02-06 15:44 S.B. 241
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Limited Purpose Local Government Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor:
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LONG TITLE
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General Description:
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This bill modifies provisions affecting special districts.
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Highlighted Provisions:
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This bill:
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▸ defines terms and modifies definitions;
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▸ provides that a property owner special district may pledge all or a portion of revenue
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collected from an impact fee or other fee toward payment of a general obligation bond;
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▸ authorizes a basic special district to create a public infrastructure district;
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▸ authorizes a basic special district to fund:
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● the acquisition and construction of certain facilities; and
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● affordable housing projects;
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▸ modifies requirements for determining consent of surface property owners within a public
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infrastructure district;
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▸ modifies provisions related to the appointment or election of board members for a public
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infrastructure district;
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▸ modifies provisions related to the annexation of property to, or withdrawal of property
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from, a public infrastructure district;
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▸ provides that a public entity or private person may not receive funds from any portion of a
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public infrastructure district's property tax revenue without a resolution of the public
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infrastructure district's board authorizing the public entity or private person to receive
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the funds;
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▸ modifies the process for a public infrastructure district to issue a bond; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
S.B. 241 S.B. 241 02-06 15:44
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Utah Code Sections Affected:
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AMENDS:
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11-42-106, as last amended by Laws of Utah 2024, Chapter 388
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11-42a-102, as last amended by Laws of Utah 2024, Chapters 42, 53 and 438
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17B-1-304, as last amended by Laws of Utah 2023, Chapters 15, 435
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17B-1-1102, as last amended by Laws of Utah 2023, Chapter 15
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17D-4-102, as last amended by Laws of Utah 2024, Chapter 419
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17D-4-103, as last amended by Laws of Utah 2023, Chapter 15
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17D-4-201, as last amended by Laws of Utah 2023, Chapters 12, 15 and 259
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17D-4-202, as last amended by Laws of Utah 2021, Chapters 64, 415 and renumbered
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and amended by Laws of Utah 2021, Chapter 314
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17D-4-203, as last amended by Laws of Utah 2023, Chapters 15, 259
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17D-4-204, as last amended by Laws of Utah 2023, Chapter 15
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17D-4-301, as last amended by Laws of Utah 2023, Chapters 15, 139
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17D-4-302, as renumbered and amended by Laws of Utah 2021, Chapter 314
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17D-4-303, as renumbered and amended by Laws of Utah 2021, Chapter 314
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17D-4-305, as last amended by Laws of Utah 2024, Chapter 158
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67-1a-6.5, as last amended by Laws of Utah 2024, Chapter 388
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ENACTS:
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17B-1-1404, Utah Code Annotated 1953
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17D-4-104, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 11-42-106 is amended to read:
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11-42-106 . Action to contest assessment or proceeding -- Requirements --
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Exclusive remedy -- Bonds and assessment incontestable.
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(1) A person who contests an assessment or any proceeding to designate an assessment area
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or levy an assessment may commence a civil action against the local entity to:
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(a) set aside a proceeding to designate an assessment area; or
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(b) enjoin the levy or collection of an assessment.
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(2)(a) Each action under Subsection (1) shall be commenced in the district court with
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jurisdiction in the county in which the assessment area is located.
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(b)(i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
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not be commenced against and a summons relating to the action may not be
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served on the local entity more than 60 days after the effective date of the:
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(A) designation resolution or designation ordinance, if the challenge is to the
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designation of an assessment area;
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(B) assessment resolution or ordinance, if the challenge is to an assessment; or
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(C) amended resolution or ordinance, if the challenge is to an amendment.
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(ii) The period for commencing an action and serving a summons under Subsection
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(2)(b)(i) is 30 days if:
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(A) the designation resolution, assessment resolution, or amended resolution was
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adopted by a development authority, an infrastructure financing district under
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Title 17B, Chapter 2a, Part 13, Infrastructure Financing [Districts] District, or a
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public infrastructure district [created by a development authority ]under Title
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17D, Chapter 4, Public Infrastructure District Act; and
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(B) all owners of property within the assessment area or proposed assessment area
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consent in writing to the designation resolution, assessment resolution, or
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amended resolution.
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(3)(a) An action under Subsection (1) is the exclusive remedy of a person who:
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(i) claims an error or irregularity in an assessment or in any proceeding to designate
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an assessment area or levy an assessment; or
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(ii) challenges a bondholder's right to repayment.
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(b) A court may not hear any complaint under Subsection (1) that a person was
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authorized to make but did not make in a protest under Section 11-42-203 or at a
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hearing under Section 11-42-204.
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(c)(i) If a person has not brought a claim for which the person was previously
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authorized to bring but is otherwise barred from making under Subsection (2)(b),
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the claim may not be brought later because of an amendment to the resolution or
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ordinance unless the claim arises from the amendment itself.
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(ii) In an action brought pursuant to Subsection (1), a person may not contest a
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previous decision, proceeding, or determination for which the service deadline
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described in Subsection (2)(b) has expired by challenging a subsequent decision,
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proceeding, or determination.
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(4) An assessment or a proceeding to designate an assessment area or to levy an assessment
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may not be declared invalid or set aside in part or in whole because of an error or
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irregularity that does not go to the equity or justice of the proceeding or the assessment
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meeting the requirements of Section 11-42-409.
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(5) After the expiration of the period referred to in Subsection (2)(b):
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(a) assessment bonds and refunding assessment bonds issued or to be issued with respect
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to an assessment area and assessments levied on property in the assessment area
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become at that time incontestable against all persons who have not commenced an
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action and served a summons as provided in this section; and
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(b) a suit to enjoin the issuance or payment of assessment bonds or refunding assessment
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bonds, the levy, collection, or enforcement of an assessment, or to attack or question
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in any way the legality of assessment bonds, refunding assessment bonds, or an
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assessment may not be commenced, and a court may not inquire into those matters.
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(6)(a) This section may not be interpreted to insulate a local entity from a claim of
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misuse of assessment funds after the expiration of the period described in Subsection
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(2)(b).
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(b)(i) Except as provided in Subsection (6)(b)(ii), an action in the nature of
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mandamus is the sole form of relief available to a party challenging the misuse of
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assessment funds.
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(ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
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charges against or the prosecution of a party for the misuse of assessment funds.
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Section 2. Section 11-42a-102 is amended to read:
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11-42a-102 . Definitions.
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(1) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than the
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standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
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(2)(a) "Assessment" means the assessment that a local entity or the C-PACE district
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levies on private property under this chapter to cover the costs of an energy
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efficiency upgrade, a clean energy system, or an electric vehicle charging
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infrastructure.
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(b) "Assessment" does not constitute a property tax but shares the same priority lien as a
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property tax.
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(3) "Assessment fund" means a special fund that a local entity establishes under Section
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11-42a-206.
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(4) "Benefitted property" means private property within an energy assessment area that
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directly benefits from improvements.
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(5) "Bond" means an assessment bond and a refunding assessment bond.
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(6)(a) "Clean energy system" means an energy system that:
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(i) produces energy from clean resources, including:
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(A) a photovoltaic system;
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(B) a solar thermal system;
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(C) a wind system;
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(D) a geothermal system, including a generation system, a direct-use system, or a
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ground source heat pump system;
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(E) a micro-hydro system;
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(F) a biofuel system;
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(G) energy derived from nuclear fuel; or
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(H) any other clean source system that the governing body of the local entity
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approves; or
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(ii) stores energy, including:
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(A) a battery storage system; or
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(B) any other energy storing system that the governing body or chief executive
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officer of a local entity approves.
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(b) "Clean energy system" includes any improvement that relates physically or
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functionally to any of the products, systems, or devices listed in Subsection (6)(a)(i)
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or (ii).
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(c) "Clean energy system" does not include a system described in Subsection (6)(a)(i) if
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the system provides energy to property outside the energy assessment area, unless the
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system:
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(i)(A) existed before the creation of the energy assessment area; and
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(B) beginning before January 1, 2017, provides energy to property outside of the
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area that became the energy assessment area;
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(ii) provides energy to property outside the energy assessment area under an
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agreement with a public electrical utility that is substantially similar to agreements
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for other renewable energy systems that are not funded under this chapter; or
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(iii) is a biofuel system.
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(7)(a) "Commercial or industrial real property" means private real property used directly
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or indirectly or held for one of the following purposes or activities, regardless of
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whether the purpose or activity is for profit:
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(i) commercial;
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(ii) mining;
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(iii) agricultural;
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(iv) industrial;
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(v) manufacturing;
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(vi) trade;
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(vii) professional;
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(viii) a private or public club;
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(ix) a lodge;
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(x) a business; or
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(xi) a similar purpose.
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(b) "Commercial or industrial real property" includes:
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(i) private real property that is used as or held for dwelling purposes and contains:
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(A) more than four rental units; or
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(B) one or more owner-occupied or rental condominium units affiliated with a
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hotel; and
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(ii) real property owned by:
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(A) the military installation development authority, created in Section 63H-1-201;
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or
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(B) the Utah Inland Port Authority, created in Section 11-58-201.
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(8) "Contract price" means:
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(a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
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improvement, as determined by the owner of the property benefitting from the
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improvement; or
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(b) the amount payable to one or more contractors for the assessment, design,
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engineering, inspection, and construction of an improvement.
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(9) "C-PACE" means commercial property assessed clean energy.
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(10) "C-PACE district" means the statewide authority established in Section 11-42a-106 to
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implement the C-PACE Act in collaboration with governing bodies, under the direction
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of OED.
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(11) "Electric vehicle charging infrastructure" means equipment that is:
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(a) permanently affixed to commercial or industrial real property; and
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(b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
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plug-in hybrid vehicle.
