Download as pdf or txt
Download as pdf or txt
You are on page 1of 35

WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY

1 UTAH LAKE AUTHORITY


2
3 LONG TITLE
4 General Description:
5 This bill enacts provisions relating to the Utah Lake Authority.
6 Highlighted Provisions:
7 This bill:
8 < creates the Utah Lake Authority;
9 < defines the status of the Utah Lake Authority and provides for the Authority's
10 purposes, powers, duties, policies, and objectives;
11 < establishes a board to govern the Utah Lake Authority and provides for board
12 membership, appointment, terms, duties, and responsibilities;
13 < authorizes the board to appoint nonvoting members, board officers, and
14 advisory committees;
15 < prohibits certain individuals from serving as a member of the board or executive
16 director and prohibits board members and the executive director from receiving
17 certain benefits;
18 < provides for the hiring of an executive director, defines the executive director's
19 role, and provides for the qualifications and duties of the executive director;
20 < provides a process for the adoption and amendment of a project area plan and
21 a project area budget;
22 < provides for the Utah Lake Authority to be paid certain sales tax revenue and
23 other sources of revenue, and provides for the allowable uses of revenue;
24 < authorizes the Utah Lake Authority to issue bonds and includes provisions
25 related to bonds;
26 < requires the Utah Lake Authority board to adopt an annual budget and provides
27 a process for preparing and adopting or amending a budget;
28 < requires the Utah Lake Authority to provide reports and requires the Authority to
29 comply with audit requirements;
30 < provides limits on the dissolution of the Utah Lake Authority and requirements if
31 a dissolution occurs; and

0423 - 2-10-21 draft.wpd Page 1 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
32 < repeals provisions relating to the authority of the Division of Forestry, Fire, and
33 State Lands for the restoration of Utah Lake and gives some of that authority to
34 the Utah Lake Authority.
35
36 Money Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 None
40 List of sections affected:
41 AMENDS:
42 59-12-205
43 63J-1-602.2
44 ENACTS:
45 11-65-101
46 11-65-102
47 11-65-103
48 11-65-104
49 11-65-201
50 11-65-202
51 11-65-203
52 11-65-205
53 11-65-206
54 11-65-207
55 11-65-301
56 11-65-302
57 11-65-303
58 11-65-304
59 11-65-305
60 11-65-401
61 11-65-402
62 11-65-403
63 11-65-404

0423 - 2-10-21 draft.wpd Page 2 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
64 11-65-405
65 11-65-501
66 11-65-502
67 11-65-503
68 11-65-504
69 11-65-505
70 11-65-506
71 11-65-601
72 11-65-602
73 11-65-603
74 11-65-604
75 11-65-605
76 11-65-606
77 11-65-701
78 REPEALS:
79 65A-15-101
80 65A-15-102
81 65A-15-103
82 65A-15-201
83 65A-15-202
84 Statutory text:
85
86 Part 1. General Provisions
87
88 11-65-101. Title.
89 This chapter is known as the "Utah Lake Authority Act."
90
91 11-65-102. Definitions.
92 As used in this chapter:
93 (1) "Adjacent political subdivision" means a political subdivision of the state with a
94 boundary that abuts the lake authority boundary or includes lake authority land.
95 (2) "Board" means the lake authority's governing body, created in Section 11-65-301.

0423 - 2-10-21 draft.wpd Page 3 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
96 (3) "Lake authority" means the Utah Lake Authority, created in Section 11-65-201.
97 (4) "Lake authority boundary" means the boundary around Utah Lake defined by the
98 line of compromise at 4,489 feet above sea level.
99 (5) "Lake authority land" means all land, whether or not submerged under the waters
100 of Utah Lake, within the lake authority boundary and to which the state has acquired title.
101 (6) "Management" means:
102 (a) work to rehabilitate and improve the quality of Utah Lake and the water of Utah
103 Lake;
104 (b) the excavation, importation, movement, or other work on land to reconfigure the
105 contours of land;
106 (c) the demolition, construction, reconstruction, modification, expansion, or
107 improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
108 recreational amenity, or other facility, including publicly owned infrastructure and
109 improvements; and
110 (d) the planning of, arranging for, or participation in any of the activities listed in
111 Subsection (6)(a), (b), or (c).
112 (7) "Management plan" means a plan to conceptualize, design, facilitate, encourage,
113 and bring about the management of the lake authority land to achieve the policies and
114 objectives described in Section 11-65-203.
115 (8) "Nonvoting member" means an individual appointed as a member of the board
116 under Subsection 11-65-302(6) who does not have the power to vote on matters of lake
117 authority business.
118 (9) "Project area" means an area that is identified in a project area plan as the area of
119 lake authority land where the management described in the project area plan will occur.
120 (10) "Project area budget" means a multiyear projection of annual or cumulative
121 revenues and expenses and other fiscal matters pertaining to the project area.
122 (11) "Project area plan" means a written plan that, after its effective date, guides and
123 controls management within a project area and within any adjacent areas that are included
124 within the scope of a management plan.
125 (12) "Public entity" means:
126 (a) the state, including each department, division, or other agency of the state; or
127 (b) a county, city, town, metro township, school district, local district, special service

0423 - 2-10-21 draft.wpd Page 4 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
128 district, interlocal cooperation entity, community reinvestment agency, or other political
129 subdivision of the state.
130 (13) "Publicly owned infrastructure and improvements":
131 (a) means infrastructure, improvements, facilities, or buildings that:
132 (i) benefit the public; and
133 (ii)(A) are owned by a public entity or a utility; or
134 (B) are publicly maintained or operated by a public entity;
135 (b) includes:
136 (i) facilities, lines, or systems that provide:
137 (A) water, chilled water, or steam; or
138 (B) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
139 microgrids, or telecommunications service; and
140 (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
141 facilities, and public transportation facilities.
142 (14) "Voting member" means an individual appointed as a member of the board under
143 Subsection 11-65-302(2).
144
145 11-65-103. Severability.
146 If a court determines that any provision of this chapter, or the application of any
147 provision of this chapter, is invalid, the remainder of this chapter shall be given effect without
148 the invalid provision or application.
149
150 11-65-104. Nonlapsing funds.
151 Money the lake authority receives from legislative appropriations is nonlapsing.
152
153 Part 2. Utah Lake Authority
154
155 11-65-201. Creation of Utah Lake Authority -- Status and purposes.
156 (1) Under the authority of Article XI, Section 8 of the Utah Constitution, there is
157 created the Utah Lake Authority.
158 (2) The lake authority is:
159 (a) an independent, nonprofit, separate body corporate and politic, with perpetual

0423 - 2-10-21 draft.wpd Page 5 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
160 succession;
161 (b) a political subdivision of the state; and
162 (c) a public corporation, as defined in Section 63E-1-102.
163 (3) (a) The statewide public purpose of the lake authority is to work in concert with
164 applicable federal, state, and local government entities, property owners, owners of water
165 rights, and other private parties, and other stakeholders to encourage, facilitate, and
166 implement:
167 (i) the rehabilitation of Utah Lake and the waters of Utah Lake; and
168 (ii) the management of the lake authority land to maximize the long-term viability and
169 health of Utah Lake and to produce economic, aesthetic, recreational, and other benefits for
170 the state, consistent with the strategies, policies, and objectives described in this chapter.
171 (b) The duties and responsibilities of the lake authority under this chapter are beyond
172 the scope and capacity of any local government entity, which has many other responsibilities
173 and functions that appropriately command the attention and resources of the local
174 government entity, and are not functions of purely local concern but are matters of regional
175 and statewide concern, importance, interest, and impact, due to multiple factors, including:
176 (i) the importance and benefit to the region and state of a healthy, vibrant, and
177 ecologically sound Utah Lake; and
178 (ii) the enormous potential for regional and statewide economic, aesthetic,
179 recreational, and other benefit that can come from the rehabilitation of Utah Lake and its
180 waters and the appropriate management of the lake authority land.
181 (c) The lake authority is the mechanism the state chooses to focus resources and
182 efforts on behalf of the state to ensure that the regional and statewide interests, concerns,
183 and purposes described in this Subsection (3) are properly addressed from more of a
184 statewide perspective than any local government entity can provide.
185
186 11-65-202. Lake authority powers and duties.
187 (1)(a) The lake authority has responsibility over planning and coordinating activities
188 relating to the waters of Utah Lake and lake authority land, consistent with the Clean Water
189 Act, 33 U.S.C. Sec. 1251 et seq., and Title 19, Chapter 5, Water Quality Act.
190 (b) The lake authority has exclusive land use authority over the lake authority land.
191 (c) The lake authority shall work with other government entities with jurisdiction over

