Utah 2025 Regular Session

Utah Senate Bill SB0241 Compare Versions

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1-Enrolled Copy S.B. 241
1+03-03 09:03 2nd Sub. (Salmon) S.B. 241
2+Jerry W. Stevenson proposes the following substitute bill:
23 1
34 Limited Purpose Local Government Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Jerry W. Stevenson
78 House Sponsor: Paul A. Cutler
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill modifies provisions affecting special districts.
1617 6
1718 Highlighted Provisions:
1819 7
1920 This bill:
2021 8
2122 ▸ defines terms and modifies definitions;
2223 9
2324 ▸ provides that a property owner special district may pledge all or a portion of revenue
2425 10
2526 collected from an impact fee or other fee toward payment of a general obligation bond;
2627 11
2728 ▸ authorizes a basic special district to create a public infrastructure district;
2829 12
2930 ▸ authorizes a basic special district to fund:
3031 13
3132 ● the acquisition and construction of certain facilities; and
3233 14
3334 ● affordable housing projects;
3435 15
3536 ▸ modifies requirements for determining consent of surface property owners within a public
3637 16
3738 infrastructure district;
3839 17
3940 ▸ modifies provisions related to the appointment or election of board members for a public
4041 18
4142 infrastructure district;
4243 19
4344 ▸ modifies provisions related to the annexation of property to, or withdrawal of property
4445 20
4546 from, a public infrastructure district;
4647 21
4748 ▸ provides that a public entity or private person may not receive funds from any portion of a
4849 22
4950 public infrastructure district's property tax revenue without a resolution of the public
5051 23
5152 infrastructure district's board authorizing the public entity or private person to receive
5253 24
5354 the funds;
5455 25
5556 ▸ modifies the process for a public infrastructure district to issue a bond; and
5657 26
5758 ▸ makes technical and conforming changes.
5859 27
59-Money Appropriated in this Bill: S.B. 241 Enrolled Copy
60+Money Appropriated in this Bill:
6061 28
6162 None
63+2nd Sub. S.B. 241 2nd Sub. (Salmon) S.B. 241 03-03 09:03
6264 29
6365 Other Special Clauses:
6466 30
6567 This bill provides a special effective date.
6668 31
6769 Utah Code Sections Affected:
6870 32
6971 AMENDS:
7072 33
7173 11-42-106 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
7274 34
7375 Chapter 388
7476 35
75-11-42-408 (Effective upon governor's approval), as last amended by Laws of Utah 2017,
77+11-42-408 (Effective upon governor's approval), as last amended by
7678 36
77-Chapter 470
79+Laws of Utah 2017, Chapter 470
7880 37
7981 11-42a-102 (Effective upon governor's approval), as last amended by Laws of Utah
8082 38
8183 2024, Chapters 42, 53 and 438
8284 39
8385 17B-1-304 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
8486 40
8587 Chapters 15, 435
8688 41
8789 17B-1-1102 (Effective upon governor's approval), as last amended by Laws of Utah
8890 42
8991 2023, Chapter 15
9092 43
9193 17D-4-102 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
9294 44
9395 Chapter 419
9496 45
9597 17D-4-103 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
9698 46
9799 Chapter 15
98100 47
99101 17D-4-201 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
100102 48
101103 Chapters 12, 15 and 259
102104 49
103105 17D-4-202 (Effective upon governor's approval), as last amended by Laws of Utah 2021,
104106 50
105107 Chapters 64, 415 and renumbered and amended by Laws of Utah 2021, Chapter 314
106108 51
107109 17D-4-203 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
108110 52
109111 Chapters 15, 259
110112 53
111113 17D-4-204 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
112114 54
113115 Chapter 15
114116 55
115117 17D-4-301 (Effective upon governor's approval), as last amended by Laws of Utah 2023,
116118 56
117119 Chapters 15, 139
118120 57
119121 17D-4-302 (Effective upon governor's approval), as renumbered and amended by Laws
120122 58
121123 of Utah 2021, Chapter 314
122124 59
123125 17D-4-303 (Effective upon governor's approval), as renumbered and amended by Laws
124126 60
125127 of Utah 2021, Chapter 314
126128 61
127129 17D-4-305 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
128-- 2 - Enrolled Copy S.B. 241
129130 62
130131 Chapter 158
132+- 2 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
131133 63
132134 67-1a-6.5 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
133135 64
134136 Chapter 388
135137 65
136138 ENACTS:
137139 66
138140 17B-1-1404 (Effective upon governor's approval), Utah Code Annotated 1953
139141 67
140142 17D-4-104 (Effective upon governor's approval), Utah Code Annotated 1953
141143 68
142144
143145 69
144146 Be it enacted by the Legislature of the state of Utah:
145147 70
146148 Section 1. Section 11-42-106 is amended to read:
147149 71
148150 11-42-106 (Effective upon governor's approval). Action to contest assessment or
149151 72
150152 proceeding -- Requirements -- Exclusive remedy -- Bonds and assessment incontestable.
151153 73
152154 (1) A person who contests an assessment or any proceeding to designate an assessment area
153155 74
154156 or levy an assessment may commence a civil action against the local entity to:
155157 75
156158 (a) set aside a proceeding to designate an assessment area; or
157159 76
158160 (b) enjoin the levy or collection of an assessment.
159161 77
160162 (2)(a) Each action under Subsection (1) shall be commenced in the district court with
161163 78
162164 jurisdiction in the county in which the assessment area is located.
163165 79
164166 (b)(i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
165167 80
166168 not be commenced against and a summons relating to the action may not be
167169 81
168170 served on the local entity more than 60 days after the effective date of the:
169171 82
170172 (A) designation resolution or designation ordinance, if the challenge is to the
171173 83
172174 designation of an assessment area;
173175 84
174176 (B) assessment resolution or ordinance, if the challenge is to an assessment; or
175177 85
176178 (C) amended resolution or ordinance, if the challenge is to an amendment.
177179 86
178180 (ii) The period for commencing an action and serving a summons under Subsection
179181 87
180182 (2)(b)(i) is 30 days if:
181183 88
182184 (A) the designation resolution, assessment resolution, or amended resolution was
183185 89
184186 adopted by a development authority, an infrastructure financing district under
185187 90
186188 Title 17B, Chapter 2a, Part 13, Infrastructure Financing [Districts] District, or a
187189 91
188190 public infrastructure district [created by a development authority ]under Title
189191 92
190192 17D, Chapter 4, Public Infrastructure District Act; and
191193 93
192194 (B) all owners of property within the assessment area or proposed assessment area
193195 94
194196 consent in writing to the designation resolution, assessment resolution, or
195197 95
196198 amended resolution.
197-- 3 - S.B. 241 Enrolled Copy
198199 96
199200 (3)(a) An action under Subsection (1) is the exclusive remedy of a person who:
201+- 3 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
200202 97
201203 (i) claims an error or irregularity in an assessment or in any proceeding to designate
202204 98
203205 an assessment area or levy an assessment; or
204206 99
205207 (ii) challenges a bondholder's right to repayment.
206208 100
207209 (b) A court may not hear any complaint under Subsection (1) that a person was
208210 101
209211 authorized to make but did not make in a protest under Section 11-42-203 or at a
210212 102
211213 hearing under Section 11-42-204.
212214 103
213215 (c)(i) If a person has not brought a claim for which the person was previously
214216 104
215217 authorized to bring but is otherwise barred from making under Subsection (2)(b),
216218 105
217219 the claim may not be brought later because of an amendment to the resolution or
218220 106
219221 ordinance unless the claim arises from the amendment itself.
220222 107
221223 (ii) In an action brought pursuant to Subsection (1), a person may not contest a
222224 108
223225 previous decision, proceeding, or determination for which the service deadline
224226 109
225227 described in Subsection (2)(b) has expired by challenging a subsequent decision,
226228 110
227229 proceeding, or determination.
228230 111
229231 (4) An assessment or a proceeding to designate an assessment area or to levy an assessment
230232 112
231233 may not be declared invalid or set aside in part or in whole because of an error or
232234 113
233235 irregularity that does not go to the equity or justice of the proceeding or the assessment
234236 114
235237 meeting the requirements of Section 11-42-409.
236238 115
237239 (5) After the expiration of the period referred to in Subsection (2)(b):
238240 116
239241 (a) assessment bonds and refunding assessment bonds issued or to be issued with respect
240242 117
241243 to an assessment area and assessments levied on property in the assessment area
242244 118
243245 become at that time incontestable against all persons who have not commenced an
244246 119
245247 action and served a summons as provided in this section; and
246248 120
247249 (b) a suit to enjoin the issuance or payment of assessment bonds or refunding assessment
248250 121
249251 bonds, the levy, collection, or enforcement of an assessment, or to attack or question
250252 122
251253 in any way the legality of assessment bonds, refunding assessment bonds, or an
252254 123
253255 assessment may not be commenced, and a court may not inquire into those matters.
254256 124
255257 (6)(a) This section may not be interpreted to insulate a local entity from a claim of
256258 125
257259 misuse of assessment funds after the expiration of the period described in Subsection
258260 126
259261 (2)(b).
260262 127
261263 (b)(i) Except as provided in Subsection (6)(b)(ii), an action in the nature of
262264 128
263265 mandamus is the sole form of relief available to a party challenging the misuse of
264266 129
265267 assessment funds.
266-- 4 - Enrolled Copy S.B. 241
267268 130
268269 (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
270+- 4 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
269271 131
270272 charges against or the prosecution of a party for the misuse of assessment funds.
271273 132
272274 Section 2. Section 11-42-408 is amended to read:
273275 133
274-11-42-408 (Effective upon governor's approval). Assessment against government
276+11-42-408 (Effective upon governor's approval). Assessment
275277 134
276-land prohibited -- Exception.
278+against government land prohibited -- Exception.
277279 135
278280 (1)(a) Except as provided in Subsection (2), a local entity may not levy an assessment
279281 136
280282 against property owned by the federal government or a public agency, even if the
281283 137
282284 property benefits from the improvement.
283285 138
284286 (b) Notwithstanding Subsection (1)(a), a public agency may contract with a local entity:
285287 139
286288 (i) for the local entity to provide an improvement to property owned by the public
287289 140
288290 agency; and
289291 141
290292 (ii) to pay for the improvement provided by the local entity.
291293 142
292294 (c) Nothing in this section may be construed to prevent a local entity from imposing on
293295 143
294296 and collecting from a public agency, or a public agency from paying, a reasonable
295297 144
296298 charge for a service rendered or material supplied by the local entity to the public
297299 145
298300 agency, including a charge for water, sewer, or lighting service.
299301 146
300302 (2) Notwithstanding Subsection (1):
301303 147
302304 (a)(i) a local entity may continue to levy and enforce an assessment against property
303305 148
304306 acquired by a public agency within an assessment area if the acquisition occurred
305307 149
306308 after the assessment area was designated; and
307309 150
308310 [(b)] (ii) property that is subject to an assessment lien at the time it is acquired by a
309311 151
310312 public agency continues to be subject to the lien and to enforcement of the lien if
311313 152
312314 the assessment and interest on the assessment are not paid when due[.] ; or
313315 153
314316 (b) a local entity may levy and enforce an assessment against property owned by the
315317 154
316318 federal government or a public agency if the federal government or public agency, as
317319 155
318320 applicable, consents in writing to the local entity levying the assessment.
319321 156
320322 Section 3. Section 11-42a-102 is amended to read:
321323 157
322324 11-42a-102 (Effective upon governor's approval). Definitions.
323325 158
324326 (1) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than the
325327 159
326328 standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
327329 160
328330 (2)(a) "Assessment" means the assessment that a local entity or the C-PACE district
329331 161
330332 levies on private property under this chapter to cover the costs of an energy
331333 162
332334 efficiency upgrade, a clean energy system, or an electric vehicle charging
333335 163
334336 infrastructure.
335-- 5 - S.B. 241 Enrolled Copy
336337 164
337338 (b) "Assessment" does not constitute a property tax but shares the same priority lien as a
339+- 5 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
338340 165
339341 property tax.
340342 166
341343 (3) "Assessment fund" means a special fund that a local entity establishes under Section
342344 167
343345 11-42a-206.
344346 168
345347 (4) "Benefitted property" means private property within an energy assessment area that
346348 169
347349 directly benefits from improvements.
348350 170
349351 (5) "Bond" means an assessment bond and a refunding assessment bond.
350352 171
351353 (6)(a) "Clean energy system" means an energy system that:
352354 172
353355 (i) produces energy from clean resources, including:
354356 173
355357 (A) a photovoltaic system;
356358 174
357359 (B) a solar thermal system;
358360 175
359361 (C) a wind system;
360362 176
361363 (D) a geothermal system, including a generation system, a direct-use system, or a
362364 177
363365 ground source heat pump system;
364366 178
365367 (E) a micro-hydro system;
366368 179
367369 (F) a biofuel system;
368370 180
369371 (G) energy derived from nuclear fuel; or
370372 181
371373 (H) any other clean source system that the governing body of the local entity
372374 182
373375 approves; or
374376 183
375377 (ii) stores energy, including:
376378 184
377379 (A) a battery storage system; or
378380 185
379381 (B) any other energy storing system that the governing body or chief executive
380382 186
381383 officer of a local entity approves.
382384 187
383385 (b) "Clean energy system" includes any improvement that relates physically or
384386 188
385387 functionally to any of the products, systems, or devices listed in Subsection (6)(a)(i)
386388 189
387389 or (ii).
388390 190
389391 (c) "Clean energy system" does not include a system described in Subsection (6)(a)(i) if
390392 191
391393 the system provides energy to property outside the energy assessment area, unless the
392394 192
393395 system:
394396 193
395397 (i)(A) existed before the creation of the energy assessment area; and
396398 194
397399 (B) beginning before January 1, 2017, provides energy to property outside of the
398400 195
399401 area that became the energy assessment area;
400402 196
401403 (ii) provides energy to property outside the energy assessment area under an
402404 197
403405 agreement with a public electrical utility that is substantially similar to agreements
404-- 6 - Enrolled Copy S.B. 241
405406 198
406407 for other renewable energy systems that are not funded under this chapter; or
408+- 6 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
407409 199
408410 (iii) is a biofuel system.