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(12) "Energy assessment area" means an area:
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(a) within the jurisdictional boundaries of a local entity that approves an energy
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assessment area or, if the C-PACE district or a state interlocal entity levies the
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assessment, the C-PACE district or the state interlocal entity;
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(b) containing only the commercial or industrial real property of owners who have
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voluntarily consented to an assessment under this chapter for the purpose of
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financing the costs of improvements that benefit property within the energy
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assessment area; and
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(c) in which the proposed benefitted properties in the area are:
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(i) contiguous; or
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(ii) located on one or more contiguous or adjacent tracts of land that would be
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contiguous or adjacent property but for an intervening right-of-way, including a
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sidewalk, street, road, fixed guideway, or waterway.
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(13) "Energy assessment bond" means a bond:
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(a) issued under Section 11-42a-401; and
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(b) payable in part or in whole from assessments levied in an energy assessment area.
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(14) "Energy assessment lien" means a lien on property within an energy assessment area
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that arises from the levy of an assessment in accordance with Section 11-42a-301.
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(15) "Energy assessment ordinance" means an ordinance that a local entity adopts under
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Section 11-42a-201 that:
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(a) designates an energy assessment area;
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(b) levies an assessment on benefitted property within the energy assessment area; and
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(c) if applicable, authorizes the issuance of energy assessment bonds.
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(16) "Energy assessment resolution" means one or more resolutions adopted by a local
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entity under Section 11-42a-201 that:
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(a) designates an energy assessment area;
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(b) levies an assessment on benefitted property within the energy assessment area; and
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(c) if applicable, authorizes the issuance of energy assessment bonds.
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(17) "Energy efficiency upgrade" means an improvement that is:
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(a) permanently affixed to commercial or industrial real property; and
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(b) designed to reduce energy or water consumption, including:
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(i) insulation in:
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(A) a wall, roof, floor, or foundation; or
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(B) a heating and cooling distribution system;
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(ii) a window or door, including:
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(A) a storm window or door;
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(B) a multiglazed window or door;
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(C) a heat-absorbing window or door;
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(D) a heat-reflective glazed and coated window or door;
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(E) additional window or door glazing;
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(F) a window or door with reduced glass area; or
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(G) other window or door modifications;
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(iii) an automatic energy control system;
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(iv) in a building or a central plant, a heating, ventilation, or air conditioning and
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distribution system;
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(v) caulk or weatherstripping;
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(vi) a light fixture that does not increase the overall illumination of a building, unless
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an increase is necessary to conform with the applicable building code;
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(vii) an energy recovery system;
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(viii) a daylighting system;
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(ix) measures to reduce the consumption of water, through conservation or more
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efficient use of water, including installation of:
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(A) low-flow toilets and showerheads;
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(B) timer or timing systems for a hot water heater; or
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(C) rain catchment systems;
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(x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
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measure by the governing body or executive of a local entity;
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(xi) measures or other improvements to effect seismic upgrades;
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(xii) structures, measures, or other improvements to provide automated parking or
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parking that reduces land use;
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(xiii) the extension of an existing natural gas distribution company line;
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(xiv) an energy efficient elevator, escalator, or other vertical transport device;
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(xv) any other improvement that the governing body or executive of a local entity
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approves as an energy efficiency upgrade; or
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(xvi) any improvement that relates physically or functionally to any of the
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improvements listed in Subsections (17)(b)(i) through (xv).
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(18) "Energy system" means a product, system, device, or interacting group of devices that:
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(a) produces or stores energy; and
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(b) is permanently affixed to commercial or industrial real property not located in the
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certified service area of a distribution electrical cooperative, as defined in Section
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54-2-1.
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(19) "Governing body" means:
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(a) for a county, city, or town, the legislative body of the county, city, or town;
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(b) for a special district, the board of trustees of the special district;
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(c) for a special service district:
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(i) if no administrative control board has been appointed under Section 17D-1-301,
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the legislative body of the county, city, town, or metro township that established
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the special service district; or
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(ii) if an administrative control board has been appointed under Section 17D-1-301,
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the administrative control board of the special service district;
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(d) for a public infrastructure district, the board of the public infrastructure district;
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[(d)] (e) for the military installation development authority created in Section 63H-1-201,
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the board, as that term is defined in Section 63H-1-102; and
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[(e)] (f) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
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defined in Section 11-58-102.
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(20) "Improvement" means a publicly or privately owned energy efficiency upgrade, clean
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energy system, or electric vehicle charging infrastructure that:
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(a) a property owner has requested; or
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(b) has been or is being installed on a property for the benefit of the property owner.
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(21) "Incidental refunding costs" means any costs of issuing a refunding assessment bond
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and calling, retiring, or paying prior bonds, including:
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(a) legal and accounting fees;
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(b) charges of financial advisors, escrow agents, certified public accountant verification
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entities, and trustees;
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(c) underwriting discount costs, printing costs, and the costs of giving notice;
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(d) any premium necessary in the calling or retiring of prior bonds;
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(e) fees to be paid to the local entity to issue the refunding assessment bond and to
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refund the outstanding prior bonds;
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(f) any other costs that the governing body determines are necessary and proper to incur
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in connection with the issuance of a refunding assessment bond; and
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(g) any interest on the prior bonds that is required to be paid in connection with the
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issuance of the refunding assessment bond.
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(22) "Installment payment date" means the date on which an installment payment of an
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assessment is payable.
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(23) "Jurisdictional boundaries" means:
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(a) for the C-PACE district or any state interlocal entity, the boundaries of the state; and
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(b) for each local entity, the boundaries of the local entity.
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(24)(a) "Local entity" means:
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(i) a county, city, or town;
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(ii) a special service district, a special district, or an interlocal entity as that term is
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defined in Section 11-13-103;
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(iii) a public infrastructure district, created under Title 17D, Chapter 4, Public
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Infrastructure District Act;
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[(iii)] (iv) a state interlocal entity;
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[(iv)] (v) the military installation development authority, created in Section 63H-1-201;
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[(v)] (vi) the Utah Inland Port Authority, created in Section 11-58-201; or
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[(vi)] (vii) any political subdivision of the state.
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(b) "Local entity" includes the C-PACE district solely in connection with:
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(i) the designation of an energy assessment area;
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(ii) the levying of an assessment; and
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(iii) the assignment of an energy assessment lien to a third-party lender under Section
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11-42a-302.
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(25) "Local entity obligations" means energy assessment bonds and refunding assessment
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bonds that a local entity issues.
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(26) "OED" means the Office of Energy Development created in Section 79-6-401.
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(27) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
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(28) "Overhead costs" means the actual costs incurred or the estimated costs to be incurred
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in connection with an energy assessment area, including:
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(a) appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
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(b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
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(c) publishing and mailing costs;
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(d) costs of levying an assessment;
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(e) recording costs; and
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(f) all other incidental costs.
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(29) "Parameters resolution" means a resolution or ordinance that a local entity adopts in
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accordance with Section 11-42a-201.
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(30) "Prior bonds" means the energy assessment bonds refunded in part or in whole by a
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refunding assessment bond.
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(31) "Prior energy assessment ordinance" means the ordinance levying the assessments
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from which the prior bonds are payable.
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(32) "Prior energy assessment resolution" means the resolution levying the assessments
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from which the prior bonds are payable.
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(33) "Property" includes real property and any interest in real property, including water
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rights and leasehold rights.
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(34) "Public electrical utility" means a large-scale electric utility as that term is defined in
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Section 54-2-1.
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(35) "Qualifying electric vehicle" means a vehicle that:
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(a) meets air quality standards;
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(b) is not fueled by natural gas;
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(c) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
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and
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(d) is an OEM vehicle except that the vehicle is fueled by a fuel described in Subsection
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(35)(c).
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(36) "Qualifying plug-in hybrid vehicle" means a vehicle that:
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(a) meets air quality standards;
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(b) is not fueled by natural gas or propane;
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(c) has a battery capacity that meets or exceeds the battery capacity described in
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Subsection 30D(b)(3), Internal Revenue Code; and
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(d) is fueled by a combination of electricity and:
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(i) diesel fuel;
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(ii) gasoline; or
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(iii) a mixture of gasoline and ethanol.
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(37) "Reduced payment obligation" means the full obligation of an owner of property
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within an energy assessment area to pay an assessment levied on the property after the
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local entity has reduced the assessment because of the issuance of a refunding
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assessment bond, in accordance with Section 11-42a-403.
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(38) "Refunding assessment bond" means an assessment bond that a local entity issues
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under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
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(39) "Special district" means a special district under Title 17B, Limited Purpose Local
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Government Entities - Special Districts.
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(40) "Special service district" means the same as that term is defined in Section 17D-1-102.
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(41) "State interlocal entity" means:
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(a) an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
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more counties, cities, or towns that collectively represent at least a majority of the
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state's population; or
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(b) an entity that another state authorized, before January 1, 2017, to issue bonds, notes,
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or other obligations or refunding obligations to finance or refinance projects in the
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state.
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(42) "Third-party lender" means a trust company, savings bank, savings and loan
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association, bank, credit union, or any other entity that provides loans directly to
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property owners for improvements authorized under this chapter.
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Section 3. Section 17B-1-304 is amended to read:
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17B-1-304 . Appointment procedures for appointed members -- Notice of
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vacancy.
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(1) The appointing authority may, by resolution, appoint persons to serve as members of a
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special district board by following the procedures established by this section.
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(2)(a) In any calendar year when appointment of a new special district board member is
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required, the appointing authority shall prepare a notice of vacancy that contains:
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(i) the positions that are vacant that shall be filled by appointment;
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(ii) the qualifications required to be appointed to those positions;
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(iii) the procedures for appointment that the governing body will follow in making
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those appointments; and
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(iv) the person to be contacted and any deadlines that a person shall meet who wishes
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to be considered for appointment to those positions.
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(b) The appointing authority shall publish the notice of vacancy for the special district,
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as a class A notice under Section 63G-30-102, for at least one month before the
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deadline for accepting nominees for appointment.
