Bill
Electric Vehicle Infrastructure Amendments
- Number
- H.B. 130 (2016GS)
- Sponsor
- Rep. Arent, P.
- Final action
- Governor Signed 3/29/2016
- Outcome
- Became law — signed by Gov. Gary R. Herbert
Summary
This bill enacts provisions related to an assessment for electric vehicle charging infrastructure.
What it does
- This bill:
- defines terms;
- authorizes an interlocal entity to issue a bond for electric vehicle charging infrastructure;
- requires that an assessment area for electric vehicle charging infrastructure be a voluntary assessment area;
- authorizes a county to provide electric vehicle charging infrastructure;
- authorizes a local district to provide electric vehicle charging infrastructure;
- authorizes a special service district to provide electric vehicle charging infrastructure;
- authorizes a military installation development authority to provide electric vehicle charging infrastructure; and
- makes technical changes.
Every vote on this bill
2/23/2016House/ passed 3rd reading
Senate Secretary
57 16 2NAY3/10/2016House/ concurs with Senate amendment
Senate President
56 13 6NAY3/10/2016Senate/ floor amendment # 1
Senate 2nd Reading Calendar
Voice votenot eligible / no record3/10/2016Senate/ passed 2nd & 3rd readings/ suspension
Clerk of the House
25 1 3not eligible / no recordBill text
amended version · official source
This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Thu, Mar 10, 2016 at 4:40 PM by lpoole. ELECTRIC VEHICLE INFRASTRUCTURE AMENDMENTS GENERAL SESSION STATE OF UTAH Chief Sponsor: Patrice M. Arent Senate Sponsor: Kevin T. Van Tassell LONG TITLE General Description: This bill enacts provisions related to an assessment for electric vehicle charging infrastructure. Highlighted Provisions: This bill: ▸ defines terms; ▸ authorizes an interlocal entity to issue a bond for electric vehicle charging infrastructure; ▸ requires that an assessment area for electric vehicle charging infrastructure be a voluntary assessment area; ▸ authorizes a county to provide electric vehicle charging infrastructure; ▸ authorizes a local district to provide electric vehicle charging infrastructure; ▸ authorizes a special service district to provide electric vehicle charging infrastructure; ▸ authorizes a military installation development authority to provide electric vehicle charging infrastructure; and ▸ makes technical changes. Money Appropriated in this Bill: None Other Special Clauses: None Utah Code Sections Affected: AMENDS: 11-13-218 , as last amended by Laws of Utah 2015, Chapter 265 11-42-102 , as last amended by Laws of Utah 2015, Chapter 396 11-42-103 , as last amended by Laws of Utah 2015, Chapter 396 11-42-202 , as last amended by Laws of Utah 2015, Chapters 349 and 396 11-42-209 , as enacted by Laws of Utah 2013, Chapter 246 11-42-301 , as last amended by Laws of Utah 2013, Chapter 246 11-42-408 , as last amended by Laws of Utah 2013, Chapter 246 11-42-411 , as last amended by Laws of Utah 2013, Chapter 246 17-50-335 , as enacted by Laws of Utah 2013, Chapter 246 17B-1-202 , as last amended by Laws of Utah 2014, Chapter 377 17D-1-201 , as last amended by Laws of Utah 2013, Chapters 246 and 448 63H-1-201 , as last amended by Laws of Utah 2015, Chapter 377 Be it enacted by the Legislature of the state of Utah: Section 1. Section 11-13-218 is amended to read: 11-13-218. Authority of public agencies or interlocal entities to issue bonds -- Applicable provisions. (1) A public agency may, in the same manner as it may issue bonds for its individual acquisition of a facility or improvement or for constructing, improving, or extending a facility or improvement, issue bonds to: (a) acquire an interest in a jointly owned facility or improvement, a combination of a jointly owned facility or improvement, or any other facility or improvement; or (b) pay all or part of the cost of constructing, improving, or extending a jointly owned facility or improvement, a combination of a jointly owned facility or improvement, or any other facility or improvement. (2) (a) An interlocal entity may issue bonds or notes under a resolution, trust indenture, or other security instrument for the purpose of: (i) financing its facilities or improvements; or (ii) providing for or financing an energy efficiency upgrade [ or ] , a renewable energy system , or electric vehicle charging infrastructure in accordance with Title 11, Chapter 42, Assessment Area Act. (b) The bonds or notes may be sold at public or private sale, mature at such times and bear interest at such rates, and have such other terms and security as the entity determines. (c) The bonds or notes described in this Subsection (2) are not a debt of any public agency that is a party to the agreement. (3) The governing board may, by resolution, delegate to one or more officers of the interlocal entity or to a committee of designated members of the governing board the authority to: (a) in accordance with and within the parameters set forth in the resolution, approve the final interest rate, price, principal amount, maturity, redemption features, or other terms of a bond or note; and (b) approve and execute all documents relating to the issuance of the bond or note. (4) Bonds and notes issued under this chapter are declared to be negotiable instruments and their form and substance need not comply with the Uniform Commercial Code. (5) (a) An interlocal entity shall issue bonds in accordance with, as applicable: (i) Chapter 14, Local Government Bonding Act; (ii) Chapter 27, Utah Refunding Bond Act; (iii) this chapter; or (iv) any other provision of state law that authorizes issuance of bonds by a public body. (b) An interlocal entity is a public body as defined in Section 11-30-2 . Section 2. Section 11-42-102 is amended to read: 11-42-102. Definitions. (1) "Adequate protests" means timely filed, written protests under Section 11-42-203 that represent at least 40% of the frontage, area, taxable value, fair market value, lots, number of connections, or equivalent residential units of the property proposed to be assessed, according to the same assessment method by which the assessment is proposed to be levied, after eliminating: (a) protests relating to: (i) property that has been deleted from a proposed assessment area; or (ii) an improvement that has been deleted from the proposed improvements to be provided to property within the proposed assessment area; and (b) protests that have been withdrawn under Subsection 11-42-203 (3). (2) "Assessment area" means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under Part 2, Designating an Assessment Area, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. (3) "Assessment bonds" means bonds that are: (a) issued under Section 11-42-605 ; and (b) payable in part or in whole from assessments levied in an assessment area, improvement revenues, and a guaranty fund or reserve fund. (4) "Assessment fund" means a special fund that a local entity establishes under Section 11-42-412 . (5) "Assessment lien" means a lien on property within an assessment area that arises from the levy of an assessment, as provided in Section 11-42-501 . (6) "Assessment method" means the method: (a) by which an assessment is levied against benefitted property, whether by frontage, area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential unit, any combination of these methods, or any other method; and (b) that, when applied to a benefitted property, accounts for an assessment that meets the requirements of Section 11-42-409 . (7) "Assessment ordinance" means an ordinance adopted by a local entity under Section 11-42-404 that levies an assessment on benefitted property within an assessment area. (8) "Assessment resolution" means a resolution adopted by a local entity under Section 11-42-404 that levies an assessment on benefitted property within an assessment area. (9) "Benefitted property" means property within an assessment area that directly or indirectly benefits from improvements, operation and maintenance, or economic promotion activities. (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in anticipation of the issuance of assessment bonds. (11) "Bonds" means assessment bonds and refunding assessment bonds. (12) "Commercial area" means an area in which at least 75% of the property is devoted to the interchange of goods or commodities. (13) (a) "Commercial or industrial real property" means real property used directly or indirectly or held for one of the following purposes or activities, regardless of whether the purpose or activity is for profit: (i) commercial; (ii) mining; (iii) industrial; (iv) manufacturing; (v) governmental; (vi) trade; (vii) professional; (viii) a private or public club; (ix) a lodge; (x) a business; or (xi) a similar purpose. (b) "Commercial or industrial real property" includes real property that: (i) is used as or held for dwelling purposes; and (ii) contains more than four rental units. (14) "Connection fee" means a fee charged by a local entity to pay for the costs of connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or electrical system, whether or not improvements are installed on the property. (15) "Contract price" means: (a) the cost of acquiring an improvement, if the improvement is acquired; or (b) the amount payable to one or more contractors for the design, engineering, inspection, and construction of an improvement. (16) "Designation ordinance" means an ordinance adopted by a local entity under Section 11-42-206 designating an assessment area. (17) "Designation resolution" means a resolution adopted by a local entity under Section 11-42-206 designating an assessment area. (18) "Economic promotion activities" means activities that promote economic growth in a commercial area of a local entity, including: (a) sponsoring festivals and markets; (b) promoting business investment or activities; (c) helping to coordinate public and private actions; and (d) developing and issuing publications designed to improve the economic well-being of the commercial area. (19) "Electric vehicle charging infrastructure" means equipment that is: (a) permanently affixed to commercial or industrial real property; and (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying plug-in hybrid vehicle as those terms are defined in Subsection 59-7-605 (1). [ (19) ] (20) "Energy efficiency upgrade" means an improvement that is permanently affixed to commercial or industrial real property that is designed to reduce energy consumption, including: (a) insulation in: (i) a wall, roof, floor, or foundation; or (ii) a heating and cooling distribution system; (b) a window or door, including: (i) a storm window or door; (ii) a multiglazed window or door; (iii) a heat-absorbing window or door; (iv) a heat-reflective glazed and coated window or door; (v) additional window or door glazing; (vi) a window or door with reduced glass area; or (vii) other window or door modifications; (c) an automatic energy control system; (d) in a building or a central plant, a heating, ventilation, or air conditioning and distribution system; (e) caulk or weatherstripping; (f) a light fixture that does not increase the overall illumination of a building unless an increase is necessary to conform with the applicable building code; (g) an energy recovery system; (h) a daylighting system; (i) measures to reduce the consumption of water, through conservation or more efficient use of water, including: (i) installation of low-flow toilets and showerheads; (ii) installation of timer or timing systems for a hot water heater; or (iii) installation of rain catchment systems; or (j) a modified, installed, or remodeled fixture that is approved as a utility cost-saving measure by the governing body of a local entity. [ (20) ] (21) "Environmental remediation activity" means a surface or subsurface enhancement, effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth movement, or change to grade or elevation which improves the use, function, aesthetics, or environmental condition of publically or privately owned property. [ (21) ] (22) "Equivalent residential unit" means a dwelling, unit, or development that is equal to a single-family residence in terms of the nature of its use or impact on an improvement to be provided in the assessment area. [ (22) ] (23) "Governing body" means: (a) for a county, city, or town, the legislative body of the county, city, or town; (b) for a local district, the board of trustees of the local district; (c) for a special service district: (i) the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301 ; or (ii) the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301 ; and (d) for the military installation development authority created in Section 63H-1-201 , the authority board, as defined in Section 63H-1-102 . [ (23) ] (24) "Guaranty fund" means the fund established by a local entity under Section 11-42-701 . [ (24) ] (25) "Improved property" means property upon which a residential, commercial, or other building has been built. [ (25) ] (26) "Improvement": (a) (i) means a publicly owned infrastructure, system, or other facility, a publicly or privately owned energy efficiency upgrade, a publicly or privately owned renewable energy system, or publicly or privately owned environmental remediation activity that: (A) a local entity is authorized to provide; (B) the governing body of a local entity determines is necessary or convenient to enable the local entity to provide a service that the local entity is authorized to provide; or (C) a local entity is requested to provide through an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation Act; and (ii) includes facilities in an assessment area, including a private driveway, an irrigation ditch, and a water turnout, that: (A) can be conveniently installed at the same time as an infrastructure, system, or other facility described in Subsection [ (25) ] (26) (a)(i); and (B) are requested by a property