Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 13 First Substitute (2024GS)

Sponsor

Rep. Dunnigan, J.

Final action

Governor Signed 3/19/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• authorizes the creation of a type of special district for the purpose of financing infrastructure;
• provides a process for the creation of an infrastructure financing district;
• provides for the powers and governance of an infrastructure financing district;
• authorizes an infrastructure financing district to impose an assessment on property within the district and to issue assessment bonds to finance infrastructure within the district;
• provides for the district to have bonding authority, with limitations;
• authorizes the district to levy a property tax;
• requires a district to provide proof to a county or municipality that an assessment bond has been paid in full on owner-occupied residential property before the county or municipality may issue a certificate of occupancy;
• provides for the annexation of an area to an infrastructure financing district, the withdrawal of an area from a district, and for dissolution of a district;
• authorizes sponsors of a petition to create an infrastructure financing district to create a governing document with provisions that govern the district, including providing for board membership and the transition from appointed board positions to elected board positions; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

INFRASTRUCTURE FINANCING DISTRICTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: 
____________
LONG TITLE
Committee Note:
The Political Subdivisions Interim Committee recommended this bill.
Legislative Vote: 13 voting for 2 voting against 1 absent
General Description:
This bill enacts and modifies provisions related to infrastructure financing districts.
Highlighted Provisions:
This bill:
▸ authorizes the creation of a type of special district for the purpose of financing
infrastructure;
▸ provides a process for the creation of an infrastructure financing district;
▸ provides for the powers and governance of an infrastructure financing district;
▸ authorizes an infrastructure financing district to impose an assessment on property
within the district and to issue assessment bonds to finance infrastructure within the
district;
▸ provides for the district to have bonding authority, with limitations;
▸ authorizes the district to levy a property tax;
▸ requires a district to provide proof to a county or municipality that an assessment
bond has been paid in full on owner-occupied residential property before the county
or municipality may issue a certificate of occupancy;
▸ provides for the annexation of an area to an infrastructure financing district, the
withdrawal of an area from a district, and for dissolution of a district;
▸ authorizes sponsors of a petition to create an infrastructure financing district to
create a governing document with provisions that govern the district, including
providing for board membership and the transition from appointed board positions
to elected board positions; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-9a-509
, as last amended by Laws of Utah 2023, Chapter 478
11-42-102
, as last amended by Laws of Utah 2023, Chapter 16
11-42-106
, as last amended by Laws of Utah 2021, Chapters 314, 415
11-42-201
, as last amended by Laws of Utah 2021, Chapter 314
11-42-202
, as last amended by Laws of Utah 2023, Chapter 435
17-27a-508
, as last amended by Laws of Utah 2023, Chapter 478
17B-1-102
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-103
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-105
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-201
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-202
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-203
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-204
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-205
, as last amended by Laws of Utah 2023, Chapters 15, 116
17B-1-208
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-209
, as last amended by Laws of Utah 2023, Chapters 15, 116
17B-1-210
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-211
, as last amended by Laws of Utah 2023, Chapters 15, 435
17B-1-213
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-214
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-215
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-216
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-302
, as last amended by Laws of Utah 2023, Chapters 15, 100
17B-1-303
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-306.5
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-403
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-404
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-405
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-414
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-504
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-506
, as last amended by Laws of Utah 2023, Chapters 15, 116
17B-1-511
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1001
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1002
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1302
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1303
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1310
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-1402
, as last amended by Laws of Utah 2023, Chapter 15
17B-2a-404
, as last amended by Laws of Utah 2018, Chapter 112
17B-2a-405
, as last amended by Laws of Utah 2017, Chapter 112
17B-2a-407
, as enacted by Laws of Utah 2023, Chapter 15 and further amended by
Revisor Instructions, Laws of Utah 2023, Chapter 16
17B-2a-604
, as last amended by Laws of Utah 2018, Chapter 112
17B-2a-704
, as last amended by Laws of Utah 2019, Chapter 40
17B-2a-905
, as last amended by Laws of Utah 2019, Chapter 108
20A-1-512
, as last amended by Laws of Utah 2023, Chapters 15, 435
52-4-207
, as last amended by Laws of Utah 2023, Chapter 100
ENACTS:
17B-1-405.5
, Utah Code Annotated 1953
17B-2a-1301
, Utah Code Annotated 1953
17B-2a-1302
, Utah Code Annotated 1953
17B-2a-1303
, Utah Code Annotated 1953
17B-2a-1304
, Utah Code Annotated 1953
17B-2a-1305
, Utah Code Annotated 1953
17B-2a-1306
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-9a-509
 is amended to read:
10-9a-509.
Applicant's entitlement to land use application approval --
Municipality's requirements and limitations -- Vesting upon submission of development
plan and schedule.
(1) (a) (i) An applicant who has submitted a complete land use application as described
in Subsection (1)(c), including the payment of all application fees, is entitled to substantive
review of the application under the land use regulations:
(A) in effect on the date that the application is complete; and
(B) applicable to the application or to the information shown on the application.
(ii) An applicant is entitled to approval of a land use application if the application
conforms to the requirements of the applicable land use regulations, land use decisions, and
development standards in effect when the applicant submits a complete application and pays
application fees, unless:
(A) the land use authority, on the record, formally finds that a compelling,
countervailing public interest would be jeopardized by approving the application and specifies
the compelling, countervailing public interest in writing; or
(B) in the manner provided by local ordinance and before the applicant submits the
application, the municipality formally initiates proceedings to amend the municipality's land
use regulations in a manner that would prohibit approval of the application as submitted.
(b) The municipality shall process an application without regard to proceedings the
municipality initiated to amend the municipality's ordinances as described in Subsection
(1)(a)(ii)(B) if:
(i) 180 days have passed since the municipality initiated the proceedings; and
(ii) (A) the proceedings have not resulted in an enactment that prohibits approval of the
application as submitted; or
(B) during the 12 months prior to the municipality processing the application, or
multiple applications of the same type, are impaired or prohibited under the terms of a
temporary land use regulation adopted under Section 
10-9a-504
.
(c) A land use application is considered submitted and complete when the applicant
provides the application in a form that complies with the requirements of applicable ordinances
and pays all applicable fees.
(d) A subsequent incorporation of a municipality or a petition that proposes the
incorporation of a municipality does not affect a land use application approved by a county in
accordance with Section 
17-27a-508
.
(e) The continuing validity of an approval of a land use application is conditioned upon
the applicant proceeding after approval to implement the approval with reasonable diligence.
(f) A municipality may not impose on an applicant who has submitted a complete
application a requirement that is not expressed in:
(i) this chapter;
(ii) a municipal ordinance in effect on the date that the applicant submits a complete
application, subject to Subsection 
10-9a-509
(1)(a)(ii); or
(iii) a municipal specification for public improvements applicable to a subdivision or
development that is in effect on the date that the applicant submits an application.
(g) A municipality may not impose on a holder of an issued land use permit or a final,
unexpired subdivision plat a requirement that is not expressed:
(i) in a land use permit;
(ii) on the subdivision plat;
(iii) in a document on which the land use permit or subdivision plat is based;
(iv) in the written record evidencing approval of the land use permit or subdivision
plat;
(v) in this chapter;
(vi) in a municipal ordinance; or
(vii) in a municipal specification for residential roadways in effect at the time a
residential subdivision was approved.
(h) Except as provided in Subsection (1)(i) 
or (j)
, a municipality may not withhold
issuance of a certificate of occupancy or acceptance of subdivision improvements because of an
applicant's failure to comply with a requirement that is not expressed:
(i) in the building permit or subdivision plat, documents on which the building permit
or subdivision plat is based, or the written record evidencing approval of the land use permit or
subdivision plat; or
(ii) in this chapter or the municipality's ordinances.
(i) A municipality may not unreasonably withhold issuance of a certificate of
occupancy where an applicant has met all requirements essential for the public health, public
safety, and general welfare of the occupants, in accordance with this chapter, unless:
(i) the applicant and the municipality have agreed in a written document to the
withholding of a certificate of occupancy; or
(ii) the applicant has not provided a financial assurance for required and uncompleted
public landscaping improvements or infrastructure improvements in accordance with an
applicable ordinance that the legislative body adopts under this chapter.
(j) A municipality may not issue a certificate of occupancy for an owner-occupied
residential unit that is within the boundary of an infrastructure financing district, as defined in
Section 
17B-1-102
, until the infrastructure financing district provides adequate proof to the
municipality that any lien on the unit arising from the infrastructure financing district's
assessment against the unit under Title 11, Chapter 42, Assessment Area Act, has been released
after payment in full of the infrastructure financing district's assessment against that unit.
(2) A municipality is bound by the terms and standards of applicable land use
regulations and shall comply with mandatory provisions of those regulations.
(3) A municipality may not, as a condition of land use application approval, require a
person filing a land use application to obtain documentation regarding a school district's
willingness, capacity, or ability to serve the development proposed in the land use application.
(4) Upon a specified public agency's submission of a development plan and schedule as
required in Subsection 
10-9a-305
(8) that complies with the requirements of that subsection, the
specified public agency vests in the municipality's applicable land use maps, zoning map,
hookup fees, impact fees, other applicable development fees, and land use regulations in effect
on the date of submission.
(5) (a) If sponsors of a referendum timely challenge a project in accordance with
Subsection 
20A-7-601
(6), the project's affected owner may rescind the project's land use
approval by delivering a written notice:
(i) to the local clerk as defined in Section 
20A-7-101
; and
(ii) no later than seven days after the day on which a petition for a referendum is
determined sufficient under Subsection 
20A-7-607
(5).
(b) Upon delivery of a written notice described in Subsection (5)(a) the following are
rescinded and are of no further force or effect:
(i) the relevant land use approval; and
(ii) any land use regulation enacted specifically in relation to the land use approval.
Section 2. 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) "Development authority" means:
(a) the Utah Inland Port Authority created in Section 
11-58-201
; or
(b) the military installation development authority created in Section 
63H-1-201
.
(19) "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.
(20) "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.
(21) "Equivalent residential unit" means a dwelling, unit, or development that is equal
to a single-family residence in terms of the nature of its use or impact on an improvement to be
provided in the assessment area.
(22) "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a special district, the board of trustees of the special 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
;
(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
.
(23) "Guaranty fund" means the fund established by a local entity under Section
11-42-701
.
(24) "Improved property" means property upon which a residential, commercial, or
other building has been built.
(25) "Improvement":
(a) (i) means a publicly owned infrastructure, facility, system, or environmental
remediation activity that:
(A) a local entity is authorized to provide 
or finance
;
(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 (25)(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 special district created to assess groundwater rights in accordance with
Section 
17B-1-202
, means a system or plan to regulate groundwater withdrawals within a
specific groundwater basin in accordance with Sections 
17B-1-202
 and 
73-5-15
.
(26) "Improvement revenues":
(a) means charges, fees, impact fees, or other revenues that a local entity receives from
improvements; and
(b) does not include revenue from assessments.
(27) "Incidental refunding costs" means any costs of issuing refunding assessment
bonds and calling, retiring, or paying prior bonds, including:
(a) legal and accounting fees;
(b) charges of financial advisors, escrow agents, certified public accountant verification
entities, and trustees;
(c) underwriting discount costs, printing costs, the costs of giving notice;
(d) any premium necessary in the calling or retiring of prior bonds;
(e) fees to be paid to the local entity to issue the refunding assessment bonds and to
refund the outstanding prior bonds;
(f) any other costs that the governing body determines are necessary and proper to incur
in connection with the issuance of refunding assessment bonds; and
(g) any interest on the prior bonds that is required to be paid in connection with the
issuance of the refunding assessment bonds.
(28) "Installment payment date" means the date on which an installment payment of an
assessment is payable.
(29) "Interim warrant" means a warrant issued by a local entity under Section
11-42-601
.
(30) "Jurisdictional boundaries" means:
(a) for a county, the boundaries of the unincorporated area of the county; and
(b) for each other local entity, the boundaries of the local entity.
(31) "Local entity" means:
(a) a county, city, town, special service district, or special 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 a development authority;
(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 district" means a special district under Title 17B, Limited Purpose Local
Government Entities - Special Districts
.
(51) "Special service district" means the same as that term is defined in Section
17D-1-102
.
(52) "Unassessed benefitted government property" means property that a local entity
may not assess in accordance with Section 
11-42-408
 but is benefitted by an improvement,
operation and maintenance, or economic promotion activities.
(53) "Unimproved property" means property upon which no residential, commercial, or
other building has been built.
(54) "Voluntary assessment area" means an assessment area that contains only property
whose owners have voluntarily consented to an assessment.
Section 3. 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) 
the designation resolution, assessment resolution, or amended resolution was
adopted by a development authority [
or
]
, an infrastructure financing district under Title 17B,
Chapter 2a, Part 13, Infrastructure Financing Districts, or
 a public infrastructure district created
by a development authority under 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 4. 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 
or
financing
 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 created under
Title 17D, Chapter 4, Public Infrastructure District Act, 
or within an infrastructure financing
district as defined in Section 
17B-1-102
,
 may not be coextensive or substantially coterminous
with the boundaries of the local entity.
(2) Before adopting a designation resolution or designation ordinance described in
Subsection (1)(a), the governing body of the local entity shall:
(a) give notice as provided in Section 
11-42-202
;
(b) receive and consider all protests filed under Section 
11-42-203
; and
(c) hold a public hearing as provided in Section 
11-42-204
.
Section 5. Section 
11-42-202
 is amended to read:
11-42-202.
Requirements applicable to a notice of a proposed assessment area
designation -- Notice.
(1) Each notice required under Subsection 
11-42-201
(2)(a) shall:
(a) state that the local entity proposes to:
(i) designate one or more areas within the local entity's jurisdictional boundaries as an
assessment area; 
and
(ii) 
(A)
 provide an improvement to property within the proposed assessment area[
;
]
and
[
(iii)
] finance some or all of the cost of improvements by an assessment on benefitted
property within the assessment area; 
or
(B) finance improvements to property within the proposed assessment area through an
assessment on benefitted property within the assessment area;
(b) describe the proposed assessment area by any reasonable method that allows an
owner of property in the proposed assessment area to determine that the owner's property is
within the proposed assessment area;
(c) describe, in a general and reasonably accurate way, the improvements to be
provided to the assessment area, including:
(i) the nature of the improvements; and
(ii) the location of the improvements, by reference to streets or portions or extensions
of streets or by any other means that the governing body chooses that reasonably describes the
general location of the improvements;
(d) state the estimated cost of the improvements as determined by a project engineer;
(e) for the notice mailed under Subsection (4), state the estimated total assessment
specific to the benefitted property for which the notice is mailed;
(f) state that the local entity proposes to levy an assessment on benefitted property
within the assessment area to pay some or all of the cost of the improvements according to the
estimated benefits to the property from the improvements;
(g) if applicable, state that an unassessed benefitted government property will receive
improvements for which the cost will be allocated proportionately to the remaining benefitted
properties within the proposed assessment area and that a description of each unassessed
benefitted government property is available for public review at the location or website
described in Subsection (6);
(h) state the assessment method by which the governing body proposes to calculate the
proposed assessment, including, if the local entity is a municipality or county, whether the
assessment will be collected:
(i) by directly billing a property owner; or
(ii) by inclusion on a property tax notice issued in accordance with Section 
59-2-1317
and in compliance with Section 
11-42-401
;
(i) state:
(i) the date described in Section 
11-42-203
 and the location at which protests against
designation of the proposed assessment area or of the proposed improvements are required to
be filed;
(ii) the method by which the governing body will determine the number of protests
required to defeat the designation of the proposed assessment area or acquisition or
construction of the proposed improvements; and
(iii) in large, boldface, and conspicuous type that a property owner must protest the
designation of the assessment area in writing if the owner objects to the area designation or
being assessed for the proposed improvements, operation and maintenance costs, or economic
promotion activities;
(j) state the date, time, and place of the public hearing required in Section 
11-42-204
;
(k) if the governing body elects to create and fund a reserve fund under Section
11-42-702
, include a description of:
(i) how the reserve fund will be funded and replenished; and
(ii) how remaining money in the reserve fund is to be disbursed upon full payment of
the bonds;
(l) if the governing body intends to designate a voluntary assessment area, include a
property owner consent form that:
(i) estimates the total assessment to be levied against the particular parcel of property;
(ii) describes any additional benefits that the governing body expects the assessed
property to receive from the improvements;
(iii) designates the date and time by which the fully executed consent form is required
to be submitted to the governing body; and
(iv) if the governing body intends to enforce an assessment lien on the property in
accordance with Subsection 
11-42-502.1
(2)(a)(ii)(C):
(A) appoints a trustee that satisfies the requirements described in Section 
57-1-21
;
(B) gives the trustee the power of sale;
(C) is binding on the property owner and all successors; and
(D) explains that if an assessment or an installment of an assessment is not paid when
due, the local entity may sell the property owner's property to satisfy the amount due plus
interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances;
(m) if the local entity intends to levy an assessment to pay operation and maintenance
costs or for economic promotion activities, include:
(i) a description of the operation and maintenance costs or economic promotion
activities to be paid by assessments and the initial estimated annual assessment to be levied;
(ii) a description of how the estimated assessment will be determined;
(iii) a description of how and when the governing body will adjust the assessment to
reflect the costs of:
(A) in accordance with Section 
11-42-406
, current economic promotion activities; or
(B) current operation and maintenance costs;
(iv) a description of the method of assessment if different from the method of
assessment to be used for financing any improvement; and
(v) a statement of the maximum number of years over which the assessment will be
levied for:
(A) operation and maintenance costs; or
(B) economic promotion activities;
(n) if the governing body intends to divide the proposed assessment area into
classifications under Subsection 
11-42-201
(1)(b), include a description of the proposed
classifications;
(o) if applicable, state the portion and value of the improvement that will be increased
in size or capacity to serve property outside of the assessment area and how the increases will
be financed; and
(p) state whether the improvements will be financed with a bond and, if so, the
currently estimated interest rate and term of financing, subject to Subsection (2), for which the
benefitted properties within the assessment area may be obligated.
(2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
subject to the market rate at the time of the issuance of the bond.
(3) A notice required under Subsection 
11-42-201
(2)(a) may contain other information
that the governing body considers to be appropriate, including:
(a) the amount or proportion of the cost of the improvement to be paid by the local
entity or from sources other than an assessment;
(b) the estimated total amount of each type of assessment for the various improvements
to be financed according to the method of assessment that the governing body chooses; and
(c) provisions for any improvements described in Subsection 
11-42-102
(25)(a)(ii).
(4) Each notice required under Subsection 
11-42-201
(2)(a) shall be published for the
governing body's jurisdiction, as a class B notice under Section 
63G-30-102
, for at least 20
days, but not more than 35 days, before the day of the hearing required in Section 
11-42-204
.
(5) (a) The local entity may record the version of the notice that is published or posted
in accordance with Subsection (4) with the office of the county recorder, by legal description
and tax identification number as identified in county records, against the property proposed to
be assessed.
(b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
after the day on which the local entity records the notice if the local entity has failed to adopt
the designation ordinance or resolution under Section 
11-42-201
 designating the assessment
area for which the notice was recorded.
(6) A local entity shall make available on the local entity's website, or, if no website is
available, at the local entity's place of business, the address and type of use of each unassessed
benefitted government property described in Subsection (1)(g).
(7) If a governing body fails to provide actual or constructive notice under this section,
the local entity may not assess a levy against a benefitted property omitted from the notice
unless:
(a) the property owner gives written consent;
(b) the property owner received notice under Subsection 
11-42-401
(2)(a)(iii) and did
not object to the levy of the assessment before the final hearing of the board of equalization; or
(c) the benefitted property is conveyed to a subsequent purchaser and, before the date
of conveyance, the requirements of Subsections 
11-42-206
(3)(a)(i) and (ii), or, if applicable,
Subsection 
11-42-207
(1)(d)(i) are met.
Section 6. Section 
17-27a-508
 is amended to read:
17-27a-508.
Applicant's entitlement to land use application approval --
Application relating to land in a high priority transportation corridor -- County's
requirements and limitations -- Vesting upon submission of development plan and
schedule.
(1) (a) (i) An applicant who has submitted a complete land use application, including
the payment of all application fees, is entitled to substantive review of the application under the
land use regulations:
(A) in effect on the date that the application is complete; and
(B) applicable to the application or to the information shown on the submitted
application.
(ii) An applicant is entitled to approval of a land use application if the application
conforms to the requirements of the applicable land use regulations, land use decisions, and
development standards in effect when the applicant submits a complete application and pays all
application fees, unless:
(A) the land use authority, on the record, formally finds that a compelling,
countervailing public interest would be jeopardized by approving the application and specifies
the compelling, countervailing public interest in writing; or
(B) in the manner provided by local ordinance and before the applicant submits the
application, the county formally initiates proceedings to amend the county's land use
regulations in a manner that would prohibit approval of the application as submitted.