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(c) The appointing authority may bill the special district for the cost of preparing,
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printing, and publishing the notice.
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(3)(a) After the appointing authority is notified of a vacancy and has satisfied the
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requirements described in Subsection (2), the appointing authority shall select a
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person to fill the vacancy from the applicants who meet the qualifications established
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by law.
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(b) The appointing authority shall:
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(i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the
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appointment;
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(ii) allow any interested persons to be heard; and
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(iii) adopt a resolution appointing a person to the special district board.
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(c) If no candidate for appointment to fill the vacancy receives a majority vote of the
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appointing authority, the appointing authority shall select the appointee from the two
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top candidates by lot.
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(4) Persons appointed to serve as members of the special district board serve four-year
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terms, but may be removed for cause at any time after a hearing by two-thirds vote of
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the appointing body.
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(5)(a) At the end of each board member's term, the position is considered vacant, and,
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after following the appointment procedures established in this section, the appointing
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authority may either reappoint the incumbent board member or appoint a new
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member.
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(b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a
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successor is elected or appointed and qualified in accordance with Subsection
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17B-1-303(2)(b).
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(6) Notwithstanding any other provision of this section, if the appointing authority appoints
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one of its own members and that member meets all applicable statutory board member
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qualifications, the appointing authority need not comply with Subsection (2) or (3).
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(7)(a) This section does not apply to the appointment of a member of a public
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infrastructure district board.
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(b) Section 17D-4-202 governs the appointment process for a member of the board of a
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public infrastructure district.
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Section 4. Section 17B-1-1102 is amended to read:
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17B-1-1102 . General obligation bonds.
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(1) Except as provided in Subsections (3) and (7), if a district intends to issue general
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obligation bonds, the district shall first obtain the approval of district voters for issuance
429
of the bonds at an election held for that purpose as provided in Title 11, Chapter 14,
430
Local Government Bonding Act.
431
(2) General obligation bonds shall be secured by a pledge of the full faith and credit of the
432
district, subject to, for a water conservancy district, the property tax levy limits of
433
Section 17B-2a-1006.
434
(3) A district may issue refunding general obligation bonds, as provided in Title 11,
435
Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
436
(4)(a) A special district may not issue general obligation bonds if the issuance of the
437
bonds will cause the outstanding principal amount of all of the district's general
438
obligation bonds to exceed the amount that results from multiplying the fair market
- 13 - S.B. 241 02-06 15:44
439
value of the taxable property within the district, as determined under Subsection
440
11-14-301(3)(b), by a number that is:
441
(i) .05, for a basic special district, except as provided in Subsection (7);
442
(ii) .004, for a cemetery maintenance district;
443
(iii) .002, for a drainage district;
444
(iv) .004, for a fire protection district;
445
(v) .024, for an improvement district;
446
(vi) .1, for an irrigation district;
447
(vii) .1, for a metropolitan water district;
448
(viii) .0004, for a mosquito abatement district;
449
(ix) .03, for a public transit district;
450
(x) .12, for a service area; or
451
(xi) .05 for a municipal services district.
452
(b) Bonds or other obligations of a special district that are not general obligation bonds
453
are not included in the limit stated in Subsection (4)(a).
454
(5) A district may not be considered to be a municipal corporation for purposes of the debt
455
limitation of the Utah Constitution, Article XIV, Section 4.
456
(6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13,
457
Interlocal Cooperation Act, may not be considered to be bonds of a special district that
458
participates in the agreement creating the administrative or legal entity.
459
(7)(a) As used in this Subsection (7), "property owner district" means a special district
460
whose board members are elected by property owners, as provided in Subsection
461
17B-1-1402(1)(b).
462
(b) A property owner district may issue a general obligation bond with the consent of:
463
(i) the owners of all property within the district; and
464
(ii) all registered voters, if any, within the boundary of the district.
465
(c) A property owner district may use proceeds from a bond issued under this Subsection
466
(7) to fund:
467
(i) the acquisition and construction of a system or improvement authorized in:
468
(A) the district's creation resolution; [and] or
469
(B) Part 14, Basic Special District; and
470
(ii) a connection outside the boundary of the district between systems or
471
improvements within the boundary of the district.
472
(d) The consent under Subsection (7)(b) is sufficient for any requirement necessary for
- 14 - 02-06 15:44 S.B. 241
473
the issuance of a general obligation bond.
474
(e) A general obligation bond issued under this Subsection (7):
475
(i) shall mature no later than 40 years after the date of issuance; and
476
(ii) is not subject to the limit under Subsection (4)(a)(i).
477
(f)(i) A property owner district may not issue a general obligation bond under this
478
Subsection (7) if the issuance will cause the outstanding principal amount of all
479
the district's general obligation bonds to exceed one-half of the market value of all
480
real property within the district.
481
(ii) Market value under Subsection (7)(f)(i) shall:
482
(A) be based on the value that the real property will have after all improvements
483
financed by the general obligation bonds are constructed; and
484
(B) be determined by appraisal by an appraiser who is a member of the Appraisal
485
Institute.
486
(g) With respect to a general obligation bond issued under this Subsection (7), the board
487
of a property owner district may approve or, by resolution, delegate to one or more
488
officers of the district, the authority to:
489
(i) approve the final interest rate, price, principal amount, maturity, redemption
490
features, and other terms of the bond;
491
(ii) approve and execute a document relating to the issuance of the bond; and
492
(iii) approve a contract, including a contract with a property owner within the district,
493
related to the acquisition and construction of an improvement, facility, or property
494
to be financed with proceeds from the bond.
495
(h)(i) A person may commence a lawsuit or other proceeding to contest the legality
496
of the issuance of a general obligation bond issued under this Subsection (7) or
497
any provision relating to the security or payment of the bond if the lawsuit or
498
other proceeding is commenced within 30 days after the publication of:
499
(A) the resolution authorizing the issuance of the general obligation bond; or
500
(B) a notice of the bond issuance containing substantially the items required under
501
Subsection 11-14-316(2).
502
(ii) Following the period described in Subsection (7)(h)(i), no person may bring a
503
lawsuit or other proceeding to contest for any reason the regularity, formality, or
504
legality of a general obligation bond issued under this Subsection (7).
505
(i)[(i)] A property owner district that charges and collects an impact fee or other fee
506
on real property [at the time the real property is sold may proportionally pay down
- 15 - S.B. 241 02-06 15:44
507
a general obligation bond issued under this Subsection (7) from the money
508
collected from the impact fee or other fee] may pledge all or a portion of the
509
revenue collected from the impact fee or other fee toward payment of a general
510
obligation bond issued under this Subsection (7).
511
[(ii) A property owner district that proportionally pays down a general obligation
512
bond under Subsection (7)(i)(i) shall reduce the property tax rate on the parcel of
513
real property on which the district charged and collected an impact fee or other
514
charge, to reflect the amount of outstanding principal of a general obligation bond
515
issued under this Subsection (7) that was paid down and is attributable to that
516
parcel.]
517
(j) If a property owner fails to pay a property tax that the property owner district imposes
518
in connection with a general obligation bond issued under this Subsection (7), the
519
district may impose a property tax penalty at an annual rate of .07, in addition to any
520
other penalty allowed by law.
521
Section 5. Section 17B-1-1404 is enacted to read:
522
17B-1-1404 . Basic special district authorized to create a public infrastructure
523
district -- Basic special district authorized to fund certain projects and services.
524
(1)(a) Subject to Subsection (2), a basic special district may create a public infrastructure
525
district, in accordance with Title 17D, Chapter 4, Public Infrastructure District Act,
526
for any area located within the boundaries of the basic special district.
527
(b) A basic special district that creates a public infrastructure district is the creating
528
entity for purposes of Title 17D, Chapter 4, Public Infrastructure District Act, and
529
shall receive any petitions required to be submitted to a creating entity.
530
(2) When a public infrastructure district is created pursuant to this section:
531
(a) the public infrastructure district shall have the same powers as the basic special
532
district that is the public infrastructure district's creating entity; and
533
(b) upon creation of the public infrastructure district, the area within the public
534
infrastructure district shall automatically be withdrawn from the basic special district
535
and shall no longer be part of the basic special district.
536
(3) In addition to the requirements of Section 17D-4-202, a basic special district shall
537
ensure that the governing document for a public infrastructure district created under this
538
section provides for the election of the initial and future boards of the public
539
infrastructure district using the same method as the election of the board of the basic
540
special district.
- 16 - 02-06 15:44 S.B. 241
541
(4) In addition to the other powers described in this part, a basic special district may:
542
(a) fund, in whole or in part, the acquisition and construction of a public facility for use
543
by one or more government entities;
544
(b) transfer the basic special district's ownership interest in a public facility to another
545
political subdivision pursuant to a written agreement between the basic special
546
district and the receiving political subdivision; and
547
(c) fund, in whole or in part, the acquisition or construction of:
548
(i) privately owned affordable housing, consisting of single-family dwellings or
549
townhomes;
550
(ii) facilities for recreation, community arts, or an amphitheater, whether those
551
facilities are publicly or privately owned; and
552
(iii) a privately owned grocery store, if there is not a grocery store located within the
553
basic special district's boundary.
554
Section 6. Section 17D-4-102 is amended to read:
555
17D-4-102 . Definitions.
556
As used in this chapter:
557
(1) "Board" means the board of trustees of a public infrastructure district.
558
(2) "Creating entity" means the county, municipality, basic special district, or development
559
authority that approves the creation of a public infrastructure district.
560
(3) "Development authority" means:
561
(a) the Utah Inland Port Authority created in Section 11-58-201;
562
(b) the Point of the Mountain State Land Authority created in Section 11-59-201;
563
(c) the Utah Fairpark Area Investment and Restoration District created in Section
564
11-70-201; or
565
(d) the military installation development authority created in Section 63H-1-201.