owner on whose property or for whose benefit the infrastructure, system, or other facility is being installed; or (b) for a local district created to assess groundwater rights in accordance with Section 17B-1-202 , means a system or plan to regulate groundwater withdrawals within a specific groundwater basin in accordance with Sections 17B-1-202 and 73-5-15 . [ (26) ] (27) "Improvement revenues": (a) means charges, fees, impact fees, or other revenues that a local entity receives from improvements; and (b) does not include revenue from assessments. [ (27) ] (28) "Incidental refunding costs" means any costs of issuing refunding assessment bonds and calling, retiring, or paying prior bonds, including: (a) legal and accounting fees; (b) charges of financial advisors, escrow agents, certified public accountant verification entities, and trustees; (c) underwriting discount costs, printing costs, the costs of giving notice; (d) any premium necessary in the calling or retiring of prior bonds; (e) fees to be paid to the local entity to issue the refunding assessment bonds and to refund the outstanding prior bonds; (f) any other costs that the governing body determines are necessary and proper to incur in connection with the issuance of refunding assessment bonds; and (g) any interest on the prior bonds that is required to be paid in connection with the issuance of the refunding assessment bonds. [ (28) ] (29) "Installment payment date" means the date on which an installment payment of an assessment is payable. [ (29) ] (30) "Interim warrant" means a warrant issued by a local entity under Section 11-42-601 . [ (30) ] (31) "Jurisdictional boundaries" means: (a) for a county, the boundaries of the unincorporated area of the county; and (b) for each other local entity, the boundaries of the local entity. [ (31) ] (32) "Local district" means a local district under Title 17B, Limited Purpose Local Government Entities - Local Districts. [ (32) ] (33) "Local entity" means a county, city, town, special service district, local district, an interlocal entity as defined in Section 11-13-103 , a military installation development authority created in Section 63H-1-201 , or other political subdivision of the state. [ (33) ] (34) "Local entity obligations" means assessment bonds, refunding assessment bonds, interim warrants, and bond anticipation notes issued by a local entity. [ (34) ] (35) "Mailing address" means: (a) a property owner's last-known address using the name and address appearing on the last completed real property assessment roll of the county in which the property is located; and (b) if the property is improved property: (i) the property's street number; or (ii) the post office box, rural route number, or other mailing address of the property, if a street number has not been assigned. [ (35) ] (36) "Net improvement revenues" means all improvement revenues that a local entity has received since the last installment payment date, less all amounts payable by the local entity from those improvement revenues for operation and maintenance costs. [ (36) ] (37) "Operation and maintenance costs": (a) means the costs that a local entity incurs in operating and maintaining improvements in an assessment area, whether or not those improvements have been financed under this chapter; and (b) includes service charges, administrative costs, ongoing maintenance charges, and tariffs or other charges for electrical, water, gas, or other utility usage. [ (37) ] (38) "Overhead costs" means the actual costs incurred or the estimated costs to be incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and all other incidental costs. [ (38) ] (39) "Prior assessment ordinance" means the ordinance levying the assessments from which the prior bonds are payable. [ (39) ] (40) "Prior assessment resolution" means the resolution levying the assessments from which the prior bonds are payable. [ (40) ] (41) "Prior bonds" means the assessment bonds that are refunded in part or in whole by refunding assessment bonds. [ (41) ] (42) "Project engineer" means the surveyor or engineer employed by or the private consulting engineer engaged by a local entity to perform the necessary engineering services for and to supervise the construction or installation of the improvements. [ (42) ] (43) "Property" includes real property and any interest in real property, including water rights and leasehold rights. [ (43) ] (44) "Property price" means the price at which a local entity purchases or acquires by eminent domain property to make improvements in an assessment area. [ (44) ] (45) "Provide" or "providing," with reference to an improvement, includes the acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and expansion of an improvement. [ (45) ] (46) "Public agency" means: (a) the state or any agency, department, or division of the state; and (b) a political subdivision of the state. [ (46) ] (47) "Reduced payment obligation" means the full obligation of an owner of property within an assessment area to pay an assessment levied on the property after the assessment has been reduced because of the issuance of refunding assessment bonds, as provided in Section 11-42-608 . [ (47) ] (48) "Refunding assessment bonds" means assessment bonds that a local entity issues under Section 11-42-607 to refund, in part or in whole, assessment bonds. [ (48) ] (49) "Renewable energy system" means a product, a system, a device, or an interacting group of devices that[ : (a) ] is permanently affixed to commercial or industrial real property[ ; ] and : [ (b) ] (a) produces energy from renewable resources, including: (i) a photovoltaic system; (ii) a solar thermal system; (iii) a wind system; (iv) a geothermal system, including: (A) a generation system; (B) a direct-use system; or (C) a ground source heat pump system; (v) a microhydro system; or (vi) any other renewable [ sources ] source system approved by the governing body of a local entity[ . ] ; or (b) stores energy, including: (i) a battery storage system; or (ii) any other energy storing system approved by the governing body of a local entity. [ (49) ] (50) "Reserve fund" means a fund established by a local entity under Section 11-42-702 . [ (50) ] (51) "Service" means: (a) water, sewer, storm drainage, garbage collection, library, recreation, communications, or electric service; (b) economic promotion activities; or (c) any other service that a local entity is required or authorized to provide. [ (51) ] (52) "Special service district" [ has the same meaning as ] means the same as that term is defined in Section 17D-1-102 . [ (52) ] (53) "Unassessed benefitted government property" means property that a local entity may not assess in accordance with Section 11-42-408 but is benefitted by an improvement, operation and maintenance, or economic promotion activities. [ (53) ] (54) "Unimproved property" means property upon which no residential, commercial, or other building has been