(b) The county shall process an application without regard to proceedings the county
initiated to amend the county's ordinances as described in Subsection (1)(a)(ii)(B) if:
(i) 180 days have passed since the county initiated the proceedings; and
(ii) (A) the proceedings have not resulted in an enactment that prohibits approval of the
application as submitted; or
(B) during the 12 months prior to the county processing the application or multiple
applications of the same type, the application is impaired or prohibited under the terms of a
temporary land use regulation adopted under Section 
17-27a-504
.
(c) A land use application is considered submitted and complete when the applicant
provides the application in a form that complies with the requirements of applicable ordinances
and pays all applicable fees.
(d) The continuing validity of an approval of a land use application is conditioned upon
the applicant proceeding after approval to implement the approval with reasonable diligence.
(e) A county may not impose on an applicant who has submitted a complete
application a requirement that is not expressed in:
(i) this chapter;
(ii) a county ordinance in effect on the date that the applicant submits a complete
application, subject to Subsection 
17-27a-508
(1)(a)(ii); or
(iii) a county specification for public improvements applicable to a subdivision or
development that is in effect on the date that the applicant submits an application.
(f) A county may not impose on a holder of an issued land use permit or a final,
unexpired subdivision plat a requirement that is not expressed:
(i) in a land use permit;
(ii) on the subdivision plat;
(iii) in a document on which the land use permit or subdivision plat is based;
(iv) in the written record evidencing approval of the land use permit or subdivision
plat;
(v) in this chapter;
(vi) in a county ordinance; or
(vii) in a county specification for residential roadways in effect at the time a residential
subdivision was approved.
(g) Except as provided in Subsection (1)(h) 
or (i)
, a county may not withhold issuance
of a certificate of occupancy or acceptance of subdivision improvements because of an
applicant's failure to comply with a requirement that is not expressed:
(i) in the building permit or subdivision plat, documents on which the building permit
or subdivision plat is based, or the written record evidencing approval of the building permit or
subdivision plat; or
(ii) in this chapter or the county's ordinances.
(h) A county may not unreasonably withhold issuance of a certificate of occupancy
where an applicant has met all requirements essential for the public health, public safety, and
general welfare of the occupants, in accordance with this chapter, unless:
(i) the applicant and the county have agreed in a written document to the withholding
of a certificate of occupancy; or
(ii) the applicant has not provided a financial assurance for required and uncompleted
public landscaping improvements or infrastructure improvements in accordance with an
applicable ordinance that the legislative body adopts under this chapter.
(i) A county may not issue a certificate of occupancy for an owner-occupied residential
unit that is within the boundary of an infrastructure financing district, as defined in Section
17B-1-102
, until the infrastructure financing district provides adequate proof to the county that
any lien on the unit arising from the infrastructure financing district's assessment against the
unit under Title 11, Chapter 42, Assessment Area Act, has been released after payment in full
of the infrastructure financing district's assessment against that unit.
(2) A county is bound by the terms and standards of applicable land use regulations and
shall comply with mandatory provisions of those regulations.
(3) A county may not, as a condition of land use application approval, require a person
filing a land use application to obtain documentation regarding a school district's willingness,
capacity, or ability to serve the development proposed in the land use application.
(4) Upon a specified public agency's submission of a development plan and schedule as
required in Subsection 
17-27a-305
(8) that complies with the requirements of that subsection,
the specified public agency vests in the county's applicable land use maps, zoning map, hookup
fees, impact fees, other applicable development fees, and land use regulations in effect on the
date of submission.
(5) (a) If sponsors of a referendum timely challenge a project in accordance with
Subsection 
20A-7-601
(6), the project's affected owner may rescind the project's land use
approval by delivering a written notice:
(i) to the local clerk as defined in Section 
20A-7-101
; and
(ii) no later than seven days after the day on which a petition for a referendum is
determined sufficient under Subsection 
20A-7-607
(5).
(b) Upon delivery of a written notice described in Subsection(5)(a) the following are
rescinded and are of no further force or effect:
(i) the relevant land use approval; and
(ii) any land use regulation enacted specifically in relation to the land use approval.
Section 7. 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 special district":
(a) means a special district that is not a specialized special district; and
(b) includes an entity that was, under the law in effect before April 30, 2007, created
and operated as a special 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 special 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 special 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 special 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 special 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 special district may provide a service requested by a
service applicant; and
(c) that is offered to a special district to induce the special 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 special district; and
(b) will not fail in any material respect within an agreed warranty period.
(11) "Improvement district" means a special 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) "Infrastructure financing district" means a special district that operates under and
is subject to the provisions of this chapter and Chapter 2a, Part 13, Infrastructure Financing
Districts.
[
(12)
] 
(13)
 "Irrigation district" means a special 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)
] 
(14)
 "Metropolitan water district" means a special 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.
[
(14)
] 
(15)
 "Mosquito abatement district" means a special 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.
[
(15)
] 
(16)
 "Municipal" means of or relating to a municipality.
[
(16)
] 
(17)
 "Municipality" means a city, town, or metro township.
[
(17)
] 
(18)
 "Municipal services district" means a special district that operates under and
is subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District
Act.
[
(18)
] 
(19)
 "Person" means an individual, corporation, partnership, organization,
association, trust, governmental agency, or other legal entity.
[
(19)
] 
(20)
 "Political subdivision" means a county, city, town, metro township, special
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.
[
(20)
] 
(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.
[
(21)
] 
(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.
[
(22)
] 
(23)
 "Public transit district" means a special 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.
[
(23)
] 
(24)
 "Revenue bond":
(a) means a bond payable from designated taxes or other revenues other than the
special 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.
[
(24)
] 
(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.
[
(25)
] 
(26)
 "Service applicant" means a person who requests that a special district
provide a service that the special district is authorized to provide.
[
(26)
] 
(27)
 "Service area" means a special 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.
[
(27)
] 
(28)
 "Short-term bond" means a bond that is required to be repaid during the
fiscal year in which the bond is issued.
[
(28)
] 
(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.
[
(29)
] 
(30)
 "Special assessment bond" means a bond payable from special assessments.
[
(30)
] 
(31)
 "Special 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
described 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 13, Infrastructure Financing Districts.
[
(31)
] 
(32)
 "Specialized special district" means a special 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
] 
or an infrastructure financing district
.
[
(32)
] 
(33)
 "Taxable value" means the taxable value of property as computed from the
most recent equalized assessment roll for county purposes.
[
(33)
] 
(34)
 "Tax and revenue anticipation bond" means a bond:
(a) issued in anticipation of the collection of taxes or other revenues or a combination
of taxes and other revenues; and
(b) that matures within the same fiscal year as the fiscal year in which the bond is
issued.
[
(34)
] 
(35)
 "Unincorporated" means not included within a municipality.
[
(35)
] 
(36)
 "Water conservancy district" means a special district that operates under
and is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy
District Act, including an entity that was created and operated as a water conservancy district
under the law in effect before April 30, 2007.
[
(36)
] 
(37)
 "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain,
tunnel, power plant, and any facility, improvement, or property necessary or convenient for
supplying or treating water for any beneficial use, and for otherwise accomplishing the
purposes of a special district.
Section 8. Section 
17B-1-103
 is amended to read:
17B-1-103.
Special district status and powers -- Registration as a limited purpose
entity.
(1) A special district:
(a) is:
(i) a body corporate and politic with perpetual succession;
(ii) a quasi-municipal corporation; [
and
]
(iii) a political subdivision of the state; and
(iv) separate and distinct from and independent of any other political subdivision of the
state; and
(b) may sue and be sued.
(2) A special district may:
(a) acquire, by any lawful means, or lease any real property, personal property, or a
groundwater right necessary or convenient to the full exercise of the district's powers;
(b) acquire, by any lawful means, any interest in real property, personal property, or a
groundwater right necessary or convenient to the full exercise of the district's powers;
(c) transfer an interest in or dispose of any property or interest described in Subsections
(2)(a) and (b);
(d) acquire or construct works, facilities, and improvements necessary or convenient to
the full exercise of the district's powers, and operate, control, maintain, and use those works,
facilities, and improvements;
(e) borrow money and incur indebtedness for any lawful district purpose;
(f) issue bonds, including refunding bonds:
(i) for any lawful district purpose; and
(ii) as provided in and subject to Part 11, Special District Bonds;
(g) levy and collect property taxes:
(i) for any lawful district purpose or expenditure, including to cover a deficit resulting
from tax delinquencies in a preceding year; and
(ii) as provided in and subject to Part 10, Special District Property Tax Levy;
(h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent
domain property necessary to the exercise of the district's powers;
(i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
(j) (i) impose fees or other charges for commodities, services, or facilities provided by
the district, to pay some or all of the district's costs of providing the commodities, services, and
facilities, including the costs of:
(A) maintaining and operating the district;
(B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
(C) issuing bonds and paying debt service on district bonds; and
(D) providing a reserve established by the board of trustees; and
(ii) take action the board of trustees considers appropriate and adopt regulations to
assure the collection of all fees and charges that the district imposes;
(k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's
property to district facilities in order for the district to provide service to the property;
(l) enter into a contract that the special district board of trustees considers necessary,
convenient, or desirable to carry out the district's purposes, including a contract:
(i) with the United States or any department or agency of the United States;
(ii) to indemnify and save harmless; or
(iii) to do any act to exercise district powers;
(m) purchase supplies, equipment, and materials;
(n) encumber district property upon terms and conditions that the board of trustees
considers appropriate;
(o) exercise other powers and perform other functions that are provided by law;
(p) construct and maintain works and establish and maintain facilities, including works
or facilities:
(i) across or along any public street or highway, subject to Subsection (3) and if the
district:
(A) promptly restores the street or highway, as much as practicable, to its former state
of usefulness; and
(B) does not use the street or highway in a manner that completely or unnecessarily
impairs the usefulness of it;
(ii) in, upon, or over any vacant public lands that are or become the property of the
state, including school and institutional trust lands, as defined in Section 
53C-1-103
, if the
director of the School and Institutional Trust Lands Administration, acting under Sections
53C-1-102
 and 
53C-1-303
, consents; or
(iii) across any stream of water or watercourse, subject to Section 
73-3-29
;
(q) perform any act or exercise any power reasonably necessary for the efficient
operation of the special district in carrying out its purposes;
(r) (i) except for a special district described in Subsection (2)(r)(ii), designate an
assessment area and levy an assessment on land within the assessment area, as provided in
Title 11, Chapter 42, Assessment Area Act; or
(ii) for a special district created to assess a groundwater right in a critical management
area described in Subsection 
17B-1-202
(1), designate an assessment area and levy an
assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
to facilitate a groundwater management plan;
(s) contract with another political subdivision of the state to allow the other political
subdivision to use the district's surplus water or capacity or have an ownership interest in the
district's works or facilities, upon the terms and for the consideration, whether monetary or
nonmonetary consideration or no consideration, that the district's board of trustees considers to
be in the best interests of the district and the public;
(t) upon the terms and for the consideration, whether monetary or nonmonetary
consideration or no consideration, that the district's board of trustees considers to be in the best
interests of the district and the public, agree:
(i) (A) with another political subdivision of the state; or
(B) with a public or private owner of property on which the district has a right-of-way
or adjacent to which the district owns fee title to property; and
(ii) to allow the use of property:
(A) owned by the district; or
(B) on which the district has a right-of-way; and
(u) if the special district receives, as determined by the special district board of
trustees, adequate monetary or nonmonetary consideration in return:
(i) provide services or nonmonetary assistance to a nonprofit entity;
(ii) waive fees required to be paid by a nonprofit entity; or
(iii) provide monetary assistance to a nonprofit entity, whether from the special
district's own funds or from funds the special district receives from the state or any other
source.
(3) With respect to a special district's use of a street or highway, as provided in
Subsection (2)(p)(i):
(a) the district shall comply with the reasonable rules and regulations of the
governmental entity, whether state, county, or municipal, with jurisdiction over the street or
highway, concerning:
(i) an excavation and the refilling of an excavation;
(ii) the relaying of pavement; and
(iii) the protection of the public during a construction period; and
(b) the governmental entity, whether state, county, or municipal, with jurisdiction over
the street or highway:
(i) may not require the district to pay a license or permit fee or file a bond; and
(ii) may require the district to pay a reasonable inspection fee.
(4) (a) A special district may:
(i) acquire, lease, or construct and operate electrical generation, transmission, and
distribution facilities, if:
(A) the purpose of the facilities is to harness energy that results inherently from the
district's operation of a project or facilities that the district is authorized to operate or from the
district providing a service that the district is authorized to provide;
(B) the generation of electricity from the facilities is incidental to the primary
operations of the district; and
(C) operation of the facilities will not hinder or interfere with the primary operations of
the district;
(ii) (A) use electricity generated by the facilities; or
(B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
utility or municipality with an existing system for distributing electricity.
(b) A district may not act as a retail distributor or seller of electricity.
(c) Revenue that a district receives from the sale of electricity from electrical
generation facilities it owns or operates under this section may be used for any lawful district
purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
constructing the facilities.
(5) A special district may adopt and, after adoption, alter a corporate seal.
(6) (a) Each special district shall register and maintain the special district's registration
as a limited purpose entity, in accordance with Section 
67-1a-15
.
(b) A special district that fails to comply with Subsection (6)(a) or Section 
67-1a-15
 is
subject to enforcement by the state auditor, in accordance with Section 
67-3-1
.
(7) (a) As used in this Subsection (7), "knife" means a cutting instrument that includes
a sharpened or pointed blade.
(b) The authority to regulate a knife is reserved to the state except where the
Legislature specifically delegates responsibility to a special district.
(c) Unless specifically authorized by the Legislature by statute, a special district may
not adopt or enforce a regulation or rule pertaining to a knife.
Section 9. Section 
17B-1-105
 is amended to read:
17B-1-105.
Name of special district -- Name change.
(1) (a) The name of each special district created on or after May 1, 2000 shall comply
with Subsection 
17-50-103
(2)(a).
(b) The board of each special district affected by Subsection 
17-50-103
(2)(b) shall
ensure that after January 1, 2005 the special district name complies with the requirements of
Subsection 
17-50-103
(2)(b).
(2) The name of a special district created after April 30, 2007 may not include the
name of a county or municipality.
(3) The name of a special district may include words descriptive of the type of service
that the district provides.
(4) The name of an infrastructure financing district shall comply with Subsection
17B-1-208
(1)(b)(ii).
[
(4)
] 
(5)
 (a) A special district board may change the name of that special district as
provided in this Subsection [
(4)
] 
(5)
.
(b) To initiate a name change, the special district board shall:
(i) hold a public hearing on the proposed name change;
(ii) adopt a resolution approving the name change; and
(iii) file with the lieutenant governor a notice of an impending name change, as defined
in Section 
67-1a-6.7
, that meets the requirements of Subsection 
67-1a-6.7
(3).
(c) Upon the lieutenant governor's issuance of a certificate of name change under
Section 
67-1a-6.7
, the special district board shall:
(i) if the special district is located within the boundary of a single county, submit to the
recorder of that county:
(A) the original:
(I) notice of an impending name change; and
(II) certificate of name change; and
(B) a certified copy of the resolution approving the name change; or
(ii) if the special district is located within the boundaries of more than a single county:
(A) submit to the recorder of one of those counties:
(I) the original of the documents listed in Subsections [
(4)(c)(i)(A)(I)
] 
(5)(c)(i)(A)(I)
and (II); and
(II) a certified copy of the resolution approving the name change; and
(B) submit to the recorder of each other county:
(I) a certified copy of the documents listed in Subsections [
(4)(c)(i)(A)(I)
]
(5)(c)(i)(A)(I)
 and (II); and
(II) a certified copy of the resolution approving the name change.
(d) (i) A name change under this Subsection [
(4)
] 
(5)
 becomes effective upon the
lieutenant governor's issuance of a certificate of name change under Section 
67-1a-6.7
.
(ii) Notwithstanding Subsection [
(4)(d)(i)
] 
(5)(d)(i)
, the special district may not operate
under the new name until the documents listed in Subsection [
(4)(c)
] 
(5)(c)
 are recorded in the
office of the recorder of each county in which the special district is located.
Section 10. Section 
17B-1-201
 is amended to read:
17B-1-201.
Definitions.
As used in this part:
(1) "Applicable area" means:
(a) for a county, the unincorporated area of the county that is included within the
proposed special district; or
(b) for a municipality, the area of the municipality that is included within the proposed
special district.
(2) "Governing body" means:
(a) for a county or municipality, the legislative body of the county or municipality; and
(b) for a special district, the board of trustees of the special district.
(3) "Groundwater right owner petition" means a petition under Subsection
17B-1-203
(1)(c).
(4) "Groundwater right owner request" means a request under Section 
17B-1-204
 that
is signed by owners of water rights as provided in Subsection 
17B-1-204
(2)(b)(ii).
(5) "Initiating special district" means a special district that adopts a resolution
proposing the creation of a special district under Subsection [
17B-1-203
(1)(e)
]
17B-1-203
(1)(f)
.
(6) "Petition" means a petition under Subsection 
17B-1-203
(1)(a), (b), [
or
] (c)
, or (d)
.
(7) "Property owner petition" means a petition under Subsection 
17B-1-203
(1)(a).
(8) "Property owner request" means a request under Section 
17B-1-204
 that is signed
by owners of real property as provided in Subsection 
17B-1-204
(2)(b)(i).
(9) "Registered voter request" means a request under Section 
17B-1-204
 that is signed
by registered voters as provided in Subsection 
17B-1-204
(2)(b)(iii).
(10) "Registered voter petition" means a petition under Subsection 
17B-1-203
(1)(b).
(11) "Request" means a request as described in Section 
17B-1-204
.
(12) "Responsible body" means the governing body of:
(a) the municipality in which the proposed special district is located, if the petition or
resolution proposes the creation of a special district located entirely within a single
municipality;
(b) the county in which the proposed special district is located, if the petition or
resolution proposes the creation of a special district located entirely within a single county and
all or part of the proposed special district is located within:
(i) the unincorporated part of the county; or
(ii) more than one municipality within the county;
(c) if the petition or resolution proposes the creation of a special district located within
more than one county, the county whose boundaries include more of the area of the proposed
special district than is included within the boundaries of any other county; or
(d) the initiating special district, if a resolution proposing the creation of a special
district is adopted under Subsection [
17B-1-203
(1)(e)
] 
17B-1-203
(1)(f)
.
(13) "Responsible clerk" means the clerk of the county or the clerk or recorder of the
municipality whose legislative body is the responsible body.
Section 11. Section 
17B-1-202
 is amended to read:
17B-1-202.
Special district may be created -- Services that may be provided --
Limitations.
(1) (a) A special district may be created as provided in this part to provide within its
boundaries service consisting of:
(i) the operation of an airport;
(ii) the operation of a cemetery;
(iii) fire protection, paramedic, and emergency services, including consolidated 911
and emergency dispatch services;
(iv) garbage collection and disposal;
(v) health care, including health department or hospital service;
(vi) the operation of a library;
(vii) abatement or control of mosquitos and other insects;
(viii) the operation of parks or recreation facilities or services;
(ix) the operation of a sewage system;
(x) the construction and maintenance of a right-of-way, including:
(A) a curb;
(B) a gutter;
(C) a sidewalk;
(D) a street;
(E) a road;
(F) a water line;
(G) a sewage line;
(H) a storm drain;
(I) an electricity line;
(J) a communications line;
(K) a natural gas line; or
(L) street lighting;
(xi) transportation, including public transit and providing streets and roads;
(xii) the operation of a system, or one or more components of a system, for the
collection, storage, retention, control, conservation, treatment, supplying, distribution, or
reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
the system is operated on a wholesale or retail level or both;
(xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
groundwater right for the development and execution of a groundwater management plan in
cooperation with and approved by the state engineer in accordance with Section 
73-5-15
;
(xiv) law enforcement service;
(xv) subject to Subsection (1)(b), the underground installation of an electric utility line
or the conversion to underground of an existing electric utility line;
(xvi) the control or abatement of earth movement or a landslide;
(xvii) the operation of animal control services and facilities; [
or
]
(xviii) an energy efficiency upgrade, a renewable energy system, or electric vehicle
charging infrastructure as defined in Section 
11-42a-102
, in accordance with Title 11, Chapter
42a, Commercial Property Assessed Clean Energy Act
; or
(xix) the financing of infrastructure, as provided in Chapter 2a, Part 13, Infrastructure
Financing Districts
.
(b) Each special district that provides the service of the underground installation of an
electric utility line or the conversion to underground of an existing electric utility line shall, in
installing or converting the line, provide advance notice to and coordinate with the utility that
owns the line.
(c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
the banking of groundwater rights by a special district in a critical management area as defined
in Section 
73-5-15
 following the adoption of a groundwater management plan by the state
engineer under Section 
73-5-15
.