0423 - 2-10-21 draft.wpd Page 6 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
192 the watershed affecting Utah Lake water to preserve and enhance the quality of water
193 flowing into and out of Utah Lake, subject to and consistent with Title 73, Water and
194 Irrigation.
195 (2) The lake authority has exclusive jurisdiction, responsibility, and power to
196 coordinate the efforts of all applicable state and local government entities, property owners,
197 owners of water rights, and other private parties, and other stakeholders to:
198 (a) develop and implement a management plan for the lake authority land, including:
199 (i) an environmental sustainability component, developed in conjunction with the Utah
200 Department of Environmental Quality, incorporating strategies and best practices to meet or
201 exceed applicable federal and state standards, including:
202 (A) water quality monitoring and reporting; and
203 (B) strategies that use the best available technology to mitigate environmental
204 impacts from management and uses on the lake authority land;
205 (ii) strategies that preserve downstream water use, quantity, and quality;
206 (iii) strategies that maximize the aesthetic qualities and recreational use and
207 enjoyment of Utah Lake; and
208 (iv) strategies that maximize economic development on lake authority land;
209 (b) plan and facilitate the management of Utah Lake uses on lake authority land; and
210 (c) manage any land owned or leased by the lake authority.
211 (3) The lake authority may:
212 (a) develop, facilitate, oversee, and implement a plan for the restoration and
213 rehabilitation of Utah Lake and its waters to:
214 (i) restore the clarity and quality of the water in Utah Lake;
215 (ii) conserve water resources in and around Utah Lake;
216 (iii) preserve the water storage and water supply functions of Utah Lake;
217 (iv) remove invasive plant and animal species, including phragmites and carp, from
218 Utah Lake;
219 (v) restore littoral zone and other plant communities in and around Utah Lake;
220 (vi) restore and conserve native fish and other aquatic species in Utah Lake, including
221 Bonneville cutthroat trout and June Sucker;
222 (vii) increase the suitability of Utah Lake and its surrounding areas for shore birds,
223 waterfowl, and other avian species;

0423 - 2-10-21 draft.wpd Page 7 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
224 (viii) improve navigability of Utah Lake;
225 (ix) maximize, enhance, and ensure recreational access and opportunities on Utah
226 Lake;
227 (x) preserve current water rights related to water associated with Utah Lake; and
228 (xi) otherwise improve the use of Utah Lake for residents and visitors;
229 (b) facilitate and bring about the management of uses on lake authority land, including
230 engaging in marketing and business recruitment activities and efforts to encourage and
231 facilitate:
232 (i) the improvement of water and environmental quality;
233 (ii) the use of Utah Lake and lake authority land for recreation;
234 (iii) the improvement of economic development on lake authority land; and
235 (iv) other development of the lake authority land consistent with the policies and
236 objectives described in Subsection (2);
237 (c) facilitate and provide funding for the management of the lake authority land,
238 including the development of publicly owned infrastructure and improvements and other
239 infrastructure and improvements on or related to the lake authority land;
240 (d) engage in marketing activities and efforts to encourage and facilitate management
241 of the lake authority land;
242 (e) apply for and take all other necessary actions to acquire any available federal
243 funds to accomplish the policies and objectives described in Subsection (2);
244 (f) as the lake authority considers necessary or advisable to carry out any of its duties
245 or responsibilities under this chapter:
246 (i) buy, obtain an option upon, or otherwise acquire any interest in real or personal
247 property;
248 (ii) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
249 personal property; or
250 (iii) enter into a lease agreement on real or personal property, either as lessee or
251 lessor;
252 (g) sue and be sued;
253 (h) enter into contracts generally;
254 (i) provide funding for the development of publicly owned infrastructure and
255 improvements or other infrastructure and improvements on or related to the lake authority

0423 - 2-10-21 draft.wpd Page 8 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
256 land;
257 (j) exercise powers and perform functions under a contract, as authorized in the
258 contract;
259 (k) accept financial or other assistance from any public or private source for the lake
260 authority's activities, powers, and duties, and expend any funds so received for any of the
261 purposes of this chapter;
262 (l) borrow money, contract with, or accept financial or other assistance from the
263 federal government, a public entity, or any other source for any of the purposes of this
264 chapter and comply with any conditions of the loan, contract, or assistance;
265 (m) issue bonds to finance the undertaking of any management objectives of the lake
266 authority, including bonds under this chapter, bonds under Chapte r 17, Utah Industrial
267 Facilities and Development Act, bonds under Chapter 42, Assessment Area Act, and bonds
268 under Chapter 42a, Commercial Property Assessed Clean Energy Act;
269 (n) hire employees, including contract employees;
270 (o) transact other business and exercise all other powers provided for in this chapter;
271 (p) engage one or more consultants to advise or assist the lake authority in the
272 performance of the lake authority's duties and responsibilities;
273 (q) work with adjacent political subdivisions and neighboring property owners and
274 communities to mitigate potential negative impacts from the management of lake authority
275 land;
276 (r) help to facilitate development in a municipality or community reinvestment agency
277 whose boundary abuts the lake authority boundary if the development also benefits the lake
278 authority or the management of lake authority land;
279 (s) own and operate one or more marina facilities if the lake authority considers the
280 lake authority's ownership and operation to be necessary or desirable;
281 (t) subject to Subsection (4), own and operate publicly owned infrastructure and
282 improvements in a project area outside the lake authority land; and
283 (u) exercise powers and perform functions that the lake authority is authorized by
284 statute to exercise or perform.
285 (4) Notwithstanding Subsection (3)(u), the lake authority may not provide service
286 through publicly owned infrastructure and improvements to an area outside the lake
287 authority boundary.

0423 - 2-10-21 draft.wpd Page 9 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
288 (5) The lake authority may consult, coordinate, enter into agreements, or engage in
289 mutually beneficial projects or other activities with a municipality, community reinvestment
290 agency, or adjacent political subdivision, as the board considers appropriate.
291 (6) The lake authority shall:
292 (a) no later than December 31, 2021, prepare an accurate digital map of the lake
293 authority boundary, subject to any later changes to the boundary enacted by the Legislature;
294 and
295 (b) maintain the digital map of the lake authority boundary that is easily accessible by
296 the public.
297 (7) (a) The lake authority may establish a community enhancement program designed
298 to address the impacts that management or uses within the lake authority boundary have on
299 adjacent communities.
300 (b) (i) The lake authority may use lake authority money to support the community
301 enhancement program and to pay for efforts to address the impacts described in Subsection
302 (7)(a).
303 (ii) Lake authority money designated for use under Subsection (7)(b)(i) is exempt from
304 execution or any other process in the collection of a judgment against or debt or other
305 obligation of the lake authority arising out of the lake authority's activities with respect to the
306 community enhancement program.
307 (c) On or before October 31, 2022, the lake authority shall report on the lake
308 authority's actions under this Subsection (7) to:
309 (i) the Infrastructure and General Government Appropriations Subcommittee of the
310 Legislature;
311 (ii) the Natural Resources, Agriculture, and Environment Appropriations Subcommittee
312 of the Legislature; and
313 (iii) the Natural Resources, Agriculture, and Environment Interim Committee of the
314 Legislature.
315 (8) A marina facility owned by the lake authority is subject to a privilege tax under Title
316 59, Chapter 4, Privilege Tax.
317
318 11-65-203. Policies and objectives of the lake authority -- Additional duties of
319 the lake authority.

