Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 228 Second Substitute (2019GS)

Sponsor

Sen. McCay, D.

Final action

Governor Signed 4/1/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• imposes a limit on a property tax levy for the operation of a public infrastructure district;
• imposes a limit on certain bonds that a public infrastructure district may issue;
• allows for local entities to create public infrastructure districts;
• provides for the appointment and potential election, in certain circumstances, of members of the board of trustees of a public infrastructure district;
• provides for the issuance of bonds for certain purposes;
• allows a public infrastructure district to charge certain fees;
• imposes certain transparency requirements on public infrastructure districts;
• allows a public infrastructure district to impose a property tax penalty in the event of nonpayment;
• limits the time period during which a person may bring certain legal challenges against a public infrastructure district;
• requires the inclusion of a certain property tax penalty on the property tax notice; and
• makes technical changes.

Every vote on this bill

Bill text

PUBLIC INFRASTRUCTURE DISTRICT ACT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: 
James A. Dunnigan
LONG TITLE
General Description:
This bill enacts the Public Infrastructure District Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ imposes a limit on a property tax levy for the operation of a public infrastructure
district;
▸ imposes a limit on certain bonds that a public infrastructure district may issue;
▸ allows for local entities to create public infrastructure districts;
▸ provides for the appointment and potential election, in certain circumstances, of
members of the board of trustees of a public infrastructure district;
▸ provides for the issuance of bonds for certain purposes;
▸ allows a public infrastructure district to charge certain fees;
▸ imposes certain transparency requirements on public infrastructure districts;
▸ allows a public infrastructure district to impose a property tax penalty in the event
of nonpayment;
▸ limits the time period during which a person may bring certain legal challenges
against a public infrastructure district;
 ▸ 
requires the inclusion of a certain property tax penalty on the property tax notice;
and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-42-201
, as last amended by Laws of Utah 2015, Chapter 396
17B-1-102
, as last amended by Laws of Utah 2016, Chapter 176
17B-1-1102
, as last amended by Laws of Utah 2015, Chapter 352
59-2-1317
, as last amended by Laws of Utah 2018, Chapter 197
ENACTS:
17B-2a-1201
, Utah Code Annotated 1953
17B-2a-1202
, Utah Code Annotated 1953
17B-2a-1203
, Utah Code Annotated 1953
17B-2a-1204
, Utah Code Annotated 1953
17B-2a-1205
, Utah Code Annotated 1953
17B-2a-1206
, Utah Code Annotated 1953
17B-2a-1207
, Utah Code Annotated 1953
17B-2a-1208
, Utah Code Annotated 1953
17B-2a-1209
, Utah Code Annotated 1953
17B-2a-1210
, Utah Code Annotated 1953
17B-2a-1211
, Utah Code Annotated 1953
17B-2a-1212
, Utah Code Annotated 1953
17B-2a-1213
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-42-201
 is amended to read:
11-42-201.
Resolution or ordinance designating an assessment area --
Classifications within an assessment area -- Preconditions to adoption of a resolution or
ordinance.
(1) (a) Subject to the requirements of this part, a governing body of a local entity
intending to levy an assessment on property to pay some or all of the cost of providing
improvements benefitting the property, performing operation and maintenance benefitting the
property, or conducting economic promotion activities benefitting the property shall adopt a
resolution or ordinance designating an assessment area.
(b) A designation resolution or designation ordinance described in Subsection (1)(a)
may divide the assessment area into multiple classifications to allow the governing body to:
(i) levy a different level of assessment; or
(ii) use a different assessment method in each classification to reflect more fairly the
benefits that property within the different classifications is expected to receive because of the
proposed improvement, operation and maintenance, or economic promotion activities.
(c) The boundaries of a proposed assessment area:
(i) may include property that is not intended to be assessed; and
(ii) 
except for an assessment area within a public infrastructure district as defined in
Section 
17B-1-102
,
 may not be coextensive or substantially coterminous with the boundaries of
the local entity.
(2) Before adopting a designation resolution or designation ordinance described in
Subsection (1)(a), the governing body of the local entity shall:
(a) give notice as provided in Section 
11-42-202
;
(b) receive and consider all protests filed under Section 
11-42-203
; and
(c) hold a public hearing as provided in Section 
11-42-204
.
Section 2. Section 
17B-1-102
 is amended to read:
17B-1-102.
Definitions.
As used in this title:
(1) "Appointing authority" means the person or body authorized to make an
appointment to the board of trustees.
(2) "Basic local district":
(a) means a local district that is not a specialized local district; and
(b) includes an entity that was, under the law in effect before April 30, 2007, created
and operated as a local district, as defined under the law in effect before April 30, 2007.
(3) "Bond" means:
(a) a written obligation to repay borrowed money, whether denominated a bond, note,
warrant, certificate of indebtedness, or otherwise; and
(b) a lease agreement, installment purchase agreement, or other agreement that:
(i) includes an obligation by the district to pay money; and
(ii) the district's board of trustees, in its discretion, treats as a bond for purposes of Title
11, Chapter 14, Local Government Bonding Act, or Title 11, Chapter 27, Utah Refunding Bond
Act.
