Bill Summary – FastDemocracy

Enrolled Copy                                                                      H.B. 406
                LAND USE, DEVELOPMENT, AND MANAGEMENT ACT
                                        MODIFICATIONS
                                      2023 GENERAL SESSION
                                          STATE OF UTAH
                              Chief Sponsor: Stephen L. Whyte
                                Senate Sponsor: Lincoln Fillmore
 7
 LONG TITLE
 General Description:
        This bill amends provisions related to municipal land use, development, and
 management of real property.
 Highlighted Provisions:
        This bill:
        < modifies the definition of rural real property;
        < modifies provisions relating to a municipality's annexation of unincorporated
 private property;
        < modifies the process by which a boundary commission considers competing
 petitions for annexation of unincorporated private property;
        < clarifies the circumstances under which a municipality may adopt temporary land
 use restrictions; and
        < modifies the way private parties and municipalities may use development
 agreements.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        10-2-401, as last amended by Laws of Utah 2021, Chapter 112
       H.B. 406                                                                     Enrolled Copy
        10-2-402, as last amended by Laws of Utah 2021, Chapter 112
        10-2-403, as last amended by Laws of Utah 2021, Chapter 112
        10-2-405, as last amended by Laws of Utah 2021, Chapter 112
        10-2-407, as last amended by Laws of Utah 2022, Chapter 355
        10-2-408, as last amended by Laws of Utah 2021, Chapter 112
        10-2-416, as last amended by Laws of Utah 2015, Chapter 352
        10-9a-103, as last amended by Laws of Utah 2022, Chapters 355, 406
        10-9a-504, as renumbered and amended by Laws of Utah 2005, Chapter 254
        10-9a-508, as last amended by Laws of Utah 2016, Chapter 350
        10-9a-509, as last amended by Laws of Utah 2022, Chapters 325, 355 and 406
        10-9a-532, as enacted by Laws of Utah 2021, Chapter 385
        10-9a-534, as enacted by Laws of Utah 2021, First Special Session, Chapter 3
        10-9a-604.5, as last amended by Laws of Utah 2019, Chapter 384
        17-27a-103, as last amended by Laws of Utah 2022, Chapter 406
        17-27a-504, as renumbered and amended by Laws of Utah 2005, Chapter 254
        17-27a-507, as last amended by Laws of Utah 2013, Chapter 309
        17-27a-508, as last amended by Laws of Utah 2022, Chapters 325, 355 and 406
        17-27a-528, as enacted by Laws of Utah 2021, Chapter 385
        17-27a-530, as enacted by Laws of Utah 2021, First Special Session, Chapter 3
        17-27a-604.5, as last amended by Laws of Utah 2020, Chapter 354
50
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-2-401 is amended to read:
        10-2-401. Definitions -- Property owner provisions.
        (1) As used in this part:
        (a) "Affected entity" means:
        (i) a county of the first or second class in whose unincorporated area the area proposed
 for annexation is located;
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         (ii) a county of the third, fourth, fifth, or sixth class in whose unincorporated area the
 area proposed for annexation is located, if the area includes residents or commercial or
 industrial development;
         (iii) a local district under Title 17B, Limited Purpose Local Government Entities -
 Local Districts, or special service district under Title 17D, Chapter 1, Special Service District
 Act, whose boundary includes any part of an area proposed for annexation;
         (iv) a school district whose boundary includes any part of an area proposed for
 annexation, if the boundary is proposed to be adjusted as a result of the annexation; and
         (v) a municipality whose boundaries are within 1/2 mile of an area proposed for
 annexation.
         (b) "Annexation petition" means a petition under Section 10-2-403 proposing the
 annexation to a municipality of a contiguous, unincorporated area that is contiguous to the
 municipality.
         (c) "Commission" means a boundary commission established under Section 10-2-409
 for the county in which the property that is proposed for annexation is located.
         (d) "Expansion area" means the unincorporated area that is identified in an annexation
 policy plan under Section 10-2-401.5 as the area that the municipality anticipates annexing in
 the future.
         (e) "Feasibility consultant" means a person or firm with expertise in the processes and
 economics of local government.
         (f) "Mining protection area" means the same as that term is defined in Section
 17-41-101.
         (g) "Municipal selection committee" means a committee in each county composed of
 the mayor of each municipality within that county.