566
(4) "District applicant" means the person proposing the creation of a public infrastructure
567
district.
568
(5) "Division" means a division of a public infrastructure district:
569
(a) that is relatively equal in number of eligible voters or potential eligible voters to all
570
other divisions within the public infrastructure district, taking into account existing or
571
potential developments which, when completed, would increase or decrease the
572
population within the public infrastructure district; and
573
(b) which a member of the board represents.
574
(6) "Governing document" means the document governing a public infrastructure district to
- 17 - S.B. 241 02-06 15:44
575
which the creating entity agrees before the creation of the public infrastructure district,
576
as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
577
Provisions Applicable to All Special Districts, and this chapter.
578
(7)(a) "Limited tax bond" means a bond:
579
(i) that is directly payable from and secured by ad valorem property taxes that are
580
levied:
581
(A) by a public infrastructure district that issues the bond; and
582
(B) on taxable property within the district;
583
(ii) that is a general obligation of the public infrastructure district; and
584
(iii) for which the ad valorem property tax levy for repayment of the bond does not
585
exceed the property tax levy rate limit established under Section 17D-4-303 for
586
any fiscal year, except as provided in Subsection [17D-4-301(8)] 17D-4-301(13).
587
(b) "Limited tax bond" does not include:
588
(i) a short-term bond;
589
(ii) a tax and revenue anticipation bond; or
590
(iii) a special assessment bond.
591
(8)(a) "Municipal advisor" means a person that:
592
(i) advises a political subdivision on matters related to the issuance of bonds by
593
governmental entities, including the pricing, sales, and marketing of bonds and the
594
procuring of bond ratings, credit enhancement, and insurance with respect to
595
bonds;
596
(ii) is qualified to provide the advice described in Subsection (8)(a)(i);
597
(iii) is not an officer or employee of the political subdivision receiving advice;
598
(iv) has not been engaged to provide underwriting services in connection with a
599
transaction in which the person will provide advice to the political subdivision; and
600
(v) has experience doing business related to the issuance of bonds in the state.
601
(b) "Municipal advisor" may include:
602
(i) an individual who meets the description in Subsection (8)(a); or
603
(ii) a firm of individuals who collectively meet the description in Subsection (8)(a).
604
(9) "Public infrastructure and improvements" means:
605
(a) the same as that term is defined in Section 11-58-102, for a public infrastructure
606
district created by the Utah Inland Port Authority created in Section 11-58-201;
607
(b) the same as that term is defined in Section 11-70-101, for a public infrastructure
608
district created by the Utah Fairpark Area Investment and Restoration District created
- 18 - 02-06 15:44 S.B. 241
609
in Section 11-70-201;[ and]
610
(c) the same as that term is defined in Section 63H-1-102, for a public infrastructure
611
district created by the military installation development authority created in Section
612
63H-1-201[.] ; and
613
(d) for any public infrastructure district, infrastructure, utilities, improvements, facilities,
614
buildings, or remediation that:
615
(i) benefit the public and are owned by a public entity or a utility;
616
(ii) benefit the public and are publicly maintained or operated by a public entity; or
617
(iii) are privately owned and provide a substantial benefit, as determined by the board
618
of the public infrastructure district, to:
619
(A) the development and operation of the public infrastructure district; or
620
(B) the residents or property owners within the boundaries of the public
621
infrastructure district.
622
Section 7. Section 17D-4-103 is amended to read:
623
17D-4-103 . Provisions applicable to public infrastructure districts.
624
(1) A public infrastructure district:
625
(a) is a body corporate and politic with perpetual succession;
626
(b) is a quasi-municipal corporation;
627
(c) is a political subdivision of the state;
628
(d) is separate and distinct from, and independent of, any other public entity or political
629
subdivision of the state; and
630
(e) may sue and be sued.
631
(2) Each public infrastructure district is governed by and has the powers stated in:
632
(a) this chapter; and
633
(b) Title 17B, Chapter 1, Provisions Applicable to All Special Districts.
634
[(2)] (3) This chapter applies only to a public infrastructure district.
635
[(3)] (4) Except as modified or exempted by this chapter, a public infrastructure district is[,] :
636
(a) to the same extent as if the public infrastructure district were a special district,
637
subject to the provisions in:
638
[(a)] (i) Title 17B, Chapter 1, Provisions Applicable to All Special Districts; and
639
[(b)] (ii) Title 20A, Election Code[.] ; and
640
(b) subject to the provisions in Title 11, Chapter 42a, Commercial Property Assessed
641
Clean Energy Act.
642
[(4)] (5) If there is a conflict between a provision in Title 17B, Chapter 1, Provisions
- 19 - S.B. 241 02-06 15:44
643
Applicable to All Special Districts, and a provision in this chapter, the provision in this
644
chapter supersedes the conflicting provision in Title 17B, Chapter 1, Provisions
645
Applicable to All Special Districts.
646
[(5)] (6) The annexation of an unincorporated area by a municipality or the adjustment of a
647
boundary shared by more than one municipality does not affect the boundaries of a
648
public infrastructure district.
649
Section 8. Section 17D-4-104 is enacted to read:
650
17D-4-104 . Conditions where property owner consent is not required.
651
Any provision of this chapter requiring the consent or signatures of 100% of surface
652
property owners within an applicable area, the consent of any public entity, utility provider, or
653
owners' association that is a property owner within an applicable area is not required if the
654
public entity, utility provider, or owners' association ownership interest within the applicable
655
area is limited to:
656
(1) an easement;
657
(2) a right-of-way; or
658
(3) a public improvement, utility improvement, or related improvement.
659
Section 9. Section 17D-4-201 is amended to read:
660
17D-4-201 . Creation -- Annexation or withdrawal of property.
661
(1)(a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
662
provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions
663
Applicable to All Special Districts, a public infrastructure district may not be created
664
unless[:]
665
[(i) if there are any registered voters within the applicable area, a petition is filed with
666
the creating entity that contains the signatures of 100% of registered voters within
667
the applicable area approving the creation of the public infrastructure district; and]
668
[(ii)] a petition is filed with the creating entity that contains the signatures of 100%
669
of surface property owners within the applicable area consenting to the creation of
670
the public infrastructure district.
671
(b)(i) As used in this Subsection (1)(b):
672
(A) "Military [Land] land" means the same as that term is defined in Section
673
63H-1-102.
674
(B) "Project area" means the same as that term is defined in Section 63H-1-102.
675
(ii) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and
676
any other provision of this chapter, a development authority may adopt a
- 20 - 02-06 15:44 S.B. 241
677
resolution creating a public infrastructure district if all owners of surface property
678
proposed to be included within the public infrastructure district consent in writing
679
to the creation of the public infrastructure district.
680
(iii) For purposes of Subsection (1)(b)(ii), if the surface property proposed to be
681
included within the public infrastructure district includes military land that is
682
within a project area, the owner of the military land within the project area is the
683
lessee of the military land.
684
(iv) A public infrastructure district created under Subsection (1)(b)(ii) may be created
685
as a subsidiary of the development authority that adopts the resolution creating the
686
public infrastructure district.
687
(2)(a) The following do not apply to the creation of a public infrastructure district:
688
(i) Section 17B-1-203;
689
(ii) Section 17B-1-204;
690
(iii) Subsection 17B-1-208(2);
691
(iv) Section 17B-1-212; or
692
(v) Section 17B-1-214.
693
(b) The protest period described in Section 17B-1-213 may be waived in whole or in
694
part with the consent of[:]
695
[(i) 100% of registered voters within the applicable area approving the creation of the
696
public infrastructure district; and]
697
[(ii)] 100% of the surface property owners within the applicable area approving the
698
creation of the public infrastructure district.
699
(c) If the protest period is waived under Subsection (2)(b), a resolution approving the
700
creation of the public infrastructure district may be adopted in accordance with
701
Subsection 17B-1-213(5).
702
(d) A petition meeting the requirements of Subsection (1)[:]
703
[(i)] may be certified under Section 17B-1-209[; and] .
704
[(ii) shall be filed with the lieutenant governor in accordance with Subsection
705
17B-1-215(1)(b)(iii).]
706
(e) Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the
707
items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30
708
days of the day on which a resolution creating a public infrastructure district is
709
adopted.
710
(3)[(a)] Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
- 21 - S.B. 241 02-06 15:44
711
boundaries of a public infrastructure district may be annexed into the public
712
infrastructure district if the following requirements are met:
713
[(i)] (a)[(A)] (i) adoption of resolutions of the board and the creating entity, each
714
approving of the annexation; or
715
[(B)] (ii) adoption of a resolution of the board to annex the area, provided that the
716
governing document or creation resolution for the public infrastructure district
717
authorizes the board to annex an area outside of the boundaries of the public
718
infrastructure district without future consent of the creating entity; and
719
[(ii) if there are any registered voters within the area proposed to be annexed, a
720
petition is filed with the creating entity that contains the signatures of 100% of
721
registered voters within the area, demonstrating that the registered voters approve
722
of the annexation into the public infrastructure district; and]
723
[(iii)] (b) a petition is filed with the [creating entity] public infrastructure district that
724
contains the signatures of 100% of surface property owners within the area proposed
725
to be annexed, demonstrating the surface property owners' consent to the annexation
726
into the public infrastructure district.
727
[(b) Within 30 days of meeting the requirements of Subsection (3)(a), the board shall file
728
with the lieutenant governor:]
729
[(i) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5,
730
that meets the requirements of Subsection 67-1a-6.5(3); and]
731
[(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.]