(4) "Cemetery maintenance district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 1, Cemetery Maintenance District
Act, including an entity that was created and operated as a cemetery maintenance district under
the law in effect before April 30, 2007.
(5) "Drainage district" means a local district that operates under and is subject to the
provisions of this chapter and Chapter 2a, Part 2, Drainage District Act, including an entity that
was created and operated as a drainage district under the law in effect before April 30, 2007.
(6) "Facility" or "facilities" includes any structure, building, system, land, water right,
water, or other real or personal property required to provide a service that a local district is
authorized to provide, including any related or appurtenant easement or right-of-way,
improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
(7) "Fire protection district" means a local district that operates under and is subject to
the provisions of this chapter and Chapter 2a, Part 3, Fire Protection District Act, including an
entity that was created and operated as a fire protection district under the law in effect before
April 30, 2007.
(8) "General obligation bond":
(a) means a bond that is directly payable from and secured by ad valorem property
taxes that are:
(i) levied:
(A) by the district that issues the bond; and
(B) on taxable property within the district; and
(ii) in excess of the ad valorem property taxes of the district for the current fiscal year;
and
(b) does not include:
(i) a short-term bond;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
(9) "Improvement assurance" means a surety bond, letter of credit, cash, or other
security:
(a) to guarantee the proper completion of an improvement;
(b) that is required before a local district may provide a service requested by a service
applicant; and
(c) that is offered to a local district to induce the local district before construction of an
improvement begins to:
(i) provide the requested service; or
(ii) commit to provide the requested service.
(10) "Improvement assurance warranty" means a promise that the materials and
workmanship of an improvement:
(a) comply with standards adopted by a local district; and
(b) will not fail in any material respect within an agreed warranty period.
(11) "Improvement district" means a local district that operates under and is subject to
the provisions of this chapter and Chapter 2a, Part 4, Improvement District Act, including an
entity that was created and operated as a county improvement district under the law in effect
before April 30, 2007.
(12) "Irrigation district" means a local district that operates under and is subject to the
provisions of this chapter and Chapter 2a, Part 5, Irrigation District Act, including an entity that
was created and operated as an irrigation district under the law in effect before April 30, 2007.
(13) "Local district" means a limited purpose local government entity, as described in
Section 
17B-1-103
, that operates under, is subject to, and has the powers set forth in:
(a) this chapter; or
(b) (i) this chapter; and
(ii) (A) Chapter 2a, Part 1, Cemetery Maintenance District Act;
(B) Chapter 2a, Part 2, Drainage District Act;
(C) Chapter 2a, Part 3, Fire Protection District Act;
(D) Chapter 2a, Part 4, Improvement District Act;
(E) Chapter 2a, Part 5, Irrigation District Act;
(F) Chapter 2a, Part 6, Metropolitan Water District Act;
(G) Chapter 2a, Part 7, Mosquito Abatement District Act;
(H) Chapter 2a, Part 8, Public Transit District Act;
(I) Chapter 2a, Part 9, Service Area Act;
(J) Chapter 2a, Part 10, Water Conservancy District Act; [
or
]
(K) Chapter 2a, Part 11, Municipal Services District Act[
.
]
; or
(L) Chapter 2a, Part 12, Public Infrastructure District Act.
(14) "Metropolitan water district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 6, Metropolitan Water District
Act, including an entity that was created and operated as a metropolitan water district under the
law in effect before April 30, 2007.
(15) "Mosquito abatement district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 7, Mosquito Abatement District
Act, including an entity that was created and operated as a mosquito abatement district under
the law in effect before April 30, 2007.
(16) "Municipal" means of or relating to a municipality.
(17) "Municipality" means a city, town, or metro township.
(18) "Municipal services district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District
Act.
(19) "Person" means an individual, corporation, partnership, organization, association,
trust, governmental agency, or other legal entity.
(20) "Political subdivision" means a county, city, town, metro township, local district
under this title, special service district under Title 17D, Chapter 1, Special Service District Act,
an entity created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal
Cooperation Act, or any other governmental entity designated in statute as a political
subdivision of the state.
(21) "Private," with respect to real property, means not owned by the United States or
any agency of the federal government, the state, a county, or a political subdivision.
(22) "Public entity" means:
(a) the United States or an agency of the United States;
(b) the state or an agency of the state;
(c) a political subdivision of the state or an agency of a political subdivision of the
state;
(d) another state or an agency of that state; or
(e) a political subdivision of another state or an agency of that political subdivision.
(23) "Public infrastructure district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 12, Public Infrastructure District
Act.
[
(23)
] 
(24)
 "Public transit district" means a local district that operates under and is
subject to the provisions of this chapter and Chapter 2a, Part 8, Public Transit District Act,
including an entity that was created and operated as a public transit district under the law in
effect before April 30, 2007.
[
(24)
] 
(25)
 "Revenue bond":
(a) means a bond payable from designated taxes or other revenues other than the local
district's ad valorem property taxes; and
(b) does not include:
(i) an obligation constituting an indebtedness within the meaning of an applicable
constitutional or statutory debt limit;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
[
(25)
] 
(26)
 "Rules of order and procedure" means a set of rules that govern and
prescribe in a public meeting:
(a) parliamentary order and procedure;
(b) ethical behavior; and
(c) civil discourse.
