02-09 21:55 2nd Sub. (Salmon) S.B. 169 Todd Weiler proposes the following substitute bill: 1 Governmental Immunity Act Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Todd Weiler House Sponsor: 2 3 LONG TITLE 4 General Description: 5 This bill amends the Governmental Immunity Act. 6 Highlighted Provisions: 7 This bill: 8 ▸ defines a term; 9 ▸ requires a governmental entity to file a statement with Division of Corporations and 10 Commercial Code containing: 11 ● any doing-business-as name the governmental entity utilizes; 12 ● the office or agent designated to receive service of a summons and complaint; and 13 ● the physical address to which service of a summons and complaint is to be delivered 14 by hand or transmitted by mail; 15 ▸ prohibits a governmental entity from challenging the validity of a notice of claim, or the 16 sufficiency of service of a summons and complaint, if the governmental entity: 17 ● fails to file or update the statement described above; and 18 ● has actual notice of the notice of claim or the summons and complaint; 19 ▸ if a challenge described above is not prohibited, requires a claimant to prove that the 20 claimant used reasonable diligence in attempting to discover the identity of a 21 governmental entity using a doing-business-as name; and 22 ▸ makes technical and conforming changes. 23 Money Appropriated in this Bill: 24 None 25 Other Special Clauses: 26 This bill provides a special effective date. 27 Utah Code Sections Affected: 28 AMENDS: 2nd Sub. S.B. 169 2nd Sub. (Salmon) S.B. 169 02-09 21:55 29 11-13-602, as last amended by Laws of Utah 2020, Chapters 354, 381 30 63G-7-401, as last amended by Laws of Utah 2023, Chapter 16 31 63G-7-403, as last amended by Laws of Utah 2020, Chapter 53 32 63G-33-201, as enacted by Laws of Utah 2024, Chapter 511 33 63L-5-302, as renumbered and amended by Laws of Utah 2008, Chapter 382 34 35 Be it enacted by the Legislature of the state of Utah: 36 Section 1. Section 11-13-602 is amended to read: 37 11-13-602 . Definitions. 38 As used in this part: 39 (1) "Asset" means funds, money, an account, real or personal property, or personnel. 40 (2)(a) "Associated entity" means a taxed interlocal entity that adopts a segment's 41 organizing resolution. 42 (b) "Associated entity" does not include any other segment. 43 (3) "Fiduciary duty" means a duty expressly designated as a fiduciary duty of: 44 (a) a director or an officer of a taxed interlocal entity in: 45 (i) the organization agreement of the taxed interlocal entity; or 46 (ii) an agreement executed by the director or the officer and the taxed interlocal 47 entity; or 48 (b) a director or an officer of a segment in: 49 (i) the organizing resolution of the segment; or 50 (ii) an agreement executed by the director or the officer and the segment. 51 (4) "Governing body" means the body established in an organizing resolution to govern a 52 segment. 53 (5) "Governmental law" means: 54 (a) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal 55 Organizations, and Other Local Entities Act; 56 (b) Title 63A, Chapter 3, Division of Finance; 57 (c) Title 63G, Chapter 6a, Utah Procurement Code; 58 (d) a law imposing an obligation on a taxed interlocal entity similar to an obligation 59 imposed by a law described in Subsection (5)(a), (b), or (c); 60 (e) an amendment to or replacement or renumbering of a law described in Subsection 61 (5)(a), (b), (c), or (d); or 62 (f) a law superseding a law described in Subsection (5)(a), (b), (c), or (d). - 2 - 02-09 21:55 2nd Sub. (Salmon) S.B. 169 63 (6) "Indexed office" means the address identified under Subsection [63G-7-401(5)(a)(i)] 64 63G-7-405(6)(a)(i) by a segment's associated entity in the associated entity's statement 65 described in Subsection [63G-7-401(5)] 63G-7-401(6). 66 (7) "Organization agreement" means an agreement, as amended, that creates a taxed 67 interlocal entity. 68 (8) "Organizing resolution" means a resolution described in Subsection 11-13-604(1) that 69 creates a segment. 70 (9) "Principal county" means the county in which the indexed office of a segment's 71 associated entity is located. 72 (10) "Project" means: 73 (a) the same as that term is defined in Section 11-13-103; or 74 (b) facilities, improvements, or contracts undertaken by a taxed interlocal entity in 75 accordance with Subsection 11-13-204(2). 76 (11) "Public asset" means: 77 (a) an asset used by a public entity; 78 (b) tax revenue; 79 (c) state funds; or 80 (d) public funds. 81 (12) "Segment" means a segment created in accordance with Section 11-13-604. 