Utah Senate Bill SB0241 Enrolled / Bill

                    Enrolled Copy	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: Paul A. Cutler
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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: S.B. 241	Enrolled Copy
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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11-42-106 (Effective  upon governor's approval), as last amended by Laws of Utah 2024,
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Chapter 388
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11-42-408 (Effective  upon governor's approval), as last amended by Laws of Utah 2017,
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Chapter 470
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11-42a-102 (Effective  upon governor's approval), as last amended by Laws of Utah
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2024, Chapters 42, 53 and 438
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17B-1-304 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapters 15, 435
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17B-1-1102 (Effective  upon governor's approval), as last amended by Laws of Utah
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2023, Chapter 15
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17D-4-102 (Effective  upon governor's approval), as last amended by Laws of Utah 2024,
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Chapter 419
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17D-4-103 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapter 15
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17D-4-201 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapters 12, 15 and 259
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17D-4-202 (Effective  upon governor's approval), as last amended by Laws of Utah 2021,
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Chapters 64, 415 and renumbered and amended by Laws of Utah 2021, Chapter 314
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17D-4-203 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapters 15, 259
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17D-4-204 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapter 15
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17D-4-301 (Effective  upon governor's approval), as last amended by Laws of Utah 2023,
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Chapters 15, 139
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17D-4-302 (Effective  upon governor's approval), as renumbered and amended by Laws
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of Utah 2021, Chapter 314
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17D-4-303 (Effective  upon governor's approval), as renumbered and amended by Laws
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of Utah 2021, Chapter 314
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17D-4-305 (Effective  upon governor's approval), as last amended by Laws of Utah 2024,
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Chapter 158
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67-1a-6.5 (Effective  upon governor's approval), as last amended by Laws of Utah 2024,
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Chapter 388
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ENACTS:
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17B-1-1404 (Effective  upon governor's approval), Utah Code Annotated 1953
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17D-4-104 (Effective  upon governor's approval), 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  (Effective  upon governor's approval). Action to contest assessment or
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proceeding -- Requirements -- 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 11-42-408 is amended to read:
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11-42-408  (Effective  upon governor's approval). Assessment against government
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land prohibited -- Exception.
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(1)(a) Except as provided in Subsection (2), a local entity may not levy an assessment
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against property owned by the federal government or a public agency, even if the
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property benefits from the improvement.
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(b) Notwithstanding Subsection (1)(a), a public agency may contract with a local entity:
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(i) for the local entity to provide an improvement to property owned by the public
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agency; and
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(ii) to pay for the improvement provided by the local entity.
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(c) Nothing in this section may be construed to prevent a local entity from imposing on
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and collecting from a public agency, or a public agency from paying, a reasonable
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charge for a service rendered or material supplied by the local entity to the public
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agency, including a charge for water, sewer, or lighting service.
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(2) Notwithstanding Subsection (1):
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(a)(i) a local entity may continue to levy and enforce an assessment against property
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acquired by a public agency within an assessment area if the acquisition occurred
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after the assessment area was designated; and
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[(b)] (ii) property that is subject to an assessment lien at the time it is acquired by a
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public agency continues to be subject to the lien and to enforcement of the lien if
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the assessment and interest on the assessment are not paid when due[.] ; or
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(b) a local entity may levy and enforce an assessment against property owned by the
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federal government or a public agency if the federal government or public agency, as
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applicable, consents in writing to the local entity levying the assessment.
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Section 3.  Section 11-42a-102 is amended to read:
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11-42a-102  (Effective  upon governor's approval). 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 4.  Section 17B-1-304 is amended to read:
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17B-1-304  (Effective  upon governor's approval). Appointment procedures for
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appointed members -- Notice of 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.
431 
(b) The appointing authority shall publish the notice of vacancy for the special district,
432 
as a class A notice under Section 63G-30-102, for at least one month before the
433 
deadline for accepting nominees for appointment.
434 
(c) The appointing authority may bill the special district for the cost of preparing,
435 
printing, and publishing the notice.
- 13 - S.B. 241	Enrolled Copy
436 
(3)(a) After the appointing authority is notified of a vacancy and has satisfied the
437 
requirements described in Subsection (2), the appointing authority shall select a
438 
person to fill the vacancy from the applicants who meet the qualifications established
439 
by law.
440 
(b) The appointing authority shall:
441 
(i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the
442 
appointment;
443 
(ii) allow any interested persons to be heard; and
444 
(iii) adopt a resolution appointing a person to the special district board.
445 
(c) If no candidate for appointment to fill the vacancy receives a majority vote of the
446 
appointing authority, the appointing authority shall select the appointee from the two
447 
top candidates by lot.
448 
(4) Persons appointed to serve as members of the special district board serve four-year
449 
terms, but may be removed for cause at any time after a hearing by two-thirds vote of
450 
the appointing body.
451 
(5)(a) At the end of each board member's term, the position is considered vacant, and,
452 
after following the appointment procedures established in this section, the appointing
453 
authority may either reappoint the incumbent board member or appoint a new
454 
member.
455 
(b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a
456 
successor is elected or appointed and qualified in accordance with Subsection
457 
17B-1-303(2)(b).
458 
(6) Notwithstanding any other provision of this section, if the appointing authority appoints
459 
one of its own members and that member meets all applicable statutory board member
460 
qualifications, the appointing authority need not comply with Subsection (2) or (3).
461 
(7)(a) This section does not apply to the appointment of a member of a public
462 
infrastructure district board.
463 
(b) Section 17D-4-202 governs the appointment process for a member of the board of a
464 
public infrastructure district.
465 
Section 5.  Section 17B-1-1102 is amended to read:
466 
17B-1-1102  (Effective  upon governor's approval). General obligation bonds.
467 
(1) Except as provided in Subsections (3) and (7), if a district intends to issue general
468 
obligation bonds, the district shall first obtain the approval of district voters for issuance
469 
of the bonds at an election held for that purpose as provided in Title 11, Chapter 14,
- 14 - Enrolled Copy	S.B. 241
470 
Local Government Bonding Act.
471 
(2) General obligation bonds shall be secured by a pledge of the full faith and credit of the
472 
district, subject to,  for a water conservancy district, the property tax levy limits of
473 
Section 17B-2a-1006.
474 
(3) A district may issue refunding general obligation bonds, as provided in Title 11,
475 
Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
476 
(4)(a) A special district may not issue general obligation bonds if the issuance of the
477 
bonds will cause the outstanding principal amount of all of the district's general
478 
obligation bonds to exceed the amount that results from multiplying the fair market
479 
value of the taxable property within the district, as determined under Subsection
480 
11-14-301(3)(b), by a number that is:
481 
(i) .05, for a basic special district, except as provided in Subsection (7);
482 
(ii) .004, for a cemetery maintenance district;
483 
(iii) .002, for a drainage district;
484 
(iv) .004, for a fire protection district;
485 
(v) .024, for an improvement district;
486 
(vi) .1, for an irrigation district;
487 
(vii) .1, for a metropolitan water district;
488 
(viii) .0004, for a mosquito abatement district;
489 
(ix) .03, for a public transit district;
490 
(x) .12, for a service area; or
491 
(xi) .05 for a municipal services district.
492 
(b) Bonds or other obligations of a special district that are not general obligation bonds
493 
are not included in the limit stated in Subsection (4)(a).
494 
(5) A district may not be considered to be a municipal corporation for purposes of the debt
495 
limitation of the Utah Constitution, Article XIV, Section 4.
496 
(6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13,
497 
Interlocal Cooperation Act, may not be considered to be bonds of a special district that
498 
participates in the agreement creating the administrative or legal entity.
499 
(7)(a) As used in this Subsection (7), "property owner district" means a special district
500 
whose board members are elected by property owners, as provided in Subsection
501 
17B-1-1402(1)(b).
502 
(b) A property owner district may issue a general obligation bond with the consent of:
503 
(i) the owners of all property within the district; and
- 15 - S.B. 241	Enrolled Copy
504 
(ii) all registered voters, if any, within the boundary of the district.
505 
(c) A property owner district may use proceeds from a bond issued under this Subsection
506 
(7) to fund:
507 
(i) the acquisition and construction of a system or improvement authorized in:
508 
(A) the district's creation resolution; [and] or
509 
(B) Part 14, Basic Special District; and
510 
(ii) a connection outside the boundary of the district between systems or
511 
improvements within the boundary of the district.
512 
(d)(i) The consent under Subsection (7)(b) is sufficient for any requirement necessary
513 
for the issuance of a general obligation bond.