built. [ (54) ] (55) "Voluntary assessment area" means an assessment area that contains only property whose owners have voluntarily consented to an assessment. Section 3. Section 11-42-103 is amended to read: 11-42-103. Limit on effect of this chapter. (1) Nothing in this chapter may be construed to authorize a local entity to provide an improvement or service that the local entity is not otherwise authorized to provide. (2) Notwithstanding Subsection (1), a local entity may provide a renewable energy system, an energy efficiency upgrade, electric vehicle charging infrastructure, or an environmental remediation activity that the local entity finds or determines to be in the public interest. Section 4. Section 11-42-202 is amended to read: 11-42-202. Requirements applicable to a notice of a proposed assessment area designation. (1) Each notice required under Subsection 11-42-201 (2)(a) shall: (a) state that the local entity proposes to: (i) designate one or more areas within the local entity's jurisdictional boundaries as an assessment area; (ii) provide an improvement to property within the proposed assessment area; and (iii) finance some or all of the cost of improvements by an assessment on benefitted property within the assessment area; (b) describe the proposed assessment area by any reasonable method that allows an owner of property in the proposed assessment area to determine that the owner's property is within the proposed assessment area; (c) describe, in a general and reasonably accurate way, the improvements to be provided to the assessment area, including: (i) the nature of the improvements; and (ii) the location of the improvements, by reference to streets or portions or extensions of streets or by any other means that the governing body chooses that reasonably describes the general location of the improvements; (d) state the estimated cost of the improvements as determined by a project engineer; (e) for the version of notice mailed in accordance with Subsection (4)(b), state the estimated total assessment specific to the benefitted property for which the notice is mailed; (f) state that the local entity proposes to levy an assessment on benefitted property within the assessment area to pay some or all of the cost of the improvements according to the estimated benefits to the property from the improvements; (g) if applicable, state that an unassessed benefitted government property will receive improvements for which the cost will be allocated proportionately to the remaining benefitted properties within the proposed assessment area and that a description of each unassessed benefitted government property is available for public review at the location or website described in Subsection (6); (h) state the assessment method by which the governing body proposes to levy the assessment, including, if the local entity is a municipality or county, whether the assessment will be collected: (i) by directly billing a property owner; or (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317 and in compliance with Section 11-42-401 ; (i) state: (i) the date described in Section 11-42-203 and the location at which protests against designation of the proposed assessment area or of the proposed improvements are required to be filed; (ii) the method by which the governing body will determine the number of protests required to defeat the designation of the proposed assessment area or acquisition or construction of the proposed improvements; and (iii) in large, boldface, and conspicuous type that a property owner must protest the designation of the assessment area in writing if the owner objects to the area designation or being assessed for the proposed improvements, operation and maintenance costs, or economic promotion activities; (j) state the date, time, and place of the public hearing required in Section 11-42-204 ; (k) if the governing body elects to create and fund a reserve fund under Section 11-42-702 , include a description of: (i) how the reserve fund will be funded and replenished; and (ii) how remaining money in the reserve fund is to be disbursed upon full payment of the bonds; (l) if the governing body intends to designate a voluntary assessment area, include a property owner consent form that: (i) estimates the total assessment to be levied against the particular parcel of property; (ii) describes any additional benefits that the governing body expects the assessed property to receive from the improvements; and (iii) designates the date and time by which the fully executed consent form is required to be submitted to the governing body; (m) if the local entity intends to levy an assessment to pay operation and maintenance costs or for economic promotion activities, include: (i) a description of the operation and maintenance costs or economic promotion activities to be paid by assessments and the initial estimated annual assessment to be levied; (ii) a description of how the estimated assessment will be determined; (iii) a description of how and when the governing body will adjust the assessment to reflect the costs of: (A) in accordance with Section 11-42-406 , current economic promotion activities; or (B) current operation and maintenance costs; (iv) a description of the method of assessment if different from the method of assessment to be used for financing any improvement; and (v) a statement of the maximum number of years over which the assessment will be levied for: (A) operation and maintenance costs; or (B) economic promotion activities; (n) if the governing body intends to divide the proposed assessment area into classifications under Subsection 11-42-201 (1)(b), include a description of the proposed classifications; (o) if applicable, state the portion and value of the improvement that will be increased in size or capacity to serve property outside of the assessment area and how the increases will be financed; and (p) state whether the improvements will be financed with a bond and, if so, the currently estimated interest rate and term of financing, subject to Subsection (2), for which the benefitted properties within the assessment area may be obligated. (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be interpreted as a limitation to the actual interest rate incurred or the actual term of financing as subject to the market rate at the time of the issuance of the bond. (3) A notice required under Subsection 11-42-201 (2)(a) may contain other information that the governing body considers to be appropriate, including: (a) the amount or proportion of the cost of the improvement to be paid by the local entity or from sources other than an assessment; (b) the estimated total amount of each type of assessment for the various improvements to be financed according to the method of assessment that the governing body chooses; and (c) provisions for any improvements described in Subsection 11-42-102 [ (25) ] (26) (a)(ii). (4) Each notice required under