Utah Senate Bill SB0295

Utah 2023 Regular Session

• Introduced: 2/24/23
• Refer: 2/24/23
• Report Pass: 2/27/23
• Failed: 3/3/23

Caption

Dedicated Infrastructure District Act

Impact

The bill significantly influences state laws by creating a new category of local governmental structures, the dedicated infrastructure districts, which will have the authority to levy taxes and issue bonds specifically for infrastructure purposes. Under this act, these districts are charged with maintaining and operating their infrastructure, and they can only operate as long as they are self-sustaining financially. Additionally, they can impose penalties for nonpayment of taxes, thus ensuring mechanisms are in place for revenue collection. Importantly, SB0295 emphasizes the need for local entities to respect existing zoning and planning authority, thus preserving a level of checks and balances.

Summary

SB0295, known as the Dedicated Infrastructure District Act, establishes the framework for creating dedicated infrastructure districts in Utah. This legislation aims to facilitate the financing of infrastructure projects and developments by defining the parameters under which these districts can operate. The act outlines the requirements for the creation of such districts, including the necessity for 100% consent from surface property owners in the area and minimum cost and development thresholds. It provides a structured governance model for the districts, requiring them to have a board of trustees and adhere to transparency standards during the issuance of bonds.

Contention

Notable points of contention arise from the potential overreach of these districts, as critics argue that creating quasi-municipal entities may bypass traditional municipal governance and oversight. Concerns have been raised regarding the implications of allowing dedicated infrastructure districts to compete for financial resources and authority in managing local infrastructure projects. Moreover, issues surrounding the lack of systematic accountability in how these districts levy taxes and manage finances could lead to conflicts and operational inefficiencies, drawing attention to the careful need for oversight mechanisms to ensure they serve the public interests effectively.