(i) A special district may manage the groundwater rights it acquires under Subsection
17B-1-103
(2)(a) or (b) consistent with the provisions of a groundwater management plan
described in this Subsection (1)(c).
(ii) A groundwater right held by a special district to satisfy the provisions of a
groundwater management plan is not subject to the forfeiture provisions of Section 
73-1-4
.
(iii) (A) A special district may divest itself of a groundwater right subject to a
determination that the groundwater right is not required to facilitate the groundwater
management plan described in this Subsection (1)(c).
(B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
73-1-4
 beginning on the date of divestiture.
(iv) Upon a determination by the state engineer that an area is no longer a critical
management area as defined in Section 
73-5-15
, a groundwater right held by the special district
is subject to Section 
73-1-4
.
(v) A special district created in accordance with Subsection (1)(a)(xiii) to develop and
execute a groundwater management plan may hold or acquire a right to surface waters that are
naturally tributary to the groundwater basin subject to the groundwater management plan if the
surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
(2) As used in this section:
(a) "Operation" means all activities involved in providing the indicated service
including acquisition and ownership of property reasonably necessary to provide the indicated
service and acquisition, construction, and maintenance of facilities and equipment reasonably
necessary to provide the indicated service.
(b) "System" means the aggregate of interrelated components that combine together to
provide the indicated service including, for a sewage system, collection and treatment.
(3) (a) A special district may not be created to provide and may not after its creation
provide more than four of the services listed in Subsection (1).
(b) Subsection (3)(a) may not be construed to prohibit a special district from providing
more than four services if, before April 30, 2007, the special district was authorized to provide
those services.
(4) (a) Except as provided in Subsection (4)(b), a special district may not be created to
provide and may not after its creation provide to an area the same service that may already be
provided to that area by another political subdivision, unless the other political subdivision
gives its written consent.
(b) For purposes of Subsection (4)(a), a special district does not provide the same
service as another political subdivision if it operates a component of a system that is different
from a component operated by another political subdivision but within the same:
(i) sewage system; or
(ii) water system.
(5) (a) Except for a special district in the creation of which an election is not required
under Subsection 
17B-1-214
(3)(d), the area of a special district may include all or part of the
unincorporated area of one or more counties and all or part of one or more municipalities.
(b) The area of a special district need not be contiguous.
(6) For a special district created before May 5, 2008, the authority to provide fire
protection service also includes the authority to provide:
(a) paramedic service; and
(b) emergency service, including hazardous materials response service.
(7) A special district created before May 11, 2010, authorized to provide the
construction and maintenance of curb, gutter, or sidewalk may provide a service described in
Subsection (1)(a)(x) on or after May 11, 2010.
(8) A special district created before May 10, 2011, authorized to provide culinary,
irrigation, sewage, or storm water services may provide a service described in Subsection
(1)(a)(xii) on or after May 10, 2011.
(9) A special district may not be created under this chapter for two years after the date
on which a special district is dissolved as provided in Section 
17B-1-217
 if the special district
proposed for creation:
(a) provides the same or a substantially similar service as the dissolved special district;
and
(b) is located in substantially the same area as the dissolved special district.
(10) The inclusion of an area within an infrastructure financing district does not affect
whether the area may be included within another special district.
Section 12. Section 
17B-1-203
 is amended to read:
17B-1-203.
Process to initiate the creation of a special district -- Petition or
resolution.
(1) The process to create a special district may be initiated by:
(a) unless the proposed special district is a special district to acquire or assess a
groundwater right under Section 
17B-1-202
, and subject to Section 
17B-1-204
, a petition
signed by the owners of private real property that:
(i) is located within the proposed special district;
(ii) covers at least 33% of the total private land area within the proposed special district
as a whole and within each applicable area;
(iii) is equal in value to at least 25% of the value of all private real property within the
proposed special district as a whole and within each applicable area; and
(iv) complies with the requirements of Subsection 
17B-1-205
(1) and Section
17B-1-208
;
(b) subject to Section 
17B-1-204
, a petition that:
(i) is signed by registered voters residing within the proposed special district as a whole
and within each applicable area, equal in number to at least 33% of the number of votes cast in
the proposed special district as a whole and in each applicable area, respectively, for the office
of governor at the last regular general election prior to the filing of the petition; and
(ii) complies with the requirements of Subsection 
17B-1-205
(1) and Section
17B-1-208
;
(c) if the proposed special district is a special district to acquire or assess a
groundwater right under Section 
17B-1-202
, and subject to Section 
17B-1-204
, a petition
signed by the owners of groundwater rights that:
(i) are diverted within the proposed special district;
(ii) cover at least 33% of the total amount of groundwater diverted in accordance with
groundwater rights within the proposed special district as a whole and within each applicable
area; and
(iii) comply with the requirements of Subsection 
17B-1-205
(1) and Section 
17B-1-208
;
(d) for the creation of an infrastructure financing district, a petition signed by 100% of
the owners of surface property within the applicable area;
[
(d)
] 
(e)
 a resolution proposing the creation of a special district, adopted by the
legislative body of each county whose unincorporated area, whether in whole or in part,
includes and each municipality whose boundaries include any of the proposed special district;
or
[
(e)
] 
(f)
 a resolution proposing the creation of a special district, adopted by the board of
trustees of an existing special district whose boundaries completely encompass the proposed
special district, if:
(i) the proposed special district is being created to provide one or more components of
the same service that the initiating special district is authorized to provide; and
(ii) the initiating special district is not providing to the area of the proposed special
district any of the components that the proposed special district is being created to provide.
(2) (a) Each resolution under Subsection [
(1)(d) or (e)
] 
(1)(e) or (f)
 shall:
(i) describe the area proposed to be included in the proposed special district;
(ii) be accompanied by a map that shows the boundaries of the proposed special
district;
(iii) describe the service proposed to be provided by the proposed special district;
(iv) if the resolution proposes the creation of a specialized special district, specify the
type of specialized special district proposed to be created;
(v) explain the anticipated method of paying the costs of providing the proposed
service;
(vi) state the estimated average financial impact on a household within the proposed
special district;
(vii) state the number of members that the board of trustees of the proposed special
district will have, consistent with the requirements of Subsection [
17B-1-302
(4)
]
17B-1-302
(8)
;
(viii) for a proposed basic special district:
(A) state whether the members of the board of trustees will be elected or appointed or
whether some members will be elected and some appointed, as provided in Section
17B-1-1402
;
(B) if one or more members will be elected, state the basis upon which each elected
member will be elected; and
(C) if applicable, explain how the election or appointment of board members will
transition from one method to another based on stated milestones or events, as provided in
Section 
17B-1-1402
;
(ix) for a proposed improvement district whose remaining area members or county
members, as those terms are defined in Section 
17B-2a-404
, are to be elected, state that those
members will be elected; and
(x) for a proposed service area that is entirely within the unincorporated area of a single
county, state whether the initial board of trustees will be:
(A) the county legislative body;
(B) appointed as provided in Section 
17B-1-304
; or
(C) elected as provided in Section 
17B-1-306
.
(b) Each county or municipal legislative body adopting a resolution under Subsection
[
(1)(d)
] 
(1)(e)
 shall, on or before the first public hearing under Section 
17B-1-210
, mail or
deliver a copy of the resolution to the responsible body if the county or municipal legislative
body's resolution is one of multiple resolutions adopted by multiple county or municipal
legislative bodies proposing the creation of the same special district.
Section 13. Section 
17B-1-204
 is amended to read:
17B-1-204.
Request for service required before filing of petition -- Request
requirements.
(1) [
A
] 
Except for a petition for the creation of an infrastructure financing district, a
petition may not be filed until after:
(a) a request has been filed with:
(i) the clerk of each county in whose unincorporated area any part of the proposed
special district is located; and
(ii) the clerk or recorder of each municipality in which any part of the proposed special
district is located; and
(b) each county and municipality with which a request under Subsection (1)(a) is filed:
(i) has adopted a resolution under Subsection 
17B-1-212
(1) indicating whether it will
provide the requested service; or
(ii) is considered to have declined to provide the requested service under Subsection
17B-1-212
(2) or (3).
(2) Each request under Subsection (1)(a) shall:
(a) ask the county or municipality to provide the service proposed to be provided by the
proposed special district within the applicable area; and
(b) be signed by:
(i) unless the request is a request to create a special district to acquire or assess a
groundwater right under Section 
17B-1-202
, the owners of private real property that:
(A) is located within the proposed special district;
(B) covers at least 10% of the total private land area within the applicable area; and
(C) is equal in value to at least 7% of the value of all private real property within the
applicable area;
(ii) if the request is a request to create a special district to acquire or assess a
groundwater right under Section 
17B-1-202
, the owners of groundwater rights that:
(A) are diverted within the proposed special district; and
(B) cover at least 10% of the amount of groundwater diverted in accordance with
groundwater rights within the applicable area; or
(iii) registered voters residing within the applicable area equal in number to at least
10% of the number of votes cast in the applicable area for the office of governor at the last
general election prior to the filing of the request.
(3) For purposes of Subsections (1) and (2), an area proposed to be annexed to a
municipality in a petition under Section 
10-2-403
 filed before and still pending at the time of
filing of a petition shall be considered to be part of that municipality.
Section 14. Section 
17B-1-205
 is amended to read:
17B-1-205.
Petition and request requirements -- Withdrawal of signature.
(1) Each petition and request shall:
(a) indicate the typed or printed name and current residence address of each property
owner, groundwater right owner, or registered voter signing the petition;
(b) (i) if it is a property owner request or petition, indicate the address of the property
as to which the owner is signing the request or petition; or
(ii) if it is a groundwater right owner request or petition, indicate the location of the
diversion of the groundwater as to which the owner is signing the groundwater right owner
request or petition;
(c) describe the entire area of the proposed special district;
(d) be accompanied by a map showing the boundaries of the entire proposed special
district;
(e) specify the service proposed to be provided by the proposed special district;
(f) if the petition or request proposes the creation of a specialized special district,
specify the type of specialized special district proposed to be created;
(g) for a proposed basic special district:
(i) state whether the members of the board of trustees will be elected or appointed or
whether some members will be elected and some appointed, as provided in Section
17B-1-1402
;
(ii) if one or more members will be elected, state the basis upon which each elected
member will be elected; and
(iii) if applicable, explain how the election or appointment of board members will
transition from one method to another based on stated milestones or events, as provided in
Section 
17B-1-1402
;
(h) for a proposed improvement district whose remaining area members or county
members, as those terms are defined in Section 
17B-2a-404
, are to be elected, state that those
members will be elected; [
and
]
(i) for a proposed service area that is entirely within the unincorporated area of a single
county, state whether the initial board of trustees will be:
(i) the county legislative body;
(ii) appointed as provided in Section 
17B-1-304
; or
(iii) elected as provided in Section 
17B-1-306
;
(j) designate up to five signers of the petition or request as sponsors, one of whom shall
be designated as the contact sponsor, with the mailing address and telephone number of each;
(k) if the petition or request is a groundwater right owner petition or request proposing
the creation of a special district to acquire a groundwater right under Section 
17B-1-202
,
explain the anticipated method:
(i) of paying for the groundwater right acquisition; and
(ii) of addressing blowing dust created by the reduced use of water; [
and
]
(l) if the petition or request is a groundwater right owner petition or request proposing
the creation of a special district to assess a groundwater right under Section 
17B-1-202
, explain
the anticipated method:
(i) of assessing the groundwater right and securing payment of the assessment; and
(ii) of addressing blowing dust created by the reduced use of water[
.
]
; and
(m) for a proposed infrastructure financing district:
(i) state whether the members of the board of trustees will be elected or appointed or
whether some members will be elected and some appointed;
(ii) if one or more members will be elected, state the basis upon which each elected
member will be elected;
(iii) if applicable, explain how the election or appointment of board members will
transition from one method to another based on stated milestones or events, as provided in
Section 
17B-2a-1303
;
(iv) state whether divisions will be established within the boundary of the
infrastructure financing district so that some or all board members represent a division rather
than the district at large and, if so, describe the boundary of each division; and
(v) if applicable, be accompanied by the governing document prepared according to
Section 
17B-2-1303
.
(2) 
(a)
 [
A
] 
Subject to Subsection (2)(b), a
 signer of a request or petition may withdraw
or, once withdrawn, reinstate the signer's signature at any time before the filing of the request
or petition by filing a written withdrawal or reinstatement with:
[
(a)
] 
(i)
 in the case of a request:
[
(i)
] 
(A)
 the clerk of the county or the clerk or recorder of the municipality in whose
applicable area the signer's property is located, if the request is a property owner request;
[
(ii)
] 
(B)
 the clerk of the county or the clerk or recorder of the municipality in whose
applicable area the signer's groundwater diversion point is located, if the request is a
groundwater right owner request; or
[
(iii)
] 
(C)
 the clerk of the county or the clerk or recorder of the municipality in whose
applicable area the signer resides, if the request is a registered voter request; or
[
(b)
] 
(ii)
 in the case of a petition, the responsible clerk.
(b) The time for a signer of a petition for the creation of an infrastructure financing
district to withdraw or reinstate the signer's signature is any time before the petition is certified
under Section 
17B-1-209
.
(3) (a) A clerk of the county who receives a timely, valid written withdrawal or
reinstatement from a signer of a registered voter request or registered voter petition shall use
the procedures described in Subsection 
20A-1-1003
(3) to determine whether to remove or
reinstate the individual's signature.
(b) If a municipal clerk or recorder receives a timely, valid written withdrawal or
reinstatement from a signer of a registered voter request or registered voter petition, the clerk of
the municipality's county shall assist the municipal clerk or recorder with determining whether
to remove or reinstate the individual's signature using the procedures described in Subsection
20A-1-1003
(3).
Section 15. Section 
17B-1-208
 is amended to read:
17B-1-208.
Additional petition requirements and limitations.
(1) 
(a)
 Each petition shall:
[
(a)
] 
(i)
 be filed with the responsible clerk;
[
(b)
] 
(ii)
 separately group signatures by county and municipality, so that all signatures
of the owners of real property located within or of registered voters residing within each county
whose unincorporated area includes and each municipality whose boundaries include part of
the proposed special district are grouped separately; and
[
(c)
] 
(iii) (A)
 state the number of members that the board of trustees of the proposed
special district will have, consistent with the requirements of Subsection [
17B-1-302
(4)
]
17B-1-302
(8)
[
.
]
; and
(B) for a petition proposing the creation of an infrastructure financing district, include
the name and address of each of the proposed board members.
(b) (i) A petition for the creation of an infrastructure financing district shall state the
name of the proposed infrastructure financing district.
(ii) The name of an infrastructure financing district shall include the phrase
"infrastructure financing district."
(2) (a) A petition may not propose the creation of a special district that includes an area
located within the unincorporated part of a county or within a municipality if the legislative
body of that county or municipality has adopted a resolution under Subsection 
17B-1-212
(1)
indicating that the county or municipality will provide to that area the service proposed to be
provided by the proposed special district.
(b) Subsection (2)(a) does not apply if the county or municipal legislative body is
considered to have declined to provide the requested service under Subsection 
17B-1-212
(3).
(c) Subsection (2)(a) may not be construed to prevent the filing of a petition that
proposes the creation of a special district whose area excludes that part of the unincorporated
area of a county or that part of a municipality to which the county or municipality has
indicated, in a resolution adopted under Section 
17B-1-212
, it will provide the requested
service.
(3) A petition may not propose the creation of a special district whose area includes:
(a) some or all of an area described in a previously filed petition that, subject to
Subsection 
17B-1-202
(4)(b):
(i) proposes the creation of a special district to provide the same service as proposed by
the later filed petition; and
(ii) is still pending at the time the later petition is filed; or
(b) some or all of an area within a political subdivision that provides in that area the
same service proposed to be provided by the proposed special district.
(4) A petition may not be filed more than 12 months after a county or municipal
legislative body declines to provide the requested service under Subsection 
17B-1-212
(1) or is
considered to have declined to provide the requested service under Subsection 
17B-1-212
(2) or
(3).
Section 16. Section 
17B-1-209
 is amended to read:
17B-1-209.
Petition certification -- Amended petition.
(1) No later than five days after the day on which a petition is filed, the responsible
clerk shall mail a copy of the petition to the clerk of each other county and the clerk or recorder
of each municipality in which any part of the proposed special district is located.
(2) (a) No later than 35 days after the day on which a petition is filed, the clerk of each
county whose unincorporated area includes and the clerk or recorder of each municipality
whose boundaries include part of the proposed special district shall:
(i) with the assistance of other county or municipal officers from whom the county
clerk or municipal clerk or recorder requests assistance, determine, for the clerk or recorder's
respective county or municipality, whether the petition complies with the requirements of
Subsection 
17B-1-203
(1)(a), (b), [
or
] (c), 
or (d),
 as the case may be, and Subsections
17B-1-208
(2), (3), and (4); and
(ii) notify the responsible clerk in writing of the clerk or recorder's determination under
Subsection (2)(a)(i).
(b) The responsible clerk may rely on the determinations of other county clerks or
municipal clerks or recorders under Subsection (2)(a) in making the responsible clerk's
determinations and certification or rejection under Subsection (3).
(3) (a) Within 45 days after the filing of a petition, the responsible clerk shall[
:
]
[
(i)
] determine whether the petition complies with Subsection 
17B-1-203
(1)(a), (b),
[
or
] (c), 
or (d),
 as the case may be, Subsection 
17B-1-205
(1), and Section 
17B-1-208
[
; and
]
.
[
(ii) (A) if
] 
(b) If
 the responsible clerk determines that the petition complies with the
applicable requirements
, the responsible clerk shall
:
[
(I) (Aa)
] 
(i) (A)
 certify the petition [
and
] 
as complying with all applicable
requirements;
(B)
 deliver the certified petition to the responsible body; and
[
(Bb)
] 
(C)
 mail or deliver written notification of the certification 
and a copy of the
certified petition
 to the contact sponsor; or
[
(II)
] 
(ii)
 for each petition described in Subsection [
(3)(b)(i)
] 
(3)(d)(i)
, deliver a copy of
the petition to the legislative body of each county whose unincorporated area includes and each
municipality whose boundaries include any of the proposed basic special district, with a notice
indicating that the clerk has determined that the petition complies with applicable
requirements[
; or
]
.
[
(B) if
] 
(c) If
 the responsible clerk determines that the petition fails to comply with any
of the applicable requirements, 
the responsible clerk shall
 reject the petition and notify the
contact sponsor in writing of the rejection and the reasons for the rejection.
[
(b)
] 
(d)
 (i) A petition for which an election is not required under Subsection
17B-1-214
(3) and that proposes the creation of a basic special district that has within its
boundaries fewer than one residential dwelling unit per 10 acres of land may not be certified
without the approval, by resolution, of the legislative body of each county whose
unincorporated area includes and each municipality whose boundaries include any of the
proposed special district.
(ii) Before adopting a resolution giving its approval under Subsection [
(3)(b)(i)
]
(3)(d)(i)
, a county or municipal legislative body may hold one or more public hearings on the
petition.
(iii) If a petition described in Subsection [
(3)(b)(i)
] 
(3)(d)(i)
 is approved as provided in
that subsection, the responsible clerk shall, within 10 days after its approval:
(A) certify the petition and deliver the certified petition to the responsible body; and
(B) mail or deliver written notification of the certification to the contact sponsor.
(4) Except for a petition described in Subsection [
(3)(b)(i)
] 
(3)(d)(i)
, if the responsible
clerk fails to certify or reject a petition within 45 days after its filing, the petition shall be
considered to be certified.
(5) The responsible clerk shall certify or reject petitions in the order in which they are
filed.
(6) (a) If the responsible clerk rejects a petition under Subsection [
(3)(a)(ii)(B)
] 
(3)(c)
,
the petition may be amended to correct the deficiencies for which it was rejected and then
refiled.
(b) A valid signature on a petition that was rejected under Subsection [
(3)(a)(ii)(B)
]
(3)(c)
 may be used toward fulfilling the applicable signature requirement of the petition as
amended under Subsection (6)(a).
(c) If a petition is amended and refiled under Subsection (6)(a) after having been
rejected by the responsible clerk under Subsection [
(3)(a)(ii)(B)
] 
(3)(c)
, the amended petition
shall be considered as newly filed, and its processing priority shall be determined by the date
on which it is refiled.
(7) The responsible clerk and each county clerk and municipal clerk or recorder shall:
(a) act in good faith in making the determinations under this section; and
(b) with the assistance of the county clerk if necessary, and as applicable, use the
procedures described in Section 
20A-1-1002
 to determine whether a signer is a registered
voter.
Section 17. Section 
17B-1-210
 is amended to read:
17B-1-210.
Public hearing.
