Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 37 Third Substitute (2021GS)

Sponsor

Sen. McCay, D.

Final action

Governor Signed 3/17/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• renumbers provisions related to public infrastructure districts; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

PUBLIC INFRASTRUCTURE DISTRICT REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
House Sponsor: 
James A. Dunnigan
LONG TITLE
General Description:
This bill modifies provisions related to public infrastructure districts.
Highlighted Provisions:
This bill:
▸ renumbers provisions related to public infrastructure districts; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-42-102
, as last amended by Laws of Utah 2020, Chapter 282
11-42-106
, as last amended by Laws of Utah 2020, Chapter 282
11-42-201
, as last amended by Laws of Utah 2019, Chapter 490
11-42-411
, as last amended by Laws of Utah 2020, Chapter 282
17B-1-102
, as last amended by Laws of Utah 2019, Chapter 490
17B-1-1102
, as last amended by Laws of Utah 2019, Chapter 490
59-2-102
, as last amended by Laws of Utah 2020, Chapters 38, 40, and 86
59-2-1317
, as last amended by Laws of Utah 2019, Chapters 207 and 490
63H-1-102
, as last amended by Laws of Utah 2020, Chapter 282
RENUMBERS AND AMENDS:
17D-4-101
, (Renumbered from 17B-2a-1201, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-102
, (Renumbered from 17B-2a-1202, as last amended by Laws of Utah 2020,
Chapters 282 and 397)
17D-4-103
, (Renumbered from 17B-2a-1203, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-201
, (Renumbered from 17B-2a-1204, as last amended by Laws of Utah 2020,
Chapters 282 and 397)
17D-4-202
, (Renumbered from 17B-2a-1205, as last amended by Laws of Utah 2020,
Chapters 282 and 397)
17D-4-203
, (Renumbered from 17B-2a-1206, as last amended by Laws of Utah 2020,
Chapter 282)
17D-4-204
, (Renumbered from 17B-2a-1211, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-205
, (Renumbered from 17B-2a-1212, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-301
, (Renumbered from 17B-2a-1207, as last amended by Laws of Utah 2020,
Chapters 354 and 397)
17D-4-302
, (Renumbered from 17B-2a-1208, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-303
, (Renumbered from 17B-2a-1209, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-304
, (Renumbered from 17B-2a-1210, as enacted by Laws of Utah 2019,
Chapter 490)
17D-4-305
, (Renumbered from 17B-2a-1213, as enacted by Laws of Utah 2019,
Chapter 490)
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-42-102
 is amended to read:
11-42-102.
Definitions.
(1) As used in this chapter:
(a) "Adequate protests" means, for all proposed assessment areas except sewer
assessment areas, 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:
(i) protests relating to:
(A) property that has been deleted from a proposed assessment area; or
(B) an improvement that has been deleted from the proposed improvements to be
provided to property within the proposed assessment area; and
(ii) protests that have been withdrawn under Subsection 
11-42-203
(3).
(b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
written protests under Section 
11-42-203
 that represent at least 70% 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 adequate protests under Subsection
(1)(a).
(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) "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 that improves the use, function, aesthetics, or
environmental condition of publicly owned property.
(20) "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.
(21) "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
;
(d) for the military installation development authority created in Section 
63H-1-201
,
the board, as defined in Section 
63H-1-102
; [
and
]
(e) for the Utah Inland Port Authority, created in Section 
11-58-201
, the board, as
defined in Section 
11-58-102
[
.
]
; and
(f) for a public infrastructure district, the board of the public infrastructure district as
defined in Section 
17D-4-102
.
(22) "Guaranty fund" means the fund established by a local entity under Section
11-42-701
.
(23) "Improved property" means property upon which a residential, commercial, or
other building has been built.
(24) "Improvement":
(a) (i) means a publicly owned infrastructure, facility, system, or 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 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 (24)(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
.
(25) "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.
(26) "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.
(27) "Installment payment date" means the date on which an installment payment of an
assessment is payable.
(28) "Interim warrant" means a warrant issued by a local entity under Section
11-42-601
.
(29) "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.
(30) "Local district" means a local district under Title 17B, Limited Purpose Local
Government Entities - Local Districts.
(31) "Local entity" means:
(a) a county, city, town, special service district, or local district;
(b) an interlocal entity as defined in Section 
11-13-103
;
(c) the military installation development authority, created in Section 
63H-1-201
;
(d) 
a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
District Act, including
 a public infrastructure district created by the military installation
development authority [
under Title 17B, Chapter 2a, Part 12, Public Infrastructure District
Act
];
(e) the Utah Inland Port Authority, created in Section 
11-58-201
; or
(f) any other political subdivision of the state.
(32) "Local entity obligations" means assessment bonds, refunding assessment bonds,
interim warrants, and bond anticipation notes issued by a local entity.
(33) "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.
(34) "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.
(35) "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.
(36) "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.
(37) "Prior assessment ordinance" means the ordinance levying the assessments from
which the prior bonds are payable.
(38) "Prior assessment resolution" means the resolution levying the assessments from
which the prior bonds are payable.
(39) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
refunding assessment bonds.
(40) "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.
(41) "Property" includes real property and any interest in real property, including water
rights and leasehold rights.
(42) "Property price" means the price at which a local entity purchases or acquires by
eminent domain property to make improvements in an assessment area.
(43) "Provide" or "providing," with reference to an improvement, includes the
acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
expansion of an improvement.