732
(4)(a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be
733
withdrawn from a public infrastructure district if the following requirements are met:
734
(i)(A) adoption of resolutions of the board and the creating entity, each approving
735
of the withdrawal; or
736
(B) adoption of a resolution of the board to withdraw the property, provided that
737
the governing document or creation resolution for the public infrastructure
738
district authorizes the board to withdraw property from the public
739
infrastructure district without further consent from the creating entity; and
740
[(ii) if there are any registered voters within the area proposed to be withdrawn, a
741
petition is filed with the creating entity that contains the signatures of 100% of
742
registered voters within the area, demonstrating that the registered voters approve
743
of the withdrawal from the public infrastructure district; and]
744
[(iii)] (ii) a petition is filed with the [creating entity] public infrastructure district that
- 22 - 02-06 15:44 S.B. 241
745
contains the signatures of 100% of surface property owners within the area
746
proposed to be withdrawn, demonstrating that the surface property owners consent
747
to the withdrawal from the public infrastructure district.
748
(b) If any bonds that the public infrastructure district issues are allocable to the area to
749
be withdrawn remain unpaid at the time of the proposed withdrawal, the property
750
remains subject to any taxes, fees, or assessments that the public infrastructure
751
district imposes until the bonds or any associated refunding bonds are paid.
752
(c) Upon meeting the requirements of [Subsections] Subsection (3) or (4)(a)[ and (b)],
753
the board shall:
754
(i) [ ] within 30 days of the day on which a resolution is adopted or a petition is filed
755
under Subsection (3) or (4)(a), file with the lieutenant governor:
756
(A) a copy of a notice of impending boundary action, as defined in Section
757
67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
758
(B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5;
759
and
760
(ii) comply with the requirements of Section 17B-1-512, except:
761
(A) Subsections 17B-1-512(1)(b) and (c) do not apply; and
762
(B) the time periods described in this section govern.
763
(5) A creating entity may impose limitations on the powers of a public infrastructure district
764
through the governing document.
765
(6)(a) A public infrastructure district is separate and distinct from the creating entity.
766
(b)(i) Except as provided in Subsection (6)(b)(ii), any financial burden of a public
767
infrastructure district:
768
(A) is borne solely by the public infrastructure district; and
769
(B) is not borne by the creating entity, by the state, or by any municipality,
770
county, or other political subdivision.
771
(ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing
772
document may require:
773
(A) the district applicant to bear the initial costs of the public infrastructure
774
district; and
775
(B) the public infrastructure district to reimburse the district applicant for the
776
initial costs the creating entity bears.
777
(iii) Nothing in this Subsection (6) precludes a public infrastructure district from
778
qualifying directly for an impact fee offset, credit, or refund under Title 11,
- 23 - S.B. 241 02-06 15:44
779
Chapter 36a, Impact Fees Act, regarding any qualifying system improvements
780
financed by the public infrastructure district.
781
(c) Any liability, judgment, or claim against a public infrastructure district:
782
(i) is the sole responsibility of the public infrastructure district; and
783
(ii) does not constitute a liability, judgment, or claim against the creating entity, the
784
state, or any municipality, county, or other political subdivision.
785
(d)(i)(A) The public infrastructure district solely bears the responsibility of any
786
collection, enforcement, or foreclosure proceeding with regard to any [tax, ]fee[,]
787
or assessment the public infrastructure district imposes.
788
(B) The creating entity does not bear the responsibility described in Subsection
789
(6)(d)(i)(A).
790
(ii) A public infrastructure district, and not the creating entity, shall undertake the
791
enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in
792
accordance with [Title 59, Chapter 2, Property Tax Act, or ]Title 11, Chapter 42,
793
Assessment Area Act.
794
(7) A creating entity may establish criteria in determining whether to approve or disapprove
795
of the creation of a public infrastructure district, including:
796
(a) historical performance of the district applicant;
797
(b) compliance with the creating entity's master plan;
798
(c) credit worthiness of the district applicant;
799
(d) plan of finance of the public infrastructure district; and
800
(e) proposed development within the public infrastructure district.
801
(8)(a) The creation of a public infrastructure district is subject to the sole discretion of
802
the creating entity responsible for approving or rejecting the creation of the public
803
infrastructure district.
804
(b) The proposed creating entity bears no liability for rejecting the proposed creation of
805
a public infrastructure district.
806
Section 10. Section 17D-4-202 is amended to read:
807
17D-4-202 . Public infrastructure district board -- Governing document.
808
(1)(a) The legislative body or board of the creating entity shall appoint the initial
809
members of the board of a public infrastructure district, in accordance with the
810
governing document.
811
(b) A governing document approved by the legislative body or board of the creating
812
entity may provide for the board of a public infrastructure district to, upon a vacancy
- 24 - 02-06 15:44 S.B. 241
813
on the board, appoint an individual to the board so long as the individual meets the
814
requirements to serve on a public infrastructure district board described in this
815
section.
816
(c) For public infrastructure districts not described in Subsection (1)(b), and except as
817
provided in Subsection (1)(d):
818
(i) if there is a vacancy on the board of a public infrastructure district, or a board
819
member provides notice to the legislative body or board of the creating entity of
820
the board member's intention to resign from the board, the legislative body or
821
board of the creating entity shall appoint a replacement board member within 45
822
days from the day on which the vacancy first occurs or the board member
823
provides notice of the board member's intent to resign; and
824
(ii) if a legislative body or board of the creating entity fails to fill a vacancy on the
825
board within the time period described in Subsection (1)(c)(i), the board of the
826
public infrastructure district may appoint an individual who is eligible to serve on
827
the board according to the requirements of this section to fill the board vacancy.
828
(d) If a public infrastructure district board position has transitioned from appointment to
829
election, as described in Subsection (4), and an elected board position becomes
830
vacant, the provisions of Section 20A-1-512 apply to fill the vacancy.
831
(2)(a) Unless otherwise limited in the governing document and except as provided in
832
Subsection (2)(b), the initial term of each member of the board is four years.
833
(b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
834
board shall serve a six-year term so that, after the expiration of the initial term, the
835
term of approximately half the board members expires every two years.
836
(c) A board may elect that a majority of the board serve an initial term of six years.
837
(d) After the initial term, the term of each member of the board is four years.
838
(e) A member of the board who is appointed shall continue to serve on the board of the
839
public infrastructure district until a replacement board member is appointed.
840
(3)(a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to
841
be a resident within the boundaries of the public infrastructure district if:
842
(i) all of the surface property owners consent to the waiver of the residency
843
requirement;
844
(ii) there are no residents within the boundaries of the public infrastructure district;
845
(iii) no qualified candidate timely files to be considered for appointment to the board;
846
or
- 25 - S.B. 241 02-06 15:44
847
(iv) no qualified individual files a declaration of candidacy for a board position in
848
accordance with Subsection 17B-1-306(5).
849
(b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
850
residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board
851
member elected for a division or board position that has transitioned from an
852
appointed to an elected board member in accordance with this section.
853
(c) An individual who is not a resident within the boundaries of the public infrastructure
854
district may not serve as a board member unless the individual is:
855
(i) an owner of land or an agent or officer of the owner of land within the boundaries
856
of the public infrastructure district; and
857
(ii) a registered voter at the individual's primary residence.
858
(d) If the creating entity determines that a public infrastructure district is not anticipated
859
to have permanent residents within the public infrastructure district's boundaries, or is
860
anticipated to be primarily composed of non-residential property or non-primary
861
residential property, a governing document may allow the creating entity to continue
862
to appoint a property owner, or the agent of a property owner, to the public
863
infrastructure district board.
864
(e) A governing document may allow for a property owner to recommend a property
865
owner or a property owner's agent for appointment to the public infrastructure district
866
board in numbers proportional to the property owner's ownership of land, or value of
867
land, within a public infrastructure district.
868
(4)(a) A governing document may provide for a transition from legislative body
869
appointment under Subsection (1) to a method of election by registered voters based
870
upon milestones or events that the governing document identifies, including a
871
milestone for each division or individual board position providing that when the
872
milestone is reached:
873
(i) for a division, the registered voters of the division elect a member of the board in
874
place of an appointed member at the next municipal general election for the board
875
position; or
876
(ii) for an at large board position established in the governing document, the
877
registered voters of the public infrastructure district elect a member of the board in
878
place of an appointed member at the next municipal general election for the board
879
position.
880
(b) Regardless of whether a board member is elected under Subsection (4)(a), the
- 26 - 02-06 15:44 S.B. 241
881
position of each remaining board member shall continue to be appointed under
882
Subsection (1) until the member's respective division or board position surpasses the
883
density milestone described in the governing document.
884
(5)(a) Subject to Subsection (5)(c), the board may, in the board's discretion but no more
885
frequently than every four years, reestablish the boundaries of each division so that
886
each division that has reached a milestone specified in the governing document, as
887
described in Subsection (4)(a), has, as nearly as possible, the same number of eligible
888
voters.
889
(b) In reestablishing division boundaries under Subsection (5)(a), the board shall
890
consider existing or potential developments within the divisions that, when
891
completed, would increase or decrease the number of eligible voters within the
892
division.
893
(c) The governing document may prohibit the board from reestablishing, without the
894
consent of the creating entity, the division boundaries as described in Subsection
895
(5)(a).
896
(6) A public infrastructure district may not compensate a board member for the member's
897
service on the board under Section 17B-1-307 unless the board member is a resident
898
within the boundaries of the public infrastructure district.
899
(7) A governing document shall:
900
(a) include a boundary description and a map of the public infrastructure district;
901
(b) state the number of board members;
902
(c) describe any divisions of the public infrastructure district;
903
(d) establish any applicable property tax levy rate limit for the public infrastructure
904
district;
905
(e) establish any applicable limitation on the principal amount of indebtedness for the
906
public infrastructure district; and
907
(f) include other information that the public infrastructure district or the creating entity
908
determines to be necessary or advisable.
909
(8)(a) Except as provided in Subsection (8)(b), the board and the governing body of the
910
creating entity may amend a governing document by each adopting a resolution that
911
approves the amended governing document.