[
(26)
] 
(27)
 "Service applicant" means a person who requests that a local district
provide a service that the local district is authorized to provide.
[
(27)
] 
(28)
 "Service area" means a local district that operates under and is subject to the
provisions of this chapter and Chapter 2a, Part 9, Service Area Act, including an entity that was
created and operated as a county service area or a regional service area under the law in effect
before April 30, 2007.
[
(28)
] 
(29)
 "Short-term bond" means a bond that is required to be repaid during the
fiscal year in which the bond is issued.
[
(29)
] 
(30)
 "Special assessment" means an assessment levied against property to pay all
or a portion of the costs of making improvements that benefit the property.
[
(30)
] 
(31)
 "Special assessment bond" means a bond payable from special assessments.
[
(31)
] 
(32)
 "Specialized local district" means a local district that is a cemetery
maintenance district, a drainage district, a fire protection district, an improvement district, an
irrigation district, a metropolitan water district, a mosquito abatement district, a public transit
district, a service area, a water conservancy district, [
or
] a municipal services district
, or a
public infrastructure district
.
[
(32)
] 
(33)
 "Taxable value" means the taxable value of property as computed from the
most recent equalized assessment roll for county purposes.
[
(33)
] 
(34)
 "Tax and revenue anticipation bond" means a bond:
(a) issued in anticipation of the collection of taxes or other revenues or a combination
of taxes and other revenues; and
(b) that matures within the same fiscal year as the fiscal year in which the bond is
issued.
[
(34)
] 
(35)
 "Unincorporated" means not included within a municipality.
[
(35)
] 
(36)
 "Water conservancy district" means a local district that operates under and
is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy District
Act, including an entity that was created and operated as a water conservancy district under the
law in effect before April 30, 2007.
[
(36)
] 
(37)
 "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain,
tunnel, power plant, and any facility, improvement, or property necessary or convenient for
supplying or treating water for any beneficial use, and for otherwise accomplishing the
purposes of a local district.
Section 3. Section 
17B-1-1102
 is amended to read:
17B-1-1102.
General obligation bonds.
(1) Except as provided in Subsection (3), if a district intends to issue general obligation
bonds, the district shall first obtain the approval of district voters for issuance of the bonds at
an election held for that purpose as provided in Title 11, Chapter 14, Local Government
Bonding Act.
(2) General obligation bonds shall be secured by a pledge of the full faith and credit of
the district, subject[
,
] 
to:
(a)
 for a water conservancy district, [
to
] the property tax levy limits of Section
17B-2a-1006
[
.
]
; and
(b) for a limited tax bond as defined in Section 
17B-2a-1202
 that a public
infrastructure district issues, the property tax levy limits of Section 
17B-2a-1209
.
(3) A district may issue refunding general obligation bonds, as provided in Title 11,
Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
(4) (a) A local district may not issue general obligation bonds if the issuance of the
bonds will cause the outstanding principal amount of all of the district's general obligation
bonds to exceed the amount that results from multiplying the fair market value of the taxable
property within the district, as determined under Subsection 
11-14-301
(3)(b), by a number that
is:
(i) .05, for a basic local district;
(ii) .004, for a cemetery maintenance district;
(iii) .002, for a drainage district;
(iv) .004, for a fire protection district;
(v) .024, for an improvement district;
(vi) .1, for an irrigation district;
(vii) .1, for a metropolitan water district;
(viii) .0004, for a mosquito abatement district;
(ix) .03, for a public transit district;
(x) .12, for a service area; [
or
]
(xi) .05 for a municipal services district[
.
]
; or
(xii) except for a limited tax bond as defined in Section 
17B-2a-1202
, .15 for a public
infrastructure district.
(b) Bonds or other obligations of a local district that are not general obligation bonds
are not included in the limit stated in Subsection (4)(a).
(5) A district may not be considered to be a municipal corporation for purposes of the
debt limitation of the Utah Constitution, Article XIV, Section 4.
(6) Bonds issued by an administrative or legal entity created under Title 11, Chapter
13, Interlocal Cooperation Act, may not be considered to be bonds of a local district that
participates in the agreement creating the administrative or legal entity.
Section 4. Section 
17B-2a-1201
 is enacted to read:
Part 12. Public Infrastructure District Act
 17B-2a-1201.
Title.
This part is known as "Public Infrastructure District Act."
Section 5. Section 
17B-2a-1202
 is enacted to read:
 17B-2a-1202.
Definitions.
As used in this part:
(1) "Board" means the board of trustees of a public infrastructure district.
(2) "Creating entity" means the county or municipality that approves of the creation of
the public infrastructure district.
(3) "District applicant" means the person proposing the creation of the public
infrastructure district.
(4) "Division" means a division of a public infrastructure district:
(a) that is relatively equal in number of eligible voters or potential eligible voters to all
other divisions within the public infrastructure district, taking into account existing or potential
developments which, when completed, would increase or decrease the population within the
public infrastructure district; and
(b) which a member of the board represents.