0423 - 2-10-21 draft.wpd Page 10 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
320 (1) The policies and objectives of the lake authority are to:
321 (a)(i) protect and improve:
322 (A) the quality of Utah Lake's water, consistent with the Clean Water Act, 33 U.S.C.
323 Sec. 1251 et seq., and Title 19, Chapter 5, Water Quality Act;
324 (B) the beneficial uses of the water of Utah Lake; and
325 (C) Utah Lake's environmental quality; and
326 (ii) the quality of Utah Lake's lake bed and sediments;
327 (b) maximize the recreational opportunities afforded by Utah Lake;
328 (c) maximize long-term economic benefits to the area, the region, and the state;
329 (d) respect and maintain sensitivity to the unique natural environment of areas in and
330 around the lake authority boundary;
331 (e) improve air quality and minimize resource use;
332 (f) respect existing land use and other agreements and arrangements between
333 property owners and applicable governmental authorities;
334 (g) promote and encourage management and uses that are compatible with or
335 complement uses in areas in proximity to lake authority land;
336 (h) take advantage of the lake authority land's strategic location and other features
337 that make the lake authority land attractive:
338 (i) to residents for recreational purposes;
339 (ii) for tourism and leisure;
340 (iii) for business opportunities; and
341 (iv) for meeting housing needs;
342 (j) encourage the development and use of cost-efficient renewable energy in project
343 areas;
344 (k) support and promote land uses on the lake authority land and land in other lake
345 authority project areas that generate economic development, including rural economic
346 development; and
347 (l) respect and maintain water rights associated with Utah Lake.
348 (2) In fulfilling its duties and responsibilities relating to the management of the lake
349 authority land and to achieve and implement the management policies and objectives under
350 Subsection (1), the lake authority shall:
351 (a) work to identify funding sources, including federal, state, and local government

0423 - 2-10-21 draft.wpd Page 11 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
352 funding and private funding, for capital improvement projects in and around the lake authority
353 land;
354 (b) review and identify land use and zoning policies and practices to recommend to
355 land use policymakers and administrators of adjoining municipalities that are consistent with
356 and will help to achieve the policies and objectives stated in Subsection (1);
357 (c) consult and coordinate with other applicable governmental entities to improve and
358 enhance transportation and other infrastructure and facilities in order to maximize the
359 potential of the lake authority land to attract, retain, and service users who will help maximize
360 the long-term economic benefit to the state; and
361 (d) pursue policies that the board determines are designed to avoid or minimize
362 negative environmental impacts of management.
363 (3) (a) The lake authority may use lake authority money to encourage, incentivize,
364 fund, or require development that:
365 (i) mitigates noise, air pollution, light pollution, surface and groundwater pollution, and
366 other negative environmental impacts;
367 (ii) mitigates traffic congestion; or
368 (iii) uses high efficiency building construction and operation.
369 (b) In consultation with the municipality in which management is expected to occur,
370 the lake authority shall establish minimum mitigation and environmental standards for
371 management occurring on lake authority land.
372
373 11-65-204. Management plan.
374 (1)(a) The board shall prepare, adopt, and, subject to Subsection (1)(b), im plement a
375 management plan.
376 (b) The lake authority may not begin to implement a management plan until April 1,
377 2022.
378 (2) In preparing a management plan, the board shall:
379 (a) consult with and seek and consider input from the legislative or governing body of
380 each adjacent political subdivision; and
381 (b) consider how the interests of adjacent political subdivisions would be affected by
382 implementation of the management plan.
383 (3) A management plan shall:

0423 - 2-10-21 draft.wpd Page 12 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
384 (a) describe in general terms the lake authority's:
385 (i) vision and plan for achieving and implementing the policies and objectives stated in
386 Section 11-65-203; and
387 (ii) overall plan for the management of lake authority land, including an anticipated
388 timetable and any anticipated phases of management;
389 (b) accommodate and advance, as much as reasonably possible without sacrificing
390 the policies and objectives stated in Section 11-65-203, the interests of adjacent political
391 subdivisions;
392 (c) describe in general terms how the lake authority anticipates cooperating with
393 adjacent political subdivisions to pursue mutually beneficial goals in connection with the
394 management of lake authority land; and
395 (d) identify the anticipated sources of revenue for implementing the management plan.
396 (4)(a) Before adopting a management plan, the board shall provide a copy of the
397 proposed management plan to each adjacent political subdivision.
398 (b) An adjacent political subdivision may submit to the board comments or
399 suggestions relating to the proposed management plan.
400 (c) The board shall establish a deadline for submitting comments or suggestions under
401 Subsection (4)(b) that is at least 30 days after the board provides a copy of the proposed
402 management plan under Subsection (4)(a).
403 (d) Before adopting a management plan, the board shall consider comments and
404 suggestions that are submitted by the deadline established under Subsection (4)(c).
405
406 11-65-205. Succeeding to Division of Forestry, Fire, and State Lands in Utah
407 Lake -- Lake restoration project.
408 (1) As used in this section:
409 (a) "Division" means the Division of Forestry, Fire, and State Lands created in Section
410 65A-1-4.
411 (b) "Restoration project" means a project for the comprehensive restoration of Utah
412 Lake, as provided in Laws of Utah 2018, Chapter 381.
413 (c) "Restoration project agreement" means an agreement under which a restoration
414 project contractor agrees to undertake a restoration project.
415 (d) "Restoration project contractor" means a person who executes a legally binding

0423 - 2-10-21 draft.wpd Page 13 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
416 restoration project agreement with the lake authority.
417 (2) The lake authority:
418 (a) is substituted in the place of the division with respect to efforts and proceedings
419 undertaken by the division for the establishment of a restoration project agreement; and
420 (b) may enter into a restoration project agreement if:
421 (i) the lake authority finds that the restoration project will fulfill the purposes of the
422 restoration project listed in Subsection 11-65-202(3)(a); and
423 (ii) the restoration project agreement is consistent with the provisions of this chapter.
424 (3)(a) To the extent consistent with applicable provisions of the Utah Constitution, and
425 subject to Subsection (4), a restoration project agreement may provide for the lake authority
426 to dispose of lake authority land as compensation for the execution of a restoration project
427 under the restoration project agreement.
428 (b) In determining whether to agree to the disposition of lake authority land in
429 exchange for the execution of a restoration project, the lake authority shall consider:
430 (i) the potential benefit to the citizens of the state from execution of a restoration
431 project, the desirability of the proposed use of Utah Lake and the surrounding areas as a
432 result of the restoration project, and the enhancem ent in the usability and enjoyment of Utah
433 Lake and lake authority land that will accrue to the public because of the restoration project;
434 (ii) the potential that the restoration project presents f or additional revenue to state
435 and local government entities;
436 (iii) the ability of the proposed use of the lake authority land given in exchange for the
437 execution of the restoration project to enhance state property adjacent to the lake authority
438 land;
439 (iv) the proposed timetable for completion of the restoration project; and
440 (v) the ability of the restoration project contractor to execute and complete the
441 restoration project satisfactorily.
442 (4)(a) Any disposition of lake authority land pursuant to a restoration project
443 agreement under Subsection (3) is subject to the approval of the Legislative Management
444 Committee, as provided in this Subsection (4).
445 (b) Upon the work under a restoration project agreement reaching an applicable
446 benchmark under the restoration project agreement for the disposition of lake authority land,
447 the lake authority shall notify the Legislative Management Committee and request approval

