Utah 2023 Regular Session

Utah House Bill HB0564 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	H.B. 564
2	2	LEGISLATIVE GENERAL COUNSEL
3	3	6 Approved for Filing: G.N. Gunn 6
4	4	6 02-24-23 1:58 PM 6
5	5	H.B. 564
6	6	1 LIMITED-USE INFRASTRUCTURE DI STRICT
7	7	2 AMENDMENTS
8	8	3 2023 GENERAL SESSION
9	9	4 STATE OF UTAH
10	10	5 Chief Sponsor: James A. Dunnigan
11	11	6 Senate Sponsor: ____________
12	12	7
13	13	8LONG TITLE
14	14	9General Description:
15	15	10 This bill authorizes the creation of limited-use infrastructure districts.
16	16	11Highlighted Provisions:
17	17	12 This bill:
18	18	13 <creates the Limited-Use Infrastructure District Act;
19	19	14 <authorizes the creation of a limited-use infrastructure district which:
20	20	15 Cmay issue assessment bonds and energy assessment bonds;
21	21	16 Cmay enter into interlocal agreements;
22	22	17 Cmay impose fees, assessments, and levy property tax;
23	23	18 Chas the authority to acquire completed or partially completed improvements;
24	24	19and
25	25	20 Cis subject to the Government Records Access and Management Act and the
26	26	21Municipal and County Land Use, Development, and Management Acts;
27	27	22 <establishes the process to initiate the creation of a limited-use infrastructure district;
28	28	23 <provides for the criteria of the governing documents relating to a limited-use
29	29	24infrastructure district;
30	30	25 <provides the process of certification and incorporation of a limited-use
31	31	26infrastructure district;
32	32	27 <provides that a limited-use infrastructure district is a political subdivision of the
33	33	HB0564 H.B. 564 02-24-23 1:58 PM
34	34	- 2 -
35	35	28state; and
36	36	29 <establishes the creation and duties of a limited-use infrastructure district board.
37	37	30Money Appropriated in this Bill:
38	38	31 None
39	39	32Other Special Clauses:
40	40	33 None
41	41	34Utah Code Sections Affected:
42	42	35AMENDS:
43	43	36 17B-1-1303, as last amended by Laws of Utah 2017, Chapter 248
44	44	37ENACTS:
45	45	38 17D-5-101, Utah Code Annotated 1953
46	46	39 17D-5-102, Utah Code Annotated 1953
47	47	40 17D-5-201, Utah Code Annotated 1953
48	48	41 17D-5-202, Utah Code Annotated 1953
49	49	42 17D-5-203, Utah Code Annotated 1953
50	50	43 17D-5-204, Utah Code Annotated 1953
51	51	44 17D-5-205, Utah Code Annotated 1953
52	52	45 17D-5-206, Utah Code Annotated 1953
53	53	46 17D-5-207, Utah Code Annotated 1953
54	54	47 17D-5-208, Utah Code Annotated 1953
55	55	48 17D-5-301, Utah Code Annotated 1953
56	56	49 17D-5-302, Utah Code Annotated 1953
57	57	50 17D-5-303, Utah Code Annotated 1953
58	58	51 17D-5-304, Utah Code Annotated 1953
59	59	52 17D-5-305, Utah Code Annotated 1953
60	60	53
61	61	54Be it enacted by the Legislature of the state of Utah:
62	62	55 Section 1. Section 17B-1-1303 is amended to read:
63	63	56 17B-1-1303. Initiation of dissolution process.
64	64	57 The process to dissolve a local district may be initiated by:
65	65	58 (1) for an inactive local district: 02-24-23 1:58 PM H.B. 564
66	66	- 3 -
67	67	59 (a) (i) for a local district whose board of trustees is elected by electors based on the
68	68	60acre-feet of water allotted to the land owned by the elector, a petition signed by the owners of
69	69	6125% of the acre-feet of water allotted to the land within the local district; or
70	70	62 (ii) for all other districts:
71	71	63 (A) a petition signed by the owners of private real property that:
72	72	64 (I) is located within the local district proposed to be dissolved;
73	73	65 (II) covers at least 25% of the private land area within the local district; and
74	74	66 (III) is equal in assessed value to at least 25% of the assessed value of all private real
75	75	67property within the local district; or
76	76	68 (B) a petition signed by registered voters residing within the local district proposed to
77	77	69be dissolved equal in number to at least 25% of the number of votes cast in the district for the
78	78	70office of governor at the last regular general election before the filing of the petition; or
79	79	71 (b) a resolution adopted by the administrative body; and
80	80	72 (2) for an active local district[,]:
81	81	73 (a) a petition signed by:
82	82	74 [(a)] (i) for a local district whose board of trustees is elected by electors based on the
83	83	75acre-feet of water allotted to the land owned by the elector, the owners of 33% of the acre-feet
84	84	76of water allotted to the land within the local district;
85	85	77 [(b)] (ii) for a local district created to acquire or assess a groundwater right for the
86	86	78development and execution of a groundwater management plan in coordination with the state
87	87	79engineer in accordance with Section 73-5-15, the owners of groundwater rights that:
88	88	80 [(i)] (A) are diverted within the district; and
89	89	81 [(ii)] (B) cover at least 33% of the total amount of groundwater diverted in accordance
90	90	82with the groundwater rights within the district as a whole; [or]
91	91	83 (b) for a limited-use infrastructure district where all debts of the limited-use
92	92	84infrastructure district have been repaid, a resolution adopted by the board of trustees; or
93	93	85 (c) for all other districts:
94	94	86 (i) the owners of private real property that:
95	95	87 (A) is located within the local district proposed to be dissolved;
96	96	88 (B) covers at least 33% of the private land area within the local district; and
97	97	89 (C) is equal in assessed value to at least 25% of the assessed value of all private real H.B. 564 02-24-23 1:58 PM
98	98	- 4 -
99	99	90property within the local district; or
100	100	91 (ii) 33% of registered voters residing within the local district proposed to be dissolved.
