UT
Utah Senate Bill SB0322

Utah 2025 Regular Session

Utah Senate Bill SB0322 Compare Versions

Only one version of the bill is available at this time.
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11 02-21 15:21 S.B. 322
22 1
33 Municipality Annexation and Incorporation Amendments
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Calvin R. Musselman
77 House Sponsor:
88 2
99
1010 3
1111 LONG TITLE
1212 4
1313 General Description:
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1515 This bill modifies provisions related to municipal annexation and incorporation.
1616 6
1717 Highlighted Provisions:
1818 7
1919 This bill:
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2121 ▸ requires an annexation policy plan to include a statement regarding:
2222 9
2323 ● the current county zoning of an unincorporated area proposed for annexation; and
2424 10
2525 ● the zoning likely to be applied, should the unincorporated area be annexed to the
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2727 municipality, to the unincorporated area proposed for annexation;
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2929 ▸ prohibits a municipality from zoning in an affected area in a manner that results in the
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3131 affected area being utilized in a more restrictive way than before the affected area was
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3333 annexed into the municipality, for at least one year following the date of annexation;
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3535 ▸ requires a municipal legislative body to establish by ordinance a process to compensate a
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3737 property owner for a reduction in property value following an annexation or
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3939 incorporation and subsequent zoning for a more restrictive use of the property; and
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4141 ▸ makes technical and conforming changes.
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4343 Money Appropriated in this Bill:
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4545 None
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4747 Other Special Clauses:
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4949 None
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5151 Utah Code Sections Affected:
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5353 AMENDS:
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5555 10-2-401.5, as last amended by Laws of Utah 2021, Chapter 112
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5757 10-2-425, as last amended by Laws of Utah 2024, Chapters 342, 438
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5959 ENACTS:
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6161 10-2-430, Utah Code Annotated 1953
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6363 10-2a-221, Utah Code Annotated 1953
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6565 10-2a-511, Utah Code Annotated 1953
6666 S.B. 322 S.B. 322 02-21 15:21
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6868
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7070 Be it enacted by the Legislature of the state of Utah:
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7272 Section 1. Section 10-2-401.5 is amended to read:
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7474 10-2-401.5 . Annexation policy plan.
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7676 (1) No municipality may annex an unincorporated area located within a specified county
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7878 unless the municipality has adopted an annexation policy plan as provided in this section.
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8080 (2) To adopt an annexation policy plan:
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8282 (a) the planning commission shall:
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8484 (i) prepare a proposed annexation policy plan that complies with Subsection (3);
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8686 (ii) hold a public meeting to allow affected entities to examine the proposed
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8888 annexation policy plan and to provide input on it;
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9090 (iii) provide notice of the public meeting under Subsection (2)(a)(ii) to each affected
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9292 entity at least 14 days before the meeting;
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9494 (iv) accept and consider any additional written comments from affected entities until
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9696 10 days after the public meeting under Subsection (2)(a)(ii);
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9898 (v) before holding the public hearing required under Subsection (2)(a)(vi), make any
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100100 modifications to the proposed annexation policy plan the planning commission
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102102 considers appropriate, based on input provided at or within 10 days after the
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104104 public meeting under Subsection (2)(a)(ii);
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106106 (vi) hold a public hearing on the proposed annexation policy plan;
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108108 (vii) provide reasonable public notice, including notice to each affected entity, of the
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110110 public hearing required under Subsection (2)(a)(vi) at least 14 days before the date
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112112 of the hearing;
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114114 (viii) make any modifications to the proposed annexation policy plan the planning
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116116 commission considers appropriate, based on public input provided at the public
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118118 hearing; and
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120120 (ix) submit the planning commission's recommended annexation policy plan to the
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122122 municipal legislative body; and
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124124 (b) the municipal legislative body shall:
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126126 (i) hold a public hearing on the annexation policy plan recommended by the planning
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128128 commission;
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130130 (ii) provide reasonable notice, including notice to each affected entity, of the public
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132132 hearing at least 14 days before the date of the hearing;
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134134 (iii) after the public hearing under Subsection (2)(b)(ii), make any modifications to
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137137 the recommended annexation policy plan that the legislative body considers
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139139 appropriate; and
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141141 (iv) adopt the recommended annexation policy plan, with or without modifications.