82 (13) "Taxed interlocal entity" means: 83 (a) a project entity that: 84 (i) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3, 85 Project Entity Provisions; 86 (ii) does not receive a payment of funds from a federal agency or office, state agency 87 or office, political subdivision, or other public agency or office other than: 88 (A) a payment that does not materially exceed the greater of the fair market value 89 and the cost of a service provided or property conveyed by the project entity; or 90 (B) a grant that is subject to accountability requirements and that the project entity 91 receives for purposes related to a Utah interlocal energy hub, including 92 research and development of technology, financing, construction, installation, 93 operation, and other actions that the project entity may take with respect to a 94 project; and 95 (iii) does not receive, expend, or have the authority to compel payment from tax 96 revenue; or - 3 - 2nd Sub. (Salmon) S.B. 169 02-09 21:55 97 (b) an interlocal entity that: 98 (i) was created before 1981 for the purpose of providing power supply at wholesale 99 to its members; 100 (ii) does not receive a payment of funds from a federal agency or office, state agency 101 or office, political subdivision, or other public agency or office other than: 102 (A) a payment that does not materially exceed the greater of the fair market value 103 and the cost of a service provided or property conveyed by the interlocal entity; 104 or 105 (B) a loan, grant, guaranty, transferable tax credit, cost-sharing arrangement, or 106 other funding arrangement for an advanced nuclear power facility, as defined 107 in 26 U.S.C. Sec. 45J(d), for an advanced nuclear reactor, as defined in 42 108 U.S.C. Sec. 16271(b)(1), or for an advanced nuclear energy facility that is 109 eligible for a guarantee under 42 U.S.C. Sec. 16513; and 110 (iii) does not receive, expend, or have the authority to compel payment from tax 111 revenue. 112 (14)(a) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit, 113 administer, receive, expend, appropriate, disburse, or have custody. 114 (b) "Use" includes, when constituting a noun, the corresponding nominal form of each 115 term in Subsection (14)(a), individually. 116 (15) "Utah interlocal energy hub" means project entity-owned facilities that: 117 (a) are located within the state; and 118 (b) facilitate the coordination of resources and participants in a multi-county or interstate 119 region for: 120 (i) the generation of energy, including with hydrogen fuel; 121 (ii) the transmission of energy; 122 (iii) energy storage, including compressed air energy storage; 123 (iv) producing environmental benefits; or 124 (v) the production, storage, or transmission of fuel, including hydrogen fuel. 125 Section 2. Section 63G-7-401 is amended to read: 126 63G-7-401 . When a claim arises -- Notice of claim requirements -- 127 Governmental entity statement -- Limits on challenging validity or timeliness of notice of 128 claim. 129 (1) As used in this section, "doing-business-as name" means the name of an entity that: 130 (a) is owned, operated, or controlled by a governmental entity; and - 4 - 02-09 21:55 2nd Sub. (Salmon) S.B. 169 131 (b)(i) is not the name of the governmental entity; or 132 (ii) is not a name from which the governmental entity can be identified. 133 [(1)] (2)(a) Except as provided in Subsection [(1)(b)] (2)(b), a claim arises when the 134 statute of limitations that would apply if the claim were against a private person 135 begins to run. 136 (b) The statute of limitations does not begin to run until a claimant knew, or with the 137 exercise of reasonable diligence should have known: 138 (i) that the claimant had a claim against the governmental entity or the governmental 139 entity's employee; and 140 (ii) the identity of the governmental entity or the name of the employee. 141 (c) The burden to prove the exercise of reasonable diligence is upon the claimant. 142 [(2)] (3) Any person having a claim against a governmental entity, or against the 143 governmental entity's employee for an act or omission occurring during the performance 144 of the employee's duties, within the scope of employment, or under color of authority 145 shall file a written notice of claim with the entity before maintaining an action, 146 regardless of whether or not the function giving rise to the claim is characterized as 147 governmental. 148 [(3)] (4)(a) The notice of claim shall set forth: 149 (i) a brief statement of the facts; 150 (ii) the nature of the claim asserted; 151 (iii) the damages incurred by the claimant so far as the damages are known; and 152 (iv) if the claim is being pursued against a governmental employee individually as 153 provided in Subsection 63G-7-202(3)(c), the name of the employee. 