Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 241 (2025GS)

Sponsor

Sen. Stevenson, Jerry W.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms and modifies definitions;
• provides that a property owner special district may pledge all or a portion of revenue collected from an impact fee or other fee toward payment of a general obligation bond;
• authorizes a basic special district to create a public infrastructure district;
• authorizes a basic special district to fund:
• the acquisition and construction of certain facilities; and
• affordable housing projects;
• modifies requirements for determining consent of surface property owners within a public infrastructure district;
• modifies provisions related to the appointment or election of board members for a public infrastructure district;
• modifies provisions related to the annexation of property to, or withdrawal of property from, a public infrastructure district;
• provides that a public entity or private person may not receive funds from any portion of a public infrastructure district's property tax revenue without a resolution of the public infrastructure district's board authorizing the public entity or private person to receive the funds;
• modifies the process for a public infrastructure district to issue a bond; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

74
11-42-106
11-42-408
11-42a-102
17B-1-304
17B-1-1102
17B-1-1404
17D-4-103
17D-4-104
17D-4-201
17D-4-202
17D-4-203
17D-4-204
17D-4-301
17D-4-302
17D-4-303
17D-4-305
67-1a-6.5
17D-4-102
11
10
Limited Purpose Local Government Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor: Paul A. Cutler
LONG TITLE
General Description:
This bill modifies provisions affecting special districts.
Highlighted Provisions:
This bill:
defines terms and modifies definitions;
provides that a property owner special district may pledge all or a portion of revenue 
collected from an impact fee or other fee toward payment of a general obligation bond;
authorizes a basic special district to create a public infrastructure district;
authorizes a basic special district to fund:
the acquisition and construction of certain facilities; and 
affordable housing projects;
modifies requirements for determining consent of surface property owners within a public 
infrastructure district;
modifies provisions related to the appointment or election of board members for a public 
infrastructure district;
modifies provisions related to the annexation of property to, or withdrawal of property 
from, a public infrastructure district;
provides that a public entity or private person may not receive funds from any portion of a 
public infrastructure district's property tax revenue without a resolution of the public 
infrastructure district's board authorizing the public entity or private person to receive 
the funds;
modifies the process for a public infrastructure district to issue a bond; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
11-42-106
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Chapter 388
11-42-408
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2017, 
Chapter 470
11-42a-102
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 
2024, Chapters 42, 53 and 438
17B-1-304
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapters 15, 435
17B-1-1102
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 
2023, Chapter 15
17D-4-102
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Chapter 419
17D-4-103
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapter 15
17D-4-201
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapters 12, 15 and 259
17D-4-202
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2021, 
Chapters 64, 415 and renumbered and amended by Laws of Utah 2021, Chapter 314
17D-4-203
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapters 15, 259
17D-4-204
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapter 15
17D-4-301
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2023, 
Chapters 15, 139
17D-4-302
, 
Effective 
upon governor's approval
 as renumbered and amended by Laws 
of Utah 2021, Chapter 314
17D-4-303
, 
Effective 
upon governor's approval
 as renumbered and amended by Laws 
of Utah 2021, Chapter 314
17D-4-305
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Chapter 158
67-1a-6.5
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Chapter 388
ENACTS:
17B-1-1404
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
17D-4-104
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
11-42-106
 is amended to read:
11-42-106
Effective 
upon governor's approval
. 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:
(A)
the designation resolution, assessment resolution, or amended resolution was 
adopted by a development authority, an infrastructure financing district under 
Title 17B, Chapter 2a, Part 13, Infrastructure Financing 
Districts
District
, 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 2, Section 
11-42-408
 is amended to read:
11-42-408
Effective 
upon governor's approval
. Assessment against government 
land prohibited -- Exception.
(1)
(a)
Except as provided in Subsection 
(2)
, a local entity may not levy an assessment 
against property owned by the federal government or a public agency, even if the 
property benefits from the improvement.
(b)
Notwithstanding Subsection 
(1)(a)
, a public agency may contract with a local entity:
(i)
for the local entity to provide an improvement to property owned by the public 
agency; and
(ii)
to pay for the improvement provided by the local entity.
(c)
Nothing in this section may be construed to prevent a local entity from imposing on 
and collecting from a public agency, or a public agency from paying, a reasonable 
charge for a service rendered or material supplied by the local entity to the public 
agency, including a charge for water, sewer, or lighting service.