409411 200
410412 (7)(a) "Commercial or industrial real property" means private real property used directly
411413 201
412414 or indirectly or held for one of the following purposes or activities, regardless of
413415 202
414416 whether the purpose or activity is for profit:
415417 203
416418 (i) commercial;
417419 204
418420 (ii) mining;
419421 205
420422 (iii) agricultural;
421423 206
422424 (iv) industrial;
423425 207
424426 (v) manufacturing;
425427 208
426428 (vi) trade;
427429 209
428430 (vii) professional;
429431 210
430432 (viii) a private or public club;
431433 211
432434 (ix) a lodge;
433435 212
434436 (x) a business; or
435437 213
436438 (xi) a similar purpose.
437439 214
438440 (b) "Commercial or industrial real property" includes:
439441 215
440442 (i) private real property that is used as or held for dwelling purposes and contains:
441443 216
442444 (A) more than four rental units; or
443445 217
444446 (B) one or more owner-occupied or rental condominium units affiliated with a
445447 218
446448 hotel; and
447449 219
448450 (ii) real property owned by:
449451 220
450452 (A) the military installation development authority, created in Section 63H-1-201;
451453 221
452454 or
453455 222
454456 (B) the Utah Inland Port Authority, created in Section 11-58-201.
455457 223
456458 (8) "Contract price" means:
457459 224
458460 (a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
459461 225
460462 improvement, as determined by the owner of the property benefitting from the
461463 226
462464 improvement; or
463465 227
464466 (b) the amount payable to one or more contractors for the assessment, design,
465467 228
466468 engineering, inspection, and construction of an improvement.
467469 229
468470 (9) "C-PACE" means commercial property assessed clean energy.
469471 230
470472 (10) "C-PACE district" means the statewide authority established in Section 11-42a-106 to
471473 231
472474 implement the C-PACE Act in collaboration with governing bodies, under the direction
473-- 7 - S.B. 241 Enrolled Copy
474475 232
475476 of OED.
477+- 7 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
476478 233
477479 (11) "Electric vehicle charging infrastructure" means equipment that is:
478480 234
479481 (a) permanently affixed to commercial or industrial real property; and
480482 235
481483 (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
482484 236
483485 plug-in hybrid vehicle.
484486 237
485487 (12) "Energy assessment area" means an area:
486488 238
487489 (a) within the jurisdictional boundaries of a local entity that approves an energy
488490 239
489491 assessment area or, if the C-PACE district or a state interlocal entity levies the
490492 240
491493 assessment, the C-PACE district or the state interlocal entity;
492494 241
493495 (b) containing only the commercial or industrial real property of owners who have
494496 242
495497 voluntarily consented to an assessment under this chapter for the purpose of
496498 243
497499 financing the costs of improvements that benefit property within the energy
498500 244
499501 assessment area; and
500502 245
501503 (c) in which the proposed benefitted properties in the area are:
502504 246
503505 (i) contiguous; or
504506 247
505507 (ii) located on one or more contiguous or adjacent tracts of land that would be
506508 248
507509 contiguous or adjacent property but for an intervening right-of-way, including a
508510 249
509511 sidewalk, street, road, fixed guideway, or waterway.
510512 250
511513 (13) "Energy assessment bond" means a bond:
512514 251
513515 (a) issued under Section 11-42a-401; and
514516 252
515517 (b) payable in part or in whole from assessments levied in an energy assessment area.
516518 253
517519 (14) "Energy assessment lien" means a lien on property within an energy assessment area
518520 254
519521 that arises from the levy of an assessment in accordance with Section 11-42a-301.
520522 255
521523 (15) "Energy assessment ordinance" means an ordinance that a local entity adopts under
522524 256
523525 Section 11-42a-201 that:
524526 257
525527 (a) designates an energy assessment area;
526528 258
527529 (b) levies an assessment on benefitted property within the energy assessment area; and
528530 259
529531 (c) if applicable, authorizes the issuance of energy assessment bonds.
530532 260
531533 (16) "Energy assessment resolution" means one or more resolutions adopted by a local
532534 261
533535 entity under Section 11-42a-201 that:
534536 262
535537 (a) designates an energy assessment area;
536538 263
537539 (b) levies an assessment on benefitted property within the energy assessment area; and
538540 264
539541 (c) if applicable, authorizes the issuance of energy assessment bonds.
540542 265
541543 (17) "Energy efficiency upgrade" means an improvement that is:
542-- 8 - Enrolled Copy S.B. 241
543544 266
544545 (a) permanently affixed to commercial or industrial real property; and
546+- 8 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
545547 267
546548 (b) designed to reduce energy or water consumption, including:
547549 268
548550 (i) insulation in:
549551 269
550552 (A) a wall, roof, floor, or foundation; or
551553 270
552554 (B) a heating and cooling distribution system;
553555 271
554556 (ii) a window or door, including:
555557 272
556558 (A) a storm window or door;
557559 273
558560 (B) a multiglazed window or door;
559561 274
560562 (C) a heat-absorbing window or door;
561563 275
562564 (D) a heat-reflective glazed and coated window or door;
563565 276
564566 (E) additional window or door glazing;
565567 277
566568 (F) a window or door with reduced glass area; or
567569 278
568570 (G) other window or door modifications;
569571 279
570572 (iii) an automatic energy control system;
571573 280
572574 (iv) in a building or a central plant, a heating, ventilation, or air conditioning and
573575 281
574576 distribution system;
575577 282
576578 (v) caulk or weatherstripping;
577579 283
578580 (vi) a light fixture that does not increase the overall illumination of a building, unless
579581 284
580582 an increase is necessary to conform with the applicable building code;
581583 285
582584 (vii) an energy recovery system;
583585 286
584586 (viii) a daylighting system;
585587 287
586588 (ix) measures to reduce the consumption of water, through conservation or more
587589 288
588590 efficient use of water, including installation of:
589591 289
590592 (A) low-flow toilets and showerheads;
591593 290
592594 (B) timer or timing systems for a hot water heater; or
593595 291
594596 (C) rain catchment systems;
595597 292
596598 (x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
597599 293
598600 measure by the governing body or executive of a local entity;
599601 294
600602 (xi) measures or other improvements to effect seismic upgrades;
601603 295
602604 (xii) structures, measures, or other improvements to provide automated parking or
603605 296
604606 parking that reduces land use;
605607 297
606608 (xiii) the extension of an existing natural gas distribution company line;
607609 298
608610 (xiv) an energy efficient elevator, escalator, or other vertical transport device;
609611 299
610612 (xv) any other improvement that the governing body or executive of a local entity
611-- 9 - S.B. 241 Enrolled Copy
612613 300
613614 approves as an energy efficiency upgrade; or
615+- 9 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
614616 301
615617 (xvi) any improvement that relates physically or functionally to any of the
616618 302
617619 improvements listed in Subsections (17)(b)(i) through (xv).
618620 303
619621 (18) "Energy system" means a product, system, device, or interacting group of devices that:
620622 304
621623 (a) produces or stores energy; and
622624 305
623625 (b) is permanently affixed to commercial or industrial real property not located in the
624626 306
625627 certified service area of a distribution electrical cooperative, as defined in Section
626628 307
627629 54-2-1.
628630 308
629631 (19) "Governing body" means:
630632 309
631633 (a) for a county, city, or town, the legislative body of the county, city, or town;
632634 310
633635 (b) for a special district, the board of trustees of the special district;
634636 311
635637 (c) for a special service district:
636638 312
637639 (i) if no administrative control board has been appointed under Section 17D-1-301,
638640 313
639641 the legislative body of the county, city, town, or metro township that established
640642 314
641643 the special service district; or
642644 315
643645 (ii) if an administrative control board has been appointed under Section 17D-1-301,
644646 316
645647 the administrative control board of the special service district;
646648 317
647649 (d) for a public infrastructure district, the board of the public infrastructure district;
648650 318
649651 [(d)] (e) for the military installation development authority created in Section 63H-1-201,
650652 319
651653 the board, as that term is defined in Section 63H-1-102; and
652654 320
653655 [(e)] (f) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
654656 321
655657 defined in Section 11-58-102.
656658 322
657659 (20) "Improvement" means a publicly or privately owned energy efficiency upgrade, clean
658660 323
659661 energy system, or electric vehicle charging infrastructure that:
660662 324
661663 (a) a property owner has requested; or
662664 325
663665 (b) has been or is being installed on a property for the benefit of the property owner.
664666 326
665667 (21) "Incidental refunding costs" means any costs of issuing a refunding assessment bond
666668 327
667669 and calling, retiring, or paying prior bonds, including:
668670 328
669671 (a) legal and accounting fees;
670672 329
671673 (b) charges of financial advisors, escrow agents, certified public accountant verification
672674 330
673675 entities, and trustees;
674676 331
675677 (c) underwriting discount costs, printing costs, and the costs of giving notice;
676678 332
677679 (d) any premium necessary in the calling or retiring of prior bonds;
678680 333
679681 (e) fees to be paid to the local entity to issue the refunding assessment bond and to
680-- 10 - Enrolled Copy S.B. 241
681682 334
682683 refund the outstanding prior bonds;
684+- 10 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
683685 335
684686 (f) any other costs that the governing body determines are necessary and proper to incur
685687 336
686688 in connection with the issuance of a refunding assessment bond; and
687689 337
688690 (g) any interest on the prior bonds that is required to be paid in connection with the
689691 338
690692 issuance of the refunding assessment bond.
691693 339
692694 (22) "Installment payment date" means the date on which an installment payment of an
693695 340
694696 assessment is payable.
695697 341
696698 (23) "Jurisdictional boundaries" means:
697699 342
698700 (a) for the C-PACE district or any state interlocal entity, the boundaries of the state; and
699701 343
700702 (b) for each local entity, the boundaries of the local entity.
701703 344
702704 (24)(a) "Local entity" means:
703705 345
704706 (i) a county, city, or town;
705707 346
706708 (ii) a special service district, a special district, or an interlocal entity as that term is
707709 347
708710 defined in Section 11-13-103;
709711 348
710712 (iii) a public infrastructure district, created under Title 17D, Chapter 4, Public
711713 349
712714 Infrastructure District Act;
713715 350
714716 [(iii)] (iv) a state interlocal entity;
715717 351
716718 [(iv)] (v) the military installation development authority, created in Section 63H-1-201;
717719 352
718720 [(v)] (vi) the Utah Inland Port Authority, created in Section 11-58-201; or
719721 353
720722 [(vi)] (vii) any political subdivision of the state.
721723 354
722724 (b) "Local entity" includes the C-PACE district solely in connection with:
723725 355
724726 (i) the designation of an energy assessment area;
725727 356
726728 (ii) the levying of an assessment; and
727729 357
728730 (iii) the assignment of an energy assessment lien to a third-party lender under Section
729731 358
730732 11-42a-302.
731733 359
732734 (25) "Local entity obligations" means energy assessment bonds and refunding assessment
733735 360
734736 bonds that a local entity issues.
735737 361
736738 (26) "OED" means the Office of Energy Development created in Section 79-6-401.
737739 362
738740 (27) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
739741 363
740742 (28) "Overhead costs" means the actual costs incurred or the estimated costs to be incurred
741743 364
742744 in connection with an energy assessment area, including:
743745 365
744746 (a) appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
745747 366
746748 (b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
747749 367
748750 (c) publishing and mailing costs;
749-- 11 - S.B. 241 Enrolled Copy
750751 368
751752 (d) costs of levying an assessment;
753+- 11 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
752754 369
753755 (e) recording costs; and
754756 370
755757 (f) all other incidental costs.
756758 371
757759 (29) "Parameters resolution" means a resolution or ordinance that a local entity adopts in
758760 372
759761 accordance with Section 11-42a-201.
760762 373
761763 (30) "Prior bonds" means the energy assessment bonds refunded in part or in whole by a
762764 374
763765 refunding assessment bond.
764766 375
765767 (31) "Prior energy assessment ordinance" means the ordinance levying the assessments
766768 376
767769 from which the prior bonds are payable.
768770 377
769771 (32) "Prior energy assessment resolution" means the resolution levying the assessments
770772 378
771773 from which the prior bonds are payable.
772774 379
773775 (33) "Property" includes real property and any interest in real property, including water
774776 380
775777 rights and leasehold rights.
776778 381
777779 (34) "Public electrical utility" means a large-scale electric utility as that term is defined in
778780 382
779781 Section 54-2-1.
780782 383
781783 (35) "Qualifying electric vehicle" means a vehicle that:
782784 384
783785 (a) meets air quality standards;
784786 385
785787 (b) is not fueled by natural gas;
786788 386
787789 (c) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
788790 387
789791 and
790792 388
791793 (d) is an OEM vehicle except that the vehicle is fueled by a fuel described in Subsection
792794 389
793795 (35)(c).
794796 390
795797 (36) "Qualifying plug-in hybrid vehicle" means a vehicle that:
796798 391
797799 (a) meets air quality standards;
798800 392
799801 (b) is not fueled by natural gas or propane;
800802 393
801803 (c) has a battery capacity that meets or exceeds the battery capacity described in
802804 394
803805 Subsection 30D(b)(3), Internal Revenue Code; and
804806 395
805807 (d) is fueled by a combination of electricity and:
806808 396
807809 (i) diesel fuel;
808810 397
809811 (ii) gasoline; or
810812 398
811813 (iii) a mixture of gasoline and ethanol.
812814 399
813815 (37) "Reduced payment obligation" means the full obligation of an owner of property
814816 400
815817 within an energy assessment area to pay an assessment levied on the property after the
816818 401
817819 local entity has reduced the assessment because of the issuance of a refunding
818-- 12 - Enrolled Copy S.B. 241
819820 402
820821 assessment bond, in accordance with Section 11-42a-403.