(1) The legislative body of each county and municipality with which a request is filed
or that adopts a resolution under Subsection [
17B-1-203
(1)(d)
] 
17B-1-203
(1)(e)
 and the board
of trustees of each special district that adopts a resolution under Subsection [
17B-1-203
(1)(e)
]
17B-1-203
(1)(f)
 shall hold a public hearing or a set of public hearings, sufficient in number and
location to ensure that no substantial group of residents of the proposed special district need
travel an unreasonable distance to attend a public hearing.
(2) Each public hearing under Subsection (1) shall be held:
(a) no later than 45 days after:
(i) for a public hearing on a request, certification of a request under Subsection
17B-1-206
(1)(b)(i); or
(ii) for a public hearing on a resolution, adoption of a resolution under Subsection
[
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
;
(b) within the proposed special district;
(c) except as provided in Subsections (6) and (7), within the applicable area; and
(d) for the purpose of:
(i) for a public hearing on a request, allowing public input on:
(A) whether the requested service is needed in the area of the proposed special district;
(B) whether the service should be provided by the county or municipality or the
proposed special district; and
(C) all other matters relating to the request or the proposed special district; or
(ii) for a public hearing on a resolution, allowing the public to ask questions of and
obtain further information from the governing body holding the hearing regarding the issues
contained in or raised by the resolution.
(3) A quorum of each governing body holding a public hearing under this section shall
be present throughout each hearing held by that governing body.
(4) Each hearing under this section shall be held on a weekday evening other than a
holiday beginning no earlier than 6 p.m.
(5) At the beginning and end of each hearing concerning a resolution, the governing
body shall announce the deadline for filing protests and generally explain the protest procedure
and requirements.
(6) Two or more county or municipal legislative bodies may jointly hold a hearing or
set of hearings required under this section if all the requirements of this section, other than the
requirements of Subsection (2)(c), are met as to each hearing.
(7) Notwithstanding Subsection (2)(c), a governing body may hold a public hearing or
set of public hearings outside the applicable area if:
(a) there is no reasonable place to hold a public hearing within the applicable area; and
(b) the public hearing or set of public hearings is held as close to the applicable area as
reasonably possible.
Section 18. Section 
17B-1-211
 is amended to read:
17B-1-211.
Notice of public hearings -- Publication of resolution.
(1) Before holding a public hearing or set of public hearings under Section 
17B-1-210
,
the legislative body of each county or municipality with which a request is filed or that adopts a
resolution under Subsection [
17B-1-203
(1)(d)
] 
17B-1-203
(1)(e)
 and the board of trustees of
each special district that adopts a resolution under Subsection [
17B-1-203
(1)(e)
]
17B-1-203
(1)(f)
 shall publish notice for the proposed special district, as a class B notice under
Section 
63G-30-102
, for at least two weeks before the day of the hearing or the day of the first
of the set of hearings.
(2) Each notice required under Subsection (1) shall:
(a) if the hearing or set of hearings is concerning a resolution:
(i) contain the entire text or an accurate summary of the resolution; and
(ii) state the deadline for filing a protest against the creation of the proposed special
district;
(b) clearly identify each governing body involved in the hearing or set of hearings;
(c) state the date, time, and place for the hearing or set of hearings and the purposes for
the hearing or set of hearings; and
(d) describe or include a map of the entire proposed special district.
(3) County or municipal legislative bodies may jointly provide the notice required
under this section if all the requirements of this section are met as to each notice.
Section 19. Section 
17B-1-213
 is amended to read:
17B-1-213.
Protest after adoption of resolution -- Adoption of resolution
approving creation for certain districts.
(1) For purposes of this section, "adequate protests" means protests that are:
(a) filed with the county clerk, municipal clerk or recorder, or special district secretary
or clerk, as the case may be, within 60 days after the last public hearing required under Section
17B-1-210
; and
(b) signed by:
(i) the owners of private real property that:
(A) is located within the proposed special district;
(B) covers at least 25% of the total private land area within the applicable area; and
(C) is equal in value to at least 15% of the value of all private real property within the
applicable area; or
(ii) registered voters residing within the applicable area equal in number to at least 25%
of the number of votes cast in the applicable area for the office of president of the United States
at the most recent election prior to the adoption of the resolution.
(2) An owner may withdraw a protest at any time before the expiration of the 60-day
period described in Subsection (1)(a).
(3) If adequate protests are filed, the governing body that adopted a resolution under
Subsection [
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
:
(a) may not:
(i) hold or participate in an election under Subsection 
17B-1-214
(1) with respect to the
applicable area;
(ii) take any further action under the protested resolution to create a special district or
include the applicable area in a special district; or
(iii) for a period of two years, adopt a resolution under Subsection [
17B-1-203
(1)(d) or
(e)
] 
17B-1-203
(1)(e) or (f)
 proposing the creation of a special district including substantially
the same area as the applicable area and providing the same service as the proposed special
district in the protested resolution; and
(b) shall, within five days after receiving adequate protests, mail or deliver written
notification of the adequate protests to the responsible body.
(4) Subsection (3)(a) may not be construed to prevent an election from being held for a
proposed special district whose boundaries do not include an applicable area that is the subject
of adequate protests.
(5) (a) If adequate protests are not filed with respect to a resolution proposing the
creation of a special district for which an election is not required under Subsection
17B-1-214
(3)(d), (e), (f), or (g), a resolution approving the creation of the special district shall
be adopted by:
(i) (A) the legislative body of a county whose unincorporated area is included within
the proposed special district; and
(B) the legislative body of a municipality whose area is included within the proposed
special district; or
(ii) the board of trustees of the initiating special district.
(b) Each resolution adopted under Subsection (5)(a) shall:
(i) describe the area included in the special district;
(ii) be accompanied by a map that shows the boundaries of the special district;
(iii) describe the service to be provided by the special district;
(iv) state the name of the special district; and
(v) provide a process for the appointment of the members of the initial board of
trustees.
Section 20. Section 
17B-1-214
 is amended to read:
17B-1-214.
Election -- Exceptions.
(1) (a) Except as provided in Subsection (3) and in Subsection 
17B-1-213
(3)(a), an
election on the question of whether the special district should be created shall be held by:
(i) if the proposed special district is located entirely within a single county, the
responsible clerk; or
(ii) except as provided under Subsection (1)(b), if the proposed special district is
located within more than one county, the clerk of each county in which part of the proposed
special district is located, in cooperation with the responsible clerk.
(b) Notwithstanding Subsection (1)(a)(ii), if the proposed special district is located
within more than one county and the only area of a county that is included within the proposed
special district is located within a single municipality, the election for that area shall be held by
the municipal clerk or recorder, in cooperation with the responsible clerk.
(2) Each election under Subsection (1) shall be held at the next special or regular
general election date that is:
(a) for an election pursuant to a property owner or registered voter petition, more than
45 days after certification of the petition under [
Subsection 
17B-1-209
(3)(a)
] 
Subsections
17B-1-209
(3)(a), (b), and (c)
; or
(b) for an election pursuant to a resolution, more than 60 days after the latest hearing
required under Section 
17B-1-210
.
(3) The election requirement of Subsection (1) does not apply to:
(a) a petition filed under Subsection 
17B-1-203
(1)(a) if it contains the signatures of the
owners of private real property that:
(i) is located within the proposed special district;
(ii) covers at least 67% of the total private land area within the proposed special district
as a whole and within each applicable area; and
(iii) is equal in value to at least 50% of the value of all private real property within the
proposed special district as a whole and within each applicable area;
(b) a petition filed under Subsection 
17B-1-203
(1)(b) if it contains the signatures of
registered voters residing within the proposed special district as a whole and within each
applicable area, equal in number to at least 67% of the number of votes cast in the proposed
special district as a whole and in each applicable area, respectively, for the office of governor at
the last general election prior to the filing of the petition;
(c) a groundwater right owner petition filed under Subsection 
17B-1-203
(1)(c) if the
petition contains the signatures of the owners of groundwater rights that:
(i) are diverted within the proposed special district; and
(ii) cover at least 67% of the total amount of groundwater diverted in accordance with
groundwater rights within the proposed special district as a whole and within each applicable
area;
(d) a resolution adopted under Subsection [
17B-1-203
(1)(d)
] 
17B-1-203
(1)(e)
 on or
after May 5, 2003, that proposes the creation of a special district to provide fire protection,
paramedic, and emergency services or law enforcement service, if the proposed special district:
(i) includes the unincorporated area, whether in whole or in part, of one or more
counties; or
(ii) consists of an area that:
(A) has a boundary that is the same as the boundary of the municipality whose
legislative body adopts the resolution proposing the creation of the special district;
(B) previously received fire protection, paramedic, and emergency services or law
enforcement service from another special district; and
(C) may be withdrawn from the other special district under Section 
17B-1-505
 without
an election because the withdrawal is pursuant to an agreement under Subsection
17B-1-505
(5)(a)(ii)(A) or (5)(b);
(e) a resolution adopted under Subsection [
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or
(f)
 if the resolution proposes the creation of a special district that has no registered voters
within its boundaries;
(f) a resolution adopted under Subsection [
17B-1-203
(1)(d)
] 
17B-1-203
(1)(e)
 on or
after May 11, 2010, that proposes the creation of a special district described in Subsection
17B-1-202
(1)(a)(xiii); [
or
]
(g) a resolution adopted under Section 
17B-2a-1105
 to create a municipal services
district
; or
(h) a petition for the creation of an infrastructure financing district
.
(4) (a) If the proposed special district is located in more than one county, the
responsible clerk shall coordinate with the clerk of each other county and the clerk or recorder
of each municipality involved in an election under Subsection (1) so that the election is held on
the same date and in a consistent manner in each jurisdiction.
(b) The clerk of each county and the clerk or recorder of each municipality involved in
an election under Subsection (1) shall cooperate with the responsible clerk in holding the
election.
(c) Except as otherwise provided in this part, each election under Subsection (1) shall
be governed by Title 20A, Election Code.
Section 21. Section 
17B-1-215
 is amended to read:
17B-1-215.
Notice and plat to lieutenant governor -- Recording requirements --
Certificate of incorporation -- Special district incorporated as specialized special district
or basic special district -- Effective date.
(1) (a) Within the time specified in Subsection (1)(b), the responsible body shall file
with the lieutenant governor:
(i) if applicable, a copy of the petition certified, under Section 
17B-1-209
, as
complying with all applicable requirements;
[
(i)
] 
(ii)
 a copy of a notice of an impending boundary action, as defined in Section
67-1a-6.5
, that meets the requirements of Subsection 
67-1a-6.5
(3); and
[
(ii)
] 
(iii)
 a copy of an approved final local entity plat, as defined in Section 
67-1a-6.5
.
(b) The responsible body shall file the documents listed in Subsection (1)(a) with the
lieutenant governor within 10 days after:
(i) the canvass of an election under Section 
17B-1-214
, if a majority of those voting at
the election within the proposed special district as a whole vote in favor of the creation of a
special district;
(ii) certification of a petition as to which the election requirement of Subsection
17B-1-214
(1) does not apply because of Subsection 
17B-1-214
(3)(a), (b), [
or
] (c)
, or (h)
; or
(iii) adoption of a resolution, under Subsection 
17B-1-213
(5) approving the creation of
a special district for which an election was not required under Subsection 
17B-1-214
(3)(d), (e),
(f), or (g) by the legislative body of each county whose unincorporated area is included within
and the legislative body of each municipality whose area is included within the proposed
special district, or by the board of trustees of the initiating special district.
(2) Upon the lieutenant governor's issuance of a certificate of incorporation under
Section 
67-1a-6.5
, the responsible body shall:
(a) if the special district is located within the boundary of a single county, submit to the
recorder of that county:
(i) the original:
(A) notice of an impending boundary action;
(B) certificate of incorporation; and
(C) approved final local entity plat; and
(ii) if applicable, a certified copy of each resolution adopted under Subsection
17B-1-213
(5); or
(b) if the special district is located within the boundaries of more than a single county:
(i) submit to the recorder of one of those counties:
(A) the original of the documents listed in Subsections (2)(a)(i)(A), (B), and (C); and
(B) if applicable, a certified copy of each resolution adopted under Subsection
17B-1-213
(5); and
(ii) submit to the recorder of each other county:
(A) a certified copy of the documents listed in Subsection (2)(a)(i)(A), (B), and (C);
and
(B) if applicable, a certified copy of each resolution adopted under Subsection
17B-1-213
(5).
(3) The area of each special district consists of:
(a) if an election was held under Section 
17B-1-214
, the area of the new special district
as approved at the election;
(b) if an election was not required because of Subsection 
17B-1-214
(3)(a), (b), [
or
] (c),
or (h),
 the area of the proposed special district as described in the petition; or
(c) if an election was not required because of Subsection 
17B-1-214
(3)(d), (e), (f), or
(g), the area of the new special district as described in the resolution adopted under Subsection
17B-1-213
(5).
(4) (a) Upon the lieutenant governor's issuance of the certificate of incorporation under
Section 
67-1a-6.5
, the special district is created and incorporated as:
(i) the type of specialized special district that was specified in the petition under
Subsection 
17B-1-203
(1)(a), (b), [
or
] (c)
, or (d)
 or resolution under Subsection
[
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
, if the petition or resolution proposed the
creation of a specialized special district; or
(ii) a basic special district, if the petition or resolution did not propose the creation of a
specialized special district.
(b) (i) The effective date of a special district's incorporation for purposes of assessing
property within the special district is governed by Section 
59-2-305.5
.
(ii) Until the documents listed in Subsection (2) are recorded in the office of the
recorder of each county in which the property is located, a newly incorporated special district
may not:
(A) levy or collect a property tax on property within the special district;
(B) levy or collect an assessment on property within the special district; [
or
]
(C) charge or collect a fee for service provided to property within the special district[
.
]
;
or
(D) issue bonds.
Section 22. Section 
17B-1-216
 is amended to read:
17B-1-216.
Costs and expenses of creating a special district.
(1) 
(a)
 Except as provided in Subsection (2) 
and subject to Subsection (1)(b)
, each
county whose unincorporated area includes and each municipality whose boundaries include
some or all of the proposed special district shall bear their respective costs and expenses
associated with the procedure under this part for creating a special district.
[
(2)
] 
(b)
 Within a year after its creation, each special district shall reimburse the costs
and expenses associated with the preparation, certification, and recording of the approved final
local entity plat of the special district and accompanying documents under Section 
17B-1-215
.
(2) (a) Subject to Subsection (2)(b), the sponsors of a petition for the creation of an
infrastructure financing district shall bear the costs and expenses associated with the procedure
under this part for creating the infrastructure financing district.
(b) An infrastructure financing district may reimburse petition sponsors the costs and
expenses the petition sponsors paid under Subsection (2)(a).
Section 23. Section 
17B-1-302
 is amended to read:
17B-1-302.
Board member qualifications -- Number of board members.
(1) Except as provided in Section 
17B-2a-905
, each member of a special district board
of trustees shall be:
(a) a registered voter at the location of the member's residence; and
(b) except as otherwise provided in Subsection (2) [
or
]
,
 (3), 
or (4),
 a resident within:
(i) the boundaries of the special district; and
(ii) if applicable, the boundaries of the division of the special district from which the
member is elected or appointed.
(2) (a) As used in this Subsection (2):
(i) "Proportional number" means the number of members of a board of trustees that
bears, as close as mathematically possible, the same proportion to all members of the board that
the number of seasonally occupied homes bears to all residences within the district that receive
service from the district.
(ii) "Seasonally occupied home" means a single-family residence:
(A) that is located within the special district;
(B) that receives service from the special district; and
(C) whose owner occupies the residence on a temporary or seasonal basis, rather than
as the principal place of residence as defined in Section 
20A-2-105
.
(b) If over 50% of the residences within a special district that receive service from the
special district are seasonally occupied homes, the requirement under Subsection (1)(b) is
replaced, for a proportional number of members of the board of trustees, with the requirement
that the member be an owner of land, or an agent or officer of the owner of land:
(i) that receives, or intends to receive, service from the district; and
(ii) that is located within the special district and, if applicable, the division from which
the member is elected.
(3) (a) [
For
] 
Subsection (3)(b) applies to
 a board of trustees member in
:
(i)
 a basic special district[
, or in
]
;
(ii)
 any other type of special district that is located solely within a county of the fourth,
fifth, or sixth class, that has within the district's boundaries fewer than one residential dwelling
unit per 10 acres of land[
,
]
; or
(iii) an infrastructure financing district.
(b) For a board of trustees member in a special district listed in Subsection (3)(a), the
board of trustees may replace
 the requirement under Subsection (1)(b) [
may be replaced by
]
with
 the requirement that the member be:
(i) a resident within the boundaries of the special district; or
(ii) an owner of land, or an agent or officer of the owner of land, 
that:
(A) is located
 within the special district [
that
]
; and
(B)
 receives, or [
intends
] 
is expected
 to receive, service from the district.
(4) A board member of an infrastructure financing district is not required to be a
resident within the boundary of the infrastructure financing district if:
(a) all owners of surface property within the district waive the residency requirement;
(b) the district boundary does not include any residents; or
(c) (i) in the case of an appointed board position, no qualified individual timely files to
be considered for appointment to the board; or
(ii) in the case of an elected board position, no qualified individual files a declaration
of candidacy for the board position under Subsection 
17B-1-306
(5).
[
(b)
] 
(5)
 A member of the board of trustees of a service area described in Subsection
17B-2a-905
(2)(a) or (3)(a), who is an elected official of the county appointing the individual, is
not subject to the requirements described in Subsection (1)(b) if the elected official was elected
at large by the voters of the county.
[
(c)
] 
(6)
 Notwithstanding Subsection (1)(b) and except as provided in Subsection
[
(3)(d)
] 
(7)
, the county legislative body may appoint to the special district board one of the
county legislative body's own members, regardless of whether the member resides within the
boundaries described in Subsection (1)(b), if:
[
(i)
] 
(a)
 the county legislative body satisfies the procedures to fill a vacancy described
in:
[
(A)
] 
(i)
 for the appointment of a new board member, Subsections 
17B-1-304
(2) and
(3); or
[
(B)
] 
(ii)
 for an appointment to fill a midterm vacancy, Subsection 
20A-1-512
(1)(a)(ii)
or Subsection 
20A-1-512
(2);
[
(ii)
] 
(b)
 fewer qualified candidates timely file to be considered for appointment to the
special district board than are necessary to fill the board;
[
(iii)
] 
(c)
 the county legislative body appoints each of the qualified candidates who
timely filed to be considered for appointment to the board; and
[
(iv)
] 
(d)
 the county legislative body appoints a member of the body to the special
district board, in accordance with Subsection 
17B-1-304
(6) or Subsection 
20A-1-512
(1)(c),
who was:
[
(A)
] 
(i)
 elected at large by the voters of the county;
[
(B)
] 
(ii)
 elected from a division of the county that includes more than 50% of the
geographic area of the special district; or
[
(C)
] 
(iii)
 if the special district is divided into divisions under Section 
17B-1-306.5
,
elected from a division of the county that includes more than 50% of the geographic area of the
division of the special district in which there is a board vacancy.
[
(d)
] 
(7)
 If it is necessary to reconstitute the board of trustees of a special district
located solely within a county of the fourth, fifth, or sixth class because the term of a majority
of the members of the board has expired without new trustees having been elected or appointed
as required by law, even if sufficient qualified candidates timely file to be considered for a
vacancy on the board, the county legislative body may appoint to the special district board no
more than one of the county legislative body's own members who does not satisfy the
requirements of Subsection (1).
[
(4)
] 
(8)
 (a) Except as otherwise provided by statute, the number of members of each
board of trustees of a special district that has nine or fewer members shall have an odd number
of members that is no fewer than three.
(b) If a board of trustees of a special district has more than nine members, the number
of members may be odd or even.
[
(5)
] 
(9)
 For a newly created special district, the number of members of the initial
board of trustees shall be the number specified:
(a) for a special district whose creation was initiated by a petition under Subsection
17B-1-203
(1)(a), (b), [
or
] (c), 
or (d),
 in the petition; or
(b) for a special district whose creation was initiated by a resolution under Subsection
[
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
, in the resolution.
[
(6)
] 
(10)
 (a) For an existing special district, the number of members of the board of
trustees may be changed by a two-thirds vote of the board of trustees.
(b) No change in the number of members of a board of trustees under Subsection
[
(6)(a)
] 
(10)(a)
 may:
(i) violate Subsection [
(4)
] 
(8)
; or
(ii) serve to shorten the term of any member of the board.
Section 24. Section 
17B-1-303
 is amended to read:
17B-1-303.
Term of board of trustees members -- Oath of office -- Bond -- Notice
of board member contact information.
(1) (a) Except as provided in Subsections (1)(b), (c), (d), and (e), the term of each
member of a board of trustees begins at noon on the January 1 following the member's election
or appointment.
(b) The term of each member of the initial board of trustees of a newly created special
district begins:
(i) upon appointment, for an appointed member; and
(ii) upon the member taking the oath of office after the canvass of the election at which
the member is elected, for an elected member.