101	101	92 Section 2. Section 17D-5-101 is enacted to read:
102	102	93 CHAPTER 5. LIMITED-USE INFRASTRUCTURE DISTRICT ACT
103	103	94 Part 1. General Provisions
104	104	95 17D-5-101. Definitions.
105	105	96 As used in this chapter:
106	106	97 (1) "Assessment bond" means the same as that term is defined in Section 11-42-102.
107	107	98 (2) "Board" means the board of trustees of a limited-use infrastructure district.
108	108	99 (3) "Division" means a division of a limited-use infrastructure district:
109	109	100 (a) that is relatively equal in number of eligible voters or potential eligible voters to all
110	110	101other divisions within the limited-use infrastructure district, taking into account existing or
111	111	102potential developments which, when completed, would increase or decrease the population
112	112	103within the limited-use infrastructure district; and
113	113	104 (b) that a member of the board represents.
114	114	105 (4) "Governing document" means the document governing a limited-use infrastructure
115	115	106district that:
116	116	107 (a) is submitted with the petition described in Section 17D-5-202;
117	117	108 (b) may be amended from time to time in accordance with Section 17D-5-202;
118	118	109 (c) is subject to the limitations of Title 17B, Chapter 1, Provisions Applicable to All
119	119	110Local Districts, and this chapter; and
120	120	111 (d) complies with Section 17D-5-205.
121	121	112 (5) "Responsible clerk" means the same as that term is defined in Section 17B-1-201.
122	122	113 Section 3. Section 17D-5-102 is enacted to read:
123	123	114 17D-5-102. Provisions applicable to limited-use infrastructure districts.
124	124	115 (1) Each limited-use infrastructure district is governed by and has the powers stated in:
125	125	116 (a) this chapter; and
126	126	117 (b) Title 17B, Chapter 1, Provisions Applicable to All Local Districts.
127	127	118 (2) This chapter applies only to a limited-use infrastructure district.
128	128	119 (3) Except as modified or exempted by this chapter, a limited-use infrastructure district
129	129	120is, to the same extent as if the limited-use infrastructure district were a local district, subject to 02-24-23 1:58 PM H.B. 564
130	130	- 5 -
131	131	121the provisions in:
132	132	122 (a) Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
133	133	123 (b) Title 17B, Chapter 1, Provisions Applicable to All Local Districts; and
134	134	124 (c) Title 20A, Election Code.
135	135	125 (4) As applied to limited-use infrastructure districts, if there is a conflict between a
136	136	126provision in Title 17B, Chapter 1, Provisions Applicable to All Local Districts, and a provision
137	137	127of this chapter, the provision in this chapter supersedes the conflicting provision in Title 17B,
138	138	128Chapter 1, Provisions Applicable to All Local Districts.
139	139	129 (5) The annexation of an unincorporated area of a county by a municipality, or the
140	140	130adjustment of a boundary shared by more than one municipality, does not affect the boundaries
141	141	131of a limited-use infrastructure district.
142	142	132 Section 4. Section 17D-5-201 is enacted to read:
143	143	133 Part 2. Creation, Governance, and Powers of a Limited-use Infrastructure District
144	144	134 17D-5-201. Process to initiate the creation of a limited-use infrastructure district.
145	145	135 (1) A person may initiate the creation of a limited-use infrastructure district by filing a
146	146	136petition with the responsible clerk that contains:
147	147	137 (a) if there are any registered voters within the applicable area, the signatures of 100%
148	148	138of registered voters within the applicable area approving the creation of the limited-use
149	149	139infrastructure district; and
150	150	140 (b) the signatures of 100% of surface property owners, within the applicable area,
151	151	141consenting to the creation of the limited-use infrastructure district.