(44) "Public agency" means:
(a) the state or any agency, department, or division of the state; and
(b) a political subdivision of the state.
(45) "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
.
(46) "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.
(47) "Reserve fund" means a fund established by a local entity under Section
11-42-702
.
(48) "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.
(49) (a) "Sewer assessment area" means an assessment area that has as the assessment
area's primary purpose the financing and funding of public improvements to provide sewer
service where there is, in the opinion of the local board of health, substantial evidence of septic
system failure in the defined area due to inadequate soils, high water table, or other factors
proven to cause failure.
(b) "Sewer assessment area" does not include property otherwise located within the
assessment area:
(i) on which an approved conventional or advanced wastewater system has been
installed during the previous five calendar years;
(ii) for which the local health department has inspected the system described in
Subsection (49)(b)(i) to ensure that the system is functioning properly; and
(iii) for which the property owner opts out of the proposed assessment area for the
earlier of a period of 10 calendar years or until failure of the system described in Subsection
(49)(b)(i).
(50) "Special service district" means the same as that term is defined in Section
17D-1-102
.
(51) "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.
(52) "Unimproved property" means property upon which no residential, commercial, or
other building has been built.
(53) "Voluntary assessment area" means an assessment area that contains only property
whose owners have voluntarily consented to an assessment.
Section 2. Section 
11-42-106
 is amended to read:
11-42-106.
Action to contest assessment or proceeding -- Requirements --
Exclusive remedy -- Bonds and assessment incontestable.
(1) A person who contests an assessment or any proceeding to designate an assessment
area or levy an assessment may commence a civil action against the local entity to:
(a) set aside a proceeding to designate an assessment area; or
(b) enjoin the levy or collection of an assessment.
(2) (a) Each action under Subsection (1) shall be commenced in the district court with
jurisdiction in the county in which the assessment area is located.
(b) (i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
not be commenced against and a summons relating to the action may not be served on the local
entity more than 60 days after the effective date of the:
(A) designation resolution or designation ordinance, if the challenge is to the
designation of an assessment area;
(B) assessment resolution or ordinance, if the challenge is to an assessment; or
(C) amended resolution or ordinance, if the challenge is to an amendment.
(ii) The period for commencing an action and serving a summons under Subsection
(2)(b)(i) is 30 days if the designation resolution, assessment resolution, or amended resolution
was:
(A) adopted by the military installation development authority, created in Section
63H-1-201
, or a public infrastructure district created by the military installation development
authority under [
Title 17B, Chapter 2a, Part 12
] 
Title 17D, Chapter 4
, Public Infrastructure
District Act; and
(B) all owners of property within the assessment area or proposed assessment area
consent in writing to the designation resolution, assessment resolution, or amended resolution.
(3) (a) An action under Subsection (1) is the exclusive remedy of a person who:
(i) claims an error or irregularity in an assessment or in any proceeding to designate an
assessment area or levy an assessment; or
(ii) challenges a bondholder's right to repayment.
(b) A court may not hear any complaint under Subsection (1) that a person was
authorized to make but did not make in a protest under Section 
11-42-203
 or at a hearing under
Section 
11-42-204
.
(c) (i) If a person has not brought a claim for which the person was previously
authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
may not be brought later because of an amendment to the resolution or ordinance unless the
claim arises from the amendment itself.
(ii) In an action brought pursuant to Subsection (1), a person may not contest a
previous decision, proceeding, or determination for which the service deadline described in
Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
determination.
(4) An assessment or a proceeding to designate an assessment area or to levy an
assessment may not be declared invalid or set aside in part or in whole because of an error or
irregularity that does not go to the equity or justice of the proceeding or the assessment meeting
the requirements of Section 
11-42-409
.
(5) After the expiration of the period referred to in Subsection (2)(b):
(a) assessment bonds and refunding assessment bonds issued or to be issued with
respect to an assessment area and assessments levied on property in the assessment area
become at that time incontestable against all persons who have not commenced an action and
served a summons as provided in this section; and
(b) a suit to enjoin the issuance or payment of assessment bonds or refunding
assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
question in any way the legality of assessment bonds, refunding assessment bonds, or an
assessment may not be commenced, and a court may not inquire into those matters.
(6) (a) This section may not be interpreted to insulate a local entity from a claim of
misuse of assessment funds after the expiration of the period described in Subsection (2)(b).
(b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
is the sole form of relief available to a party challenging the misuse of assessment funds.
(ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
charges against or the prosecution of a party for the misuse of assessment funds.
Section 3. 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
] 
created under Title 17D, Chapter 4, Public Infrastructure District Act
, 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 4. 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), provide that some or all of the assessment be paid in installments over a
period:
(i) not to exceed 20 years from the effective date of the resolution or ordinance, except
as provided in Subsection (1)(a)(ii); or
(ii) not to exceed 30 years from the effective date of the resolution, for a resolution
adopted by:
(A) the military installation development authority, created in Section 
63H-1-201
; or
(B) a public infrastructure district created by the military installation development
authority under [
Title 17B, Chapter 2a, Part 12
] 
Title 17D, Chapter 4
, Public Infrastructure
District Act.
(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; or
(b) in substantially equal installments of principal and interest.
(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 5. 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.
]
[
(24)
] 
(23)
 "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.
[
(25)
] 
(24)
 "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.
[
(26)
] 
(25)
 "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.
[
(27)
] 
(26)
 "Service applicant" means a person who requests that a local district
provide a service that the local district is authorized to provide.
[
(28)
] 
(27)
 "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.