(c) The term of each water conservancy district board member whom the governor
appoints in accordance with Subsection 
17B-2a-1005
(2)(c):
(i) begins on the later of the following:
(A) the date on which the Senate consents to the appointment; or
(B) the expiration date of the prior term; and
(ii) ends on the February 1 that is approximately four years after the date described in
Subsection (1)(c)(i)(A) or (B).
(d) The term of a member of a board of trustees whom an appointing authority appoints
in accordance with Subsection (5)(b) begins upon the member taking the oath of office.
(e) If the member of the board of trustees fails to assume or qualify for office on
January 1 for any reason, the term begins on the date the member assumes or qualifies for
office.
(2) (a) (i) Except as provided in Subsection (8), and subject to Subsections (2)(a)(ii)
and (iii), the term of each member of a board of trustees is four years, except that
:
(A) approximately half the members of the initial board of trustees of an infrastructure
financing district, as designated in the governing document, shall serve a six-year term so that
the term of approximately half the board members expires every two years; and
(B) for any other special district,
 approximately half the members of the initial board of
trustees, chosen by lot, shall serve a two-year term so that the term of approximately half the
board members expires every two years.
(ii) If the terms of members of the initial board of trustees of a newly created special
district do not begin on January 1 because of application of Subsection (1)(b), the terms of
those members shall be adjusted as necessary, subject to Subsection (2)(a)(iii), to result in the
terms of their successors complying with:
(A) the requirement under Subsection (1)(a) for a term to begin on January 1 following
a member's election or appointment; and
(B) the requirement under Subsection (2)(a)(i) that terms be four years.
(iii) If the term of a member of a board of trustees does not begin on January 1 because
of the application of Subsection (1)(e), the term is shortened as necessary to result in the term
complying with the requirement under Subsection (1)(a) that the successor member's term,
regardless of whether the incumbent is the successor, begins at noon on January 1 following the
successor member's election or appointment.
(iv) An adjustment under Subsection (2)(a)(ii) may not add more than a year to or
subtract more than a year from a member's term.
(b) Each board of trustees member shall serve until a successor is duly elected or
appointed and qualified, unless the member earlier is removed from office or resigns or
otherwise leaves office.
(c) If a member of a board of trustees no longer meets the qualifications of Subsection
17B-1-302
(1), (2), [
or
] (3), 
(4), (5), (6), or (7),
 or if the member's term expires without a duly
elected or appointed successor:
(i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
(ii) the member may continue to serve until a successor is duly elected or appointed
and qualified.
(3) (a) (i) Before entering upon the duties of office, each member of a board of trustees
shall take the oath of office specified in Utah Constitution, Article IV,
Section 10.
(ii) A judge, county clerk, notary public, or the special district clerk may administer an
oath of office.
(b) The member of the board of trustees taking the oath of office shall file the oath of
office with the clerk of the special district.
(c) The failure of a board of trustees member to take the oath under Subsection (3)(a)
does not invalidate any official act of that member.
(4) A board of trustees member may serve any number of terms.
(5) (a) Except as provided in Subsection (6), each midterm vacancy in a board of
trustees position is filled in accordance with Section 
20A-1-512
.
(b) When the number of members of a board of trustees increases in accordance with
Subsection [
17B-1-302
(6)
] 
17B-1-302
(10)
, the appointing authority may appoint an individual
to fill a new board of trustees position in accordance with Section 
17B-1-304
 or 
20A-1-512
.
(6) (a) As used in this Subsection (6):
(i) "Appointed official" means a person who:
(A) is appointed as a member of a special district board of trustees by a county or
municipality that is entitled to appoint a member to the board; and
(B) holds an elected position with the appointing county or municipality.
(ii) "Appointing entity" means the county or municipality that appointed the appointed
official to the board of trustees.
(b) The board of trustees shall declare a midterm vacancy for the board position held
by an appointed official if:
(i) during the appointed official's term on the board of trustees, the appointed official
ceases to hold the elected position with the appointing entity; and
(ii) the appointing entity submits a written request to the board to declare the vacancy.
(c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the
appointing entity shall appoint another person to fill the remaining unexpired term on the board
of trustees.
(7) (a) A member of a board of trustees shall obtain a fidelity bond or obtain theft or
crime insurance for the faithful performance of the member's duties, in the amount and with the
sureties or with an insurance company that the board of trustees prescribes.
(b) The special district:
(i) may assist the board of trustees in obtaining a fidelity bond or obtaining theft or
crime insurance as a group or for members individually; and
(ii) shall pay the cost of each fidelity bond or insurance coverage required under this
Subsection (7).
(8) (a) The lieutenant governor may extend the term of an elected district board
member by one year in order to compensate for a change in the election year under Subsection
17B-1-306
(14).
(b) When the number of members of a board of trustees increases in accordance with
Subsection [
17B-1-302
(6)
] 
17B-1-302
(10)
, to ensure that the term of approximately half of the
board members expires every two years in accordance with Subsection (2)(a):
(i) the board shall set shorter terms for approximately half of the new board members,
chosen by lot; and
(ii) the initial term of a new board member position may be less than two or four years.
(9) (a) A special district shall:
(i) post on the Utah Public Notice Website created in Section 
63A-16-601
 the name,
phone number, and email address of each member of the special district's board of trustees;
(ii) update the information described in Subsection (9)(a)(i) when:
(A) the membership of the board of trustees changes; or
(B) a member of the board of trustees' phone number or email address changes; and
(iii) post any update required under Subsection (9)(a)(ii) within 30 days after the date
on which the change requiring the update occurs.
(b) This Subsection (9) applies regardless of whether the county or municipal
legislative body also serves as the board of trustees of the special district.
Section 25. Section 
17B-1-306.5
 is amended to read:
17B-1-306.5.
Dividing a special district into divisions.
(1) Subject to Subsection (3), the board of trustees of a special district that has elected
board members may, upon a vote of two-thirds of the members of the board, divide the special
district, or the portion of the special district represented by elected board of trustees members,
into divisions so that some or all of the elected members of the board of trustees may be elected
by division rather than at large.
(2) Subject to Subsection (3), the appointing authority of a special district that has
appointed board members may, upon a vote of two-thirds of the members of the appointing
authority, divide the special district, or the portion of the special district represented by
appointed board members, into divisions so that some or all of the appointed members of the
board of trustees may be appointed by division rather than at large.
(3) Before dividing a special district into divisions or before changing the boundaries
of divisions already established, the board of trustees under Subsection (1), or the appointing
authority, under Subsection (2), shall:
(a) prepare a proposal that describes the boundaries of the proposed divisions; and
(b) hold a public hearing at which any interested person may appear and speak for or
against the proposal.
(4) (a) The board of trustees or the appointing authority shall review the division
boundaries at least every 10 years.
(b) Except for changes in the divisions necessitated by annexations to or withdrawals
from the special district, the boundaries of divisions established under Subsection (1) or (2)
may not be changed more often than every five years.
(c) Changes to the boundaries of divisions already established under Subsection (1) or
(2) are not subject to the two-thirds vote requirement of Subsection (1) or (2).
(5) (a) Notwithstanding Subsections (1) through (4), after the creation of an
infrastructure financing district the board of trustees may divide the infrastructure financing
district into divisions, as provided in the petition to create the infrastructure financing district
under Subsection 
17B-1-205
(1)(m), so that some or all board members represent a division
rather than the district at large.
(b) No more frequently than every four years, the board of an infrastructure financing
district may modify division boundaries to ensure that each division has as nearly as possible
the same number of registered voters.
(c) In dividing an infrastructure financing district into divisions or in modifying
division boundaries, the board shall consider the anticipated future number of registered voters
within divisions based on proposed development within the divisions.
Section 26. Section 
17B-1-403
 is amended to read:
17B-1-403.
Initiation of annexation process -- Petition and resolution.
(1) Except as provided in Sections 
17B-1-415
, 
17B-1-416
, and 
17B-1-417
, the process
to annex an area to a special district may be initiated by[
:
] 
a petition, as provided in Subsection
(2), or a resolution, as provided in Subsection (3).
[
(a) (i) for
] 
(2) (a) For
 a district whose board of trustees is elected by electors based on
the acre-feet of water allotted to the land owned by the elector and subject to Subsection [
(2)
]
(4)
, 
the process to annex an area to the special district is initiated by
 a petition signed by the
owners of all of the acre-feet of water allotted to the land proposed for annexation[
; or
]
.
(b) For an infrastructure financing district, the process to annex an area to the
infrastructure financing district is initiated by a petition signed by 100% of the owners of all
surface property within the area proposed for annexation that is within the designated
expansion area, as defined in Section 
17B-2a-1301
.
[
(ii) for
] 
(c) For
 all other districts[
:
]
, the process to annex an area to the special district
may be initiated by
[
(A)
] a petition signed by:
[
(I)
] 
(i)
 the owners of private real property that:
[
(Aa)
] 
(A)
 is located within the area proposed to be annexed;
[
(Bb)
] 
(B)
 covers at least 10% of the total private land area within the entire area
proposed to be annexed and within each applicable area; and
[
(Cc)
] 
(C)
 is equal in assessed value to at least 10% of the assessed value of all private
real property within the entire area proposed to be annexed and within each applicable area;
[
or
]
[
(II)
] 
(ii)
 the owner of all the publicly owned real property, if all the real property
within the area proposed for annexation is owned by a public entity other than the federal
government; or
[
(B)
] 
(iii)
 [
a petition signed by
] registered voters residing within the entire area
proposed to be annexed and within each applicable area equal in number to at least 10% of the
number of votes cast within the entire area proposed to be annexed and within each applicable
area, respectively, for the office of governor at the last regular general election before the filing
of the petition[
;
]
.
[
(b)
] 
(3) The process to annex an area to a special district may be initiated by:
(a)
 a resolution adopted by the legislative body of each county whose unincorporated
area includes and each municipality whose boundaries include any of the area proposed to be
annexed; or
[
(c)
] 
(b)
 a resolution adopted by the board of trustees of the proposed annexing special
district if, for at least 12 consecutive months immediately preceding adoption of the resolution,
the special district has provided:
(i) retail service to the area; or
(ii) a wholesale service to a provider of the same service that has provided that service
on a retail basis to the area.
[
(2)
] 
(4)
 If an association representing all acre-feet of water allotted to the land that is
proposed to be annexed to a special district signs a petition under Subsection [
(1)(a)(i)
] 
(2)(a)
,
pursuant to a proper exercise of authority as provided in the bylaws or other rules governing the
association, the petition shall be considered to have been signed by the owners of all of the
acre-feet of water allotted to the land proposed for annexation, even though less than all of the
owners within the association consented to the association signing the petition.
[
(3)
] 
(5)
 Each petition 
under Subsection (2)
 and resolution under Subsection [
(1)
] 
(3)
shall:
(a) describe the area proposed to be annexed; and
(b) be accompanied by a map of the boundaries of the area proposed to be annexed.
[
(4)
] 
(6)
 The legislative body of each county and municipality that adopts a resolution
under Subsection [
(1)(b)
] 
(3)
 shall, within five days after adopting the resolution, mail or
deliver a copy of the resolution to the board of trustees of the proposed annexing special
district.
Section 27. Section 
17B-1-404
 is amended to read:
17B-1-404.
Petition requirements.
(1) Each petition under Subsection [
17B-1-403
(1)(a)
] 
17B-1-403
(2)
 shall:
(a) indicate the typed or printed name and current residence address of each person
signing the petition;
(b) separately group signatures by county and municipality, so that all signatures of the
owners of real property located within or of registered voters residing within each county
whose unincorporated area includes and each municipality whose boundaries include part of
the area proposed for annexation are grouped separately;
(c) if it is a petition under Subsection [
17B-1-403
(1)(a)(i) or (ii)(A)
] 
17B-1-403
(2)(a)
or (2)(c)(i) or (ii)
, indicate the address of the property as to which the owner is signing the
petition;
(d) designate up to three signers of the petition as sponsors, one of whom shall be
designated the contact sponsor, with the mailing address and telephone number of each;
(e) be filed with the board of trustees of the proposed annexing special district; and
(f) for a petition under Subsection [
17B-1-403
(1)(a)(i)
] 
17B-1-403
(2)(a)
, state the
proposed method of supplying water to the area proposed to be annexed.
(2) By submitting a written withdrawal or reinstatement with the board of trustees of
the proposed annexing special district, a signer of a petition may withdraw, or once withdrawn,
reinstate the signer's signature at any time:
(a) 
(i)
 before the public hearing under Section 
17B-1-409
 is held; or
[
(b)
] 
(ii)
 if a hearing is not held because of Subsection 
17B-1-413
(1) or because no
hearing is requested under Subsection 
17B-1-413
(2)(a)(ii)(B), until 20 days after the special
district provides notice under Subsection 
17B-1-413
(2)(a)(i)[
.
]
; or
(b) for an infrastructure financing district, before the board of trustees adopts a
resolution approving the annexation.
Section 28. Section 
17B-1-405
 is amended to read:
17B-1-405.
Petition certification.
(1) Within 30 days after the filing of a petition under Subsection [
17B-1-403
(1)(a)(i) or
(ii)
] 
17B-1-403
(2)
 or within the time that the special district and each petition sponsor
designate by written agreement, the board of trustees of the proposed annexing special district
shall:
(a) with the assistance of officers of the county in which the area proposed to be
annexed is located from whom the board requests assistance, determine whether the petition
meets the requirements of Subsection [
17B-1-403
(1)(a)(i) or (ii)
] 
17B-1-403
(2)(a), (b), or (c)
,
as the case may be, Subsection [
17B-1-403
(3)
] 
17B-1-403
(5)
, and Subsection 
17B-1-404
(1);
and
(b) (i) if the board determines that the petition complies with the requirements, certify
the petition and mail or deliver written notification of the certification to the contact sponsor;
or
(ii) if the board determines that the petition fails to comply with any of the
requirements, reject the petition and mail or deliver written notification of the rejection and the
reasons for the rejection to the contact sponsor.
(2) (a) If the board rejects a petition under Subsection (1)(b)(ii), the petition may be
amended to correct the deficiencies for which it was rejected and then refiled.
(b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
used toward fulfilling the applicable signature requirement of the petition as amended under
Subsection (2)(a).
(3) The board shall process an amended petition filed under Subsection (2)(a) in the
same manner as an original petition under Subsection (1).
Section 29. Section 
17B-1-405.5
 is enacted to read:
 17B-1-405.5.
Provisions not applicable to infrastructure financing district
annexation.
Sections 
17B-1-406
, 
17B-1-407
, 
17B-1-408
, 
17B-1-409
, 
17B-1-410
, 
17B-1-411
,
17B-1-412
, and 
17B-1-413
 do not apply to a proposed annexation to an infrastructure financing
district.
Section 30. Section 
17B-1-414
 is amended to read:
17B-1-414.
Resolution approving an annexation -- Filing of notice and plat with
lieutenant governor -- Recording requirements -- Effective date.
(1) (a) Subject to Subsection (1)(b), the special district board shall adopt a resolution
approving the annexation of the area proposed to be annexed or rejecting the proposed
annexation within 90 days after:
(i) expiration of the protest period under Subsection 
17B-1-412
(2), if sufficient protests
to require an election are not filed;
(ii) for a petition that meets the requirements of Subsection 
17B-1-413
(1):
(A) a public hearing under Section 
17B-1-409
 is held, if the board chooses or is
required to hold a public hearing under Subsection 
17B-1-413
(2)(a)(ii); or
(B) expiration of the time for submitting a request for public hearing under Subsection
17B-1-413
(2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
hearing[
.
]
; or
(iii) for a proposed annexation to an infrastructure financing district, the board's
certification of the annexation petition under Section 
17B-1-405
.
(b) If the special district has entered into an agreement with the United States that
requires the consent of the United States for an annexation of territory to the district, a
resolution approving annexation under this part may not be adopted until the written consent of
the United States is obtained and filed with the board of trustees.
(2) (a) (i) Within the time specified under Subsection (2)(a)(ii), the board shall file with
the lieutenant governor:
(A) a copy of a notice of an impending boundary action, as defined in Section
67-1a-6.5
, that meets the requirements of Subsection 
67-1a-6.5
(3) and, if applicable,
Subsection (2)(b); and
(B) a copy of an approved final local entity plat, as defined in Section 
67-1a-6.5
.
(ii) The board shall file the documents listed in Subsection (2)(a)(i) with the lieutenant
governor:
(A) within 30 days after adoption of a resolution under Subsection (1), Subsection
17B-1-412
(3)(c)(i), or Section 
17B-1-415
; and
(B) as soon as practicable after receiving the notice under Subsection 
10-2-425
(2) of a
municipal annexation that causes an automatic annexation to a special district under Section
17B-1-416
.
(b) For an automatic annexation to a special district under Section 
17B-1-416
, the
notice of an impending boundary action required under Subsection (2)(a) shall state that an area
outside the boundaries of the special district is being automatically annexed to the special
district under Section 
17B-1-416
 because of a municipal annexation under Title 10, Chapter 2,
Part 4, Annexation.
(c) Upon the lieutenant governor's issuance of a certificate of annexation under Section
67-1a-6.5
, the board shall:
(i) if the annexed area is located within the boundary of a single county, submit to the
recorder of that county:
(A) the original:
(I) notice of an impending boundary action;
(II) certificate of annexation; and
(III) approved final local entity plat; and
(B) a certified copy of the annexation resolution; or
(ii) if the annexed area is located within the boundaries of more than a single county:
(A) submit to the recorder of one of those counties:
(I) the original of the documents listed in Subsections (2)(c)(i)(A)(I), (II), and (III); and
(II) a certified copy of the annexation resolution; and
(B) submit to the recorder of each other county:
(I) a certified copy of the documents listed in Subsection (2)(c)(i)(A)(I), (II), and (III);
and
(II) a certified copy of the annexation resolution.
(3) (a) As used in this Subsection (3), "fire district annexation" means an annexation
under this part of an area located in a county of the first class to a special district:
(i) created to provide fire protection, paramedic, and emergency services; and
(ii) in the creation of which an election was not required because of Subsection
17B-1-214
(3)(d).
(b) An annexation under this part is complete and becomes effective:
(i) (A) on July 1 for a fire district annexation, if the lieutenant governor issues the
certificate of annexation under Section 
67-1a-6.5
 from January 1 through June 30; or
(B) on January 1 for a fire district annexation, if the lieutenant governor issues the
certificate of annexation under Section 
67-1a-6.5
 from July 1 through December 31; or
(ii) upon the lieutenant governor's issuance of the certificate of annexation under
Section 
67-1a-6.5
, for any other annexation.
(c) (i) The effective date of a special district annexation for purposes of assessing
property within the annexed area is governed by Section 
59-2-305.5
.
(ii) Until the documents listed in Subsection (2)(c) are recorded in the office of the
recorder of each county in which the property is located, a special district may not:
(A) levy or collect a property tax on property within the annexed area;
(B) levy or collect an assessment on property within the annexed area; or
(C) charge or collect a fee for service provided to property within the annexed area.
(iii) Subsection (3)(c)(ii)(C):
(A) may not be construed to limit a special district's ability before annexation to charge
and collect a fee for service provided to property that is outside the special district's boundary;
and
(B) does not apply until 60 days after the effective date, under Subsection (3)(b), of the
special district's annexation, with respect to a fee that the special district was charging for
service provided to property within the annexed area immediately before the area was annexed
to the special district.
Section 31. Section 
17B-1-504
 is amended to read:
17B-1-504.
Initiation of withdrawal process -- Notice of petition.
(1) Except as provided in Section 
17B-1-505
, the process to withdraw an area from a
special district may be initiated:
(a) for a special district funded predominantly by revenues from property taxes or
service charges other than those based upon acre-feet of water:
(i) by a petition signed by the owners of private real property that:
(A) is located within the area proposed to be withdrawn;
(B) covers at least 51% of the total private land within the area proposed to be
withdrawn; and
(C) is equal in taxable value to at least 51% of the taxable value of all private real
property within the area proposed to be withdrawn;
(ii) by a petition signed by registered voters residing within the area proposed to be
withdrawn equal in number to at least 67% of the number of votes cast in the same area for the
office of governor at the last regular general election before the filing of the petition;
(iii) by a resolution adopted by the board of trustees of the special district in which the
area proposed to be withdrawn is located, which:
(A) states the reasons for withdrawal; and
(B) is accompanied by a general description of the area proposed to be withdrawn; or
(iv) by a resolution to file a petition with the special district to withdraw from the
special district all or a specified portion of the area within a municipality or county, adopted by
the governing body of a municipality that has within its boundaries an area located within the
boundaries of a special district, or by the governing body of a county that has within its
boundaries an area located within the boundaries of a special district that is located in more
than one county, which petition of the governing body shall be filed with the board of trustees
only if a written request to petition the board of trustees to withdraw an area from the special
district has been filed with the governing body of the municipality, or county, and the request
has been signed by registered voters residing within the boundaries of the area proposed for
withdrawal equal in number to at least 51% of the number of votes cast in the same area for the
office of governor at the last regular general election before the filing of the petition;
(b) for a special district whose board of trustees is elected by electors based on the
acre-feet of water allotted to the land owned by the elector:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the owners of at least 67% of the acre-feet of water allotted
to the land proposed to be withdrawn; [
or
]
(c) for a special district funded predominantly by revenues other than property taxes,
service charges, or assessments based upon an allotment of acre-feet of water:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the registered voters residing within the entire area proposed
to be withdrawn, which area shall be comprised of an entire unincorporated area within the
special district or an entire municipality within a special district, or a combination thereof,
equal in number to at least 67% of the number of votes cast within the entire area proposed to
be withdrawn for the office of governor at the last regular general election before the filing of
the petition[
.
