zone is created. (3) (a) The municipality shall designate the home ownership promotion zone by resolution of the legislative body of the municipality, passed or adopted in a public meeting of the legislative body of the municipality, following: (i) the recommendation of the municipality planning commission; and (ii) the notification requirements described in Section [10-21-503] 63N-23-504. (b) The resolution described in Subsection (3)(a) shall describe how the home ownership promotion zone created in accordance with this section meets the objectives and requirements in Section [10-21-502] 63N-23-503. (c) The home ownership promotion zone is created on the effective date of the resolution described in Subsection (3)(a). (4) If a home ownership promotion zone is created as described in this section: (a) affected local taxing entities are required to participate according to the requirements of the home ownership promotion zone established by the municipality; and (b) each affected taxing entity is required to participate at the same rate. (5) A home ownership promotion zone may be modified by the same manner it is created as described in Subsection (3). (6) Within 30 days after the day on which the municipality creates the home ownership promotion zone as described in Subsection (3), the municipality shall: (a) record with the recorder of the county in which the home ownership promotion zone is located a document containing: (i) a description of the land within the home ownership promotion zone; and (ii) the date of creation of the home ownership promotion zone; (b) transmit a copy of the description of the land within the home ownership promotion zone and an accurate map or plat indicating the boundaries of the home ownership promotion zone to the Utah Geospatial Resource Center created under Section 63A-16-505; and (c) transmit a map and description of the land within the home ownership promotion zone to: (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any part of the home ownership promotion zone is located; (ii) the officer or officers performing the function of auditor or assessor for each taxing entity that does not use the county assessment roll or collect the taxing entity's taxes through the county; (iii) the legislative body or governing board of each taxing entity impacted by the home ownership promotion zone; (iv) the tax commission; and (v) the State Board of Education. (7) A municipality may receive tax increment and use home ownership promotion zone funds as described in Section [10-21-504] 63N-23-505. Section 54. Section 63N-23-503, which is renumbered from Section 10-21-502 is renumbered and amended to read: [10-21-502] 63N-23-503 Effective 05/06/26. Applicability, requirements, and limitations. (1) A home ownership promotion zone shall promote the following objectives: (a) increasing availability of housing, including affordable housing; (b) promotion of home ownership; (c) overcoming development impediments and market conditions that render an affordable housing development cost prohibitive absent the incentives resulting from a home ownership promotion zone; and (d) conservation of water resources through efficient land use. (2) In order to accomplish the objectives described in Subsection (1), a municipality shall ensure that: (a) land inside the proposed home ownership promotion zone is zoned as residential, with at least six planned housing units per acre; (b) at least 60% of the proposed housing units within the home ownership promotion zone are affordable housing units; and (c) all of the proposed housing units within the home ownership promotion zone are deed restricted to require owner occupation for at least five years. (3) A municipality may restrict short term rentals in a home ownership promotion zone. (4) A municipality may not create a home ownership promotion zone if: (a) the proposed home ownership promotion zone would overlap with a school district and: (i) (A) the school district has more than one municipality within the school district's boundaries; and (B) the school district already has 100 acres designated as home ownership promotion zone within the school district's boundaries; or (ii) (A) the school district has one municipality within the school district's boundaries; and (B) the school district already has 50 acres designated as home ownership promotion zone within the school district's boundaries; or (b) the area in the proposed home ownership zone would overlap with: (i) a project area, as that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1, Agency Operations, until the project area is dissolved in accordance with Section 17C-1-702; or (ii) an existing housing and transit reinvestment zone. Section 55. Section 63N-23-504, which is renumbered from Section 10-21-503 is renumbered and amended to read: [10-21-503] 63N-23-504 Effective 05/06/26. Notification before creation of a home ownership promotion zone. (1) (a) As used in this section, "hearing" means a public meeting in which the legislative body of a municipality: (i) considers a resolution creating a home ownership promotion zone; and (ii) takes public comment on a proposed home ownership promotion zone. (b) A hearing under this section may be combined with any other public meeting of a legislative body of a municipality. (2) Before a municipality creates a home ownership promotion zone as described in Section [10-21-501] 63N-23-502, the municipality shall provide notice of a hearing as described in this section. (3) The notice required by Subsection (2) shall be given by: (a) publishing notice for the municipality, as a class A notice under Section 63G-30-102, for at least 14 days before the day on which the legislative body of the municipality intends to have a hearing; (b) at least 30 days before the hearing, mailing notice to: (i) each record owner of property located within the proposed home ownership promotion zone; (ii) the State Tax Commission; (iii) the Governor's Office of Economic Opportunity; [(iii)] (iv) the assessor and auditor of the county in which the proposed home ownership promotion zone is located; and [(iv)] (v) (A) if the proposed home ownership promotion zone is subject to a taxing entity committee, each member of the taxing entity committee and the State Board of Education; or (B) if the proposed home ownership promotion zone is not subject to a taxing entity committee, the legislative body or governing board of each taxing entity within the boundaries of the proposed home ownership promotion zone. (4) The mailing of the notice to record property owners required under Subsection (3)(b) shall be conclusively considered to have been properly completed if: (a) the agency mails the notice to the property owners as shown in the records, including an electronic database, of the county recorder's office and at the addresses shown in those records; and (b) the county recorder's office records used by the agency in identifying owners to whom the notice is mailed and [their] the property owners' addresses were obtained or accessed from the county recorder's office no earlier than 30 days before the mailing. (5) The municipality shall include in each notice required under this section: (a) (i) a boundary description of the proposed home ownership promotion zone; or (ii) (A) a mailing address or telephone number where a person may request that a copy of the boundary description of the proposed home ownership promotion zone be sent at no cost to the person by mail, email, or facsimile transmission; and (B) if the agency or community has an [Internet] internet website, an [Internet] internet address where a person may gain access to an electronic, printable copy of the boundary description of the proposed home ownership promotion zone; (b) a map of the boundaries of the proposed home ownership promotion zone; (c) an explanation of the purpose of the hearing; and (d) a statement of the date, time, and location of the hearing. (6) The municipality shall include in each notice under Subsection (3)(b): (a) a statement that property tax revenue resulting from an increase in valuation of property within the proposed home ownership promotion zone will be paid to the municipality for proposed home ownership promotion zone development rather than to the taxing entity to which the tax revenue would otherwise have been paid; and (b) an invitation to the recipient of the notice to submit to the municipality comments concerning the subject matter of the hearing before the date of the hearing. (7) A municipality may include in a notice under Subsection (2) any other information the municipality considers necessary or advisable, including the public purpose achieved by the proposed home ownership promotion zone. Section 56. Section 63N-23-505, which is renumbered from Section 10-21-504 is renumbered and amended to read: [10-21-504] 63N-23-505 Effective 05/06/26. Payment, use, and administration of revenue from a home ownership promotion zone. (1) (a) A municipality may receive tax increment and use home ownership promotion zone funds in accordance with this section. (b) The maximum amount of time that a municipality may receive and use tax increment in accordance with a home ownership promotion zone is 15 consecutive years. (2) A county that collects property tax on property located within a home ownership promotion zone shall, in accordance with Section 59-2-1365, distribute 60% of the tax increment collected from property within the home ownership promotion zone to the municipality over the home ownership promotion zone to be used as described in this section. (3) (a) Tax increment distributed to a municipality in accordance with Subsection (2) is not revenue of the taxing entity or municipality, but home ownership promotion zone funds. (b) Home ownership promotion zone funds may be administered by an agency created by the municipality within which the home ownership promotion zone is located. (c) Before an agency may receive home ownership promotion zone funds from a municipality, the agency shall enter into an interlocal agreement with the municipality. (4) (a) A municipality or agency shall use home ownership promotion zone funds within, or for the direct benefit of, the home ownership promotion zone. (b) If any home ownership promotion zone funds will be used outside of the home ownership promotion zone, the legislative body of the municipality shall make a finding that the use of the home ownership promotion zone funds outside of the home ownership promotion zone will directly benefit the home ownership promotion zone. (5) A municipality or agency shall use home ownership promotion zone funds to achieve the purposes described in Section [10-21-502] 63N-23-503 by paying all or part of the costs of any of the following: (a) project improvement costs; (b) systems improvement costs; (c) water exaction costs; (d) street lighting costs; (e) environmental remediation costs; or (f) the costs of the municipality or agency to create and administer the home ownership promotion zone, which may not exceed 3% of the total home ownership promotion zone funds. (6) Home ownership promotion zone funds may be paid to a participant, if the municipality and participant enter into a participation agreement which requires the participant to utilize the home ownership promotion zone funds as allowed in this section. (7) Home ownership promotion zone funds may be used to pay all of the costs of bonds issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. (8) A municipality may: (a) create one or more public infrastructure districts within a home ownership promotion zone under Title 17D, Chapter 4, Public Infrastructure District Act; and (b) pledge and utilize the home ownership promotion zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. Section 57. Section 63N-23-601 is enacted to read: 6. Home Ownership Promotion Zone for Counties 63N-23-601 Effective 05/06/26. Definitions. As used in this part: (1) "Affordable housing" means housing offered for sale at 80% or less of the median county home price for housing of that type. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Base taxable value" means a property's taxable value as shown upon the assessment roll last equalized during the base year. (4) "Base year" means, for a proposed home ownership promotion zone area, a year beginning the first day of the calendar quarter determined by the last equalized tax roll before the adoption of the home ownership promotion zone. (5) "Home ownership promotion zone" means a home ownership promotion zone created in accordance with this part. (6) "Participant" means the same as that term is defined in Section 17C-1-102. (7) "Participation agreement" means the same as that term is defined in Section 17C-1-102. (8) "Project improvements" means the same as that term is defined in Section 11-36a-102. (9) "System improvements" means the same as that term is defined in Section 11-36a-102. (10) "Tax commission" means the State Tax Commission created in Section 59-1-201. (11) (a) "Tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a home ownership promotion zone, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Tax increment" does not include property revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); or (ii) a county additional property tax described in Subsection 59-2-1602(4). (12) "Taxing entity" means the same as that term is defined in Section 17C-1-102. Section 58. Section 63N-23-602, which is renumbered from Section 17-80-501 is renumbered and amended to read: [17-80-501] 63N-23-602 Effective 05/06/26. County designation of a home ownership promotion zone. (1) Subject to Sections [17-80-502] 63N-23-603 and [17-80-503] 63N-23-604, a county may create a home ownership promotion zone as described in this section. (2) A home ownership promotion zone created under this section: (a) is an area of 10 contiguous unincorporated acres or less located entirely within the boundaries of the county, zoned for fewer than six housing units per acre before the creation of the home ownership promotion zone; (b) shall be re-zoned for at least six housing units per acre; and (c) may not be encumbered by any residential building permits as of the day on which the home ownership promotion zone is created. (3) (a) The county shall designate the home ownership promotion zone by resolution of the legislative body of the county following: (i) the recommendation of the county planning commission; and (ii) the notification requirements described in Section [17-80-503] 63N-23-604. (b) The resolution described in Subsection (3)(a) shall describe how the home ownership promotion zone created in accordance with this section meets the objectives and requirements of Section [17-80-502] 63N-23-603. (c) The home ownership promotion zone is created on the effective date of the resolution described in Subsection (3)(a). (4) If a home ownership promotion zone is created as described in this section: (a) affected local taxing entities are required to participate according to the requirements of the home ownership promotion zone established by the county; and (b) each affected taxing entity is required to participate at the same rate. (5) A home ownership promotion zone may be modified by the same manner it is created as described in Subsection (3). (6) Within 30 days after the day on which the county creates the home ownership promotion zone as described in Subsection (3), the county shall: (a) record with the recorder a document containing: (i) a description of the land within the home ownership promotion zone; and (ii) the date of creation of the home ownership promotion zone; (b) transmit a copy of the description of the land within the home ownership promotion zone and an accurate map or plat indicating the boundaries of the home ownership promotion zone to the Utah Geospatial Resource Center created under Section 63A-16-505; and (c) transmit a map and description of the land within the home ownership promotion zone to: (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any part of the home ownership promotion zone is located; (ii) the officer or officers performing the function of auditor or assessor for each taxing entity that does not use the county assessment roll or collect the taxing entity's taxes through the county; (iii) the legislative body or governing board of each taxing entity impacted by the home ownership promotion zone; (iv) the tax commission; and (v) the State Board of Education. (7) A county may receive tax increment and use home ownership promotion zone funds as described in Section [17-80-504] 63N-23-605. Section 59. Section 63N-23-603, which is renumbered from Section 17-80-502 is renumbered and amended to read: [17-80-502] 63N-23-603 Effective 05/06/26. Applicability, requirements, and limitations. (1) A home ownership promotion zone shall promote the following objectives: (a) increasing availability of housing, including affordable housing; (b) promotion of home ownership; (c) overcoming development impediments and market conditions that render an affordable housing development cost prohibitive absent the incentives resulting from a home ownership promotion zone; and (d) conservation of water resources