[
(29)
] 
(28)
 "Short-term bond" means a bond that is required to be repaid during the
fiscal year in which the bond is issued.
[
(30)
] 
(29)
 "Special assessment" means an assessment levied against property to pay all
or a portion of the costs of making improvements that benefit the property.
[
(31)
] 
(30)
 "Special assessment bond" means a bond payable from special assessments.
[
(32)
] 
(31)
 "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, a municipal services district, or a public
infrastructure district.
[
(33)
] 
(32)
 "Taxable value" means the taxable value of property as computed from the
most recent equalized assessment roll for county purposes.
[
(34)
] 
(33)
 "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.
[
(35)
] 
(34)
 "Unincorporated" means not included within a municipality.
[
(36)
] 
(35)
 "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.
[
(37)
] 
(36)
 "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 6. 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, 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 7. Section 
17D-4-101
, which is renumbered from Section 17B-2a-1201 is
renumbered and amended to read:
CHAPTER 4. PUBLIC INFRASTRUCTURE DISTRICT ACT
Part 1. General Provisions
[
17B-2a-1201
].
 17D-4-101.
Title.
This [
part
] 
chapter
 is known as 
the
 "Public Infrastructure District Act."
Section 8. Section 
17D-4-102
, which is renumbered from Section 17B-2a-1202 is
renumbered and amended to read:
[
17B-2a-1202
].
 17D-4-102.
Definitions.
As used in this [
part
] 
chapter
:
(1) "Board" means the board of trustees of a public infrastructure district.
(2) "Creating entity" means the county, municipality, or development authority that
approves the creation of [
the
] 
a
 public infrastructure district.
(3) "Development authority" means the military installation development authority
created in Section 
63H-1-201
.
(4) "District applicant" means the person proposing the creation of [
the
] 
a
 public
infrastructure district.
(5) "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.
(6) "Governing document" means the document governing [
the
] 
a
 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 
Title 17B,
 Chapter 1,
Provisions Applicable to All Local Districts, and this [
part
] 
chapter
.
(7) (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
] 
a
 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 property tax levy rate limit established under Section [
17B-2a-1209
] 
17D-4-303
 for
any fiscal year, except as provided in Subsection [
17B-2a-1207
(8)
] 
17D-4-301
(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 9. Section 
17D-4-103
, which is renumbered from Section 17B-2a-1203 is
renumbered and amended to read:
[
17B-2a-1203
].
 17D-4-103.
Provisions applicable to public infrastructure
districts.
(1) Each public infrastructure district is governed by and has the powers stated in:
(a) this [
part
] 
chapter
; and
(b) 
Title 17B,
 Chapter 1, Provisions Applicable to All Local Districts.
(2) This [
part
] 
chapter
 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.
]
(3) Except as modified or exempted by this chapter, a public infrastructure district is,
to the same extent as if the public infrastructure district were a local district, subject to the
provisions in:
(a) Title 17B, Chapter 1, Provisions Applicable to All Local Districts; and
(b) Title 20A, Election Code.
(4) If there is a conflict between a provision in 
Title 17B,
 Chapter 1, Provisions
Applicable to All Local Districts, and a provision in this [
part
] 
chapter
, the provision in this
[
part governs
] 
chapter supersedes the conflicting provision in Title 17B, Chapter 1, Provisions
Applicable to All Local Districts
.
(5) The annexation of an unincorporated area by a municipality or the adjustment of a
boundary shared by more than one municipality does not affect the boundaries of a public
infrastructure district.
Section 10. Section 
17D-4-201
, which is renumbered from Section 17B-2a-1204 is
renumbered and amended to read:
Part 2. Creation, Governance, and Powers of a Public Infrastructure District
[
17B-2a-1204
].
 17D-4-201.
Creation -- Annexation or withdrawal of
property.
(1) (a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
provisions regarding creation of a local district in 
Title 17B,
 Chapter 1, Provisions Applicable
to All Local Districts, a public infrastructure district may not be created unless:
(i) 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
(ii) 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.
(b) Notwithstanding 
Title 17B,
 Chapter 1, Part 2, Creation of a Local District, and any
other provision of this [
part
] 
chapter
, the development authority may adopt a resolution
creating a public infrastructure district as a subsidiary of the development authority if all
owners of surface property proposed to be included within the public infrastructure district
consent in writing to the creation of the public infrastructure district.
(2) (a) The following do not apply to the creation of a public infrastructure district:
(i) Section 
17B-1-203
;
(ii) Section 
17B-1-204
;
(iii) Subsection 
17B-1-208
(2);
(iv) Section 
17B-1-212
; or
(v) Section 
17B-1-214
.
(b) The protest period described in Section 
17B-1-213
 may be waived in whole or in
part with the consent of:
(i) 100% of registered voters within the applicable area approving the creation of the
public infrastructure district; and
(ii) 100% of the surface property owners within the applicable area approving the
creation of the public infrastructure district.
(c) If the protest period is waived under Subsection (2)(b), a resolution approving the
creation of the public infrastructure district may be adopted in accordance with Subsection
17B-1-213
(5).
(d) A petition meeting the requirements of Subsection (1):
(i) may be certified under Section 
17B-1-209
; and
(ii) shall be filed with the lieutenant governor in accordance with Subsection
17B-1-215
(1)(b)(iii).