912
(b) Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy
913
rate limitation requires the consent of[:]
914
[(i)] 100% of surface property owners within the boundaries of the public
- 27 - S.B. 241 02-06 15:44
915
infrastructure district[; and] .
916
[(ii) 100% of the registered voters, if any, within the boundaries of the public
917
infrastructure district.]
918
(9) A board member is not in violation of Section 67-16-9 if the board member:
919
(a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
920
and files the disclosure with the creating entity:
921
(i) before any appointment or election; and
922
(ii) upon any significant change in the business relationship; and
923
(b) conducts the affairs of the public infrastructure district in accordance with this title
924
and any parameters described in the governing document.
925
(10) Notwithstanding any other provision of this section, the governing document governs
926
the number, appointment, and terms of board members of a public infrastructure district
927
created by the development authority.
928
Section 11. Section 17D-4-203 is amended to read:
929
17D-4-203 . Public infrastructure district powers.
930
A public infrastructure district:
931
(1) has all of the authority conferred upon a special district under Section 17B-1-103; and
932
(2) may:
933
(a) issue negotiable bonds to pay:
934
(i) all or part of the costs of acquiring, acquiring an interest in, improving, or
935
extending any of the improvements, facilities, or property allowed under Section
936
11-14-103;
937
(ii) capital costs of improvements in an energy assessment area, as defined in Section
938
11-42a-102, and other related costs, against the funds that the public infrastructure
939
district will receive because of an assessment in an energy assessment area[, as
940
defined in Section 11-42a-102];
941
(iii) public improvements related to the provision of housing;
942
(iv) capital costs related to public transportation;
943
(v) [for a public infrastructure district created by a development authority, ]the cost
944
of acquiring or financing public infrastructure and improvements; and
945
(vi) for a public infrastructure district that is a subsidiary of or created by the Utah
946
Inland Port Authority, the costs associated with a remediation project, as defined
947
in Section 11-58-102;
948
(b) enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal
- 28 - 02-06 15:44 S.B. 241
949
Cooperation Act, provided that the interlocal agreement may not expand the powers
950
of the public infrastructure district, within the limitations of Title 11, Chapter 13,
951
Interlocal Cooperation Act, without the consent of the creating entity;
952
(c) notwithstanding any other provision in code, acquire completed or partially
953
completed improvements, including related design and consulting services and
954
related work product, for fair market value as reasonably determined by:
955
(i) the board;
956
(ii) the creating entity, if required in the governing document; or
957
(iii) a surveyor or engineer that a public infrastructure district employs or engages to
958
perform the necessary engineering services for and to supervise the construction
959
or installation of the improvements;
960
(d) contract with the creating entity for the creating entity to provide administrative
961
services on behalf of the public infrastructure district, when agreed to by both parties,
962
in order to achieve cost savings and economic efficiencies, at the discretion of the
963
creating entity; [and]
964
(e) for a public infrastructure district created by a development authority:
965
(i)(A) operate and maintain public infrastructure and improvements the district
966
acquires or finances; and
967
(B) use fees, assessments, or taxes to pay for the operation and maintenance of
968
those public infrastructure and improvements; and
969
(ii) issue bonds under Title 11, Chapter 42, Assessment Area Act; and
970
(f) for a public infrastructure district that is a subsidiary of or created by the Utah Inland
971
Port Authority, pay for costs associated with a remediation project, as defined in
972
Section 11-58-102, of the Utah Inland Port Authority.
973
Section 12. Section 17D-4-204 is amended to read:
974
17D-4-204 . Relation to other local entities.
975
(1) Notwithstanding the creation of a public infrastructure district, the creating entity and
976
any other public entity, as applicable, retains all of the entity's authority over all zoning,
977
planning, design specifications and approvals, and permitting within the public
978
infrastructure district.
979
(2) The inclusion of property within the boundaries of a public infrastructure district does
980
not preclude the inclusion of the property within any other special district.
981
(3)(a) All infrastructure that is connected to another public entity's system:
982
(i) belongs to that public entity, regardless of inclusion within the boundaries of a
- 29 - S.B. 241 02-06 15:44
983
public infrastructure district, unless the public infrastructure district and the public
984
entity otherwise agree; and
985
(ii) shall comply with the design, inspection requirements, and other standards of the
986
public entity.
987
(b) A public infrastructure district shall convey or transfer the infrastructure described in
988
Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
989
cost to the public entity.
990
(4)(a) No public entity or private person shall receive funds from any portion of a public
991
infrastructure district's property tax revenue without a resolution of the public
992
infrastructure district's board authorizing the public entity or private person to receive
993
the funds.
994
(b) Subsection (4)(a) does not apply to the county's expenses related to collecting
995
property tax in accordance with Title 59, Chapter 2, Part 12, Property Tax Act.
996
(c) Subsection (4)(a) applies notwithstanding any provision in:
997
(i) Title 17C, Limited Purpose Local Government Entities - Community
998
Reinvestment Agency Act;
999
(ii) Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
1000
(iii) a statute governing a development authority created under Utah Constitution,
1001
Article XI; or
1002
(iv) a provision of code related to the collection, distribution, or sharing of tax
1003
increment, incremental property tax increases, or actions related to the collection,
1004
distribution, or sharing of tax increment or incremental property tax increases.
1005
Section 13. Section 17D-4-301 is amended to read:
1006
17D-4-301 . Public infrastructure district bonds.
1007
(1)(a) Subject to Subsection (1)(b), a public infrastructure district may issue negotiable
1008
bonds or other debt instruments for the purposes described in Section 17D-4-203, as
1009
provided in, as applicable:
1010
(i) Title 11, Chapter 14, Local Government Bonding Act;
1011
(ii) Title 11, Chapter 27, Utah Refunding Bond Act;
1012
(iii) Title 11, Chapter 42, Assessment Area Act;
1013
(iv) Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; and
1014
[(iv)] (v) this section.
1015
(b) A public infrastructure district created by a bonding political subdivision, as defined
1016
in Section 63C-25-101, may not issue bonds under this part unless the board first:
- 30 - 02-06 15:44 S.B. 241
1017
(i) adopts a parameters resolution for the bonds that sets forth:
1018
(A) the maximum:
1019
(I) amount of bonds;
1020
(II) term; and
1021
(III) interest rate; and
1022
(B) the expected security for the bonds; and
1023
(ii) submits the parameters resolution for review and recommendation to the State
1024
Finance Review Commission created in Section 63C-25-201.
1025
(2) A public infrastructure district bond[:]
1026
[(a)] shall mature within 40 years of the date of issuance[; and] .
1027
[(b) may not be secured by any improvement or facility paid for by the public
1028
infrastructure district.]
1029
(3)(a) A public infrastructure district may issue a limited tax bond, in the same manner
1030
as a general obligation bond:
1031
(i)(A) with the consent of 100% of surface property owners within the boundaries
1032
of the public infrastructure district; and[ 100%]
1033
(B) with the consent of a majority of the registered voters, if any, within the
1034
boundaries of the proposed public infrastructure district as of the day on which
1035
the board finds that the consent of a majority of registered voters has been
1036
obtained; or
1037
(ii) upon approval of a majority of the registered voters within the boundaries of the
1038
public infrastructure district voting in an election held for that purpose under Title
1039
11, Chapter 14, Local Government Bonding Act.
1040
(b) A limited tax bond described in Subsection (3)(a):
1041
(i) is not subject to the limitation on a general obligation bond described in
1042
Subsection 17B-1-1102(4); and
1043
(ii) is subject to a limitation, if any, on the principal amount of indebtedness as
1044
described in the governing document.
1045
(c) Unless limited tax bonds are initially purchased exclusively by one or more qualified
1046
institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, or an
1047
investment grade rating is obtained for the limited tax bonds by one or more
1048
nationally recognized rating agencies, the public infrastructure district may only issue
1049
limited tax bonds in denominations of not less than $500,000, and in integral
1050
multiples above $500,000 of not less than $1,000 each.
- 31 - S.B. 241 02-06 15:44
1051
(d)(i) Without any further election or consent of property owners or registered voters,
1052
a public infrastructure district may convert a limited tax bond described in
1053
Subsection (3)(a) to a general obligation bond if the principal amount of the
1054
related limited tax bond together with the principal amount of other related
1055
outstanding general obligation bonds of the public infrastructure district does not
1056
exceed 15% of the fair market value of taxable property in the public
1057
infrastructure district securing the general obligation bonds, determined by:
1058
(A) an appraisal from an appraiser who is a member of the Appraisal Institute that
1059
is addressed to the public infrastructure district or a financial institution; or
1060
(B) the most recent market value of the property from the assessor of the county in
1061
which the property is located.
1062
(ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
1063
sufficient to meet any statutory or constitutional election requirement necessary
1064
for the issuance of the limited tax bond and any general obligation bond to be
1065
issued in place of the limited tax bond upon meeting the requirements of this
1066
Subsection (3)(d).
1067
[(iii) A general obligation bond resulting from a conversion of a limited tax bond
1068
under this Subsection (3)(d) is not subject to the limitation on general obligation
1069
bonds described in Subsection 17B-1-1102(4)(a)(xii).]
1070
(e) A public infrastructure district that levies a property tax for payment of debt service
1071
on a limited tax bond issued under this section is not required to comply with the
1072
notice and hearing requirements of Section 59-2-919 unless the rate exceeds the rate
1073
established in:
1074
(i) Section 17D-4-303, except as provided in Subsection [(8)] (13);
1075
(ii) the governing document; or
1076
(iii) the documents relating to the issuance of the limited tax bond.
1077
(4)(a) For a public infrastructure district seeking the consent described in Subsection
1078
(3)(a)(i)(B), a public infrastructure district may:
1079
(i) post a class A notice under Section 63G-30-102 for at least 30 days; and
1080
(ii) mail a request for consent to each registered voter within the boundaries of the
1081
public infrastructure district according to voter registration records.