(5) "Governing document" means the document governing the public infrastructure
district to which the creating entity agrees before the creation of the public infrastructure
district, as amended from time to time, and subject to the limitations of Chapter 1, Provisions
Applicable to All Local Districts, and this part.
(6) (a) "Limited tax bond" means a bond:
(i) that is directly payable from and secured by ad valorem property taxes that are
levied:
(A) by the public infrastructure district that issues the bond; and
(B) on taxable property within the district;
(ii) that is a general obligation of the public infrastructure district; and
(iii) for which the ad valorem property tax levy for repayment of the bond does not
exceed the mill rate limit established under Section 
17B-2a-1209
 for any fiscal year, except as
provided in Subsection 
17B-2a-1207
(8).
(b) "Limited tax bond" does not include:
(i) a short-term bond;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
Section 6. Section 
17B-2a-1203
 is enacted to read:
 17B-2a-1203.
Provisions applicable to public infrastructure districts.
(1) Each public infrastructure district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Local Districts.
(2) This part applies only to a public infrastructure district.
(3) A public infrastructure district is not subject to the provisions of any other part of
this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
Local Districts, and a provision in this part, the provision in this part governs.
Section 7. Section 
17B-2a-1204
 is enacted to read:
 17B-2a-1204.
Creation.
(1) In addition to the provisions regarding creation of a local district in Chapter 1,
Provisions Applicable to All Local Districts, a public infrastructure district may not be created
unless:
(a) if there are any registered voters within the applicable area, a petition is filed with
the creating entity that contains the signatures of 100% of registered voters within the
applicable area approving the creation of the public infrastructure district; and
(b) a petition is filed with the creating entity that contains the signatures of 100% of
surface property owners within the applicable area consenting to the creation of the public
infrastructure district.
(2) The election requirement of Section 
17B-1-214
 does not apply to a petition meeting
the requirements of Subsection (1).
(3) (a) Notwithstanding Chapter 1, Part 4, Annexation, an area outside of the
boundaries of a public infrastructure district may be annexed into the public infrastructure
district after:
(i) adoption of resolutions of the board and the creating entity, each approving of the
annexation;
(ii) if there are any registered voters within the area proposed to be annexed, a petition
is filed with the creating entity that contains the signatures of 100% of registered voters within
the area and approves of the annexation into the public infrastructure district; and
(iii) a petition is filed with the creating entity that contains the signatures of 100% of
surface property owners within the area proposed to be annexed and consents to the annexation
into the public infrastructure district.
(b) Upon meeting the requirements of Subsection (3)(a), the board shall comply with
the resolution and filing requirements of Subsections 
17B-1-414
(1) and (2).
(c) (i) Notwithstanding Chapter 1, Part 5, Withdrawal, property may be withdrawn
from a public infrastructure district after:
(A) adoption of resolutions of the board and the creating entity, each approving of the
annexation;
(B) if there are any registered voters within the area proposed to be withdrawn, a
petition is filed with the creating entity that contains the signatures of 100% of registered voters
within the area and approves of the withdrawal from the public infrastructure district; and
(C) a petition is filed with the creating entity that contains the signatures of 100% of
surface property owners within the area proposed to be withdrawn and consents to the
withdrawal from the public infrastructure district.
(ii) If any bonds that the public infrastructure district issues are allocable to the area to
be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains
subject to any taxes, fees, or assessments that the public infrastructure district imposes until the
bonds or any associated refunding bonds are paid.
(d) Upon meeting the requirements of Subsection (3)(c), the board shall comply with
the requirements of Section 
17B-1-512
.
(4) The creating entity may impose limitations on the powers of the public
infrastructure district through the governing document.
(5) (a) A public infrastructure district is separate and distinct from the creating entity.
(b) (i) Except as provided in Subsection (5)(b)(ii), any financial burden of a public
infrastructure district:
(A) is borne solely by the public infrastructure district; and
(B) is not borne by the creating entity or any municipality, county, the state, or any
other political subdivision.
(ii) Notwithstanding Subsection (5)(b)(i) and Section 
17B-1-216
, the governing
document may require:
(A) the district applicant to bear the initial costs of the public infrastructure district;
and
(B) the public infrastructure district to reimburse the district applicant for the initial
costs the creating entity bears.
(c) Any liability, judgment, or claim against a public infrastructure district:
(i) is the sole responsibility of the public infrastructure district; and
(ii) does not constitute a liability, judgment, or claim against the creating entity, the
state, or any municipality, county, or other political subdivision.
(d) (i) (A) The public infrastructure district solely bears the responsibility of any
collection, enforcement, or foreclosure proceeding with regard to any tax, fee, or assessment
the public infrastructure district imposes.
(B) The creating entity does not bear the responsibility described in Subsection
(5)(d)(i)(A).
(ii) A public infrastructure district, and not the creating entity, shall undertake the
enforcement responsibility described in, as applicable, Subsection (5)(d)(i) in accordance with
Title 59, Chapter 2, Property Tax Act, or Title 11, Chapter 42, Assessment Area Act.
(6) The creating entity may establish criteria in determining whether to approve or
disapprove of the creation of a public infrastructure district, including:
(a) historical performance of the district applicant;
(b) compliance with the creating entity's master plan;
(c) credit worthiness of the district applicant;
(d) plan of finance of the public infrastructure district; and
(e) proposed development within the public infrastructure district.