(3) (a) Notwithstanding 
Title 17B,
 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
] 
if the following requirements are met
:
(i) (A) adoption of resolutions of the board and the creating entity, each approving of
the annexation; or
(B) adoption of a 
resolution of the board to annex the area, provided that the
 governing
document [
that
] 
or creation resolution for the public infrastructure district
 authorizes the board
to annex an area outside of the boundaries of the public infrastructure district without [
the
]
future
 consent of the creating entity;
(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
]
, demonstrating that the registered voters approve 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
]
, demonstrating
the surface property owners' consent
 to the annexation into the public infrastructure district.
(b) [
Upon
] 
Within 30 days of
 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).
] 
file with the lieutenant governor:
(i) a copy of a notice of impending boundary action, as defined in Section 
67-1a-6.5
,
that meets the requirements of Subsection 
67-1a-6.5
(3); and
(ii) a copy of an approved final local entity plat, as defined in Section 
67-1a-6.5
.
(4) (a) Notwithstanding 
Title 17B,
 Chapter 1, Part 5, Withdrawal, property may be
withdrawn from a public infrastructure district [
after
] 
if the following requirements are met
:
(i) (A) adoption of resolutions of the board and the creating entity, each approving of
the withdrawal; or
(B) adoption of a 
resolution of the board to withdraw the property, provided that the
governing document [
that
] 
or creation resolution for the public infrastructure district
 authorizes
the board to withdraw property from the public infrastructure district without [
the consent of
]
further consent from
 the creating entity;
(ii) 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
]
, demonstrating that the registered voters approve
 of the
withdrawal from 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 withdrawn [
and consents
]
,
demonstrating that the surface property owners consent
 to the withdrawal from the public
infrastructure district.
(b) 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.
(c) Upon meeting the requirements of Subsections (4)(a) and (b), the board shall
comply with the requirements of Section 
17B-1-512
.
(5) [
The
] 
A
 creating entity may impose limitations on the powers of [
the
] 
a
 public
infrastructure district through the governing document.
(6) (a) A public infrastructure district is separate and distinct from the creating entity.
(b) (i) Except as provided in Subsection (6)(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, by the state, or by any municipality, county, or
other political subdivision.
(ii) Notwithstanding Subsection (6)(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
(6)(d)(i)(A).
(ii) A public infrastructure district, and not the creating entity, shall undertake the
enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in accordance with
Title 59, Chapter 2, Property Tax Act, or Title 11, Chapter 42, Assessment Area Act.
(7) [
The
] 
A
 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.
(8) (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 11. Section 
17D-4-202
, which is renumbered from Section 17B-2a-1205 is
renumbered and amended to read:
[
17B-2a-1205
].
 17D-4-202.
Public infrastructure district board -- Governing
document.
(1) The legislative body or board of the creating entity shall appoint the members of the
board 
of a public infrastructure district
, 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
] 
that
, 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
] 
A
 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
] 
A
 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 property tax levy 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 levy rate
limitation requires the consent of:
(i) 100% of surface property owners within the boundaries of the public infrastructure
district; and
(ii) 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.
(10) Notwithstanding any other provision of this section, the governing document
governs the number, appointment, and terms of board members of a public infrastructure
district created by the development authority.
Section 12. Section 
17D-4-203
, which is renumbered from Section 17B-2a-1206 is
renumbered and amended to read:
[
17B-2a-1206
].
 17D-4-203.
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:
]
A public infrastructure district shall have all of the authority conferred upon a local
district under Section 
17B-1-103
, and in addition 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-102
;
(c) public improvements related to the provision of housing;
(d) capital costs related to public transportation; and
(e) for a public infrastructure district created by the development authority, the cost of
acquiring or financing publicly owned infrastructure and improvements;
(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;
(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; and
(5) for a public infrastructure district created by a development authority:
(a) (i) operate and maintain publicly owned infrastructure and improvements the
district acquires or finances; and
(ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
publicly owned infrastructure and improvements; and
(b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
Section 13. Section 
17D-4-204
, which is renumbered from Section 17B-2a-1211 is
renumbered and amended to read:
[
17B-2a-1211
].
 17D-4-204.
Relation to other local entities.
(1) Notwithstanding the creation of [
the
] 
a
 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
] 
A
 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 14. Section 
17D-4-205
, which is renumbered from Section 17B-2a-1212 is
renumbered and amended to read:
[
17B-2a-1212
].
 17D-4-205.
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 15. Section 
17D-4-301
, which is renumbered from Section 17B-2a-1207 is
renumbered and amended to read:
Part 3. Bond Issuance, Fee Collection, and Property Tax Levy Authority for a
Public Infrastructure District
[
17B-2a-1207
].
 17D-4-301.
Public infrastructure district bonds.
(1) A public infrastructure district may issue negotiable bonds for the purposes
described in Section [
17B-2a-1206
] 
17D-4-203
, 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 infrastructure 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).
(e) A public infrastructure district that levies a property tax for payment of debt service
on a limited tax bond issued under this section is not required to comply with the notice and
hearing requirements of Section 
59-2-919
 unless the rate exceeds the rate established in:
(i) Section [
17B-2a-1209
] 
17D-4-303
, except as provided in Subsection (8);
(ii) the governing document; or
(iii) the documents relating to the issuance of the limited tax bond.
(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
] 
17D-4-303
.
(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 16. Section 
17D-4-302
, which is renumbered from Section 17B-2a-1208 is
renumbered and amended to read:
[
17B-2a-1208
].
 17D-4-302.
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 17. Section 
17D-4-303
, which is renumbered from Section 17B-2a-1209 is
renumbered and amended to read:
[
17B-2a-1209
].
 17D-4-303.