0423 - 2-10-21 draft.wpd Page 14 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
448 for the disposition.
449 (c) The Legislative Management Committee shall approve the disposition of lake
450 authority land if the lake authority demonstrates that:
451 (i) the disposition is consistent with the terms of the restoration project agreement; and
452 (ii) the restoration project has fulfilled or is adequately fulfilling the purposes of the
453 restoration project listed in Subsection 11-65-202(3)(a).
454 (5) Upon the lake authority transferring ownership of lake authority land to a private
455 party in exchange for and in furtherance of the execution of a restoration project, the land
456 becomes subject to, as applicable:
457 (a) Title 10, Chapter 9a, Municipal Land use, Development, and Management Act; or
458 (b) Title 17, Chapter 27a, County Land use, Development, and Management Act.
459
460 11-65-206. Recommendation to the Legislature.
461 (1) The lake authority shall work with adjacent political subdivisions to develop
462 recommendations to present to the Legislature.
463 (2) The recommendations developed under this section shall address:
464 (a) how the lake authority management plan should coordinate with the land use and
465 development plans of adjacent political subdivisions;
466 (b) alternatives for the authority to generate revenue to fund lake authority operations,
467 including:
468 (i) taxing authority;
469 (ii) the ability to impose fees, including waste water fees, storm water fees, or lake
470 fees;
471 (iii) the ability to receive a portion of property tax revenue on adjacent land within
472 adjacent political subdivisions; and
473 (iv) the sharing of revenue with adjacent political subdivisions; and
474 (c) potential proposals to encourage the participation of adjacent political subdivisions
475 in a coordinated plan for the management of lake authority land and adjacent land in
476 adjacent political subdivisions.
477 (3) No later than November 30, 2021, the board shall present the recom mendations
478 developed under this section to the Natural Resources, Agriculture, and Environment Interim
479 Committee and the Revenue and Taxation Interim Committee.

0423 - 2-10-21 draft.wpd Page 15 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
480 11-65-207. Applicability of other law -- Cooperation of state and local
481 governments -- Municipality to consider board input -- Municipal services.
482 (1) The lake authority is subject to and governed by Sections 63E-2-106, 63E-2-107,
483 63E-2-108, 63E-2-109, 63E-2-110, and 63E-2-111, but is not otherw ise subject to or
484 governed by Title 63E, Independent Entities Code.
485 (2) A department, division, or other agency of the state and a political subdivision of
486 the state shall, upon the board's request, cooperate with the lake authority to provide the
487 support, information, or other assistance reasonably necessary to help the lake authority
488 fulfill its duties and responsibilities under this chapter.
489 (3) Nothing in this chapter may be construed to affect or impair the authority of the
490 Department of Environmental Quality, created in Section 19-1-104, to regulate under Title 19,
491 Environmental Quality Code, consistent with the purposes of this chapter.
492
493 Part 3. Lake Authority Board
494
495 11-65-301. Utah Lake Authority board -- Delegation of power.
496 (1) The lake authority shall be governed by a board which shall manage and conduct
497 the business and affairs of the lake authority and shall determine all questions of lake
498 authority policy.
499 (2) All powers of the lake authority are exercised through the board or, as provided in
500 Section 11-65-305, the executive director.
501 (3) The board may by resolution delegate powers to lake authority staff.
502
503 11-65-302. Number of board members -- Appointment -- Vacancies.
504 (1) The lake authority's board shall consist of 13 members, as provided in Subsection
505 (2).
506 (2) (a) The governor shall appoint two board members, at least one of whom shall be
507 from the Governor's Office of Economic Development.
508 (b) The president of the Senate shall appoint one board m ember.
509 (c) The speaker of the House of Representatives shall appoint one board member.
510 (d) The legislative body of Utah County shall appoint one board member.
511 (e)(i) The Utah County Council of Governments shall appoint two board members.

0423 - 2-10-21 draft.wpd Page 16 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
512 (ii) The initial members appointed by the Utah County Council of Governments shall
513 be:
514 (A) an individual designated by the legislative body of Lehi City; and
515 (B) an individual designated by the legislative body of Lindon City.
516 (f) The Utah Valley Chamber of Commerce shall appoint one member.
517 (g) The legislative body of the city of Provo shall appoint one board member.
518 (h) The legislative body of the city of Orem shall appoint one board member.
519 (i) The legislative body of the city of Vineyard shall appoint one board member.
520 (j) The legislative body of the city of American Fork shall appoint one board member.
521 (k) The legislative body of the city of Saratoga Springs shall appoint one board
522 member.
523 (3) Appointments required under Subsection (2) shall be made no later than June 1,
524 2021.
525 (4) (a) A vacancy in the board shall be filled in the same manner under this section as
526 the appointment of the member whose vacancy is being filled.
527 (b) A person appointed to fill a vacancy shall serve the remaining unexpired term of
528 the member whose vacancy the person is filling.
529 (5) A member of the board appointed by the governor, president of the Senate, or
530 speaker of the House of Representatives serves at the pleasure of and may be removed and
531 replaced at any time, with or without cause, by the governor, president of the Senate, or
532 speaker of the House of Representatives, respectively.
533 (6) The lake authority may appoint nonvoting members of the board and set terms for
534 those nonvoting members.
535 (7) Upon a vote of a majority of all board members, the board may appoint a board
536 chair and any other officer of the board.
537 (8) The board may appoint one or more advisory committees that may include
538 individuals from impacted public entities, community organizations, environmental
539 organizations, business organizations, or other organizations or associations.
540
541 11-65-303. Term of board members -- Quorum -- Compensation.
542 (1) The term of a board member appointed under Subsection 11-65-302(2) is f our
543 years, except that the initial term is two years for:

0423 - 2-10-21 draft.wpd Page 17 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
544 (a) one of the two members appointed under Subsection 11-65-302(2)(a), as
545 designated by the governor;
546 (b) one of the two members appointed under Subsection 11-65-302(2)(e), as
547 designated by the Utah County Council of Governments; and
548 (c) the members appointed under Subsections 11-65-302(2)(c), (g), (i), and (k).
549 (2) Each board member shall serve until a successor is duly appointed and qualified.
550 (3) A board member may serve multiple terms if duly appointed to serve each term
551 under Subsection 11-65-302(2).
552 (4) A majority of board members constitutes a quorum, and the action of a majority of
553 a quorum constitutes action of the board.
554 (5) (a) A board member who is not a legislator may not receive compensation or
555 benefits for the member's service on the board, but may receive per diem and
556 reimbursement for travel expenses incurred as a board member as allowed in:
557 (i) Sections 63A-3-106 and 63A-3-107; and
558 (ii) rules made by the Division of Finance according to Sections 63A-3-106 and
559 63A-3-107.
560 (b) Compensation and expenses of a board member who is a legislator are governed
561 by Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator Compensation.
562
563 11-65-304. Limitations on board members and executive director.
564 (1) As used in this section:
565 (a) "Direct financial benefit":
566 (i) means any form of financial benefit that accrues to an individual directly, including:
567 (A) compensation, commission, or any other form of a payment or increase of money;
568 and
569 (B) an increase in the value of a business or property; and
570 (ii) does not include a financial benefit that accrues to the public generally.
571 (b) "Family member" means a parent, spouse, sibling, child, or grandchild.
572 (2) An individual may not serve as a voting member of the board or as executive
573 director if the individual or a family member of the individual owns an interest in, is directly
574 affiliated with, or is an employee or officer of a private firm, private company, or other private
575 entity that the individual reasonably believes is likely to participate in or receive a direct