822+- 12 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
821823 403
822824 (38) "Refunding assessment bond" means an assessment bond that a local entity issues
823825 404
824826 under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
825827 405
826828 (39) "Special district" means a special district under Title 17B, Limited Purpose Local
827829 406
828830 Government Entities - Special Districts.
829831 407
830832 (40) "Special service district" means the same as that term is defined in Section 17D-1-102.
831833 408
832834 (41) "State interlocal entity" means:
833835 409
834836 (a) an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
835837 410
836838 more counties, cities, or towns that collectively represent at least a majority of the
837839 411
838840 state's population; or
839841 412
840842 (b) an entity that another state authorized, before January 1, 2017, to issue bonds, notes,
841843 413
842844 or other obligations or refunding obligations to finance or refinance projects in the
843845 414
844846 state.
845847 415
846848 (42) "Third-party lender" means a trust company, savings bank, savings and loan
847849 416
848850 association, bank, credit union, or any other entity that provides loans directly to
849851 417
850852 property owners for improvements authorized under this chapter.
851853 418
852854 Section 4. Section 17B-1-304 is amended to read:
853855 419
854856 17B-1-304 (Effective upon governor's approval). Appointment procedures for
855857 420
856858 appointed members -- Notice of vacancy.
857859 421
858860 (1) The appointing authority may, by resolution, appoint persons to serve as members of a
859861 422
860862 special district board by following the procedures established by this section.
861863 423
862864 (2)(a) In any calendar year when appointment of a new special district board member is
863865 424
864866 required, the appointing authority shall prepare a notice of vacancy that contains:
865867 425
866868 (i) the positions that are vacant that shall be filled by appointment;
867869 426
868870 (ii) the qualifications required to be appointed to those positions;
869871 427
870872 (iii) the procedures for appointment that the governing body will follow in making
871873 428
872874 those appointments; and
873875 429
874876 (iv) the person to be contacted and any deadlines that a person shall meet who wishes
875877 430
876878 to be considered for appointment to those positions.
877879 431
878880 (b) The appointing authority shall publish the notice of vacancy for the special district,
879881 432
880882 as a class A notice under Section 63G-30-102, for at least one month before the
881883 433
882884 deadline for accepting nominees for appointment.
883885 434
884886 (c) The appointing authority may bill the special district for the cost of preparing,
885887 435
886888 printing, and publishing the notice.
887-- 13 - S.B. 241 Enrolled Copy
888889 436
889890 (3)(a) After the appointing authority is notified of a vacancy and has satisfied the
891+- 13 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
890892 437
891893 requirements described in Subsection (2), the appointing authority shall select a
892894 438
893895 person to fill the vacancy from the applicants who meet the qualifications established
894896 439
895897 by law.
896898 440
897899 (b) The appointing authority shall:
898900 441
899901 (i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the
900902 442
901903 appointment;
902904 443
903905 (ii) allow any interested persons to be heard; and
904906 444
905907 (iii) adopt a resolution appointing a person to the special district board.
906908 445
907909 (c) If no candidate for appointment to fill the vacancy receives a majority vote of the
908910 446
909911 appointing authority, the appointing authority shall select the appointee from the two
910912 447
911913 top candidates by lot.
912914 448
913915 (4) Persons appointed to serve as members of the special district board serve four-year
914916 449
915917 terms, but may be removed for cause at any time after a hearing by two-thirds vote of
916918 450
917919 the appointing body.
918920 451
919921 (5)(a) At the end of each board member's term, the position is considered vacant, and,
920922 452
921923 after following the appointment procedures established in this section, the appointing
922924 453
923925 authority may either reappoint the incumbent board member or appoint a new
924926 454
925927 member.
926928 455
927929 (b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a
928930 456
929931 successor is elected or appointed and qualified in accordance with Subsection
930932 457
931933 17B-1-303(2)(b).
932934 458
933935 (6) Notwithstanding any other provision of this section, if the appointing authority appoints
934936 459
935937 one of its own members and that member meets all applicable statutory board member
936938 460
937939 qualifications, the appointing authority need not comply with Subsection (2) or (3).
938940 461
939941 (7)(a) This section does not apply to the appointment of a member of a public
940942 462
941943 infrastructure district board.
942944 463
943945 (b) Section 17D-4-202 governs the appointment process for a member of the board of a
944946 464
945947 public infrastructure district.
946948 465
947949 Section 5. Section 17B-1-1102 is amended to read:
948950 466
949951 17B-1-1102 (Effective upon governor's approval). General obligation bonds.
950952 467
951953 (1) Except as provided in Subsections (3) and (7), if a district intends to issue general
952954 468
953955 obligation bonds, the district shall first obtain the approval of district voters for issuance
954956 469
955957 of the bonds at an election held for that purpose as provided in Title 11, Chapter 14,
956-- 14 - Enrolled Copy S.B. 241
957958 470
958959 Local Government Bonding Act.
960+- 14 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
959961 471
960962 (2) General obligation bonds shall be secured by a pledge of the full faith and credit of the
961963 472
962964 district, subject to, for a water conservancy district, the property tax levy limits of
963965 473
964966 Section 17B-2a-1006.
965967 474
966968 (3) A district may issue refunding general obligation bonds, as provided in Title 11,
967969 475
968970 Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
969971 476
970972 (4)(a) A special district may not issue general obligation bonds if the issuance of the
971973 477
972974 bonds will cause the outstanding principal amount of all of the district's general
973975 478
974976 obligation bonds to exceed the amount that results from multiplying the fair market
975977 479
976978 value of the taxable property within the district, as determined under Subsection
977979 480
978980 11-14-301(3)(b), by a number that is:
979981 481
980982 (i) .05, for a basic special district, except as provided in Subsection (7);
981983 482
982984 (ii) .004, for a cemetery maintenance district;
983985 483
984986 (iii) .002, for a drainage district;
985987 484
986988 (iv) .004, for a fire protection district;
987989 485
988990 (v) .024, for an improvement district;
989991 486
990992 (vi) .1, for an irrigation district;
991993 487
992994 (vii) .1, for a metropolitan water district;
993995 488
994996 (viii) .0004, for a mosquito abatement district;
995997 489
996998 (ix) .03, for a public transit district;
997999 490
9981000 (x) .12, for a service area; or
9991001 491
10001002 (xi) .05 for a municipal services district.
10011003 492
10021004 (b) Bonds or other obligations of a special district that are not general obligation bonds
10031005 493
10041006 are not included in the limit stated in Subsection (4)(a).
10051007 494
10061008 (5) A district may not be considered to be a municipal corporation for purposes of the debt
10071009 495
10081010 limitation of the Utah Constitution, Article XIV, Section 4.
10091011 496
10101012 (6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13,
10111013 497
10121014 Interlocal Cooperation Act, may not be considered to be bonds of a special district that
10131015 498
10141016 participates in the agreement creating the administrative or legal entity.
10151017 499
10161018 (7)(a) As used in this Subsection (7), "property owner district" means a special district
10171019 500
10181020 whose board members are elected by property owners, as provided in Subsection
10191021 501
10201022 17B-1-1402(1)(b).
10211023 502
10221024 (b) A property owner district may issue a general obligation bond with the consent of:
10231025 503
10241026 (i) the owners of all property within the district; and
1025-- 15 - S.B. 241 Enrolled Copy
10261027 504
10271028 (ii) all registered voters, if any, within the boundary of the district.
1029+- 15 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
10281030 505
10291031 (c) A property owner district may use proceeds from a bond issued under this Subsection
10301032 506
10311033 (7) to fund:
10321034 507
10331035 (i) the acquisition and construction of a system or improvement authorized in:
10341036 508
10351037 (A) the district's creation resolution; [and] or
10361038 509
10371039 (B) Part 14, Basic Special District; and
10381040 510
10391041 (ii) a connection outside the boundary of the district between systems or
10401042 511
10411043 improvements within the boundary of the district.
10421044 512
10431045 (d)(i) The consent under Subsection (7)(b) is sufficient for any requirement necessary
10441046 513
10451047 for the issuance of a general obligation bond.
10461048 514
10471049 (ii) Beginning on the effective date of this bill, once consent is obtained under
10481050 515
10491051 Subsection (7)(b), the consent is valid for a period of 10 years.
10501052 516
10511053 (e) A general obligation bond issued under this Subsection (7):
10521054 517
10531055 (i) shall mature no later than 40 years after the date of issuance; and
10541056 518
10551057 (ii) is not subject to the limit under Subsection (4)(a)(i).
10561058 519
10571059 (f)(i) A property owner district may not issue a general obligation bond under this
10581060 520
10591061 Subsection (7) if the issuance will cause the outstanding principal amount of all
10601062 521
10611063 the district's general obligation bonds to exceed one-half of the market value of all
10621064 522
10631065 real property within the district.
10641066 523
10651067 (ii) Market value under Subsection (7)(f)(i) shall:
10661068 524
10671069 (A) be based on the value that the real property will have after all improvements
10681070 525
10691071 financed by the general obligation bonds are constructed; and
10701072 526
10711073 (B) be determined by appraisal by an appraiser who is a member of the Appraisal
10721074 527
10731075 Institute.
10741076 528
10751077 (g) With respect to a general obligation bond issued under this Subsection (7), the board
10761078 529
10771079 of a property owner district may approve or, by resolution, delegate to one or more
10781080 530
10791081 officers of the district, the authority to:
10801082 531
10811083 (i) approve the final interest rate, price, principal amount, maturity, redemption
10821084 532
10831085 features, and other terms of the bond;
10841086 533
10851087 (ii) approve and execute a document relating to the issuance of the bond; and
10861088 534
10871089 (iii) approve a contract, including a contract with a property owner within the district,
10881090 535
10891091 related to the acquisition and construction of an improvement, facility, or property
10901092 536
10911093 to be financed with proceeds from the bond.
10921094 537
10931095 (h)(i) A person may commence a lawsuit or other proceeding to contest the legality
1094-- 16 - Enrolled Copy S.B. 241
10951096 538
10961097 of the issuance of a general obligation bond issued under this Subsection (7) or
1098+- 16 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
10971099 539
10981100 any provision relating to the security or payment of the bond if the lawsuit or
10991101 540
11001102 other proceeding is commenced within 30 days after the publication of:
11011103 541
11021104 (A) the resolution authorizing the issuance of the general obligation bond; or
11031105 542
11041106 (B) a notice of the bond issuance containing substantially the items required under
11051107 543
11061108 Subsection 11-14-316(2).
11071109 544
11081110 (ii) Following the period described in Subsection (7)(h)(i), no person may bring a
11091111 545
11101112 lawsuit or other proceeding to contest for any reason the regularity, formality, or
11111113 546
11121114 legality of a general obligation bond issued under this Subsection (7).
11131115 547
11141116 (i)[(i)] A property owner district that charges and collects an impact fee or other fee
11151117 548
11161118 on real property [at the time the real property is sold may proportionally pay down
11171119 549
11181120 a general obligation bond issued under this Subsection (7) from the money
11191121 550
11201122 collected from the impact fee or other fee] may pledge all or a portion of the
11211123 551
11221124 revenue collected from the impact fee or other fee toward payment of a general
11231125 552
11241126 obligation bond issued under this Subsection (7).
11251127 553
11261128 [(ii) A property owner district that proportionally pays down a general obligation
11271129 554
11281130 bond under Subsection (7)(i)(i) shall reduce the property tax rate on the parcel of
11291131 555
11301132 real property on which the district charged and collected an impact fee or other
11311133 556
11321134 charge, to reflect the amount of outstanding principal of a general obligation bond
11331135 557
11341136 issued under this Subsection (7) that was paid down and is attributable to that
11351137 558
11361138 parcel.]
11371139 559
11381140 (j) If a property owner fails to pay a property tax that the property owner district imposes
11391141 560
11401142 in connection with a general obligation bond issued under this Subsection (7), the
11411143 561
11421144 district may impose a property tax penalty at an annual rate of .07, in addition to any
11431145 562
11441146 other penalty allowed by law.
11451147 563
11461148 Section 6. Section 17B-1-1404 is enacted to read:
11471149 564
11481150 17B-1-1404 (Effective upon governor's approval). Basic special district
11491151 565
11501152 authorized to create a public infrastructure district -- Basic special district authorized to
11511153 566
11521154 fund certain projects and services.
11531155 567
11541156 (1)(a) As used in this section, "eligible basic special district" means a basic special
11551157 568
11561158 district:
11571159 569
11581160 (i) created before April 15, 2011;
11591161 570
11601162 (ii) that issued limited general obligation bonds in 2024; and
11611163 571
11621164 (iii) for which there was not one or more public infrastructure districts within the
1163-- 17 - S.B. 241 Enrolled Copy
11641165 572
11651166 boundaries of the basic special district as of January 1, 2025.
1167+- 17 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
11661168 573
11671169 (2)(a) Subject to Subsection (3), an eligible basic special district may create a public
11681170 574
11691171 infrastructure district, in accordance with Title 17D, Chapter 4, Public Infrastructure
11701172 575
11711173 District Act, for any area located within the boundaries of the eligible basic special
11721174 576
11731175 district.
11741176 577
11751177 (b) An eligible basic special district that creates a public infrastructure district is the
11761178 578
1177-creating entity for purposes of Title 17D, Chapter 4, Public Infrastructure District Act,
1179+creating entity for purposes of Title 17D, Chapter 4, Public Infrastructure District
11781180 579
1179-and shall receive any petitions required to be submitted to a creating entity.
1181+Act, and shall receive any petitions required to be submitted to a creating entity.
11801182 580
11811183 (3) When a public infrastructure district is created pursuant to this section:
11821184 581
11831185 (a) the public infrastructure district shall have the same powers as the eligible basic
11841186 582
11851187 special district that is the public infrastructure district's creating entity; and
11861188 583
11871189 (b) upon creation of the public infrastructure district, the area within the public
11881190 584
11891191 infrastructure district shall automatically be withdrawn from the eligible basic special
11901192 585
11911193 district and shall no longer be part of the eligible basic special district.