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 lieutenant governor issues a certificate of
incorporation under Section 
67-1a-6.5
, 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 18. Section 
17D-4-304
, which is renumbered from Section 17B-2a-1210 is
renumbered and amended to read:
[
17B-2a-1210
].
 17D-4-304.
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 19. Section 
17D-4-305
, which is renumbered from Section 17B-2a-1213 is
renumbered and amended to read:
[
17B-2a-1213
].
 17D-4-305.
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 20. Section 
59-2-102
 is amended to read:
59-2-102.
Definitions.
As used in this chapter:
(1) (a) "Acquisition cost" means any cost required to put an item of tangible personal
property into service.
(b) "Acquisition cost" includes:
(i) the purchase price of a new or used item;
(ii) the cost of freight, shipping, loading at origin, unloading at destination, crating,
skidding, or any other applicable cost of shipping;
(iii) the cost of installation, engineering, rigging, erection, or assembly, including
foundations, pilings, utility connections, or similar costs; and
(iv) sales and use taxes.
(2) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
engaging in dispensing activities directly affecting agriculture or horticulture with an
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
rotorcraft's use for agricultural and pest control purposes.
(3) "Air charter service" means an air carrier operation that requires the customer to
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(4) "Air contract service" means an air carrier operation available only to customers
that engage the services of the carrier through a contractual agreement and excess capacity on
any trip and is not available to the public at large.
(5) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(6) (a) Except as provided in Subsection (6)(b), "airline" means an air carrier that:
(i) operates:
(A) on an interstate route; and
(B) on a scheduled basis; and
(ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
regularly scheduled route.
(b) "Airline" does not include an:
(i) air charter service; or
(ii) air contract service.
(7) "Assessment roll" or "assessment book" means a permanent record of the
assessment of property as assessed by the county assessor and the commission and may be
maintained manually or as a computerized file as a consolidated record or as multiple records
by type, classification, or categories.
(8) "Base parcel" means a parcel of property that was legally:
(a) subdivided into two or more lots, parcels, or other divisions of land; or
(b) (i) combined with one or more other parcels of property; and
(ii) subdivided into two or more lots, parcels, or other divisions of land.
(9) (a) "Certified revenue levy" means a property tax levy that provides an amount of
ad valorem property tax revenue equal to the sum of:
(i) the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a multicounty assessing and collecting levy, as specified in
Section 
59-2-1602
; and
(ii) the product of:
(A) eligible new growth, as defined in Section 
59-2-924
; and
(B) the multicounty assessing and collecting levy certified by the commission for the
previous year.
(b) For purposes of this Subsection (9), "ad valorem property tax revenue" does not
include property tax revenue received by a taxing entity from personal property that is:
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
(ii) semiconductor manufacturing equipment.
(c) For purposes of calculating the certified revenue levy described in this Subsection
(9), the commission shall use:
(i) the taxable value of real property assessed by a county assessor contained on the
assessment roll;
(ii) the taxable value of real and personal property assessed by the commission; and
(iii) the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
(10) "County-assessed commercial vehicle" means:
(a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
41-1a-301
 and is not operated interstate to transport the vehicle owner's goods or property in
furtherance of the owner's commercial enterprise;
(b) any passenger vehicle owned by a business and used by its employees for
transportation as a company car or vanpool vehicle; and
(c) vehicles that are:
(i) especially constructed for towing or wrecking, and that are not otherwise used to
transport goods, merchandise, or people for compensation;
(ii) used or licensed as taxicabs or limousines;
(iii) used as rental passenger cars, travel trailers, or motor homes;
(iv) used or licensed in this state for use as ambulances or hearses;
(v) especially designed and used for garbage and rubbish collection; or
(vi) used exclusively to transport students or their instructors to or from any private,
public, or religious school or school activities.
(11) "Eligible judgment" means a final and unappealable judgment or order under
Section 
59-2-1330
:
(a) that became a final and unappealable judgment or order no more than 14 months
before the day on which the notice described in Section 
59-2-919.1
 is required to be provided;
and
(b) for which a taxing entity's share of the final and unappealable judgment or order is
greater than or equal to the lesser of:
(i) $5,000; or
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
previous fiscal year.
(12) (a) "Escaped property" means any property, whether personal, land, or any
improvements to the property, that is subject to taxation and is:
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
to the wrong taxpayer by the assessing authority;
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
comply with the reporting requirements of this chapter; or
(iii) undervalued because of errors made by the assessing authority based upon
incomplete or erroneous information furnished by the taxpayer.
(b) "Escaped property" does not include property that is undervalued because of the use
of a different valuation methodology or because of a different application of the same valuation
methodology.
(13)(a) "Fair market value" means the amount at which property would change hands
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
and both having reasonable knowledge of the relevant facts.
(b) For purposes of taxation, "fair market value" shall be determined using the current
zoning laws applicable to the property in question, except in cases where there is a reasonable
probability of a change in the zoning laws affecting that property in the tax year in question and
the change would have an appreciable influence upon the value.
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
degrees centigrade naturally present in a geothermal system.
(15) "Geothermal resource" means:
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
and
(b) the energy, in whatever form, including pressure, present in, resulting from, created
by, or which may be extracted from that natural heat, directly or through a material medium.
(16) (a) "Goodwill" means:
(i) acquired goodwill that is reported as goodwill on the books and records that a
taxpayer maintains for financial reporting purposes; or
(ii) the ability of a business to:
(A) generate income that exceeds a normal rate of return on assets and that results from
a factor described in Subsection (16)(b); or
(B) obtain an economic or competitive advantage resulting from a factor described in
Subsection (16)(b).