152	152	142 (2) Each petition under Subsection (1) shall:
153	153	143 (a) designate up to five signers of the petition as sponsors, one of whom shall be
154	154	144designated as the contact sponsor, with each sponsor's mailing address and telephone number;
155	155	145 (b) describe the area proposed to be included in the proposed limited-use infrastructure
156	156	146district;
157	157	147 (c) be accompanied by a plat map that:
158	158	148 (i) shows the boundaries of the proposed limited-use infrastructure district;
159	159	149 (ii) is prepared by a licensed surveyor; and
160	160	150 (iii) is signed by all sponsors under Subsection (2)(a) and the county surveyor;
161	161	151 (d) state the number of members that the board of trustees of the proposed limited-use H.B. 564 02-24-23 1:58 PM
162	162	- 6 -
163	163	152infrastructure district will have, in accordance with the requirements of Subsection
164	164	15317B-1-302(4), and the name and address of each of the proposed board members;
165	165	154 (e) include the typed or printed name and current primary residential address of each
166	166	155property owner and registered voter signing the petition;
167	167	156 (f) group the signatures into these separate groups:
168	168	157 (i) the owners of real property located in an unincorporated area of the county;
169	169	158 (ii) the owners of real property located in a municipality;
170	170	159 (iii) the registered voters residing in an unincorporated area of the county; and
171	171	160 (iv) the registered voters residing in a municipality;
172	172	161 (g) state the name of the proposed limited-use infrastructure district, in accordance
173	173	162with Section 17B-1-105, which shall include the words "limited-use infrastructure district"; and
174	174	163 (h) include the proposed governing document described in Subsection 17D-3-101(4).
175	175	164 (3) At any time before the certification of the petition, a signer of a petition may
176	176	165withdraw or, once withdrawn, reinstate the signer's signature, by filing a written withdrawal or
177	177	166reinstatement with the responsible clerk.
178	178	167 (4) Except as provided in this chapter, Title 17B, Chapter 1, Part 2, Creation of a Local
179	179	168District, does not apply to the creation of a limited-use infrastructure district.
180	180	169 Section 5. Section 17D-5-202 is enacted to read:
181	181	170 17D-5-202. Petition certification -- Amended petition.
182	182	171 (1) (a) No later than five days after the day on which a petition under Section
183	183	17217D-5-201 is filed, the responsible clerk shall mail a copy of the petition to:
184	184	173 (i) the clerk of each other county in which any part of the proposed local district is
185	185	174located; and
186	186	175 (ii) the clerk or recorder of each municipality in which any part of the proposed local
187	187	176district is located.
188	188	177 (2) (a) No later than 35 days after the day on which a petition is filed, the clerk of each
189	189	178county of which unincorporated area is within the proposed local district, and the clerk or
190	190	179recorder of each municipality that has boundaries in the proposed local district, shall:
191	191	180 (i) with the assistance of other county or municipal officers from whom the county
192	192	181clerk or municipal clerk or recorder requests assistance, determine, for the clerk's or recorder's
193	193	182respective county or municipality, whether the petition complies with the requirements of 02-24-23 1:58 PM H.B. 564
194	194	- 7 -
195	195	183Section 17D-5-201; and
196	196	184 (ii) notify the responsible clerk in writing of the respective clerk's or recorder's
197	197	185determination under Subsection (2)(a)(i).
198	198	186 (b) The responsible clerk may rely on the determination of the county clerk or the
199	199	187municipal clerk or recorder under Subsection (2)(a) in making the responsible clerk's
200	200	188determination and certification or rejection under Subsection (3).
201	201	189 (3) Within 45 days after the filing of a petition, the responsible clerk shall:
202	202	190 (a) determine whether the petition complies with Section 17D-5-201; and
203	203	191 (b) (i) if the responsible clerk determines that the petition complies with the
204	204	192requirements under Section 17D-5-201:
205	205	193 (A) certify the petition and deliver the certified petition to the contact sponsor;
206	206	194 (B) deliver a copy of the certified petition to the county clerk of each county of which
207	207	195unincorporated area includes any of the area of the proposed limited-use infrastructure district,
208	208	196with a notice indicating that the responsible clerk has determined that the petition complies
209	209	197with applicable requirements;
210	210	198 (C) deliver a copy of the certified petition to the municipal clerk or recorder of each
211	211	199municipality of which boundaries include any of the area of the proposed limited-use
212	212	200infrastructure district, with a notice indicating that the responsible clerk has determined that the
213	213	201petition complies with applicable requirements; and
214	214	202 (D) deliver a copy of the certified petition to the legislative body of each county of
215	215	203which unincorporated area includes, and to the legislative body of each municipality of which
216	216	204boundaries include, any of the proposed limited-use infrastructure district; or
217	217	205 (ii) if the responsible clerk determines that the petition fails to comply with any of the
218	218	206applicable requirements, reject the petition and notify the contact sponsor in writing of the
219	219	207rejection and the reasons for the rejection.
220	220	208 (4) If the responsible clerk fails to certify or reject a petition within 45 days after its
221	221	209filing, the petition shall be considered certified.
222	222	210 (5) The responsible clerk shall certify or reject petitions in the order in which they are
223	223	211filed.
224	224	212 (6) (a) If the responsible clerk rejects a petition under Subsection (3), the sponsors
225	225	213may: H.B. 564 02-24-23 1:58 PM
226	226	- 8 -
227	227	214 (i) amend the petition to correct the reasons for the rejection identified under
228	228	215Subsection (3)(b)(ii); and
229	229	216 (ii) file an amended petition.
230	230	217 (b) A valid signature on a petition that was rejected under Subsection (3)(b)(ii) may be
231	231	218used toward fulfilling the applicable signature requirement of the petition as amended under
232	232	219Subsection (6)(a).
