Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                           S.B. 190
Approved for Filing: R.H. Rees 6                         2nd Sub. (Salmon)
          6 02-28-24 1:50 PM 6
                      Representative Steve Eliason proposes the following substitute bill:
                      HIGHER EDUCATION DEVELOPMENT AREAS
                                      2024 GENERAL SESSION
                                           STATE OF UTAH
                                  Chief Sponsor: Chris H. Wilson
                                   House Sponsor: Steve Eliason
 6
 LONG TITLE
 General Description:
         This bill enacts provisions relating to the development of property owned by certain
 higher education institutions.
 Highlighted Provisions:
         This bill:
         < authorizes certain higher education institutions to designate a development area,
 consisting of property owned by the institution;
         < provides a process for an institution to adopt a resolution designating a development
 area;
         < requires an institution to establish a fund for revenue from the development area and
 provides for uses of money in the fund;
         < provides for property an eligible university leases to a private person to be exempt
 from a privilege tax;                                                                             2nd Sub. S.B. 190
         < requires approval from the Infrastructure and General Government Committee and
 the institution's board of trustees before the institution may adopt a development
 agreement;
         < provides limitations on a board member's participation in development actions and
 requires a board member to disclose a conflict before the board approves a
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       2nd Sub. (Salmon) S.B. 190                                                 02-28-24 1:50 PM
 development agreement; and
        < requires the board to provide an annual report to the Higher Education
 Appropriations Subcommittee for each development area.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 ENACTS:
        53B-20-107, Utah Code Annotated 1953
36
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 53B-20-107 is enacted to read:
        53B-20-107. Development of university property.
        (1) As used in this section:
        (a) "Board" means the board of trustees of an eligible university.
        (b) "Conflict" means a situation in which a board member or a family member of a
 board 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 resolution designating eligible university
 property as a development area.
        (d) "Development action" means:
        (i) board deliberations on whether to adopt a designation resolution;
        (ii) the board's adoption of a designation resolution;
        (iii) board deliberations on whether to approve a development agreement; or
        (iv) the board's approval of a development agreement.
        (e) "Development agreement" means an agreement governing the development of
 eligible university property within a development area.
        (f) "Development area" means a single, contiguous area:
        (i) of only eligible university property; and
        (ii) that the eligible university designates for development in a designation resolution,
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       02-28-24 1:50 PM                                               2nd Sub. (Salmon) S.B. 190
 as provided in this section.
        (g) "Development fund" means the fund described in and established under Subsection
 (4).
        (h) "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.
        (i) "Eligible university" means an institution of higher education listed in Subsection
 53B-1-102(1)(a).
        (j) "Eligible university property" means real property owned by an eligible university.
        (k) "Family member" means a parent, spouse, sibling, child, or grandchild.
        (l) "Leased property" means eligible university property that:
        (i) is within a development area; and
        (ii) an eligible university leases to a private person.
        (2) (a) An eligible university may, by resolution of the board, designate eligible
 university property as a development area.
        (b) Before adopting a designation resolution, a board shall:
        (i) provide notice of the public hearing required under Subsection (2)(b)(ii), 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
        (ii) hold a public hearing on the proposed adoption of a designation resolution.
        (c) A notice under Subsection (2)(b)(i) 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)(i), 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
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        2nd Sub. (Salmon) S.B. 190                                                  02-28-24 1:50 PM
 receive from the development area.
         (e) Before adopting a designation resolution, a board may modify the proposed
 designation resolution to:
         (i) address concerns raised in a public hearing held under Subsection (2)(b)(ii); or
         (ii) clarify or adjust provisions of the proposed designation resolution, as the board
 considers appropriate.
         (f) The board may not adopt a designation resolution if the board has previously
 adopted a designation resolution.
         (3) Within 30 days after the board's adoption of a designation resolution, the board or
 the board's 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 and treasurer 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 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) (a) Subject to Subsection (5)b), an eligible university may enter into a development
 agreement.
         (b) Before an eligible university may enter into a development agreement:
         (i) the board shall receive the approval of the Infrastructure and General Government
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        02-28-24 1:50 PM                                               2nd Sub. (Salmon) S.B. 190
 Committee of the Legislature for the development agreement; and
         (ii) the board shall approve the development agreement by resolution, adopted in a
 public meeting.
         (6) (a) A board member may not participate in a development action if the board
 member or a family member of the board 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 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 approves a development agreement, the board shall require any
 member with a conflict to disclose the conflict in writing to the board.
         (c) Nothing in this Subsection (6) may be construed to affect the application or effect
 of any other code provision applicable to a board member relating to ethics or conflicts of
 interest.
         (7) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege
 Tax.
         (8) (a) A board shall present a written report to the Higher Education Appropriations
 Subcommittee no later than September 30 of each year after the board's 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 2. Effective date.
         This bill takes effect on May 1, 2024.
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