]
; or
(d) for an infrastructure financing district, by a petition signed by 100% of the owners
of all surface property within the area proposed to be withdrawn.
(2) 
(a)
 Prior to soliciting any signatures on a petition under Subsection (1), the
sponsors of the petition shall:
[
(a)
] 
(i)
 notify the special district board with which the petition is intended to be filed
that the sponsors will be soliciting signatures for a petition; and
[
(b)
] 
(ii)
 mail a copy of the petition to the special district board.
(b) Subsection (2)(a) does not apply to a petition to withdraw an area from an
infrastructure financing district.
Section 32. Section 
17B-1-506
 is amended to read:
17B-1-506.
Withdrawal petition requirements.
(1) Each petition under Section 
17B-1-504
 shall:
(a) indicate the typed or printed name and current address of each owner of acre-feet of
water, property owner, registered voter, or authorized representative of the governing body
signing the petition;
(b) separately group signatures by municipality and, in the case of unincorporated
areas, by county;
(c) if it is a petition signed by the owners of land, the assessment of which is based on
acre-feet of water, indicate the address of the property and the property tax identification parcel
number of the property as to which the owner is signing the request;
(d) designate up to three signers of the petition as sponsors, or in the case of a petition
filed under Subsection 
17B-1-504
(1)(a)(iv), designate a governmental representative as a
sponsor, and in each case, designate one sponsor as the contact sponsor with the mailing
address and telephone number of each;
(e) state the reasons for withdrawal; and
(f) when the petition is filed with the special district board of trustees, be accompanied
by a map generally depicting the boundaries of the area proposed to be withdrawn and a legal
description of the area proposed to be withdrawn.
(2) (a) The special district may prepare an itemized list of expenses, other than attorney
expenses, that will necessarily be incurred by the special district in the withdrawal proceeding. 
The itemized list of expenses may be submitted to the contact sponsor. If the list of expenses is
submitted to the contact sponsor within 21 days after receipt of the petition, the contact sponsor
on behalf of the petitioners shall be required to pay the expenses to the special district within
90 days of receipt. Until funds to cover the expenses are delivered to the special district, the
district will have no obligation to proceed with the withdrawal and the time limits on the
district stated in this part will be tolled. If the expenses are not paid within the 90 days, or
within 90 days from the conclusion of any arbitration under Subsection (2)(b), the petition
requesting the withdrawal shall be considered to have been withdrawn.
(b) If there is no agreement between the board of trustees of the special district and the
contact sponsor on the amount of expenses that will necessarily be incurred by the special
district in the withdrawal proceeding, either the board of trustees or the contact sponsor may
submit the matter to binding arbitration in accordance with Title 78B, Chapter 6, Part 2,
Alternative Dispute Resolution Act; provided that, if the parties cannot agree upon an arbitrator
and the rules and procedures that will control the arbitration, either party may pursue
arbitration under Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(3) (a) A signer of a petition may withdraw or, once withdrawn, reinstate the signer's
signature at any time before the public hearing under Section 
17B-1-508
 by submitting a
written statement requesting withdrawal or reinstatement with the board of trustees of the
special district in which the area proposed to be withdrawn is located.
(b) A statement described in Subsection (3)(a) shall comply with the requirements
described in Subsection 
20A-1-1003
(2).
(c) As applicable and using the procedures described in Subsection 
20A-1-1003
(3), the
county clerk shall assist the board of trustees to determine whether to remove or reinstate a
registered voter's signature after the voter submits a timely, valid statement described in
Subsection (3)(a).
(4) If it reasonably appears that, if the withdrawal which is the subject of a petition
filed under Subsection 
17B-1-504
(1)(a)(i) or (ii) is granted, it will be necessary for a
municipality to provide to the withdrawn area the service previously supplied by the special
district, the board of trustees of the special district may, within 21 days after receiving the
petition, notify the contact sponsor in writing that, before it will be considered by the board of
trustees, the petition shall be presented to and approved by the governing body of the
municipality as provided in Subsection 
17B-1-504
(1)(a)(iv) before it will be considered by the
special district board of trustees. If the notice is timely given to the contact sponsor, the
petition shall be considered to have been withdrawn until the municipality files a petition with
the special district under Subsection 
17B-1-504
(1)(a)(iv).
(5) (a) After receiving the notice required by Subsection 
17B-1-504
(2), unless
specifically allowed by law, a public entity may not make expenditures from public funds to
support or oppose the gathering of signatures on a petition for withdrawal.
(b) Nothing in this section prohibits a public entity from providing factual information
and analysis regarding a withdrawal petition to the public, so long as the information grants
equal access to both the opponents and proponents of the petition for withdrawal.
(c) Nothing in this section prohibits a public official from speaking, campaigning,
contributing personal money, or otherwise exercising the public official's constitutional rights.
(6) Subsections (2), (3), (4), and (5) do not apply to a petition seeking the withdrawal
of an area from an infrastructure financing district.
Section 33. Section 
17B-1-511
 is amended to read:
17B-1-511.
Continuation of tax levy or assessment after withdrawal to pay for
proportionate share of district bonds.
(1) Other than as provided in Subsection (2), and unless an escrow trust fund is
established and funded pursuant to Subsection 
17B-1-510
(5)(j), property within the withdrawn
area shall continue after withdrawal to be taxable by the special district:
(a) for the purpose of paying the withdrawn area's just proportion of the special
district's general obligation bonds or lease obligations payable from property taxes with respect
to lease revenue bonds issued by a local building authority on behalf of the special district,
other than those bonds treated as revenue bonds under Subsection 
17B-1-510
(5)(i), until the
bonded indebtedness has been satisfied; and
(b) to the extent and for the years necessary to generate sufficient revenue that, when
combined with the revenues from the district remaining after withdrawal, is sufficient to
provide for the payment of principal and interest on the district's general obligation bonds that
are treated as revenue bonds under Subsection 
17B-1-510
(5)(i).
(2) For a special district funded predominately by revenues other than property taxes,
service charges, or assessments based upon an allotment of acre-feet of water, property within
the withdrawn area shall continue to be taxable by the special district for purposes of paying
the withdrawn area's proportionate share of bonded indebtedness or judgments against the
special district incurred prior to the date the petition was filed.
(3) An area withdrawn from an infrastructure financing district remains subject to any
taxes, fees, and assessments imposed by the infrastructure financing district until obligations
allocable to the withdrawn area are paid.
[
(3)
] 
(4)
 Except as provided in Subsections (1) [
and
]
,
 (2), 
and (3),
 upon withdrawal, the
withdrawing area is relieved of all other taxes, assessments, and charges levied by the district,
including taxes and charges for the payment of revenue bonds and maintenance and operation
cost of the special district.
Section 34. Section 
17B-1-1001
 is amended to read:
17B-1-1001.
Provisions applicable to property tax levy.
(1) Each special district that levies and collects property taxes shall levy and collect
them according to the provisions of Title 59, Chapter 2, Property Tax Act.
(2) As used in this section:
(a) "Appointed board of trustees" means a board of trustees of a special district that
includes a member who is appointed to the board of trustees in accordance with Section
17B-1-304
, Subsection 
17B-1-303
(5), Subsection 
17B-1-306
(5)(h), or any of the applicable
provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special
Districts.
(b) "Elected board of trustees" means a board of trustees of a special district that
consists entirely of members who are elected to the board of trustees in accordance with
Subsection (4), Section 
17B-1-306
, or any of the applicable provisions in Title 17B, Chapter
2a, Provisions Applicable to Different Types of Special Districts.
(3) (a) For a taxable year beginning on or after January 1, 2018, a special district may
not levy or collect property tax revenue that exceeds the certified tax rate unless:
(i) to the extent that the revenue from the property tax was pledged before January 1,
2018, the special district pledges the property tax revenue to pay for bonds or other obligations
of the special district; or
(ii) the proposed tax or increase in the property tax rate has been approved by:
(A) an elected board of trustees;
(B) subject to Subsection (3)(b), an appointed board of trustees;
(C) a majority of the registered voters within the special district who vote in an election
held for that purpose on a date specified in Section 
20A-1-204
;
(D) the legislative body of the appointing authority; or
(E) the legislative body of:
(I) a majority of the municipalities partially or completely included within the
boundary of the specified special district; or
(II) the county in which the specified special district is located, if the county has some
or all of its unincorporated area included within the boundary of the specified special district.
(b) For a special district with an appointed board of trustees, each appointed member of
the board of trustees shall comply with the trustee reporting requirements described in Section
17B-1-1003
 before the special district may impose a property tax levy that exceeds the certified
tax rate.
(4) (a) Notwithstanding provisions to the contrary in Title 17B, Chapter 2a, Provisions
Applicable to Different Types of Special Districts, and subject to Subsection (4)(b), members
of the board of trustees of a special district shall be elected, if:
(i) two-thirds of all members of the board of trustees of the special district vote in favor
of changing to an elected board of trustees; and
(ii) the legislative body of each municipality or county that appoints a member to the
board of trustees adopts a resolution approving the change to an elected board of trustees.
(b) A change to an elected board of trustees under Subsection (4)(a) may not shorten
the term of any member of the board of trustees serving at the time of the change.
(5) Subsections (2), (3), and (4) do not apply to:
(a) Title 17B, Chapter 2a, Part 6, Metropolitan Water District Act;
(b) Title 17B, Chapter 2a, Part 10, Water Conservancy District Act; or
(c) a special district in which:
(i) the board of trustees consists solely of:
(A) land owners or the land owners' agents; or
(B) as described in Subsection [
17B-1-302
(3)
] 
17B-1-302
(3), (5), (6), or (7)
, land
owners or the land owners' agents or officers; and
(ii) there are no residents within the special district at the time a property tax is levied.
(6) An infrastructure financing district may not pledge or otherwise use any property
tax revenue for the payment of bonds.
Section 35. Section 
17B-1-1002
 is amended to read:
17B-1-1002.
Limit on special district property tax levy -- Exclusions.
(1) The rate at which a special district levies a property tax for district operation and
maintenance expenses on the taxable value of taxable property within the district may not
exceed:
(a) .0008, for a basic special district;
(b) .0004, for a cemetery maintenance district;
(c) .0004, for a drainage district;
(d) .0008, for a fire protection district;
(e) .0008, for an improvement district;
(f) .0005, for a metropolitan water district;
(g) .0004, for a mosquito abatement district;
(h) .0004, for a public transit district;
(i) (i) .0023, for a service area that:
(A) is located in a county of the first or second class; and
(B) (I) provides fire protection, paramedic, and emergency services; or
(II) subject to Subsection (3), provides law enforcement services; or
(ii) .0014, for each other service area;
(j) the rates provided in Section 
17B-2a-1006
, for a water conservancy district; [
or
]
(k) .0008 for a municipal services district[
.
]
; or
(l) .0004 for an infrastructure financing district.
(2) Property taxes levied by a special district are excluded from the limit applicable to
that district under Subsection (1) if the taxes are:
(a) levied under Section 
17B-1-1103
 by a special district, other than a water
conservancy district, to pay principal of and interest on general obligation bonds issued by the
district;
(b) levied to pay debt and interest owed to the United States; or
(c) levied to pay assessments or other amounts due to a water users association or other
public cooperative or private entity from which the district procures water.
(3) A service area described in Subsection (1)(i)(i)(B)(II) may not collect a tax
described in Subsection (1)(i)(i) if a municipality or a county having a right to appoint a
member to the board of trustees of the service area under Subsection 
17B-2a-905
(2) assesses
on or after November 30 in the year in which the tax is first collected and each subsequent year
that the tax is collected:
(a) a generally assessed fee imposed under Section 
17B-1-643
 for law enforcement
services; or
(b) any other generally assessed fee for law enforcement services.
Section 36. Section 
17B-1-1302
 is amended to read:
17B-1-1302.
Special district dissolution.
(1)
 A special district may be dissolved as provided in this part.
(2) No later than 180 days after the payment of all debt of an infrastructure financing
district, the board of trustees of the infrastructure financing district shall adopt a resolution to
dissolve the infrastructure financing district.
Section 37. Section 
17B-1-1303
 is amended to read:
17B-1-1303.
Initiation of dissolution process.
The process to dissolve a special district may be initiated by:
(1) for an inactive special district:
(a) (i) for a special district whose board of trustees is elected by electors based on the
acre-feet of water allotted to the land owned by the elector, a petition signed by the owners of
25% of the acre-feet of water allotted to the land within the special district; or
(ii) for all other districts:
(A) a petition signed by the owners of private real property that:
(I) is located within the special district proposed to be dissolved;
(II) covers at least 25% of the private land area within the special district; and
(III) is equal in assessed value to at least 25% of the assessed value of all private real
property within the special district; or
(B) a petition signed by registered voters residing within the special district proposed
to be dissolved equal in number to at least 25% of the number of votes cast in the district for
the office of governor at the last regular general election before the filing of the petition; or
(b) a resolution adopted by the administrative body; [
and
]
(2) for an active special district, a petition signed by:
(a) for a special district whose board of trustees is elected by electors based on the
acre-feet of water allotted to the land owned by the elector, the owners of 33% of the acre-feet
of water allotted to the land within the special district;
(b) for a special district created to acquire or assess a groundwater right for the
development and execution of a groundwater management plan in coordination with the state
engineer in accordance with Section 
73-5-15
, the owners of groundwater rights that:
(i) are diverted within the district; and
(ii) cover at least 33% of the total amount of groundwater diverted in accordance with
the groundwater rights within the district as a whole; or
(c) for all other districts:
(i) the owners of private real property that:
(A) is located within the special district proposed to be dissolved;
(B) covers at least 33% of the private land area within the special district; and
(C) is equal in assessed value to at least 25% of the assessed value of all private real
property within the special district; or
(ii) 33% of registered voters residing within the special district proposed to be
dissolved[
.
]
; or
(3) for an infrastructure financing district, a resolution adopted by the board of trustees.
Section 38. Section 
17B-1-1310
 is amended to read:
17B-1-1310.
Notice to lieutenant governor -- Recording requirements --
Distribution of remaining assets.
(1) 
(a)
 [
The
] 
Within the time specified in Subsection (1)(b), an
 administrative body[
,
]
shall file with the lieutenant governor a copy of a notice of an impending boundary action, as
defined in Section 
67-1a-6.5
, that meets the requirements of Subsection 
67-1a-6.5
(3)[
:
]
.
[
(a)
] 
(b) The administrative body shall file a notice of an impending boundary action
under Subsection (1)(a)
 within 30 days after the day on which
, as applicable:
(i)
 the administrative body adopts a resolution approving the dissolution of an inactive
special district; [
or
]
[
(b)
] [
within 30 days after the day on which
] 
(ii)
 a majority of the voters within an
active special district approve the dissolution of the special district in an election described in
Subsection 
17B-1-1309
(2)[
.
]
; or
(iii) for an infrastructure financing district, the administrative body adopts a resolution
to dissolve the infrastructure financing district.
(2) Upon the lieutenant governor's issuance of a certificate of dissolution under Section
67-1a-6.5
, the administrative body shall:
(a) if the special district was located within the boundary of a single county, submit to
the recorder of that county:
(i) the original:
(A) notice of an impending boundary action; and
(B) certificate of dissolution; and
(ii) a certified copy of the resolution that the administrative body adopts under
Subsection 
17B-1-1308
(1); or
(b) if the special district was located within the boundaries of more than a single
county:
(i) submit to the recorder of one of those counties:
(A) the original notice of an impending boundary action and certificate of dissolution;
and
(B) if applicable, a certified copy of the resolution that the administrative body adopts
under Subsection 
17B-1-1308
(1); and
(ii) submit to the recorder of each other county:
(A) a certified copy of the notice of an impending boundary action and certificate of
dissolution; and
(B) if applicable, a certified copy of the resolution that the administrative body adopts
under Subsection 
17B-1-1308
(1).
(3) Upon the lieutenant governor's issuance of the certificate of dissolution under
Section 
67-1a-6.5
, the special district is dissolved.
(4) (a) After the dissolution of a special district under this part, the administrative body
shall use any assets of the special district remaining after paying all debts and other obligations
of the special district to pay costs associated with the dissolution process.
(b) If the administrative body is not the board of trustees of the dissolved special
district, the administrative body shall pay any costs of the dissolution process remaining after
exhausting the remaining assets of the special district as described in Subsection (4)(a).
(c) If the administrative body is the board of trustees of the dissolved special district,
each entity that has committed to provide a service that the dissolved special district previously
provided, as described in Subsection 
17B-1-1308
(2)(b), shall pay, in the same proportion that
the services the entity commits to provide bear to all of the services the special district
provided, any costs of the dissolution process remaining after exhausting the remaining assets
of the dissolved special district described in Subsection (4)(a).
(5) (a) The administrative body shall distribute any assets of the special district that
remain after the payment of debts, obligations, and costs under Subsection (4) in the following
order of priority:
(i) if there is a readily identifiable connection between the remaining assets and a
financial burden borne by the real property owners in the dissolved special district,
proportionately to those real property owners;
(ii) if there is a readily identifiable connection between the remaining assets and a
financial burden borne by the recipients of a service that the dissolved special district provided,
proportionately to those recipients; and
(iii) subject to Subsection (6), to each entity that has committed to provide a service
that the dissolved special district previously provided, as described in Subsection
17B-1-1309
(1)(b)(ii), in the same proportion that the services the entity commits to provide
bear to all of the services the special district provided.
(6) An entity that receives cash reserves of the dissolved special district under
Subsection (5)(a)(iii) may not use the cash reserves:
(a) in any way other than for the purpose the special district originally intended; or
(b) in any area other than within the area that the dissolved special district previously
served.
Section 39. Section 
17B-1-1402
 is amended to read:
17B-1-1402.
Board of trustees of a basic special district.
(1) As specified in a petition under Subsection 
17B-1-203
(1)(a) or (b) or a resolution
under Subsection [
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
, and except as provided in
Subsection (2), the members of a board of trustees of a basic special district may be:
(a) (i) elected by registered voters; or
(ii) appointed by the responsible body, as defined in Section 
17B-1-201
; or
(b) if the area of the special district contains less than one residential dwelling unit per
50 acres of land at the time the resolution is adopted or the petition is filed, elected by the
owners of real property within the special district based on:
(i) the amount of acreage owned by property owners;
(ii) the assessed value of property owned by property owners; or
(iii) water rights:
(A) relating to the real property within the special district;
(B) that the real property owner:
(I) owns; or
(II) has transferred to the special district.
(2) As specified in a groundwater right owner petition under Subsection
17B-1-203
(1)(c) or a resolution under Subsection [
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or
(f)
, the members of a board of trustees of a basic special district created to manage groundwater
rights the district acquires or assesses under Section 
17B-1-202
 shall be:
(a) subject to Section 
17B-1-104.5
, elected by the owners of groundwater rights that
are diverted within the special district;
(b) appointed by the responsible body, as defined in Section 
17B-1-201
; or
(c) elected or appointed as provided in Subsection (3).
(3) A petition under Subsection 
17B-1-203
(1)(a) or (b) and a resolution under
Subsection [
17B-1-203
(1)(d) or (e)
] 
17B-1-203
(1)(e) or (f)
 may provide for a transition from
one or more methods of election or appointment under Subsection (1) or (2) to one or more
other methods of election or appointment based upon milestones or events that the petition or
resolution identifies.
Section 40. Section 
17B-2a-404
 is amended to read:
17B-2a-404.
Improvement district board of trustees.
(1) As used in this section:
(a) "County district" means an improvement district that does not include within its
boundaries any territory of a municipality.
(b) "County member" means a member of a board of trustees of a county district.
(c) "Electric district" means an improvement district that was created for the purpose of
providing electric service.
(d) "Included municipality" means a municipality whose boundaries are entirely
contained within but do not coincide with the boundaries of an improvement district.
(e) "Municipal district" means an improvement district whose boundaries coincide
with the boundaries of a single municipality.
(f) "Regular district" means an improvement district that is not a county district,
electric district, or municipal district.