514 
(ii) Beginning on the effective date of this bill, once consent is obtained under
515 
Subsection (7)(b), the consent is valid for a period of 10 years.
516 
(e) A general obligation bond issued under this Subsection (7):
517 
(i) shall mature no later than 40 years after the date of issuance; and
518 
(ii) is not subject to the limit under Subsection (4)(a)(i).
519 
(f)(i) A property owner district may not issue a general obligation bond under this
520 
Subsection (7) if the issuance will cause the outstanding principal amount of all
521 
the district's general obligation bonds to exceed one-half of the market value of all
522 
real property within the district.
523 
(ii) Market value under Subsection (7)(f)(i) shall:
524 
(A) be based on the value that the real property will have after all improvements
525 
financed by the general obligation bonds are constructed; and
526 
(B) be determined by appraisal by an appraiser who is a member of the Appraisal
527 
Institute.
528 
(g) With respect to a general obligation bond issued under this Subsection (7), the board
529 
of a property owner district may approve or, by resolution, delegate to one or more
530 
officers of the district, the authority to:
531 
(i) approve the final interest rate, price, principal amount, maturity, redemption
532 
features, and other terms of the bond;
533 
(ii) approve and execute a document relating to the issuance of the bond; and
534 
(iii) approve a contract, including a contract with a property owner within the district,
535 
related to the acquisition and construction of an improvement, facility, or property
536 
to be financed with proceeds from the bond.
537 
(h)(i) A person may commence a lawsuit or other proceeding to contest the legality
- 16 - Enrolled Copy	S.B. 241
538 
of the issuance of a general obligation bond issued under this Subsection (7) or
539 
any provision relating to the security or payment of the bond if the lawsuit or
540 
other proceeding is commenced within 30 days after the publication of:
541 
(A) the resolution authorizing the issuance of the general obligation bond; or
542 
(B) a notice of the bond issuance containing substantially the items required under
543 
Subsection 11-14-316(2).
544 
(ii) Following the period described in Subsection (7)(h)(i), no person may bring a
545 
lawsuit or other proceeding to contest for any reason the regularity, formality, or
546 
legality of a general obligation bond issued under this Subsection (7).
547 
(i)[(i)] A property owner district that charges and collects an impact fee or other fee
548 
on real property [at the time the real property is sold may proportionally pay down
549 
a general obligation bond issued under this Subsection (7) from the money
550 
collected from the impact fee or other fee] may pledge all or a portion of the
551 
revenue collected from the impact fee or other fee toward payment of a general
552 
obligation bond issued under this Subsection (7).
553 
[(ii) A property owner district that proportionally pays down a general obligation
554 
bond under Subsection (7)(i)(i) shall reduce the property tax rate on the parcel of
555 
real property on which the district charged and collected an impact fee or other
556 
charge, to reflect the amount of outstanding principal of a general obligation bond
557 
issued under this Subsection (7) that was paid down and is attributable to that
558 
parcel.]
559 
(j) If a property owner fails to pay a property tax that the property owner district imposes
560 
in connection with a general obligation bond issued under this Subsection (7), the
561 
district may impose a property tax penalty at an annual rate of .07, in addition to any
562 
other penalty allowed by law.
563 
Section 6.  Section 17B-1-1404 is enacted to read:
564 
17B-1-1404  (Effective  upon governor's approval). Basic special district
565 
authorized to create a public infrastructure district -- Basic special district authorized to
566 
fund certain projects and services.
567 
(1)(a) As used in this section, "eligible basic special district" means a basic special
568 
district:
569 
(i) created before April 15, 2011;
570 
(ii) that issued limited general obligation bonds in 2024; and
571 
(iii) for which there was not one or more public infrastructure districts within the
- 17 - S.B. 241	Enrolled Copy
572 
boundaries of the basic special district as of January 1, 2025.
573 
(2)(a) Subject to Subsection (3), an eligible basic special district may create a public
574 
infrastructure district, in accordance with Title 17D, Chapter 4, Public Infrastructure
575 
District Act, for any area located within the boundaries of the eligible basic special
576 
district.
577 
(b) An eligible basic special district that creates a public infrastructure district is the
578 
creating entity for purposes of Title 17D, Chapter 4, Public Infrastructure District Act,
579 
and shall receive any petitions required to be submitted to a creating entity.
580 
(3) When a public infrastructure district is created pursuant to this section:
581 
(a) the public infrastructure district shall have the same powers as the eligible basic
582 
special district that is the public infrastructure district's creating entity; and
583 
(b) upon creation of the public infrastructure district, the area within the public
584 
infrastructure district shall automatically be withdrawn from the eligible basic special
585 
district and shall no longer be part of the eligible basic special district.
586 
(4) In addition to the requirements of Section 17D-4-202, an eligible basic special district
587 
shall ensure that the governing document for a public infrastructure district created
588 
under this section provides for the election of the initial and future boards of the public
589 
infrastructure district using the same method as the election of the board of the eligible
590 
basic special district.
591 
(5) In addition to the other powers described in this part, an eligible basic special district
592 
may:
593 
(a) fund, in whole or in part, the acquisition and construction of a public facility for use
594 
by one or more government entities;
595 
(b) transfer the eligible basic special district's ownership interest in a public facility to
596 
another political subdivision pursuant to a written agreement between the eligible
597 
basic special district and the receiving political subdivision; and
598 
(c) fund, in whole or in part, the acquisition or construction of:
599 
(i) privately owned affordable housing, consisting of single-family dwellings or
600 
townhomes;
601 
(ii) facilities for health care, recreation, community arts, or an amphitheater, whether
602 
those facilities are publicly or privately owned; and
603 
(iii) a privately owned grocery store, if there is not a grocery store located within the
604 
eligible basic special district's boundary.
605 
Section 7.  Section 17D-4-102 is amended to read:
- 18 - Enrolled Copy	S.B. 241
606 
17D-4-102  (Effective  upon governor's approval). Definitions.
607 
      As used in this chapter:
608 
(1) "Board" means the board of trustees of a public infrastructure district.
609 
(2) "Creating entity" means the county, municipality, basic special district, or development
610 
authority that approves the creation of a public infrastructure district.
611 
(3) "Development authority" means:
612 
(a) the Utah Inland Port Authority created in Section 11-58-201;
613 
(b) the Point of the Mountain State Land Authority created in Section 11-59-201;
614 
(c) the Utah Fairpark Area Investment and Restoration District created in Section
615 
11-70-201; or
616 
(d) the military installation development authority created in Section 63H-1-201.
617 
(4) "District applicant" means the person proposing the creation of a public infrastructure
618 
district.
619 
(5) "Division" means a division of a public infrastructure district:
620 
(a) that is relatively equal in number of eligible voters or potential eligible voters to all
621 
other divisions within the public infrastructure district, taking into account existing or
622 
potential developments which, when completed, would increase or decrease the
623 
population within the public infrastructure district; and
624 
(b) which a member of the board represents.
625 
(6) "Governing document" means the document governing a public infrastructure district to
626 
which the creating entity agrees before the creation of the public infrastructure district,
627 
as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
628 
Provisions Applicable to All Special Districts, and this chapter.
629 
(7)(a) "Limited tax bond" means a bond:
630 
(i) that is directly payable from and secured by ad valorem property taxes that are
631 
levied:
632 
(A) by a public infrastructure district that issues the bond; and
633 
(B) on taxable property within the district;
634 
(ii) that is a general obligation of the public infrastructure district; and
635 
(iii) for which the ad valorem property tax levy for repayment of the bond does not
636 
exceed the property tax levy rate limit established under Section 17D-4-303 for
637 
any fiscal year, except as provided in Subsection [17D-4-301(8)] 17D-4-301(13).
638 
(b) "Limited tax bond" does not include:
639 
(i) a short-term bond;
- 19 - S.B. 241	Enrolled Copy
640 
(ii) a tax and revenue anticipation bond; or
641 
(iii) a special assessment bond.
642 
(8)(a) "Municipal advisor" means a person that:
643 
(i) advises a political subdivision on matters related to the issuance of bonds by
644 
governmental entities, including the pricing, sales, and marketing of bonds and the
645 
procuring of bond ratings, credit enhancement, and insurance with respect to
646 
bonds;
647 
(ii) is qualified to provide the advice described in Subsection (8)(a)(i);
648 
(iii) is not an officer or employee of the political subdivision receiving advice;
649 
(iv) has not been engaged to provide underwriting services in connection with a
650 
transaction in which the person will provide advice to the political subdivision; and
651 
(v) has experience doing business related to the issuance of bonds in the state.