233	233	220 (c) If an amended petition is filed under Subsection (6)(a)(ii), the amended petition is a
234	234	221newly filed petition and shall be processed, in accordance with Subsection (5), based on the
235	235	222date on which the amended petition is filed.
236	236	223 (7) The responsible clerk and each county clerk and municipal clerk or recorder shall
237	237	224act in good faith in making the determinations under this section.
238	238	225 Section 6. Section 17D-5-203 is enacted to read:
239	239	226 17D-5-203. Notice and plat to lieutenant governor -- Certificate of incorporation --
240	240	227Recording requirements -- Effective date.
241	241	228 (1) (a) Within the time specified in Subsection (1)(b), the contact sponsor shall file
242	242	229with the lieutenant governor:
243	243	230 (i) a copy of the certified petition that the responsible clerk delivered under Subsection
244	244	23117D-5-202(3)(b);
245	245	232 (ii) a copy of a notice of an impending boundary action, as defined in Section
246	246	23367-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3), except that the notice shall
247	247	234be signed and verified by the petition sponsors as the approving authority; and
248	248	235 (iii) a copy of an approved final local entity plat, as defined in Section 17-23-20, except
249	249	236that the final local entity plat shall be signed by the petition sponsors as the approving
250	250	237authority.
251	251	238 (b) The contact sponsor shall file the documents listed in Subsection (1)(a) with the
252	252	239lieutenant governor within 10 days after the day on which the certification of a petition under
253	253	240Subsection 17D-5-202(3)(b)(i)(A) is delivered.
254	254	241 (2) Upon the lieutenant governor's issuance of a certificate of incorporation under
255	255	242Section 67-1a-6.5, the contact sponsor shall:
256	256	243 (a) if the limited-use infrastructure district is located within the boundary of a single
257	257	244county, submit to the recorder of that county the original: 02-24-23 1:58 PM H.B. 564
258	258	- 9 -
259	259	245 (i) notice of an impending boundary action;
260	260	246 (ii) certificate of incorporation; and
261	261	247 (iii) approved final local entity plat; or
262	262	248 (b) if the limited-use infrastructure district is located within the boundaries of more
263	263	249than one county:
264	264	250 (i) submit to the recorder of one of those counties the original of the documents listed
265	265	251in Subsections (2)(a)(i) through (iii); and
266	266	252 (ii) submit to the recorder of each other county a certified copy of the documents listed
267	267	253in Subsections (2)(a)(i) through (iii).
268	268	254 (3) (a) Upon the lieutenant governor's issuance of the certificate of incorporation under
269	269	255Section 67-1a-6.5, the limited-use infrastructure district is created and incorporated.
270	270	256 (b) Until the documents listed in Subsection (2) are recorded in the office of the
271	271	257recorder of each county in which the property is located, a newly incorporated limited-use
272	272	258infrastructure district may not:
273	273	259 (i) issue an assessment bond;
274	274	260 (ii) levy or collect a property tax; or
275	275	261 (iii) make or collect an assessment.
276	276	262 (4) (a) A limited-use infrastructure district is a political subdivision of the state,
277	277	263separate and distinct from other political subdivisions, including counties, municipalities, or
278	278	264districts within which the limited-use infrastructure's boundaries may be located.
279	279	265 (b) (i) Except as provided in Subsection (5)(b)(ii), any financial burden of a limited-use
280	280	266infrastructure district:
281	281	267 (A) is the sole financial burden and obligation of the limited-use infrastructure district;
282	282	268and
283	283	269 (B) is not the financial burden or obligation of the state or of any municipality, county,
284	284	270or other political subdivision.
285	285	271 (ii) Notwithstanding Subsection (5)(b)(i) and Section 17B-1-216:
286	286	272 (A) the petition sponsors shall bear the costs of formation of the limited-use
287	287	273infrastructure district; and
288	288	274 (B) the limited-use infrastructure district may reimburse the petition sponsors for the
289	289	275costs of formation that they incurred. H.B. 564 02-24-23 1:58 PM
290	290	- 10 -
291	291	276 (c) Any liability, judgment, or claim against a limited-use infrastructure district:
292	292	277 (i) is the sole responsibility and obligation of the limited-use infrastructure district; and
293	293	278 (ii) does not constitute a liability, judgment, or claim against the state or against any
294	294	279municipality, county, or other political subdivision.
295	295	280 (d) (i) (A) The limited-use infrastructure district solely bears the responsibility and
296	296	281obligation of any collection, enforcement, or foreclosure proceeding regarding any tax, fee, or
297	297	282assessment that the limited-use infrastructure district imposes.
298	298	283 (B) No other political subdivision bears the responsibility or obligation described in
299	299	284Subsection (5)(d)(i)(A).
300	300	285 (ii) A limited-use infrastructure district shall undertake the responsibilities and
301	301	286obligations described in Subsection (5)(d)(i)(A) in accordance with Title 11, Chapter 42,
302	302	287Assessment Area Act.
303	303	288 Section 7. Section 17D-5-204 is enacted to read:
304	304	289 17D-5-204. Annexation or withdrawal of property.