11921194 586
11931195 (4) In addition to the requirements of Section 17D-4-202, an eligible basic special district
11941196 587
11951197 shall ensure that the governing document for a public infrastructure district created
11961198 588
11971199 under this section provides for the election of the initial and future boards of the public
11981200 589
11991201 infrastructure district using the same method as the election of the board of the eligible
12001202 590
12011203 basic special district.
12021204 591
12031205 (5) In addition to the other powers described in this part, an eligible basic special district
12041206 592
12051207 may:
12061208 593
12071209 (a) fund, in whole or in part, the acquisition and construction of a public facility for use
12081210 594
12091211 by one or more government entities;
12101212 595
12111213 (b) transfer the eligible basic special district's ownership interest in a public facility to
12121214 596
12131215 another political subdivision pursuant to a written agreement between the eligible
12141216 597
12151217 basic special district and the receiving political subdivision; and
12161218 598
12171219 (c) fund, in whole or in part, the acquisition or construction of:
12181220 599
12191221 (i) privately owned affordable housing, consisting of single-family dwellings or
12201222 600
12211223 townhomes;
12221224 601
12231225 (ii) facilities for health care, recreation, community arts, or an amphitheater, whether
12241226 602
12251227 those facilities are publicly or privately owned; and
12261228 603
12271229 (iii) a privately owned grocery store, if there is not a grocery store located within the
12281230 604
12291231 eligible basic special district's boundary.
12301232 605
12311233 Section 7. Section 17D-4-102 is amended to read:
1232-- 18 - Enrolled Copy S.B. 241
12331234 606
12341235 17D-4-102 (Effective upon governor's approval). Definitions.
1236+- 18 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
12351237 607
12361238 As used in this chapter:
12371239 608
12381240 (1) "Board" means the board of trustees of a public infrastructure district.
12391241 609
12401242 (2) "Creating entity" means the county, municipality, basic special district, or development
12411243 610
12421244 authority that approves the creation of a public infrastructure district.
12431245 611
12441246 (3) "Development authority" means:
12451247 612
12461248 (a) the Utah Inland Port Authority created in Section 11-58-201;
12471249 613
12481250 (b) the Point of the Mountain State Land Authority created in Section 11-59-201;
12491251 614
12501252 (c) the Utah Fairpark Area Investment and Restoration District created in Section
12511253 615
12521254 11-70-201; or
12531255 616
12541256 (d) the military installation development authority created in Section 63H-1-201.
12551257 617
12561258 (4) "District applicant" means the person proposing the creation of a public infrastructure
12571259 618
12581260 district.
12591261 619
12601262 (5) "Division" means a division of a public infrastructure district:
12611263 620
12621264 (a) that is relatively equal in number of eligible voters or potential eligible voters to all
12631265 621
12641266 other divisions within the public infrastructure district, taking into account existing or
12651267 622
12661268 potential developments which, when completed, would increase or decrease the
12671269 623
12681270 population within the public infrastructure district; and
12691271 624
12701272 (b) which a member of the board represents.
12711273 625
12721274 (6) "Governing document" means the document governing a public infrastructure district to
12731275 626
12741276 which the creating entity agrees before the creation of the public infrastructure district,
12751277 627
12761278 as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
12771279 628
12781280 Provisions Applicable to All Special Districts, and this chapter.
12791281 629
12801282 (7)(a) "Limited tax bond" means a bond:
12811283 630
12821284 (i) that is directly payable from and secured by ad valorem property taxes that are
12831285 631
12841286 levied:
12851287 632
12861288 (A) by a public infrastructure district that issues the bond; and
12871289 633
12881290 (B) on taxable property within the district;
12891291 634
12901292 (ii) that is a general obligation of the public infrastructure district; and
12911293 635
12921294 (iii) for which the ad valorem property tax levy for repayment of the bond does not
12931295 636
12941296 exceed the property tax levy rate limit established under Section 17D-4-303 for
12951297 637
12961298 any fiscal year, except as provided in Subsection [17D-4-301(8)] 17D-4-301(13).
12971299 638
12981300 (b) "Limited tax bond" does not include:
12991301 639
13001302 (i) a short-term bond;
1301-- 19 - S.B. 241 Enrolled Copy
13021303 640
13031304 (ii) a tax and revenue anticipation bond; or
1305+- 19 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
13041306 641
13051307 (iii) a special assessment bond.
13061308 642
13071309 (8)(a) "Municipal advisor" means a person that:
13081310 643
13091311 (i) advises a political subdivision on matters related to the issuance of bonds by
13101312 644
13111313 governmental entities, including the pricing, sales, and marketing of bonds and the
13121314 645
13131315 procuring of bond ratings, credit enhancement, and insurance with respect to
13141316 646
13151317 bonds;
13161318 647
13171319 (ii) is qualified to provide the advice described in Subsection (8)(a)(i);
13181320 648
13191321 (iii) is not an officer or employee of the political subdivision receiving advice;
13201322 649
13211323 (iv) has not been engaged to provide underwriting services in connection with a
13221324 650
13231325 transaction in which the person will provide advice to the political subdivision; and
13241326 651
13251327 (v) has experience doing business related to the issuance of bonds in the state.
13261328 652
13271329 (b) "Municipal advisor" may include:
13281330 653
13291331 (i) an individual who meets the description in Subsection (8)(a); or
13301332 654
13311333 (ii) a firm of individuals who collectively meet the description in Subsection (8)(a).
13321334 655
13331335 (9)(a) "Public infrastructure and improvements" means:
13341336 656
13351337 (i) infrastructure, utilities, improvements, facilities, buildings, or remediation that:
13361338 657
13371339 (A) benefit the public and are owned by a public entity or a public or private
13381340 658
13391341 utility;
13401342 659
13411343 (B) benefit the public and are publicly maintained or operated by a public entity; or
13421344 660
13431345 (C) are privately owned and are expressly permitted to be acquired or financed by
13441346 661
13451347 the public infrastructure district's governing document or an agreement
13461348 662
13471349 between the public infrastructure district and the public infrastructure district's
13481350 663
13491351 creating entity; and
13501352 664
13511353 (ii) publicly or privately owned roads, rights-of-way, trails, parking, or parking
13521354 665
13531355 structures.
13541356 666
13551357 (b) "Public infrastructure and improvements" also means:
13561358 667
13571359 [(a)] (i) the same as that term is defined in Section 11-58-102, for a public
13581360 668
13591361 infrastructure district created by the Utah Inland Port Authority created in Section
13601362 669
13611363 11-58-201;
13621364 670
13631365 [(b)] (ii) the same as that term is defined in Section 11-70-101, for a public
13641366 671
13651367 infrastructure district created by the Utah Fairpark Area Investment and
13661368 672
13671369 Restoration District created in Section 11-70-201; [and]
13681370 673
13691371 [(c)] (iii) the same as that term is defined in Section 63H-1-102, for a public
1370-- 20 - Enrolled Copy S.B. 241
13711372 674
13721373 infrastructure district created by the military installation development authority
1374+- 20 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
13731375 675
13741376 created in Section 63H-1-201[.] ;
13751377 676
13761378 (iv) for any public infrastructure district created by a development authority, any
13771379 677
13781380 infrastructure, utilities, improvements, facilities, buildings, or remediation that are
13791381 678
13801382 privately owned and benefit the public; and
13811383 679
13821384 (v) for a public infrastructure district to which tax increment revenue is pledged or
13831385 680
13841386 distributed, any publicly or privately owned infrastructure, utilities,
13851387 681
13861388 improvements, facilities, buildings, or remediation that is a permitted use of the
13871389 682
13881390 tax increment revenue.
13891391 683
13901392 (10)(a) "Tax increment revenue" means the difference between the tax revenue
13911393 684
13921394 generated from or within a specific area and the revenue that would be generated if a
13931395 685
13941396 base taxable value were used.
13951397 686
13961398 (b) "Tax increment revenue" includes any concept substantially the same as the
13971399 687
13981400 definition in Subsection (10)(a), regardless of the name of the concept.
13991401 688
14001402 Section 8. Section 17D-4-103 is amended to read:
14011403 689
14021404 17D-4-103 (Effective upon governor's approval). Provisions applicable to public
14031405 690
14041406 infrastructure districts.
14051407 691
14061408 (1) A public infrastructure district:
14071409 692
14081410 (a) is a body corporate and politic with perpetual succession;
14091411 693
14101412 (b) is a quasi-municipal corporation;
14111413 694
14121414 (c) is a political subdivision of the state;
14131415 695
14141416 (d) is separate and distinct from, and independent of, any other public entity or political
14151417 696
14161418 subdivision of the state; and
14171419 697
14181420 (e) may sue and be sued.
14191421 698
14201422 (2) Each public infrastructure district is governed by and has the powers stated in:
14211423 699
14221424 (a) this chapter; and
14231425 700
14241426 (b) Title 17B, Chapter 1, Provisions Applicable to All Special Districts.
14251427 701
14261428 [(2)] (3) This chapter applies only to a public infrastructure district.
14271429 702
14281430 [(3)] (4) Except as modified or exempted by this chapter, a public infrastructure district is[,] :
14291431 703
14301432 (a) to the same extent as if the public infrastructure district were a special district,
14311433 704
14321434 subject to the provisions in:
14331435 705
14341436 [(a)] (i) Title 17B, Chapter 1, Provisions Applicable to All Special Districts; and
14351437 706
14361438 [(b)] (ii) Title 20A, Election Code[.] ; and
14371439 707
14381440 (b) subject to the provisions in Title 11, Chapter 42a, Commercial Property Assessed
1439-- 21 - S.B. 241 Enrolled Copy
14401441 708
14411442 Clean Energy Act.
1443+- 21 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
14421444 709
14431445 [(4)] (5) If there is a conflict between a provision in Title 17B, Chapter 1, Provisions
14441446 710
14451447 Applicable to All Special Districts, and a provision in this chapter, the provision in this
14461448 711
14471449 chapter supersedes the conflicting provision in Title 17B, Chapter 1, Provisions
14481450 712
14491451 Applicable to All Special Districts.
14501452 713
14511453 [(5)] (6) The annexation of an unincorporated area by a municipality or the adjustment of a
14521454 714
14531455 boundary shared by more than one municipality does not affect the boundaries of a
14541456 715
14551457 public infrastructure district.
14561458 716
14571459 Section 9. Section 17D-4-104 is enacted to read:
14581460 717
14591461 17D-4-104 (Effective upon governor's approval). Conditions where property
14601462 718
14611463 owner consent is not required.
14621464 719
14631465 Any provision of this chapter requiring the consent or signatures of 100% of surface
14641466 720
14651467 property owners within an applicable area, the consent of any public entity, utility provider, or
14661468 721
14671469 owners' association that is a property owner within an applicable area is not required if the
14681470 722
14691471 public entity, utility provider, or owners' association ownership interest within the applicable
14701472 723
14711473 area is limited to:
14721474 724
14731475 (1) an easement;
14741476 725
14751477 (2) a right-of-way; or
14761478 726
14771479 (3) a public improvement, utility improvement, or related improvement.
14781480 727
14791481 Section 10. Section 17D-4-201 is amended to read:
14801482 728
14811483 17D-4-201 (Effective upon governor's approval). Creation -- Annexation or
14821484 729
14831485 withdrawal of property.
14841486 730
14851487 (1)(a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
14861488 731
14871489 provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions
14881490 732
14891491 Applicable to All Special Districts, a public infrastructure district may not be created
14901492 733
14911493 unless[:]
14921494 734
14931495 [(i) if there are any registered voters within the applicable area, a petition is filed with
14941496 735
14951497 the creating entity that contains the signatures of 100% of registered voters within
14961498 736
14971499 the applicable area approving the creation of the public infrastructure district; and]
14981500 737
14991501 [(ii)] a petition is filed with the creating entity that contains the signatures of 100%
15001502 738
15011503 of surface property owners within the applicable area consenting to the creation of
15021504 739
15031505 the public infrastructure district.
15041506 740
15051507 (b)(i) As used in this Subsection (1)(b):
15061508 741
15071509 (A) "Military [Land] land" means the same as that term is defined in Section
1508-- 22 - Enrolled Copy S.B. 241
15091510 742
15101511 63H-1-102.
1512+- 22 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
15111513 743
15121514 (B) "Project area" means the same as that term is defined in Section 63H-1-102.
15131515 744
15141516 (ii) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and
15151517 745
15161518 any other provision of this chapter, a development authority may adopt a
15171519 746
15181520 resolution creating a public infrastructure district if all owners of surface property
15191521 747
15201522 proposed to be included within the public infrastructure district consent in writing
15211523 748
15221524 to the creation of the public infrastructure district.
15231525 749
15241526 (iii) For purposes of Subsection (1)(b)(ii), if the surface property proposed to be
15251527 750
15261528 included within the public infrastructure district includes military land that is
15271529 751
15281530 within a project area, the owner of the military land within the project area is the
15291531 752
15301532 lessee of the military land.
15311533 753
15321534 (iv) A public infrastructure district created under Subsection (1)(b)(ii) may be created
15331535 754
15341536 as a subsidiary of the development authority that adopts the resolution creating the
15351537 755
15361538 public infrastructure district.
15371539 756
15381540 (2)(a) The following do not apply to the creation of a public infrastructure district:
15391541 757
15401542 (i) Section 17B-1-203;
15411543 758
15421544 (ii) Section 17B-1-204;
15431545 759
15441546 (iii) Subsection 17B-1-208(2);
15451547 760
15461548 (iv) Section 17B-1-212; or
15471549 761
15481550 (v) Section 17B-1-214.
15491551 762
15501552 (b) The protest period described in Section 17B-1-213 may be waived in whole or in
15511553 763
15521554 part with the consent of[:]
15531555 764
15541556 [(i) 100% of registered voters within the applicable area approving the creation of the
15551557 765
15561558 public infrastructure district; and]
15571559 766
15581560 [(ii)] 100% of the surface property owners within the applicable area approving the
15591561 767
15601562 creation of the public infrastructure district.