0423 - 2-10-21 draft.wpd Page 18 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
576 financial benefit from the management of the lake authority land.
577 (3) Before taking office as a voting member of the board or accepting employment as
578 executive director, an individual shall submit to the lake authority a statement verifying that
579 the individual's service as a board member or employment as executive director does not
580 violate Subsection (2).
581 (4) (a) A voting member or nonvoting member of the board or an employee of the
582 lake authority may not receive a direct financial benefit from the management of lake
583 authority land.
584 (b) For purposes of Subsection (4)(a), a direct financial benefit does not include:
585 (i) expense reimbursements;
586 (ii) per diem pay for board member service, if applicable; or
587 (iii) an employee's compensation or benefits from employment with the lake authority.
588 (5) Nothing in this section may be construed to affect the application or effect of any
589 other code provision applicable to a board member or employee relating to ethics or conflicts
590 of interest.
591
592 11-65-305. Executive director.
593 (1) On or before December 31, 2021, the board shall hire a full-time executive
594 director.
595 (2) (a) The executive director is the chief executive officer of the lake authority.
596 (b) The role of the executive director is to:
597 (i) manage and oversee the day-to-day operations of the lake authority;
598 (ii) fulfill the executive and administrative duties and responsibilities of the lake
599 authority; and
600 (iii) perform other functions, as directed by the board.
601 (3) The executive director shall have the education, experience, and training
602 necessary to perform the executive director's duties in a way that maximizes the potential for
603 successfully achieving and implementing the strategies, policies, and objectives stated in
604 Section 11-65-203.
605 (4) An executive director is an at-will employee who serves at the pleasure of the
606 board and may be removed by the board at any time.
607 (5) The board shall establish the duties, compensation, and benefits of an executive

0423 - 2-10-21 draft.wpd Page 19 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
608 director.
609
610 Part 4. Project Area Plan and Budget
611
612 11-65-401. Preparation of project area plan -- Required contents of project area
613 plan.
614 (1)(a) The lake authority board's adoption of a project area plan is governed by this
615 part.
616 (b) In order to adopt a project area plan, the lake authority board shall:
617 (i) prepare a draft project area plan;
618 (ii) give notice as required under Subsection 11-65-402(2);
619 (iii) hold at least one public meeting, as required under Subsection 11-65-402(1); and
620 (iv) after holding at least one public meeting and subject to Subsection (1)(c), adopt
621 the draft project area plan as the project area plan.
622 (c) Before adopting a draft project area plan as the project area plan, the lake
623 authority board may make modifications to the draft project area plan that the board
624 considers necessary or appropriate.
625 (d)(i) A lease or development agreement that the lake authority enters before the
626 creation of a project area shall provide that the board is not required to create a project area.
627 (ii) The lake authority may not be required to pay any amount or incur any loss or
628 penalty for the board's failure to create a project area.
629 (2) Each project area plan and draft project area plan shall contain:
630 (a) a legal description of the boundary of the project area that is the subject of the
631 project area plan;
632 (b) the lake authority's purposes and intent with respect to the project area;
633 (c) a description of any management proposed to occur within the project area; and
634 (d) the board's findings and determination that:
635 (i) there is a need to effectuate a public purpose;
636 (ii) there is a public benefit to the proposed management project;
637 (iii) it is economically sound and feasible to adopt and carry out the project area plan;
638 and
639 (iv) carrying out the project area plan will promote the purposes of the lake authority,

0423 - 2-10-21 draft.wpd Page 20 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
640 as stated in Section 11-65-203.
641
642 11-65-402. Public meeting to consider and discuss draft project area plan --
643 Notice -- Adoption of plan.
644 (1) The lake authority board shall hold at least one public meeting to consider and
645 discuss the draft project area plan.
646 (2) At least 10 days before holding a public meeting under Subsection (1), the lake
647 authority board shall:
648 (a)(i) post notice of the public meeting on the Utah Public Notice Website created in
649 Section 63F-1-701; and
650 (ii) maintain the posting on the Utah Public Notice Website until the day of the public
651 meeting; and
652 (b) provide notice of the public meeting to:
653 (i) a taxing entity; and
654 (ii) a municipality that is located within one-half mile of the proposed project area.
655 (3) Following consideration and discussion of the project area plan, the board may
656 adopt the draft project area plan as the project area plan.
657
658 11-65-403. Notice of project area plan adoption -- Effective date of plan --
659 Contesting the formation of the plan.
660 (1) Upon the board's adoption of a project area plan, the board shall provide notice as
661 provided in Subsection (1)(b) by publishing or causing to be published legal notice as
662 required by Section 45-1-101.
663 (2)(a) A notice under Subsection (1) shall include:
664 (i) the board resolution adopting the project area plan or a summary of the resolution;
665 and
666 (ii) a statement that the project area plan is available for general public inspection and
667 the hours for inspection.
668 (b) The statement required under Subsection (2)(a)(ii) may be included in the board
669 resolution or summary described in Subsection (2)(a)(i).
670 (3) The project area plan becomes effective on the date designated in the board
671 resolution adopting the project area plan.

0423 - 2-10-21 draft.wpd Page 21 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
672 (4) The lake authority shall make the adopted project area plan available to the
673 general public at its offices during normal business hours.
674 (5) Within 10 days after the day on which a project area plan is adopted that
675 establishes a project area, or after an amendment to a project area plan is adopted under
676 which the boundary of a project area is modified, the lake authority shall send notice of the
677 establishment or modification of the project area and an accurate map or plat of the project
678 area to:
679 (a) the State Tax Commission;
680 (b) the Automated Geographic Reference Center created in Section 63F-1-506; and
681 (c) the assessor and recorder of each county where the project area is located.
682 (6) A legal action or other challenge to a project area plan or a project area described
683 in a project area plan is barred unless brought within 30 days after the effective date of the
684 project area plan.
685
686 63H-1-404. Amendment to a project area plan.
687 (1) The lake authority may amend a project area plan by following the same procedure
688 under this part as applies to the adoption of a project area plan.
689 (2) The provisions of this part apply to the lake authority's adoption of an amendment
690 to a project area plan to the same extent as they apply to the adoption of a project area plan.
691 (3) An amendment to a project area plan does not af fect the base taxable value
692 determination for property already within the project area before the amendment.
693
694 11-65-405. Project area budget.
695 (1) Before the lake authority may use authority funds to implement the management
696 plan, the authority board shall prepare and adopt a project area b udget.
697 (2) The lake authority board may amend an adopted project area budget as and when
698 the lake authority board considers an amendment appropriate.
699 (3) If the lake authority adopts a budget under Part 6, Authority Budget and Reports,
700 that also meets the requirements of this part, the lake authority need not separately adopt a
701 budget under this part.
702
703 Part 5. Lake Authority Bonds