305	305	290 (1) (a) Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
306	306	291boundaries of a limited-use infrastructure district may be annexed into the limited-use
307	307	292infrastructure district if:
308	308	293 (i) the board adopts a resolution approving of the annexation;
309	309	294 (ii) if there are any registered voters within the area proposed to be annexed, a petition
310	310	295is filed with the board, containing the signatures of 100% of the registered voters residing
311	311	296within the area proposed to be annexed, and demonstrating that the registered voters consent to
312	312	297the annexation into the limited-use infrastructure district; and
313	313	298 (iii) a petition is filed with the board, containing the signatures of 100% of the owners
314	314	299of surface property within the area proposed to be annexed, and demonstrating that the surface
315	315	300property owners consent to the annexation into the limited-use infrastructure district.
316	316	301 (b) Within 30 days after the day on which the resolution is adopted under Subsection
317	317	302(1)(a)(i), the board shall file with the lieutenant governor:
318	318	303 (i) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5,
319	319	304that meets the requirements of Subsection 67-1a-6.5(3); and
320	320	305 (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
321	321	306 (2) (a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be 02-24-23 1:58 PM H.B. 564
322	322	- 11 -
323	323	307withdrawn from a limited-use infrastructure district if:
324	324	308 (i) the board adopts a resolution approving the withdrawal; and
325	325	309 (ii) if there are any registered voters within the area proposed to be withdrawn, a
326	326	310petition is filed with the board containing the signatures of 100% of the registered voters within
327	327	311the area and demonstrating that the registered voters consent to the withdrawal from the
328	328	312limited-use infrastructure district; and
329	329	313 (iii) a petition is filed with the board, containing the signatures of 100% of surface
330	330	314property owners within the area proposed to be withdrawn and demonstrating that the surface
331	331	315property owners consent to the withdrawal from the limited-use infrastructure district.
332	332	316 (b) If any bonds that the limited-use infrastructure district has issued are allocable to
333	333	317the property area to be withdrawn and remain unpaid at the time of the proposed withdrawal,
334	334	318the property area remains subject to any taxes, fees, or assessments that the limited-use
335	335	319infrastructure district imposes, until the bonds and any associated refunding bonds are paid.
336	336	320 (c) Within 30 days of the day on which the resolution is adopted under Subsection
337	337	321(3)(a)(i), the board shall file with the lieutenant governor:
338	338	322 (i) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5,
339	339	323that meets the requirements of Subsection 67-1a-6.5(3); and
340	340	324 (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
341	341	325 Section 8. Section 17D-5-205 is enacted to read:
342	342	326 17D-5-205. Limited-use infrastructure district board -- Governing document.
343	343	327 (1) Upon incorporation under Section 17D-5-203, the board of a limited-use
344	344	328infrastructure district is established, in accordance with the governing document.
345	345	329 (2) (a) Unless otherwise limited in the governing document and except as provided in
346	346	330Subsection (2)(b), the initial term of each member of the board is four years.
347	347	331 (b) Notwithstanding Subsection (2)(a) and as allowed under Subsection (2)(c),
348	348	332approximately half of the members of the initial board shall serve a six-year term so that, after
349	349	333the expiration of the initial term, the term of approximately half the board members expires
350	350	334every two years.
351	351	335 (c) A board may elect that a majority of the board serve an initial term of six years.
352	352	336 (d) After a board member's initial term, the term of each member of the board is four
353	353	337years. H.B. 564 02-24-23 1:58 PM
354	354	- 12 -
355	355	338 (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required
356	356	339to be a resident within the boundaries of the limited-use infrastructure district if:
357	357	340 (i) all of the surface property owners consent to the waiver of the residency
358	358	341requirement;
359	359	342 (ii) no individuals reside within the boundaries of the limited-use infrastructure district;
360	360	343 (iii) no qualified individual timely files to be considered for appointment to the board;
361	361	344or
362	362	345 (iv) no qualified individual files a declaration of candidacy for a board position in
363	363	346accordance with Subsection 17B-1-306(5).
364	364	347 (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
365	365	348residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member
366	366	349elected for a division or board position that has transitioned from an appointed to an elected
367	367	350board member in accordance with this section.
368	368	351 (c) An individual who is not a resident within the boundaries of the limited-use
369	369	352infrastructure district may not serve as a board member unless the individual is:
370	370	353 (i) an owner of land or an agent or officer of the owner of land within the boundaries of
371	371	354the limited-use infrastructure district; and
372	372	355 (ii) a registered voter at the individual's primary residence.
373	373	356 (d) The board may appoint a replacement to fill any vacant seat on the board in
374	374	357accordance with the procedure in Subsection 20A-1-512(1)(b), unless there are no residents
375	375	358within the boundaries of the limited-use infrastructure district, in which case the notice
376	376	359requirements under Subsection 20A-1-512(1)(b)(i) do not apply.
377	377	360 (e) If the board fails to appoint an individual to fill a vacancy and complete an elected
378	378	361board member's term within 90 days, the legislative body of the county or municipality whose
379	379	362boundaries contain the largest portion of the limited-use infrastructure district may elect to fill
380	380	363the vacancy in accordance with the procedure for a local district described in Subsection
381	381	36420A-1-512(1)(b).