through efficient land use. (2) In order to accomplish the objectives described in Subsection (1), a county shall ensure that: (a) land inside the proposed home ownership promotion zone is zoned as residential, with at least six planned housing units per acre; (b) at least 60% of the proposed housing units within the home ownership promotion zone are affordable housing units; and (c) all of the proposed housing units within the home ownership promotion zone are deed restricted to require owner occupation for at least five years. (3) A county may restrict short term rentals in a home ownership promotion zone. (4) A county may not create a home ownership promotion zone if: (a) the proposed home ownership promotion zone would overlap with a school district and: (i) (A) the school district has more than one municipality within the school district's boundaries; and (B) the school district already has 100 acres designated as home ownership promotion zone within the school district's boundaries; or (ii) (A) the school district has one municipality within the school district's boundaries; and (B) the school district already has 50 acres designated as home ownership promotion zone within the school district's boundaries; or (b) the area in the proposed home ownership promotion zone would overlap with: (i) a project area, as that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1, Agency Operations, until the project area is dissolved in accordance with Section 17C-1-702; or (ii) an existing housing and transit reinvestment zone. Section 60. Section 63N-23-604, which is renumbered from Section 17-80-503 is renumbered and amended to read: [17-80-503] 63N-23-604 Effective 05/06/26. Notification before creation of a home ownership promotion zone. (1) (a) As used in this section, "hearing" means a public meeting in which the legislative body of a county: (i) considers a resolution creating a home ownership promotion zone; and (ii) takes public comment on a proposed home ownership promotion zone. (b) A hearing under this section may be combined with any other public meeting of a legislative body of a county. (2) Before a county creates a home ownership promotion zone as described in Section [17-80-501] 63N-23-602, the county shall provide notice of a hearing as described in this section. (3) The notice required by Subsection (2) shall be given by: (a) publishing notice for the county, as a class A notice under Section 63G-30-102, for at least 14 days before the day on which the legislative body of the county intends to have a hearing; (b) at least 30 days before the hearing, mailing notice to: (i) each record owner of property located within the proposed home ownership promotion zone; (ii) the State Tax Commission; (iii) the Governor's Office of Economic Opportunity; and [(iii)] (iv) (A) if the proposed home ownership promotion zone is subject to a taxing entity committee, each member of the taxing entity committee and the State Board of Education; or (B) if the proposed home ownership promotion zone is not subject to a taxing entity committee, the legislative body or governing board of each taxing entity within the boundaries of the proposed home ownership promotion zone. (4) The mailing of the notice to record property owners required under Subsection (3)(b) shall be conclusively considered to have been properly completed if: (a) the county mails the notice to the property owners as shown in the records, including an electronic database, of the county recorder's office and at the addresses shown in those records; and (b) the county recorder's office records used by the agency in identifying owners to whom the notice is mailed and their addresses were obtained or accessed from the county recorder's office no earlier than 30 days before the mailing. (5) The county shall include in each notice required under this section: (a) (i) a boundary description of the proposed home ownership promotion zone; or (ii) (A) a mailing address or telephone number where a person may request that a copy of the boundary description of the proposed home ownership promotion zone be sent at no cost to the person by mail, email, or facsimile transmission; and (B) if the agency or community has an Internet website, an Internet address where a person may gain access to an electronic, printable copy of the boundary description of the proposed home ownership promotion zone; (b) a map of the boundaries of the proposed home ownership promotion zone; (c) an explanation of the purpose of the hearing; and (d) a statement of the date, time, and location of the hearing. (6) The county shall include in each notice under Subsection (3)(b): (a) a statement that property tax revenue resulting from an increase in valuation of property within the proposed home ownership promotion zone will be paid to the county for proposed home ownership promotion zone development rather than to the taxing entity to which the tax revenue would otherwise have been paid; and (b) an invitation to the recipient of the notice to submit to the county comments concerning the subject matter of the hearing before the date of the hearing. (7) A county may include in a notice under Subsection (2) any other information the county considers necessary or advisable, including the public purpose achieved by the proposed home ownership promotion zone. Section 61. Section 63N-23-605, which is renumbered from Section 17-80-504 is renumbered and amended to read: [17-80-504] 63N-23-605 Effective 05/06/26. Payment, use, and administration of revenue from a home ownership promotion zone. (1) (a) A county may receive tax increment and use home ownership promotion zone funds in accordance with this section. (b) The maximum amount of time that a county may receive and use tax increment collected from a home ownership promotion zone is 15 consecutive years. (2) A county that collects property tax on property located within a home ownership promotion zone shall, in accordance with Section 59-2-1365, retain 60% of the tax increment collected from property within the home ownership promotion zone to be used as described in this section. (3) (a) Tax increment retained by a county in accordance with Subsection (2) is not revenue of the taxing entity or county, but home ownership promotion zone funds. (b) Home ownership promotion zone funds may be administered by an agency created by the county within which the home ownership promotion zone is located. (c) Before an agency may receive home ownership promotion zone funds from a county, the agency shall enter into an interlocal agreement with the county. (4) (a) A county or agency shall use home ownership promotion zone funds within, or for the direct benefit of, the home ownership promotion zone. (b) If any home ownership promotion zone funds will be used outside of the home ownership promotion zone, the legislative body of the county shall make a finding that the use of the home ownership promotion zone funds outside of the home ownership promotion zone will directly benefit the home ownership promotion zone. (5) A county or agency shall use home ownership promotion zone funds to achieve the purposes described in Section [17-80-502] 63N-23-603 by paying all or part of the costs of any of the following: (a) project improvement costs; (b) systems improvement costs; (c) water exaction costs; (d) street lighting costs; (e) environmental remediation costs; or (f) the costs of the county to create and administer the home ownership promotion zone, which may not exceed 3% of the total home ownership promotion zone funds. (6) Home ownership promotion zone funds may be paid to a participant, if the county and participant enter into a participation agreement which requires the participant to utilize the home ownership promotion zone funds as allowed in this section. (7) Home ownership promotion zone funds may be used to pay all of the costs of bonds issued by the county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. (8) A county may: (a) create one or more public infrastructure districts within home ownership promotion zone under Title 17D, Chapter 4, Public Infrastructure District Act; and (b) pledge and utilize the home ownership promotion zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. Section 62. Section 63N-23-701, which is renumbered from Section 63N-3-1601 is renumbered and amended to read: 7. First Home Investment Zone [63N-3-1601] 63N-23-701 Effective 05/06/26. Definitions. [(1)] As used in this part: (1) "Affordable housing" means: (a) for homes that are not owner occupied, housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the county median gross income for households of the same size; or (b) (i) for homes that are owner occupied, housing that is priced at 80% of the county median home price; or (ii) for homes that are owner occupied, housing that is priced at 80% of the zip code median home price if: (A) the proposal described in Section [63N-3-1603] 63N-23-703 demonstrates that a deviation from the county median home price will achieve the objectives described in Subsection [63N-3-1602(1)] 63N-23-702(1); and (B) the [zip] ZIP code median home price is based upon county property tax assessment data. (2) "Agency" means the same as that term is defined in Section 17C-1-102. (3) "Base taxable value" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (4) "Base year" means, for each tax increment collection period triggered within a proposed first home investment zone area, the calendar year [prior to] before the calendar year the tax increment begins to be collected for those parcels triggered for that collection period. (5) (a) "Developable area" means the portion of land within a first home investment zone available for development and construction of business and residential uses. (b) "Developable area" does not include portions of land within a first home investment zone that are allocated to: (i) parks; (ii) recreation facilities; (iii) open spaces; (iv) trails; (v) parking; (vi) roadway facilities; or (vii) other public facilities. (6) "Dwelling unit" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (7) "Extraterritorial home" means a dwelling unit that is included as part of the first home investment zone proposal that: (a) is located within the municipality proposing the first home investment zone but outside the boundary of the first home investment zone; (b) is part of a development with a density of at least six units per acre; (c) is not located within an existing housing and transit reinvestment zone or an area that could be included in a housing and transit reinvestment zone; (d) has not been issued a building permit by the municipality as of the date of the approval of the first home investment zone; and (e) is required to be owner occupied for no less than 25 years. (8) "First home investment zone" means a first home investment zone created in accordance with this part. (9) "Home" means a dwelling unit. (10) "Housing and transit reinvestment zone" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (11) "Housing and transit reinvestment zone committee" means the housing and transit reinvestment zone committee described in Section [63N-3-605] 63N-23-102. (12) "Metropolitan planning organization" means the same as that term is defined in Section 72-1-208.5. (13) "Mixed use development" means the same as that term is defined in Section [63N-3-603] 63N-23-101. (14) "Moderate income housing plan" means the same as that term is defined in Section 11-41-102. (15) "Municipality" means the same as that term is defined in Section 10-1-104. (16) "Owner occupied" means private real property that is: (a) used for a single-family residential purpose; and (b) required to be occupied by the owner of the real property for no less than 25 years. (17) "Project area" means the same as that term is defined in Section 17C-1-102. (18) (a) "Project improvements" means site improvements and facilities that are: (i) planned and designed to provide service for development resulting from a development activity; (ii) necessary for the use and convenience of the occupants or users of development resulting from a development activity; and (iii) not identified or reimbursed as a system improvement. (b) "Project improvements" does not mean system improvements. (19) "State Tax Commission" means the State Tax Commission created in Section 59-1-201. (20) (a) "System improvements" means existing and future public facilities that are designed to provide services to service areas within the community at large. (b) "System improvements" does not mean project improvements. (21) (a) "Tax increment" means the difference between: (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a first home investment zone designated in the first home investment zone proposal as the area from which tax increment is to be collected, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. (b) "Tax increment" does not include property tax revenue from: (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2); or (ii) a county additional property tax described in Subsection 59-2-1602(4). (22) "Taxing entity" means the same as that term is defined in Section 17C-1-102. (23) "Unencumbered annual community reinvestment agency revenue" means tax increment revenue received by the agency for purposes identified in Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act, that: (a) have not been designated or restricted for future qualified uses as approved by the agency board related to a specific project area; and (b) do not have a date certain by which the tax increment revenues will be used. Section 63. Section 63N-23-702, which is renumbered from Section 63N-3-1602 is renumbered and amended to read: [63N-3-1602] 63N-23-702 Effective 05/06/26. Applicability, requirements, and limitations on a first home investment zone. (1) A first home investment zone created in accordance with this part shall promote the following objectives: (a) encouraging efficient development and opportunities for home ownership by providing a variety of housing options, including affordable housing and for sale, owner-occupied housing; (b) improving availability of housing options; (c) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives; (d) conserving water resources through efficient land use; (e) improving air quality by reducing fuel consumption and motor vehicle trips; (f) encouraging transformative mixed-use development; (g) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-20-404(2); (h) increasing access to employment and educational opportunities; (i) increasing access to child care; and (j) improving efficiencies in parking and transportation, including walkability of communities, street and path interconnectivity within the proposed development and connections to surrounding communities, and access to roadways, public transportation, and active transportation. (2) In order to accomplish the objectives described in Subsection (1), a municipality or county that initiates the process to create a first home investment zone as described in this part shall ensure that the proposal for a first home investment zone includes: (a) subject to Subsection (3), a minimum of 30 housing units per acre: (i) in at least 51% of the developable area within the first home investment zone; and (ii) of which 50% [must] shall be owner occupied; (b) a mixed use development; (c) a requirement that at least 25% of homes within the first home investment zone remain owner occupied for at least 25 years from the date of original purchase; (d) for homes inside the first home investment zone, a requirement that at least 12% of the owner occupied homes and 12% of the homes that are not owner occupied are affordable housing; (e) a requirement that at least 20% of the extraterritorial homes are affordable housing; and (f) except for extraterritorial homes, the number of homes that result from multiplying the number of housing units described in Subsection (2)(a) by the developable area described in Subsection (2)(a)(i) may be intermingled with other mixed uses within the first home investment zone. (3) (a) Subject to Subsection (3)(b), to satisfy the requirements described in Subsection (2)(a), a first home investment zone may include an extraterritorial home to count toward the required density and owner-occupancy of the first home investment zone by: (i) adding the total number of extraterritorial homes related to the first home investment zone to the total number of homes within the first home investment zone; and (ii) dividing the sum described in Subsection (3)(a)(i) by a number equal to 51% of the total number of developable acres within the first home investment zone. (b) Extraterritorial homes may account for no more than half of the total homes to calculate density within a first home investment zone. (4) (a) If a municipality proposes a first home investment zone, the proposal shall comply with the limitations described in this Subsection (4). (b) A first home investment zone may not be less than 10 acres and no more than 100 acres of developable area in size. (c) (i) Except as provided in Subsection (4)(c)(ii), a first home investment zone is required to be one contiguous area. (ii) While considering a