0423 - 2-10-21 draft.wpd Page 22 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
704
705 11-65-501. Resolution authorizing issuance of lake authority bonds --
706 Characteristics of bonds.
707 (1) The lake authority may not issue bonds under this part unless the board f irst
708 adopts a resolution authorizing issuance of the bonds.
709 (2) (a) As provided in the lake authority resolution authorizing the issuance of bonds
710 under this part or the trust indenture under which the bonds are issued, bonds issued under
711 this part may be issued in one or more series and may be sold at public or private sale and in
712 the manner provided in the resolution or indenture.
713 (b) Bonds issued under this part shall bear the date, be pay able at the time, bear
714 interest at the rate, be in the denomination and in the form, carry the conversion or
715 registration privileges, have the rank or priority, be executed in the manner, be subject to the
716 terms of redemption or tender, with or without premium, be payable in the medium of
717 payment and at the place, and have other characteristics as provided in the lake authority
718 resolution authorizing the issuance of the bonds or the trust indenture under which the bonds
719 are issued.
720 (3) Upon the board's adoption of a resolution providing for the issuance of bonds, the
721 board may provide for the publication of the resolution as required in Section 45-1-101.
722 (4) In lieu of publishing the entire resolution, the board may publish notice of bonds
723 that contains the information described in Subsection 11-14-316(2).
724 (5) For a period of 30 days after the publication, any person in interest may contest:
725 (a) the legality of the resolution or proceeding;
726 (b) any bonds that may be authorized by the resolution or proceeding; or
727 (c) any provisions made for the security and payment of the bonds.
728 (6) (a) A person may contest the matters set forth in Subsection (5) by filing a verified
729 written complaint, within 30 days after the publication under Subsection (5), in the district
730 court of the county in which the person resides.
731 (b) A person may not contest the matters set forth in Subsection (5), or the regularity,
732 formality, or legality of the resolution or proceeding, for any reason, after the 30-day period
733 for contesting provided in Subsection (6)(a).
734
735 11-65-502. Sources from which bonds may be made payable -- Lake authority

0423 - 2-10-21 draft.wpd Page 23 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
736 powers regarding bonds.
737 (1) The principal and interest on bonds issued by the lake authority may be made
738 payable from:
739 (a) the income and revenues of the projects financed with the proceeds of the bonds;
740 (b) the income and revenues of certain designated projects whether or not they were
741 financed in whole or in part with the proceeds of the bonds;
742 (c) the income, proceeds, revenues, property, and funds the lake authority derives
743 from or holds in connection with its undertaking and carrying out management of lake
744 authority land;
745 (d) lake authority revenues generally;
746 (e) a contribution, loan, grant, or other financial assistance from the federal
747 government or a public entity in aid of the lake authority; or
748 (f) funds derived from any combination of the methods listed in Subsections (1)(a)
749 through (e).
750 (2) In connection with the issuance of lake authority bonds, the lake authority may:
751 (a) pledge all or any part of the lake authority's gross or net rents, fees, or revenues to
752 which the lake authority then has the right or to which the lake authority may thereafter
753 acquire a right;
754 (b) encumber by mortgage, deed of trust, or otherwise all or any part of the lake
755 authority's real or personal property, then owned or thereafter acquired; and
756 (c) make the covenants and take the action that may be necessary, convenient, or
757 desirable to secure the lake authority's bonds, or, except as otherwise provided in this
758 chapter, that will tend to make the bonds more marketable, even though such covenants or
759 actions are not specifically enumerated in this chapter.
760
761 11-65-503. Purchase of lake authority bonds.
762 (1) Any person, firm, corporation, association, political subdivision of the state, or
763 other entity or public or private officer may purchase bonds issued by the lake authority under
764 this part with funds owned or controlled by the purchaser.
765 (2) Nothing in this section may be construed to relieve a purchaser of lake authority
766 bonds of any duty to exercise reasonable care in selecting securities.
767

0423 - 2-10-21 draft.wpd Page 24 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
768 11-65-504. Those executing bonds not personally liable -- Limitation of
769 obligations under bonds -- Negotiability.
770 (1) A member of the board or other person executing a lake authority bond is not
771 liable personally on the bond.
772 (2) (a) A bond issued by the lake authority is not a general obligation or liability of the
773 state or any of the state's political subdivisions and does not constitute a charge against the
774 general credit or taxing powers of the state or any of the state's political subdivisions.
775 (b) A bond issued by the lake authority is not payable out of any funds or properties
776 other than those of the lake authority.
777 (c) The state and the state's political subdivisions are not and may not be held liable
778 on a bond issued by the lake authority.
779 (d) A bond issued by the lake authority does not constitute indebtedness within the
780 meaning of any constitutional or statutory debt limitation.
781 (3) A bond issued by the lake authority under this part is fully negotiable.
782
783 11-65-505. Obligee rights -- Board may confer other rights.
784 (1) In addition to all other rights that are conferred on an obligee of a bond issued by
785 the lake authority under this part, and subject to contractual restrictions binding on the
786 obligee, an obligee may:
787 (a) by mandamus, suit, action, or other proceeding, compel the lake authority and its
788 board, officers, agents, or employees to perform every term, provision, and covenant
789 contained in any contract of the lake authority with or for the benefit of the obligee, and
790 require the lake authority to carry out the covenants and agreements of the lake authority and
791 to fulfill all duties imposed on the lake authority by this part; and
792 (b) by suit, action, or proceeding in equity, enjoin any acts or things that may be
793 unlawful or violate the rights of the obligee.
794 (2) (a) In a board resolution authorizing the issuance of bonds or in a trust indenture,
795 mortgage, lease, or other contract, the board may confer upon an obligee holding or
796 representing a specified amount in bonds, the rights described in Subsection (2)(b), to
797 accrue upon the happening of an event or default prescribed in the resolution, indenture,
798 mortgage, lease, or other contract, and to be exercised by suit, action, or proceeding in any
799 court of competent jurisdiction.

0423 - 2-10-21 draft.wpd Page 25 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
800 (b) (i) The rights that the board may confer under Subsection (2)(a) are the rights to:
801 (A) cause possession of all or part of a development project to be surrendered to an
802 obligee;
803 (B) obtain the appointment of a receiver of all or part of a lake authority's
804 development project and of the rents and profits from it; and
805 (C) require the lake authority and its board and employees to account as if the lake
806 authority and the board and employees were the trustees of an express trust.
807 (ii) If a receiver is appointed through the exercise of a right granted under Subsection
808 (2)(b)(i)(B), the receiver:
809 (A) may enter and take possession of the development project or any part of the
810 development project, operate and maintain the development project, and collect and receive
811 all fees, rents, revenues, or other charges arising from the development project after the
812 receiver's appointment; and
813 (B) shall keep money collected as receiver for the lake authority in separate accounts
814 and apply the money pursuant to the lake authority obligations as the court directs.
815
816 11-65-506. Bonds exempt from taxes -- Lake authority may purchase its own
817 bonds.
818 (1) A bond issued by the lake authority under this part is issued for an essential public
819 and governmental purpose and is, together with interest on and income from the bond,
820 exempt from all state taxes except the corporate franchise tax.
821 (2) The lake authority may purchase the lake authority's own bonds at a price that the
822 board determines.
823 (3) Nothing in this section may be construed to limit the right of an obligee to pursue a
824 remedy for the enforcement of a pledge or lien given under this part by the lake authority on
825 the lake authority's rents, fees, grants, properties, or revenues.
826
827 Part 6. Lake Authority Budget, Reporting, and Audits
828
829 11-65-601. Annual lake authority budget -- Fiscal year -- Public hearing required
830 -- Auditor forms -- Requirement to file annual budget.
831 (1) The board shall prepare and adopt for the lake authority an annual budget of

0423 - 2-10-21 draft.wpd Page 26 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
832 revenues and expenditures for each fiscal year.
833 (2) An annual lake authority budget shall be adopted before June 22, except that the
834 lake authority's initial budget shall be adopted as soon as reasonably practicable after the
835 organization of the board and the beginning of lake authority operations.
836 (3) The lake authority's fiscal year shall be the period from July 1 to the following June
837 30.
838 (4) (a) Before adopting an annual budget, the board shall hold a public hearing on the
839 annual budget.
840 (b) The lake authority shall provide notice of the public hearing on the annual budget
841 by publishing notice on the Utah Public Notice W ebsite created in Section 63F-1-701, for at
842 least one week immediately before the public hearing.
843 (c) The lake authority shall make the annual budget available for public inspection at
844 least three days before the date of the public hearing.
845 (5) The state auditor shall prescribe the budget forms and the categories to be
846 contained in each lake authority budget, including:
847 (a) revenues and expenditures for the budget year;
848 (b) legal fees; and
849 (c) administrative costs, including rent, supplies, and other materials, and salaries of
850 lake authority personnel.
851 (6) Within 30 days after adopting an annual budget, the board shall file a copy of the
852 annual budget with the auditor of each county in which lake authority land is located, the
853 State Tax Commission, and the state auditor.
854
855 11-65-602. Amending the lake authority annual budget.
856 (1) The board may by resolution amend an annual lake authority budget.
857 (2) An amendment of the annual lake authority budget that would increase the total
858 expenditures may be made only after a public hearing following notice published as required
859 for initial adoption of the annual budget.
860 (3) The lake authority may not make expenditures in excess of the total expenditures
861 established in the annual budget as the budget is adopted or amended.
862
863 11-65-603. Lake authority report.