652 
(b) "Municipal advisor" may include:
653 
(i) an individual who meets the description in Subsection (8)(a); or
654 
(ii) a firm of individuals who collectively meet the description in Subsection (8)(a).
655 
(9)(a) "Public infrastructure and improvements" means:
656 
(i) infrastructure, utilities, improvements, facilities, buildings, or remediation that:
657 
(A) benefit the public and are owned by a public entity or a public or private
658 
utility;
659 
(B) benefit the public and are publicly maintained or operated by a public entity; or
660 
(C) are privately owned and are expressly permitted to be acquired or financed by
661 
the public infrastructure district's governing document or an agreement
662 
between the public infrastructure district and the public infrastructure district's
663 
creating entity; and
664 
(ii) publicly or privately owned roads, rights-of-way, trails, parking, or parking
665 
structures.
666 
(b) "Public infrastructure and improvements" also means:
667 
[(a)] (i) the same as that term is defined in Section 11-58-102, for a public
668 
infrastructure district created by the Utah Inland Port Authority created in Section
669 
11-58-201;
670 
[(b)] (ii) the same as that term is defined in Section 11-70-101, for a public
671 
infrastructure district created by the Utah Fairpark Area Investment and
672 
Restoration District created in Section 11-70-201; [and]
673 
[(c)] (iii) the same as that term is defined in Section 63H-1-102, for a public
- 20 - Enrolled Copy	S.B. 241
674 
infrastructure district created by the military installation development authority
675 
created in Section 63H-1-201[.] ;
676 
(iv) for any public infrastructure district created by a development authority, any
677 
infrastructure, utilities, improvements, facilities, buildings, or remediation that are
678 
privately owned and benefit the public; and
679 
(v) for a public infrastructure district to which tax increment revenue is pledged or
680 
distributed, any publicly or privately owned infrastructure, utilities,
681 
improvements, facilities, buildings, or remediation that is a permitted use of the
682 
tax increment revenue.
683 
(10)(a) "Tax increment revenue" means the difference between the tax revenue
684 
generated from or within a specific area and the revenue that would be generated if a
685 
base taxable value were used.
686 
(b) "Tax increment revenue" includes any concept substantially the same as the
687 
definition in Subsection (10)(a), regardless of the name of the concept.
688 
Section 8.  Section 17D-4-103 is amended to read:
689 
17D-4-103  (Effective  upon governor's approval). Provisions applicable to public
690 
infrastructure districts.
691 
(1) A public infrastructure district:
692 
(a) is a body corporate and politic with perpetual succession;
693 
(b) is a quasi-municipal corporation;
694 
(c) is a political subdivision of the state;
695 
(d) is separate and distinct from, and independent of, any other public entity or political
696 
subdivision of the state; and
697 
(e) may sue and be sued.
698 
(2) Each public infrastructure district is governed by and has the powers stated in:
699 
(a) this chapter; and
700 
(b) Title 17B, Chapter 1, Provisions Applicable to All Special Districts.
701 
[(2)] (3) This chapter applies only to a public infrastructure district.
702 
[(3)] (4) Except as modified or exempted by this chapter, a public infrastructure district is[,] :
703 
(a) to the same extent as if the public infrastructure district were a special district,
704 
subject to the provisions in:
705 
[(a)] (i) Title 17B, Chapter 1, Provisions Applicable to All Special Districts; and
706 
[(b)] (ii) Title 20A, Election Code[.] ; and
707 
(b) subject to the provisions in Title 11, Chapter 42a, Commercial Property Assessed
- 21 - S.B. 241	Enrolled Copy
708 
Clean Energy Act.
709 
[(4)] (5) If there is a conflict between a provision in Title 17B, Chapter 1, Provisions
710 
Applicable to All Special Districts, and a provision in this chapter, the provision in this
711 
chapter supersedes the conflicting provision in Title 17B, Chapter 1, Provisions
712 
Applicable to All Special Districts.
713 
[(5)] (6) The annexation of an unincorporated area by a municipality or the adjustment of a
714 
boundary shared by more than one municipality does not affect the boundaries of a
715 
public infrastructure district.
716 
Section 9.  Section 17D-4-104 is enacted to read:
717 
17D-4-104  (Effective  upon governor's approval). Conditions where property
718 
owner consent is not required.
719 
      Any provision of this chapter requiring the consent or signatures of 100% of surface
720 
property owners within an applicable area, the consent of any public entity, utility provider, or
721 
owners' association that is a property owner within an applicable area is not required if the
722 
public entity, utility provider, or owners' association ownership interest within the applicable
723 
area is limited to:
724 
(1) an easement;
725 
(2) a right-of-way; or
726 
(3) a public improvement, utility improvement, or related improvement.
727 
Section 10.  Section 17D-4-201 is amended to read:
728 
17D-4-201  (Effective  upon governor's approval). Creation -- Annexation or
729 
withdrawal of property.
730 
(1)(a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
731 
provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions
732 
Applicable to All Special Districts, a public infrastructure district may not be created
733 
unless[:]
734 
[(i) if there are any registered voters within the applicable area, a petition is filed with
735 
the creating entity that contains the signatures of 100% of registered voters within
736 
the applicable area approving the creation of the public infrastructure district; and]
737 
[(ii)]   a petition is filed with the creating entity that contains the signatures of 100%
738 
of surface property owners within the applicable area consenting to the creation of
739 
the public infrastructure district.
740 
(b)(i) As used in this Subsection (1)(b):
741 
(A) "Military [Land] land" means the same as that term is defined in Section
- 22 - Enrolled Copy	S.B. 241
742 
63H-1-102.
743 
(B) "Project area" means the same as that term is defined in Section 63H-1-102.
744 
(ii) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and
745 
any other provision of this chapter, a development authority may adopt a
746 
resolution creating a public infrastructure district if all owners of surface property
747 
proposed to be included within the public infrastructure district consent in writing
748 
to the creation of the public infrastructure district.
749 
(iii) For purposes of Subsection (1)(b)(ii), if the surface property proposed to be
750 
included within the public infrastructure district includes military land that is
751 
within a project area, the owner of the military land within the project area is the
752 
lessee of the military land.
753 
(iv) A public infrastructure district created under Subsection (1)(b)(ii) may be created
754 
as a subsidiary of the development authority that adopts the resolution creating the
755 
public infrastructure district.
756 
(2)(a) The following do not apply to the creation of a public infrastructure district:
757 
(i) Section 17B-1-203;
758 
(ii) Section 17B-1-204;
759 
(iii) Subsection 17B-1-208(2);
760 
(iv) Section 17B-1-212; or
761 
(v) Section 17B-1-214.
762 
(b) The protest period described in Section 17B-1-213 may be waived in whole or in
763 
part with the consent of[:]
764 
[(i) 100% of registered voters within the applicable area approving the creation of the
765 
public infrastructure district; and]
766 
[(ii)]   100% of the surface property owners within the applicable area approving the
767 
creation of the public infrastructure district.
768 
(c) If the protest period is waived under Subsection (2)(b), a resolution approving the
769 
creation of the public infrastructure district may be adopted in accordance with
770 
Subsection 17B-1-213(5).
771 
(d) A petition meeting the requirements of Subsection (1)[:]
772 
[(i)]   may be certified under Section 17B-1-209[; and] .
773 
[(ii) shall be filed with the lieutenant governor in accordance with Subsection
774 
17B-1-215(1)(b)(iii).]
775 
(e) Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the
- 23 - S.B. 241	Enrolled Copy
776 
items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30
777 
days of the day on which a resolution creating a public infrastructure district is
778 
adopted.
779 
(3)[(a)] Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
780 
boundaries of a public infrastructure district may be annexed into the public
781 
infrastructure district if the following requirements are met:
782 
[(i)] (a)[(A)] (i) adoption of resolutions of the board and the creating entity, each
783 
approving of the annexation; or
784 
[(B)] (ii) adoption of a resolution of the board to annex the area, provided that the
785 
governing document or creation resolution for the public infrastructure district
786 
authorizes the board to annex an area outside of the boundaries of the public
787 
infrastructure district without future consent of the creating entity; and
788 
[(ii) if there are any registered voters within the area proposed to be annexed, a
789 
petition is filed with the creating entity that contains the signatures of 100% of
790 
registered voters within the area, demonstrating that the registered voters approve
791 
of the annexation into the public infrastructure district; and]
792 
[(iii)] (b) a petition is filed with the [creating entity] public infrastructure district that
793 
contains the signatures of 100% of surface property owners within the area proposed
794 
to be annexed, demonstrating the surface property owners' consent to the annexation
795 
into the public infrastructure district.
