Bill Summary – FastDemocracy

Enrolled Copy                                                                           S.B. 260
                        TRANSPORTATION FUNDING REQUIREMENTS
                                       2023 GENERAL SESSION
                                             STATE OF UTAH
                               Chief Sponsor: Kirk A. Cullimore
                                  House Sponsor: Val L. Peterson
 6
 LONG TITLE
 General Description:
         This bill amends provisions related to allowed uses for a certain local option sales and
 use tax for transportation.
 Highlighted Provisions:
         This bill:
         < defines terms;
         < amends provisions related to the allowed uses for a certain local option sales and
 use taxes;
         < allows a certain portion of a local option sales and use tax within a county of the
 first class to be used to fund or provide loans for public transit projects in a county
 of the first class;
         < amends the distribution for a certain local option sales and use tax;
         < specifies the allowed uses and conditions for a county, city, or town to expend the
 sales and use tax revenue based on allocations;
         < provides requirements for a county to meet if the county elects to change
 distribution allocations;
         < requires a city to comply with the moderate income housing plan requirements to
 receive a sales and use tax distribution;
         < eliminates the deadline for a county to impose the local option sales and use tax;
 and
         < makes technical changes.
 Money Appropriated in this Bill:
       S.B. 260                                                                   Enrolled Copy
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        10-9a-408, as last amended by Laws of Utah 2022, Chapter 406
        17-27a-408, as last amended by Laws of Utah 2022, Chapter 406
        59-12-2202, as last amended by Laws of Utah 2019, Chapter 479
        59-12-2219, as last amended by Laws of Utah 2019, Chapter 479
        59-12-2220, as last amended by Laws of Utah 2022, Chapter 259
        72-2-121, as last amended by Laws of Utah 2022, Chapter 259
        72-2-124, as last amended by Laws of Utah 2022, Chapters 69, 259 and 406
42
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-9a-408 is amended to read:
        10-9a-408. Moderate income housing report -- Contents -- Prioritization for
 funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
        (1) As used in this section:
        (a) "Division" means the Housing and Community Development Division within the
 Department of Workforce Services.
        (b) "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 10-9a-403(2)(c).
        (c) "Moderate income housing report" or "report" means the report described in
 Subsection (2)(a).
        (d) "Moderate income housing strategy" means a strategy described in Subsection
 10-9a-403(2)(b)(iii).
        (e) "Specified municipality" means:
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       Enrolled Copy                                                                              S.B. 260
         (i) a city of the first, second, third, or fourth class;
         (ii) 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; or
         (iii) a metro township with a population of 5,000 or more.
         (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
 body of a specified municipality shall annually submit a written moderate income housing
 report to the division.
         (b) The moderate income housing report submitted in 2022 shall include:
         (i) a description of each moderate income housing strategy selected by the specified
 municipality for implementation; and
         (ii) an implementation plan.
         (c) The moderate income housing report submitted in each calendar year after 2022
 shall include:
         (i) the information required under Subsection (2)(b);
         (ii) a description of each action, whether one-time or ongoing, taken by the specified
 municipality during the previous fiscal year to implement the moderate income housing
 strategies selected by the specified municipality for implementation;
         (iii) a description of each land use regulation or land use decision made by the
 specified municipality during the previous fiscal year to implement the moderate income
 housing strategies, including an explanation of how the land use regulation or land use decision
 supports the specified municipality's efforts to implement the moderate income housing
 strategies;
         (iv) a description of any barriers encountered by the specified municipality in the
 previous fiscal year in implementing the moderate income housing strategies;
         (v) information regarding the number of internal and external or detached accessory
 dwelling units located within the specified municipality for which the specified municipality:
         (A) issued a building permit to construct; or
         (B) issued a business license to rent;
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        S.B. 260                                                                         Enrolled Copy
           (vi) a description of how the market has responded to the selected moderate income
 housing strategies, including the number of entitled moderate income housing units or other
 relevant data; and
           (vii) any recommendations on how the state can support the specified municipality in
 implementing the moderate income housing strategies.
           (d) The moderate income housing report shall be in a form:
           (i) approved by the division; and
           (ii) made available by the division on or before July 1 of the year in which the report is
 required.
           (3) Within 90 days after the day on which the division receives a specified
 municipality's moderate income housing report, the division shall:
           (a) post the report on the division's website;
           (b) send a copy of the report to the Department of Transportation, the Governor's
 Office of Planning and Budget, the association of governments in which the specified
 municipality is located, and, if the specified municipality is located within the boundaries of a
 metropolitan planning organization, the appropriate metropolitan planning organization; and
           (c) subject to Subsection (4), review the report to determine compliance with
 Subsection (2).
           (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
 report:
           (i) includes the information required under Subsection (2)(b);
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) three or more moderate income housing strategies if the specified municipality
 does not have a fixed guideway public transit station; or
           (B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income housing
 strategies if the specified municipality has a fixed guideway public transit station; and
           (iii) is in a form approved by the division.
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        Enrolled Copy                                                                              S.B. 260
           (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
 report:
           (i) includes the information required under Subsection (2)(c);
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) three or more moderate income housing strategies if the specified municipality
 does not have a fixed guideway public transit station; or
           (B) four or more moderate income housing strategies if the specified municipality has a
 fixed guideway public transit station;
           (iii) is in a form approved by the division; and
           (iv) provides sufficient information for the division to:
           (A) assess the specified municipality's progress in implementing the moderate income
 housing strategies;
           (B) monitor compliance with the specified municipality's implementation plan;
           (C) identify a clear correlation between the specified municipality's land use
 regulations and land use decisions and the specified municipality's efforts to implement the
 moderate income housing strategies; and
           (D) identify how the market has responded to the specified municipality's selected
 moderate income housing strategies.