(2)
Notwithstanding Subsection 
(1)
:
(a)
(i)
a local entity may continue to levy and enforce an assessment against property 
acquired by a public agency within an assessment area if the acquisition occurred 
after the assessment area was designated; and
(b)
(ii)
property that is subject to an assessment lien at the time it is acquired by a 
public agency continues to be subject to the lien and to enforcement of the lien if 
the assessment and interest on the assessment are not paid when due
.
; or
(b)
a local entity may levy and enforce an assessment against property owned by the 
federal government or a public agency if the federal government or public agency, as 
applicable, consents in writing to the local entity levying the assessment.
Section 3, Section 
11-42a-102
 is amended to read:
11-42a-102
Effective 
upon governor's approval
. Definitions.
(1)
"Air quality standards" means that a vehicle's emissions are equal to or cleaner than the 
standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
(2)
(a)
"Assessment" means the assessment that a local entity or the C-PACE district 
levies on private property under this chapter to cover the costs of an energy 
efficiency upgrade, a clean energy system, or an electric vehicle charging 
infrastructure.
(b)
"Assessment" does not constitute a property tax but shares the same priority lien as a 
property tax.
(3)
"Assessment fund" means a special fund that a local entity establishes under Section 
11-42a-206
.
(4)
"Benefitted property" means private property within an energy assessment area that 
directly benefits from improvements.
(5)
"Bond" means an assessment bond and a refunding assessment bond.
(6)
(a)
"Clean energy system" means an energy system that:
(i)
produces energy from clean resources, including:
(A)
a photovoltaic system;
(B)
a solar thermal system;
(C)
a wind system;
(D)
a geothermal system, including a generation system, a direct-use system, or a 
ground source heat pump system;
(E)
a micro-hydro system;
(F)
a biofuel system;
(G)
energy derived from nuclear fuel; or
(H)
any other clean source system that the governing body of the local entity 
approves;
 or
(ii)
stores energy, including:
(A)
a battery storage system; or
(B)
any other energy storing system that the governing body or chief executive 
officer of a local entity approves.
(b)
"Clean energy system" includes any improvement that relates physically or 
functionally to any of the products, systems, or devices listed in Subsection (6)(a)(i) 
or (ii).
(c)
"Clean energy system" does not include a system described in Subsection (6)(a)(i) if 
the system provides energy to property outside the energy assessment area, unless the 
system:
(i)
(A)
existed before the creation of the energy assessment area; and
(B)
beginning before January 1, 2017, provides energy to property outside of the 
area that became the energy assessment area;
(ii)
provides energy to property outside the energy assessment area under an 
agreement with a public electrical utility that is substantially similar to agreements 
for other renewable energy systems that are not funded under this chapter; or
(iii)
is a biofuel system.
(7)
(a)
"Commercial or industrial real property" means private 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)
agricultural;
(iv)
industrial;
(v)
manufacturing;
(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:
(i)
private real property that is used as or held for dwelling purposes and contains:
(A)
more than four rental units; or
(B)
one or more owner-occupied or rental condominium units affiliated with a 
hotel; and
(ii)
real property owned by:
(A)
the military installation development authority, created in Section 
63H-1-201
; 
or
(B)
the Utah Inland Port Authority, created in Section 
11-58-201
.
(8)
"Contract price" means:
(a)
up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an 
improvement, as determined by the owner of the property benefitting from the 
improvement; or
(b)
the amount payable to one or more contractors for the assessment, design, 
engineering, inspection, and construction of an improvement.
(9)
"C-PACE" means commercial property assessed clean energy.
(10)
"C-PACE district" means the statewide authority established in Section 
11-42a-106
 to 
implement the C-PACE Act in collaboration with governing bodies, under the direction 
of OED.
(11)
"Electric vehicle charging infrastructure" means equipment that is:
(a)
permanently affixed to commercial or industrial real property; and
(b)
designed to deliver electric energy to a qualifying electric vehicle or a qualifying 
plug-in hybrid vehicle.
(12)
"Energy assessment area" means an area:
(a)
within the jurisdictional boundaries of a local entity that approves an energy 
assessment area or, if the C-PACE district or a state interlocal entity levies the 
assessment, the C-PACE district or the state interlocal entity;
(b)
containing only the commercial or industrial real property of owners who have 
voluntarily consented to an assessment under this chapter for the purpose of 
financing the costs of improvements that benefit property within the energy 
assessment area; and
(c)
in which the proposed benefitted properties in the area are:
(i)
contiguous; or
(ii)
located on one or more contiguous or adjacent tracts of land that would be 
contiguous or adjacent property but for an intervening right-of-way, including a 
sidewalk, street, road, fixed guideway, or waterway.
(13)
"Energy assessment bond" means a bond:
(a)
issued under Section 
11-42a-401
; and
(b)
payable in part or in whole from assessments levied in an energy assessment area.