first home investment zone proposal as described in Section [63N-3-1605] 63N-23-704, the housing and transit reinvestment zone committee may consider and approve a first home investment zone that is not one contiguous area if: (A) the municipality provides evidence in the proposal showing that the deviation from the contiguity requirement will enhance the ability of the first home investment zone to achieve the objectives described in Subsection (1); and (B) the housing and transit reinvestment zone committee determines that the deviation is reasonable and circumstances justify deviation from the contiguity requirement. (iii) The first home investment zone area contiguity is not affected by roads or other rights-of-way. (d) (i) A first home investment zone proposal may propose the capture of a maximum of 60% of each taxing entity's tax increment above the base year for a term of no more than 25 consecutive years within a 45-year period not to exceed the tax increment amount approved in the first home investment zone proposal. (ii) A first home investment zone proposal may not propose or include triggering more than three tax increment collection periods during the applicable 25-year period. (iii) Subject to Subsection (4)(d)(iv), a municipality shall ensure that the required affordable housing units are included proportionally in each phase of the first home investment zone development. (iv) A municipality may allow a first home investment zone to be phased and developed in a manner to provide more of the required affordable housing units in early phases of development. (e) If a municipality proposes a first home investment zone, commencement of the collection of tax increment, for all or a portion of the first home investment zone, is triggered by providing notice as described in Subsection (5). (f) A municipality may restrict homes within a first home investment zone and related extraterritorial homes from being used as a short-term rental. (g) A municipality shall ensure that affordable housing within a first home investment zone and related extraterritorial homes that are reserved as affordable housing are spread throughout the overall development. (h) A municipality shall ensure that at least 80% of extraterritorial homes included in a first home investment zone proposal are single-family detached homes. (i) A municipality shall include in a first home investment zone proposal: (i) an affordable housing plan, which may include deed restrictions, to ensure the affordable housing required in the proposal will continue to meet the definition of affordable housing at least throughout the entire term of the first home investment zone; and (ii) an owner occupancy plan, which may include deed restrictions, to ensure the owner occupancy requirements in the proposal will continue to meet the definition of owner occupancy at least throughout the entire term of the first home investment zone. (j) A municipality shall include in the first home investment zone proposal evidence to demonstrate how the first home investment zone proposal complies with the municipality's moderate income housing plan and general plan. (5) Notice of commencement of collection of tax increment shall be sent by mail or electronically to the following entities no later than January 1 of the year for which the tax increment collection is proposed to commence: (a) the State Tax Commission; (b) the State Board of Education; (c) the state auditor; (d) the auditor of the county in which the first home investment zone is located; (e) each taxing entity affected by the collection of tax increment from the first home investment zone; (f) the assessor of the county in which the first home investment zone is located; and (g) the Governor's Office of Economic Opportunity. (6) A first home investment zone proposal may not include a proposal to capture sales and use tax increment. (7) A municipality may not propose a first home investment zone in a county of the first class if the limitation described in Subsection [63N-3-603(7)(c)] 63N-23-201(7)(c) has been reached. (8) A municipality may not propose a first home investment zone in a location that is eligible for a housing and transit reinvestment zone. (9) A municipality may not propose a first home investment zone if the municipality's community reinvestment agency, based on the most recent annual comprehensive financial report, retains cash and cash equivalent assets of more than 20% of ongoing and unencumbered annual community reinvestment agency revenue. Section 64. Section 63N-23-703, which is renumbered from Section 63N-3-1603 is renumbered and amended to read: [63N-3-1603] 63N-23-703 Effective 05/06/26. Process for a proposal of a first home investment zone. (1) Subject to approval of the housing and transit reinvestment zone committee as described in Section [63N-3-1604] 63N-23-704, in order to create a first home investment zone, a municipality that has general land use authority over the first home investment zone area, shall: (a) prepare a proposal for the first home investment zone that: (i) demonstrates that the proposed first home investment zone will meet the objectives described in Subsection [63N-3-1602 (1)] 63N-23-702(1); (ii) explains how the municipality will achieve the requirements of Subsection [63N-3-1602 (2)] 63N-23-702(2); (iii) defines the specific infrastructure needs, if any, and proposed improvements; (iv) demonstrates how the first home investment zone will ensure: (A) sufficient pedestrian access to schools and other areas of community; and (B) inclusion of child care facilities and access; (v) defines the boundaries of the first home investment zone; (vi) includes maps of the proposed first home investment zone to illustrate: (A) proposed housing density within the first home investment zone; (B) extraterritorial homes relevant to the first home investment zone, including density of the development of extraterritorial homes; and (C) existing zoning and proposed zoning changes related to the first home investment zone; (vii) identifies any development impediments that prevent the development from being a market-rate investment and proposed strategies for addressing each one; (viii) describes the proposed development plan, including the requirements described in Subsections [63N-3-1602(2) and (4)] 63N-23-702(2) and (4); (ix) establishes the collection period or periods to calculate the tax increment; (x) describes projected maximum revenues generated and the amount of tax increment capture from each taxing entity and proposed expenditures of revenue derived from the first home investment zone; (xi) includes an analysis of other applicable or eligible incentives, grants, or sources of revenue that can be used to reduce the finance gap; (xii) proposes a finance schedule to align expected revenue with required financing costs and payments; (xiii) evaluates possible benefits to active transportation, public transportation availability and utilization, street connectivity, and air quality; and (xiv) provides a pro forma for the planned development that: (A) satisfies the requirements described in Subsections [63N-3-1602(2) and (4)] 63N-23-702(2) and (4); and (B) includes data showing the cost difference between what type of development could feasibly be developed absent the first home investment zone tax increment and the type of development that is proposed to be developed with the first home investment zone tax increment; (b) submit the proposal to the relevant school district to discuss the requirements of the proposal and whether the proposal provides the benefits and achieves the objectives described in this part; and (c) submit the first home investment zone proposal to the Governor's Office of Economic Opportunity. (2) As part of the proposal described in Subsection (1), a municipality shall: (a) study and evaluate possible impacts of a proposed first home investment zone on parking and efficient use of land within the municipality and first home investment zone; and (b) include in the first home investment zone proposal the findings of the study described in Subsection (2)(a) and proposed strategies to efficiently address parking impacts. (3) (a) After receiving the proposal as described in Subsection (1)(c), the Governor's Office of Economic Opportunity shall: (i) within 14 days after the date on which the Governor's Office of Economic Opportunity receives the proposal described in Subsection (1)(c), provide notice of the proposal to all affected taxing entities, including the State Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the first home investment zone is located; and (ii) at the expense of the proposing municipality as described in Subsection (5), contract with an independent entity to: (A) perform the gap analysis described in Subsection (3)(b); and (B) perform an analysis of the pro-forma described in Subsection (1)(a)(xiv)(B) and the feasibility of the proposed development absent the tax increment. (b) The gap and pro-forma analysis required in Subsection (3)(a)(ii) shall include: (i) a description of the planned development; (ii) a market analysis relative to other comparable project developments included in or adjacent to the municipality absent the proposed first home investment zone; (iii) an evaluation of the proposal and a determination of the adequacy and efficiency of the proposal; (iv) an evaluation of the proposed tax increment capture needed to cover the system improvements and project improvements associated with the first home investment zone proposal and enable the proposed development to occur, and for the benefit of affordable housing projects; and (v) based on the market analysis and other findings, an opinion relative to the appropriate amount of potential public financing reasonably determined to be necessary to achieve the objectives described in Subsection [63N-3-1602 (1)] 63N-23-702(1). (c) After receiving notice from the Governor's Office of Economic Opportunity of a proposed first home investment zone as described in Subsection (3)(a)(i), the municipality, in consultation with the county assessor and the State Tax Commission, shall: (i) evaluate the feasibility of administering the tax implications of the proposal; and (ii) provide a letter to the Governor's Office of Economic Opportunity describing any challenges in the administration of the proposal, or indicating that the county assessor can feasibly administer the proposal. (4) After receiving the results from the analysis described in Subsection (3)(b), the municipality proposing the first home investment zone may: (a) amend the first home investment zone proposal based on the findings of the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic Opportunity submit the amended first home investment zone proposal to the housing and transit reinvestment zone committee; or (b) request that the Governor's Office of Economic Opportunity submit the original first home investment zone proposal to the housing and transit reinvestment zone committee. (5) (a) The Governor's Office of Economic Opportunity may accept, as a dedicated credit, up to $20,000 from a municipality for the costs of the gap analysis described in Subsection (3)(b). (b) The Governor's Office of Economic Opportunity may expend funds received from a municipality as dedicated credits to pay for the costs associated with the gap analysis described in Subsection (3)(b). Section 65. Section 63N-23-704, which is renumbered from Section 63N-3-1604 is renumbered and amended to read: [63N-3-1604] 63N-23-704 Effective 05/06/26. Consideration of proposals by housing and transit reinvestment zone committee. (1) A first home investment zone proposed under this part is subject to approval by the housing and transit reinvestment zone committee. (2) After the Governor's Office of Economic Opportunity receives the results of the analysis described in Section [63N-3-1603] 63N-23-703, and after the Governor's Office of Economic Opportunity has received a request from the submitting municipality to submit the first home investment zone proposal to the housing and transit reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each of the relevant entities of the formation of the housing and transit reinvestment zone committee as described in Section [63N-3-605] 63N-23-102. (3) (a) The chair of the housing and transit reinvestment zone committee shall convene a public meeting to consider the proposed first home investment zone in the same manner as described in Section [63N-3-605] 63N-23-102. (b) A meeting of the housing and transit reinvestment zone committee is subject to Title 52, Chapter 4, Open and Public Meetings Act. (4) (a) The proposing municipality shall present the first home investment zone proposal to the housing and transit reinvestment zone committee in a public meeting. (b) The housing and transit reinvestment zone committee shall: (i) evaluate and verify whether the objectives and elements of a first home investment zone described in Subsections [63N-3-1502 (1), (2), and (4)] 63N-23-702(1), (2), and (4) have been met; and (ii) evaluate the proposed first home investment zone relative to the analysis described in Subsection [63N-3-1603 (2)] 63N-23-703(2). (5) (a) Subject to Subsection (5)(b), the housing and transit reinvestment zone committee may: (i) request changes to the first home investment zone proposal based on the analysis, characteristics, and criteria described in Section [63N-3-1603] 63N-23-703; or (ii) vote to approve or deny the proposal. (b) Before the housing and transit reinvestment zone committee may approve the first home investment zone proposal, the municipality proposing the first home investment zone shall ensure that the area of the proposed first home investment zone is zoned in such a manner to accommodate the requirements of a first home investment zone described in this section and the proposed development. (6) If a first home investment zone is approved by the committee: (a) the proposed first home investment zone is established according to the terms of the first home investment zone proposal; (b) affected local taxing entities are required to participate according to the terms of the first home investment zone proposal; and (c) each affected taxing entity is required to participate at the same rate. (7) A first home investment zone proposal may be amended by following the same procedure as approving a first home investment zone proposal. Section 66. Section 63N-23-705, which is renumbered from Section 63N-3-1605 is renumbered and amended to read: [63N-3-1605] 63N-23-705 Effective 05/06/26. Notice requirements. (1) In approving a first home investment zone proposal, the housing and transit reinvestment zone committee shall follow the hearing and notice requirements for proposing a first home investment zone as described in this section. (2) Within 30 days after the housing and transit reinvestment zone committee approves a proposed first home investment zone, the municipality shall: (a) record with the recorder of the county in which the first home investment zone is located a document containing: (i) a description of the land within the first home investment zone; (ii) a statement that the proposed first home investment zone has been approved; and (iii) the date of adoption; (b) transmit a copy of the description of the land within the first home investment zone and an accurate map or plat indicating the boundaries of the first home investment zone to the Utah Geospatial Resource Center created under Section 63A-16-505; and (c) transmit a copy of the approved first home investment zone proposal, map, and description of the land within the first home investment zone, to: (i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any part of the first home investment zone is located; (ii) the officer or officers performing the function of auditor or assessor for each taxing entity that does not use the county assessment roll or collect the taxing entity's taxes through the county; (iii) the legislative body or governing board of each taxing entity; (iv) the State Tax Commission; and (v) the State Board of Education. Section 67. Section 63N-23-706, which is renumbered from Section 63N-3-1606 is renumbered and amended to read: [63N-3-1606] 63N-23-706 Effective 05/06/26. Payment, use, and administration of tax increment from a first home investment zone. (1) A municipality may receive and use tax increment and first home investment zone funds in accordance with this part. (2) (a) A county that collects property tax on property located within a first home investment zone shall, in accordance with Section 59-2-1365, distribute to the municipality any tax increment the municipality is authorized to receive up to the maximum approved by the housing and transit reinvestment zone committee. (b) (i) Except as provided in Subsection (2)(b)(ii), tax increment paid to the municipality are first home investment zone funds and shall be administered by the municipality within which the first home investment zone is located. (ii) A municipality may contract with an agency, county, or a housing authority to administer tax increment and the first home investment zone, ensure compliance with first