382	382	365 (4) A board member is not in violation of Section 67-16-9 if the board member:
383	383	366 (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
384	384	367and files the disclosure with the creating entity:
385	385	368 (i) before any appointment or election; and 02-24-23 1:58 PM H.B. 564
386	386	- 13 -
387	387	369 (ii) upon any significant change in the business relationship; and
388	388	370 (b) conducts the affairs of the limited-use infrastructure district in accordance with this
389	389	371title and any parameters described in the governing document.
390	390	372 (5) (a) A governing document may provide for a transition from an appointment by a
391	391	373legislative body to an election by registered voters, based upon milestones or events that the
392	392	374governing document identifies, including a milestone for each division or individual board
393	393	375position, if, when the milestone is reached:
394	394	376 (i) for a division, the registered voters of the division elect a member of the board to
395	395	377replace an appointed member of the board at the next municipal general election for the board
396	396	378position; or
397	397	379 (ii) for an at-large board position established in the governing document, the registered
398	398	380voters of the limited-use infrastructure district elect a member of the board to replace an
399	399	381appointed member of the board at the next municipal general election for the board position.
400	400	382 (b) Regardless of whether a board member is elected under Subsection (4)(a), the
401	401	383position of each remaining board member shall continue until the member's respective division
402	402	384or board position surpasses the density milestone described in the governing document.
403	403	385 (6) (a) The board may, at the board's discretion but no more frequently than every four
404	404	386years, reestablish the boundaries of each division so that each division that has reached a
405	405	387milestone specified in the governing document, as described in Subsection (4)(a), has, as nearly
406	406	388as possible, the same number of eligible voters.
407	407	389 (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
408	408	390consider existing or potential developments within the divisions that, when completed, would
409	409	391increase or decrease the number of eligible voters within the division.
410	410	392 (7) A limited-use infrastructure district may not compensate a board member for the
411	411	393member's service on the board, as provided in Section 17B-1-307, unless the board member is
412	412	394a resident within the boundaries of the limited-use infrastructure district.
413	413	395 (8) A governing document shall:
414	414	396 (a) include a boundary description and a map of the limited-use infrastructure district;
415	415	397 (b) state the number of board members and identify any applicable milestone or
416	416	398triggers related to board members' terms;
417	417	399 (c) include a list of the proposed improvements allowed under Subsection H.B. 564 02-24-23 1:58 PM
418	418	- 14 -
419	419	40017D-5-206(2)(a);
420	420	401 (d) contain a limitation on revenue sources consistent with this chapter;
421	421	402 (e) prohibit the levy of a property tax exceeding the rate set forth in Subsection
422	422	40317D-5-303(1);
423	423	404 (f) include a description and documentation of approved zoning consistent with the list
424	424	405of proposed improvements in Subsection (8)(c):
425	425	406 (i) from a municipality when the proposed improvement is located within a
426	426	407municipality; or
427	427	408 (ii) from a county when the proposed improvement is located within an unincorporated
428	428	409portion of a county;
429	429	410 (g) if a development agreement has been approved within the boundaries of the
430	430	411limited-use infrastructure district, a copy of the approved development agreement; and
431	431	412 (h) include other information that the petition sponsors or limited-use infrastructure
432	432	413district board determines to be necessary or advisable.
433	433	414 (9) The board may amend a governing document by adopting a resolution that
434	434	415approves the amended governing document.
435	435	416 Section 9. Section 17D-5-206 is enacted to read:
436	436	417 17D-5-206. Limited-use infrastructure district powers.
437	437	418 (1) (a) Except as provided in Subsection (1)(b), a limited-use infrastructure district
438	438	419shall have all of the authority conferred upon a local district under Section 17B-1-103.
439	439	420 (b) (i) The power to issue bonds under Subsection 17B-1-103(2)(f) shall be limited to
440	440	421assessment bonds under Title 11, Chapter 42, Assessment Area Act, and energy assessment
441	441	422bonds under Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act.
442	442	423 (ii) The power to levy and collect property taxes shall be limited as set forth in Section
443	443	42417D-5-303.
444	444	425 (iii) The power of eminent domain described in Subsection 17B-1-103(2)(h) does not
445	445	426apply to a limited-use infrastructure district.
446	446	427 (2) In addition to the authority conferred under Subsection (1), a limited-use
447	447	428infrastructure district may:
448	448	429 (a) issue assessment bonds to pay for:
449	449	430 (i) all or part of the costs of acquiring, acquiring an interest in, improving, or extending 02-24-23 1:58 PM H.B. 564
450	450	- 15 -
451	451	431any of the improvements, facilities, or property allowed under Section 11-14-103;
452	452	432 (ii) public improvements related to the provision of housing; and
453	453	433 (iii) capital costs related to public transportation;
454	454	434 (b) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
455	455	435Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
456	456	436of the limited-use infrastructure district, within the limitations of Title 11, Chapter 13,
457	457	437Interlocal Cooperation Act;
458	458	438 (c) acquire completed or partially completed improvements for fair market value as
459	459	439reasonably determined by:
460	460	440 (i) the board; or
461	461	441 (ii) a surveyor or engineer that a limited-use infrastructure district employs or engages
462	462	442to perform the necessary engineering services for and to supervise the construction or
463	463	443installation of the improvements; and
464	464	444 (d) contract with another public entity for that public entity to provide administrative
465	465	445services on behalf of the limited-use infrastructure district, when agreed to by both parties, in
466	466	446order to achieve cost savings and economic efficiencies, at the discretion of the other public
467	467	447entity.