(b) The following factors apply to Subsection (16)(a)(ii):
(i) superior management skills;
(ii) reputation;
(iii) customer relationships;
(iv) patronage; or
(v) a factor similar to Subsections (16)(b)(i) through (iv).
(c) "Goodwill" does not include:
(i) the intangible property described in Subsection (19)(a) or (b);
(ii) locational attributes of real property, including:
(A) zoning;
(B) location;
(C) view;
(D) a geographic feature;
(E) an easement;
(F) a covenant;
(G) proximity to raw materials;
(H) the condition of surrounding property; or
(I) proximity to markets;
(iii) value attributable to the identification of an improvement to real property,
including:
(A) reputation of the designer, builder, or architect of the improvement;
(B) a name given to, or associated with, the improvement; or
(C) the historic significance of an improvement; or
(iv) the enhancement or assemblage value specifically attributable to the interrelation
of the existing tangible property in place working together as a unit.
(17) "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
Local Districts, the local district's board of trustees;
(c) for a school district, the local board of education; [
or
]
(d) for a special service district under Title 17D, Chapter 1, Special Service District
Act:
(i) the legislative body of the county or municipality that created the special service
district, to the extent that the county or municipal legislative body has not delegated authority
to an administrative control board established under Section 
17D-1-301
; or
(ii) the administrative control board, to the extent that the county or municipal
legislative body has delegated authority to an administrative control board established under
Section 
17D-1-301
[
.
]
; or
(e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
District Act, the public infrastructure district's board of trustees.
(18) (a) Except as provided in Subsection (18)(c), "improvement" means a building,
structure, fixture, fence, or other item that is permanently attached to land, regardless of
whether the title has been acquired to the land, if:
(i) (A) attachment to land is essential to the operation or use of the item; and
(B) the manner of attachment to land suggests that the item will remain attached to the
land in the same place over the useful life of the item; or
(ii) removal of the item would:
(A) cause substantial damage to the item; or
(B) require substantial alteration or repair of a structure to which the item is attached.
(b) "Improvement" includes:
(i) an accessory to an item described in Subsection (18)(a) if the accessory is:
(A) essential to the operation of the item described in Subsection (18)(a); and
(B) installed solely to serve the operation of the item described in Subsection (18)(a);
and
(ii) an item described in Subsection (18)(a) that is temporarily detached from the land
for repairs and remains located on the land.
(c) "Improvement" does not include:
(i) an item considered to be personal property pursuant to rules made in accordance
with Section 
59-2-107
;
(ii) a moveable item that is attached to land for stability only or for an obvious
temporary purpose;
(iii) (A) manufacturing equipment and machinery; or
(B) essential accessories to manufacturing equipment and machinery;
(iv) an item attached to the land in a manner that facilitates removal without substantial
damage to the land or the item; or
(v) a transportable factory-built housing unit as defined in Section 
59-2-1502
 if that
transportable factory-built housing unit is considered to be personal property under Section
59-2-1503
.
(19) "Intangible property" means:
(a) property that is capable of private ownership separate from tangible property,
including:
(i) money;
(ii) credits;
(iii) bonds;
(iv) stocks;
(v) representative property;
(vi) franchises;
(vii) licenses;
(viii) trade names;
(ix) copyrights; and
(x) patents;
(b) a low-income housing tax credit;
(c) goodwill; or
(d) a renewable energy tax credit or incentive, including:
(i) a federal renewable energy production tax credit under Section 45, Internal Revenue
Code;
(ii) a federal energy credit for qualified renewable electricity production facilities under
Section 48, Internal Revenue Code;
(iii) a federal grant for a renewable energy property under American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv) a tax credit under Subsection 
59-7-614
(5).
(20) "Livestock" means:
(a) a domestic animal;
(b) a fish;
(c) a fur-bearing animal;
(d) a honeybee; or
(e) poultry.
(21) "Low-income housing tax credit" means:
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
or
(b) a low-income housing tax credit under Section 
59-7-607
 or Section 
59-10-1010
.
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
valuable mineral.
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
otherwise removing a mineral from a mine.
(25) (a) "Mobile flight equipment" means tangible personal property that is owned or
operated by an air charter service, air contract service, or airline and:
(i) is capable of flight or is attached to an aircraft that is capable of flight; or
(ii) is contained in an aircraft that is capable of flight if the tangible personal property
is intended to be used:
(A) during multiple flights;
(B) during a takeoff, flight, or landing; and
(C) as a service provided by an air charter service, air contract service, or airline.
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
engine that is rotated at regular intervals with an engine that is attached to the aircraft.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "regular intervals."
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
sand, rock, gravel, and all carboniferous materials.
(27) "Part-year residential property" means property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the calendar
year.
(28) "Personal property" includes:
(a) every class of property as defined in Subsection (29) that is the subject of
ownership and is not real estate or an improvement;
(b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
separate from the ownership of the underlying land, even if the pipe meets the definition of an
improvement;
(c) bridges and ferries;
(d) livestock; and
(e) outdoor advertising structures as defined in Section 
72-7-502
.
(29) (a) "Property" means property that is subject to assessment and taxation according
to its value.
(b) "Property" does not include intangible property as defined in this section.