154 (b) The notice of claim shall be: 155 (i) signed by the person making the claim or that person's agent, attorney, parent, or 156 legal guardian, using any form of signature recognized by law as binding; and 157 (ii) delivered, transmitted, or sent, as provided in Subsection [(3)(c)] (4)(c), to the 158 office of: 159 (A) the city or town clerk, when the claim is against an incorporated city or town; 160 (B) the county clerk, when the claim is against a county; 161 (C) the superintendent or business administrator of the board, when the claim is 162 against a school district or board of education; 163 (D) the presiding officer or secretary or clerk of the board, when the claim is 164 against a special district or special service district; - 5 - 2nd Sub. (Salmon) S.B. 169 02-09 21:55 165 (E) the attorney general, when the claim is against the state; 166 (F) a member of the governing board, the executive director, or executive 167 secretary, when the claim is against any other public board, commission, or 168 body; or 169 (G) the agent authorized by a governmental entity to receive the notice of claim by 170 the governmental entity under Subsection [(5)(e)] (6)(e). 171 (c) A notice of claim shall be: 172 (i) delivered by hand to the physical address provided under Subsection [(5)(a)(iii)(A)] 173 (6)(a)(iv)(A); 174 (ii) transmitted by mail to the physical address provided under Subsection [ 175 (5)(a)(iii)(A)] (6)(a)(iv)(A), according to the requirements of Section 68-3-8.5; or 176 (iii) sent by electronic mail to the email address provided under Subsection [ 177 (5)(a)(iii)(B)] (6)(a)(iv)(B). 178 (d) A claimant who submits a notice of claim by electronic mail under Subsection [ 179 (3)(c)(iii)] (4)(c)(iii) shall contemporaneously send a copy of the notice of claim by 180 electronic mail to the city attorney, district attorney, county attorney, attorney 181 general, or other attorney, as the case may be, who represents the governmental entity. 182 [(4)] (5)(a) If an injury that may reasonably be expected to result in a claim against a 183 governmental entity is sustained by a claimant who is under the age of majority or 184 mentally incompetent, that governmental entity may file a request with the court for 185 the appointment of a guardian ad litem for the potential claimant. 186 (b) If a guardian ad litem is appointed, the time for filing a claim under Section 187 63G-7-402 begins when the order appointing the guardian ad litem is issued. 188 [(5)] (6)(a) A governmental entity subject to suit under this chapter shall file a statement 189 with the Division of Corporations and Commercial Code within the Department of 190 Commerce containing: 191 (i) the name and address of the governmental entity; 192 (ii) any doing-business-as name the governmental entity utilizes; 193 [(ii)] (iii) the office or agent designated to receive a notice of claim and service of a 194 summons and complaint; and 195 [(iii)] (iv)(A) the physical address to which a notice of claim is to be delivered by 196 hand or transmitted by mail, for a notice of claim that a claimant chooses to 197 hand deliver or transmit by mail; [and] 198 (B) the email address to which a notice of claim is to be sent, for a notice of claim - 6 - 02-09 21:55 2nd Sub. (Salmon) S.B. 169 199 that a claimant chooses to send by email, and the email address of the city 200 attorney, district attorney, county attorney, attorney general, or other attorney, 201 as the case may be, who represents the governmental entity[.] ; and 202 (C) the physical address to which service of a summons and complaint is to be 203 delivered by hand or transmitted by mail. 204 (b) A governmental entity shall update the governmental entity's statement as necessary 205 to ensure that the information is accurate. 206 (c) The Division of Corporations and Commercial Code shall develop a form for 207 governmental entities to complete that provides the information required [by 208 Subsection (5)(a)] under Subsection (6)(a). 209 (d)(i) A newly incorporated municipality shall file the statement required [by 210 Subsection (5)(a)] under Subsection (6)(a) promptly after the lieutenant governor 211 issues a certificate of incorporation under Section 67-1a-6.5. 212 (ii) A newly incorporated special district shall file the statement required [by 213 Subsection (5)(a)] under Subsection (6)(a) at the time that the written notice is 214 filed with the lieutenant governor under Section 17B-1-215. 215 (e) A governmental entity may, in the governmental entity's statement, identify an agent 216 authorized to accept notices of claim on behalf of the governmental entity. 217 [(6)] (7) The Division of Corporations and Commercial Code shall: 218 (a) maintain an index of the statements required by this section arranged both 219 alphabetically by entity and by county of operation; and 220 (b) make the indices available to the public both electronically and via hard copy. 221 [(7)] (8) A governmental entity may not challenge the validity of a notice of claim[ on the 222 grounds that it] , or the sufficiency of service of a summons and complaint, on the 223 grounds that the notice of claim or the summons and complaint was not directed and 224 delivered to the proper office or agent, if: 225 (a) the error in the direction and delivery of the notice of claim or the summons and 226 complaint is caused by the governmental entity's failure to file or update the 227 statement [required by Subsection (5).] described in Subsection (6)(a); and 228 (b) the governmental entity had actual notice of the notice of claim or the summons and 229 complaint. 