15611563 768
15621564 (c) If the protest period is waived under Subsection (2)(b), a resolution approving the
15631565 769
15641566 creation of the public infrastructure district may be adopted in accordance with
15651567 770
15661568 Subsection 17B-1-213(5).
15671569 771
15681570 (d) A petition meeting the requirements of Subsection (1)[:]
15691571 772
15701572 [(i)] may be certified under Section 17B-1-209[; and] .
15711573 773
15721574 [(ii) shall be filed with the lieutenant governor in accordance with Subsection
15731575 774
15741576 17B-1-215(1)(b)(iii).]
15751577 775
15761578 (e) Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the
1577-- 23 - S.B. 241 Enrolled Copy
15781579 776
15791580 items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30
1581+- 23 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
15801582 777
15811583 days of the day on which a resolution creating a public infrastructure district is
15821584 778
15831585 adopted.
15841586 779
15851587 (3)[(a)] Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
15861588 780
15871589 boundaries of a public infrastructure district may be annexed into the public
15881590 781
15891591 infrastructure district if the following requirements are met:
15901592 782
15911593 [(i)] (a)[(A)] (i) adoption of resolutions of the board and the creating entity, each
15921594 783
15931595 approving of the annexation; or
15941596 784
15951597 [(B)] (ii) adoption of a resolution of the board to annex the area, provided that the
15961598 785
15971599 governing document or creation resolution for the public infrastructure district
15981600 786
15991601 authorizes the board to annex an area outside of the boundaries of the public
16001602 787
16011603 infrastructure district without future consent of the creating entity; and
16021604 788
16031605 [(ii) if there are any registered voters within the area proposed to be annexed, a
16041606 789
16051607 petition is filed with the creating entity that contains the signatures of 100% of
16061608 790
16071609 registered voters within the area, demonstrating that the registered voters approve
16081610 791
16091611 of the annexation into the public infrastructure district; and]
16101612 792
16111613 [(iii)] (b) a petition is filed with the [creating entity] public infrastructure district that
16121614 793
16131615 contains the signatures of 100% of surface property owners within the area proposed
16141616 794
16151617 to be annexed, demonstrating the surface property owners' consent to the annexation
16161618 795
16171619 into the public infrastructure district.
16181620 796
16191621 [(b) Within 30 days of meeting the requirements of Subsection (3)(a), the board shall file
16201622 797
16211623 with the lieutenant governor:]
16221624 798
16231625 [(i) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5,
16241626 799
16251627 that meets the requirements of Subsection 67-1a-6.5(3); and]
16261628 800
16271629 [(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.]
16281630 801
16291631 (4)(a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be
16301632 802
16311633 withdrawn from a public infrastructure district if the following requirements are met:
16321634 803
16331635 (i)(A) adoption of resolutions of the board and the creating entity, each approving
16341636 804
16351637 of the withdrawal; or
16361638 805
16371639 (B) adoption of a resolution of the board to withdraw the property, provided that
16381640 806
16391641 the governing document or creation resolution for the public infrastructure
16401642 807
16411643 district authorizes the board to withdraw property from the public
16421644 808
16431645 infrastructure district without further consent from the creating entity; and
16441646 809
16451647 [(ii) if there are any registered voters within the area proposed to be withdrawn, a
1646-- 24 - Enrolled Copy S.B. 241
16471648 810
16481649 petition is filed with the creating entity that contains the signatures of 100% of
1650+- 24 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
16491651 811
16501652 registered voters within the area, demonstrating that the registered voters approve
16511653 812
16521654 of the withdrawal from the public infrastructure district; and]
16531655 813
16541656 [(iii)] (ii) a petition is filed with the [creating entity] public infrastructure district that
16551657 814
16561658 contains the signatures of 100% of surface property owners within the area
16571659 815
16581660 proposed to be withdrawn, demonstrating that the surface property owners consent
16591661 816
16601662 to the withdrawal from the public infrastructure district.
16611663 817
16621664 (b) If any bonds that the public infrastructure district issues are allocable to the area to
16631665 818
16641666 be withdrawn remain unpaid at the time of the proposed withdrawal, the property
16651667 819
16661668 remains subject to any taxes, fees, or assessments that the public infrastructure
16671669 820
16681670 district imposes until the bonds or any associated refunding bonds are paid.
16691671 821
16701672 (c) Upon meeting the requirements of [Subsections] Subsection (3) or (4)(a)[ and (b)],
16711673 822
16721674 the board shall:
16731675 823
16741676 (i) [ ] within 30 days of the day on which a resolution is adopted or a petition is filed
16751677 824
16761678 under Subsection (3) or (4)(a), file with the lieutenant governor:
16771679 825
16781680 (A) a copy of a notice of impending boundary action, as defined in Section
16791681 826
16801682 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
16811683 827
16821684 (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5;
16831685 828
16841686 and
16851687 829
16861688 (ii) comply with the requirements of Section 17B-1-512, except:
16871689 830
16881690 (A) Subsections 17B-1-512(1)(b) and (c) do not apply; and
16891691 831
1690-(B) [.] the time periods described in this section govern.
1692+(B) the time periods described in this section govern.
16911693 832
16921694 (5) A creating entity may impose limitations on the powers of a public infrastructure district
16931695 833
16941696 through the governing document.
16951697 834
16961698 (6)(a) A public infrastructure district is separate and distinct from the creating entity.
16971699 835
16981700 (b)(i) Except as provided in Subsection (6)(b)(ii), any financial burden of a public
16991701 836
17001702 infrastructure district:
17011703 837
17021704 (A) is borne solely by the public infrastructure district; and
17031705 838
17041706 (B) is not borne by the creating entity, by the state, or by any municipality,
17051707 839
17061708 county, or other political subdivision.
17071709 840
17081710 (ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing
17091711 841
17101712 document may require:
17111713 842
17121714 (A) the district applicant to bear the initial costs of the public infrastructure
17131715 843
17141716 district; and
1715-- 25 - S.B. 241 Enrolled Copy
17161717 844
17171718 (B) the public infrastructure district to reimburse the district applicant for the
1719+- 25 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
17181720 845
17191721 initial costs the creating entity bears.
17201722 846
17211723 (iii) Nothing in this Subsection (6) precludes a public infrastructure district from
17221724 847
17231725 qualifying directly for an impact fee offset, credit, or refund under Title 11,
17241726 848
17251727 Chapter 36a, Impact Fees Act, regarding any qualifying system improvements
17261728 849
17271729 financed by the public infrastructure district.
17281730 850
17291731 (c) Any liability, judgment, or claim against a public infrastructure district:
17301732 851
17311733 (i) is the sole responsibility of the public infrastructure district; and
17321734 852
17331735 (ii) does not constitute a liability, judgment, or claim against the creating entity, the
17341736 853
17351737 state, or any municipality, county, or other political subdivision.
17361738 854
17371739 (d)(i)(A) The public infrastructure district solely bears the responsibility of any
17381740 855
17391741 collection, enforcement, or foreclosure proceeding with regard to any [tax, ]fee[,]
17401742 856
17411743 or assessment the public infrastructure district imposes.
17421744 857
17431745 (B) The creating entity does not bear the responsibility described in Subsection
17441746 858
17451747 (6)(d)(i)(A).
17461748 859
17471749 (ii) A public infrastructure district, and not the creating entity, shall undertake the
17481750 860
17491751 enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in
17501752 861
17511753 accordance with [Title 59, Chapter 2, Property Tax Act, or ]Title 11, Chapter 42,
17521754 862
17531755 Assessment Area Act.
17541756 863
17551757 (7) A creating entity may establish criteria in determining whether to approve or disapprove
17561758 864
17571759 of the creation of a public infrastructure district, including:
17581760 865
17591761 (a) historical performance of the district applicant;
17601762 866
17611763 (b) compliance with the creating entity's master plan;
17621764 867
17631765 (c) credit worthiness of the district applicant;
17641766 868
17651767 (d) plan of finance of the public infrastructure district; and
17661768 869
17671769 (e) proposed development within the public infrastructure district.
17681770 870
17691771 (8)(a) The creation of a public infrastructure district is subject to the sole discretion of
17701772 871
17711773 the creating entity responsible for approving or rejecting the creation of the public
17721774 872
17731775 infrastructure district.
17741776 873
17751777 (b) The proposed creating entity bears no liability for rejecting the proposed creation of
17761778 874
17771779 a public infrastructure district.
17781780 875
17791781 Section 11. Section 17D-4-202 is amended to read:
17801782 876
17811783 17D-4-202 (Effective upon governor's approval). Public infrastructure district
17821784 877
17831785 board -- Governing document.
1784-- 26 - Enrolled Copy S.B. 241
17851786 878
17861787 (1)(a) The legislative body or board of the creating entity shall appoint the initial
1788+- 26 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
17871789 879
17881790 members of the board of a public infrastructure district, in accordance with the
17891791 880
17901792 governing document.
17911793 881
17921794 (b) A governing document approved by the legislative body or board of the creating
17931795 882
17941796 entity may provide for the board of a public infrastructure district to, upon a vacancy
17951797 883
17961798 on the board, appoint an individual to the board so long as the individual meets the
17971799 884
17981800 requirements to serve on a public infrastructure district board described in this
17991801 885
18001802 section.
18011803 886
18021804 (c) For public infrastructure districts not described in Subsection (1)(b), and except as
18031805 887
18041806 provided in Subsection (1)(d):
18051807 888
18061808 (i) if there is a vacancy on the board of a public infrastructure district, or a board
18071809 889
18081810 member provides notice to the legislative body or board of the creating entity of
18091811 890
18101812 the board member's intention to resign from the board, the legislative body or
18111813 891
18121814 board of the creating entity shall appoint a replacement board member within 45
18131815 892
18141816 days from the day on which the vacancy first occurs or the board member
18151817 893
18161818 provides notice of the board member's intent to resign; and
18171819 894
18181820 (ii) if a legislative body or board of the creating entity fails to fill a vacancy on the
18191821 895
18201822 board within the time period described in Subsection (1)(c)(i), the board of the
18211823 896
18221824 public infrastructure district may appoint an individual who is eligible to serve on
18231825 897
18241826 the board according to the requirements of this section to fill the board vacancy.
18251827 898
18261828 (d) If a public infrastructure district board position has transitioned from appointment to
18271829 899
18281830 election, as described in Subsection (4), and an elected board position becomes
18291831 900
18301832 vacant, the provisions of Section 20A-1-512 apply to fill the vacancy.
18311833 901
18321834 (2)(a) Unless otherwise limited in the governing document and except as provided in
18331835 902
18341836 Subsection (2)(b), the initial term of each member of the board is four years.
18351837 903
18361838 (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
18371839 904
18381840 board shall serve a six-year term so that, after the expiration of the initial term, the
18391841 905
18401842 term of approximately half the board members expires every two years.
18411843 906
18421844 (c) A board may elect that a majority of the board serve an initial term of six years.
18431845 907
18441846 (d) After the initial term, the term of each member of the board is four years.
18451847 908
18461848 (e) A member of the board who is appointed shall continue to serve on the board of the
18471849 909
18481850 public infrastructure district until a replacement board member is appointed.
18491851 910
18501852 (3)(a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to
18511853 911
18521854 be a resident within the boundaries of the public infrastructure district if:
1853-- 27 - S.B. 241 Enrolled Copy
18541855 912
18551856 (i) all of the surface property owners consent to the waiver of the residency
1857+- 27 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
18561858 913
18571859 requirement;
18581860 914
18591861 (ii) there are no residents within the boundaries of the public infrastructure district;
18601862 915
18611863 (iii) no qualified candidate timely files to be considered for appointment to the board;
18621864 916
18631865 or
18641866 917
18651867 (iv) no qualified individual files a declaration of candidacy for a board position in
18661868 918
18671869 accordance with Subsection 17B-1-306(5).
18681870 919
18691871 (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
18701872 920
18711873 residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board
18721874 921
18731875 member elected for a division or board position that has transitioned from an
18741876 922
18751877 appointed to an elected board member in accordance with this section.
18761878 923
18771879 (c) An individual who is not a resident within the boundaries of the public infrastructure
18781880 924
18791881 district may not serve as a board member unless the individual is:
18801882 925
18811883 (i) an owner of land or an agent or officer of the owner of land within the boundaries
18821884 926
18831885 of the public infrastructure district; and
18841886 927
18851887 (ii) a registered voter at the individual's primary residence.
18861888 928
18871889 (d) If the creating entity determines that a public infrastructure district is not anticipated
18881890 929
18891891 to have permanent residents within the public infrastructure district's boundaries, or is
18901892 930
18911893 anticipated to be primarily composed of non-residential property or non-primary
18921894 931
18931895 residential property, a governing document may allow the creating entity to continue
18941896 932
18951897 to appoint a property owner, or the agent of a property owner, to the public
18961898 933
18971899 infrastructure district board.
18981900 934
18991901 (e) A governing document may allow for a property owner to recommend a property
19001902 935
19011903 owner or a property owner's agent for appointment to the public infrastructure district
19021904 936
19031905 board in numbers proportional to the property owner's ownership of land, or value of
19041906 937
19051907 land, within a public infrastructure district.
19061908 938
19071909 (4)(a) A governing document may provide for a transition from legislative body
19081910 939
19091911 appointment under Subsection (1) to a method of election by registered voters based
19101912 940
19111913 upon milestones or events that the governing document identifies, including a
19121914 941
19131915 milestone for each division or individual board position providing that when the
19141916 942
19151917 milestone is reached:
19161918 943
19171919 (i) for a division, the registered voters of the division elect a member of the board in
19181920 944
19191921 place of an appointed member at the next municipal general election for the board
19201922 945
19211923 position; or
1922-- 28 - Enrolled Copy S.B. 241
19231924 946
19241925 (ii) for an at large board position established in the governing document, the
1926+- 28 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
19251927 947
19261928 registered voters of the public infrastructure district elect a member of the board in
19271929 948
19281930 place of an appointed member at the next municipal general election for the board
19291931 949
19301932 position.
19311933 950
19321934 (b) Regardless of whether a board member is elected under Subsection (4)(a), the
19331935 951
19341936 position of each remaining board member shall continue to be appointed under
19351937 952
19361938 Subsection (1) until the member's respective division or board position surpasses the
19371939 953
19381940 density milestone described in the governing document.