0423 - 2-10-21 draft.wpd Page 27 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
864 Before November 30 of each year, the board shall present a report to the Executive
865 Appropriations Committee of the Legislature, as the Executive Appropriations Committee
866 directs, that includes:
867 (1) an accounting of how lake authority funds have been spent, including funds spent
868 on the environmental sustainability component of the lake authority business plan under
869 Subsection 11-65-202(2)(a);
870 (2) an update about the progress of the management and implementation of the lake
871 authority management plan under Subsection 11-65-202(2)(a), including the development
872 and implementation of the environmental sustainability component of the plan; and
873 (3) an explanation of the lake authority's progress in achieving the policies and
874 objectives described in Section 11-65-203.
875
876 11-65-604. Audit requirements.
877 The lake authority shall comply with the audit requirements of Title 51, Chapter 2a,
878 Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
879 Entities Act.
880
881 11-65-605. Audit report.
882 (1) The lake authority shall, within 180 days after the end of the lake authority's fiscal
883 year, file a copy of the audit report with the county auditor and the state auditor.
884 (2) Each audit report under Subsection (1) shall include:
885 (a) the outstanding principal amount of bonds issued or other loans incurred to finance
886 the costs associated with the lake authority's projects; and
887 (b) the actual amount expended for:
888 (i) acquisition of property;
889 (ii) site improvements or site preparation costs;
890 (iii) installation of public utilities or other public improvements; and
891 (iv) administrative costs of the lake authority.
892
893 11-65-606. Lake authority chief financial officer is a public treasurer -- Certain
894 lake authority funds are public funds.
895 (1) The lake authority's chief financial officer:

0423 - 2-10-21 draft.wpd Page 28 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
896 (a) is a public treasurer, as defined in Section 51-7-3; and
897 (b) shall invest the lake authority funds specified in Subsection (2) as provided in that
898 subsection.
899 (2) Notwithstanding Subsection 63E-2-110(2)(a), appropriations that the lake authority
900 receives from the state:
901 (a) are public funds; and
902 (b) shall be invested as provided in Title 51, Chapter 7, State Money Management
903 Act.
904
905 Part 7. Lake Authority Dissolution
906
907 11-65-701. Dissolution of lake authority -- Restrictions -- Notice of dissolution --
908 Disposition of lake authority property -- Lake authority records -- Dissolution
909 expenses.
910 (1) The lake authority may not be dissolved unless the lake authority has no
911 outstanding bonded indebtedness, other unpaid loans, indebtedness, or adv ances, and no
912 legally binding contractual obligations with persons or entities other than the state.
913 (2) Upon the dissolution of the lake authority:
914 (a) the Governor's Office of Economic Development shall publish a notice of
915 dissolution as required in Section 45-1-101; and
916 (b) all title to property owned by the lake authority vests in the state.
917 (3) The books, documents, records, papers, and seal of the dissolved lake authority
918 shall be deposited for safekeeping and reference with the state auditor.
919 (4) The lake authority shall pay all expenses of the deactivation and dissolution.
920
921 59-12-205. Ordinances to conform with statutory amendments -- Distribution of
922 tax revenue -- Determination of population.
923 (1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
924 59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's
925 sales and use tax ordinances:
926 (a) within 30 days of the day on which the state makes an amendment to an
927 applicable provision of Part 1, Tax Collection; and

0423 - 2-10-21 draft.wpd Page 29 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
928 (b) as required to conform to the amendments to Part 1, Tax Collection.
929 (2) Except as provided in Subsections (3) through (5) and subject to Subsection (6):
930 (a) 50% of each dollar collected from the sales and use tax authorized by this part
931 shall be distributed to each county, city, and town on the basis of the percentage that the
932 population of the county, city, or town bears to the total population of all counties, cities, and
933 towns in the state; and
934 (b) (i) except as provided in Subsections (2)(b)(ii) and (iii), 50% of each dollar
935 collected from the sales and use tax authorized by this part shall be distributed to each
936 county, city, and town on the basis of the location of the transaction as determined under
937 Sections 59-12-211 through 59-12-215;
938 (ii) 50% of each dollar collected from the sales and use tax authorized by this part
939 within a project area described in a project area plan adopted by the military installation
940 development authority under Title 63H, Chapter 1, Military Installation Development Authority
941 Act, shall be distributed to the military installation development authority created in Section
942 63H-1-201; [and]
943 (iii) 50% of each dollar collected from the sales and use tax authorized by this part
944 within a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, shall be
945 distributed to the Utah Inland Port Authority, created in Section 11-58-201[.] ; and
946 (iv) 50% of each dollar collected from the sales and use tax authorized by this part
947 within a project area under Title 11, Chapter 65, Utah Lake Authority Act, shall be distributed
948 to the Utah Lake Authority, created in Section 11-65-201.
949 (3) (a) Beginning on July 1, 2017, and ending on June 30, 2022, the commission shall
950 distribute annually to a county, city, or town the distribution required by this Subsection (3) if:
951 (i) the county, city, or town is a:
952 (A) county of the third, fourth, fifth, or sixth class;
953 (B) city of the fifth class; or
954 (C) town;
955 (ii) the county, city, or town received a distribution under this section for the calendar
956 year beginning on January 1, 2008, that was less than the distribution under this section that
957 the county, city, or town received for the calendar year beginning on January 1, 2007;
958 (iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located within
959 the unincorporated area of the county for one or more days during the calendar year

0423 - 2-10-21 draft.wpd Page 30 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
960 beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
961 Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
962 American Industry Classification System of the federal Executive Office of the President,
963 Office of Management and Budget; or
964 (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
965 (3)(a)(i)(C), the city or town had located within the city or town for one or more days during
966 the calendar year beginning on January 1, 2008, an establishment described in NAICS
967 Industry Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal
968 Mining, of the 2002 North American Industry Classification System of the federal Executive
969 Office of the President, Office of Management and Budget; and
970 (iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
971 described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
972 one or more days during the calendar year beginning on January 1, 2008, was not the holder
973 of a direct payment permit under Section 59-12-107.1; or
974 (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
975 (3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
976 city or town for one or more days during the calendar year beginning on January 1, 2008,
977 was not the holder of a direct payment permit under Section 59-12-107.1.
978 (b) The commission shall make the distribution required by this Subsection (3) to a
979 county, city, or town described in Subsection (3)(a):
980 (i) from the distribution required by Subsection (2)(a); and
981 (ii) before making any other distribution required by this section.
982 (c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
983 multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
984 (ii) For purposes of Subsection (3)(c)(i):
985 (A) the numerator of the fraction is the difference calculated by subtracting the
986 distribution a county, city, or town described in Subsection (3)(a) received under this section
987 for the calendar year beginning on January 1, 2008, from the distribution under this section
988 that the county, city, or town received for the calendar year beginning on January 1, 2007;
989 and
990 (B) the denominator of the fraction is $333,583.
991 (d) A distribution required by this Subsection (3) is in addition to any other distribution