           (5) (a) A specified municipality qualifies for priority consideration under this
 Subsection (5) if the specified municipality's moderate income housing report:
           (i) complies with Subsection (2); and
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) five or more moderate income housing strategies if the specified municipality does
 not have a fixed guideway public transit station; or
           (B) six or more moderate income housing strategies if the specified municipality has a
 fixed guideway public transit station.
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        S.B. 260                                                                         Enrolled Copy
        (b) The following apply to a specified municipality described in Subsection (5)(a)
 during the fiscal year immediately following the fiscal year in which the report is required:
        (i) the Transportation Commission may give priority consideration to transportation
 projects located within the boundaries of the specified municipality in accordance with
 Subsection 72-1-304(3)(c); and
        (ii) the Governor's Office of Planning and Budget may give priority consideration for
 awarding financial grants to the specified municipality under the COVID-19 Local Assistance
 Matching Grant Program in accordance with Subsection 63J-4-802(6).
        (c) Upon determining that a specified municipality qualifies for priority consideration
 under this Subsection (5), the division shall send a notice of prioritization to the legislative
 body of the specified municipality, the Department of Transportation, and the Governor's
 Office of Planning and Budget.
        (d) The notice described in Subsection (5)(c) shall:
        (i) name the specified municipality that qualifies for priority consideration;
        (ii) describe the funds or projects for which the specified municipality qualifies to
 receive priority consideration;
        (iii) specify the fiscal year during which the specified municipality qualifies for priority
 consideration; and
        (iv) state the basis for the division's determination that the specified municipality
 qualifies for priority consideration.
        (6) (a) If the division, after reviewing a specified municipality's moderate income
 housing report, determines that the report does not comply with Subsection (2), the division
 shall send a notice of noncompliance to the legislative body of the specified municipality.
        (b) The notice described in Subsection (6)(a) shall:
        (i) describe each deficiency in the report and the actions needed to cure each
 deficiency;
        (ii) state that the specified municipality has an opportunity to cure the deficiencies
 within 90 days after the day on which the notice is sent; and
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        Enrolled Copy                                                                             S.B. 260
        (iii) state that failure to cure the deficiencies within 90 days after the day on which the
 notice is sent will result in ineligibility for funds under Subsection (7).
        (7) (a) A specified municipality is ineligible for funds under this Subsection (7) if the
 specified municipality:
        (i) fails to submit a moderate income housing report to the division; or
        (ii) fails to cure the deficiencies in the specified municipality's moderate income
 housing report within 90 days after the day on which the division sent to the specified
 municipality a notice of noncompliance under Subsection (6).
        (b) The following apply to a specified municipality described in Subsection (7)(a)
 during the fiscal year immediately following the fiscal year in which the report is required:
        (i) the executive director of the Department of Transportation may not program funds
 from the Transportation Investment Fund of 2005, including the Transit Transportation
 Investment Fund, to projects located within the boundaries of the specified municipality in
 accordance with Subsection 72-2-124(5); and
        (ii) the Governor's Office of Planning and Budget may not award financial grants to the
 specified municipality under the COVID-19 Local Assistance Matching Grant Program in
 accordance with Subsection 63J-4-802(7).
        (c) Upon determining that a specified municipality is ineligible for funds under this
 Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
 specified municipality, the Department of Transportation, the State Tax Commission, and the
 Governor's Office of Planning and Budget.
        (d) The notice described in Subsection (7)(c) shall:
        (i) name the specified municipality that is ineligible for funds;
        (ii) describe the funds for which the specified municipality is ineligible to receive;
        (iii) specify the fiscal year during which the specified municipality is ineligible for
 funds; and
        (iv) state the basis for the division's determination that the specified municipality is
 ineligible for funds.
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        S.B. 260                                                                      Enrolled Copy
        (8) In a civil action seeking enforcement or claiming a violation of this section or of
 Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded only
 injunctive or other equitable relief.
        Section 2. Section 17-27a-408 is amended to read:
        17-27a-408. Moderate income housing report -- Contents -- Prioritization for
 funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
        (1) As used in this section:
        (a) "Division" means the Housing and Community Development Division within the
 Department of Workforce Services.
        (b) "Implementation plan" means the implementation plan adopted as part of the
 moderate income housing element of a specified county's general plan as provided in
 Subsection 10-9a-403(2)(c).
        (c) "Moderate income housing report" or "report" means the report described in
 Subsection (2)(a).
        (d) "Moderate income housing strategy" means a strategy described in Subsection
 17-27a-403(2)(b)(ii).
        (e) "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.
        (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
 body of a specified county shall annually submit a written moderate income housing report to
 the division.
        (b) The moderate income housing report submitted in 2022 shall include:
        (i) a description of each moderate income housing strategy selected by the specified
 county for implementation; and
        (ii) an implementation plan.
        (c) The moderate income housing report submitted in each calendar year after 2022
 shall include:
        (i) the information required under Subsection (2)(b);
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       Enrolled Copy                                                                             S.B. 260
        (ii) a description of each action, whether one-time or ongoing, taken by the specified
 county during the previous fiscal year to implement the moderate income housing strategies
 selected by the specified county for implementation;
        (iii) a description of each land use regulation or land use decision made by the
 specified county during the previous fiscal year to implement the moderate income housing
 strategies, including an explanation of how the land use regulation or land use decision
 supports the specified county's efforts to implement the moderate income housing strategies;
        (iv) a description of any barriers encountered by the specified county in the previous
 fiscal year in implementing the moderate income housing strategies; and
        (v) information regarding the number of internal and external or detached accessory
 dwelling units located within the specified county for which the specified county:
        (A) issued a building permit to construct; or
        (B) issued a business license to rent;
        (vi) a description of how the market has responded to the selected moderate