home investment zone requirements, and administer deed restrictions. (iii) Before an agency may receive first home investment zone funds from the municipality, the municipality and the agency shall enter into an interlocal agreement with terms that: (A) are consistent with the approval of the housing and transit reinvestment zone committee; and (B) meet the requirements of Section [63N-3-1502] 63N-23-702. (3) (a) A municipality and the agency shall use first home investment zone funds for the benefit of the first home investment zone and related extraterritorial housing. (b) If any first home investment zone funds will be used outside of the first home investment zone there [must] shall be a finding in the approved proposal for a first home investment zone that the use of the first home investment zone funds outside of the first home investment zone will directly benefit the first home investment zone or related extraterritorial homes. (4) In accordance with Subsection [63N-3-1502 (4)(e)] 63N-23-702(4)(e), a municipality shall use the first home investment zone funds to achieve the purposes described in Subsections [63N-3-1502 (1) and (2)] 63N-23-702(1) and (2), by paying all or part of the costs associated with the first home investment zone and extraterritorial homes, including: (a) project improvements; (b) system improvements; and (c) the costs of the municipality to create and administer the first home investment zone, which may not exceed 2% of the total first home investment zone funds, plus the costs to complete the gap analysis described in [Subsection 63N-3-1603 (2)] Section 63N-23-703. (5) First home investment zone funds may be paid to a participant, if the agency and participant enter into a participation agreement which requires the participant to utilize the first home investment zone funds as allowed in this section. (6) First home investment zone funds may be used to pay all of the costs of bonds issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. (7) A municipality may create one or more public infrastructure districts within the city under Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the first home investment zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. Section 68. Section 63N-23-707, which is renumbered from Section 63N-3-1607 is renumbered and amended to read: [63N-3-1607] 63N-23-707 Effective 05/06/26. Applicability to an existing first home investment zone or community reinvestment project. If a parcel within a first home investment zone is included as an area that is part of a project area, as that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for collection unless the project area funds collection period, as that term is defined in Section 17C-1-102, has expired. Section 69. Section 63N-23-708, which is renumbered from Section 63N-3-1608 is renumbered and amended to read: [63N-3-1608] 63N-23-708 Effective 05/06/26. Tax increment protections. (1) Upon petition by a participating taxing entity or on the initiative of the housing and transit reinvestment zone committee creating a first home investment zone, a first home investment zone may suspend or terminate the collection of tax increment in a first home investment zone if the housing and transit reinvestment zone committee determines, by clear and convincing evidence, presented in a public meeting of the housing and transit reinvestment zone committee, that: (a) a substantial portion of the tax increment collected in the first home investment zone has not or will not be used for the purposes provided in Section [63N-3-1606] 63N-23-706; and (b) (i) the first home investment zone has no indebtedness; or (ii) the first home investment zone has no binding financial obligations. (2) A first home investment zone may not collect tax increment in excess of the tax increment projections or limitations set forth in the first home investment zone proposal. (3) The agency administering the tax increment collected in a first home investment zone under Subsection [63N-3-1606 (2)] 63N-23-706(2), shall have standing in a court with proper jurisdiction to enforce provisions of the first home investment zone proposal, participation agreements, and other agreements for the use of the tax increment collected. (4) The agency administering tax increment from a first home investment zone under Subsection [63N-3-1606 (2)] 63N-23-706(2) shall follow the reporting requirements described in Section 17C-1-603 and the audit requirements described in Sections 17C-1-604 and 17C-1-605. (5) For each first home investment zone collecting tax increment within a county, the county auditor shall follow the reporting requirement found in Section 17C-1-606. Section 70. Section 63N-23-709, which is renumbered from Section 63N-3-1609 is renumbered and amended to read: [63N-3-1609] 63N-23-709 Effective 05/06/26. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a first home investment zone, the municipality administering the tax increment collected in the first home investment zone may make corresponding adjustments to the boundary of the first home investment zone. Section 71. Section 63N-23-801, which is renumbered from Section 63N-3-1401 is renumbered and amended to read: 8. Capital City Revitalization Zone [63N-3-1401] 63N-23-801 Effective 05/06/26. Definitions. As used in this part: (1) "Committee" means the Revitalization Zone Committee created in Section [63N-3-1407] 63N-23-807. (2) "Franchise agreement" means a legally binding and valid agreement under which: (a) a major professional sports league has awarded a franchise to a franchise recipient; and (b) the major professional sports league team that is the subject of the agreement is playing, or will play, home games in a qualified stadium that exists or will be constructed within the project area. (3) "Local government" means the municipality in which the project area is located. (4) "Major professional sports league" means the National Basketball Association or the National Hockey League. (5) "Project area" means the area created and designated to receive funds and revenue according to the terms and requirements of this part. (6) "Project participant" means a person that is approved to participate in the use of public funds in a project area according to the procedures and requirements of this part. (7) "Qualified stadium" means a sports facility that: (a) provides seating for spectators in a number that is reasonably consistent with the capacity of other stadiums used by other teams in the major professional sports league; (b) is located within the project area; and (c) (i) is in active use as the home venue of a major professional sports league team; or (ii) in the case of a stadium that is proposed to be constructed or remodeled, will be the home venue of a major professional sports league. (8) "Taxing entity" means the same as that term is defined in Section 17C-1-102. Section 72. Section 63N-23-802, which is renumbered from Section 63N-3-1402 is renumbered and amended to read: [63N-3-1402] 63N-23-802 Effective 05/06/26. Project area. (1) A local government may, according to the requirements and procedures of this part, create a project area for the use of revenue authorized under Section 59-12-402.5, which revenue shall be used only for the allowed purposes [under] described in Section [63N-3-1403] 63N-23-803. (2) A project area created under this part shall: (a) be located entirely within the boundaries of the local government; (b) be no greater than 100 acres in area; (c) be roughly centered around, and include the entire property footprint of a currently existing qualified stadium; (d) include the entire property footprint of any qualified stadium that is planned to be built; (e) be contiguous; and (f) have boundaries that are reasonably compact in relation to [their] the project area distance from the currently existing qualified stadium. Section 73. Section 63N-23-803, which is renumbered from Section 63N-3-1403 is renumbered and amended to read: [63N-3-1403] 63N-23-803 Effective 05/06/26. Allowable uses of funds. (1) A local government shall use any funds or revenue provided under Section 59-12-402.5 within and for the direct benefit of the project area, and subject to the requirements of this section. (2) In addition to the requirements of Subsection (1), the allowable uses for the funds and revenue collected as authorized under this part are: (a) costs for, including debt service or the costs of bonds issued by the local government or state: (i) paid to or for the benefit of a project participant for the construction or remodel of a qualified stadium within the project area in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay bonds and interest; and (ii) the construction, demolition, modification, or realignment of infrastructure or structures within the project area for the purpose of: (A) complementing a qualified stadium and [its] the qualified stadium's associated uses, including entertainment and recreational uses on land within the project area; and (B) improvement, demolition, modification, realignment, or restoration of areas within the project area for pedestrian and traffic flow, and for aesthetic, entertainment, recreational, and safety purposes; (b) infrastructure and roads, including state roads, within the project area; (c) traffic mitigation costs within the project area; (d) law enforcement or public security needs within the project area; (e) land acquisition costs; (f) commercial development, housing development, and parking infrastructure within the project area; and (g) costs of the local government to create a project area or participation agreement and to administer the funds, which cost may not exceed 1% of the tax revenue collected under Section 59-12-402.5. (3) (a) The amount of funds and revenue used for, or for the benefit of, the project participant shall be limited to a maximum dollar amount that shall be explicitly stated in the participation agreement. (b) A project participant may not receive the benefit of funds or revenue in an amount greater than the maximum dollar amount referred to in Subsection (3)(a). Section 74. Section 63N-23-804, which is renumbered from Section 63N-3-1404 is renumbered and amended to read: [63N-3-1404] 63N-23-804 Effective 05/06/26. Application for approval as a project participant in a project area. A person that seeks to have a local government create a project area under this part, and to be a project participant within that project area, shall provide a local government with a written application that certifies that the applicant: (1) is a party to a franchise agreement; (2) is or will be operating the team that is subject to the franchise agreement: (a) in an existing qualified stadium located within the project area to be created; or (b) in a new qualified stadium that will be located within the project area; (3) shows the existing and, as applicable, the proposed location and footprint of the qualified stadium; (4) lists any public funds that are currently being received by, or are authorized to be received by: (a) the applicant; or (b) any major professional sports league team that is owned or operated by the applicant; and (5) any proposals or information related to the application, including specific details about the franchise agreement or plans for a qualified stadium, a proposed boundary for the project area, proposals for land or stadium ownership arrangements or stadium revenue-sharing arrangements, or plans or requests for urban renewal or reconstruction. Section 75. Section 63N-23-805, which is renumbered from Section 63N-3-1405 is renumbered and amended to read: [63N-3-1405] 63N-23-805 Effective 05/06/26. Local government review -- Participation agreement requirements -- Proposed project area and proposed participation agreement -- Zoning -- Deadline. (1) Upon receipt of an application described in Section [63N-3-1404] 63N-23-804, a local government shall review the application and, if the application is complete, may negotiate with the applicant to develop: (a) a description of a proposed project area that meets the requirements of Section [63N-3-1402] 63N-23-802; and (b) a proposed participation agreement with the applicant, which agreement shall contain: (i) a map or description of the project area; (ii) a description of the type and extent of each type of tax or other revenue that would be available to the applicant within the project area if the applicant is approved as a project participant; (iii) the location and footprint of the qualified stadium, and if applicable, the location, footprint, and design of any proposed future or remodeled qualified stadium; (iv) if a qualified stadium is to be constructed, remodeled, or replaced, requirements and plans for the design, remodel, operation, and other terms related to the existing or new qualified stadium; (v) a master plan that: (A) provides an overview of challenges and issues to be addressed within the project area, including land use, infrastructure, economic issues, and public safety issues; (B) provides a 30-year plan for the physical development and the ongoing management of the project area, including maps, plats, charts, drawings, time lines, and descriptive, explanatory, and other related information that supports and demonstrates the plan; and (C) provides a specific plan for each of the following subject areas, each of which shall include, to the extent possible, detailed and specific information on projects and time lines for the named subject area, and where specific details cannot be provided, provides a list of specific goals, planned outcomes, and time lines for achieving those goals and outcomes: (I) a financial plan, including the planned sources, uses, distribution, and time lines for the use of funds and revenue; (II) a land use plan, including designs, ownership, demolition, construction, and time lines, including plans for modification of roads and infrastructure layout, removal or construction of buildings, and creation of new spaces, facilities, and landmarks; (III) a public asset plan, including plans for modifications, renovations, and use scenarios for existing buildings and public assets within the project area, including buildings owned by a city or county, features, and other public assets that will be affected by revitalization of the project area; (IV) a public safety plan, including plans for mitigating crime and ensuring safety and physical security within the project area; (V) a homelessness mitigation plan, including plans to provide resources for homeless individuals and to mitigate and manage camping and other related social issues within the project area; (VI) a transportation plan, including plans to enable access to and from, and public transportation, vehicle, and pedestrian traffic flow within the project area; and (VII) a parking plan, including estimates for parking needs and plans for accommodating those needs within the project area; (vi) a provision that the local government may not provide, and that a project participant may not receive, a direct subsidy; (vii) (A) the maximum dollar amount that may be used for, or for the benefit of, the project participant, as required under Subsection [63N-3-1403 (3)] 63N-23-803(3); and (B) a clear description of what fund and revenue uses will or will not be considered for the benefit of the project participant and therefore subject to the limit required under Subsection [63N-3-1403 (3)] 63N-23-803(3); (viii) terms, procedures, and remedies related to breach of a participation agreement, which shall contain: (A) specific descriptions of what constitutes breach of the participation agreement; (B) a requirement that access to funds ceases and that a project participant shall repay to the local government the full amount of revenue or funds received subject to Subsection [63N-3-1403 (3)] 63N-23-803(3) if the major professional sports league team leaves or ceases to use a qualified stadium as [its] the major professional sports league team's exclusive home stadium, subject to any additional terms agreed to in the participation agreement; (C) a description of all remedies available to the local government in association with a breach; and (D) designation of a guarantor, security interests, or other measures to ensure repayment of revenue and funds [in the event of] if a breach occurs; (ix) procedures and penalties that apply [in the event that] if the local government or project participant fails to meet the requirements, goals, or objectives [set] described under Subsection (1)(b)(v); (x) an acknowledgment that the parties to the agreement are subject to the requirements of this part; (xi) any additional obligations, terms, or conditions mutually agreed upon by the local government and the project participant; and (xii) may contain: (A) any terms and conditions that affect a project participant's ability to receive or use project area funds; (B) any terms or agreements regarding the qualified stadium and [its] the qualified stadium's associated property, including ownership, management, maintenance, operation, revenue sharing, or other agreements; (C) terms, procedures, or remedies related to breach of a participation agreement; and (D) any