Subsection 11-42-201 (2)(a) shall: (a) (i) (A) be published in a newspaper of general circulation within the local entity's jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at least five but not more than 20 days before the day of the hearing required in Section 11-42-204 ; or (B) if there is no newspaper of general circulation within the local entity's jurisdictional boundaries, be posted in at least three public places within the local entity's jurisdictional boundaries at least 20 but not more than 35 days before the day of the hearing required in Section 11-42-204 ; and (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for four weeks before the deadline for filing protests specified in the notice under Subsection (1)(i); and (b) be mailed, postage prepaid, within 10 days after the first publication or posting of the notice under Subsection (4)(a) to each owner of property to be assessed within the proposed assessment area at the property owner's mailing address. (5) (a) The local entity may record the version of the notice that is published or posted in accordance with Subsection (4)(a) with the office of the county recorder, by legal description and tax identification number as identified in county records, against the property proposed to be assessed. (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year after the day on which the local entity records the notice if the local entity has failed to adopt the designation ordinance or resolution under Section 11-42-201 designating the assessment area for which the notice was recorded. (6) A local entity shall make available on the local entity's website, or, if no website is available, at the local entity's place of business, the address and type of use of each unassessed benefitted government property described in Subsection (1)(g). (7) If a governing body fails to provide actual or constructive notice under this section, the local entity may not assess a levy against a benefitted property omitted from the notice unless: (a) the property owner gives written consent; (b) the property owner received notice under Subsection 11-42-401 (2)(a)(iii) and did not object to the levy of the assessment before the final hearing of the board of equalization; or (c) the benefitted property is conveyed to a subsequent purchaser and, before the date of conveyance, the requirements of Subsections 11-42-206 (3)(a)(i) and (ii), or, if applicable, Subsection 11-42-207 (1)(d)(i) are met. Section 5. Section 11-42-209 is amended to read: 11-42-209. Designation of assessment area for an energy efficiency upgrade, a renewable energy system, or electric vehicle charging infrastructure -- Requirements. (1) A governing body may not adopt a designation ordinance or resolution to designate an assessment area for an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure unless the assessment area is a voluntary assessment area. (2) A local entity may not include property in a voluntary assessment area described in Subsection (1) unless an owner of property located in the assessment area provides to the local entity: (a) the written consent of each person or institution holding a lien on the property; and (b) evidence: (i) that there are no delinquent taxes, special assessments, or water or sewer charges on the property; (ii) that the property is not subject to a trust deed or other lien on which there is a recorded notice of default, foreclosure, or delinquency that has not been cured; and (iii) that there are no involuntary liens, including a lien on real property, or on the proceeds of a contract relating to real property, for services, labor, or materials furnished in connection with the construction or improvement of the property. Section 6. Section 11-42-301 is amended to read: 11-42-301. Improvements made only under contract let to lowest responsive, responsible bidder -- Publishing notice -- Sealed bids -- Procedure -- Exceptions to contract requirement. (1) Except as otherwise provided in this section, a local entity may make improvements in an assessment area only under contract let to the lowest responsive, responsible bidder for the kind of service, material, or form of construction that the local entity's governing body determines in compliance with any applicable local entity ordinances. (2) A local entity may: (a) divide improvements into parts; (b) (i) let separate contracts for each part; or (ii) combine multiple parts into the same contract; and (c) let a contract on a unit basis. (3) (a) A local entity may not let a contract until after publishing notice as provided in Subsection (3)(b): (i) at least one time in a newspaper of general circulation within the boundaries of the local entity at least 15 days before the date specified for receipt of bids; and (ii) in accordance with Section 45-1-101 , at least 15 days before the date specified for receipt of bids. (b) Each notice under Subsection (3)(a) shall notify contractors that the local entity will receive sealed bids at a specified time and place for the construction of the improvements. (c) Notwithstanding a local entity's failure, through inadvertence or oversight, to publish the notice or to publish the notice within 15 days before the date specified for receipt of bids, the governing body may proceed to let a contract for the improvements if the local entity receives at least three sealed and bona fide bids from contractors by the time specified for the receipt of bids. (d) A local entity may publish a notice required under this Subsection (3) at the same time as a notice under Section 11-42-202 . (4) (a) A local entity may accept as a sealed bid a bid that is: (i) manually sealed and submitted; or (ii) electronically sealed and submitted. (b) The governing body or project engineer shall, at the time specified in the notice under Subsection (3), open and examine the bids. (c) In open session, the governing body: (i) shall declare the bids; and (ii) may reject any or all bids if the governing body considers the rejection to be for the public good. (d) The local entity may award the contract to the lowest responsive, responsible bidder even if the price bid by that bidder exceeds the estimated costs as determined by the project engineer. (e) A local entity may in any case: (i) refuse to award a contract; (ii) obtain new bids after giving a new notice under Subsection (3); (iii) determine to abandon the assessment area; or (iv) not make some of the improvements proposed to be made. (5) A local entity is not required to let a contract as provided in this section for: (a) an improvement or part of an improvement the cost of which or the making of which is donated or contributed; (b) an improvement that consists of furnishing utility service or maintaining improvements; (c) labor, materials, or equipment supplied by the local entity; (d) the local entity's acquisition of completed or partially completed improvements in an assessment area; (e) design, engineering, and