796 
[(b) Within 30 days of meeting the requirements of Subsection (3)(a), the board shall file
797 
with the lieutenant governor:]
798 
[(i) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5,
799 
that meets the requirements of Subsection 67-1a-6.5(3); and]
800 
[(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.]
801 
(4)(a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be
802 
withdrawn from a public infrastructure district if the following requirements are met:
803 
(i)(A) adoption of resolutions of the board and the creating entity, each approving
804 
of the withdrawal; or
805 
(B) adoption of a resolution of the board to withdraw the property, provided that
806 
the governing document or creation resolution for the public infrastructure
807 
district authorizes the board to withdraw property from the public
808 
infrastructure district without further consent from the creating entity; and
809 
[(ii) if there are any registered voters within the area proposed to be withdrawn, a
- 24 - Enrolled Copy	S.B. 241
810 
petition is filed with the creating entity that contains the signatures of 100% of
811 
registered voters within the area, demonstrating that the registered voters approve
812 
of the withdrawal from the public infrastructure district; and]
813 
[(iii)] (ii) a petition is filed with the [creating entity] public infrastructure district that
814 
contains the signatures of 100% of surface property owners within the area
815 
proposed to be withdrawn, demonstrating that the surface property owners consent
816 
to the withdrawal from the public infrastructure district.
817 
(b) If any bonds that the public infrastructure district issues are allocable to the area to
818 
be withdrawn remain unpaid at the time of the proposed withdrawal, the property
819 
remains subject to any taxes, fees, or assessments that the public infrastructure
820 
district imposes until the bonds or any associated refunding bonds are paid.
821 
(c) Upon meeting the requirements of [Subsections] Subsection (3) or (4)(a)[ and (b)],
822 
the board shall:
823 
(i) [ ] within 30 days of the day on which a resolution is adopted or a petition is filed
824 
under Subsection (3) or (4)(a), file with the lieutenant governor:
825 
(A) a copy of a notice of impending boundary action, as defined in Section
826 
67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
827 
(B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5;
828 
and
829 
(ii) comply with the requirements of Section 17B-1-512, except:
830 
(A) Subsections 17B-1-512(1)(b) and (c) do not apply; and
831 
(B) [.] the time periods described in this section govern.
832 
(5) A creating entity may impose limitations on the powers of a public infrastructure district
833 
through the governing document.
834 
(6)(a) A public infrastructure district is separate and distinct from the creating entity.
835 
(b)(i) Except as provided in Subsection (6)(b)(ii), any financial burden of a public
836 
infrastructure district:
837 
(A) is borne solely by the public infrastructure district; and
838 
(B) is not borne by the creating entity, by the state, or by any municipality,
839 
county, or other political subdivision.
840 
(ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing
841 
document may require:
842 
(A) the district applicant to bear the initial costs of the public infrastructure
843 
district; and
- 25 - S.B. 241	Enrolled Copy
844 
(B) the public infrastructure district to reimburse the district applicant for the
845 
initial costs the creating entity bears.
846 
(iii) Nothing in this Subsection (6) precludes a public infrastructure district from
847 
qualifying directly for an impact fee offset, credit, or refund under Title 11,
848 
Chapter 36a, Impact Fees Act, regarding any qualifying system improvements
849 
financed by the public infrastructure district.
850 
(c) Any liability, judgment, or claim against a public infrastructure district:
851 
(i) is the sole responsibility of the public infrastructure district; and
852 
(ii) does not constitute a liability, judgment, or claim against the creating entity, the
853 
state, or any municipality, county, or other political subdivision.
854 
(d)(i)(A) The public infrastructure district solely bears the responsibility of any
855 
collection, enforcement, or foreclosure proceeding with regard to any [tax, ]fee[,]
856 
or assessment the public infrastructure district imposes.
857 
(B) The creating entity does not bear the responsibility described in Subsection
858 
(6)(d)(i)(A).
859 
(ii) A public infrastructure district, and not the creating entity, shall undertake the
860 
enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in
861 
accordance with [Title 59, Chapter 2, Property Tax Act, or ]Title 11, Chapter 42,
862 
Assessment Area Act.
863 
(7) A creating entity may establish criteria in determining whether to approve or disapprove
864 
of the creation of a public infrastructure district, including:
865 
(a) historical performance of the district applicant;
866 
(b) compliance with the creating entity's master plan;
867 
(c) credit worthiness of the district applicant;
868 
(d) plan of finance of the public infrastructure district; and
869 
(e) proposed development within the public infrastructure district.
870 
(8)(a) The creation of a public infrastructure district is subject to the sole discretion of
871 
the creating entity responsible for approving or rejecting the creation of the public
872 
infrastructure district.
873 
(b) The proposed creating entity bears no liability for rejecting the proposed creation of
874 
a public infrastructure district.
875 
Section 11.  Section 17D-4-202 is amended to read:
876 
17D-4-202  (Effective  upon governor's approval). Public infrastructure district
877 
board -- Governing document.
- 26 - Enrolled Copy	S.B. 241
878 
(1)(a) The legislative body or board of the creating entity shall appoint the initial
879 
members of the board of a public infrastructure district, in accordance with the
880 
governing document.
881 
(b) A governing document approved by the legislative body or board of the creating
882 
entity may provide for the board of a public infrastructure district to, upon a vacancy
883 
on the board, appoint an individual to the board so long as the individual meets the
884 
requirements to serve on a public infrastructure district board described in this
885 
section.
886 
(c) For public infrastructure districts not described in Subsection (1)(b), and except as
887 
provided in Subsection (1)(d):
888 
(i) if there is a vacancy on the board of a public infrastructure district, or a board
889 
member provides notice to the legislative body or board of the creating entity of
890 
the board member's intention to resign from the board, the legislative body or
891 
board of the creating entity shall appoint a replacement board member within 45
892 
days from the day on which the vacancy first occurs or the board member
893 
provides notice of the board member's intent to resign; and
894 
(ii) if a legislative body or board of the creating entity fails to fill a vacancy on the
895 
board within the time period described in Subsection (1)(c)(i), the board of the
896 
public infrastructure district may appoint an individual who is eligible to serve on
897 
the board according to the requirements of this section to fill the board vacancy.
898 
(d) If a public infrastructure district board position has transitioned from appointment to
899 
election, as described in Subsection (4), and an elected board position becomes
900 
vacant, the provisions of Section 20A-1-512 apply to fill the vacancy.
901 
(2)(a) Unless otherwise limited in the governing document and except as provided in
902 
Subsection (2)(b), the initial term of each member of the board is four years.
903 
(b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
904 
board shall serve a six-year term so that, after the expiration of the initial term, the
905 
term of approximately half the board members expires every two years.
906 
(c) A board may elect that a majority of the board serve an initial term of six years.
907 
(d) After the initial term, the term of each member of the board is four years.
908 
(e) A member of the board who is appointed shall continue to serve on the board of the
909 
public infrastructure district until a replacement board member is appointed.
910 
(3)(a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to
911 
be a resident within the boundaries of the public infrastructure district if:
- 27 - S.B. 241	Enrolled Copy
912 
(i) all of the surface property owners consent to the waiver of the residency
913 
requirement;
914 
(ii) there are no residents within the boundaries of the public infrastructure district;
915 
(iii) no qualified candidate timely files to be considered for appointment to the board;
916 
or
917 
(iv) no qualified individual files a declaration of candidacy for a board position in
918 
accordance with Subsection 17B-1-306(5).
919 
(b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
920 
residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board
921 
member elected for a division or board position that has transitioned from an
922 
appointed to an elected board member in accordance with this section.
923 
(c) An individual who is not a resident within the boundaries of the public infrastructure
924 
district may not serve as a board member unless the individual is:
925 
(i) an owner of land or an agent or officer of the owner of land within the boundaries
926 
of the public infrastructure district; and
927 
(ii) a registered voter at the individual's primary residence.
928 
(d) If the creating entity determines that a public infrastructure district is not anticipated
929 
to have permanent residents within the public infrastructure district's boundaries, or is
930 
anticipated to be primarily composed of non-residential property or non-primary
931 
residential property, a governing document may allow the creating entity to continue
932 
to appoint a property owner, or the agent of a property owner, to the public
933 
infrastructure district board.