         (h) "Planning advisory area" means the same as that term is defined in Section
 17-27a-306.
         (i) "Private," with respect to real property, means not owned by the United States or
 any agency of the federal government, the state, a county, a municipality, a school district, a
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        H.B. 406                                                                        Enrolled Copy
 local district under Title 17B, Limited Purpose Local Government Entities - Local Districts, a
 special service district under Title 17D, Chapter 1, Special Service District Act, or any other
 political subdivision or governmental entity of the state.
        (j) (i) "Rural real property" means [the same as that term is defined in Section
 17B-2a-1107.] a group of contiguous tax parcels, or a single tax parcel, that:
        (A) are under common ownership;
        (B) consist of no less than 1,000 total acres;
        (C) are zoned for manufacturing or agricultural purposes; and
        (D) do not have a residential unit density greater than one unit per acre.
        (ii) "Rural real property" includes any portion of private real property, if the private
 real property:
        (A) qualifies as rural real property under Subsection (1)(j)(i); and
        (B) consists of more than 1,500 total acres.
        (k) "Specified county" means a county of the second, third, fourth, fifth, or sixth class.
        (l) "Unincorporated peninsula" means an unincorporated area:
        (i) that is part of a larger unincorporated area;
        (ii) that extends from the rest of the unincorporated area of which it is a part;
        (iii) that is surrounded by land that is within a municipality, except where the area
 connects to and extends from the rest of the unincorporated area of which it is a part; and
        (iv) whose width, at any point where a straight line may be drawn from a place where it
 borders a municipality to another place where it borders a municipality, is no more than 25% of
 the boundary of the area where it borders a municipality.
        (m) "Urban development" means:
        (i) a housing development with more than 15 residential units and an average density
 greater than one residential unit per acre; or
        (ii) a commercial or industrial development for which cost projections exceed
 $750,000 for all phases.
        (2) For purposes of this part:
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         (a) the owner of real property shall be:
         (i) except as provided in Subsection (2)(a)(ii), the record title owner according to the
 records of the county recorder on the date of the filing of the petition or protest; or
         (ii) the lessee of military land, as defined in Section 63H-1-102, if the area proposed
 for annexation includes military land that is 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; and
         (b) the value of private real property shall be determined according to the last
 assessment roll for county taxes before the filing of the petition or protest.
         (3) For purposes of each provision of this part that requires the owners of private real
 property covering a percentage or majority of the total private land area within an area to sign a
 petition or protest:
         (a) a parcel of real property may not be included in the calculation of the required
 percentage or majority unless the petition or protest is signed by:
         (i) except as provided in Subsection (3)(a)(ii), owners representing a majority
 ownership interest in that parcel; or
         (ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
 of owners of that parcel;
         (b) the signature of a person signing a petition or protest in a representative capacity on
 behalf of an owner is invalid unless:
         (i) the person's representative capacity and the name of the owner the person represents
 are indicated on the petition or protest with the person's signature; and
         (ii) the person provides documentation accompanying the petition or protest that
 substantiates the person's representative capacity; and
         (c) subject to Subsection (3)(b), a duly appointed personal representative may sign a
 petition or protest on behalf of a deceased owner.
         Section 2. Section 10-2-402 is amended to read:
         10-2-402. Annexation -- Limitations.
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        H.B. 406                                                                       Enrolled Copy
        (1) (a) A contiguous, unincorporated area that is contiguous to a municipality may be
 annexed to the municipality as provided in this part.
        (b) Except as provided in Subsection (1)(c), an unincorporated area may not be
 annexed to a municipality unless:
        (i) the unincorporated area is a contiguous area;
        (ii) the unincorporated area is contiguous to the municipality;
        (iii) annexation will not leave or create an unincorporated island or unincorporated
 peninsula:
        (A) except as provided in Subsection 10-2-418(3);
        (B) except where an unincorporated island or peninsula existed before the annexation,
 if the annexation will reduce the size of the unincorporated island or peninsula; or
        [(B)] (C) unless the county and municipality have otherwise agreed; and
        (iv) for an area located in a specified county, the area is within the proposed annexing
 municipality's expansion area.