inspection costs incurred with respect to the construction of improvements in an assessment area; or (f) additional work performed in accordance with the terms of a contract duly let to the lowest responsive, responsible bidder. (6) A local entity may itself furnish utility service and maintain improvements within an assessment area. (7) (a) A local entity may acquire completed or partially completed improvements in an assessment area, but may not pay an amount for those improvements that exceeds their fair market value. (b) Upon the local entity's payment for completed or partially completed improvements, title to the improvements shall be conveyed to the local entity or another public agency. (8) The provisions of Title 11, Chapter 39, Building Improvements and Public Works Projects, and Section 72-6-108 do not apply to improvements to be constructed in an assessment area. (9) (a) Except as provided in Subsection (9)(b), this section does not apply to a voluntary assessment area designated for the purpose of levying an assessment for an energy efficiency upgrade [ or ] , a renewable energy system , or electric vehicle charging infrastructure . (b) (i) A local entity that designates a voluntary assessment area described in Subsection (9)(a) shall provide to each owner of property to be assessed a list of service providers authorized by the local entity to provide the energy efficiency upgrade [ or ] , renewable energy system , or electric vehicle charging infrastructure . (ii) A property owner described in Subsection (9)(b)(i) shall select a service provider from the list to provide the energy efficiency upgrade [ or ] , renewable energy system , or electric vehicle charging infrastructure for the owner's property. Section 7. Section 11-42-408 is amended to read: 11-42-408. Assessment against government land prohibited -- Exception. (1) (a) Except as provided in Subsection (2), a local entity may not levy an assessment against property owned by the federal government or a public agency, even if the property benefits from the improvement. (b) Notwithstanding Subsection (1)(a), a public agency may contract with a local entity: (i) for the local entity to provide an improvement to property owned by the public agency; and (ii) to pay for the improvement provided by the local entity. (c) Nothing in this section may be construed to prevent a local entity from imposing on and collecting from a public agency, or a public agency from paying, a reasonable charge for a service rendered or material supplied by the local entity to the public agency, including a charge for water, sewer, or lighting service. (2) Notwithstanding Subsection (1): (a) a local entity may continue to levy and enforce an assessment against property acquired by a public agency within an assessment area if the acquisition occurred after the assessment area was designated; (b) property that is subject to an assessment lien at the time it is acquired by a public agency continues to be subject to the lien and to enforcement of the lien if the assessment and interest on the assessment are not paid when due; and (c) a local entity may levy an assessment against property owned by the federal government or a public agency if the federal government or public agency voluntarily enters into a voluntary assessment area for the purpose of financing an energy efficiency upgrade [ or ] , a renewable energy system , or electric vehicle charging infrastructure . Section 8. Section 11-42-411 is amended to read: 11-42-411. Installment payment of assessments. (1) (a) In an assessment resolution or ordinance, the governing body may, subject to Subsection (1)(b) Ŝ→ and except as provided in Subsection (2)(c) ←Ŝ , provide that some or all 603a of the assessment be paid in installments over a period not to exceed 20 years from the effective date of the resolution or ordinance. (b) If an assessment resolution or ordinance provides that some or all of the assessment be paid in installments for a period exceeding 10 years from the effective date of the resolution or ordinance, the governing body: (i) shall make a determination that: (A) the improvement for which the assessment is made has a reasonable useful life for the full period during which installments are to be paid; or (B) it would be in the best interests of the local entity and the property owners for installments to be paid for more than 10 years; and (ii) may provide in the resolution or ordinance that no assessment is payable during some or all of the period ending three years after the effective date of the resolution or ordinance. (2) An assessment resolution or ordinance that provides for the assessment to be paid in installments may provide that the unpaid balance be paid over the period of time that installments are payable: (a) in substantially equal installments of principal; (b) in substantially equal installments of principal and interest; or (c) for an assessment levied for an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure Ŝ→ : 622a (i) ←Ŝ in accordance with the assessment resolution or ordinance Ŝ→ [ . ] ; and 623a (ii) over a period not to exceed 30 years from the effective date of the resolution or 623b ordinance. ←Ŝ (3) (a) Each assessment resolution or ordinance that provides for the assessment to be paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and variable rates, as determined by the governing body, from the effective date of the resolution or ordinance or another date specified in the resolution or ordinance. (b) If the assessment is for operation and maintenance costs or for the costs of economic promotion activities: (i) a local entity may charge interest only from the date each installment is due; and (ii) the first installment of an assessment shall be due 15 days after the effective date of the assessment resolution or ordinance. (c) If an assessment resolution or ordinance provides for the unpaid balance of the assessment to bear interest at a variable rate, the assessment resolution or ordinance shall specify: (i) the basis upon which the rate is to be determined from time to time; (ii) the manner in which and schedule upon which the rate is to be adjusted; and (iii) a maximum rate that the assessment may bear. (4) Interest payable on assessments may include: (a) interest on assessment bonds; (b) ongoing local entity costs incurred for administration of the assessment area; and (c) any costs incurred with respect to: (i) securing a letter of credit or other instrument to secure payment or repurchase of bonds; or (ii) retaining a marketing agent or an indexing agent. (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition to the amount of each installment annually or at more frequent intervals as provided in the assessment resolution or ordinance. (6) (a) Except for an assessment for operation and maintenance costs or for the costs of economic promotion activities, a property owner may pay some or all of the entire assessment