934 
(e) A governing document may allow for a property owner to recommend a property
935 
owner or a property owner's agent for appointment to the public infrastructure district
936 
board in numbers proportional to the property owner's ownership of land, or value of
937 
land, within a public infrastructure district.
938 
(4)(a) A governing document may provide for a transition from legislative body
939 
appointment under Subsection (1) to a method of election by registered voters based
940 
upon milestones or events that the governing document identifies, including a
941 
milestone for each division or individual board position providing that when the
942 
milestone is reached:
943 
(i) for a division, the registered voters of the division elect a member of the board in
944 
place of an appointed member at the next municipal general election for the board
945 
position; or
- 28 - Enrolled Copy	S.B. 241
946 
(ii) for an at large board position established in the governing document, the
947 
registered voters of the public infrastructure district elect a member of the board in
948 
place of an appointed member at the next municipal general election for the board
949 
position.
950 
(b) Regardless of whether a board member is elected under Subsection (4)(a), the
951 
position of each remaining board member shall continue to be appointed under
952 
Subsection (1) until the member's respective division or board position surpasses the
953 
density milestone described in the governing document.
954 
(5)(a) Subject to Subsection (5)(c), the board may, in the board's discretion but no more
955 
frequently than every four years, reestablish the boundaries of each division so that
956 
each division that has reached a milestone specified in the governing document, as
957 
described in Subsection (4)(a), has, as nearly as possible, the same number of eligible
958 
voters.
959 
(b) In reestablishing division boundaries under Subsection (5)(a), the board shall
960 
consider existing or potential developments within the divisions that, when
961 
completed, would increase or decrease the number of eligible voters within the
962 
division.
963 
(c) The governing document may prohibit the board from reestablishing, without the
964 
consent of the creating entity, the division boundaries as described in Subsection
965 
(5)(a).
966 
(6) A public infrastructure district may not compensate a board member for the member's
967 
service on the board under Section 17B-1-307 unless the board member is a resident
968 
within the boundaries of the public infrastructure district.
969 
(7) A governing document shall:
970 
(a) include a boundary description and a map of the public infrastructure district;
971 
(b) state the number of board members;
972 
(c) describe any divisions of the public infrastructure district;
973 
(d) establish any applicable property tax levy rate limit for the public infrastructure
974 
district;
975 
(e) establish any applicable limitation on the principal amount of indebtedness for the
976 
public infrastructure district; and
977 
(f) include other information that the public infrastructure district or the creating entity
978 
determines to be necessary or advisable.
979 
(8)(a) Except as provided in Subsection (8)(b), the board and the governing body of the
- 29 - S.B. 241	Enrolled Copy
980 
creating entity may amend a governing document by each adopting a resolution that
981 
approves the amended governing document.
982 
(b) Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy
983 
rate limitation requires the consent of[:]
984 
[(i)]   100% of surface property owners within the boundaries of the public
985 
infrastructure district[; and] .
986 
[(ii) 100% of the registered voters, if any, within the boundaries of the public
987 
infrastructure district.]
988 
(9) A board member is not in violation of Section 67-16-9 if the board member:
989 
(a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
990 
and files the disclosure with the creating entity:
991 
(i) before any appointment or election; and
992 
(ii) upon any significant change in the business relationship; and
993 
(b) conducts the affairs of the public infrastructure district in accordance with this title
994 
and any parameters described in the governing document.
995 
(10) Notwithstanding any other provision of this section, the governing document governs
996 
the number, appointment, and terms of board members of a public infrastructure district
997 
created by the development authority.
998 
Section 12.  Section 17D-4-203 is amended to read:
999 
17D-4-203  (Effective  upon governor's approval). Public infrastructure district
1000 
powers.
1001 
      A public infrastructure district:
1002 
(1) has all of the authority conferred upon a special district under Section 17B-1-103; and
1003 
(2) may:
1004 
(a) issue negotiable bonds to pay:
1005 
(i) all or part of the costs of acquiring, acquiring an interest in, improving, or
1006 
extending any of the improvements, facilities, or property allowed under Section
1007 
11-14-103;
1008 
(ii) capital costs of improvements in an energy assessment area, as defined in Section
1009 
11-42a-102, and other related costs, against the funds that the public infrastructure
1010 
district will receive because of an assessment in an energy assessment area[, as
1011 
defined in Section 11-42a-102];
1012 
(iii) public improvements related to the provision of housing;
1013 
(iv) capital costs related to public transportation;
- 30 - Enrolled Copy	S.B. 241
1014 
(v) [for a public infrastructure district created by a development authority, ]the cost
1015 
of acquiring or financing public infrastructure and improvements; and
1016 
(vi) for a public infrastructure district that is a subsidiary of or created by the Utah
1017 
Inland Port Authority, the costs associated with a remediation project, as defined
1018 
in Section 11-58-102;
1019 
(b) enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal
1020 
Cooperation Act, provided that the interlocal agreement may not expand the powers
1021 
of the public infrastructure district, within the limitations of Title 11, Chapter 13,
1022 
Interlocal Cooperation Act, without the consent of the creating entity;
1023 
(c) notwithstanding any other provision in code, acquire completed or partially
1024 
completed improvements, including related design and consulting services and
1025 
related work product, for fair market value as reasonably determined by:
1026 
(i) the board;
1027 
(ii) the creating entity, if required in the governing document; or
1028 
(iii) a surveyor or engineer that a public infrastructure district employs or engages to
1029 
perform the necessary engineering services for and to supervise the construction
1030 
or installation of the improvements;
1031 
(d) contract with the creating entity for the creating entity to provide administrative
1032 
services on behalf of the public infrastructure district, when agreed to by both parties,
1033 
in order to achieve cost savings and economic efficiencies, at the discretion of the
1034 
creating entity; [and]
1035 
(e) for a public infrastructure district created by a development authority, or for a public
1036 
infrastructure district created by a municipality and located in an urban renewal
1037 
project area that includes some or all of an inactive industrial site:
1038 
(i)(A) operate and maintain public infrastructure and improvements the district
1039 
acquires or finances; and
1040 
(B) use fees, assessments, or taxes to pay for the operation and maintenance of
1041 
those public infrastructure and improvements; and
1042 
(ii) issue bonds under Title 11, Chapter 42, Assessment Area Act; and
1043 
(f) for a public infrastructure district that is a subsidiary of or created by the Utah Inland
1044 
Port Authority, pay for costs associated with a remediation project, as defined in
1045 
Section 11-58-102, of the Utah Inland Port Authority.
1046 
Section 13.  Section 17D-4-204 is amended to read:
1047 
17D-4-204  (Effective  upon governor's approval). Relation to other local entities.
- 31 - S.B. 241	Enrolled Copy
1048 
(1) Notwithstanding the creation of a public infrastructure district, the creating entity and
1049 
any other public entity, as applicable, retains all of the entity's authority over all zoning,
1050 
planning, design specifications and approvals, and permitting within the public
1051 
infrastructure district.
1052 
(2) The inclusion of property within the boundaries of a public infrastructure district does
1053 
not preclude the inclusion of the property within any other special district.
1054 
(3)(a) All infrastructure that is connected to another public entity's system:
1055 
(i) belongs to that public entity, regardless of inclusion within the boundaries of a
1056 
public infrastructure district, unless the public infrastructure district and the public
1057 
entity otherwise agree; and
1058 
(ii) shall comply with the design, inspection requirements, and other standards of the
1059 
public entity.
1060 
(b) A public infrastructure district shall convey or transfer the infrastructure described in
1061 
Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
1062 
cost to the public entity.
1063 
(4)(a) No public entity or private person shall receive funds from any portion of a public
1064 
infrastructure district's property tax revenue without a resolution of the public
1065 
infrastructure district's board authorizing the public entity or private person to receive
1066 
the funds.
1067 
(b) Subsection (4)(a) does not apply to the county's expenses related to collecting
1068 
property tax in accordance with Title 59, Chapter 2, Part 12, Property Tax Act.
1069 
(c) Subsection (4)(a) applies notwithstanding any provision in:
1070 
(i) Title 17C, Limited Purpose Local Government Entities - Community
1071 
Reinvestment Agency Act;
1072 
(ii) Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
1073 
(iii) a statute governing a development authority created under Utah Constitution,
1074 
Article XI; or
1075 
(iv) a provision of code related to the collection, distribution, or sharing of tax
1076 
increment revenue, incremental property tax increases, or actions related to the
1077 
collection, distribution, or sharing of tax increment revenue or incremental
1078 
property tax increases.