(30) "Public utility" means:
(a) for purposes of this chapter, the operating property of a railroad, gas corporation, oil
or gas transportation or pipeline company, coal slurry pipeline company, electrical corporation,
telephone corporation, sewerage corporation, or heat corporation where the company performs
the service for, or delivers the commodity to, the public generally or companies serving the
public generally, or in the case of a gas corporation or an electrical corporation, where the gas
or electricity is sold or furnished to any member or consumers within the state for domestic,
commercial, or industrial use; and
(b) the operating property of any entity or person defined under Section 
54-2-1
 except
water corporations.
(31) (a) Subject to Subsection (31)(b), "qualifying exempt primary residential rental
personal property" means household furnishings, furniture, and equipment that:
(i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
(ii) are owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(iii) after applying the residential exemption described in Section 
59-2-103
, are exempt
from taxation under this chapter in accordance with Subsection 
59-2-1115
(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of this Subsection (31)
and Subsection (34).
(32) "Real estate" or "real property" includes:
(a) the possession of, claim to, ownership of, or right to the possession of land;
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
individuals or corporations growing or being on the lands of this state or the United States, and
all rights and privileges appertaining to these; and
(c) improvements.
(33) (a) "Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25%
shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
(b) For purposes of determining if a relationship described in Subsection 267(b),
Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
rules in Subsection 267(c), Internal Revenue Code.
(34) (a) "Residential property," for purposes of the reductions and adjustments under
this chapter, means any property used for residential purposes as a primary residence.
(b) "Residential property" includes:
(i) except as provided in Subsection (34)(b)(ii), includes household furnishings,
furniture, and equipment if the household furnishings, furniture, and equipment are:
(A) used exclusively within a dwelling unit that is the primary residence of a tenant;
and
(B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
and
(ii) if the county assessor determines that the property will be used for residential
purposes as a primary residence:
(A) property under construction; or
(B) unoccupied property.
(c) "Residential property" does not include property used for transient residential use.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of Subsection (31) and
this Subsection (34).
(35) "Split estate mineral rights owner" means a person that:
(a) has a legal right to extract a mineral from property;
(b) does not hold more than a 25% interest in:
(i) the land surface rights of the property where the wellhead is located; or
(ii) an entity with an ownership interest in the land surface rights of the property where
the wellhead is located;
(c) is not an entity in which the owner of the land surface rights of the property where
the wellhead is located holds more than a 25% interest; and
(d) does not have a relationship with an owner of the land surface rights of the property
where the wellhead is located.
(36) (a) "State-assessed commercial vehicle" means:
(i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
transport passengers, freight, merchandise, or other property for hire; or
(ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports
the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
(b) "State-assessed commercial vehicle" does not include vehicles used for hire that are
specified in Subsection (10)(c) as county-assessed commercial vehicles.
(37) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
a base parcel.
(38) "Tax area" means a geographic area created by the overlapping boundaries of one
or more taxing entities.
(39) "Taxable value" means fair market value less any applicable reduction allowed for
residential property under Section 
59-2-103
.
(40) "Taxing entity" means any county, city, town, school district, special taxing
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
Districts, or other political subdivision of the state with the authority to levy a tax on property.
(41) (a) "Tax roll" means a permanent record of the taxes charged on property, as
extended on the assessment roll, and may be maintained on the same record or records as the
assessment roll or may be maintained on a separate record properly indexed to the assessment
roll.
(b) "Tax roll" includes tax books, tax lists, and other similar materials.
Section 21. 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
;
(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
] 
17D-4-304
;
(viii) if a county's tax notice includes an assessment area charge, a statement that, due
to potentially ongoing assessment area 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).
Section 22. Section 
63H-1-102
 is amended to read:
63H-1-102.
Definitions.
As used in this chapter:
(1) "Authority" means the Military Installation Development Authority, created under
Section 
63H-1-201
.
(2) "Base taxable value" means:
(a) for military land or other land that was exempt from a property tax at the time that a
project area was created that included the military land or other land, a taxable value of zero; or
(b) for private property that is included in a project area, the taxable value of the
property within any portion of the project area, as designated by board resolution, from which
the property tax allocation will be collected, as shown upon the assessment roll last equalized:
(i) before the year in which the authority creates the project area; or
(ii) before the year in which the project area plan is amended, for property added to a
project area by an amendment to a project area plan.
(3) "Board" means the governing body of the authority created under Section
63H-1-301
.
(4) (a) "Dedicated tax collections" means the property tax that remains after the
authority is paid the property tax allocation the authority is entitled to receive under Subsection
63H-1-501
(1), for a property tax levied by:
(i) a county, including a district the county has established under Subsection 
17-34-3
(2)
to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
Areas; or
(ii) an included municipality.
(b) "Dedicated tax collections" does not include a county additional property tax or
multicounty assessing and collecting levy imposed in accordance with Section 
59-2-1602
.
(5) (a) "Development" means an activity occurring:
(i) on land within a project area that is owned or operated by the military, the authority,
another public entity, or a private entity; or
(ii) on military land associated with a project area.
(b) "Development" includes the demolition, construction, reconstruction, modification,
expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
recreational amenity.
(6) "Development project" means a project to develop land within a project area.
(7) "Elected member" means a member of the authority board who:
(a) is a mayor or member of a legislative body appointed under Subsection
63H-1-302
(2)(b); or
(b) (i) is appointed to the authority board under Subsection 
63H-1-302
(2)(a) or (3); and
(ii) concurrently serves in an elected state, county, or municipal office.
(8) "Included municipality" means a municipality, some or all of which is included
within a project area.
(9) (a) "Military" means a branch of the armed forces of the United States, including
the Utah National Guard.