other relevant agreement between the applicant and the local government. (2) Before finalizing a proposed project area under Subsection (3), a local government shall ensure that any zoning modifications or requirements within the project area are complete. (3) If the applicant and the local government develop a proposed project area and a proposed participation agreement as described in Subsection (1), the local government shall, no later than September 1, 2024, provide notice of the proposed agreement and provide a copy of the application, the proposed project area, and the proposed participation agreement to: (a) the legislative body of the local government; and (b) the Revitalization Zone Committee. Section 76. Section 63N-23-806, which is renumbered from Section 63N-3-1406 is renumbered and amended to read: [63N-3-1406] 63N-23-806 Effective 05/06/26. Local government endorsement -- Revitalization Zone Committee approval -- Final approval by local government -- Imposition of tax. (1) (a) The legislative body of the local government shall, no later than [the date that is] 14 calendar days after the date [that] on which a notice of a proposed project area and proposed participation agreement is provided under Subsection [63N-3-1405(2)] 63N-23-805(3), in a public meeting by a majority vote: (i) endorse the application by: (A) endorsing the proposed project area, with or without amendment; and (B) endorsing the proposed participation agreement, with or without amendment; or (ii) reject the application. (b) If the legislative body of the local government endorses the application, the legislative body shall provide notice of the endorsement to the Revitalization Zone Committee, and provide the committee with any amended project area or amended participation agreement. (c) If the legislative body of the local government rejects the application: (i) the legislative body shall provide notice of the rejection to the mayor of the local government; and (ii) the applicant and the local government may develop another proposed project area and proposed participation agreement and present those documents according to the procedures and requirements of Section [63N-3-1405] 63N-23-805. (2) (a) If the legislative body of the local government endorses the application under Subsection (1) [:], [(a) The] the Revitalization Zone Committee shall, no later than 30 calendar days after the date [that] on which a notice of the local government's endorsement of an application is provided under Subsection (1)(b), in a public meeting by a majority vote: (i) approve or reject the endorsed project area; and (ii) approve or reject the endorsed project participation agreement. (b) If the committee approves the endorsed project area and the endorsed participation agreement: (i) the committee shall give notice of the approval to the mayor and the legislative body of the local government; and (ii) the legislative body of the local government may meet to consider final approval as provided under Subsection (3). (c) If the committee fails to approve the endorsed project area, the endorsed participation agreement, or both the project area and participation agreement: (i) the committee may adopt a statement or findings as to why the committee failed to provide [its] the committee's approval; (ii) the committee shall give notice of the failure to approve to the mayor and the legislative body of the local government; and (iii) the local government may: (A) develop another proposed project area and proposed participation agreement according to the procedures and requirements of Section [63N-3-1405] 63N-23-805; (B) in a public meeting of the legislative body of the local government, review, amend, or endorse another project area or participation agreement according to the procedures and requirements of Subsection (1); or (C) take no further action on the application. (3) If the Revitalization Zone Committee approves the endorsed project area and the endorsed [public] project participation agreement under Subsection (2), the legislative body of the local government may, by a majority vote in a public meeting: (a) give final approval to the application by: (i) approving the project area in the form approved by the committee; (ii) approving the proposed participation agreement in the form approved by the committee; and (iii) designating the applicant as a project participant; or (b) reject the application. (4) After giving final approval to the application, the local government shall: (a) impose taxes or revenue sources that may be used within the project area, including taxes or funds authorized under Section 59-12-402.5; and (b) provide reports to the committee as required under [Subsection 63N-3-1408(2)] Section 63N-23-808. Section 77. Section 63N-23-807, which is renumbered from Section 63N-3-1407 is renumbered and amended to read: [63N-3-1407] 63N-23-807 Effective 05/06/26. Revitalization Zone Committee -- Creation -- Membership -- Staff. (1) There is created the Revitalization Zone Committee to review the activities of, and advise a local government and project participants in a project area created under this part. (2) The committee consists of the following members: (a) two members of the Senate, appointed by the president of the Senate; (b) two members of the House of Representatives, appointed by the speaker of the House of Representatives; and (c) one individual appointed by the governor. (3) (a) The president of the Senate shall designate a member of the Senate appointed under Subsection (2) as cochair of the committee. (b) The speaker of the House of Representatives shall designate a member of the House of Representatives appointed under Subsection (2) as cochair of the committee. (4) (a) A majority of the members of the committee constitutes a quorum. (b) The action of a majority of a quorum constitutes action of the Revitalization Zone Committee. (5) The committee shall meet to review an endorsed application as provided under Section [63N-3-1406] 63N-23-806. (6) The committee may meet, upon the agreement of both cochairs: (a) to review a report provided under [Subsection 63N-3-1408 (2)] Section 63N-23-808; (b) at the discretion of the cochairs; and (c) at the request of a local government. (7) A legislative member of the committee shall be paid salary and expenses in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, [Legislative] Legislator Compensation. (8) A member who is not a legislator may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses as allowed in: (a) Section 63A-3-106; (b) Section 63A-3-107; and (c) rules made by the Division of Finance according to Sections 63A-3-106 and 63A-3-107. (9) The Office of Legislative Research and General Counsel shall: (a) provide staff support to the committee; and (b) consult with the Office of the Legislative Fiscal Analyst on fiscal issues reviewed by the committee. Section 78. Section 63N-23-808, which is renumbered from Section 63N-3-1408 is renumbered and amended to read: [63N-3-1408] 63N-23-808 Effective 05/06/26. Revitalization Zone Committee -- Duties -- Reporting requirements of local government -- Executive Appropriations Committee. (1) The Revitalization Zone Committee shall have the following duties: (a) to approve or reject an endorsed project area and an endorsed project participation agreement according to the procedures and requirements of Section [63N-3-1406] 63N-23-806; (b) to review reports that are issued by a local government in accordance with Subsection (2); (c) to review the financial activities of a local government and project participants in relation to a project area; and (d) to make recommendations to the Legislature regarding a project area and participation agreement, requirements or procedures related to a project area, taxes or public funds, or other matters relating to a project area or participation agreement. (2) A local government shall, after giving final approval to an application under Section [63N-3-1406] 63N-23-806, and each six months thereafter, or upon a request of the committee, provide a report to the committee that contains: (a) a summary of the projects and uses that are currently underway or planned in relation to the project area; (b) if not previously provided, or if modified, a copy of the project area and participation agreement; (c) a detailed accounting of: (i) all public funds collected within the project area since the last report; (ii) all public funds provided to each project participant since the last report; and (iii) all public funds committed or spent, and a description of [their] the public funds' use, since the last report; (d) the projected budget and time line for each project or use that is currently underway or planned in relation to the project area; and (e) an accounting or a detailed summary of the financial impact of the project area on the state and [its] the project area's residents. (3) At the discretion of the Executive Appropriations Committee of the Legislature, the local government and the Revitalization Zone Committee shall provide an in-person report to the Executive Appropriations Committee: (a) at least once per calendar year, that shall contain at least the following information: (i) a summary of the projects and uses that are currently underway or planned in relation to the project area; (ii) a detailed accounting of: (A) all public funds collected within the project area since the last report; (B) all public funds provided to each project participant since the last report; and (C) all public funds committed or spent, and a description of [their] the public funds' use, since the last report; (iii) the projected budget and time line for each project or use that is currently underway or planned in relation to the project area; (iv) an accounting or a detailed summary of the financial impact of the project area on the state and [its] the project area's residents; (v) any recommendations or requests from the local government; and (vi) any recommendations or requests form the Revitalization Zone Committee; (b) after the local government provides a proposed project area and proposed participation agreement under Section [63N-3-1405] 63N-23-805; and (c) after the local government gives final approval to an application under Section [63N-3-1406] 63N-23-806. (4) (a) As used in this Subsection (4), "replacement prosecutor" means a prosecutor pro tempore that the Utah Supreme Court is authorized to appoint under Utah [4-109] Constitution, Article VIII, Section 16. (b) The committee may, by majority vote in a public meeting, adopt a recommendation to the Utah Supreme Court that the Utah Supreme Court appoint a replacement prosecutor in a county of the first class to prosecute crimes within the project area in the place of the district attorney if the committee determines that the district attorney has failed or refused to adequately prosecute crimes within the project area. (c) If the Utah Supreme Court appoints a replacement prosecutor in response to a recommendation under this Subsection (4), the temporary prosecutor shall prosecute crimes within the project area in the place of the district attorney until the temporary prosecutor's appointment expires. Section 79. Section 63N-23-901, which is renumbered from Section 11-13-227 is renumbered and amended to read: 9. Transportation Reinvestment Zone [11-13-227] 63N-23-901 Effective 05/06/26. Transportation reinvestment zones. (1) Subject to the provisions of this part, any two or more public agencies may enter into an agreement [with one another]to create a transportation reinvestment zone as described in this section. (2) To create a transportation reinvestment zone, two or more public agencies, at least one of which has land use authority over the transportation reinvestment zone area, shall: (a) define the transportation infrastructure need and proposed improvement; (b) define the boundaries of the zone; (c) establish terms for sharing sales tax revenue among the members of the agreement; (d) establish a base year to calculate the increase of property tax revenue within the zone; (e) establish terms for sharing any increase in property tax revenue within the zone; and (f) before an agreement is approved as required in Section 11-13-202.5, hold a public hearing regarding the details of the proposed transportation reinvestment zone. (3) Any agreement to establish a transportation reinvestment zone is subject to the requirements of Sections 11-13-202, 11-13-202.5, 11-13-206, and 11-13-207. (4) (a) Each public agency that is party to an agreement under this section shall annually publish a report including a statement of the increased tax revenue and the expenditures made in accordance with the agreement. (b) Each public agency that is party to an agreement under this section shall transmit a copy of the report described in Subsection (4)(a) to the state auditor. (5) If any surplus revenue remains in a tax revenue account created as part of a transportation reinvestment zone agreement, the parties may use the surplus for other purposes as determined by agreement of the parties. (6) (a) An action taken under this section is not subject to: (i) Section 10-8-2; (ii) Title 10, Chapter 20, Municipal Land Use, Development, and Management Act; (iii) Title 17, Chapter 79, County Land Use, Development, and Management Act; or (iv) Section 17-78-103. (b) An ordinance, resolution, or agreement adopted under this title is not a land use regulation as defined in Sections 10-20-102 and 17-79-102. Section 80. Section 72-1-102 is amended to read: 72-1-102 Effective 05/06/26. Definitions. As used in this title: (1) "Circulator alley" means a publicly owned passageway: (a) with a right-of-way width of 20 feet or greater; (b) located within a master planned community; (c) established by the city having jurisdictional authority as part of the street network for traffic circulation that may also be used for: (i) garbage collection; (ii) access to residential garages; or (iii) access rear entrances to a commercial establishment; and (d) constructed with a bituminous or concrete pavement surface. (2) "Commission" means the Transportation Commission created under Section 72-1-301. (3) "Construction" means the construction, reconstruction, replacement, and improvement of the highways, including the acquisition of rights-of-way and material sites. (4) "Department" means the Department of Transportation created in Section 72-1-201. (5) "Executive director" means the executive director of the department appointed under Section 72-1-202. (6) "Farm tractor" [has the meaning set forth] means the same as that term is defined in Section 41-1a-102. (7) "Federal aid primary highway" means that portion of connected main highways located within this state officially designated by the department and approved by the United States Secretary of Transportation under Title 23, Highways, U.S.C. (8) "Fixed guideway" means the same as that term is defined in Section 59-12-102. (9) (a) "Fixed guideway capital development" means a project to construct or reconstruct a public transit fixed guideway facility that will add capacity to a fixed guideway public transit facility. (b) "Fixed guideway capital development" includes: (i) a project to strategically double track commuter rail lines; and (ii) a project to develop and construct public transit facilities and related infrastructure pertaining to the Point of the Mountain State Land Authority created in Section 11-59-201. (10) "Greenfield" means the same as that term is defined in Section 17C-1-102. (11) "Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel, culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the public, or made public in an action for the partition of real property, including the entire area within the right-of-way. (12) "Highway authority" means the department or the legislative, executive, or governing body of a county or municipality. (13) "Housing and transit reinvestment zone" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (14) "Implement of husbandry" [has the meaning set forth] means the same as that term is defined in Section 41-1a-102. (15) "Interstate system" means any highway officially designated by the department and included as part of the national interstate and defense highways, as provided in the Federal Aid Highway Act of 1956 and any supplemental acts or amendments. (16) "Large public transit district" means the same as that term is defined in Section 17B-2a-802. (17) "Limited-access facility" means a highway especially designated for through traffic, and over, from, or to which neither owners nor occupants of abutting lands nor other persons have any right or easement, or have only a limited right or easement of access, light, air, or view. (18) "Master planned community" means a land use development: (a) designated by the city as a master planned community; and (b) comprised of a single development agreement for a development larger than 500 acres. (19) "Motor vehicle" [has the same meaning set forth] means the same as that term is defined in Section 41-1a-102. (20) "Municipality" [has the same meaning set forth] means the same as that term is defined in Section 10-1-104. (21) "National highway systems