(g) "Remaining area" means the area of a regular district that:
(i) is outside the boundaries of an included municipality; and
(ii) includes the area of an included municipality whose legislative body elects, under
Subsection (5)(a)(ii), not to appoint a member to the board of trustees of the regular district.
(h) "Remaining area member" means a member of a board of trustees of a regular
district who is appointed, or, if applicable, elected to represent the remaining area of the
district.
(2) The legislative body of the municipality included within a municipal district may:
(a) elect, at the time of the creation of the district, to be the board of trustees of the
district; and
(b) adopt at any time a resolution providing for:
(i) the election of board of trustees members, as provided in Section 
17B-1-306
; or
(ii) the appointment of board of trustees members, as provided in Section 
17B-1-304
.
(3) (a) The legislative body of a county whose unincorporated area is partly or
completely within a county district may:
(i) elect, at the time of the creation of the district, to be the board of trustees of the
district, even though a member of the legislative body of the county may not meet the
requirements of Subsection 
17B-1-302
(1);
(ii) adopt at any time a resolution providing for:
(A) the election of board of trustees members, as provided in Section 
17B-1-306
; or
(B) except as provided in Subsection (4), the appointment of board of trustees
members, as provided in Section 
17B-1-304
; and
(iii) if the conditions of Subsection (3)(b) are met, appoint a member of the legislative
body of the county to the board of trustees, except that the legislative body of the county may
not appoint more than three members of the legislative body of the county to the board of
trustees.
(b) A legislative body of a county whose unincorporated area is partly or completely
within a county district may take an action under Subsection (3)(a)(iii) if:
(i) more than 35% of the residences within a county district that receive service from
the district are seasonally occupied homes, as defined in Subsection 
17B-1-302
(2)(a)(ii);
(ii) the board of trustees are appointed by the legislative body of the county; and
(iii) there are at least two appointed board members who meet the requirements of
Subsections 
17B-1-302
(1), (2), [
and
] (3), 
(5), (6), and (7),
 except that a member of the
legislative body of the county need not satisfy the requirements of Subsections 
17B-1-302
(1),
(2), and (3).
(4) Subject to Subsection (6)(d), the legislative body of a county may not adopt a
resolution providing for the appointment of board of trustees members as provided in
Subsection (3)(a)(ii)(B) at any time after the county district is governed by an elected board of
trustees unless:
(a) the elected board has ceased to function;
(b) the terms of all of the elected board members have expired without the board
having called an election; or
(c) the elected board of trustees unanimously adopts a resolution approving the change
from an elected to an appointed board.
(5) (a) (i) Except as provided in Subsection (5)(a)(ii), the legislative body of each
included municipality shall each appoint one member to the board of trustees of a regular
district.
(ii) The legislative body of an included municipality may elect not to appoint a member
to the board under Subsection (5)(a)(i).
(b) Except as provided in Subsection (6), the legislative body of each county whose
boundaries include a remaining area shall appoint all other members to the board of trustees of
a regular district.
(6) Notwithstanding Subsection (3), each remaining area member of a regular district
and each county member of a county district shall be elected, as provided in Section
17B-1-306
, if:
(a) the petition or resolution initiating the creation of the district provides for remaining
area or county members to be elected;
(b) the district holds an election to approve the district's issuance of bonds;
(c) for a regular district, an included municipality elects, under Subsection (5)(a)(ii),
not to appoint a member to the board of trustees; or
(d) (i) at least 90 days before the municipal general election or regular general election,
as applicable, a petition is filed with the district's board of trustees requesting remaining area
members or county members, as the case may be, to be elected; and
(ii) the petition is signed by registered voters within the remaining area or county
district, as the case may be, equal in number to at least 10% of the number of registered voters
within the remaining area or county district, respectively, who voted in the last gubernatorial
election.
(7) Subject to Section 
17B-1-302
, the number of members of a board of trustees of a
regular district shall be:
(a) the number of included municipalities within the district, if:
(i) the number of included municipalities is greater than nine or is an odd number that
is not greater than nine; and
(ii) the district does not include a remaining area;
(b) the number of included municipalities plus one, if the number of included
municipalities within the district is an even number that is less than nine; and
(c) the number of included municipalities plus two, if:
(i) the number of included municipalities is an odd number that is less than nine; and
(ii) the district includes a remaining area.
(8) (a) Except as provided in Subsection (8)(b), each remaining area member of the
board of trustees of a regular district shall reside within the remaining area.
(b) Notwithstanding Subsection (8)(a) and subject to Subsection (8)(c), each remaining
area member shall be chosen from the district at large if:
(i) the population of the remaining area is less than 5% of the total district population;
or
(ii) (A) the population of the remaining area is less than 50% of the total district
population; and
(B) the majority of the members of the board of trustees are remaining area members.
(c) Application of Subsection (8)(b) may not prematurely shorten the term of any
remaining area member serving the remaining area member's elected or appointed term on May
11, 2010.
(9) If the election of remaining area or county members of the board of trustees is
required because of a bond election, as provided in Subsection (6)(b):
(a) a person may file a declaration of candidacy if:
(i) the person resides within:
(A) the remaining area, for a regular district; or
(B) the county district, for a county district; and
(ii) otherwise qualifies as a candidate;
(b) the board of trustees shall, if required, provide a ballot separate from the bond
election ballot, containing the names of candidates and blanks in which a voter may write
additional names; and
(c) the election shall otherwise be governed by Title 20A, Election Code.
(10) (a) (i) This Subsection (10) applies to the board of trustees members of an electric
district.
(ii) Subsections (2) through (9) do not apply to an electric district.
(b) The legislative body of the county in which an electric district is located may
appoint the initial board of trustees of the electric district as provided in Section 
17B-1-304
.
(c) After the initial board of trustees is appointed as provided in Subsection (10)(b),
each member of the board of trustees of an electric district shall be elected by persons using
electricity from and within the district.
(d) Each member of the board of trustees of an electric district shall be a user of
electricity from the district and, if applicable, the division of the district from which elected.
(e) The board of trustees of an electric district may be elected from geographic
divisions within the district.
(f) A municipality within an electric district is not entitled to automatic representation
on the board of trustees.
Section 41. Section 
17B-2a-405
 is amended to read:
17B-2a-405.
Board of trustees of certain sewer improvement districts.
(1) As used in this section:
(a) "Jurisdictional boundaries" means:
(i) for a qualified county, the boundaries that include:
(A) the area of the unincorporated part of the county that is included within a sewer
improvement district; and
(B) the area of each nonappointing municipality that is included within the sewer
improvement district; and
(ii) for a qualified municipality, the boundaries that include the area of the municipality
that is included within a sewer improvement district.
(b) "Nonappointing municipality" means a municipality that:
(i) is partly included within a sewer improvement district; and
(ii) is not a qualified municipality.
(c) "Qualified county" means a county:
(i) some or all of whose unincorporated area is included within a sewer improvement
district; or
(ii) which includes within its boundaries a nonappointing municipality.
(d) "Qualified county member" means a member of a board of trustees of a sewer
improvement district appointed under Subsection (3)(a)(ii).
(e) "Qualified municipality" means a municipality that is partly or entirely included
within a sewer improvement district that includes:
(i) all of the municipality that is capable of receiving sewage treatment service from the
sewer improvement district; and
(ii) more than half of:
(A) the municipality's land area; or
(B) the assessed value of all private real property within the municipality.
(f) "Qualified municipality member" means a member of a board of trustees of a sewer
improvement district appointed under Subsection (3)(a)(i).
(g) "Sewer improvement district" means an improvement district that:
(i) provides sewage collection, treatment, and disposal service; and
(ii) made an election before 1954 under Laws of Utah 1953, Chapter 29, to enable it to
continue to appoint its board of trustees members as provided in this section.
(2) (a) Notwithstanding Section 
17B-2a-404
, the board of trustees members of a sewer
improvement district shall be appointed as provided in this section.
(b) The board of trustees of a sewer improvement district may revoke the election
under Subsection (1)(d) and become subject to the provisions of Section 
17B-2a-404
 only by
the unanimous vote of all members of the sewer improvement district's board of trustees at a
time when there is no vacancy on the board.
(3) (a) The board of trustees of each sewer improvement district shall consist of:
(i) at least one person but not more than three persons appointed by the mayor of each
qualified municipality, with the consent of the legislative body of that municipality; and
(ii) at least one person but not more than three persons appointed by:
(A) the county executive, with the consent of the county legislative body, for a
qualified county operating under a county executive-council form of county government; or
(B) the county legislative body, for each other qualified county.
(b) Each qualified county member appointed under Subsection (3)(a)(ii) shall represent
the area within the jurisdictional boundaries of the qualified county.
(4) Notwithstanding Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
, the number of board of
trustees members of a sewer improvement district shall be the number that results from
application of Subsection (3)(a).
(5) Except as provided in this section, an appointment to the board of trustees of a
sewer improvement district is governed by Section 
17B-1-304
.
(6) A quorum of a board of trustees of a sewer improvement district consists of
members representing more than 50% of the total number of qualified county and qualified
municipality votes under Subsection (7).
(7) (a) Subject to Subsection (7)(b), each qualified county and each qualified
municipality is entitled to one vote on the board of trustees of a sewer improvement district for
each $10,000,000, or fractional part larger than 1/2 of that amount, of assessed valuation of
private real property taxable for district purposes within the respective jurisdictional
boundaries, as shown by the assessment records of the county and evidenced by a certificate of
the county auditor.
(b) Notwithstanding Subsection (7)(a), each qualified county and each qualified
municipality shall have at least one vote.
(8) If a qualified county or qualified municipality appoints more than one board
member, all the votes to which the qualified county or qualified municipality is entitled under
Subsection (7) for an item of board business shall collectively be cast by a majority of the
qualified county members or qualified municipal members, respectively, present at a meeting
of the board of trustees.
Section 42. Section 
17B-2a-407
 is amended to read:
17B-2a-407.
Nonfunctioning improvement district -- Replacing board of trustees.
(1) As used in this section:
(a) "Applicable certificate" means the same as that term is defined in Subsection
67-1a-6.5
(1)(a).
(b) (i) "Non-functioning improvement district" means an improvement district:
(A) for which the lieutenant governor issues an applicable certificate on or after July 1,
2022, but before October 15, 2023;
(B) for which the legislative body of a county elected to be the board of trustees of the
district under Subsection 
17B-2a-404
(3)(a); and
(C) (I) for which the responsible body has not, within 100 days after the day on which
the lieutenant governor issued the applicable certificate, complied with the recording
requirements described in Subsection 
17B-1-215
(2); or
(II) whose board of trustees has not, within 100 days after the day on which the
lieutenant governor issued the applicable certificate, held a meeting as the board of trustees of
the improvement district, that was noticed and held in accordance with the requirements of
Title 52, Chapter 4, Open and Public Meetings Act.
(ii) "Non-functioning improvement district" does not include an improvement district
that has emerged from non-functioning status under Subsection (6)(c)(ii).
(2) (a) The board of trustees of a non-functioning improvement district may not, after
the 100-day period described in Subsection (1)(b)(i)(C)(I), take any action as the board of
trustees or on behalf of the non-functioning improvement district.
(b) Any action taken in violation of Subsection (2)(a) is void.
(3) (a) An owner of land located within the boundaries of a non-functioning
improvement district may file with the lieutenant governor a request to replace the board of
trustees with a new board of trustees.
(b) A new board of trustees described in Subsection (3)(a) shall comprise three
individuals who are:
(i) owners of land located within the boundaries of the improvement district; or
(ii) agents of owners of land located within the boundaries of the improvement district.
(4) A request described in Subsection (3) shall include:
(a) the name and mailing address of the land owner who files the request;
(b) the name of the improvement district;
(c) a copy of the applicable certificate for the improvement district;
(d) written consent to the request from each owner of land located within the
boundaries of the improvement district; and
(e) the names and mailing addresses of three individuals who will serve as the board of
trustees of the improvement district until a new board of trustees is organized under Subsection
(9).
(5) Within 14 days after the day on which the lieutenant governor receives a request
described in Subsections (3) and (4), the lieutenant governor shall:
(a) determine whether:
(i) the district is a non-functioning improvement district;
(ii) the request complies with Subsection (4); and
(b) if the lieutenant governor determines that the requirements described in Subsection
(5)(a) are met, grant the request by issuing a certificate of replacement described in Subsection
(6).
(6) A certificate of replacement shall:
(a) state the name of the improvement district;
(b) reference the applicable certificate for the improvement district;
(c) declare that, upon issuance of the certificate:
(i) the existing board of trustees for the improvement district is dissolved and replaced
by an interim board of trustees consisting of the three individuals described in Subsection
(4)(e); and
(ii) the improvement district is removed from nonfunctioning status and is, beginning
at that point in time, a functioning improvement district.
(7) The interim board of trustees described in Subsection (6)(c)(i) shall record, in the
recorder's office for a county in which all or a portion of the improvement district exists:
(a) the original of the certificate of replacement; and
(b) the original or a copy of:
(i) the items described in Subsections 
17B-1-215
(2)(a)(i)(A), (B), and (C); and
(ii) if applicable, a copy of each resolution adopted under Subsection 
17B-1-213
(5).
(8) Until a new board of trustees is organized under Subsection (9):
(a) the interim board of trustees has the full authority of a board of trustees of an
improvement district; and
(b) a majority of the owners of land in the improvement district:
(i) may appoint an individual described in Subsection (3)(b) to fill a vacancy on the
interim board of trustees; and
(ii) shall file written notification of the appointment of an individual described in
Subsection (8)(b)(i) with the lieutenant governor.
(9) Within 90 days after the day on which at least 20 persons own land within the
improvement district, the interim board of trustees described in Subsection (6)(c)(i) shall
dissolve and be replaced by a board of trustees described in Subsections 
17B-1-302
(1) through
[
(3)(a)
] 
(3)
, except that:
(a) the board of trustees shall comprise three members, appointed by the lieutenant
governor, who are owners of property in the district, agents of an owner of property in the
district, or residents of the district;
(b) Subsections [
17B-1-302
(3)(c) through (6)
] 
17B-1-302
(6) through (10)
 and Section
17B-2a-404
 do not apply to the improvement district; and
(c) a member of the legislative body of the county may not serve as a member of the
board of trustees.
Section 43. Section 
17B-2a-604
 is amended to read:
17B-2a-604.
Metropolitan water district board of trustees.
(1) Members of the board of trustees of a metropolitan water district shall be:
(a) elected in accordance with:
(i) the petition or resolution that initiated the process of creating the metropolitan water
district; and
(ii) Section 
17B-1-306
;
(b) appointed in accordance with Subsection (2); or
(c) elected under Subsection (3)(a).
(2) (a) This Subsection (2) shall apply to an appointed board of trustees of a
metropolitan water district.
(b) If a district contains the area of a single municipality:
(i) the legislative body of that municipality shall appoint each member of the board of
trustees; and
(ii) one member shall be the officer with responsibility over the municipality's water
supply and distribution system, if the system is municipally owned.
(c) If a district contains some or all of the retail water service area of more than one
municipality:
(i) the legislative body of each municipality shall appoint the number of members for
that municipality as determined under Subsection (2)(c)(ii);
(ii) subject to Subsection (2)(c)(iii), the number of members appointed by each
municipality shall be determined:
(A) by agreement between the metropolitan water district and the municipalities,
subject to Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
; or
(B) as provided in Chapter 1, Part 3, Board of Trustees; and
(iii) at least one member shall be appointed by each municipality.
(d) Each trustee shall be appointed without regard to partisan political affiliations from
among citizens of the highest integrity, attainment, competence, and standing in the
community.
(3) (a) Members of the board of trustees of a metropolitan water district shall be
elected in accordance with Section 
17B-1-306
, if, subject to Subsection (3)(b):
(i) three-fourths of all members of the board of trustees of the metropolitan water
district vote in favor of changing to an elected board; and
(ii) the legislative body of each municipality that appoints a member to the board of
trustees adopts a resolution approving the change to an elected board.
(b) A change to an elected board of trustees under Subsection (3)(a) may not shorten
the term of any member of the board of trustees serving at the time of the change.
(4) A member of the board of trustees of a metropolitan water district shall be:
(a) a registered voter;
(b) a property taxpayer; and
(c) a resident of:
(i) the metropolitan water district; and
(ii) the retail water service area of the municipality that:
(A) elects the member; or
(B) the member is appointed to represent.
(5) (a) Except as provided in Subsection (7), a member shall immediately forfeit the
member's seat on the board of trustees if the member becomes elected or appointed to office in
or becomes an employee of the municipality whose legislative body appointed the member
under Subsection (2).
(b) The position of the member described in Subsection (5)(a) is vacant until filled as
provided in Section 
17B-1-304
.
(6) Except as provided in Subsection (7), the term of office of each member of the
board of trustees is as provided in Section 
17B-1-303
.
(7) Subsections (4), (5)(a), and (6) do not apply to a member who is a member under
Subsection (2)(b)(ii).
Section 44. Section 
17B-2a-704
 is amended to read:
17B-2a-704.
Mosquito abatement district board of trustees.
(1) (a) Notwithstanding Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
:
(i) the board of trustees of a mosquito abatement district consists of no less than five
members appointed in accordance with this section; and
(ii) subject to Subsection (1)(b), the legislative body of each municipality that is
entirely or partly included within a mosquito abatement district shall appoint one member to
the board of trustees.
(b) If 75% or more of the area of a mosquito abatement district is within the boundaries
of a single municipality:
(i) the board of trustees consists of five members; and
(ii) the legislative body of that municipality shall appoint all five members of the
board.
(2) Except as provided in Subsection (1), the legislative body of each county in which a
mosquito abatement district is located shall appoint at least one member but no more than three
members to the district's board of trustees as follows:
(a) the county may appoint one member if:
(i) (A) some or all of the county's unincorporated area is included within the
boundaries of the mosquito abatement district; and
(B) Subsection (2)(b) does not apply; or
(ii) (A) the number of municipalities that are entirely or partly included within the
district is an even number less than nine; and
(B) Subsection (1)(b) does not apply; or
(b) subject to Subsection (3), the county may appoint up to and including three
members if:
(i) more than 25% of the population of the mosquito abatement district resides outside
the boundaries of all municipalities that may appoint members to the board of trustees; and
(ii) a municipality appoints at least four members of the board of trustees.
(3) A county may not appoint a member in accordance with Subsection (2)(b) who
resides within a municipality that may appoint a member to the board of trustees.
(4) If the number of board members appointed by application of Subsections (1) and
(2)(a) is an even number less than nine, the legislative body of the county in which the district
is located shall appoint an additional member.
(5) Notwithstanding Subsection (2), and subject to Subsection (1)(b):
(a) if the mosquito abatement district is located entirely within one county and, in
accordance with this section, only one municipality may appoint a member of the board of
trustees, the county legislative body shall appoint at least four members to the district's board
of trustees; and
(b) if the mosquito abatement district is located entirely within one county and no
municipality may appoint a member of the board of trustees, the county legislative body shall
appoint all of the members of the board.
(6) Each board of trustees member is appointed in accordance with Section 
17B-1-304
.
(7) The applicable appointing authority shall fill each vacancy on a mosquito
abatement district board of trustees in accordance with Section 
17B-1-304
, or if the vacancy is
a midterm vacancy, in accordance with Section 
20A-1-512
.
Section 45. Section 
17B-2a-905
 is amended to read:
17B-2a-905.
Service area board of trustees.
(1) (a) Except as provided in Subsection (2), (3), or (4):
(i) the initial board of trustees of a service area located entirely within the
unincorporated area of a single county may, as stated in the petition or resolution that initiated
the process of creating the service area:
(A) consist of the county legislative body;
(B) be appointed, as provided in Section 
17B-1-304
; or
(C) be elected, as provided in Section 
17B-1-306
;
(ii) if the board of trustees of a service area consists of the county legislative body, the
board may adopt a resolution providing for future board members to be appointed, as provided
in Section 
17B-1-304
, or elected, as provided in Section 
17B-1-306
; and
(iii) members of the board of trustees of a service area shall be elected, as provided in
Section 
17B-1-306
, if:
(A) the service area is not entirely within the unincorporated area of a single county;
(B) a petition is filed with the board of trustees requesting that board members be
elected, and the petition is signed by registered voters within the service area equal in number
to at least 10% of the number of registered voters within the service area who voted at the last
gubernatorial election; or
(C) an election is held to authorize the service area's issuance of bonds.
(b) If members of the board of trustees of a service area are required to be elected
under Subsection (1)(a)(iii)(C) because of a bond election:
(i) board members shall be elected in conjunction with the bond election;
(ii) the board of trustees shall:
(A) establish a process to enable potential candidates to file a declaration of candidacy
sufficiently in advance of the election; and
(B) provide a ballot for the election of board members separate from the bond ballot;
and
(iii) except as provided in this Subsection (1)(b), the election shall be held as provided
in Section 
17B-1-306
.