1079 
Section 14.  Section 17D-4-301 is amended to read:
1080 
17D-4-301  (Effective  upon governor's approval). Public infrastructure district
1081 
bonds.
- 32 - Enrolled Copy	S.B. 241
1082 
(1)(a) Subject to Subsection (1)(b), a public infrastructure district may issue negotiable
1083 
bonds or other debt instruments for the purposes described in Section 17D-4-203, as
1084 
provided in, as applicable:
1085 
(i) Title 11, Chapter 14, Local Government Bonding Act;
1086 
(ii) Title 11, Chapter 27, Utah Refunding Bond Act;
1087 
(iii) Title 11, Chapter 42, Assessment Area Act;
1088 
(iv) Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; and
1089 
[(iv)] (v) this section.
1090 
(b) A public infrastructure district created by a bonding political subdivision, as defined
1091 
in Section 63C-25-101, may not issue bonds under this part unless the board first:
1092 
(i) adopts a parameters resolution for the bonds that sets forth:
1093 
(A) the maximum:
1094 
(I) amount of bonds;
1095 
(II) term; and
1096 
(III) interest rate; and
1097 
(B) the expected security for the bonds; and
1098 
(ii) submits the parameters resolution for review and recommendation to the State
1099 
Finance Review Commission created in Section 63C-25-201.
1100 
(2) A public infrastructure district bond[:]
1101 
[(a)]   shall mature within 40 years of the date of issuance[; and] .
1102 
[(b) may not be secured by any improvement or facility paid for by the public
1103 
infrastructure district.]
1104 
(3)(a) A public infrastructure district may issue a limited tax bond, in the same manner
1105 
as a general obligation bond:
1106 
(i)(A) with the consent of 100% of surface property owners within the boundaries
1107 
of the public infrastructure district; and[ 100%]
1108 
(B) with the consent of a majority of the registered voters, if any, within the
1109 
boundaries of the proposed public infrastructure district as of the day on which
1110 
the board finds that the consent of a majority of registered voters has been
1111 
obtained; or
1112 
(ii) upon approval of a majority of the registered voters within the boundaries of the
1113 
public infrastructure district voting in an election held for that purpose under Title
1114 
11, Chapter 14, Local Government Bonding Act.
1115 
(b) A limited tax bond described in Subsection (3)(a):
- 33 - S.B. 241	Enrolled Copy
1116 
(i) is not subject to the limitation on a general obligation bond described in
1117 
Subsection 17B-1-1102(4); and
1118 
(ii) is subject to a limitation, if any, on the principal amount of indebtedness as
1119 
described in the governing document.
1120 
(c) Unless limited tax bonds are initially purchased exclusively by one or more qualified
1121 
institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, or an
1122 
investment grade rating is obtained for the limited tax bonds by one or more
1123 
nationally recognized rating agencies, the public infrastructure district may only issue
1124 
limited tax bonds in denominations of not less than $500,000, and in integral
1125 
multiples above $500,000 of not less than $1,000 each.
1126 
(d)(i) Without any further election or consent of property owners or registered voters,
1127 
a public infrastructure district may convert a limited tax bond described in
1128 
Subsection (3)(a) to a general obligation bond if the principal amount of the
1129 
related limited tax bond together with the principal amount of other related
1130 
outstanding general obligation bonds of the public infrastructure district does not
1131 
exceed 15% of the fair market value of taxable property in the public
1132 
infrastructure district securing the general obligation bonds, determined by:
1133 
(A) an appraisal from an appraiser who is a member of the Appraisal Institute that
1134 
is addressed to the public infrastructure district or a financial institution; or
1135 
(B) the most recent market value of the property from the assessor of the county in
1136 
which the property is located.
1137 
(ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
1138 
sufficient to meet any statutory or constitutional election requirement necessary
1139 
for the issuance of the limited tax bond and any general obligation bond to be
1140 
issued in place of the limited tax bond upon meeting the requirements of this
1141 
Subsection (3)(d).
1142 
[(iii) A general obligation bond resulting from a conversion of a limited tax bond
1143 
under this Subsection (3)(d) is not subject to the limitation on general obligation
1144 
bonds described in Subsection 17B-1-1102(4)(a)(xii).]
1145 
(e) A public infrastructure district that levies a property tax for payment of debt service
1146 
on a limited tax bond issued under this section is not required to comply with the
1147 
notice and hearing requirements of Section 59-2-919 unless the rate exceeds the rate
1148 
established in:
1149 
(i) Section 17D-4-303, except as provided in Subsection [(8)] (13);
- 34 - Enrolled Copy	S.B. 241
1150 
(ii) the governing document; or
1151 
(iii) the documents relating to the issuance of the limited tax bond.
1152 
(4)(a) For a public infrastructure district seeking the consent described in Subsection
1153 
(3)(a)(i)(B), a public infrastructure district may:
1154 
(i) post a class A notice under Section 63G-30-102 for at least 30 days; and
1155 
(ii) mail a request for consent to each registered voter within the boundaries of the
1156 
public infrastructure district according to voter registration records.
1157 
(b) The request for consent described in Subsection (4)(a)(ii) shall include:
1158 
(i) the purpose for the issuance of the bonds;
1159 
(ii) the maximum principal amount of the bonds to be issued;
1160 
(iii) the maximum tax rate proposed to be pledged for the repayment of the bonds;
1161 
(iv) the words "For the issuance of bonds" and "Against the issuance of bonds," with
1162 
appropriate boxes in which the voter may indicate the voter's choice; and
1163 
(v) a return address and phone number where additional information may be obtained
1164 
from the public infrastructure district.
1165 
(c) Any registered voter who does not return the request for consent within 30 days of
1166 
the day they are mailed to the voter is considered:
1167 
(i) non-participatory in the request for consent; and
1168 
(ii) shall not be included in a calculation to determine the percentage of registered
1169 
voters who consent to the issuance of bonds.
1170 
(d) If a majority of the registered voters who return the request for consent under this
1171 
Subsection (4) indicate "For the issuance of bonds," or if no registered voters return
1172 
the request for consent within the time frame described in Subsection (4)(c), the
1173 
requirement described in Subsection (3)(a)(i)(B) is met.
1174 
(e) Nothing in this Subsection (4):
1175 
(i) prevents a public infrastructure district from obtaining the consent of registered
1176 
voters for the issuance of a bond through another method; or
1177 
(ii) shall be interpreted to affect or otherwise interfere with any consents of registered
1178 
voters obtained before the effective date of this bill.
1179 
(5) Nothing in this section shall be interpreted to:
1180 
(a) prevent a public infrastructure district from withdrawing property from the public
1181 
infrastructure district's boundaries where the property owners or registered voters
1182 
associated with that property do not consent to the issuance of bonds or vote against
1183 
the issuance of bonds; or
- 35 - S.B. 241	Enrolled Copy
1184 
(b) require a public infrastructure district to withdraw property from the public
1185 
infrastructure district's boundaries where the property owners or registered voters
1186 
associated with that property do not consent to the issuance of bonds or vote against
1187 
the issuance of bonds.
1188 
(6)(a) Beginning on the effective date of this bill, once consent or approval is obtained
1189 
under Subsection (3)(a), the consent or approval is valid for a period of 10 years from
1190 
the day on which the board:
1191 
(i) adopts a resolution or ordinance finding that the consent or approval is obtained;
1192 
and
1193 
(ii) publishes a notice of the resolution or ordinance described in Subsection (6)(a)(i)
1194 
as a class A notice under Section 63G-30-102 for at least 30 days.
1195 
(b) The tolling provisions of Section 11-14-301 apply during the 10-year period
1196 
described in Subsection (6)(a).
1197 
(c) After a public infrastructure district obtains consent or approval under Subsection
1198 
(3)(a), the public infrastructure district does not require any additional consent to or
1199 
approval of the issuance of bonds, and the subsequent annexation of property to, or
1200 
withdrawal of property from, the public infrastructure district does not impact:
1201 
(i) the validity of already obtained consent or approval;
1202 
(ii) the 10-year period described in Subsection (6)(a); or
1203 
(iii) any bond issued, or to be issued, pursuant to the consent or approval that was
1204 
obtained under Subsection (3)(a).
1205 
(d) Subsection (6)(a) does not invalidate or alter any consent or approval, or finding of
1206 
consent or approval, that occurred before the effective date of this bill.
1207 
(7)(a) [There ] Except as provided in Subsection (7)(b), there is no limitation on the
1208 
duration of revenues that a public infrastructure district may receive to cover any
1209 
shortfall in the payment of principal of and interest on a bond that the public
1210 
infrastructure district issues.