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143143 (3) Each annexation policy plan shall include:
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145145 (a) a map of the expansion area which may include territory located outside the county
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147147 in which the municipality is located;
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149149 (b) a statement of the specific criteria that will guide the municipality's decision whether
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151151 or not to grant future annexation petitions, addressing matters relevant to those
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153153 criteria including:
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155155 (i) the character of the community;
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157157 (ii) the need for municipal services in developed and undeveloped unincorporated
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159159 areas;
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161161 (iii) the municipality's plans for extension of municipal services;
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163163 (iv) how the services will be financed;
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165165 (v) an estimate of the tax consequences to residents both currently within the
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167167 municipal boundaries and in the expansion area;[ and]
168168 81
169169 (vi) the interests of all affected entities;
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171171 (vii) the current county zoning of the unincorporated area proposed for annexation;
172172 83
173173 and
174174 84
175175 (viii) the zoning likely to be applied, should the unincorporated area be annexed to
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177177 the municipality, to the unincorporated area proposed for annexation;
178178 86
179179 (c) justification for excluding from the expansion area any area containing urban
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181181 development within 1/2 mile of the municipality's boundary; and
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183183 (d) a statement addressing any comments made by affected entities at or within 10 days
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185185 after the public meeting under Subsection (2)(a)(ii).
186186 90
187187 (4) In developing, considering, and adopting an annexation policy plan, the planning
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189189 commission and municipal legislative body shall:
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191191 (a) attempt to avoid gaps between or overlaps with the expansion areas of other
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193193 municipalities;
194194 94
195195 (b) consider population growth projections for the municipality and adjoining areas for
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197197 the next 20 years;
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199199 (c) consider current and projected costs of infrastructure, urban services, and public
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201201 facilities necessary:
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203203 (i) to facilitate full development of the area within the municipality; and
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206206 (ii) to expand the infrastructure, services, and facilities into the area being considered
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208208 for inclusion in the expansion area;
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210210 (d) consider, in conjunction with the municipality's general plan, the need over the next
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212212 20 years for additional land suitable for residential, commercial, and industrial
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214214 development;
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216216 (e) consider the reasons for including agricultural lands, forests, recreational areas, and
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218218 wildlife management areas in the municipality; and
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220220 (f) be guided by the principles set forth in Subsection 10-2-403(5).
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222222 (5) Within 30 days after adopting an annexation policy plan, the municipal legislative body
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224224 shall submit a copy of the plan to the legislative body of each county in which any of the
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226226 municipality's expansion area is located.
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228228 (6) Nothing in this chapter may be construed to prohibit or restrict two or more
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230230 municipalities in specified counties from negotiating and cooperating with respect to
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232232 defining each municipality's expansion area under an annexation policy plan.
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234234 Section 2. Section 10-2-425 is amended to read:
235235 114
236236 10-2-425 . Filing of notice and plat -- Recording and notice requirements --
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238238 Effective date of annexation or boundary adjustment.
239239 116
240240 (1) As used in this section:
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242242 (a) "Annexation action" means:
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244244 (i) the enactment of an ordinance annexing an unincorporated area;
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246246 (ii) an election approving an annexation under Section 10-2a-404;
247247 120
248248 (iii) the enactment of an ordinance approving a boundary adjustment by each of the
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250250 municipalities involved in the boundary adjustment; or
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252252 (iv) an automatic annexation that occurs on July 1, 2027 under Subsection 10-2-429
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254254 (2)(b).
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256256 (b) "Applicable legislative body" means:
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258258 (i) the legislative body of each municipality that enacts an ordinance under this part
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260260 approving the annexation of an unincorporated area or the adjustment of a
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262262 boundary; or
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264264 (ii) the legislative body of a municipality to which an unincorporated island is
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266266 automatically annexed under Section 10-2-429.