230 (9) A claimant bears the burden of proving that, despite the claimant's use of reasonable 231 diligence, the claimant could not discover the identity of a governmental entity, if: 232 (a) the governmental entity asserts a challenge to the validity of a notice of claim, or the - 7 - 2nd Sub. (Salmon) S.B. 169 02-09 21:55 233 sufficiency of service of a summons and complaint, that is not prohibited under 234 Subsection (8); and 235 (b) the claimant opposes the challenge on the basis of the governmental entity's use of a 236 doing-business-as name. 237 [(8)] (10) A governmental entity may not challenge the timeliness, under Section 63G-7-402, 238 of a notice of claim if: 239 (a)(i) the claimant files a notice of claim with the governmental entity: 240 (A) in accordance with the requirements of this section; and 241 (B) within 30 days after the expiration of the time for filing a notice of claim 242 under Section 63G-7-402; 243 (ii) the claimant demonstrates that the claimant previously filed a notice of claim: 244 (A) in accordance with the requirements of this section; 245 (B) with an incorrect governmental entity; 246 (C) in the good faith belief that the claimant was filing the notice of claim with the 247 correct governmental entity; 248 (D) within the time for filing a notice of claim under Section 63G-7-402; and 249 (E) no earlier than 30 days before the expiration of the time for filing a notice of 250 claim under Section 63G-7-402; and 251 (iii) the claimant submits with the notice of claim: 252 (A) a copy of the previous notice of claim that was filed with a governmental 253 entity other than the correct governmental entity; and 254 (B) proof of the date the previous notice of claim was filed; or 255 (b)(i) the claimant delivers by hand, transmits by mail, or sends by email a notice of 256 claim: 257 (A) to an elected official or executive officer of the correct governmental entity 258 but not to the correct office under Subsection [(3)(b)(ii)] (4)(b)(ii); and 259 (B) that otherwise meets the requirements of Subsection [(3)] (4); and 260 (ii)(A) the claimant contemporaneously sends a hard copy or electronic copy of 261 the notice of claim to the office of the city attorney, district attorney, county 262 attorney, attorney general, or other attorney, as the case may be, representing 263 the correct governmental entity; or 264 (B) the governmental entity does not, within 60 days after the claimant delivers 265 the notice of claim under Subsection [(8)(b)(i)] (10)(b)(i), provide written 266 notification to the claimant of the delivery defect and of the identity of the - 8 - 02-09 21:55 2nd Sub. (Salmon) S.B. 169 267 correct office to which the claimant is required to deliver the notice of claim. 268 Section 3. Section 63G-7-403 is amended to read: 269 63G-7-403 . Notifying of the receipt of a notice of claim -- Action in district court 270 -- Time for commencing action -- Commencing action after time limit. 271 (1) Within 60 days after the filing of a notice of claim, the governmental entity, the entity's 272 representative, or the entity's insurance carrier shall inform the claimant in writing: 273 (a) that the notice of claim has been received; and 274 (b) if applicable, that the governmental entity believes it is not the correct governmental 275 entity with which the notice of claim should have been filed. 276 (2)(a)(i) Subject to Subsections (2)(a)(ii) and (b), a claimant may pursue an action in 277 the district court against the governmental entity or an employee of the entity. 278 (ii) A claimant may not file an action before the date that is 60 days after the 279 claimant's notice of claim is filed. 280 (b) Subject to Subsection (3), a claimant shall commence the action within two years 281 after the claim arises, as provided in Subsection [63G-7-401(1)] 63G-7-401(2), 282 regardless of whether or not the function giving rise to the claim is characterized as 283 governmental. 284 (3)(a) As used in this Subsection (3), "claimant" includes a representative of an 285 individual: 286 (i) who dies before an action is begun under this section; and 287 (ii) whose cause of action survives the individual's death. 288 (b) A claimant may commence an action after the time limit described in Subsection 289 (2)(b) if: 290 (i) the claimant had commenced a previous action within the time limit of Subsection 291 (2)(b); 292 (ii) the previous action failed or was dismissed for a reason other than on the merits; 293 and 294 (iii) the claimant commences the new action within one year after the previous action 295 failed or was dismissed. 296 (c) A claimant may commence a new action under Subsection (3)(b) only once. 297 Section 4. Section 63G-33-201 is amended to read: 298 63G-33-201 . Free exercise of religion -- Limitations on burdens imposed by 299 government -- Claims or defenses -- Attorney fees and costs. 