(7) (a) The creation of a public infrastructure district is subject to the sole discretion of
the creating entity responsible for approving or rejecting the creation of the public
infrastructure district.
(b) The proposed creating entity bears no liability for rejecting the proposed creation of
a public infrastructure district.
Section 8. Section 
17B-2a-1205
 is enacted to read:
 17B-2a-1205.
Public infrastructure district board -- Governing document.
(1) The legislative body of the entity that approves the creation of a public
infrastructure district shall appoint the members of the board, in accordance with the governing
document.
(2) (a) Unless otherwise limited in the governing document and except as provided in
Subsection (2)(b), the initial term of each member of the board is four years.
(b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
board shall serve a six-year term so that, after the expiration of the initial term, the term of
approximately half the board members expires every two years.
(c) A board may elect that a majority of the board serve an initial term of six years.
(d) After the initial term, the term of each member of the board is four years.
(3) (a) Notwithstanding Subsection 
17B-1-302
(1)(b), a board member is not required
to be a resident within the boundaries of the public infrastructure district if:
(i) all of the surface property owners consent to the waiver of the residency
requirement;
(ii) there are no residents within the boundaries of the public infrastructure district;
(iii) no qualified candidate timely files to be considered for appointment to the board;
or
(iv) no qualified individual files a declaration of candidacy for a board position in
accordance with Subsection 
17B-1-306
(4).
(b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
residency requirement in Subsection 
17B-1-302
(1)(b) is applicable to any board member
elected for a division or board position that has transitioned from an appointed to an elected
board member in accordance with this section.
(c) An individual who is not a resident within the boundaries of the public
infrastructure district may not serve as a board member unless the individual is:
(i) an owner of land or an agent or officer of the owner of land within the boundaries of
the public infrastructure district; and
(ii) a registered voter at the individual's primary residence.
(4) (a) A governing document may provide for a transition from legislative body
appointment under Subsection (1) to a method of election by registered voters based upon
milestones or events that the governing document identifies, including a milestone for each
division or individual board position providing that when the milestone is reached:
(i) for a division, the registered voters of the division elect a member of the board in
place of an appointed member at the next municipal general election for the board position; or
(ii) for an at large board position established in the governing document, the registered
voters of the public infrastructure district elect a member of the board in place of an appointed
member at the next municipal general election for the board position.
(b) Regardless of whether a board member is elected under Subsection (4)(a), the
position of each remaining board member shall continue to be appointed under Subsection (1)
until the member's respective division or board position surpasses the density milestone
described in the governing document.
(5) (a) Subject to Subsection (5)(c), the board may, in the board's discretion but no
more frequently than every four years, reestablish the boundaries of each division so that each
division that has reached a milestone specified in the governing document, as described in
Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.
(b) In reestablishing division boundaries under Subsection (5)(a), the board shall
consider existing or potential developments within the divisions which, when completed,
would increase or decrease the number of eligible voters within the division.
(c) The governing document may prohibit the board from reestablishing, without the
consent of the creating entity, the division boundaries as described in Subsection (5)(a).
(6) The public infrastructure district may not compensate a board member for the
member's service on the board under Section 
17B-1-307
 unless the board member is a resident
within the boundaries of the public infrastructure district.
(7) The governing document shall:
(a) include a boundary description and a map of the public infrastructure district;
(b) state the number of board members;
(c) describe any divisions of the public infrastructure district;
(d) establish any applicable mill rate limit for the public infrastructure district;
(e) establish any applicable limitation on the principal amount of indebtedness for the
public infrastructure district; and
(f) include other information that the public infrastructure district or the creating entity
determines to be necessary or advisable.
(8) (a) Except as provided in Subsection (8)(b), the board and the governing body of
the creating entity may amend a governing document by each adopting a resolution that
approves the amended governing document.
(b) Notwithstanding Subsection (8)(a), any amendment to a property tax mill limitation
requires:
(i) before the adoption of the resolution of the creating entity described in Subsection
(8)(a), the public infrastructure district to comply with the notice and public hearing
requirements of Section 59-2-919, with at least one member of the governing body of the
creating entity attending the public hearing required in Subsection 59-2-919(3)(a)(v) or (4)(b);
or
(ii) the consent of:
(A) 100% of surface property owners within the boundaries of the public infrastructure
district; and
(B) 100% of the registered voters, if any, within the boundaries of the public
infrastructure district.
(9) A board member is not in violation of Section 
67-16-9
 if the board member:
(a) discloses a business relationship in accordance with Sections 
67-16-7
 and 
67-16-8
and files the disclosure with the creating entity:
(i) before any appointment or election; and
(ii) upon any significant change in the business relationship; and
(b) conducts the affairs of the public infrastructure district in accordance with this title
and any parameters described in the governing document.
Section 9. Section 
17B-2a-1206
 is enacted to read:
 17B-2a-1206.
Additional public infrastructure district powers.