267267 130
268268 (2) An applicable legislative body shall:
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270270 (a) within 60 days after an annexation action, file with the lieutenant governor:
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272272 (i) a notice of an impending boundary action, as defined in Section 67-1a-6.5, that
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274274 133
275275 meets the requirements of Subsection 67-1a-6.5(3);
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277277 (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and
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279279 (iii) if applicable, a copy of an agreement under Subsection 10-2-429(2)(a)(ii);
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281281 (b) upon the lieutenant governor's issuance of a certificate of annexation or boundary
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283283 adjustment, as the case may be, under Section 67-1a-6.5:
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285285 (i) if the annexed area or area subject to the boundary adjustment is located within the
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287287 boundary of a single county, submit to the recorder of that county the original
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289289 notice of an impending boundary action, the original certificate of annexation or
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291291 boundary adjustment, the original approved final local entity plat, and a certified
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293293 copy of the ordinance approving the annexation or boundary adjustment; or
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295295 (ii) if the annexed area or area subject to the boundary adjustment is located within
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297297 the boundaries of more than a single county:
298298 145
299299 (A) submit to the recorder of one of those counties the original notice of
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301301 impending boundary action, the original certificate of annexation or boundary
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303303 adjustment, and the original approved final local entity plat;
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305305 (B) submit to the recorder of each other county a certified copy of the documents
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307307 listed in Subsection (2)(b)(ii)(A); and
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309309 (C) submit a certified copy of the ordinance approving the annexation or boundary
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311311 adjustment to each county described in Subsections (2)(b)(ii)(A) and (B); and
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313313 (c) concurrently with Subsection (2)(b):
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315315 (i) send notice of the annexation or boundary adjustment to each affected entity; and
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317317 (ii) in accordance with Section 53-2d-514, file with the Bureau of Emergency
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319319 Medical Services:
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321321 (A) a certified copy of the ordinance approving the annexation of an
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323323 unincorporated area or the adjustment of a boundary, if applicable; and
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325325 (B) a copy of the approved final local entity plat.
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327327 (3) If an annexation or boundary adjustment under this part also causes an automatic
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329329 annexation to a special district under Section 17B-1-416 or an automatic withdrawal
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331331 from a special district under Subsection 17B-1-502(2), the municipal legislative body
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333333 shall, as soon as practicable after the lieutenant governor issues a certificate of
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335335 annexation or boundary adjustment under Section 67-1a-6.5, send notice of the
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337337 annexation or boundary adjustment to the special district to which the annexed area is
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339339 automatically annexed or from which the annexed area is automatically withdrawn.
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341341 (4) Each notice required under Subsection [(1)] (2) relating to an annexation or boundary
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344344 adjustment shall state the effective date of the annexation or boundary adjustment, as
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346346 determined under Subsection (5).
347347 169
348348 (5) An annexation or boundary adjustment under this part is completed and takes effect:
349349 170
350350 (a) for the annexation of or boundary adjustment affecting an area located in a county of
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352352 the first class, except for an annexation under Section 10-2-418:
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354354 (i) July 1 following the lieutenant governor's issuance under Section 67-1a-6.5 of a
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356356 certificate of annexation or boundary adjustment if:
357357 174
358358 (A) the certificate is issued during the preceding November 1 through April 30;
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360360 and
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362362 (B) the requirements of Subsection (2) are met before that July 1; or
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364364 (ii) January 1 following the lieutenant governor's issuance under Section 67-1a-6.5 of
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366366 a certificate of annexation or boundary adjustment if:
367367 179
368368 (A) the certificate is issued during the preceding May 1 through October 31; and
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370370 (B) the requirements of Subsection (2) are met before that January 1; and
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372372 (b) subject to Subsection (6), for all other annexations and boundary adjustments, the
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374374 date of the lieutenant governor's issuance, under Section 67-1a-6.5, of a certificate of
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376376 annexation or boundary adjustment.