468	468	448 (3) A limited-use infrastructure district is subject to Title 63G, Chapter 2, Government
469	469	449Records Access and Management Act, and the limited-use infrastructure district's board and
470	470	450officers are subject to Title 52, Chapter 4, Open and Public Meetings Act.
471	471	451 (4) Any improvements within a limited-use infrastructure district shall comply with
472	472	452Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act, and Title 17,
473	473	453Chapter 27a, County Land Use, Development, and Management Act.
474	474	454 Section 10. Section 17D-5-207 is enacted to read:
475	475	455 17D-5-207. Relation to other local entities.
476	476	456 (1) Notwithstanding the creation of a limited-use infrastructure district, any other
477	477	457public entity, as applicable, retains all of the entity's authority over all zoning, planning, design
478	478	458specifications and approvals, and permitting within the limited-use infrastructure district.
479	479	459 (2) The inclusion of property within the boundaries of a limited-use infrastructure
480	480	460district does not preclude the inclusion of the property within any other local district.
481	481	461 (3) (a) All infrastructure that is connected to another public entity's system: H.B. 564 02-24-23 1:58 PM
482	482	- 16 -
483	483	462 (i) belongs to that public entity, regardless of inclusion within the boundaries of a
484	484	463limited-use infrastructure district, unless the limited-use infrastructure district and the public
485	485	464entity otherwise agree; and
486	486	465 (ii) shall comply with the design, inspection requirements, and other standards of the
487	487	466public entity.
488	488	467 (b) A limited-use infrastructure district shall convey or transfer the infrastructure
489	489	468described in Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
490	490	469cost to the public entity.
491	491	470 Section 11. Section 17D-5-208 is enacted to read:
492	492	471 17D-5-208. Dissolution.
493	493	472 Upon issuance of all debt of a limited-use infrastructure district, the board shall adopt a
494	494	473resolution initiating the dissolution process under Section 17B-1-1303.
495	495	474 Section 12. Section 17D-5-301 is enacted to read:
496	496	475 Part 3. Bond Issuance Fee Collection and Property Tax Levy Authority for a Limited-use
497	497	476 Infrastructure District
498	498	477 17D-5-301. Limited-use infrastructure district bonds.
499	499	478 (1) (a) Subject to Subsections (1)(b) through (d), a limited-use infrastructure district
500	500	479may issue negotiable bonds for the purposes described in Section 17D-4-203, as provided in, as
501	501	480applicable:
502	502	481 (i) Title 11, Chapter 14, Local Government Bonding Act;
503	503	482 (ii) Title 11, Chapter 27, Utah Refunding Bond Act;
504	504	483 (iii) Title 11, Chapter 42, Assessment Area Act; and
505	505	484 (iv) this section.
506	506	485 (b) An assessment bond issued by a limited-use infrastructure district must be:
507	507	486 (i) secured only by property and improvements within a limited-use infrastructure
508	508	487district; and
509	509	488 (ii) payable only from an assessment on each property within the limited-use
510	510	489infrastructure district, which assessment must be paid in full before the issuance of a building
511	511	490permit on such property.
512	512	491 (2) An assessment bond issued by a limited-use infrastructure district shall mature
513	513	492within 40 years after the date of issuance. 02-24-23 1:58 PM H.B. 564
514	514	- 17 -
515	515	493 (3) The taxable value of the property securing an assessment bond under this Section
516	516	494shall, after completion of the proposed improvements, be at the least three times the amount of
517	517	495the assessments proposed to be levied against the unimproved property.
518	518	496 (4) A limited-use infrastructure district is not a municipal corporation for purposes of
519	519	497the debt limitation of Utah Constitution, Article XIV, Section 4.
520	520	498 (5) The board may, by resolution, delegate to one or more officers of the limited-use
521	521	499infrastructure district the authority to:
522	522	500 (a) in accordance and within the parameters set forth in a resolution adopted in
523	523	501accordance with Section 11-14-302, approve the final interest rate, price, principal amount,
524	524	502maturity, redemption features, and other terms of the bond;
525	525	503 (b) approve and execute any document relating to the issuance of a bond; and
526	526	504 (c) approve any contract related to the acquisition and construction of the
527	527	505improvements, facilities, or property to be financed with a bond.
528	528	506 (6) (a) Any person may contest the legality of the issuance of a limited-use
529	529	507infrastructure district bond or any provisions for the security and payment of the bond for a
530	530	508period of 30 days after:
531	531	509 (i) publication of the resolution authorizing the bond; or
532	532	510 (ii) publication of a notice of bond containing substantially the items required under
533	533	511Subsection 11-14-316(2).
534	534	512 (b) After the 30-day period described in Subsection (6)(a), no person may bring a
535	535	513lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any
536	536	514reason.
537	537	515 (7) The period for commencing an action and serving a summons under Section
538	538	51611-42-106(2)(b)(i) for a designation resolution, assessment resolution, or amended resolution is
539	539	51730 days for a limited-use infrastructure district.