In addition to the powers conferred on a public infrastructure district under Section
17B-1-103
, a public infrastructure district may:
(1) issue negotiable bonds to pay:
(a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
any of the improvements, facilities, or property allowed under Section 
11-14-103
;
(b) capital costs of improvements in an energy assessment area, as defined in Section
11-42a-102
, and other related costs, against the funds that the public infrastructure district will
receive because of an assessment in an energy assessment area, as defined in Section
11-42a-401
;
(c) public improvements related to the provision of housing; and
(d) capital costs related to public transportation;
(2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
Cooperation Act, without the consent of the creating entity;
(3) acquire completed or partially completed improvements for fair market value as
reasonably determined by:
(a) the board;
(b) the creating entity, if required in the governing document; or
(c) a surveyor or engineer that a public infrastructure district employs or engages to
perform the necessary engineering services for and to supervise the construction or installation
of the improvements; and
(4) contract with the creating entity for the creating entity to provide administrative
services on behalf of the public infrastructure district, when agreed to by both parties, in order
to achieve cost savings and economic efficiencies, at the discretion of the creating entity.
Section 10. Section 
17B-2a-1207
 is enacted to read:
 17B-2a-1207.
Public infrastructure district bonds.
(1) A public infrastructure district may issue negotiable bonds for the purposes
described in Section 
17B-2a-1206
, as provided in, as applicable:
(a) Title 11, Chapter 14, Local Government Bonding Act;
(b) Title 11, Chapter 27, Utah Refunding Bond Act;
(c) Title 11, Chapter 42, Assessment Area Act; and
(d) this section.
(2) A public infrastructure district bond:
(a) shall mature within 40 years of the date of issuance; and
(b) may not be secured by any improvement or facility paid for by the public
infrastructure district.
(3) (a) A public infrastructure district may issue a limited tax bond, in the same manner
as a general obligation bond:
(i) with the consent of 100% of surface property owners within the boundaries of the
public infrastructure district and 100% of the registered voters, if any, within the boundaries of
the proposed public infrastructure district; or
(ii) upon approval of a majority of the registered voters within the boundaries of the
public infrastructure district voting in an election held for that purpose under Title 11, Chapter
14, Local Government Bonding Act.
(b) A limited tax bond described in Subsection (3)(a):
(i) is not subject to the limitation on a general obligation bond described in Subsection
17B-1-1102
(4)(a)(xii); and
(ii) is subject to a limitation, if any, on the principal amount of indebtedness as
described in the governing document.
(c) Unless limited tax bonds are initially purchased exclusively by one or more
qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, the public
infrastructure district may only issue limited tax bonds in denominations of not less than
$500,000, and in integral multiples above $500,000 of not less than $1,000 each.
(d) (i) Without any further election or consent of property owners or registered voters,
a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to
a general obligation bond if the principal amount of the related limited tax bond together with
the principal amount of other related outstanding general obligation bonds of the public
infrastructure district does not exceed 15% of the fair market value of taxable property in the
public improvement district securing the general obligation bonds, determined by:
(A) an appraisal from an appraiser who is a member of the Appraisal Institute that is
addressed to the public infrastructure district or a financial institution; or
(B) the most recent market value of the property from the assessor of the county in
which the property is located.
(ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
sufficient to meet any statutory or constitutional election requirement necessary for the
issuance of the limited tax bond and any general obligation bond to be issued in place of the
limited tax bond upon meeting the requirements of this Subsection (3)(d).
(iii) A general obligation bond resulting from a conversion of a limited tax bond under
this Subsection (3)(d) is not subject to the limitation on general obligation bonds described in
Subsection 
17B-1-1102
(4)(a)(xii).
(4) There is no limitation on the duration of revenues that a public infrastructure
district may receive to cover any shortfall in the payment of principal of and interest on a bond
that the public infrastructure district issues.
(5) A public infrastructure district is not a municipal corporation for purposes of the
debt limitation of Utah Constitution, Article XIV, Section 4.
(6) The board may, by resolution, delegate to one or more officers of the public
infrastructure district the authority to:
(a) in accordance and within the parameters set forth in a resolution adopted in
accordance with Section 
11-14-302
, approve the final interest rate, price, principal amount,
maturity, redemption features, and other terms of the bond;
(b) approve and execute any document relating to the issuance of a bond; and
(c) approve any contract related to the acquisition and construction of the
improvements, facilities, or property to be financed with a bond.
(7) (a) Any person may contest the legality of the issuance of a public infrastructure
district bond or any provisions for the security and payment of the bond for a period of 30 days
after:
(i) publication of the resolution authorizing the bond; or
(ii) publication of a notice of bond containing substantially the items required under
Subsection 
11-14-316
(2).
(b) After the 30-day period described in Subsection (7)(a), no person may bring a
lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any
reason.
(8) (a) In the event of any statutory change in the methodology of assessment or
collection of property taxes in a manner that reduces the amounts which are devoted or pledged
to the repayment of limited tax bonds, a public infrastructure district may charge a rate
sufficient to receive the amount of property taxes or assessment the public infrastructure
district would have received before the statutory change in order to pay the debt service on
outstanding limited tax bonds.
(b) The rate increase described in Subsection (8)(a) may exceed the limit described in
Section 
17B-2a-1209
.