highways" means that portion of connected main highways located within this state officially designated by the department and approved by the United States Secretary of Transportation under Title 23, Highways, U.S.C. (22) (a) "Port-of-entry" means a fixed or temporary facility constructed, operated, and maintained by the department where drivers, vehicles, and vehicle loads are checked or inspected for compliance with state and federal laws as specified in Section 72-9-501. (b) "Port-of-entry" includes inspection and checking stations and weigh stations. (23) "Port-of-entry agent" means a person employed at a port-of-entry to perform the duties specified in Section 72-9-501. (24) "Public transit" means the same as that term is defined in Section 17B-2a-802. (25) "Public transit facility" means a fixed guideway, transit vehicle, transit station, depot, passenger loading or unloading zone, parking lot, or other facility: (a) leased by or operated by or on behalf of a public transit district; and (b) related to the public transit services provided by the district, including: (i) railway or other right-of-way; (ii) railway line; and (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by a transit vehicle. (26) "Right-of-way" means real property or an interest in real property, usually in a strip, acquired for or devoted to state transportation purposes. (27) "Sealed" does not [preclude] prevent the acceptance of electronically sealed and submitted bids or proposals in addition to bids or proposals manually sealed and submitted. (28) "Semitrailer" [has the meaning set forth] means the same as that term is defined in Section 41-1a-102. (29) "SR" means state route and has the same meaning as state highway, as that term is defined in this section. (30) "State highway" means those highways designated as state highways in [Title 72, Chapter 4, Designation of State Highways Act] Chapter 4, Designation of State Highways Act. (31) "State transportation purposes" [has the meaning set forth] means the same as that term is defined in Section 72-5-102. (32) "State transportation systems" means all streets, alleys, roads, highways, pathways, and thoroughfares of any kind, including connected structures, airports, aerial corridor infrastructure, spaceports, public transit facilities, and all other modes and forms of conveyance used by the public. (33) "Trailer" [has the meaning set forth] means the same as that term is defined in Section 41-1a-102. (34) (a) "Transportation corridor" means the path or proposed path of a transportation facility that exists or that may exist in the future. (b) "Transportation corridor" may include: (i) the land occupied or that may be occupied by a transportation facility; and (ii) any other land that may be needed for expanding, operating, or controlling access to the transportation facility. (35) "Transportation facility" means: (a) a highway; or (b) a fixed guideway. (36) "Transportation reinvestment zone" means a transportation reinvestment zone created [pursuant to Section 11-13-227] in accordance with Section 63N-23-901. (37) "Truck tractor" [has the meaning set forth] means the same as that term is defined in Section 41-1a-102. (38) "UDOT" means the Utah Department of Transportation. (39) "Vehicle" [has the same meaning set forth] means the same as that term is defined in Section 41-1a-102. Section 81. Section 72-1-304 is amended to read: 72-1-304 Effective 05/06/26. Written project prioritization process for new transportation capacity projects -- Rulemaking. (1) (a) The Transportation Commission, in consultation with the department and the metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written prioritization process for the prioritization of: (i) new transportation capacity projects that are or will be part of the state highway system under Chapter 4, Part 1, State Highways; (ii) paved pedestrian or paved nonmotorized transportation projects described in Section 72-2-124; (iii) public transit projects that directly add capacity to the public transit systems within the state, not including facilities ancillary to the public transit system; and (iv) pedestrian or nonmotorized transportation projects that provide connection to a public transit system. (b) (i) A local government or public transit district may nominate a project for prioritization in accordance with the process established by the commission in rule. (ii) If a local government or public transit district nominates a project for prioritization by the commission, the local government or public transit district shall provide data and evidence to show that: (A) the project will advance the purposes and goals described in Section 72-1-211; (B) for a public transit project, the local government or public transit district has an ongoing funding source for operations and maintenance of the proposed development; and (C) the local government or public transit district will provide the percentage of the costs for the project as required by Subsection 72-2-124(4)(a)(viii) or 72-2-124(10)(e). (2) The following shall be included in the written prioritization process under Subsection (1): (a) a description of how the strategic initiatives of the department adopted under Section 72-1-211 are advanced by the written prioritization process; (b) a definition of the type of projects to which the written prioritization process applies; (c) specification of a weighted criteria system that is used to rank proposed projects and how it will be used to determine which projects will be prioritized; (d) specification of the data that is necessary to apply the weighted ranking criteria; and (e) any other provisions the commission considers appropriate, which may include consideration of: (i) regional and statewide economic development impacts, including improved local access to: (A) employment; (B) educational facilities; (C) recreation; (D) commerce; and (E) residential areas, including moderate income housing as demonstrated in the local government's or public transit district's general plan in accordance with Section 10-20-404 or 17-79-403; (ii) the extent to which local land use plans relevant to a project support and accomplish the strategic initiatives adopted under Section 72-1-211; and (iii) any matching funds provided by a political subdivision or public transit district in addition to the percentage of costs required by Subsections 72-2-124(4)(a)(viii) and 72-2-124(10)(e). (3) (a) When prioritizing a public transit project that increases capacity, the commission: (i) may give priority consideration to projects that are part of a transit-oriented development or transit-supportive development as defined in Section 17B-2a-802; and (ii) shall give priority consideration to projects that are within the boundaries of a housing and transit reinvestment zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act. (b) When prioritizing a transportation project that increases capacity, the commission may give priority consideration to projects that are: (i) part of a transportation reinvestment zone created under Section [11-13-227] 63N-23-901 if: (A) the state is a participant in the transportation reinvestment zone; or (B) the commission finds that the transportation reinvestment zone provides a benefit to the state transportation system; or (ii) within the boundaries of a housing and transit reinvestment zone created [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone. (c) If the department receives a notice of prioritization for a municipality as described in Subsection 10-21-202(5), or a notice of prioritization for a county as described in Subsection 17-80-202(5), the commission may give priority consideration to transportation projects that are within the boundaries of the municipality or the unincorporated areas of the county until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that the municipality or county no longer qualifies for prioritization under this Subsection (3)(c). (d) When prioritizing a transportation project described in Subsection (1)(a)(ii) or (iv), the commission may give priority consideration to projects that improve connectivity in accordance with Section 10-8-87. (4) In developing the written prioritization process, the commission: (a) shall seek and consider public comment by holding public meetings at locations throughout the state; and (b) may not consider local matching dollars as provided under Section 72-2-123 unless the state provides an equal opportunity to raise local matching dollars for state highway improvements within each county. (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Transportation Commission, in consultation with the department, shall make rules establishing the written prioritization process under Subsection (1). (6) The commission shall submit the proposed rules under this section to the Transportation Interim Committee for review before taking final action on the proposed rules or any proposed amendment to the rules described in Subsection (5). Section 82. Section 72-2-124 is amended to read: 72-2-124 Effective 05/06/26 Superseded 07/01/26. Transportation Investment Fund of 2005. (1) There is created a capital projects fund entitled the Transportation Investment Fund of 2005. (2) The fund consists of money generated from the following sources: (a) any voluntary contributions received for the maintenance, construction, reconstruction, or renovation of state and federal highways; (b) appropriations made to the fund by the Legislature; (c) registration fees designated under Section 41-1a-1201; (d) the sales and use tax revenues deposited into the fund in accordance with Section 59-12-103; (e) revenues transferred to the fund in accordance with Section 72-2-106; (f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and (g) revenue from bond proceeds described in Section 63B-34-101. (3) (a) The fund shall earn interest. (b) All interest earned on fund money shall be deposited into the fund. (4) (a) Except as provided in Subsection (4)(b), the executive director may only use fund money to pay: (i) the costs of maintenance, construction, reconstruction, or renovation to state and federal highways prioritized by the Transportation Commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway projects described in Subsections 63B-18-401(2), (3), and (4); (iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in Section 72-5-401; (iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401 minus the costs paid from the County of the First Class Highway Projects Fund in accordance with Subsection 72-2-121(4)(e); (v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the revenue bonds issued by Salt Lake County; (vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101 for projects prioritized in accordance with Section 72-2-125; (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described in Section 72-2-121; (viii) if a political subdivision provides a contribution equal to or greater than 40% of the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved nonmotorized transportation for projects that: (A) mitigate traffic congestion on the state highway system; (B) are part of an active transportation plan approved by the department; and (C) are prioritized by the commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (ix) $705,000,000 for the costs of right-of-way acquisition, construction, reconstruction, or renovation of or improvement to the following projects: (A) the connector road between Main Street and 1600 North in the city of Vineyard; (B) Geneva Road from University Parkway to 1800 South; (C) the SR-97 interchange at 5600 South on I-15; (D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to South Jordan Parkway; (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11; (F) improvements to 1600 North in Orem from 1200 West to State Street; (G) widening I-15 between mileposts 6 and 8; (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51; (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in Spanish Fork Canyon; (J) I-15 northbound between mileposts 43 and 56; (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43 and 45.1; (L) east Zion SR-9 improvements; (M) Toquerville Parkway; (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs; (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for construction of an interchange on Bangerter Highway at 13400 South; and (P) an environmental impact study for Kimball Junction in Summit County; (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project costs based upon a statement of cash flow that the local jurisdiction where the project is located provides to the department demonstrating the need for money for the project, for the following projects in the following amounts: (A) $5,000,000 for Payson Main Street repair and replacement; (B) $8,000,000 for a Bluffdale 14600 South railroad bypass; (C) $5,000,000 for improvements to 4700 South in Taylorsville; and (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40 between mile markers 7 and 10; (xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way acquisition, construction, reconstruction, or renovation to connect Fingerhut Road over the railroad and to U.S. Highway 6; (xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from revenue deposited into the fund in accordance with Section 59-12-103, for the following projects: (A) $3,000,000 for the department to perform an environmental study for the I-15 Salem and Benjamin project; and (B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand Dunes Road project; and (xiii) for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of right-of-way acquisition and construction for improvements on SR-89 in a county of the first class. (b) The executive director may use fund money to exchange for an equal or greater amount of federal transportation funds to be used as provided in Subsection (4)(a). (c) (i) Construction related to the project described in Subsection (4)(a)(ix)(D) may not commence until a right-of-way not owned by a federal agency that is required for the realignment and extension of U-111, as described in the department's 2023 environmental study related to the project, is dedicated to the department. (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the project as described in Subsection (4)(c)(i) on or before October 1, 2024, the department may proceed with the project, except that the project will be limited to two lanes on U-111 from Herriman Parkway to 11800 South. (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of ineligibility for a municipality as described in Subsection 10-21-202(8), the executive director may not program fund money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the municipality until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (5) no longer applies to the municipality. (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive director: (i) may program fund money in accordance with Subsection (4)(a) for a limited-access facility or interchange connecting limited-access facilities; (ii) may not program fund money for the construction, reconstruction, or renovation of an interchange on a limited-access facility; (iii) may program Transit Transportation Investment Fund money for a multi-community fixed guideway public transportation project; and (iv) may not program Transit Transportation Investment Fund money for the construction, reconstruction, or renovation of a station that is part of a fixed guideway public transportation project. (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive director before July 1, 2022, for projects prioritized by the commission under Section 72-1-304. (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of ineligibility for a county as described in Subsection 17-80-202(8), the executive director may not program fund money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the unincorporated area of the county until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (6) no longer applies to the county. (b) Within the boundaries of the unincorporated area of a county described in Subsection (6)(a), the executive director: (i) may program fund money in accordance with Subsection (4)(a) for a limited-access facility to a project prioritized by the commission under Section 72-1-304; (ii) may not program fund money for the construction, reconstruction, or renovation of an interchange on a limited-access facility; (iii) may program Transit Transportation Investment Fund money for a multi-community fixed guideway public transportation project; and (iv) may not program Transit Transportation Investment Fund money for the construction, reconstruction, or renovation of a station that is part of a fixed guideway public transportation project. (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive director before July 1, 2022, for projects prioritized by the commission under Section 72-1-304. (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in any fiscal year, the department and the commission shall appear before the Executive Appropriations Committee of the Legislature and present the amount of bond proceeds that the department needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year. (b) The