without interest if paid within 25 days after the assessment resolution or ordinance takes effect. (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any time prepay some or all of the assessment levied against the owner's property. (c) A local entity may require a prepayment of an installment to include: (i) an amount equal to the interest that would accrue on the assessment to the next date on which interest is payable on bonds issued in anticipation of the collection of the assessment; and (ii) the amount necessary, in the governing body's opinion or the opinion of the officer designated by the governing body, to assure the availability of money to pay: (A) interest that becomes due and payable on those bonds; and (B) any premiums that become payable on bonds that are called in order to use the money from the prepaid assessment installment. Section 9. Section 17-50-335 is amended to read: 17-50-335. Energy efficiency upgrade, renewable energy system, or electric vehicle charging infrastructure. A county may provide or finance an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure as defined in Section 11-42-102 , in a designated voluntary assessment area in accordance with Title 11, Chapter 42, Assessment Area Act. Section 10. Section 17B-1-202 is amended to read: 17B-1-202. Local district may be created -- Services that may be provided -- Limitations. (1) (a) A local district may be created as provided in this part to provide within its boundaries service consisting of: (i) the operation of an airport; (ii) the operation of a cemetery; (iii) fire protection, paramedic, and emergency services, including consolidated 911 and emergency dispatch services; (iv) garbage collection and disposal; (v) health care, including health department or hospital service; (vi) the operation of a library; (vii) abatement or control of mosquitos and other insects; (viii) the operation of parks or recreation facilities or services; (ix) the operation of a sewage system; (x) the construction and maintenance of a right-of-way, including: (A) a curb; (B) a gutter; (C) a sidewalk; (D) a street; (E) a road; (F) a water line; (G) a sewage line; (H) a storm drain; (I) an electricity line; (J) a communications line; (K) a natural gas line; or (L) street lighting; (xi) transportation, including public transit and providing streets and roads; (xii) the operation of a system, or one or more components of a system, for the collection, storage, retention, control, conservation, treatment, supplying, distribution, or reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether the system is operated on a wholesale or retail level or both; (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a groundwater right for the development and execution of a groundwater management plan in cooperation with and approved by the state engineer in accordance with Section 73-5-15 ; (xiv) law enforcement service; (xv) subject to Subsection (1)(b), the underground installation of an electric utility line or the conversion to underground of an existing electric utility line; (xvi) the control or abatement of earth movement or a landslide; (xvii) the operation of animal control services and facilities; or (xviii) an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure as defined in Section 11-42-102 , in accordance with Title 11, Chapter 42, Assessment Area Act. (b) Each local district that provides the service of the underground installation of an electric utility line or the conversion to underground of an existing electric utility line shall, in installing or converting the line, provide advance notice to and coordinate with the utility that owns the line. (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include the banking of groundwater rights by a local district in a critical management area as defined in Section 73-5-15 following the adoption of a groundwater management plan by the state engineer under Section 73-5-15 . (i) A local district may manage the groundwater rights it acquires under Subsection 17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan described in this Subsection (1)(c). (ii) A groundwater right held by a local district to satisfy the provisions of a groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 . (iii) (A) A local district may divest itself of a groundwater right subject to a determination that the groundwater right is not required to facilitate the groundwater management plan described in this Subsection (1)(c). (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section 73-1-4 beginning on the date of divestiture. (iv) Upon a determination by the state engineer that an area is no longer a critical management area as defined in Section 73-5-15 , a groundwater right held by the local district is subject to Section 73-1-4 . (v) A local district created in accordance with Subsection (1)(a)(xiii) to develop and execute a groundwater management plan may hold or acquire a right to surface waters that are naturally tributary to the groundwater basin subject to the groundwater management plan if the surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act. (2) For purposes of this section: (a) "Operation" means all activities involved in providing the indicated service including acquisition and ownership of property reasonably necessary to provide the indicated service and acquisition, construction, and maintenance of facilities and equipment reasonably necessary to provide the indicated service. (b) "System" means the aggregate of interrelated components that combine together to provide the indicated service including, for a sewage system, collection and treatment. (3) (a) A local district may not be created to provide and may not after its creation provide more than four of the services listed in Subsection (1). (b) Subsection (3)(a) may not be construed to prohibit a local district from providing more than four services if, before April 30, 2007, the local district was authorized to provide those services. (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to provide and may not after its creation provide to an area the same service that may already be provided to that area by another political subdivision, unless the other political subdivision gives its written consent. (b) For purposes of Subsection (4)(a), a local district does not provide the same service as another political subdivision if it operates a component of a system that is different from a component operated by another political subdivision but within the same: (i) sewage system; or (ii) water system. (5) (a) Except for a local district in the creation of which an election is not required under Subsection 17B-1-214 (3)(d), the area of a local district may include all or part of the unincorporated area of one or more counties and all or part of one or more municipalities. (b) The area of a local district need not be contiguous. (6) For a local district created before May 5, 2008, the