(c) The public infrastructure district may charge the rate increase described in
Subsection (8)(a) until the bonds, including any associated refunding bonds, or other securities,
together with applicable interest, are fully met and discharged.
Section 11. Section 
17B-2a-1208
 is enacted to read:
 17B-2a-1208.
Fees.
A public infrastructure district may charge a fee or other charge for an administrative
service that the public infrastructure district provides, to pay some or all of the public
infrastructure district's:
(1) costs of acquiring, improving, or extending improvements, facilities, or property; or
(2) costs associated with the enforcement of a legal remedy.
Section 12. Section 
17B-2a-1209
 is enacted to read:
 17B-2a-1209.
Limits on public infrastructure district property tax levy -- Notice
requirements.
(1) The property tax levy of a public infrastructure district, for all purposes, including
payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value
of taxable property in the district.
(2) The limitation described in Subsection (1) does not apply to the levy by the public
infrastructure district to pay principal of and interest on a general obligation bond that the
public infrastructure district issues.
(3) (a) Within 30 days after the day on which the creating entity adopts the resolution
creating the public infrastructure district, the board shall record a notice with the recorder of
the county in which property within the public infrastructure district is located.
(b) The notice described in Subsection (3)(a) shall:
(i) contain a description of the boundaries of the public infrastructure district;
(ii) state that a copy of the governing document is on file at the office of the creating
entity;
(iii) state that the public infrastructure district may finance and repay infrastructure and
other improvements through the levy of a property tax; and
(iv) state the maximum rate that the public infrastructure district may levy.
Section 13. Section 
17B-2a-1210
 is enacted to read:
 17B-2a-1210.
Property tax penalty for nonpayment.
In the event of nonpayment of any tax, fee, or charge that a public infrastructure district
imposes, the public infrastructure district may impose a property tax penalty at an annual rate
of .07, in addition to any other lawful penalty for nonpayment of property tax.
Section 14. Section 
17B-2a-1211
 is enacted to read:
 17B-2a-1211.
Relation to other local entities.
(1) Notwithstanding the creation of the public infrastructure district, the creating entity
and any other public entity, as applicable, retains all of the entity's authority over all zoning,
planning, design specifications and approvals, and permitting within the public infrastructure
district.
(2) The inclusion of property within the boundaries of a public infrastructure district
does not preclude the inclusion of the property within any other local district.
(3) (a) All infrastructure that is connected to another public entity's system:
(i) belongs to that public entity, regardless of inclusion within the boundaries of a
public infrastructure district, unless the public infrastructure district and the public entity
otherwise agree; and
(ii) shall comply with the design, inspection requirements, and other standards of the
public entity.
(b) The public infrastructure district shall convey or transfer the infrastructure
described in Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
cost to the public entity.
Section 15. Section 
17B-2a-1212
 is enacted to read:
 17B-2a-1212.
Transparency.
A public infrastructure district shall file annual reports with the creating entity
regarding the public infrastructure district's actions as provided in the governing document.
Section 16. Section 
17B-2a-1213
 is enacted to read:
 17B-2a-1213.
Action to contest tax, fee, or proceeding -- Requirements --
Exclusive remedy -- Bonds, taxes, and fees incontestable.
(1) A person who contests a tax or fee or any proceeding to create a public
infrastructure district, levy a tax, or impose a fee may bring a civil action against the public
infrastructure district or the creating entity to:
(a) set aside the proceeding; or
(b) enjoin the levy, imposition, or collection of a tax or fee.
(2) The person bringing an action described in Subsection (1):
(a) shall bring the action in the district court with jurisdiction in the county in which
the public infrastructure district is located; and
(b) may not bring the action against or serve a summons relating to the action on the
public infrastructure district more than 30 days after the effective date of the:
(i) creation of the public infrastructure district, if the challenge is to the creation of the
public infrastructure district; or
(ii) tax or fee, if the challenge is to a tax or fee.
(3) An action under Subsection (1) is the exclusive remedy of a person who:
(a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
infrastructure district, levy a tax, or impose a fee; or
(b) challenges a bondholder's right to repayment.
(4) After the expiration of the 30-day period described in Subsection (2)(b):
(a) a bond issued or to be issued with respect to a public infrastructure district and any
tax levied or fee imposed becomes incontestable against any person who has not brought an
action and served a summons in accordance with this section;
(b) a person may not bring a suit to:
(i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
enforcement of a tax or fee; or
(ii) attack or question in any way the legality of a bond, tax, or fee; and
(c) a court may not inquire into the matters described in Subsection (4)(b).
(5) (a) This section does not insulate a public infrastructure district from a claim of
misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).
(b) (i) Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus
is the sole form of relief available to a party challenging the misuse of funds.
(ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
charges against or the prosecution of a party for the misuse of funds.
Section 17. Section 
59-2-1317
 is amended to read:
59-2-1317.
Tax notice -- Contents of notice -- Procedures and requirements for
providing notice.
(1) As used in this section, "political subdivision lien" means the same as that term is
defined in Section 
11-60-102
.