377377 184
378378 (6)(a) As used in this Subsection (6) and Subsection (7):
379379 185
380380 (i) "Affected area" means:
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382382 (A) in the case of an annexation, the annexed area; and
383383 187
384384 (B) in the case of a boundary adjustment, any area that, as a result of the boundary
385385 188
386386 adjustment, is moved from within the boundary of one municipality to within
387387 189
388388 the boundary of another municipality.
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390390 (ii) "Annexing municipality" means:
391391 191
392392 (A) in the case of an annexation, the municipality that annexes an unincorporated
393393 192
394394 area or the municipality to which an unincorporated island is automatically
395395 193
396396 annexed under Section 10-2-429; and
397397 194
398398 (B) in the case of a boundary adjustment, a municipality whose boundary includes
399399 195
400400 an affected area as a result of a boundary adjustment.
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402402 (b) The effective date of an annexation or boundary adjustment for purposes of assessing
403403 197
404404 property within an affected area is governed by Section 59-2-305.5.
405405 198
406406 (c) Until the documents listed in Subsection (2)(b)(i) are recorded in the office of the
407407 199
408408 recorder of each county in which the property is located, a municipality may not:
409409 200
410410 (i) levy or collect a property tax on property within an affected area;
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412412 201
413413 (ii) levy or collect an assessment on property within an affected area; or
414414 202
415415 (iii) charge or collect a fee for service provided to property within an affected area,
416416 203
417417 unless the municipality was charging and collecting the fee within that area
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419419 immediately before annexation.
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421421 (7) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1), for at least one year
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423423 after the effective date of an annexation, a legislative body may not amend a zoning
424424 207
425425 district in an affected area in a manner that results in the affected area being utilized in a
426426 208
427427 more restrictive way than before the affected area was annexed into the municipality.
428428 209
429429 Section 3. Section 10-2-430 is enacted to read:
430430 210
431431 10-2-430 . Process to compensate a property for a reduction in property value
432432 211
433433 following annexation.
434434 212
435435 A municipal legislative body shall establish by ordinance a process for the municipality
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437437 to compensate a property owner for a reduction in property value if:
438438 214
439439 (1) the municipality annexes the property owner's property as described in this part; and
440440 215
441441 (2) following the annexation, the municipality zones the property in a more restrictive way
442442 216
443443 than the property was zoned before the property was annexed into the municipality.
444444 217
445445 Section 4. Section 10-2a-221 is enacted to read:
446446 218
447447 10-2a-221 . Process to compensate a property for a reduction in property value
448448 219
449449 following annexation.
450450 220
451451 A municipal legislative body shall establish by ordinance a process for the municipality
452452 221
453453 to compensate a property owner for a reduction in property value if:
454454 222
455455 (1) the municipality incorporates and includes the property owner's property as described in
456456 223
457457 this chapter; and
458458 224
459459 (2) following the incorporation, the municipality zones the property in a more restrictive
460460 225
461461 way than the property was zoned before the property was incorporated into the
462462 226
463463 municipality.
464464 227
465465 Section 5. Section 10-2a-511 is enacted to read:
466466 228
467467 10-2a-511 . Process to compensate a property for a reduction in property value
468468 229
469469 following annexation.
470470 230
471471 (1) A preliminary municipality legislative body shall establish by ordinance a process for a
472472 231
473473 preliminary municipality to compensate a property owner for a reduction in property
474474 232
475475 value if:
476476 233
477477 (a) the preliminary municipality incorporates and includes the property owner's property
478478 234
479479 as described in this chapter; and
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481481 235
482482 (b) following the incorporation, the preliminary municipality zones the property in a
483483 236
484484 more restrictive way than the property was zoned before the property was
485485 237
486486 incorporated into the preliminary municipality.
487487 238
488488 (2) A town legislative body shall establish by ordinance a process for the town to
489489 239
490490 compensate a property owner for a reduction in property value if:
491491 240
492492 (a) the town incorporates and includes the property owner's property as described in this
493493 241
494494 chapter; and
495495 242
496496 (b) following the incorporation, the town zones the property in a more restrictive way
497497 243
498498 than the property was zoned before the property was incorporated into the town.
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500500 Section 6. Effective Date.
501501 245
502502 This bill takes effect on May 7, 2025.
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