(2) (a) This Subsection (2) applies to a service area created on or after May 5, 2003, if:
(i) the service area was created to provide:
(A) fire protection, paramedic, and emergency services; or
(B) law enforcement service;
(ii) in the creation of the service area, an election was not required under Subsection
17B-1-214
(3)(d); and
(iii) the service area is not a service area described in Subsection (3).
(b) (i) Each county with unincorporated area that is included within a service area
described in Subsection (2)(a), whether in conjunction with the creation of the service area or
by later annexation, shall appoint up to three members to the board of trustees.
(ii) Each municipality with an area that is included within a service area described in
Subsection (2)(a), whether in conjunction with the creation of the service area or by later
service area annexation or municipal incorporation or annexation, shall appoint one member to
the board of trustees, unless the area of the municipality is withdrawn from the service area.
(iii) Each member that a county or municipality appoints under Subsection (2)(b)(i) or
(ii) shall be an elected official of the appointing county or municipality, respectively.
(c) Notwithstanding Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
, the number of members
of a board of trustees of a service area described in Subsection (2)(a) shall be the number
resulting from application of Subsection (2)(b).
(3) (a) This Subsection (3) applies to a service area created on or after May 14, 2013,
if:
(i) the service area was created to provide fire protection, paramedic, and emergency
services;
(ii) in the creation of the service area, an election was not required under Subsection
17B-1-214
(3)(d); and
(iii) each municipality with an area that is included within the service area or county
with unincorporated area, whether in whole or in part, that is included within a service area is a
party to an agreement:
(A) entered into in accordance with Title 11, Chapter 13, Interlocal Cooperation Act,
with all the other municipalities or counties with an area that is included in the service area;
(B) to provide the services described in Subsection (3)(a)(i); and
(C) at the time a resolution proposing the creation of the service area is adopted by
each applicable municipal or county legislative body in accordance with Subsection
[
17B-1-203
(1)(d)
] 
17B-1-203
(1)(e)
.
(b) (i) Each county with unincorporated area, whether in whole or in part, that is
included within a service area described in Subsection (3)(a), whether in conjunction with the
creation of the service area or by later annexation, shall appoint one member to the board of
trustees.
(ii) Each municipality with an area that is included within a service area described in
Subsection (3)(a), whether in conjunction with the creation of the service area or by later
annexation, shall appoint one member to the board of trustees.
(iii) Each member that a county or municipality appoints under Subsection (3)(b)(i) or
(ii) shall be an elected official of the appointing county or municipality, respectively.
(iv) A vote by a member of the board of trustees may be weighted or proportional.
(c) Notwithstanding Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
, the number of members
of a board of trustees of a service area described in Subsection (3)(a) is the number resulting
from the application of Subsection (3)(b).
(4) (a) This Subsection (4) applies to a service area if:
(i) the service area provides a service to a municipality in accordance with an
agreement between the service area and the municipality in accordance with Title 11, Chapter
13, Interlocal Cooperation Act;
(ii) the municipality is not included within the service area's boundary;
(iii) the governing body of the municipality petitions the service area to request
authority to appoint one member of the board of trustees of the service area; and
(iv) the service area board of trustees approves the petition.
(b) The governing body of a municipality described in Subsection (4)(a) may appoint a
member of a service area board of trustees as follows:
(i) the governing body shall make the appointment in accordance with:
(A) Section 
17B-1-304
; or
(B) to fill a mid-term vacancy, Subsection 
20A-1-512
(1);
(ii) the governing body may not appoint an individual who is not a registered voter
residing within the municipality;
(iii) the district boundary requirement in Subsection 
17B-1-302
(1) does not apply to
the governing body's appointee;
(iv) the governing body and the service area board of trustees may not shorten the term
of office of any member of the board due to the governing body's appointment;
(v) notwithstanding Subsection [
17B-1-302
(4)
] 
17B-1-302
(8)
, the number of members
of the board of trustees of a service area described in Subsection (4)(a) may be odd or even;
and
(vi) if the number of members of a service area board of trustees is odd before the
governing body's appointment, the member that the governing body appoints may replace a
member whose term is expiring or who otherwise leaves a vacancy on the board or, if no
expiring term or vacancy exists:
(A) the number of board members may temporarily be even, including the member that
the governing body appoints, until an expiring term or vacancy exists that restores the board
membership to an odd number; and
(B) no appointing authority may fill the expiring term or vacancy that restores the
board membership to an odd number.
(c) (i) The service area board of trustees may rescind the approval described in
Subsection (4)(a) at any time.
(ii) If the service area board of trustees rescinds the approval described in Subsection
(4)(a) during the term of a board member that the governing body appointed, the appointee
shall remain on the board for the remainder of the appointee's term.
Section 46. Section 
17B-2a-1301
 is enacted to read:
Part 13. Infrastructure Financing District
 17B-2a-1301.
Definitions.
As used in this part:
(1) "Assessment bond" means the same as that term is defined in Section 
11-42-102
.
(2) "Board" means the board of trustees of an infrastructure financing district.
(3) "Designated expansion area" means an area that is:
(a) outside and contiguous to the original district boundary; and
(b) designated and described in a governing document as an area that may be subject to
future annexation to the infrastructure financing district.
(4) "Governing document" means a document described in Section 
17B-2a-1303
.
(5) "Original district boundary" means the boundary of an infrastructure financing
district as described in the approved final local entity plat, as defined in Section 
67-1a-6.5
.
(6) "Residential district" means an infrastructure financing district that contains or is
projected to contain owner-occupied residential units within the boundary of the infrastructure
financing district.
Section 47. Section 
17B-2a-1302
 is enacted to read:
 17B-2a-1302.
Provisions applicable to infrastructure financing district --
Exceptions -- Conflicting provisions -- Contract for administrative services.
(1) (a) An infrastructure financing district is governed by and has the powers stated in:
(i) this part; and
(ii) Chapter 1, Provisions Applicable to All Special Districts, except as provided in
Subsection (1)(b).
(b) (i) (A) Notwithstanding Subsection 
17B-1-103
(2)(f), an infrastructure financing
district may issue bonds only as provided in Title 11, Chapter 42, Assessment Area Act,
subject to Subsection (1)(b)(i)(B), and Title 11, Chapter 42a, Commercial Property Assessed
Clean Energy Act.
(B) To the extent that the provisions of Title 11, Chapter 42, Assessment Area Act,
apply to the use of funds from an assessment or an assessment bond for infrastructure operation
and maintenance costs or for the cost of conducting economic promotion activities, those
provisions do not apply to an infrastructure financing district.
(C) Before a county or municipality's issuance of a certificate of occupancy to an
owner-occupied residential unit that is subject to an assessment levied by an infrastructure
financing district under Title 11, Chapter 42, Assessment Area Act, the infrastructure financing
district shall ensure that the assessment allocable to that unit is paid in full and that any
assessment lien on that unit is satisfied and released.
(ii) Notwithstanding Subsection 
17B-1-103
(2)(h), an infrastructure financing district
may not exercise the power of eminent domain.
(2) This part applies only to an infrastructure financing district.
(3) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
Special Districts, and a provision in this part, the provision in this part governs.
(4) An infrastructure financing district may contract with another governmental entity
for the other governmental entity to provide administrative services to the infrastructure
financing district.
Section 48. Section 
17B-2a-1303
 is enacted to read:
 17B-2a-1303.
Governing document.
(1) The sponsors of a petition filed under Subsection 
17B-1-203
(1)(d) to create an
infrastructure financing district may include with the petition a governing document.
(2) A governing document may contain provisions for the governance of the
infrastructure financing district, consistent with this part, including:
(a) for a residential district:
(i) a provision for a transition from an appointed board position, whether at large or for
a division, to an elected board position, based upon milestones or events that the governing
document identifies;
(ii) milestones or events that will guide the board in considering modifications to
division boundaries to ensure that each division has as nearly as possible the same number of
registered voters;
(b) a provision allowing a property owner within the infrastructure financing district to
make recommendations, in proportion to the amount of the owner's property in relation to all
property within the infrastructure financing district, for individuals to serve as appointed board
members; and
(c) any other provisions or information that petition sponsors or the board considers
necessary or advisable for the governance of the infrastructure financing district.
(3) A governing document shall:
(a) include a description of infrastructure that the infrastructure financing district will
provide funding for;
(b) if applicable, include a copy of a development agreement that has been executed
relating to infrastructure to be developed within the boundary of the infrastructure financing
district and for which the infrastructure financing district anticipates providing funding; and
(c) if applicable, describe a designated expansion area.
(4) (a) An area may not be designated as a designated expansion area unless the area is
contiguous to the original district boundary.
(b) An area may not be annexed to an infrastructure financing district unless the area is
within the designated expansion area that is described in a governing document that is included
and submitted with the petition to create the infrastructure financing district.
Section 49. Section 
17B-2a-1304
 is enacted to read:
 17B-2a-1304.
Board of trustees -- Conflict of interest -- Compensation.
(1) A board member with a personal investment described in Section 
67-16-9
 is not in
violation of Section 
67-16-9
 if:
(a) before beginning service as a board member, the board member complies with the
disclosure requirements of Section 
67-16-7
, as though that section applied to the board
member's ownership of a personal investment described in Section 
67-16-9
; and
(b) during the board member's service, the board member complies with:
(i) the disclosure requirements of Section 
67-16-7
, as provided in Subsection (1)(a),
upon any significant change in the board member's personal investment; and
(ii) applicable requirements of this part and the governing document.
(2) An infrastructure financing district may not compensate a board member for the
member's service on the board unless the board member is a resident within the boundary of
the infrastructure financing district.
Section 50. Section 
17B-2a-1305
 is enacted to read:
 17B-2a-1305.
Relationship with other local entities.
(1) The applicability of local land use regulations under Title 10, Chapter 9a,
Municipal Land Use, Development, and Management Act, or Title 17, Chapter 27a, County
Land Use, Development, and Management Act, is not affected by:
(a) the creation or operation of an infrastructure financing district; or
(b) the infrastructure financing district's provision of funding for the development of
infrastructure within the infrastructure financing district boundary.
(2) The boundary of an infrastructure financing district is not affected by:
(a) a municipality's annexation of an unincorporated area of a county; or
(b) the adjustment of a boundary shared by more than one municipality.
(3) A debt, obligation, or other financial burden of an infrastructure financing district,
including any liability of or claim or judgment against an infrastructure financing district:
(a) is borne solely by the infrastructure financing district; and
(b) is not the debt, obligation, or other financial burden of any other political
subdivision of the state or of the state.
(4) (a) Nothing in this part affects the requirement for infrastructure for which an
infrastructure financing district provides funding to comply with all applicable standards and
design, inspection, and other requirements of the county or municipality with jurisdiction over
the infrastructure.
(b) Upon the completion of infrastructure for which an infrastructure financing district
has provided funding, the infrastructure shall be conveyed to the county or municipality with
jurisdiction over the infrastructure, at no cost to the county or municipality.
Section 51. Section 
17B-2a-1306
 is enacted to read:
 17B-2a-1306.
Contesting an infrastructure financing district action.
(1) As used in this section:
(a) "Contestable action" means:
(i) the creation of an infrastructure financing district or any part of the process to create
an infrastructure financing district;
(ii) a property tax levied by an infrastructure financing district or any part of the
process to levy the tax; or
(iii) a fee imposed by an infrastructure financing district or any part of the process to
impose the fee.
(b) "Effective date" means:
(i) with respect to the creation of an infrastructure financing district, the date of the
lieutenant governor's issuance of a certificate of creation under Section 
67-1a-6.5
;
(ii) with respect to a property tax levied by an infrastructure financing district, the date
of the board's adoption of a resolution levying the tax; and
(iii) for a fee imposed by an infrastructure financing district, the date of the board's
adoption of a resolution imposing the fee.
(2) (a) A person may file a court action to contest the legality or validity of a
contestable action.
(b) A court action under Subsection (2)(a) is the exclusive remedy for a person to
contest the legality or validity of a contestable action.
(3) A person may not bring an action under Subsection (2) or serve a summons relating
to the action more than 30 days after the effective date of the contestable action.
(4) After the expiration of the 30-day period stated in Subsection (3):
(a) a contestable action becomes incontestable against any person who has not brought
an action and served a summons within the time specified in Subsection (3); and
(b) a person may not bring an action to:
(i) enjoin an infrastructure financing district from levying and collecting a property tax
or imposing and collecting a fee that the infrastructure financing district levies or imposes; or
(ii) attack or question in any way the legality or validity of a contestable action.
(5) (a) This section does not affect a claim for a misuse of funds against the
infrastructure financing district or an officer or employee of the infrastructure financing district.
(b) A person may not seek relief for a claimed misuse of funds described in Subsection
(5)(a) except for injunctive relief.
(c) The limitation under Subsection (5)(b) does not affect the filing or prosecution of
criminal charges for the misuse of infrastructure financing district funds.
Section 52. Section 
20A-1-512
 is amended to read:
20A-1-512.
Midterm vacancies on local district boards -- Notice.
(1) (a) When a vacancy occurs on any special district board for any reason, the
following shall appoint a replacement to serve out the unexpired term in accordance with this
section:
(i) the special district board, if the person vacating the position was elected; or
(ii) the appointing authority, as that term is defined in Section 
17B-1-102
, if the
appointing authority appointed the person vacating the position.
(b) Except as provided in Subsection (1)(c) or (d), before acting to fill the vacancy, the
special district board or appointing authority shall:
(i) give public notice of the vacancy for at least two weeks before the special district
board or appointing authority meets to fill the vacancy by publishing the notice, as a class A
notice under Section 
63G-30-102
, for the special district; and
(ii) identify, in the notice:
(A) the date, time, and place of the meeting where the vacancy will be filled;
(B) the individual to whom an individual who is interested in an appointment to fill the
vacancy may submit the individual's name for consideration; and
(C) any submission deadline.
(c) An appointing authority is not subject to Subsection (1)(b) if:
(i) 
(A)
 the appointing authority appoints one of the appointing authority's own
members; and
[
(ii)
] 
(B)
 that member meets all applicable statutory board member qualifications[
.
]
; or
(ii) the vacancy is on the board of trustees of an infrastructure financing district with no
residents within the district's boundary.
(d) When a vacancy occurs on the board of a water conservancy district located in
more than one county:
(i) the board shall give notice of the vacancy to the county legislative bodies that
nominated the vacating trustee as provided in Section 
17B-2a-1005
;
(ii) the county legislative bodies described in Subsection (1)(d)(i) shall collectively
compile a list of three nominees to fill the vacancy; and
(iii) the governor shall, with the advice and consent of the Senate, appoint an
individual to fill the vacancy from nominees submitted as provided in Subsection
17B-2a-1005
(2)(c).
(2) If
, 90 days after a vacancy occurs,
 the special district board [
fails
] 
has failed
 to
appoint an individual to complete an elected board member's term [
within 90 days, the
legislative body of the county or municipality that created the special district shall fill
]
,
 the
vacancy 
shall be filled:
(a)
 in accordance with the procedure for a special district described in Subsection
(1)(b)[
.
]
; and
(b) by, as applicable:
(i) the legislative body of the county or municipality that created the special district; or
(ii) for a vacancy on a board of trustees of an infrastructure financing district, the
legislative body of the county whose unincorporated area contains or the municipality whose
boundary contains more of the area within the infrastructure financing district than is contained
within the unincorporated area of any other county or within the boundary of any other
municipality.
Section 53. Section 
52-4-207
 is amended to read:
52-4-207.
Electronic meetings -- Authorization -- Requirements.
(1) Except as otherwise provided for a charter school in Section 
52-4-209
, a public
body may convene and conduct an electronic meeting in accordance with this section.
(2) (a) A public body may not hold an electronic meeting unless the public body has
adopted a resolution, rule, or ordinance governing the use of electronic meetings.
(b) A resolution, rule, or ordinance described in Subsection (2)(a) that governs an
electronic meeting shall establish the conditions under which a remote member is included in
calculating a quorum.
(c) A resolution, rule, or ordinance described in Subsection (2)(a) may:
(i) prohibit or limit electronic meetings based on budget, public policy, or logistical
considerations;
(ii) require a quorum of the public body to:
(A) be present at a single anchor location for the meeting; and
(B) vote to approve establishment of an electronic meeting in order to include other
members of the public body through an electronic connection;
(iii) require a request for an electronic meeting to be made by a member of a public
body up to three days prior to the meeting to allow for arrangements to be made for the
electronic meeting;
(iv) restrict the number of separate connections for members of the public body that are
allowed for an electronic meeting based on available equipment capability;
(v) if the public body is statutorily authorized to allow a member of the public body to
act by proxy, establish the conditions under which a member may vote or take other action by
proxy; or
(vi) establish other procedures, limitations, or conditions governing electronic meetings
not in conflict with this section.
(3) A public body that convenes and conducts an electronic meeting shall:
(a) give public notice of the electronic meeting in accordance with Section 
52-4-202
;
(b) except for an electronic meeting described in Subsection (5), post written notice of
the electronic meeting at the anchor location; and
(c) except as otherwise provided in a rule of the Legislature applicable to the public
body, at least 24 hours before the electronic meeting is scheduled to begin, provide each
member of the public body a description of how to electronically connect to the meeting.
(4) (a) Except as provided in Subsection (5), a public body that convenes and conducts
an electronic meeting shall provide space and facilities at an anchor location for members of
the public to attend the open portions of the meeting.
(b) A public body that convenes and conducts an electronic meeting may provide
means by which members of the public may attend the meeting remotely by electronic means.
(5) Subsection (4)(a) does not apply to an electronic meeting if:
(a) (i) the chair of the public body determines that:
(A) conducting the meeting as provided in Subsection (4)(a) presents a substantial risk
to the health or safety of those present or who would otherwise be present at the anchor
location; or
(B) the location where the public body would normally meet has been ordered closed
to the public for health or safety reasons; and
(ii) the public notice for the meeting includes:
(A) a statement describing the chair's determination under Subsection (5)(a)(i);
(B) a summary of the facts upon which the chair's determination is based; and
(C) information on how a member of the public may attend the meeting remotely by
electronic means;
(b) (i) during the course of the electronic meeting, the chair:
(A) determines that continuing to conduct the electronic meeting as provided in
Subsection (4)(a) presents a substantial risk to the health or safety of those present at the
anchor location; and
(B) announces during the electronic meeting the chair's determination under Subsection
(5)(b)(i)(A) and states a summary of the facts upon which the determination is made; and
(ii) in convening the electronic meeting, the public body has provided means by which
members of the public who are not physically present at the anchor location may attend the
electronic meeting remotely by electronic means;
(c) (i) the public body is a special district board of trustees established under Title 17B,
Chapter 1, Part 3, Board of Trustees;
(ii) the board of trustees' membership consists of:
(A) at least two members who are elected or appointed to the board as owners of land,
or as an agent or officer of the owners of land, under the criteria described in Subsection
17B-1-302
(2)(b); or
(B) at least one member who is elected or appointed to the board as an owner of land,
or as an agent or officer of the owner of land, under the criteria described in Subsection
[
17B-1-302
(3)(a)(ii)
] 
17B-1-302
(3)(b)(ii)
;
(iii) the public notice required under Subsection 
52-4-202
(3)(a)(i)(B) for the electronic
meeting includes information on how a member of the public may attend the meeting remotely
by electronic means; and
(iv) the board of trustees allows members of the public attending the meeting by
remote electronic means to participate in the meeting; or
(d) (i) the public body is a special service district administrative control board
established under Title 17D, Chapter 1, Part 3, Administrative Control Board;
(ii) the administrative control board's membership consists of:
(A) at least one member who is elected or appointed to the board as an owner of land,
or as an agent or officer of the owner of land, under the criteria described in Subsection
17D-1-304
(1)(a)(iii)(A) or (B), as applicable; or
(B) members that qualify for election or appointment to the board because the owners
of real property in the special service district meet or exceed the threshold percentage described
in Subsection 
17D-1-304
(1)(b)(i);
(iii) the public notice required under Subsection 
52-4-202
(3)(a)(i)(B) for the electronic
meeting includes information on how a member of the public may attend the meeting remotely
by electronic means; and
(iv) the administrative control board allows members of the public attending the
meeting by remote electronic means to participate in the meeting.
(6) A determination under Subsection (5)(a)(i) expires 30 days after the day on which
the chair of the public body makes the determination.
(7) Compliance with the provisions of this section by a public body constitutes full and
complete compliance by the public body with the corresponding provisions of Sections
52-4-201
 and 
52-4-202
.
(8) Unless a public body adopts a resolution, rule, or ordinance described in Subsection
(2)(c)(v), a public body that is conducting an electronic meeting may not allow a member to
vote or otherwise act by proxy.
(9) Except for a unanimous vote, a public body that is conducting an electronic
meeting shall take all votes by roll call.
Section 54. 
Effective date.
This bill takes effect on May 1, 2024.