(2) Subject to the other provisions of this section, the county treasurer shall:
(a) collect the taxes and tax notice charges; and
(b) provide a notice to each taxpayer that contains the following:
(i) the kind and value of property assessed to the taxpayer;
(ii) the street address of the property, if available to the county;
(iii) that the property may be subject to a detailed review in the next year under Section
59-2-303.1
;
(iv) the amount of taxes levied;
(v) a separate statement of the taxes levied only on a certain kind or class of property
for a special purpose;
(vi) property tax information pertaining to taxpayer relief, options for payment of
taxes, and collection procedures;
(vii) any tax notice charges applicable to the property, including:
(A) if applicable, a political subdivision lien for road damage that a railroad company
causes, as described in Section 
10-7-30
;
(B) if applicable, a political subdivision lien for municipal water distribution, as
described in Section 
10-8-17
, or a political subdivision lien for an increase in supply from a
municipal water distribution, as described in Section 
10-8-19
;
(C) if applicable, a political subdivision lien for unpaid abatement fees as described in
Section 
10-11-4
;
(D) if applicable, a political subdivision lien for the unpaid portion of an assessment
assessed in accordance with Title 11, Chapter 42, Assessment Area Act, or Title 11, Chapter
42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and
interest as of the date the local entity certifies the unpaid amount to the county treasurer;
(E) if applicable, for a local district in accordance with Section 
17B-1-902
, a political
subdivision lien for an unpaid fee, administrative cost, or interest
;
(F) if applicable, a political subdivision lien for an unpaid irrigation district use charge
as described in Section 
17B-2a-506
; [
and
]
(G) if applicable, a political subdivision lien for a contract assessment under a water
contract, as described in Section 
17B-2a-1007
; 
and
(H) if applicable, a property tax penalty that a public infrastructure district imposes, as
described in Section 
17B-2a-1210
;
(viii) a statement that, due to potentially ongoing charges, costs, penalties, and interest,
payment of a tax notice charge may not:
(A) pay off the full amount the property owner owes to the tax notice entity; or
(B) cause a release of the lien underlying the tax notice charge;
(ix) the date the taxes and tax notice charges are due;
(x) the street address at which the taxes and tax notice charges may be paid;
(xi) the date on which the taxes and tax notice charges are delinquent;
(xii) the penalty imposed on delinquent taxes and tax notice charges;
(xiii) a statement that explains the taxpayer's right to direct allocation of a partial
payment in accordance with Subsection (9); 
(xiv) other information specifically authorized to be included on the notice under this
chapter; and
(xv) other property tax information approved by the commission.
(3) (a) Unless expressly allowed under this section or another statutory provision, the
treasurer may not add an amount to be collected to the property tax notice.
(b) If the county treasurer adds an amount to be collected to the property tax notice
under this section or another statutory provision that expressly authorizes the item's inclusion
on the property tax notice:
(i) the amount constitutes a tax notice charge; and
(ii) (A) the tax notice charge has the same priority as property tax; and
(B) a delinquency of the tax notice charge triggers a tax sale, in accordance with
Section 
59-2-1343
. 
(4) For any property for which property taxes or tax notice charges are delinquent, the
notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent
on this parcel."
(5) Except as provided in Subsection (6), the county treasurer shall:
(a) mail the notice required by this section, postage prepaid; or
(b) leave the notice required by this section at the taxpayer's residence or usual place of
business, if known.
(6) (a) Subject to the other provisions of this Subsection (6), a county treasurer may, at
the county treasurer's discretion, provide the notice required by this section by electronic mail if
a taxpayer makes an election, according to procedures determined by the county treasurer, to
receive the notice by electronic mail.
(b) A taxpayer may revoke an election to receive the notice required by this section by
electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
(c) A revocation of an election under this section does not relieve a taxpayer of the
duty to pay a tax or tax notice charge due under this chapter on or before the due date for
paying the tax or tax notice charge.
(d) A county treasurer shall provide the notice required by this section using a method
described in Subsection (5), until a taxpayer makes a new election in accordance with this
Subsection (6), if:
(i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the
notice required by this section by electronic mail; or
(ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
(e) A person is considered to be a taxpayer for purposes of this Subsection (6)
regardless of whether the property that is the subject of the notice required by this section is
exempt from taxation.
(7) (a) The county treasurer shall provide the notice required by this section to a
taxpayer on or before November 1.
(b) The county treasurer shall keep on file in the county treasurer's office the
information set forth in the notice.
(c) The county treasurer is not required to mail a tax receipt acknowledging payment.
(8) This section does not apply to property taxed under Section 
59-2-1302
 or
59-2-1307
.
(9) (a) A taxpayer who pays less than the full amount due on the taxpayer's property tax
notice may, on a form provided by the county treasurer, direct how the county treasurer
allocates the partial payment between:
(i) the total amount due for property tax;
(ii) the amount due for assessments, past due local district fees, and other tax notice
charges; and
(iii) any other amounts due on the property tax notice.
(b) The county treasurer shall comply with a direction submitted to the county treasurer
in accordance with Subsection (9)(a).
(c) The provisions of this Subsection (9) do not:
(i) affect the right or ability of a local entity to pursue any available remedy for
non-payment of any item listed on a taxpayer's property tax notice; or
(ii) toll or otherwise change any time period related to a remedy described in
Subsection (9)(c)(i).