17C-1-702. Project area dissolution -- Dormancy period extension -- Unexpended funds.

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Effective 5/6/2026

(1)A project area is dissolved:

(a)except as provided in Subsection

(2)or

(3), on the day on which the dormancy period ends; or

(b)eight years after the day on which an agency approved the project area if the project area's collection period has not started.

(2)Before the day on which a dormancy period ends, an agency may extend the dormancy period once, for a period not to exceed two years, if:

(a)the agency holds a public hearing to consider the extension, in accordance with Title 17C, Chapter 1, Part 8, Hearing and Notice Requirements;

(b)the agency adopts a resolution at the public hearing described in Subsection (2)(a) that includes:

(i)the name of the project area;

(ii)a project area map or boundary description;

(iii)a description of the progress the agency has made implementing the project area plan;

(iv)a description of the unique circumstances existing in the project area that require that the dormancy period be extended; and

(v)the day on which the extended dormancy period will end and the project area will be dissolved; and

(c)the community legislative body adopts an ordinance that includes the information described in Subsection (2)(b) .

(3)Regardless of when a project area dormancy period ends, an agency may dissolve a project area early if:

(a)the agency adopts a resolution dissolving the project area that includes:

(i)the name of the project area; and

(ii)a project area map or boundary description; and

(b)the community legislative body adopts an ordinance dissolving the project area that includes the information described in Subsection (3)(a) .

(4)Within 30 days after the day on which the community legislative body adopts an ordinance described in Subsection (2)(c) or (3)(b) , the community legislative body shall:

(a)submit a copy of the ordinance to the county recorder of the county in which the project area is located; and

(b)mail or electronically submit a copy of the ordinance to the county auditor, the State Tax Commission, the State Board of Education, and each taxing entity that levies or imposes a tax on property within the project area.

(5)An agency with project area funds remaining at the end of the dormancy period shall return a proportionate share of the unexpended funds to each taxing entity.

(6)Notwithstanding Subsections

(1)and

(2), a project area that allocated project area funds and began a dormancy period before May 6, 2026, shall:

(a)be dissolved five years after the day on which the project area began the dormancy period; and

(b)distribute any unexpended funds in accordance with Subsection

(5).

Amended by Chapter 141 , 2026 General Session