1211 
(b) A public infrastructure governing document or bond documents may limit the
1212 
duration of time described in Subsection (7)(a).
1213 
[(5)] (8) Section 11-42-106 governs any action to challenge an assessment imposed by a
1214 
public infrastructure district or any proceeding to designate an assessment area
1215 
conducted by a public infrastructure district.
1216 
(9) A public infrastructure district is not a municipal corporation for purposes of the debt
1217 
limitation of Utah Constitution, Article XIV, Section 4.
- 36 - Enrolled Copy	S.B. 241
1218 
[(6)] (10) [The ] Notwithstanding any other provision, the board may[,]  directly or by
1219 
resolution[,] delegate to one or more officers of the public infrastructure district the
1220 
authority to:
1221 
(a) in accordance and within the parameters set forth in a resolution adopted in
1222 
accordance with Section 11-14-302, approve the final interest rate, price, principal
1223 
amount, maturity, redemption features, and other terms of the bond;
1224 
(b) approve and execute any document or contract relating to the issuance of a bond; and
1225 
(c) approve any contract related to the acquisition and construction of the improvements,
1226 
facilities, or property to be financed with a bond.
1227 
(11)(a) Subject to Subsection (11)(b), before a public infrastructure district may issue a
1228 
limited tax bond or assessment bond, the public infrastructure district shall engage a
1229 
municipal advisor who, in connection with the issuance of bonds, shall deliver a
1230 
certificate stating that:
1231 
(i) the municipal advisor qualifies to serve as a municipal advisor, as defined in
1232 
Section 17D-4-102, including the basis for the municipal advisor's qualifications;
1233 
(ii) the structure of the limited tax bond or assessment bond the public infrastructure
1234 
district is about to issue is a reasonable structure, as of the date of the issuance of
1235 
the limited tax bond or assessment bond, as applicable; and
1236 
(iii) the interest rate of the limited tax bond or assessment bond the public
1237 
infrastructure district is about to offer is a reasonable market rate, as of the date of
1238 
the issuance of the limited tax bond or assessment bond, as applicable.
1239 
(b) The provisions of this Subsection (11) do not apply to a public infrastructure district
1240 
created by a development authority.
1241 
[(7)] (12)(a) Any person may contest the legality of the issuance of a public
1242 
infrastructure district bond or any provisions for the security and payment of the bond
1243 
for a period of 30 days after:
1244 
(i) [publication of ] posting the resolution authorizing the bond as a class A notice
1245 
under Section 63G-30-102; or
1246 
(ii) [publication of ] posting a notice of bond containing substantially the items
1247 
required under Subsection 11-14-316(2) as a class A notice under Section
1248 
63G-30-102.
1249 
(b) After the 30-day period described in Subsection [(7)(a)] (12)(a), no person may bring
1250 
a lawsuit or other proceeding contesting the regularity, formality, or legality of the
1251 
bond for any reason.
- 37 - S.B. 241	Enrolled Copy
1252 
[(8)] (13)(a) In the event of any statutory change in the methodology of assessment or
1253 
collection of property taxes in a manner that reduces the amounts which are devoted
1254 
or pledged to the repayment of limited tax bonds, a public infrastructure district may
1255 
charge a rate sufficient to receive the amount of property taxes or assessment the
1256 
public infrastructure district would have received before the statutory change in order
1257 
to pay the debt service on outstanding limited tax bonds.
1258 
(b) The rate increase described in Subsection [(8)(a)] (13)(a) may exceed the limit
1259 
described in Section 17D-4-303.
1260 
(c) The public infrastructure district may charge the rate increase described in
1261 
Subsection [(8)(a)] (13)(a) until the bonds, including any associated refunding bonds,
1262 
or other securities, together with applicable interest, are fully met and discharged.
1263 
[(9)] (14) No later than 60 days after the closing of any bonds by a public infrastructure
1264 
district created by a bonding political subdivision, as defined in Section 63C-25-101, the
1265 
public infrastructure district shall report the bond issuance, including the amount of the
1266 
bonds, terms, interest rate, and security, to:
1267 
(a) the Executive Appropriations Committee; and
1268 
(b) the State Finance Review Commission created in Section 63C-25-201.
1269 
Section 15.  Section 17D-4-302 is amended to read:
1270 
17D-4-302  (Effective  upon governor's approval). Fees.
1271 
(1)      [A] In addition to any fees authorized by Title 17B, Chapter 1, Provisions Applicable
1272 
to All Special Districts, a public infrastructure district may charge a fee [or other charge ]
1273 
for an administrative service that the public infrastructure district provides, to pay some
1274 
or all of the public infrastructure district's:
1275 
[(1)] (a) costs of acquiring, improving, or extending improvements, facilities, or
1276 
property; or
1277 
[(2)] (b) costs associated with the enforcement of a legal remedy.
1278 
(2) The board of a public infrastructure district shall establish fees by a fee schedule in
1279 
ordinance or resolution.
1280 
Section 16.  Section 17D-4-303 is amended to read:
1281 
17D-4-303  (Effective  upon governor's approval). Limits on public infrastructure
1282 
district property tax levy -- Notice requirements.
1283 
(1) The property tax levy of a public infrastructure district, for all purposes, including
1284 
payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable
1285 
value of taxable property in the district.
- 38 - Enrolled Copy	S.B. 241
1286 
(2) The limitation described in Subsection (1) does not apply to the levy by the public
1287 
infrastructure district to pay principal of and interest on a general obligation bond that
1288 
the public infrastructure district issues.
1289 
(3)(a) Within 30 days after the day on which the lieutenant governor issues a certificate
1290 
of incorporation for the public infrastructure district under Section 67-1a-6.5, the
1291 
board shall record a notice with the recorder of the county in which property within
1292 
the public infrastructure district is located.
1293 
(b) The notice described in Subsection (3)(a) shall:
1294 
(i) contain a description of the boundaries of the public infrastructure district;
1295 
(ii) state that a copy of the governing document is on file at the office of the creating
1296 
entity;
1297 
(iii) state that the public infrastructure district may finance and repay infrastructure
1298 
and other improvements through the levy of a property tax; and
1299 
(iv) state the maximum rate that the public infrastructure district may levy.
1300 
(c) The effective date of the public infrastructure district for purposes of assessing
1301 
property tax is the day on which the notice is recorded in the office of the recorder of
1302 
each county in which the public infrastructure district is located, as described in
1303 
Section 59-2-305.5.
1304 
(4) If the board fails to record a notice as described in Subsection (3):
1305 
(a) the public infrastructure district is still created as of the day the lieutenant governor
1306 
issues a certificate of incorporation for the public infrastructure district;
1307 
(b) any bonds issued by the public infrastructure district are still valid; and
1308 
(c) the public infrastructure district may not levy a tax or levy or collect a fee until the
1309 
board records the notice described in Subsection (3).
1310 
Section 17.  Section 17D-4-305 is amended to read:
1311 
17D-4-305  (Effective  upon governor's approval). Action to contest tax, fee, or
1312 
proceeding -- Requirements -- Exclusive remedy -- Bonds, taxes, and fees incontestable.
1313 
(1) A person who contests a tax or fee imposed by a public infrastructure district or any
1314 
proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring
1315 
a civil action against the public infrastructure district or the creating entity to:
1316 
(a) set aside the proceeding; or
1317 
(b) enjoin the levy, imposition, or collection of a tax or fee.
1318 
(2) The person bringing an action described in Subsection (1):
1319 
(a) notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, shall bring the
- 39 - S.B. 241	Enrolled Copy
1320 
action in the county in which the public infrastructure district is located if the person
1321 
brings the action in the district court; and
1322 
(b) may not bring the action against or serve a summons relating to the action on the
1323 
public infrastructure district more than 30 days after the [effective date of the] day on
1324 
which:
1325 
(i) the creation of the public infrastructure district is effective, if the challenge is to
1326 
the creation of the public infrastructure district;[ or]
1327 
(ii) the board of the public infrastructure district adopts a resolution or ordinance
1328 
establishing a tax or fee, if the challenge is to a tax or fee[.] ; or
1329 
(iii) the board of the public infrastructure district adopts a resolution or ordinance
1330 
annexing property to, or withdrawing property from, the public infrastructure
1331 
district, if the challenge is to an annexation or withdrawal.
1332 
(3) An action under Subsection (1) is the exclusive remedy of a person who:
1333 
(a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
1334 
infrastructure district, levy a tax, or impose a fee; or
1335 
(b) challenges a bondholder's right to repayment.