540	540	518 Section 13. Section 17D-5-302 is enacted to read:
541	541	519 17D-5-302. Fees.
542	542	520 (1) A limited-use infrastructure district may charge a fee or other charge for an
543	543	521administrative service that the limited-use infrastructure district provides, to pay some or all of
544	544	522the limited-use infrastructure district's:
545	545	523 (a) costs of acquiring, improving, or extending improvements, facilities, or property; or H.B. 564 02-24-23 1:58 PM
546	546	- 18 -
547	547	524 (b) costs associated with the enforcement of a legal remedy.
548	548	525 (2) The fees described in Subsection (1) shall not exceed the reasonable costs of the
549	549	526administrative services described in Subsection (1).
550	550	527 Section 14. Section 17D-5-303 is enacted to read:
551	551	528 17D-5-303. Limits on limited-use infrastructure district property tax levy -- Notice
552	552	529requirements.
553	553	530 (1) The property tax levy of a limited-use infrastructure district, for all purposes,
554	554	531including administrative expenses of the district, may not exceed .0005 cents per dollar of
555	555	532taxable value of taxable property in the district.
556	556	533 (2) (a) Within 30 days after the day on which the lieutenant governor issues a
557	557	534certificate of incorporation under Section 67-1a-6.5, the board shall:
558	558	535 (i) record a notice with the recorder of the county in which property within the
559	559	536limited-use infrastructure district is located; and
560	560	537 (ii) file a copy of the notice under Subsection (2)(a)(i) with the State Tax Commission.
561	561	538 (b) The notice described in Subsection (2)(a) shall:
562	562	539 (i) contain a description of the boundaries of the limited-use infrastructure district;
563	563	540 (ii) state that a copy of the governing document is on file in the records of the recorder
564	564	541for the county or counties in which the limited-use infrastructure district is located;
565	565	542 (iii) state that the limited-use infrastructure district may repay infrastructure and other
566	566	543improvements through the levy of a property tax; and
567	567	544 (iv) state the maximum rate that the limited-use infrastructure district may levy.
568	568	545 Section 15. Section 17D-5-304 is enacted to read:
569	569	546 17D-5-304. Property tax penalty for nonpayment.
570	570	547 In the event of nonpayment of any tax, fee, or charge that a limited-use infrastructure
571	571	548district imposes, the limited-use infrastructure district may impose a property tax penalty at an
572	572	549annual rate up to .07 cents per dollar of taxable value of taxable property, in addition to any
573	573	550other lawful penalty for nonpayment of property tax.
574	574	551 Section 16. Section 17D-5-305 is enacted to read:
575	575	552 17D-5-305. Action to contest tax, fee, or proceeding -- Requirements -- Exclusive
576	576	553remedy -- Bonds, taxes, and fees incontestable.
577	577	554 (1) A person who contests a tax or fee imposed by a limited-use infrastructure district, 02-24-23 1:58 PM H.B. 564
578	578	- 19 -
579	579	555or who contests a proceeding to create a limited-use infrastructure district, levy a tax, or impose
580	580	556a fee, may bring a civil action against the limited-use infrastructure district or the creating
581	581	557entity to:
582	582	558 (a) set aside the proceeding; or
583	583	559 (b) enjoin the levy, imposition of the fee, or collection of the tax or fee.
584	584	560 (2) The person bringing an action under Subsection (1):
585	585	561 (a) shall bring the action in a district court with jurisdiction in the county in which the
586	586	562limited-use infrastructure district is located; and
587	587	563 (b) may not bring the action against or serve a summons relating to the action on the
588	588	564limited-use infrastructure district more than 30 days after the effective date of the:
589	589	565 (i) creation of the limited-use infrastructure district, if the challenge is to the creation of
590	590	566the limited-use infrastructure district; or
591	591	567 (ii) levy of the tax or imposition of the fee, if the challenge is to a tax or fee.
592	592	568 (3) An action under Subsection (1) is the exclusive remedy of a person who:
593	593	569 (a) claims an error or irregularity in a tax or fee, or an error or irregularity in any
594	594	570proceeding to create a limited-use infrastructure district, levy a tax, or impose a fee; or
595	595	571 (b) challenges a bondholder's right to repayment.
596	596	572 (4) After the expiration of the 30-day period described in Subsection (2)(b):
597	597	573 (a) a bond issued or to be issued with respect to a limited-use infrastructure district and
598	598	574any tax levied or fee imposed becomes incontestable against any person who has not brought
599	599	575an action and served a summons in accordance with this section;
600	600	576 (b) a person may not bring a suit to:
601	601	577 (i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
602	602	578enforcement of a tax or fee; or
603	603	579 (ii) attack or question in any way the legality of a bond, tax, or fee; and
604	604	580 (c) a court may not inquire into the matters described in Subsection (4)(b).
605	605	581 (5) (a) This section does not insulate a limited-use infrastructure district from a claim
606	606	582of misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).
607	607	583 (b) (i) Except as provided in Subsection (5)(b)(ii), a mandamus action is the sole form
608	608	584of relief available to a party challenging the misuse of funds.
609	609	585 (ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal H.B. 564 02-24-23 1:58 PM
610	610	- 20 -
611	611	586charges against or the prosecution of a party for the misuse of funds.