authority to provide fire protection service also includes the authority to provide: (a) paramedic service; and (b) emergency service, including hazardous materials response service. (7) A local district created before May 11, 2010, authorized to provide the construction and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection (1)(a)(x) on or after May 11, 2010. (8) A local district created before May 10, 2011, authorized to provide culinary, irrigation, sewage, or storm water services may provide a service described in Subsection (1)(a)(xii) on or after May 10, 2011. (9) A local district may not be created under this chapter for two years after the date on which a local district is dissolved as provided in Section 17B-1-217 if the local district proposed for creation: (a) provides the same or a substantially similar service as the dissolved local district; and (b) is located in substantially the same area as the dissolved local district. Section 11. Section 17D-1-201 is amended to read: 17D-1-201. Services that a special service district may be created to provide. As provided in this part, a county or municipality may create a special service district to provide any combination of the following services: (1) water; (2) sewerage; (3) drainage; (4) flood control; (5) garbage collection and disposal; (6) health care; (7) transportation, including the receipt of federal secure rural school funds under Section 51-9-603 for the purposes of constructing, improving, repairing, or maintaining public roads; (8) recreation; (9) fire protection, including: (a) emergency medical services, ambulance services, and search and rescue services, if fire protection service is also provided; (b) Firewise Communities programs and the development of community wildfire protection plans; and (c) the receipt of federal secure rural school funds as provided under Section 51-9-603 for the purposes of carrying out Firewise Communities programs, developing community wildfire protection plans, and performing emergency services, including firefighting on federal land and other services authorized under this Subsection (9); (10) providing, operating, and maintaining correctional and rehabilitative facilities and programs for municipal, state, and other detainees and prisoners; (11) street lighting; (12) consolidated 911 and emergency dispatch; (13) animal shelter and control; (14) receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease Funds, and expending those funds to provide construction and maintenance of public facilities, traditional governmental services, and planning, as a means for mitigating impacts from extractive mineral industries; (15) in a county of the first class, extended police protection; (16) control or abatement of earth movement or a landslide; (17) an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure as defined in Section 11-42-102 , in accordance with Title 11, Chapter 42, Assessment Area Act; or (18) cemetery. Section 12. Section 63H-1-201 is amended to read: 63H-1-201. Creation of military installation development authority -- Status and powers of authority -- Limitation. (1) There is created a military installation development authority. (2) The authority is: (a) an independent, nonprofit, separate body corporate and politic, with perpetual succession and statewide jurisdiction, whose purpose is to facilitate the development of military land in a project area; (b) a political subdivision of the state; and (c) a public corporation, as defined in Section 63E-1-102 . (3) The authority may: (a) as provided in this chapter, facilitate the development of land within one or more project areas, including the ongoing operation of facilities within a project area; (b) sue and be sued; (c) enter into contracts generally; (d) buy, obtain an option upon, or otherwise acquire any interest in real or personal property: (i) in a project area; or (ii) outside a project area for publicly owned infrastructure and improvements, if the board considers the purchase, option, or other interest acquisition to be necessary for fulfilling the authority's development objectives; (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or personal property; (f) enter into a lease agreement on real or personal property, either as lessee or lessor: (i) in a project area; or (ii) outside a project area, if the board considers the lease to be necessary for fulfilling the authority's development objectives; (g) provide for the development of land within a project area under one or more contracts; (h) exercise powers and perform functions under a contract, as authorized in the contract; (i) exercise exclusive police power within a project area to the same extent as though the authority were a municipality, including the collection of regulatory fees; (j) receive the property tax allocation and other taxes and fees as provided in this chapter; (k) accept financial or other assistance from any public or private source for the authority's activities, powers, and duties, and expend any funds so received for any of the purposes of this chapter; (l) borrow money, contract with, or accept financial or other assistance from the federal government, a public entity, or any other source for any of the purposes of this chapter and comply with any conditions of the loan, contract, or assistance; (m) issue bonds to finance the undertaking of any development objectives of the authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act; (n) hire employees, including contract employees; (o) transact other business and exercise all other powers provided for in this chapter; (p) enter into a development agreement with a developer of land within a project area; (q) enter into an agreement with a political subdivision of the state under which the political subdivision provides one or more municipal services within a project area; (r) enter into an agreement with a private contractor to provide one or more municipal services within a project area; (s) provide for or finance an energy efficiency upgrade [ or ] , a renewable energy system, or electric vehicle charging infrastructure as defined in Section 11-42-102 , in accordance with Title 11, Chapter 42, Assessment Area Act; (t) exercise powers and perform functions that the authority is authorized by statute to exercise or perform; and (u) enter into an agreement with the federal government or an agency of the federal government under which the federal government or agency: (i) provides law enforcement services only to military land within a project area; and (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement agency of the state or a political subdivision of the state. (4) The authority may not itself provide law enforcement service or fire protection service within a project area but may enter into an agreement for one or both of those services, as provided in Subsection (3)(q). Legislative Review Note Office of Legislative Research and General Counsel