(b) "Military" includes, in relation to property, property that is occupied by the military
and is owned by the government of the United States or the state.
(10) "Military Installation Development Authority accommodations tax" or "MIDA
accommodations tax" means the tax imposed under Section 
63H-1-205
.
(11) "Military Installation Development Authority energy tax" or "MIDA energy tax"
means the tax levied under Section 
63H-1-204
.
(12) "Military land" means land or a facility, including leased land or a leased facility,
that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
jurisdiction of the United States Department of Defense, the United States Department of
Veterans Affairs, or the Utah National Guard.
(13) "Municipal energy tax" means a municipal energy sales and use tax under Title
10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
(14) "Municipal services revenue" means revenue that the authority:
(a) collects from the authority's:
(i) levy of a municipal energy tax;
(ii) levy of a MIDA energy tax;
(iii) levy of a telecommunications tax;
(iv) imposition of a transient room tax; and
(v) imposition of a resort communities tax;
(b) receives under Subsection 
59-12-205
(2)(b)(ii); and
(c) receives as dedicated tax collections.
(15) "Municipal tax" means a municipal energy tax, MIDA energy tax, MIDA
accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
(16) "Project area" means the land, including military land, whether consisting of a
single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
project area plan, where the development project set forth in the project area plan or draft
project area plan takes place or is proposed to take place.
(17) "Project area budget" means a multiyear projection of annual or cumulative
revenues and expenses and other fiscal matters pertaining to a project area that includes:
(a) the base taxable value of property in the project area;
(b) the projected property tax allocation expected to be generated within the project
area;
(c) the amount of the property tax allocation expected to be shared with other taxing
entities;
(d) the amount of the property tax allocation expected to be used to implement the
project area plan, including the estimated amount of the property tax allocation to be used for
land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
incentives to private and public entities;
(e) the property tax allocation expected to be used to cover the cost of administering
the project area plan;
(f) if the property tax allocation is to be collected at different times or from different
portions of the project area, or both:
(i) (A) the tax identification numbers of the parcels from which the property tax
allocation will be collected; or
(B) a legal description of the portion of the project area from which the property tax
allocation will be collected; and
(ii) an estimate of when other portions of the project area will become subject to
collection of the property tax allocation; and
(g) for property that the authority owns or leases and expects to sell or sublease, the
expected total cost of the property to the authority and the expected selling price or lease
payments.
(18) "Project area plan" means a written plan that, after the plan's effective date, guides
and controls the development within a project area.
(19) (a) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4,
Privilege Tax, except as described in Subsection (19)(b), and each levy on an ad valorem basis
on tangible or intangible personal or real property.
(b) "Property tax" does not include a privilege tax on the taxable value:
(i) attributable to a portion of a facility leased to the military for a calendar year when:
(A) a lessee of military land has constructed a facility on the military land that is part of
a project area;
(B) the lessee leases space in the facility to the military for the entire calendar year; and
(C) the lease rate paid by the military for the space is $1 or less for the entire calendar
year, not including any common charges that are reimbursements for actual expenses; or
(ii) of the following property owned by the authority, regardless of whether the
authority enters into a long-term operating agreement with a privately owned entity under
which the privately owned entity agrees to operate the property:
(A) a hotel;
(B) a hotel condominium unit in a condominium project, as defined in Section 
57-8-3
;
and
(C) a commercial condominium unit in a condominium project, as defined in Section
57-8-3
.
(20) "Property tax allocation" means the difference between:
(a) the amount of property tax revenues generated each tax year by all taxing entities
from the area within a project area designated in the project area plan as the area from which
the property tax allocation is to be collected, using the current assessed value of the property;
and
(b) the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
(21) "Public entity" means:
(a) the state, including each department or agency of the state; or
(b) a political subdivision of the state, including a county, city, town, school district,
local district, special service district, or interlocal cooperation entity.
(22) (a) "Publicly owned infrastructure and improvements" means infrastructure,
improvements, facilities, or buildings that benefit the public, the authority, the military, or
military-related entities and are:
(i) publicly owned by the military, the authority, a public infrastructure district under
[
Title 17B, Chapter 2a, Part 12
] 
Title 17D, Chapter 4
, Public Infrastructure District Act, or
another public entity;
(ii) owned by a utility; or
(iii) publicly maintained or operated by the military, the authority, or another public
entity.
(b) "Publicly owned infrastructure and improvements" includes:
(i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications;
(ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, public transportation facilities, and parks, trails, and other recreational facilities;
(iii) snowmaking equipment and related improvements that can also be used for water
storage or fire suppression purposes; and
(iv) a building and related improvements for occupancy by the public, the authority, the
military, or military-related entities.
(23) "Remaining municipal services revenue" means municipal services revenue that
the authority has not:
(a) spent during the authority's fiscal year for municipal services as provided in
Subsection 
63H-1-503
(1); or
(b) redirected to use in accordance with Subsection 
63H-1-502
(3).
(24) "Resort communities tax" means a sales and use tax imposed under Section
59-12-401
.
(25) "Taxable value" means the value of property as shown on the last equalized
assessment roll.
(26) "Taxing entity":
(a) means a public entity that levies a tax on property within a project area; and
(b) does not include a public infrastructure district that the authority creates under
[
Title 17B, Chapter 2a, Part 12
] 
Title 17D, Chapter 4
, Public Infrastructure District Act.
(27) "Telecommunications tax" means a telecommunications license tax under Title
10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
(28) "Transient room tax" means a tax under Section 
59-12-352
.