19391941 954
19401942 (5)(a) Subject to Subsection (5)(c), the board may, in the board's discretion but no more
19411943 955
19421944 frequently than every four years, reestablish the boundaries of each division so that
19431945 956
19441946 each division that has reached a milestone specified in the governing document, as
19451947 957
19461948 described in Subsection (4)(a), has, as nearly as possible, the same number of eligible
19471949 958
19481950 voters.
19491951 959
19501952 (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
19511953 960
19521954 consider existing or potential developments within the divisions that, when
19531955 961
19541956 completed, would increase or decrease the number of eligible voters within the
19551957 962
19561958 division.
19571959 963
19581960 (c) The governing document may prohibit the board from reestablishing, without the
19591961 964
19601962 consent of the creating entity, the division boundaries as described in Subsection
19611963 965
19621964 (5)(a).
19631965 966
19641966 (6) A public infrastructure district may not compensate a board member for the member's
19651967 967
19661968 service on the board under Section 17B-1-307 unless the board member is a resident
19671969 968
19681970 within the boundaries of the public infrastructure district.
19691971 969
19701972 (7) A governing document shall:
19711973 970
19721974 (a) include a boundary description and a map of the public infrastructure district;
19731975 971
19741976 (b) state the number of board members;
19751977 972
19761978 (c) describe any divisions of the public infrastructure district;
19771979 973
19781980 (d) establish any applicable property tax levy rate limit for the public infrastructure
19791981 974
19801982 district;
19811983 975
19821984 (e) establish any applicable limitation on the principal amount of indebtedness for the
19831985 976
19841986 public infrastructure district; and
19851987 977
19861988 (f) include other information that the public infrastructure district or the creating entity
19871989 978
19881990 determines to be necessary or advisable.
19891991 979
19901992 (8)(a) Except as provided in Subsection (8)(b), the board and the governing body of the
1991-- 29 - S.B. 241 Enrolled Copy
19921993 980
19931994 creating entity may amend a governing document by each adopting a resolution that
1995+- 29 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
19941996 981
19951997 approves the amended governing document.
19961998 982
19971999 (b) Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy
19982000 983
19992001 rate limitation requires the consent of[:]
20002002 984
20012003 [(i)] 100% of surface property owners within the boundaries of the public
20022004 985
20032005 infrastructure district[; and] .
20042006 986
20052007 [(ii) 100% of the registered voters, if any, within the boundaries of the public
20062008 987
20072009 infrastructure district.]
20082010 988
20092011 (9) A board member is not in violation of Section 67-16-9 if the board member:
20102012 989
20112013 (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
20122014 990
20132015 and files the disclosure with the creating entity:
20142016 991
20152017 (i) before any appointment or election; and
20162018 992
20172019 (ii) upon any significant change in the business relationship; and
20182020 993
20192021 (b) conducts the affairs of the public infrastructure district in accordance with this title
20202022 994
20212023 and any parameters described in the governing document.
20222024 995
20232025 (10) Notwithstanding any other provision of this section, the governing document governs
20242026 996
20252027 the number, appointment, and terms of board members of a public infrastructure district
20262028 997
20272029 created by the development authority.
20282030 998
20292031 Section 12. Section 17D-4-203 is amended to read:
20302032 999
20312033 17D-4-203 (Effective upon governor's approval). Public infrastructure district
20322034 1000
20332035 powers.
20342036 1001
20352037 A public infrastructure district:
20362038 1002
20372039 (1) has all of the authority conferred upon a special district under Section 17B-1-103; and
20382040 1003
20392041 (2) may:
20402042 1004
20412043 (a) issue negotiable bonds to pay:
20422044 1005
20432045 (i) all or part of the costs of acquiring, acquiring an interest in, improving, or
20442046 1006
20452047 extending any of the improvements, facilities, or property allowed under Section
20462048 1007
20472049 11-14-103;
20482050 1008
20492051 (ii) capital costs of improvements in an energy assessment area, as defined in Section
20502052 1009
20512053 11-42a-102, and other related costs, against the funds that the public infrastructure
20522054 1010
20532055 district will receive because of an assessment in an energy assessment area[, as
20542056 1011
20552057 defined in Section 11-42a-102];
20562058 1012
20572059 (iii) public improvements related to the provision of housing;
20582060 1013
20592061 (iv) capital costs related to public transportation;
2060-- 30 - Enrolled Copy S.B. 241
20612062 1014
20622063 (v) [for a public infrastructure district created by a development authority, ]the cost
2064+- 30 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
20632065 1015
20642066 of acquiring or financing public infrastructure and improvements; and
20652067 1016
20662068 (vi) for a public infrastructure district that is a subsidiary of or created by the Utah
20672069 1017
20682070 Inland Port Authority, the costs associated with a remediation project, as defined
20692071 1018
20702072 in Section 11-58-102;
20712073 1019
20722074 (b) enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal
20732075 1020
20742076 Cooperation Act, provided that the interlocal agreement may not expand the powers
20752077 1021
20762078 of the public infrastructure district, within the limitations of Title 11, Chapter 13,
20772079 1022
20782080 Interlocal Cooperation Act, without the consent of the creating entity;
20792081 1023
20802082 (c) notwithstanding any other provision in code, acquire completed or partially
20812083 1024
20822084 completed improvements, including related design and consulting services and
20832085 1025
20842086 related work product, for fair market value as reasonably determined by:
20852087 1026
20862088 (i) the board;
20872089 1027
20882090 (ii) the creating entity, if required in the governing document; or
20892091 1028
20902092 (iii) a surveyor or engineer that a public infrastructure district employs or engages to
20912093 1029
20922094 perform the necessary engineering services for and to supervise the construction
20932095 1030
20942096 or installation of the improvements;
20952097 1031
20962098 (d) contract with the creating entity for the creating entity to provide administrative
20972099 1032
20982100 services on behalf of the public infrastructure district, when agreed to by both parties,
20992101 1033
21002102 in order to achieve cost savings and economic efficiencies, at the discretion of the
21012103 1034
21022104 creating entity; [and]
21032105 1035
21042106 (e) for a public infrastructure district created by a development authority, or for a public
21052107 1036
21062108 infrastructure district created by a municipality and located in an urban renewal
21072109 1037
21082110 project area that includes some or all of an inactive industrial site:
21092111 1038
21102112 (i)(A) operate and maintain public infrastructure and improvements the district
21112113 1039
21122114 acquires or finances; and
21132115 1040
21142116 (B) use fees, assessments, or taxes to pay for the operation and maintenance of
21152117 1041
21162118 those public infrastructure and improvements; and
21172119 1042
21182120 (ii) issue bonds under Title 11, Chapter 42, Assessment Area Act; and
21192121 1043
21202122 (f) for a public infrastructure district that is a subsidiary of or created by the Utah Inland
21212123 1044
21222124 Port Authority, pay for costs associated with a remediation project, as defined in
21232125 1045
21242126 Section 11-58-102, of the Utah Inland Port Authority.
21252127 1046
21262128 Section 13. Section 17D-4-204 is amended to read:
21272129 1047
21282130 17D-4-204 (Effective upon governor's approval). Relation to other local entities.
2129-- 31 - S.B. 241 Enrolled Copy
21302131 1048
21312132 (1) Notwithstanding the creation of a public infrastructure district, the creating entity and
2133+- 31 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
21322134 1049
21332135 any other public entity, as applicable, retains all of the entity's authority over all zoning,
21342136 1050
21352137 planning, design specifications and approvals, and permitting within the public
21362138 1051
21372139 infrastructure district.
21382140 1052
21392141 (2) The inclusion of property within the boundaries of a public infrastructure district does
21402142 1053
21412143 not preclude the inclusion of the property within any other special district.
21422144 1054
21432145 (3)(a) All infrastructure that is connected to another public entity's system:
21442146 1055
21452147 (i) belongs to that public entity, regardless of inclusion within the boundaries of a
21462148 1056
21472149 public infrastructure district, unless the public infrastructure district and the public
21482150 1057
21492151 entity otherwise agree; and
21502152 1058
21512153 (ii) shall comply with the design, inspection requirements, and other standards of the
21522154 1059
21532155 public entity.
21542156 1060
21552157 (b) A public infrastructure district shall convey or transfer the infrastructure described in
21562158 1061
21572159 Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
21582160 1062
21592161 cost to the public entity.
21602162 1063
21612163 (4)(a) No public entity or private person shall receive funds from any portion of a public
21622164 1064
21632165 infrastructure district's property tax revenue without a resolution of the public
21642166 1065
21652167 infrastructure district's board authorizing the public entity or private person to receive
21662168 1066
21672169 the funds.
21682170 1067
21692171 (b) Subsection (4)(a) does not apply to the county's expenses related to collecting
21702172 1068
21712173 property tax in accordance with Title 59, Chapter 2, Part 12, Property Tax Act.
21722174 1069
21732175 (c) Subsection (4)(a) applies notwithstanding any provision in:
21742176 1070
21752177 (i) Title 17C, Limited Purpose Local Government Entities - Community
21762178 1071
21772179 Reinvestment Agency Act;
21782180 1072
21792181 (ii) Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
21802182 1073
21812183 (iii) a statute governing a development authority created under Utah Constitution,
21822184 1074
21832185 Article XI; or
21842186 1075
21852187 (iv) a provision of code related to the collection, distribution, or sharing of tax
21862188 1076
21872189 increment revenue, incremental property tax increases, or actions related to the
21882190 1077
21892191 collection, distribution, or sharing of tax increment revenue or incremental
21902192 1078
21912193 property tax increases.
21922194 1079
21932195 Section 14. Section 17D-4-301 is amended to read:
21942196 1080
21952197 17D-4-301 (Effective upon governor's approval). Public infrastructure district
21962198 1081
21972199 bonds.
2198-- 32 - Enrolled Copy S.B. 241
21992200 1082
22002201 (1)(a) Subject to Subsection (1)(b), a public infrastructure district may issue negotiable
2202+- 32 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
22012203 1083
22022204 bonds or other debt instruments for the purposes described in Section 17D-4-203, as
22032205 1084
22042206 provided in, as applicable:
22052207 1085
22062208 (i) Title 11, Chapter 14, Local Government Bonding Act;
22072209 1086
22082210 (ii) Title 11, Chapter 27, Utah Refunding Bond Act;
22092211 1087
22102212 (iii) Title 11, Chapter 42, Assessment Area Act;
22112213 1088
22122214 (iv) Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; and
22132215 1089
22142216 [(iv)] (v) this section.
22152217 1090
22162218 (b) A public infrastructure district created by a bonding political subdivision, as defined
22172219 1091
22182220 in Section 63C-25-101, may not issue bonds under this part unless the board first:
22192221 1092
22202222 (i) adopts a parameters resolution for the bonds that sets forth:
22212223 1093
22222224 (A) the maximum:
22232225 1094
22242226 (I) amount of bonds;
22252227 1095
22262228 (II) term; and
22272229 1096
22282230 (III) interest rate; and
22292231 1097
22302232 (B) the expected security for the bonds; and
22312233 1098
22322234 (ii) submits the parameters resolution for review and recommendation to the State
22332235 1099
22342236 Finance Review Commission created in Section 63C-25-201.
22352237 1100
22362238 (2) A public infrastructure district bond[:]
22372239 1101
22382240 [(a)] shall mature within 40 years of the date of issuance[; and] .
22392241 1102
22402242 [(b) may not be secured by any improvement or facility paid for by the public
22412243 1103
22422244 infrastructure district.]
22432245 1104
22442246 (3)(a) A public infrastructure district may issue a limited tax bond, in the same manner
22452247 1105
22462248 as a general obligation bond:
22472249 1106
22482250 (i)(A) with the consent of 100% of surface property owners within the boundaries
22492251 1107
22502252 of the public infrastructure district; and[ 100%]
22512253 1108
22522254 (B) with the consent of a majority of the registered voters, if any, within the
22532255 1109
22542256 boundaries of the proposed public infrastructure district as of the day on which
22552257 1110
22562258 the board finds that the consent of a majority of registered voters has been
22572259 1111
22582260 obtained; or
22592261 1112
22602262 (ii) upon approval of a majority of the registered voters within the boundaries of the
22612263 1113
22622264 public infrastructure district voting in an election held for that purpose under Title
22632265 1114
22642266 11, Chapter 14, Local Government Bonding Act.
22652267 1115
22662268 (b) A limited tax bond described in Subsection (3)(a):
2267-- 33 - S.B. 241 Enrolled Copy
22682269 1116
22692270 (i) is not subject to the limitation on a general obligation bond described in
2271+- 33 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
22702272 1117
22712273 Subsection 17B-1-1102(4); and
22722274 1118
22732275 (ii) is subject to a limitation, if any, on the principal amount of indebtedness as
22742276 1119
22752277 described in the governing document.
22762278 1120
22772279 (c) Unless limited tax bonds are initially purchased exclusively by one or more qualified
22782280 1121
22792281 institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, or an
22802282 1122
22812283 investment grade rating is obtained for the limited tax bonds by one or more
22822284 1123
22832285 nationally recognized rating agencies, the public infrastructure district may only issue
22842286 1124
22852287 limited tax bonds in denominations of not less than $500,000, and in integral
22862288 1125
22872289 multiples above $500,000 of not less than $1,000 each.
22882290 1126
22892291 (d)(i) Without any further election or consent of property owners or registered voters,
22902292 1127
22912293 a public infrastructure district may convert a limited tax bond described in
22922294 1128
22932295 Subsection (3)(a) to a general obligation bond if the principal amount of the
22942296 1129
22952297 related limited tax bond together with the principal amount of other related
22962298 1130
22972299 outstanding general obligation bonds of the public infrastructure district does not
22982300 1131
22992301 exceed 15% of the fair market value of taxable property in the public
23002302 1132
23012303 infrastructure district securing the general obligation bonds, determined by:
23022304 1133
23032305 (A) an appraisal from an appraiser who is a member of the Appraisal Institute that
23042306 1134
23052307 is addressed to the public infrastructure district or a financial institution; or
23062308 1135
23072309 (B) the most recent market value of the property from the assessor of the county in
23082310 1136
23092311 which the property is located.