Executive Appropriations Committee of the Legislature shall review and comment on the amount of bond proceeds needed to fund the projects. (8) The Division of Finance shall, from money deposited into the fund, transfer the amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or sinking fund. (9) The executive director may only use money in the fund for corridor preservation as described in Subsection (4)(a)(iii): (a) if the project has been prioritized by the commission, including the use of fund money for corridor preservation; or (b) for a project that has not been prioritized by the commission, if the commission: (i) approves the use of fund money for the corridor preservation; and (ii) finds that the use of fund money for corridor preservation will not result in any delay to a project that has been prioritized by the commission. (10) (a) There is created in the Transportation Investment Fund of 2005 the Transit Transportation Investment Fund. (b) The fund shall be funded by: (i) contributions deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; (iii) deposits of sales and use tax increment related to a housing and transit reinvestment zone as described in Section [63N-3-610] 63N-23-206; (iv) transfers of local option sales and use tax revenue as described in Subsection 59-12-2220(11)(b) or (c); (v) private contributions; and (vi) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund: (i) for public transit capital development of new capacity projects and fixed guideway capital development projects to be used as prioritized by the commission through the prioritization process adopted under Section 72-1-304; (ii) to the department for oversight of a fixed guideway capital development project for which the department has responsibility; or (iii) up to $500,000 per year, to be used for a public transit study. (e) (i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize money from the fund for a public transit capital development project or pedestrian or nonmotorized transportation project that provides connection to the public transit system if the public transit district or political subdivision provides funds of equal to or greater than 30% of the costs needed for the project. (ii) A public transit district or political subdivision may use money derived from a loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide all or part of the 30% requirement described in Subsection (10)(e)(i) if: (A) the loan is approved by the commission as required in Part 2, State Infrastructure Bank Fund; and (B) the proposed capital project has been prioritized by the commission [pursuant to] in accordance with Section 72-1-303. (f) Before July 1, 2022, the department and a large public transit district shall enter into an agreement for a large public transit district to pay the department $5,000,000 per year for 15 years to be used to facilitate the purchase of zero emissions or low emissions rail engines and trainsets for regional public transit rail systems. (g) For any revenue transferred into the fund in accordance with Subsection 59-12-2220(11)(b): (i) the commission may prioritize money from the fund for public transit projects, operations, or maintenance within the county of the first class; and (ii) Subsection (10)(e) does not apply. (h) For any revenue transferred into the fund in accordance with Subsection 59-12-2220(11)(c): (i) the commission may prioritize public transit projects, operations, or maintenance in the county from which the revenue was generated; and (ii) Subsection (10)(e) does not apply. (i) The requirement to provide funds equal to or greater than 30% of the costs needed for the project described in Subsection (10)(e) does not apply to a public transit capital development project or pedestrian or nonmotorized transportation project that the department proposes. (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may prioritize money from the fund for public transit innovation grants, as defined in Section 72-2-401, for public transit capital development projects requested by a political subdivision within a public transit district. (11) (a) There is created in the Transportation Investment Fund of 2005 the Cottonwood Canyons Transportation Investment Fund. (b) The fund shall be funded by: (i) money deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; (iii) private contributions; and (iv) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) The Legislature may appropriate money from the fund for public transit or transportation projects in the Cottonwood Canyons of Salt Lake County. (e) The department may use up to 2% of the revenue deposited into the account under Subsection 59-12-103(7)(b) to contract with local governments as necessary for public safety enforcement related to the Cottonwood Canyons of Salt Lake County. (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any sales and use tax growth over sales and use tax collections during the 2025 fiscal year to fund projects to provide ingress and egress for a public transit hub, including construction of the public transit hub, in the Big Cottonwood Canyon area. (12) (a) There is created in the Transportation Investment Fund of 2005 the Active Transportation Investment Fund. (b) The fund shall be funded by: (i) money deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; and (iii) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) The executive director may only use fund money to pay the costs needed for: (i) the planning, design, construction, maintenance, reconstruction, or renovation of paved pedestrian or paved nonmotorized trail projects that: (A) are prioritized by the commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (B) serve a regional purpose; and (C) are part of an active transportation plan approved by the department or the plan described in Subsection (12)(d)(ii); (ii) the development of a plan for a statewide network of paved pedestrian or paved nonmotorized trails that serve a regional purpose; and (iii) the administration of the fund, including staff and overhead costs. (13) (a) As used in this Subsection (13), "commuter rail" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (b) There is created in the Transit Transportation Investment Fund the Commuter Rail Subaccount. (c) The subaccount shall be funded by: (i) contributions deposited into the subaccount in accordance with Section 59-12-103; (ii) appropriations into the subaccount by the Legislature; (iii) private contributions; and (iv) donations or grants from public or private entities. (d) (i) The subaccount shall earn interest. (ii) All interest earned on money in the subaccount shall be deposited into the subaccount. (e) As prioritized by the commission through the prioritization process adopted under Section 72-1-304 or as directed by the Legislature, the department may only use money from the subaccount for projects that improve the state's commuter rail infrastructure, including the building or improvement of grade-separated crossings between commuter rail lines and public highways. (f) Appropriations made in accordance with this section are nonlapsing in accordance with Section 63J-1-602.1. Section 83. Section 72-2-124 is amended to read: 72-2-124 Effective 07/01/26. Transportation Investment Fund of 2005. (1) There is created a capital projects fund entitled the Transportation Investment Fund of 2005. (2) The fund consists of money generated from the following sources: (a) any voluntary contributions received for the maintenance, construction, reconstruction, or renovation of state and federal highways; (b) appropriations made to the fund by the Legislature; (c) registration fees designated under Section 41-1a-1201; (d) the sales and use tax revenues deposited into the fund in accordance with Section 59-12-103; (e) revenues transferred to the fund in accordance with Section 72-2-106; (f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and (g) revenue from bond proceeds described in Section 63B-34-201. (3) (a) The fund shall earn interest. (b) All interest earned on fund money shall be deposited into the fund. (4) (a) Except as provided in Subsection (4)(b), the executive director may only use fund money to pay: (i) the costs of maintenance, construction, reconstruction, or renovation to state and federal highways prioritized by the Transportation Commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway projects described in Subsections 63B-18-401(2), (3), and (4); (iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in Section 72-5-401; (iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401 minus the costs paid from the County of the First Class Highway Projects Fund in accordance with Subsection 72-2-121(4)(e); (v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the revenue bonds issued by Salt Lake County; (vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101 for projects prioritized in accordance with Section 72-2-125; (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described in Section 72-2-121; (viii) if a political subdivision provides a contribution equal to or greater than 40% of the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved nonmotorized transportation for projects that: (A) mitigate traffic congestion on the state highway system; (B) are part of an active transportation plan approved by the department; and (C) are prioritized by the commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (ix) $705,000,000 for the costs of right-of-way acquisition, construction, reconstruction, or renovation of or improvement to the following projects: (A) the connector road between Main Street and 1600 North in the city of Vineyard; (B) Geneva Road from University Parkway to 1800 South; (C) the SR-97 interchange at 5600 South on I-15; (D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to South Jordan Parkway; (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11; (F) improvements to 1600 North in Orem from 1200 West to State Street; (G) widening I-15 between mileposts 6 and 8; (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51; (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in Spanish Fork Canyon; (J) I-15 northbound between mileposts 43 and 56; (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43 and 45.1; (L) east Zion SR-9 improvements; (M) Toquerville Parkway; (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs; (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for construction of an interchange on Bangerter Highway at 13400 South; and (P) an environmental impact study for Kimball Junction in Summit County; (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project costs based upon a statement of cash flow that the local jurisdiction where the project is located provides to the department demonstrating the need for money for the project, for the following projects in the following amounts: (A) $5,000,000 for Payson Main Street repair and replacement; (B) $8,000,000 for a Bluffdale 14600 South railroad bypass; (C) $5,000,000 for improvements to 4700 South in Taylorsville; and (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40 between mile markers 7 and 10; (xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way acquisition, construction, reconstruction, or renovation to connect Fingerhut Road over the railroad and to U.S. Highway 6; (xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from revenue deposited into the fund in accordance with Section 59-12-103, for the following projects: (A) $3,000,000 for the department to perform an environmental study for the I-15 Salem and Benjamin project; and (B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand Dunes Road project; and (xiii) for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of right-of-way acquisition and construction for improvements on SR-89 in a county of the first class. (b) The executive director may use fund money to exchange for an equal or greater amount of federal transportation funds to be used as provided in Subsection (4)(a). (c) (i) Construction related to the project described in Subsection (4)(a)(ix)(D) may not commence until a right-of-way not owned by a federal agency that is required for the realignment and extension of U-111, as described in the department's 2023 environmental study related to the project, is dedicated to the department. (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the project as described in Subsection (4)(c)(i) on or before October 1, 2024, the department may proceed with the project, except that the project will be limited to two lanes on U-111 from Herriman Parkway to 11800 South. (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of ineligibility for a municipality as described in Subsection 10-21-202(8), the executive director may not program fund money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the municipality until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (5) no longer applies to the municipality. (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive director: (i) may program fund money in accordance with Subsection (4)(a) for a limited-access facility or interchange connecting limited-access facilities; (ii) may not program fund money for the construction, reconstruction, or renovation of an interchange on a limited-access facility; (iii) may program Transit Transportation Investment Fund money for a multi-community fixed guideway public transportation project; and (iv) may not program Transit Transportation Investment Fund money for the construction, reconstruction, or renovation of a station that is part of a fixed guideway public transportation project. (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive director before July 1, 2022, for projects prioritized by the commission under Section 72-1-304. (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of ineligibility for a county as described in Subsection 17-80-202(8), the executive director may not program fund money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the unincorporated area of the county until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (6) no longer applies to the county. (b) Within the boundaries of the unincorporated area of a county described in Subsection (6)(a), the executive director: (i) may program fund money in accordance with Subsection (4)(a) for a limited-access facility to a project prioritized by the commission under Section 72-1-304; (ii) may not program fund money for the construction, reconstruction, or renovation of an interchange on a limited-access facility; (iii) may program Transit Transportation Investment Fund money for a multi-community fixed guideway public transportation project; and (iv) may not program Transit Transportation Investment Fund money for the construction, reconstruction, or renovation of a station that is part of a fixed guideway public transportation project. (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive director before July 1, 2022, for projects prioritized by the commission under Section 72-1-304. (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in any fiscal year, the department and the commission shall appear before the Executive Appropriations Committee of the Legislature and present the amount of bond proceeds that the department needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year. (b) The Executive Appropriations Committee of the Legislature shall review and comment on the amount of bond proceeds needed to fund the projects. (8) The Division of Finance shall, from money deposited into the fund, transfer the amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or sinking fund. (9) The executive director may only use money in the fund for corridor preservation as described in Subsection (4)(a)(iii): (a) if the project has been prioritized by the commission, including the use of fund money for corridor preservation; or (b) for a project that has not been prioritized by the commission, if the commission: (i) approves the use of fund money for the corridor preservation; and (ii) finds that the use of fund money for corridor preservation will not result in any delay to a project that has been prioritized by the commission. (10) (a) There is created in the Transportation Investment Fund of 2005 the Transit Transportation Investment Fund. (b) The fund shall be funded by: (i) contributions deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; (iii) deposits of sales and use tax increment related to a housing and transit reinvestment zone as described in Section [63N-3-610] 63N-23-206; (iv) transfers of local option sales and use tax revenue as described in Subsection 59-12-2220(11)(b) or (c); (v) private contributions; and (vi) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund: (i) for public transit capital development of new capacity projects and fixed guideway capital development projects to be used as prioritized by the commission through the prioritization process adopted under Section 72-1-304; (ii) to the department for oversight of a fixed guideway capital development project for which the department has responsibility; or (iii) up to $500,000 per year, to be used for a public transit