300 (1) The free exercise of religion is a fundamental right and applies to all government action, - 9 - 2nd Sub. (Salmon) S.B. 169 02-09 21:55 301 including action that is facially neutral. 302 (2) Except as provided in Subsection (3): 303 (a) a government entity may not substantially burden the free exercise of religion of a 304 person, regardless of whether the burden results from a rule of general applicability; 305 and 306 (b) a person other than a government entity may not seek to apply or enforce 307 government action against another person that substantially burdens the free exercise 308 of religion of the other person, regardless of whether the burden results from a rule of 309 general applicability. 310 (3) A government entity or government action may substantially burden a person's free 311 exercise of religion only if the government entity, or any other person seeking to enforce 312 government action, demonstrates that the burden on the person's free exercise of religion 313 is: 314 (a) essential to furthering a compelling governmental interest; and 315 (b) the least restrictive means of furthering the compelling governmental interest. 316 (4) A person whose free exercise of religion is burdened in violation of this section: 317 (a) may assert the violation as a claim or defense in a judicial or administrative 318 proceeding to obtain relief, regardless of whether a government entity is a party to the 319 proceeding; and 320 (b) is not required to exhaust administrative remedies before bringing a claim, or raising 321 a defense, described in this Subsection (4). 322 (5)(a) Except as provided in Subsection (5)(b), a person may not bring an action under 323 this section against a government entity described in Subsections 63G-33-101(4)(a)(i) 324 through (iii) unless, at least 60 days before the day on which the person brings the 325 action, the person provides written notice to the government entity, in accordance 326 with Subsections [63G-7-401(3)(b)] 63G-7-401(4)(b) through (d), that: 327 (i) states that the person intends to bring an action against the entity for a violation of 328 this section; 329 (ii) describes the government action that has burdened or will burden the person's free 330 exercise of religion; and 331 (iii) describes the manner in which the government action burdens or will burden the 332 person's free exercise of religion. 333 (b) Subsection (5)(a) does not apply if the government action alleged in the action: 334 (i) is ongoing, and complying with Subsection (5)(a) will place an undue hardship on - 10 - 02-09 21:55 2nd Sub. (Salmon) S.B. 169 335 the person or increase the harm suffered by the person; or 336 (ii) is likely to occur or reoccur before the end of the 60-day period described in 337 Subsection (5)(a). 338 (6) A person who prevails in an action to enforce the provisions of this section against a 339 government entity is entitled to recover reasonable attorney fees and costs. 340 Section 5. Section 63L-5-302 is amended to read: 341 63L-5-302 . Notice of claim -- Government's right to accommodate. 342 (1) A person may not bring an action under Section 63L-5-301 unless, 60 days before 343 bringing the action, the person sends written notice of the intent to bring an action. 344 (2) The notice shall be addressed to the government entity imposing the land use regulation, 345 and shall be prepared and delivered according to the requirements of Subsection [ 346 63G-7-401(3)] 63G-7-401(4). 347 (3) Mailing of the notice required by Subsection (1) tolls the limitation period for bringing 348 an action under this chapter for a period of 75 days, starting on the day the notice was 349 mailed. 350 (4) Notwithstanding Subsection (1), a person may bring an action under Section 63L-5-301 351 before the expiration of the 60-day notice period if: 352 (a) the imposition of a substantial burden on the person's free exercise of religion by the 353 land use regulation is imminent; and 354 (b) the person was not informed of and did not otherwise have knowledge of the land 355 use regulation in time to reasonably provide 60 days notice. 356 (5)(a) A government entity provided with the notice required by Subsection (2) may 357 remedy the substantial burden on the person's free exercise of religion: 358 (i) before the expiration of the 60-day notice period; or 359 (ii) in the case of an action properly brought according to Subsection (4), before the 360 adjudication of a court hearing on the action. 361 (b) Nothing in this section prevents a government entity from providing a remedy after 362 these time periods. 363 (6) The court may not award compensatory damages, attorney's fees, costs, or other 364 expenses to a person if the substantial burden has been cured by a remedy implemented 365 by the government entity according to Subsection (5)(a). 366 Section 6. Effective Date. 367 This bill takes effect on July 1, 2025. - 11 -