        (c) A municipality may annex an unincorporated area within a specified county that
 does not meet the requirements of Subsection (1)(b), leaving or creating an unincorporated
 island or unincorporated peninsula, if:
        (i) the area is within the annexing municipality's expansion area;
        (ii) the specified county in which the area is located and the annexing municipality
 agree to the annexation;
        (iii) the area is not within the area of another municipality's annexation policy plan,
 unless the other municipality agrees to the annexation; and
        (iv) the annexation is for the purpose of providing municipal services to the area.
        (2) Except as provided in Section 10-2-418, a municipality may not annex an
 unincorporated area unless a petition under Section 10-2-403 is filed requesting annexation.
        (3) (a) An annexation under this part may not include part of a parcel of real property
 and exclude part of that same parcel unless the owner of that parcel has signed the annexation
 petition under Section 10-2-403.
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           (b) A piece of real property that has more than one parcel number is considered to be a
 single parcel for purposes of Subsection (3)(a) if owned by the same owner.
           (4) A municipality may not annex an unincorporated area in a specified county for the
 sole purpose of acquiring municipal revenue or to retard the capacity of another municipality to
 annex the same or a related area unless the municipality has the ability and intent to benefit the
 annexed area by providing municipal services to the annexed area.
           (5) (a) As used in this subsection, "expansion area urban development" means:
           (i) for a specified county, urban development within a city or town's expansion area; or
           (ii) for a county of the first class, urban development within a city or town's expansion
 area that:
           (A) consists of 50 or more acres;
           (B) requires the county to change the zoning designation of the land on which the
 urban development is located; and
           (C) does not include commercial or industrial development that is located within a
 mining protection area as defined in Section 17-41-101, regardless of whether the commercial
 or industrial development is for a mining use as defined in Section 17-41-101.
           (b) A county legislative body may not approve expansion area urban development
 unless:
           (i) the county notifies the city or town of the proposed development; and
           (ii) (A) the city or town consents in writing to the development;
           (B) within 90 days after the county's notification of the proposed development, the city
 or town submits to the county a written objection to the county's approval of the proposed
 development and the county responds in writing to the city or town's objection; or
           (C) the city or town fails to respond to the county's notification of the proposed
 development within 90 days after the day on which the county provides the notice.
           (6) (a) As used in this Subsection (6), "airport" means an area that the Federal Aviation
 Administration has, by a record of decision, approved for the construction or operation of a
 Class I, II, or III commercial service airport, as designated by the Federal Aviation
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        H.B. 406                                                                         Enrolled Copy
 Administration in 14 C.F.R. Part 139.
         (b) A municipality may not annex an unincorporated area within 5,000 feet of the
 center line of any runway of an airport operated or to be constructed and operated by another
 municipality unless the legislative body of the other municipality adopts a resolution
 consenting to the annexation.
         (c) A municipality that operates or intends to construct and operate an airport and does
 not adopt a resolution consenting to the annexation of an area described in Subsection (6)(b)
 may not deny an annexation petition proposing the annexation of that same area to that
 municipality.
         (7) (a) As used in this Subsection (7), "project area" means a project area as defined in
 Section 63H-1-102 that is in a project area plan as defined in Section 63H-1-102 adopted by
 the Military Installation Development Authority under Title 63H, Chapter 1, Military
 Installation Development Authority Act.
         (b) A municipality may not annex an unincorporated area located within a project area
 without the authority's approval.
         (c) (i) Except as provided in Subsection (7)(c)(ii), the Military Installation
 Development Authority may petition for annexation of the following areas to a municipality as
 if the Military Installation Development Authority was the sole private property owner within
 the area:
         (A) an area within a project area;
         (B) an area that is contiguous to a project area and within the boundaries of a military
 installation;
         (C) an area owned by the Military Installation Development Authority; and
         (D) an area that is contiguous to an area owned by the Military Installation
 Development Authority that the Military Installation Development Authority plans to add to an
 existing project area.
         (ii) If any portion of an area annexed under a petition for annexation filed by the
 Military Installation Development Authority is located in a specified county:
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         (A) the annexation process shall follow the requirements for a specified county; and
         (B) the provisions of Section 10-2-402.5 do not apply.
         (8) A municipality may not annex an unincorporated area if:
         (a) the area is proposed for incorporation in:
         (i) a feasibility study conducted under Section 10-2a-205; or
         (ii) a supplemental feasibility study conducted under Section 10-2a-206;
         (b) the lieutenant governor completes the first public hearing on the proposed
 incorporation under Subsection 10-2a-207(4); and
         (c) the time period for a