11-58-304.  Limitations on board members and executive director.

(1)  As used in this section:

Terms Used In Utah Code 11-58-304

(a) the demolition, construction, reconstruction, modification, expansion, or improvement of a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or other facility, including public infrastructure and improvements; and
(b) the planning of, arranging for, or participation in any of the activities listed in Subsection (7)(a). See Utah Code 11-58-102
  • Land: includes :Utah Code 68-3-12.5
  • Nonvoting member: means an individual appointed as a member of the board under Subsection 11-58-302(3) who does not have the power to vote on matters of authority business. See Utah Code 11-58-102
  • Project area: means :
    (a) the authority jurisdictional land, subject to Section 11-58-605; or
    (b) land outside the authority jurisdictional land, whether consisting of a single contiguous area or multiple noncontiguous areas, described in a project area plan or draft project area plan, where the development project set forth in the project area plan or draft project area plan takes place or is proposed to take place. See Utah Code 11-58-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • real property: includes :Utah Code 68-3-12.5
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Voting member: means an individual appointed or designated as a member of the board under Subsection 11-58-302(2). See Utah Code 11-58-102
  • (a)  “Direct financial benefit”:

    (i)  means any form of financial benefit that accrues to an individual directly, including:

    (A)  compensation, commission, or any other form of a payment or increase of money; and

    (B)  an increase in the value of a business or property; and

    (ii)  does not include a financial benefit that accrues to the public generally.

    (b)  “Family member” means a parent, spouse, sibling, child, or grandchild.
  • (2)  An individual may not serve as a voting member of the board or as executive director if:

    (a)  the individual owns real property, other than a personal residence in which the individual resides, within a project area, whether or not the ownership interest is a recorded interest;

    (b)  a family member of the individual owns an interest in real property, other than a personal residence in which the family member resides, located within a project area; or

    (c)  the individual or a family member of the individual owns an interest in, is directly affiliated with, or is an employee or officer of a private firm, private company, or other private entity that the individual reasonably believes is likely to:

    (i)  participate in or receive a direct financial benefit from the development of the authority jurisdictional land; or

    (ii)  acquire an interest in or locate a facility within a project area.

    (3)  Before taking office as a voting member of the board or accepting employment as executive director, an individual shall submit to the authority a statement verifying that the individual’s service as a board member or employment as executive director does not violate Subsection (2).

    (4) 

    (a)  An individual may not, at any time during the individual’s service as a voting member or employment with the authority, acquire, or take any action to initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property located within a project area, if:

    (i)  the acquisition is in the individual’s personal capacity or in the individual’s capacity as an employee or officer of a private firm, private company, or other private entity; and

    (ii)  the acquisition will enable the individual to receive a direct financial benefit as a result of the development of the project area.

    (b)  Subsection (4)(a) does not apply to an individual’s acquisition of, or action to initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property that is a personal residence in which the individual will reside upon acquisition of the real property.

    (5) 

    (a)  A voting member or nonvoting member of the board or an employee of the authority may not receive a direct financial benefit from the development of a project area.

    (b)  For purposes of Subsection (5)(a), a direct financial benefit does not include:

    (i)  expense reimbursements;

    (ii)  per diem pay for board member service, if applicable; or

    (iii)  an employee’s compensation or benefits from employment with the authority.

    (6)  Nothing in this section may be construed to affect the application or effect of any other code provision applicable to a board member or employee relating to ethics or conflicts of interest.

    Amended by Chapter 82, 2022 General Session