study. (e) (i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize money from the fund for a public transit capital development project or pedestrian or nonmotorized transportation project that provides connection to the public transit system if the public transit district or political subdivision provides funds of equal to or greater than 30% of the costs needed for the project. (ii) A public transit district or political subdivision may use money derived from a loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide all or part of the 30% requirement described in Subsection (10)(e)(i) if: (A) the loan is approved by the commission as required in Part 2, State Infrastructure Bank Fund; and (B) the proposed capital project has been prioritized by the commission [pursuant to] in accordance with Section 72-1-303. (f) Before July 1, 2022, the department and a large public transit district shall enter into an agreement for a large public transit district to pay the department $5,000,000 per year for 15 years to be used to facilitate the purchase of zero emissions or low emissions rail engines and trainsets for regional public transit rail systems. (g) For any revenue transferred into the fund in accordance with Subsection 59-12-2220(11)(b): (i) the commission may prioritize money from the fund for public transit projects, operations, or maintenance within the county of the first class; and (ii) Subsection (10)(e) does not apply. (h) For any revenue transferred into the fund in accordance with Subsection 59-12-2220(11)(c): (i) the commission may prioritize public transit projects, operations, or maintenance in the county from which the revenue was generated; and (ii) Subsection (10)(e) does not apply. (i) The requirement to provide funds equal to or greater than 30% of the costs needed for the project described in Subsection (10)(e) does not apply to a public transit capital development project or pedestrian or nonmotorized transportation project that the department proposes. (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may prioritize money from the fund for public transit innovation grants, as defined in Section 72-2-401, for public transit capital development projects requested by a political subdivision within a public transit district. (11) (a) There is created in the Transportation Investment Fund of 2005 the Cottonwood Canyons Transportation Investment Fund. (b) The fund shall be funded by: (i) money deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; (iii) private contributions; and (iv) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) The Legislature may appropriate money from the fund for public transit or transportation projects in the Cottonwood Canyons of Salt Lake County. (e) The department may use up to 2% of the revenue deposited into the account under Subsection 59-12-103(4)(f) to contract with local governments as necessary for public safety enforcement related to the Cottonwood Canyons of Salt Lake County. (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any sales and use tax growth over sales and use tax collections during the 2025 fiscal year to fund projects to provide ingress and egress for a public transit hub, including construction of the public transit hub, in the Big Cottonwood Canyon area. (12) (a) There is created in the Transportation Investment Fund of 2005 the Active Transportation Investment Fund. (b) The fund shall be funded by: (i) money deposited into the fund in accordance with Section 59-12-103; (ii) appropriations into the account by the Legislature; and (iii) donations or grants from public or private entities. (c) (i) The fund shall earn interest. (ii) All interest earned on fund money shall be deposited into the fund. (d) The executive director may only use fund money to pay the costs needed for: (i) the planning, design, construction, maintenance, reconstruction, or renovation of paved pedestrian or paved nonmotorized trail projects that: (A) are prioritized by the commission through the prioritization process for new transportation capacity projects adopted under Section 72-1-304; (B) serve a regional purpose; and (C) are part of an active transportation plan approved by the department or the plan described in Subsection (12)(d)(ii); (ii) the development of a plan for a statewide network of paved pedestrian or paved nonmotorized trails that serve a regional purpose; and (iii) the administration of the fund, including staff and overhead costs. (13) (a) As used in this Subsection (13), "commuter rail" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (b) There is created in the Transit Transportation Investment Fund the Commuter Rail Subaccount. (c) The subaccount shall be funded by: (i) contributions deposited into the subaccount in accordance with Section 59-12-103; (ii) appropriations into the subaccount by the Legislature; (iii) private contributions; and (iv) donations or grants from public or private entities. (d) (i) The subaccount shall earn interest. (ii) All interest earned on money in the subaccount shall be deposited into the subaccount. (e) As prioritized by the commission through the prioritization process adopted under Section 72-1-304 or as directed by the Legislature, the department may only use money from the subaccount for projects that improve the state's commuter rail infrastructure, including the building or improvement of grade-separated crossings between commuter rail lines and public highways. (f) Appropriations made in accordance with this section are nonlapsing in accordance with Section 63J-1-602.1. Section 84. Section 72-2-201 is amended to read: 72-2-201 Effective 05/06/26. Definitions. As used in this part: (1) "Fund" means the State Infrastructure Bank Fund created under Section 72-2-202. (2) "Infrastructure assistance" means any use of fund money, except an infrastructure loan, to provide financial assistance for transportation projects or publicly owned infrastructure projects, including: (a) capital reserves and other security for bond or debt instrument financing; or (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by a public entity to finance transportation projects. (3) "Infrastructure loan" means a loan of fund money to finance a transportation project or publicly owned infrastructure project. (4) "Public entity" means a state agency, county, municipality, special district, special service district, an intergovernmental entity organized under state law, or the military installation development authority created in Section 63H-1-201. (5) "Publicly owned infrastructure project" means a project to improve sewer or water infrastructure that is owned by a public entity. (6) "Transportation project": (a) means a project: (i) to improve a state or local highway; (ii) to improve a public transportation facility or nonmotorized transportation facility; (iii) to construct or improve parking facilities; (iv) that is subject to a transportation reinvestment zone agreement [pursuant to Section 11-13-227] in accordance with Section 63N-23-901 if the state is party to the agreement; or (v) that is part of a housing and transit reinvestment zone created [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (b) includes the costs of acquisition, construction, reconstruction, rehabilitation, equipping, and fixturing; and (c) may only include a project if the project is part of: (i) the statewide long range plan; (ii) a regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or (iii) a local government general plan or economic development initiative. Section 85. Section 72-2-301 is amended to read: 72-2-301 Effective 05/06/26. Definitions. As used in this part: (1) "Fund" means the County of the First Class Infrastructure Bank Fund created under Section 72-2-402. (2) "Infrastructure assistance" means any use of fund money, except an infrastructure loan, to provide financial assistance for transportation projects or publicly owned infrastructure projects, including: (a) capital reserves and other security for bond or debt instrument financing; or (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by a public entity to finance transportation projects. (3) "Infrastructure loan" means a loan of fund money to finance a transportation project or publicly owned infrastructure project. (4) "Public entity" means a county of the first class or any of the following located within a county of the first class: (a) a municipality; (b) a special district; (c) a special service district; or (d) an intergovernmental entity organized under state law. (5) "Publicly owned infrastructure project" means a project to improve sewer or water infrastructure that is owned by a public entity. (6) "Transportation project" means a project: (a) to improve a state or local highway; (b) to improve a public transportation facility or nonmotorized transportation facility; (c) to construct or improve parking facilities; (d) that is subject to a transportation reinvestment zone agreement [pursuant to Section 11-13-227] in accordance with Section 63N-23-901 if the state is party to the agreement; or (e) that is part of a housing and transit reinvestment zone created [pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act] in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone. (7) "Transportation project" includes the costs of acquisition, construction, reconstruction, rehabilitation, equipping, and fixturing. (8) "Transportation project" may only include a project if the project is part of: (a) the statewide long range plan; (b) a regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or (c) a local government general plan or economic development initiative. Section 86. Section 72-5-117 is amended to read: 72-5-117 Effective 05/06/26. Rulemaking for sale of real property -- Licensed or certified appraisers -- Exceptions. (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if the department buys, sells, or exchanges real property, the department shall make rules to ensure that the value of the real property is congruent with the proposed price and other terms of the purchase, sale, or exchange. (2) The rules: (a) shall establish procedures for determining the value of the real property; (b) may provide that an appraisal, as defined under Section 61-2g-102, demonstrates the real property's value; (c) may require that the appraisal be completed by a state-certified general appraiser, as defined under Section 61-2g-102; (d) may provide for the sale or exchange of real property, with or without charge, to a large public transit district if the executive director enters into an agreement with the large public transit district and determines that the real property: (i) is within the boundaries of a station area that has a station area plan certified by a metropolitan planning organization in accordance with Section [10-21-203] 63N-23-104; (ii) is part of a transit-oriented development or transit-supportive development as defined in Section 17B-2a-802; (iii) is adjacent to a completed fixed guideway capital development that was overseen by the department; or (iv) will only be used by the large public transit district in a manner that the executive director determines will provide a benefit to the state transportation system; and (e) may provide for a sale of surplus real property to a state agency or an independent entity, as defined in Section 63E-1-102, that administers public interests in housing for a pre-entitlement appraised value the payment of which may be deferred until after the development of owner-occupied housing. (3) Subsection (1) does not apply to the purchase, sale, or exchange of real property, or to an interest in real property: (a) that is under a contract or other written agreement before May 5, 2008; or (b) with a value of less than $100,000, as estimated by the state agency. Section 87. Section 72-6-112.5 is amended to read: 72-6-112.5 Effective 05/06/26. Definitions -- Nighttime highway construction noise -- Exemptions -- Permits. (1) As used in this section: (a) "Commuter rail" means the same as that term is defined in Section [63N-3-602] 63N-23-101. (b) (i) "Front row receptor" means a noise-sensitive residential receptor that is: (A) immediately adjacent to a transportation facility; or (B) within 800 feet of a transportation facility that is within a commercial or industrialized area. (ii) "Front row receptor" includes a residence that is contiguous to a property immediately adjacent to a transportation facility in a residential area. (c) "Nighttime construction" means highway or public transit facility construction occurring between the hours of 10:00 p.m. and 7:00 a.m. (d) "Nuisance" means the same as that term is defined in Section 78B-6-1101. (e) (i) "Permitted activities" means activities occurring between the hours of 7:00 p.m. and 7:00 a.m. that are related to and necessary for nighttime construction, whether occurring at the construction site or at a gravel pit or other site for production of raw materials, and includes: (A) loading and unloading of trucks; (B) asphalt mixing and hauling; and (C) concrete mixing and hauling. (ii) "Permitted activities" does not include: (A) blasting; or (B) crushing. (2) The following projects are exempt from any noise ordinance, regulation, or standard of a local jurisdictional authority: (a) a state highway construction project conducted on a road where the normal posted speed limit is 55 miles per hour or greater; or (b) a commuter rail construction project. (3) Except for a project described in Subsection (2), a state highway or a public transit facility construction project is exempt from any noise ordinance, regulation, or standard of a local jurisdictional authority if the department: (a) provides reasonable written notice at least 48 hours in advance of any required nighttime construction to each residential dwelling located within front row receptors of the activity; (b) determines a net community, including traveler community, benefit exists to conduct nighttime highway construction after considering the following: (i) public health; (ii) project completion time; (iii) air quality; (iv) traffic; (v) economics; (vi) safety; and (vii) local jurisdiction concerns; and (c) institutes best management noise reduction practices, as determined by the department, for front row receptors, in consultation with local government or the local jurisdictional authority for all nighttime construction, which may include: (i) equipment maintenance; (ii) noise shielding; (iii) scheduling the most noise intrusive activities during the day; and (iv) other noise mitigation methods. (4) (a) Subject to Subsection (2) or (3), a state highway project or public transit facility construction shall secure required noise permits from the local jurisdictional authority to conduct nighttime construction. (b) To the extent practical, the department shall coordinate with the local jurisdictional authority during the pre-construction phase of a project to address noise exemption conditions. (5) A local jurisdictional authority shall issue a nighttime construction permit limited to permitted activities if: (a) the applicant provides evidence that the permitted activities are directly related to and necessary for a nighttime construction project for which the department has obtained a noise permit from a local jurisdictional authority [pursuant to] in accordance with Subsection (4); and (b) the local jurisdictional authority determines that any nuisance that may be caused by the nighttime construction may be reasonably mitigated. (6) A local jurisdictional authority shall issue a nighttime construction noise permit without additional requirements to the department at the request of the department or the department's designated project agent if the requirements of Subsection (2) or (3) are met. (7) (a) A local jurisdictional authority may request adjustments to a nighttime construction permit to mitigate unreasonable noise disturbances caused by nighttime construction or permitted activities. (b) If adjustments are requested as described in Subsection (7)(a), the nighttime construction permit holder shall use best management noise reduction practices to mitigate unreasonable noise disturbances. (8) (a) For the exemption provided in Subsection (3) and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules establishing procedures: (i) for a local jurisdictional authority or local government to appeal the decision of the department to conduct nighttime construction; and (ii) for the local jurisdictional authority to request that the department enforce the terms of a noise permit. (b) After review and upon receiving a written notice from a local jurisdictional authority that the conditions for the noise exemption permit are not met, the department shall take corrective action to ensure nighttime construction activities meet requirements of the local permit. Section 88. Repealer. Title. Section 89. Effective Date. (1) Except as provided in Subsection (2), this bill takes effect on May 6, 2026. (2) The actions affecting the following sections take effect on July 1, 2026: (a) Section 59-12-103(Effective 07/01/26); and (b) Section 72-2-124(Effective 07/01/26). 3-4-26 8:19 PM
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