23102312 1137
23112313 (ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
23122314 1138
23132315 sufficient to meet any statutory or constitutional election requirement necessary
23142316 1139
23152317 for the issuance of the limited tax bond and any general obligation bond to be
23162318 1140
23172319 issued in place of the limited tax bond upon meeting the requirements of this
23182320 1141
23192321 Subsection (3)(d).
23202322 1142
23212323 [(iii) A general obligation bond resulting from a conversion of a limited tax bond
23222324 1143
23232325 under this Subsection (3)(d) is not subject to the limitation on general obligation
23242326 1144
23252327 bonds described in Subsection 17B-1-1102(4)(a)(xii).]
23262328 1145
23272329 (e) A public infrastructure district that levies a property tax for payment of debt service
23282330 1146
23292331 on a limited tax bond issued under this section is not required to comply with the
23302332 1147
23312333 notice and hearing requirements of Section 59-2-919 unless the rate exceeds the rate
23322334 1148
23332335 established in:
23342336 1149
23352337 (i) Section 17D-4-303, except as provided in Subsection [(8)] (13);
2336-- 34 - Enrolled Copy S.B. 241
23372338 1150
23382339 (ii) the governing document; or
2340+- 34 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
23392341 1151
23402342 (iii) the documents relating to the issuance of the limited tax bond.
23412343 1152
23422344 (4)(a) For a public infrastructure district seeking the consent described in Subsection
23432345 1153
23442346 (3)(a)(i)(B), a public infrastructure district may:
23452347 1154
23462348 (i) post a class A notice under Section 63G-30-102 for at least 30 days; and
23472349 1155
23482350 (ii) mail a request for consent to each registered voter within the boundaries of the
23492351 1156
23502352 public infrastructure district according to voter registration records.
23512353 1157
23522354 (b) The request for consent described in Subsection (4)(a)(ii) shall include:
23532355 1158
23542356 (i) the purpose for the issuance of the bonds;
23552357 1159
23562358 (ii) the maximum principal amount of the bonds to be issued;
23572359 1160
23582360 (iii) the maximum tax rate proposed to be pledged for the repayment of the bonds;
23592361 1161
23602362 (iv) the words "For the issuance of bonds" and "Against the issuance of bonds," with
23612363 1162
23622364 appropriate boxes in which the voter may indicate the voter's choice; and
23632365 1163
23642366 (v) a return address and phone number where additional information may be obtained
23652367 1164
23662368 from the public infrastructure district.
23672369 1165
23682370 (c) Any registered voter who does not return the request for consent within 30 days of
23692371 1166
23702372 the day they are mailed to the voter is considered:
23712373 1167
23722374 (i) non-participatory in the request for consent; and
23732375 1168
23742376 (ii) shall not be included in a calculation to determine the percentage of registered
23752377 1169
23762378 voters who consent to the issuance of bonds.
23772379 1170
23782380 (d) If a majority of the registered voters who return the request for consent under this
23792381 1171
23802382 Subsection (4) indicate "For the issuance of bonds," or if no registered voters return
23812383 1172
23822384 the request for consent within the time frame described in Subsection (4)(c), the
23832385 1173
23842386 requirement described in Subsection (3)(a)(i)(B) is met.
23852387 1174
23862388 (e) Nothing in this Subsection (4):
23872389 1175
23882390 (i) prevents a public infrastructure district from obtaining the consent of registered
23892391 1176
23902392 voters for the issuance of a bond through another method; or
23912393 1177
23922394 (ii) shall be interpreted to affect or otherwise interfere with any consents of registered
23932395 1178
23942396 voters obtained before the effective date of this bill.
23952397 1179
23962398 (5) Nothing in this section shall be interpreted to:
23972399 1180
23982400 (a) prevent a public infrastructure district from withdrawing property from the public
23992401 1181
24002402 infrastructure district's boundaries where the property owners or registered voters
24012403 1182
24022404 associated with that property do not consent to the issuance of bonds or vote against
24032405 1183
24042406 the issuance of bonds; or
2405-- 35 - S.B. 241 Enrolled Copy
24062407 1184
24072408 (b) require a public infrastructure district to withdraw property from the public
2409+- 35 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
24082410 1185
24092411 infrastructure district's boundaries where the property owners or registered voters
24102412 1186
24112413 associated with that property do not consent to the issuance of bonds or vote against
24122414 1187
24132415 the issuance of bonds.
24142416 1188
24152417 (6)(a) Beginning on the effective date of this bill, once consent or approval is obtained
24162418 1189
24172419 under Subsection (3)(a), the consent or approval is valid for a period of 10 years from
24182420 1190
24192421 the day on which the board:
24202422 1191
24212423 (i) adopts a resolution or ordinance finding that the consent or approval is obtained;
24222424 1192
24232425 and
24242426 1193
24252427 (ii) publishes a notice of the resolution or ordinance described in Subsection (6)(a)(i)
24262428 1194
24272429 as a class A notice under Section 63G-30-102 for at least 30 days.
24282430 1195
24292431 (b) The tolling provisions of Section 11-14-301 apply during the 10-year period
24302432 1196
24312433 described in Subsection (6)(a).
24322434 1197
24332435 (c) After a public infrastructure district obtains consent or approval under Subsection
24342436 1198
24352437 (3)(a), the public infrastructure district does not require any additional consent to or
24362438 1199
24372439 approval of the issuance of bonds, and the subsequent annexation of property to, or
24382440 1200
24392441 withdrawal of property from, the public infrastructure district does not impact:
24402442 1201
24412443 (i) the validity of already obtained consent or approval;
24422444 1202
24432445 (ii) the 10-year period described in Subsection (6)(a); or
24442446 1203
24452447 (iii) any bond issued, or to be issued, pursuant to the consent or approval that was
24462448 1204
24472449 obtained under Subsection (3)(a).
24482450 1205
24492451 (d) Subsection (6)(a) does not invalidate or alter any consent or approval, or finding of
24502452 1206
24512453 consent or approval, that occurred before the effective date of this bill.
24522454 1207
24532455 (7)(a) [There ] Except as provided in Subsection (7)(b), there is no limitation on the
24542456 1208
24552457 duration of revenues that a public infrastructure district may receive to cover any
24562458 1209
24572459 shortfall in the payment of principal of and interest on a bond that the public
24582460 1210
24592461 infrastructure district issues.
24602462 1211
24612463 (b) A public infrastructure governing document or bond documents may limit the
24622464 1212
24632465 duration of time described in Subsection (7)(a).
24642466 1213
24652467 [(5)] (8) Section 11-42-106 governs any action to challenge an assessment imposed by a
24662468 1214
24672469 public infrastructure district or any proceeding to designate an assessment area
24682470 1215
24692471 conducted by a public infrastructure district.
24702472 1216
24712473 (9) A public infrastructure district is not a municipal corporation for purposes of the debt
24722474 1217
24732475 limitation of Utah Constitution, Article XIV, Section 4.
2474-- 36 - Enrolled Copy S.B. 241
24752476 1218
2476-[(6)] (10) [The ] Notwithstanding any other provision, the board may[,] directly or by
2477+[(6)] (10) [The ] Notwithstanding any other provision, the board may[,] directly, or by
2478+- 36 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
24772479 1219
24782480 resolution[,] delegate to one or more officers of the public infrastructure district the
24792481 1220
24802482 authority to:
24812483 1221
24822484 (a) in accordance and within the parameters set forth in a resolution adopted in
24832485 1222
24842486 accordance with Section 11-14-302, approve the final interest rate, price, principal
24852487 1223
24862488 amount, maturity, redemption features, and other terms of the bond;
24872489 1224
24882490 (b) approve and execute any document or contract relating to the issuance of a bond; and
24892491 1225
24902492 (c) approve any contract related to the acquisition and construction of the improvements,
24912493 1226
24922494 facilities, or property to be financed with a bond.
24932495 1227
24942496 (11)(a) Subject to Subsection (11)(b), before a public infrastructure district may issue a
24952497 1228
24962498 limited tax bond or assessment bond, the public infrastructure district shall engage a
24972499 1229
24982500 municipal advisor who, in connection with the issuance of bonds, shall deliver a
24992501 1230
25002502 certificate stating that:
25012503 1231
25022504 (i) the municipal advisor qualifies to serve as a municipal advisor, as defined in
25032505 1232
25042506 Section 17D-4-102, including the basis for the municipal advisor's qualifications;
25052507 1233
25062508 (ii) the structure of the limited tax bond or assessment bond the public infrastructure
25072509 1234
25082510 district is about to issue is a reasonable structure, as of the date of the issuance of
25092511 1235
25102512 the limited tax bond or assessment bond, as applicable; and
25112513 1236
25122514 (iii) the interest rate of the limited tax bond or assessment bond the public
25132515 1237
25142516 infrastructure district is about to offer is a reasonable market rate, as of the date of
25152517 1238
25162518 the issuance of the limited tax bond or assessment bond, as applicable.
25172519 1239
25182520 (b) The provisions of this Subsection (11) do not apply to a public infrastructure district
25192521 1240
25202522 created by a development authority.
25212523 1241
25222524 [(7)] (12)(a) Any person may contest the legality of the issuance of a public
25232525 1242
25242526 infrastructure district bond or any provisions for the security and payment of the bond
25252527 1243
25262528 for a period of 30 days after:
25272529 1244
25282530 (i) [publication of ] posting the resolution authorizing the bond as a class A notice
25292531 1245
25302532 under Section 63G-30-102; or
25312533 1246
25322534 (ii) [publication of ] posting a notice of bond containing substantially the items
25332535 1247
25342536 required under Subsection 11-14-316(2) as a class A notice under Section
25352537 1248
25362538 63G-30-102.
25372539 1249
25382540 (b) After the 30-day period described in Subsection [(7)(a)] (12)(a), no person may bring
25392541 1250
25402542 a lawsuit or other proceeding contesting the regularity, formality, or legality of the
25412543 1251
25422544 bond for any reason.
2543-- 37 - S.B. 241 Enrolled Copy
25442545 1252
25452546 [(8)] (13)(a) In the event of any statutory change in the methodology of assessment or
2547+- 37 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
25462548 1253
25472549 collection of property taxes in a manner that reduces the amounts which are devoted
25482550 1254
25492551 or pledged to the repayment of limited tax bonds, a public infrastructure district may
25502552 1255
25512553 charge a rate sufficient to receive the amount of property taxes or assessment the
25522554 1256
25532555 public infrastructure district would have received before the statutory change in order
25542556 1257
25552557 to pay the debt service on outstanding limited tax bonds.
25562558 1258
25572559 (b) The rate increase described in Subsection [(8)(a)] (13)(a) may exceed the limit
25582560 1259
25592561 described in Section 17D-4-303.
25602562 1260
25612563 (c) The public infrastructure district may charge the rate increase described in
25622564 1261
25632565 Subsection [(8)(a)] (13)(a) until the bonds, including any associated refunding bonds,
25642566 1262
25652567 or other securities, together with applicable interest, are fully met and discharged.
25662568 1263
25672569 [(9)] (14) No later than 60 days after the closing of any bonds by a public infrastructure
25682570 1264
25692571 district created by a bonding political subdivision, as defined in Section 63C-25-101, the
25702572 1265
25712573 public infrastructure district shall report the bond issuance, including the amount of the
25722574 1266
25732575 bonds, terms, interest rate, and security, to:
25742576 1267
25752577 (a) the Executive Appropriations Committee; and
25762578 1268
25772579 (b) the State Finance Review Commission created in Section 63C-25-201.
25782580 1269
25792581 Section 15. Section 17D-4-302 is amended to read:
25802582 1270
25812583 17D-4-302 (Effective upon governor's approval). Fees.
25822584 1271
25832585 (1) [A] In addition to any fees authorized by Title 17B, Chapter 1, Provisions Applicable
25842586 1272
25852587 to All Special Districts, a public infrastructure district may charge a fee [or other charge ]
25862588 1273
25872589 for an administrative service that the public infrastructure district provides, to pay some
25882590 1274
25892591 or all of the public infrastructure district's:
25902592 1275
25912593 [(1)] (a) costs of acquiring, improving, or extending improvements, facilities, or
25922594 1276
25932595 property; or
25942596 1277
25952597 [(2)] (b) costs associated with the enforcement of a legal remedy.
25962598 1278
25972599 (2) The board of a public infrastructure district shall establish fees by a fee schedule in
25982600 1279
25992601 ordinance or resolution.
26002602 1280
26012603 Section 16. Section 17D-4-303 is amended to read:
26022604 1281
26032605 17D-4-303 (Effective upon governor's approval). Limits on public infrastructure
26042606 1282
26052607 district property tax levy -- Notice requirements.
26062608 1283
26072609 (1) The property tax levy of a public infrastructure district, for all purposes, including
26082610 1284
26092611 payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable
26102612 1285
26112613 value of taxable property in the district.
2612-- 38 - Enrolled Copy S.B. 241
26132614 1286
26142615 (2) The limitation described in Subsection (1) does not apply to the levy by the public
2616+- 38 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
26152617 1287
26162618 infrastructure district to pay principal of and interest on a general obligation bond that
26172619 1288
26182620 the public infrastructure district issues.
26192621 1289
26202622 (3)(a) Within 30 days after the day on which the lieutenant governor issues a certificate
26212623 1290
26222624 of incorporation for the public infrastructure district under Section 67-1a-6.5, the
26232625 1291
26242626 board shall record a notice with the recorder of the county in which property within
26252627 1292
26262628 the public infrastructure district is located.
26272629 1293
26282630 (b) The notice described in Subsection (3)(a) shall:
26292631 1294
26302632 (i) contain a description of the boundaries of the public infrastructure district;
26312633 1295
26322634 (ii) state that a copy of the governing document is on file at the office of the creating
26332635 1296
26342636 entity;
26352637 1297
26362638 (iii) state that the public infrastructure district may finance and repay infrastructure
26372639 1298
26382640 and other improvements through the levy of a property tax; and
26392641 1299
26402642 (iv) state the maximum rate that the public infrastructure district may levy.