1336 
(4) After the expiration of the 30-day period described in Subsection (2)(b):
1337 
(a) a bond issued or to be issued with respect to a public infrastructure district and any
1338 
tax levied or fee imposed becomes incontestable against any person who has not
1339 
brought an action and served a summons in accordance with this section;
1340 
(b) a person may not bring a suit to:
1341 
(i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
1342 
enforcement of a tax or fee; or
1343 
(ii) attack or question in any way the legality of a bond, tax, or fee; and
1344 
(c) a court may not inquire into the matters described in Subsection (4)(b).
1345 
(5)(a) This section does not insulate a public infrastructure district from a claim of
1346 
misuse of funds after the expiration of the 30-day period described in Subsection
1347 
(2)(b).
1348 
(b)(i) Except as provided in Subsection (5)(b)(ii), an action in the nature of
1349 
mandamus is the sole form of relief available to a party challenging the misuse of
1350 
funds.
1351 
(ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
1352 
charges against or the prosecution of a party for the misuse of funds.
1353 
(6) If there is a conflict between a provision in Section 17D-4-301 and a provision in this
- 40 - Enrolled Copy	S.B. 241
1354 
section, the provision in Section 17D-4-301 supersedes the conflicting provision in this
1355 
section.
1356 
Section 18.  Section 67-1a-6.5 is amended to read:
1357 
67-1a-6.5  (Effective  upon governor's approval). Certification of local entity
1358 
boundary actions -- Definitions -- Notice requirements -- Electronic copies -- Filing.
1359 
(1) As used in this section:
1360 
(a) "Applicable certificate" means:
1361 
(i) for the impending incorporation of a city, town, special district, conservation
1362 
district, [or ]incorporation of a special district from a reorganized special service
1363 
district, or public infrastructure district, a certificate of incorporation;
1364 
(ii) for the impending creation of a county, school district, special service district,
1365 
community reinvestment agency, or interlocal entity, a certificate of creation;
1366 
(iii) for the impending annexation of territory to an existing local entity, a certificate
1367 
of annexation;
1368 
(iv) for the impending withdrawal or disconnection of territory from an existing local
1369 
entity, a certificate of withdrawal or disconnection, respectively;
1370 
(v) for the impending consolidation of multiple local entities, a certificate of
1371 
consolidation;
1372 
(vi) for the impending division of a local entity into multiple local entities, a
1373 
certificate of division;
1374 
(vii) for the impending adjustment of a common boundary between local entities, a
1375 
certificate of boundary adjustment; and
1376 
(viii) for the impending dissolution of a local entity, a certificate of dissolution.
1377 
(b) "Approved final local entity plat" means a final local entity plat, as defined in
1378 
Section 17-23-20, that has been approved under Section 17-23-20 as a final local
1379 
entity plat by the county surveyor.
1380 
(c) "Approving authority" has the same meaning as defined in Section 17-23-20.
1381 
(d) "Boundary action" has the same meaning as defined in Section 17-23-20.
1382 
(e) "Center" means the Utah Geospatial Resource Center created under Section
1383 
63A-16-505.
1384 
(f) "Community reinvestment agency" has the same meaning as defined in Section
1385 
17C-1-102.
1386 
(g) "Conservation district" has the same meaning as defined in Section 17D-3-102.
1387 
(h) "Interlocal entity" has the same meaning as defined in Section 11-13-103.
- 41 - S.B. 241	Enrolled Copy
1388 
(i) "Local entity" means a county, city, town, school district, special district, community
1389 
reinvestment agency, special service district, conservation district, or interlocal entity.
1390 
(j) "Notice of an impending boundary action" means a written notice, as described in
1391 
Subsection (3), that provides notice of an impending boundary action.
1392 
(k) "Special district" means the same as that term is defined in Section 17B-1-102.
1393 
(l) "Special service district" means the same as that term is defined in Section 17D-1-102.
1394 
(2) Within 10 days after receiving a notice of an impending boundary action, the lieutenant
1395 
governor shall:
1396 
(a)(i) issue the applicable certificate, if:
1397 
(A) the lieutenant governor determines that the notice of an impending boundary
1398 
action meets the requirements of Subsection (3); and
1399 
(B) except in the case of an impending local entity dissolution, the notice of an
1400 
impending boundary action is accompanied by an approved final local entity
1401 
plat;
1402 
(ii) send the applicable certificate to the local entity's approving authority;
1403 
(iii) return the original of the approved final local entity plat to the local entity's
1404 
approving authority;
1405 
(iv) send a copy of the applicable certificate and approved final local entity plat to:
1406 
(A) the State Tax Commission;
1407 
(B) the center; and
1408 
(C) the county assessor, county surveyor, county auditor, and county attorney of
1409 
each county in which the property depicted on the approved final local entity
1410 
plat is located; and
1411 
(v) send a copy of the applicable certificate to the state auditor, if the boundary action
1412 
that is the subject of the applicable certificate is:
1413 
(A) the incorporation or creation of a new local entity;
1414 
(B) the consolidation of multiple local entities;
1415 
(C) the division of a local entity into multiple local entities; or
1416 
(D) the dissolution of a local entity; or
1417 
(b)(i) send written notification to the approving authority that the lieutenant governor
1418 
is unable to issue the applicable certificate, if:
1419 
(A) the lieutenant governor determines that the notice of an impending boundary
1420 
action does not meet the requirements of Subsection (3); or
1421 
(B) the notice of an impending boundary action is:
- 42 - Enrolled Copy	S.B. 241
1422 
(I) not accompanied by an approved final local entity plat; or
1423 
(II) accompanied by a plat or final local entity plat that has not been approved
1424 
as a final local entity plat by the county surveyor under Section 17-23-20;
1425 
and
1426 
(ii) explain in the notification under Subsection (2)(b)(i) why the lieutenant governor
1427 
is unable to issue the applicable certificate.
1428 
(3) Each notice of an impending boundary action shall:
1429 
(a) be directed to the lieutenant governor;
1430 
(b) contain the name of the local entity or, in the case of an incorporation or creation,
1431 
future local entity, whose boundary is affected or established by the boundary action;
1432 
(c) describe the type of boundary action for which an applicable certificate is sought;
1433 
(d) be accompanied by a letter from the Utah State Retirement Office, created under
1434 
Section 49-11-201, to the approving authority that identifies the potential provisions
1435 
under Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity
1436 
shall comply with, related to the boundary action, if the boundary action is an
1437 
impending incorporation or creation of a local entity that may result in the
1438 
employment of personnel; and
1439 
(e)(i) contain a statement, signed and verified by the approving authority, certifying
1440 
that all requirements applicable to the boundary action have been met; or
1441 
(ii) in the case of the dissolution of a municipality, be accompanied by a certified
1442 
copy of the court order approving the dissolution of the municipality.
1443 
(4) The lieutenant governor may require the approving authority to submit a paper or
1444 
electronic copy of a notice of an impending boundary action and approved final local
1445 
entity plat in conjunction with the filing of the original of those documents.
1446 
(5)(a) The lieutenant governor shall:
1447 
(i) keep, index, maintain, and make available to the public each notice of an
1448 
impending boundary action, approved final local entity plat, applicable certificate,
1449 
and other document that the lieutenant governor receives or generates under this
1450 
section;
1451 
(ii) make a copy of each document listed in Subsection (5)(a)(i) available on the
1452 
Internet for 12 months after the lieutenant governor receives or generates the
1453 
document;
1454 
(iii) furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any
1455 
person who requests a paper copy; and
- 43 - S.B. 241	Enrolled Copy
1456 
(iv) furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to
1457 
any person who requests a certified copy.
1458 
(b) The lieutenant governor may charge a reasonable fee for a paper copy or certified
1459 
copy of a document that the lieutenant governor provides under this Subsection (5).
1460 
(6) The lieutenant governor's issuance of a certificate of creation for an infrastructure
1461 
financing district constitutes the state's approval of the creation of the infrastructure
1462 
financing district.
1463 
Section 19.  Effective Date.
1464 
This bill takes effect:
1465 
(1) except as provided in Subsection (2), May 7, 2025; or
1466 
(2) if approved by two-thirds of all members elected to each house:
1467 
(a) upon approval by the governor;
1468 
(b) without the governor's signature, the day following the constitutional time limit of
1469 
Utah Constitution, Article VII, Section 8; or
1470 
(c) in the case of a veto, the date of veto override.
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