SB 278: Development Authority Modifications - Utah

Substitute #4 → Enrolled · 2 edits · Mar 18, 2026

MINOR

This bill updates the effective date of several legislative provisions from May 6, 2026, to March 12, 2026, and clarifies the repeal schedule for specific laws related to preliminary municipalities and state land authority. The changes ensure that the expiration dates for these programs align with the new effective date, preventing any unintended gaps or overlaps in legal authority.

Scope change

The scope of the bill's applicability was expanded by moving the effective date forward by approximately two months, thereby extending the period during which the repealed statutes remain in force before their scheduled termination dates.

TIMELINE

The effective date for the entire bill was changed from May 6, 2026, to March 12, 2026, affecting when the new repeal schedules begin to apply.

The repeal dates for laws governing preliminary municipalities and state land coordination were adjusted to correspond with the new earlier effective date.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill modifies the Point of the Mountain State Land Authority Act to clarify how municipalities can coordinate with the Authority on land use plans before state land is sold. It updates tax distribution percentages for leased property and property tax augmentation, changes the sunset date for the Authority's chapter from 2029 to 2029 while adding a new sunset for a specific coordination provision in 2036, and amends repealer sections to align with these new dates.

Scope change

The bill expands the scope of coordination between the Authority and municipalities by explicitly allowing the Authority to coordinate with the city of Draper regarding land disposition plans, and it clarifies the applicability of local land use laws to state-owned land.

TIMELINE

The sunset date for the main chapter of the Point of the Mountain State Land Authority Act was changed from January 1, 2029, to January 1, 2029 (no change in year, but the repealer section was moved and expanded), and a new sunset date of January 1, 2036, was added for the specific provision allowing the Authority to coordinate with Draper.

FISCAL

The percentage of property tax augmentation distributed to the Authority for transferred parcels was reduced from 75% to 25%.

The effective start date for the privilege tax distribution schedule was changed from January 1, 2023, to January 1, 2026.

REQUIREMENT

New provisions authorize the Authority to coordinate with the city of Draper to ensure alignment of land use plans before disposing of state-owned land to a private party.

TECHNICAL

The repealer sections were amended to include specific repeal dates for various subsections of Title 10 and Title 11, extending some sunset dates to 2031 and 2036.

Minor formatting and text cleanup in the long title and section headers.

Substitute #3 → Substitute #4 · 8 edits

MODERATE

This bill modifies the Point of the Mountain State Land Authority Act to clarify coordination rules between the state and local municipalities, adjust tax revenue distribution percentages, and restrict the Authority's ability to issue new bonds. It also introduces a new section allowing the Authority to request loan extensions or forgiveness from the Division of Finance.

Scope change

The bill expands the scope of coordination between municipalities and state land owners by defining specific 'exempted government landowners' and removing certain procedural notice requirements for local governments planning around state land transfers.

DEFINITION

Added a specific definition for 'exempted government landowner' to clarify which state entities must coordinate with municipalities regarding land use plans.

REQUIREMENT

Removed the requirement for municipalities to follow standard public notice procedures when adopting land use regulations for state-owned land that will be transferred to private owners.

Restricted the Authority's ability to issue new bonds, allowing only one-time refinancing of existing debt.

Added a new provision allowing borrowers to request and the Division of Finance to consider extending or forgiving infrastructure loans.

FISCAL

Reduced the percentage of state sales tax revenue distributed to the Point of the Mountain State Land Authority from 50% to 25%.

Lowered the percentage of property tax augmentation distributed to the Authority from 75% to 25%.

TIMELINE

Adjusted sunset dates for various sections, repealing some existing dates and establishing new ones ranging from 2029 to 2036.

TECHNICAL

Corrected formatting errors and typos in the text of the bill, such as inconsistent spacing and line breaks.

Substitute #2 → Substitute #3 · 8 edits

MODERATE

This bill modifies the Point of the Mountain State Land Authority Act to clarify how municipalities can coordinate with the Authority before state land is sold, adjust tax distribution percentages to the Authority, and update sunset dates for related provisions. It also adds new requirements for public infrastructure districts regarding board appointments and bond issuance limits, and expands the Authority's ability to negotiate loan extensions or forgiveness.

Scope change

The bill expands the scope of coordination between municipalities and the Point of the Mountain State Land Authority and introduces new regulatory requirements for public infrastructure districts and infrastructure loan agreements.

REQUIREMENT

Added a requirement that public infrastructure districts created by development authorities must have a majority of board members appointed by the governing body of that authority, with specific exceptions.

Added a restriction preventing public infrastructure districts from issuing additional bonds after issuing one, except for refinancing bonds one time.

Added authority for borrowers to request and for the Division of Finance to consider amendments to loan agreements to extend terms or forgive loans under specific conditions.

FISCAL

Modified the percentage of state sales and use tax revenue distributed to the Point of the Mountain State Land Authority from 50% to 25%.

Modified the property tax augmentation distribution to the Authority from 75% to 25% for transferred parcels.

Modified the privilege tax distribution schedule for the Authority, changing percentages over time from 100% down to 25% and adjusting specific start dates.

TIMELINE

Modified sunset dates, repealing the 2029 sunset for the Authority Act and creating a new 2029 sunset date, while also adjusting the sunset for municipal coordination provisions to 2036.

DEFINITION

Added a new definition for 'exempted government landowner' to clarify which state agencies have exclusive control over state-owned land parcels.

Substitute #1 → Substitute #2 · 6 edits

MODERATE

This bill introduces significant new provisions for the Point of the Mountain State Land Authority, including a formal process for municipalities to coordinate with the authority before state land is sold to private developers. It also updates tax distribution percentages for privilege and property taxes and adds several new amendments to the Utah Code that were not present in the previous version.

Scope change

The bill's scope expanded to include new coordination mechanisms between the state authority and local municipalities, as well as additional code sections related to tax revenue distribution and loan agreements.

REQUIREMENT

Added a formal requirement for municipalities to coordinate with the Point of the Mountain State Land Authority before the authority disposes of state-owned land to a private party to ensure future alignment with municipal plans.

Added provisions allowing borrowers to request and the Division of Finance to consider amending loan agreements to extend or forgive loans from infrastructure revolving funds.

DEFINITION

Introduced the new term 'exempted government landowner' to define state agencies with exclusive control over specific parcels of state land.

FISCAL

Modified the distribution percentages of privilege tax revenue to the authority, changing the schedule for when percentages decrease from 100% to 25% over time.

Modified the percentage of property tax augmentation distributed to the authority from 75% to 25%.

TECHNICAL

Added new Utah Code sections (59-12-103 and 63A-3-404) to the list of amendments, indicating changes to tax commission distribution and loan agreement amendments that were not in the previous version.

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