1082
(b) The request for consent described in Subsection (4)(a)(ii) shall include:
1083
(i) the purpose for the issuance of the bonds;
1084
(ii) the maximum principal amount of the bonds to be issued;
- 32 - 02-06 15:44 S.B. 241
1085
(iii) the maximum tax rate proposed to be pledged for the repayment of the bonds;
1086
(iv) the words "For the issuance of bonds" and "Against the issuance of bonds," with
1087
appropriate boxes in which the voter may indicate the voter's choice; and
1088
(v) a return address and phone number where additional information may be obtained
1089
from the public infrastructure district.
1090
(c) Any registered voter who does not return the request for consent within 30 days of
1091
the day they are mailed to the voter is considered:
1092
(i) non-participatory in the request for consent; and
1093
(ii) shall not be included in a calculation to determine the percentage of registered
1094
voters who consent to the issuance of bonds.
1095
(d) If a majority of the registered voters who return the request for consent under this
1096
Subsection (4) indicate "For the issuance of bonds," or if no registered voters return
1097
the request for consent within the time frame described in Subsection (4)(c), the
1098
requirement described in Subsection (3)(a)(i)(B) is met.
1099
(e) Nothing in this Subsection (4):
1100
(i) prevents a public infrastructure district from obtaining the consent of registered
1101
voters for the issuance of a bond through another method; or
1102
(ii) shall be interpreted to affect or otherwise interfere with any consents of registered
1103
voters obtained before May 7, 2025.
1104
(5) Nothing in this section shall be interpreted to:
1105
(a) prevent a public infrastructure district from withdrawing property from the public
1106
infrastructure district's boundaries where the property owners or registered voters
1107
associated with that property do not consent to the issuance of bonds or vote against
1108
the issuance of bonds; or
1109
(b) require a public infrastructure district to withdraw property from the public
1110
infrastructure district's boundaries where the property owners or registered voters
1111
associated with that property do not consent to the issuance of bonds or vote against
1112
the issuance of bonds.
1113
(6)(a) Beginning May 7, 2025, once consent or approval is obtained under Subsection
1114
(3)(a), the consent or approval is valid for a period of 10 years from the day on which
1115
the board:
1116
(i) adopts a resolution or ordinance finding that the consent or approval is obtained;
1117
and
1118
(ii) publishes a notice of the resolution or ordinance described in Subsection (6)(a)(i)
- 33 - S.B. 241 02-06 15:44
1119
as a class A notice under Section 63G-30-102 for at least 30 days.
1120
(b) The tolling provisions of Section 11-14-301 apply during the 10-year period
1121
described in Subsection (6)(a).
1122
(c) After a public infrastructure district obtains consent or approval under Subsection
1123
(3)(a), the public infrastructure district does not require any additional consent to or
1124
approval of the issuance of bonds, and the subsequent annexation of property to, or
1125
withdrawal of property from, the public infrastructure district does not impact:
1126
(i) the validity of already obtained consent or approval;
1127
(ii) the 10-year period described in Subsection (6)(a); or
1128
(iii) any bond issued, or to be issued, pursuant to the consent or approval that was
1129
obtained under Subsection (3)(a).
1130
(d) Subsection (6)(a) does not invalidate or alter any consent or approval, or finding of
1131
consent or approval, that occurred before May 7, 2025.
1132
(7)(a) [There ] Except as provided in Subsection (7)(b), there is no limitation on the
1133
duration of revenues that a public infrastructure district may receive to cover any
1134
shortfall in the payment of principal of and interest on a bond that the public
1135
infrastructure district issues.
1136
(b) A public infrastructure governing document or bond documents may limit the
1137
duration of time described in Subsection (7)(a).
1138
[(5)] (8) Section 11-42-106 governs any action to challenge an assessment imposed by a
1139
public infrastructure district or any proceeding to designate an assessment area
1140
conducted by a public infrastructure district.
1141
(9) A public infrastructure district is not a municipal corporation for purposes of the debt
1142
limitation of Utah Constitution, Article XIV, Section 4.
1143
[(6)] (10) [The ] Notwithstanding any other provision, the board may[,] directly, or by
1144
resolution[,] delegate to one or more officers of the public infrastructure district the
1145
authority to:
1146
(a) in accordance and within the parameters set forth in a resolution adopted in
1147
accordance with Section 11-14-302, approve the final interest rate, price, principal
1148
amount, maturity, redemption features, and other terms of the bond;
1149
(b) approve and execute any document or contract relating to the issuance of a bond; and
1150
(c) approve any contract related to the acquisition and construction of the improvements,
1151
facilities, or property to be financed with a bond.
1152
(11)(a) Subject to Subsection (11)(b), before a public infrastructure district may issue a
- 34 - 02-06 15:44 S.B. 241
1153
limited tax bond, the public infrastructure district shall engage a municipal advisor
1154
who, in connection with the issuance of bonds, shall deliver a certificate stating that:
1155
(i) the municipal advisor qualifies to serve as a municipal advisor, as defined in
1156
Section 17D-4-102, including the basis for the municipal advisor's qualifications;
1157
(ii) the structure of the limited tax bond the public infrastructure district is about to
1158
issue is a reasonable structure, as of the date of the issuance of the limited tax
1159
bond; and
1160
(iii) the interest rate of the limited tax bond the public infrastructure district is about
1161
to offer is a reasonable market rate, as of the date of the issuance of the limited tax
1162
bond.
1163
(b) The provisions of this Subsection (11) do not apply to a public infrastructure district
1164
created by a development authority.
1165
[(7)] (12)(a) Any person may contest the legality of the issuance of a public
1166
infrastructure district bond or any provisions for the security and payment of the bond
1167
for a period of 30 days after:
1168
(i) [publication of ] posting the resolution authorizing the bond as a class A notice
1169
under Section 63G-30-102; or
1170
(ii) [publication of ] posting a notice of bond containing substantially the items
1171
required under Subsection 11-14-316(2) as a class A notice under Section
1172
63G-30-102.
1173
(b) After the 30-day period described in Subsection [(7)(a)] (12)(a), no person may bring
1174
a lawsuit or other proceeding contesting the regularity, formality, or legality of the
1175
bond for any reason.
1176
[(8)] (13)(a) In the event of any statutory change in the methodology of assessment or
1177
collection of property taxes in a manner that reduces the amounts which are devoted
1178
or pledged to the repayment of limited tax bonds, a public infrastructure district may
1179
charge a rate sufficient to receive the amount of property taxes or assessment the
1180
public infrastructure district would have received before the statutory change in order
1181
to pay the debt service on outstanding limited tax bonds.
1182
(b) The rate increase described in Subsection [(8)(a)] (13)(a) may exceed the limit
1183
described in Section 17D-4-303.
1184
(c) The public infrastructure district may charge the rate increase described in
1185
Subsection [(8)(a)] (13)(a) until the bonds, including any associated refunding bonds,
1186
or other securities, together with applicable interest, are fully met and discharged.
- 35 - S.B. 241 02-06 15:44
1187
[(9)] (14) No later than 60 days after the closing of any bonds by a public infrastructure
1188
district created by a bonding political subdivision, as defined in Section 63C-25-101, the
1189
public infrastructure district shall report the bond issuance, including the amount of the
1190
bonds, terms, interest rate, and security, to:
1191
(a) the Executive Appropriations Committee; and
1192
(b) the State Finance Review Commission created in Section 63C-25-201.
1193
Section 14. Section 17D-4-302 is amended to read:
1194
17D-4-302 . Fees.
1195
(1) [A] In addition to any fees authorized by Title 17B, Chapter 1, Provisions Applicable
1196
to All Special Districts, a public infrastructure district may charge a fee [or other charge ]
1197
for an administrative service that the public infrastructure district provides, to pay some
1198
or all of the public infrastructure district's:
1199
[(1)] (a) costs of acquiring, improving, or extending improvements, facilities, or
1200
property; or
1201
[(2)] (b) costs associated with the enforcement of a legal remedy.
1202
(2) The board of a public infrastructure district shall establish fees by a fee schedule in
1203
ordinance or resolution.
1204
Section 15. Section 17D-4-303 is amended to read:
1205
17D-4-303 . Limits on public infrastructure district property tax levy -- Notice
1206
requirements.
1207
(1) The property tax levy of a public infrastructure district, for all purposes, including
1208
payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable
1209
value of taxable property in the district.
1210
(2) The limitation described in Subsection (1) does not apply to the levy by the public
1211
infrastructure district to pay principal of and interest on a general obligation bond that
1212
the public infrastructure district issues.
1213
(3)(a) Within 30 days after the day on which the lieutenant governor issues a certificate
1214
of incorporation for the public infrastructure district under Section 67-1a-6.5, the
1215
board shall record a notice with the recorder of the county in which property within
1216
the public infrastructure district is located.
1217
(b) The notice described in Subsection (3)(a) shall:
1218
(i) contain a description of the boundaries of the public infrastructure district;
1219
(ii) state that a copy of the governing document is on file at the office of the creating
1220
entity;
- 36 - 02-06 15:44 S.B. 241
1221
(iii) state that the public infrastructure district may finance and repay infrastructure
1222
and other improvements through the levy of a property tax; and
1223
(iv) state the maximum rate that the public infrastructure district may levy.
1224
(c) The effective date of the public infrastructure district for purposes of assessing
1225
property tax is the day on which the notice is recorded in the office of the recorder of
1226
each county in which the public infrastructure district is located, as described in
1227
Section 59-2-305.5.