26412643 1300
26422644 (c) The effective date of the public infrastructure district for purposes of assessing
26432645 1301
26442646 property tax is the day on which the notice is recorded in the office of the recorder of
26452647 1302
26462648 each county in which the public infrastructure district is located, as described in
26472649 1303
26482650 Section 59-2-305.5.
26492651 1304
26502652 (4) If the board fails to record a notice as described in Subsection (3):
26512653 1305
26522654 (a) the public infrastructure district is still created as of the day the lieutenant governor
26532655 1306
26542656 issues a certificate of incorporation for the public infrastructure district;
26552657 1307
26562658 (b) any bonds issued by the public infrastructure district are still valid; and
26572659 1308
26582660 (c) the public infrastructure district may not levy a tax or levy or collect a fee until the
26592661 1309
26602662 board records the notice described in Subsection (3).
26612663 1310
26622664 Section 17. Section 17D-4-305 is amended to read:
26632665 1311
26642666 17D-4-305 (Effective upon governor's approval). Action to contest tax, fee, or
26652667 1312
26662668 proceeding -- Requirements -- Exclusive remedy -- Bonds, taxes, and fees incontestable.
26672669 1313
26682670 (1) A person who contests a tax or fee imposed by a public infrastructure district or any
26692671 1314
26702672 proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring
26712673 1315
26722674 a civil action against the public infrastructure district or the creating entity to:
26732675 1316
26742676 (a) set aside the proceeding; or
26752677 1317
26762678 (b) enjoin the levy, imposition, or collection of a tax or fee.
26772679 1318
26782680 (2) The person bringing an action described in Subsection (1):
26792681 1319
26802682 (a) notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, shall bring the
2681-- 39 - S.B. 241 Enrolled Copy
26822683 1320
26832684 action in the county in which the public infrastructure district is located if the person
2685+- 39 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
26842686 1321
26852687 brings the action in the district court; and
26862688 1322
26872689 (b) may not bring the action against or serve a summons relating to the action on the
26882690 1323
26892691 public infrastructure district more than 30 days after the [effective date of the] day on
26902692 1324
26912693 which:
26922694 1325
26932695 (i) the creation of the public infrastructure district is effective, if the challenge is to
26942696 1326
26952697 the creation of the public infrastructure district;[ or]
26962698 1327
26972699 (ii) the board of the public infrastructure district adopts a resolution or ordinance
26982700 1328
26992701 establishing a tax or fee, if the challenge is to a tax or fee[.] ; or
27002702 1329
27012703 (iii) the board of the public infrastructure district adopts a resolution or ordinance
27022704 1330
27032705 annexing property to, or withdrawing property from, the public infrastructure
27042706 1331
27052707 district, if the challenge is to an annexation or withdrawal.
27062708 1332
27072709 (3) An action under Subsection (1) is the exclusive remedy of a person who:
27082710 1333
27092711 (a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
27102712 1334
27112713 infrastructure district, levy a tax, or impose a fee; or
27122714 1335
27132715 (b) challenges a bondholder's right to repayment.
27142716 1336
27152717 (4) After the expiration of the 30-day period described in Subsection (2)(b):
27162718 1337
27172719 (a) a bond issued or to be issued with respect to a public infrastructure district and any
27182720 1338
27192721 tax levied or fee imposed becomes incontestable against any person who has not
27202722 1339
27212723 brought an action and served a summons in accordance with this section;
27222724 1340
27232725 (b) a person may not bring a suit to:
27242726 1341
27252727 (i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
27262728 1342
27272729 enforcement of a tax or fee; or
27282730 1343
27292731 (ii) attack or question in any way the legality of a bond, tax, or fee; and
27302732 1344
27312733 (c) a court may not inquire into the matters described in Subsection (4)(b).
27322734 1345
27332735 (5)(a) This section does not insulate a public infrastructure district from a claim of
27342736 1346
27352737 misuse of funds after the expiration of the 30-day period described in Subsection
27362738 1347
27372739 (2)(b).
27382740 1348
27392741 (b)(i) Except as provided in Subsection (5)(b)(ii), an action in the nature of
27402742 1349
27412743 mandamus is the sole form of relief available to a party challenging the misuse of
27422744 1350
27432745 funds.
27442746 1351
27452747 (ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
27462748 1352
27472749 charges against or the prosecution of a party for the misuse of funds.
27482750 1353
27492751 (6) If there is a conflict between a provision in Section 17D-4-301 and a provision in this
2750-- 40 - Enrolled Copy S.B. 241
27512752 1354
27522753 section, the provision in Section 17D-4-301 supersedes the conflicting provision in this
2754+- 40 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
27532755 1355
27542756 section.
27552757 1356
27562758 Section 18. Section 67-1a-6.5 is amended to read:
27572759 1357
27582760 67-1a-6.5 (Effective upon governor's approval). Certification of local entity
27592761 1358
27602762 boundary actions -- Definitions -- Notice requirements -- Electronic copies -- Filing.
27612763 1359
2762-(1) As used in this section:
2764+(1) As used in this section[:]
27632765 1360
27642766 (a) "Applicable certificate" means:
27652767 1361
27662768 (i) for the impending incorporation of a city, town, special district, conservation
27672769 1362
27682770 district, [or ]incorporation of a special district from a reorganized special service
27692771 1363
27702772 district, or public infrastructure district, a certificate of incorporation;
27712773 1364
27722774 (ii) for the impending creation of a county, school district, special service district,
27732775 1365
27742776 community reinvestment agency, or interlocal entity, a certificate of creation;
27752777 1366
27762778 (iii) for the impending annexation of territory to an existing local entity, a certificate
27772779 1367
27782780 of annexation;
27792781 1368
27802782 (iv) for the impending withdrawal or disconnection of territory from an existing local
27812783 1369
27822784 entity, a certificate of withdrawal or disconnection, respectively;
27832785 1370
27842786 (v) for the impending consolidation of multiple local entities, a certificate of
27852787 1371
27862788 consolidation;
27872789 1372
27882790 (vi) for the impending division of a local entity into multiple local entities, a
27892791 1373
27902792 certificate of division;
27912793 1374
27922794 (vii) for the impending adjustment of a common boundary between local entities, a
27932795 1375
27942796 certificate of boundary adjustment; and
27952797 1376
27962798 (viii) for the impending dissolution of a local entity, a certificate of dissolution.
27972799 1377
27982800 (b) "Approved final local entity plat" means a final local entity plat, as defined in
27992801 1378
28002802 Section 17-23-20, that has been approved under Section 17-23-20 as a final local
28012803 1379
28022804 entity plat by the county surveyor.
28032805 1380
28042806 (c) "Approving authority" has the same meaning as defined in Section 17-23-20.
28052807 1381
28062808 (d) "Boundary action" has the same meaning as defined in Section 17-23-20.
28072809 1382
28082810 (e) "Center" means the Utah Geospatial Resource Center created under Section
28092811 1383
28102812 63A-16-505.
28112813 1384
28122814 (f) "Community reinvestment agency" has the same meaning as defined in Section
28132815 1385
28142816 17C-1-102.
28152817 1386
28162818 (g) "Conservation district" has the same meaning as defined in Section 17D-3-102.
28172819 1387
28182820 (h) "Interlocal entity" has the same meaning as defined in Section 11-13-103.
2819-- 41 - S.B. 241 Enrolled Copy
28202821 1388
28212822 (i) "Local entity" means a county, city, town, school district, special district, community
2823+- 41 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
28222824 1389
28232825 reinvestment agency, special service district, conservation district, or interlocal entity.
28242826 1390
28252827 (j) "Notice of an impending boundary action" means a written notice, as described in
28262828 1391
28272829 Subsection (3), that provides notice of an impending boundary action.
28282830 1392
28292831 (k) "Special district" means the same as that term is defined in Section 17B-1-102.
28302832 1393
28312833 (l) "Special service district" means the same as that term is defined in Section 17D-1-102.
28322834 1394
28332835 (2) Within 10 days after receiving a notice of an impending boundary action, the lieutenant
28342836 1395
28352837 governor shall:
28362838 1396
28372839 (a)(i) issue the applicable certificate, if:
28382840 1397
28392841 (A) the lieutenant governor determines that the notice of an impending boundary
28402842 1398
28412843 action meets the requirements of Subsection (3); and
28422844 1399
28432845 (B) except in the case of an impending local entity dissolution, the notice of an
28442846 1400
28452847 impending boundary action is accompanied by an approved final local entity
28462848 1401
28472849 plat;
28482850 1402
28492851 (ii) send the applicable certificate to the local entity's approving authority;
28502852 1403
28512853 (iii) return the original of the approved final local entity plat to the local entity's
28522854 1404
28532855 approving authority;
28542856 1405
28552857 (iv) send a copy of the applicable certificate and approved final local entity plat to:
28562858 1406
28572859 (A) the State Tax Commission;
28582860 1407
28592861 (B) the center; and
28602862 1408
28612863 (C) the county assessor, county surveyor, county auditor, and county attorney of
28622864 1409
28632865 each county in which the property depicted on the approved final local entity
28642866 1410
28652867 plat is located; and
28662868 1411
28672869 (v) send a copy of the applicable certificate to the state auditor, if the boundary action
28682870 1412
28692871 that is the subject of the applicable certificate is:
28702872 1413
28712873 (A) the incorporation or creation of a new local entity;
28722874 1414
28732875 (B) the consolidation of multiple local entities;
28742876 1415
28752877 (C) the division of a local entity into multiple local entities; or
28762878 1416
28772879 (D) the dissolution of a local entity; or
28782880 1417
28792881 (b)(i) send written notification to the approving authority that the lieutenant governor
28802882 1418
28812883 is unable to issue the applicable certificate, if:
28822884 1419
28832885 (A) the lieutenant governor determines that the notice of an impending boundary
28842886 1420
28852887 action does not meet the requirements of Subsection (3); or
28862888 1421
28872889 (B) the notice of an impending boundary action is:
2888-- 42 - Enrolled Copy S.B. 241
28892890 1422
28902891 (I) not accompanied by an approved final local entity plat; or
2892+- 42 - 03-03 09:03 2nd Sub. (Salmon) S.B. 241
28912893 1423
28922894 (II) accompanied by a plat or final local entity plat that has not been approved
28932895 1424
28942896 as a final local entity plat by the county surveyor under Section 17-23-20;
28952897 1425
28962898 and
28972899 1426
28982900 (ii) explain in the notification under Subsection (2)(b)(i) why the lieutenant governor
28992901 1427
29002902 is unable to issue the applicable certificate.
29012903 1428
29022904 (3) Each notice of an impending boundary action shall:
29032905 1429
29042906 (a) be directed to the lieutenant governor;
29052907 1430
29062908 (b) contain the name of the local entity or, in the case of an incorporation or creation,
29072909 1431
29082910 future local entity, whose boundary is affected or established by the boundary action;
29092911 1432
29102912 (c) describe the type of boundary action for which an applicable certificate is sought;
29112913 1433
29122914 (d) be accompanied by a letter from the Utah State Retirement Office, created under
29132915 1434
29142916 Section 49-11-201, to the approving authority that identifies the potential provisions
29152917 1435
29162918 under Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity
29172919 1436
29182920 shall comply with, related to the boundary action, if the boundary action is an
29192921 1437
29202922 impending incorporation or creation of a local entity that may result in the
29212923 1438
29222924 employment of personnel; and
29232925 1439
29242926 (e)(i) contain a statement, signed and verified by the approving authority, certifying
29252927 1440
29262928 that all requirements applicable to the boundary action have been met; or
29272929 1441
29282930 (ii) in the case of the dissolution of a municipality, be accompanied by a certified
29292931 1442
29302932 copy of the court order approving the dissolution of the municipality.
29312933 1443
29322934 (4) The lieutenant governor may require the approving authority to submit a paper or
29332935 1444
29342936 electronic copy of a notice of an impending boundary action and approved final local
29352937 1445
29362938 entity plat in conjunction with the filing of the original of those documents.
29372939 1446
29382940 (5)(a) The lieutenant governor shall:
29392941 1447
29402942 (i) keep, index, maintain, and make available to the public each notice of an
29412943 1448
29422944 impending boundary action, approved final local entity plat, applicable certificate,
29432945 1449
29442946 and other document that the lieutenant governor receives or generates under this
29452947 1450
29462948 section;
29472949 1451
29482950 (ii) make a copy of each document listed in Subsection (5)(a)(i) available on the
29492951 1452
29502952 Internet for 12 months after the lieutenant governor receives or generates the
29512953 1453
29522954 document;
29532955 1454
29542956 (iii) furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any
29552957 1455
29562958 person who requests a paper copy; and
2957-- 43 - S.B. 241 Enrolled Copy
29582959 1456
29592960 (iv) furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to
2961+- 43 - 2nd Sub. (Salmon) S.B. 241 03-03 09:03
29602962 1457
29612963 any person who requests a certified copy.
29622964 1458
29632965 (b) The lieutenant governor may charge a reasonable fee for a paper copy or certified
29642966 1459
29652967 copy of a document that the lieutenant governor provides under this Subsection (5).
29662968 1460
29672969 (6) The lieutenant governor's issuance of a certificate of creation for an infrastructure
29682970 1461
29692971 financing district constitutes the state's approval of the creation of the infrastructure
29702972 1462
29712973 financing district.
29722974 1463
29732975 Section 19. Effective Date.
29742976 1464
29752977 This bill takes effect:
29762978 1465
29772979 (1) except as provided in Subsection (2), May 7, 2025; or
29782980 1466
29792981 (2) if approved by two-thirds of all members elected to each house:
29802982 1467
29812983 (a) upon approval by the governor;
29822984 1468
29832985 (b) without the governor's signature, the day following the constitutional time limit of
29842986 1469
29852987 Utah Constitution, Article VII, Section 8; or
29862988 1470
29872989 (c) in the case of a veto, the date of veto override.
29882990 - 44 -