0423 - 2-10-21 draft.wpd Page 31 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
992 required by this section.
993 (4) (a) As used in this Subsection (4):
994 (i) "Eligible county, city, or town" means a county, city, or town that:
995 (A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
996 (4)(b) equal to the amount described in Subsection (4)(b)(ii); and
997 (B) does not impose a sales and use tax under Section 59-12-2103 on or before July
998 1, 2016.
999 (ii) "Minimum tax revenue distribution" means the total amount of tax revenue
1000 distributions an eligible county, city, or town received from a tax imposed in accordance with
1001 this part for fiscal year 2004-05.
1002 (b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
1003 imposed in accordance with this part equal to the greater of:
1004 (i) the payment required by Subsection (2); or
1005 (ii) the minimum tax revenue distribution.
1006 (5) (a) For purposes of this Subsection (5):
1007 (i) "Annual local contribution" means the lesser of $200,000 or an amount equal to
1008 1.8% of the participating local government's tax revenue distribution amount under
1009 Subsection (2)(a) for the previous fiscal year.
1010 (ii) "Participating local government" means a county or municipality, as defined in
1011 Section 10-1-104, that is not an eligible municipality or grant eligible entity certified in
1012 accordance with Section 35A-8-609.
1013 (b) For revenue collected from the tax authorized by this part that is distributed on or
1014 after January 1, 2019, the commission, before making a tax revenue distribution under
1015 Subsection (2)(a) to a participating local government, shall:
1016 (i) subtract one-twelfth of the annual local contribution for each participating local
1017 government from the participating local government's tax revenue distribution under
1018 Subsection (2)(a); and
1019 (ii) deposit the amount described in Subsection (5)(b)(i) into the Homeless Shelter
1020 Cities Mitigation Restricted Account created in Section 35A-8-606.
1021 (c) For a participating local government that qualifies to receive a distribution
1022 described in Subsection (3) or (4), the commission shall apply the provisions of this
1023 Subsection (5) after the commission applies the provisions of Subsections (3) and (4).

0423 - 2-10-21 draft.wpd Page 32 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
1024 (6) (a) Population figures for purposes of this section shall be based on the most
1025 recent official census or census estimate of the United States Bureau of the Census.
1026 (b) If a needed population estimate is not available from the United States Bureau of
1027 the Census, population figures shall be derived from the estimate from the Utah Population
1028 Committee.
1029 (c) The population of a county for purposes of this section shall be determined only
1030 from the unincorporated area of the county.
1031
1032 63J-1-602.2. List of nonlapsing appropriations to programs.
1033 Appropriations made to the following [programs] are nonlapsing:
1034 (1) The Legislature and the Legislature's committees.
1035 (2) The State Board of Education, including all appropriations to agencies, line items,
1036 and programs under the jurisdiction of the State Board of Education, in accordance with
1037 Section 53F-9-103.
1038 (3) The Percent-for-Art Program created in Section 9-6-404.
1039 (4) The LeRay McAllister Critical Land Conservation Program created in Section
1040 11-38-301.
1041 (5) The Utah Lake Authority created in Section 11-65-201.
1042 [(5)] (6) Dedicated credits accrued to the Utah Marriage Commission as provided
1043 under Subsection 17-16-21(2)(d)(ii).
1044 [(6)] (7) The Trip Reduction Program created in Section 19-2a-104.
1045 [(7)] (8) The Division of Wildlife Resources for the appraisal and purchase of lands
1046 under the Pelican Management Act, as provided in Section 23-21a-6.
1047 [(8)] (9) The emergency medical services grant program in Section 26-8a-207.
1048 [(9)] (10) The primary care grant program created in Section 26-10b-102.
1049 [(10)] (11) Sanctions collected as dedicated credits from Medicaid provider under
1050 Subsection 26-18-3(7).
1051 [(11)] (12) The Utah Health Care Workforce Financial Assistance Program created
1052 in Section 26-46-102.
1053 [(12)] (13) The Rural Physician Loan Repayment Program created in Section
1054 26-46a-103.
1055 [(13)] (14) The Opiate Overdose Outreach Pilot Program created in Section

0423 - 2-10-21 draft.wpd Page 33 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
1056 26-55-107.
1057 [(14)] (15) Funds that the Department of Alcoholic Beverage Control retains in
1058 accordance with Subsection 32B-2-301(8)(a) or (b).
1059 [(15)] (16) The General Assistance program administered by the Department of
1060 Workforce Services, as provided in Section 35A-3-401.
1061 [(16)] (17) A new program or agency that is designated as nonlapsing under Section
1062 36-24-101.
1063 [(17)] (18) The Utah National Guard, created in Title 39, Militia and Armories.
1064 [(18)] (19) The State Tax Commission under Section 41-1a-1201 for the:
1065 (a) purchase and distribution of license plates and decals; and
1066 (b) administration and enforcement of motor vehicle registration requirements.
1067 [(19)] (20) The Search and Rescue Financial Assistance Program, as provided in
1068 Section 53-2a-1102.
1069 [(20)] (21) The Motorcycle Rider Education Program, as provided in Section
1070 53-3-905.
1071 [(21)] (22) The Utah Board of Higher Education for teacher preparation programs, as
1072 provided in Section 53B-6-104.
1073 [(22)] (23) The Medical Education Program administered by the Medical Education
1074 Council, as provided in Section 53B-24-202.
1075 [(23)] (24) The Division of Services for People with Disabilities, as provided in
1076 Section 62A-5-102.
1077 [(24)] (25) The Division of Fleet Operations for the purpose of upgrading
1078 underground storage tanks under Section 63A-9-401.
1079 [(25)] (26) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
1080 [(26)] (27) Appropriations to the Department of Technology Services for technology
1081 innovation as provided under Section 63F-4-202.
1082 [(27)] (28) The Office of Administrative Rules for publishing, as provided in Section
1083 63G-3-402.
1084 [(28)] (29) The Governor's Office of Economic Development to fund the Enterprise
1085 Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
1086 [(29)] (30) Appropriations to fund the Governor's Office of Economic Development's
1087 Rural Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural

0423 - 2-10-21 draft.wpd Page 34 of 35 02/10/2021 10:47 AM


WORKING DRAFT -- FOR DISCUSSION PURPOSES ONLY
1088 Employment Expansion Program.
1089 [(30)] (31) Appropriations to fund programs for the Jordan River Recreation Area as
1090 described in Section 65A-2-8.
1091 [(31)] (32) The Department of Human Resource Management user training program,
1092 as provided in Section 67-19-6.
1093 [(32)] (33) A public safety answering point's emergency telecommunications service
1094 fund, as provided in Section 69-2-301.
1095 [(33)] (34) The Traffic Noise Abatement Program created in Section 72-6-112.
1096 [(34)] (35) The Judicial Council for compensation for special prosecutors, as
1097 provided in Section 77-10a-19.
1098 [(35)] (36) A state rehabilitative employment program, as provided in Section
1099 78A-6-210.
1100 [(36)] (37) The Utah Geological Survey, as provided in Section 79-3-401.
1101 [(37)] (38) The Bonneville Shoreline Trail Program created under Section 79-5-503.
1102 [(38)] (39) Adoption document access as provided in Sections 78B-6-141,
1103 78B-6-144, and 78B-6-144.5.
1104 [(39)] (40) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah
1105 Indigent Defense Commission.
1106 [(40)] (41) The program established by the Division of Facilities Construction and
1107 Management under Section 63A-5b-703 under which state agencies receive an appropriation
1108 and pay lease payments for the use and occupancy of buildings owned by the Division of
1109 Facilities Construction and Management.

0423 - 2-10-21 draft.wpd Page 35 of 35 02/10/2021 10:47 AM

You might also like