1228
(4) If the board fails to record a notice as described in Subsection (3):
1229
(a) the public infrastructure district is still created as of the day the lieutenant governor
1230
issues a certificate of incorporation for the public infrastructure district;
1231
(b) any bonds issued by the public infrastructure district are still valid; and
1232
(c) the public infrastructure district may not levy a tax or levy or collect a fee until the
1233
board records the notice described in Subsection (3).
1234
Section 16. Section 17D-4-305 is amended to read:
1235
17D-4-305 . Action to contest tax, fee, or proceeding -- Requirements -- Exclusive
1236
remedy -- Bonds, taxes, and fees incontestable.
1237
(1) A person who contests a tax or fee imposed by a public infrastructure district or any
1238
proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring
1239
a civil action against the public infrastructure district or the creating entity to:
1240
(a) set aside the proceeding; or
1241
(b) enjoin the levy, imposition, or collection of a tax or fee.
1242
(2) The person bringing an action described in Subsection (1):
1243
(a) notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, shall bring the
1244
action in the county in which the public infrastructure district is located if the person
1245
brings the action in the district court; and
1246
(b) may not bring the action against or serve a summons relating to the action on the
1247
public infrastructure district more than 30 days after the [effective date of the] day on
1248
which:
1249
(i) the creation of the public infrastructure district is effective, if the challenge is to
1250
the creation of the public infrastructure district;[ or]
1251
(ii) the board of the public infrastructure district adopts a resolution or ordinance
1252
establishing a tax or fee, if the challenge is to a tax or fee[.] ; or
1253
(iii) the board of the public infrastructure district adopts a resolution or ordinance
1254
annexing property to, or withdrawing property from, the public infrastructure
- 37 - S.B. 241 02-06 15:44
1255
district, if the challenge is to an annexation or withdrawal.
1256
(3) An action under Subsection (1) is the exclusive remedy of a person who:
1257
(a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
1258
infrastructure district, levy a tax, or impose a fee; or
1259
(b) challenges a bondholder's right to repayment.
1260
(4) After the expiration of the 30-day period described in Subsection (2)(b):
1261
(a) a bond issued or to be issued with respect to a public infrastructure district and any
1262
tax levied or fee imposed becomes incontestable against any person who has not
1263
brought an action and served a summons in accordance with this section;
1264
(b) a person may not bring a suit to:
1265
(i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
1266
enforcement of a tax or fee; or
1267
(ii) attack or question in any way the legality of a bond, tax, or fee; and
1268
(c) a court may not inquire into the matters described in Subsection (4)(b).
1269
(5)(a) This section does not insulate a public infrastructure district from a claim of
1270
misuse of funds after the expiration of the 30-day period described in Subsection
1271
(2)(b).
1272
(b)(i) Except as provided in Subsection (5)(b)(ii), an action in the nature of
1273
mandamus is the sole form of relief available to a party challenging the misuse of
1274
funds.
1275
(ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
1276
charges against or the prosecution of a party for the misuse of funds.
1277
(6) If there is a conflict between a provision in Section 17D-4-301 and a provision in this
1278
section, the provision in Section 17D-4-301 supersedes the conflicting provision in this
1279
section.
1280
Section 17. Section 67-1a-6.5 is amended to read:
1281
67-1a-6.5 . Certification of local entity boundary actions -- Definitions -- Notice
1282
requirements -- Electronic copies -- Filing.
1283
(1) As used in this section[:]
1284
(a) "Applicable certificate" means:
1285
(i) for the impending incorporation of a city, town, special district, conservation
1286
district, [or ]incorporation of a special district from a reorganized special service
1287
district, or public infrastructure district, a certificate of incorporation;
1288
(ii) for the impending creation of a county, school district, special service district,
- 38 - 02-06 15:44 S.B. 241
1289
community reinvestment agency, or interlocal entity, a certificate of creation;
1290
(iii) for the impending annexation of territory to an existing local entity, a certificate
1291
of annexation;
1292
(iv) for the impending withdrawal or disconnection of territory from an existing local
1293
entity, a certificate of withdrawal or disconnection, respectively;
1294
(v) for the impending consolidation of multiple local entities, a certificate of
1295
consolidation;
1296
(vi) for the impending division of a local entity into multiple local entities, a
1297
certificate of division;
1298
(vii) for the impending adjustment of a common boundary between local entities, a
1299
certificate of boundary adjustment; and
1300
(viii) for the impending dissolution of a local entity, a certificate of dissolution.
1301
(b) "Approved final local entity plat" means a final local entity plat, as defined in
1302
Section 17-23-20, that has been approved under Section 17-23-20 as a final local
1303
entity plat by the county surveyor.
1304
(c) "Approving authority" has the same meaning as defined in Section 17-23-20.
1305
(d) "Boundary action" has the same meaning as defined in Section 17-23-20.
1306
(e) "Center" means the Utah Geospatial Resource Center created under Section
1307
63A-16-505.
1308
(f) "Community reinvestment agency" has the same meaning as defined in Section
1309
17C-1-102.
1310
(g) "Conservation district" has the same meaning as defined in Section 17D-3-102.
1311
(h) "Interlocal entity" has the same meaning as defined in Section 11-13-103.
1312
(i) "Local entity" means a county, city, town, school district, special district, community
1313
reinvestment agency, special service district, conservation district, or interlocal entity.
1314
(j) "Notice of an impending boundary action" means a written notice, as described in
1315
Subsection (3), that provides notice of an impending boundary action.
1316
(k) "Special district" means the same as that term is defined in Section 17B-1-102.
1317
(l) "Special service district" means the same as that term is defined in Section 17D-1-102.
1318
(2) Within 10 days after receiving a notice of an impending boundary action, the lieutenant
1319
governor shall:
1320
(a)(i) issue the applicable certificate, if:
1321
(A) the lieutenant governor determines that the notice of an impending boundary
1322
action meets the requirements of Subsection (3); and
- 39 - S.B. 241 02-06 15:44
1323
(B) except in the case of an impending local entity dissolution, the notice of an
1324
impending boundary action is accompanied by an approved final local entity
1325
plat;
1326
(ii) send the applicable certificate to the local entity's approving authority;
1327
(iii) return the original of the approved final local entity plat to the local entity's
1328
approving authority;
1329
(iv) send a copy of the applicable certificate and approved final local entity plat to:
1330
(A) the State Tax Commission;
1331
(B) the center; and
1332
(C) the county assessor, county surveyor, county auditor, and county attorney of
1333
each county in which the property depicted on the approved final local entity
1334
plat is located; and
1335
(v) send a copy of the applicable certificate to the state auditor, if the boundary action
1336
that is the subject of the applicable certificate is:
1337
(A) the incorporation or creation of a new local entity;
1338
(B) the consolidation of multiple local entities;
1339
(C) the division of a local entity into multiple local entities; or
1340
(D) the dissolution of a local entity; or
1341
(b)(i) send written notification to the approving authority that the lieutenant governor
1342
is unable to issue the applicable certificate, if:
1343
(A) the lieutenant governor determines that the notice of an impending boundary
1344
action does not meet the requirements of Subsection (3); or
1345
(B) the notice of an impending boundary action is:
1346
(I) not accompanied by an approved final local entity plat; or
1347
(II) accompanied by a plat or final local entity plat that has not been approved
1348
as a final local entity plat by the county surveyor under Section 17-23-20;
1349
and
1350
(ii) explain in the notification under Subsection (2)(b)(i) why the lieutenant governor
1351
is unable to issue the applicable certificate.
1352
(3) Each notice of an impending boundary action shall:
1353
(a) be directed to the lieutenant governor;
1354
(b) contain the name of the local entity or, in the case of an incorporation or creation,
1355
future local entity, whose boundary is affected or established by the boundary action;
1356
(c) describe the type of boundary action for which an applicable certificate is sought;
- 40 - 02-06 15:44 S.B. 241
1357
(d) be accompanied by a letter from the Utah State Retirement Office, created under
1358
Section 49-11-201, to the approving authority that identifies the potential provisions
1359
under Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity
1360
shall comply with, related to the boundary action, if the boundary action is an
1361
impending incorporation or creation of a local entity that may result in the
1362
employment of personnel; and
1363
(e)(i) contain a statement, signed and verified by the approving authority, certifying
1364
that all requirements applicable to the boundary action have been met; or
1365
(ii) in the case of the dissolution of a municipality, be accompanied by a certified
1366
copy of the court order approving the dissolution of the municipality.
1367
(4) The lieutenant governor may require the approving authority to submit a paper or
1368
electronic copy of a notice of an impending boundary action and approved final local
1369
entity plat in conjunction with the filing of the original of those documents.
1370
(5)(a) The lieutenant governor shall:
1371
(i) keep, index, maintain, and make available to the public each notice of an
1372
impending boundary action, approved final local entity plat, applicable certificate,
1373
and other document that the lieutenant governor receives or generates under this
1374
section;
1375
(ii) make a copy of each document listed in Subsection (5)(a)(i) available on the
1376
Internet for 12 months after the lieutenant governor receives or generates the
1377
document;
1378
(iii) furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any
1379
person who requests a paper copy; and
1380
(iv) furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to
1381
any person who requests a certified copy.
1382
(b) The lieutenant governor may charge a reasonable fee for a paper copy or certified
1383
copy of a document that the lieutenant governor provides under this Subsection (5).
1384
(6) The lieutenant governor's issuance of a certificate of creation for an infrastructure
1385
financing district constitutes the state's approval of the creation of the infrastructure
1386
financing district.
1387
Section 18. Effective Date.
1388
This bill takes effect:
1389
(1) except as provided in Subsection (2), May 7, 2025; or
1390
(2) if approved by two-thirds of all members elected to each house:
- 41 - S.B. 241 02-06 15:44
1391
(a) upon approval by the governor;
1392
(b) without the governor's signature, the day following the constitutional time limit of
1393
Utah Constitution, Article VII, Section 8; or
1394
(c) in the case of a veto, the date of veto override.
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