(14)
"Energy assessment lien" means a lien on property within an energy assessment area 
that arises from the levy of an assessment in accordance with Section 
11-42a-301
.
(15)
"Energy assessment ordinance" means an ordinance that a local entity adopts under 
Section 
11-42a-201
 that:
(a)
designates an energy assessment area;
(b)
levies an assessment on benefitted property within the energy assessment area; and
(c)
if applicable, authorizes the issuance of energy assessment bonds.
(16)
"Energy assessment resolution" means one or more resolutions adopted by a local 
entity under Section 
11-42a-201
 that:
(a)
designates an energy assessment area;
(b)
levies an assessment on benefitted property within the energy assessment area; and
(c)
if applicable, authorizes the issuance of energy assessment bonds.
(17)
"Energy efficiency upgrade" means an improvement that is:
(a)
permanently affixed to commercial or industrial real property; and
(b)
designed to reduce energy or water consumption, including:
(i)
insulation in:
(A)
a wall, roof, floor, or foundation; or
(B)
a heating and cooling distribution system;
(ii)
a window or door, including:
(A)
a storm window or door;
(B)
a multiglazed window or door;
(C)
a heat-absorbing window or door;
(D)
a heat-reflective glazed and coated window or door;
(E)
additional window or door glazing;
(F)
a window or door with reduced glass area; or
(G)
other window or door modifications;
(iii)
an automatic energy control system;
(iv)
in a building or a central plant, a heating, ventilation, or air conditioning and 
distribution system;
(v)
caulk or weatherstripping;
(vi)
a light fixture that does not increase the overall illumination of a building, unless 
an increase is necessary to conform with the applicable building code;
(vii)
an energy recovery system;
(viii)
a daylighting system;
(ix)
measures to reduce the consumption of water, through conservation or more 
efficient use of water, including installation of:
(A)
low-flow toilets and showerheads;
(B)
timer or timing systems for a hot water heater; or
(C)
rain catchment systems;
(x)
a modified, installed, or remodeled fixture that is approved as a utility cost-saving 
measure by the governing body or executive of a local entity;
(xi)
measures or other improvements to effect seismic upgrades;
(xii)
structures, measures, or other improvements to provide automated parking or 
parking that reduces land use;
(xiii)
the extension of an existing natural gas distribution company line;
(xiv)
an energy efficient elevator, escalator, or other vertical transport device;
(xv)
any other improvement that the governing body or executive of a local entity 
approves as an energy efficiency upgrade; or
(xvi)
any improvement that relates physically or functionally to any of the 
improvements listed in Subsections (17)(b)(i) through (xv).
(18)
"Energy system" means a product, system, device, or interacting group of devices that:
(a)
produces or stores energy; and
(b)
is permanently affixed to commercial or industrial real property not located in the 
certified service area of a distribution electrical cooperative, as defined in Section 
54-2-1
.
(19)
"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)
if no administrative control board has been appointed under Section 
17D-1-301
, 
the legislative body of the county, city, town, or metro township that established 
the special service district; or
(ii)
if an administrative control board has been appointed under Section 
17D-1-301
, 
the administrative control board of the special service district;
(d)
for a public infrastructure district, the board of the public infrastructure district;
(d)
(e)
for the military installation development authority created in Section 
63H-1-201
, 
the board, as that term is defined in Section 
63H-1-102
; and
(e)
(f)
for the Utah Inland Port Authority, created in Section 
11-58-201
, the board, as 
defined in Section 
11-58-102
.
(20)
"Improvement" means a publicly or privately owned energy efficiency upgrade, clean 
energy system, or electric vehicle charging infrastructure that:
(a)
a property owner has requested; or
(b)
has been or is being installed on a property for the benefit of the property owner.
(21)
"Incidental refunding costs" means any costs of issuing a refunding assessment bond 
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, and 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 bond 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 a refunding assessment bond; and
(g)
any interest on the prior bonds that is required to be paid in connection with the 
issuance of the refunding assessment bond.
(22)
"Installment payment date" means the date on which an installment payment of an 
assessment is payable.
(23)
"Jurisdictional boundaries" means:
(a)
for the C-PACE district or any state interlocal entity, the boundaries of the state; and
(b)
for each local entity, the boundaries of the local entity.
(24)
(a)
"Local entity" means:
(i)
a county, city, or town;
(ii)
a special service district, a special district, or an interlocal entity as that term is 
defined in Section 
11-13-103
;
(iii)
a public infrastructure district, created under Title 17D, Chapter 4, Public 
Infrastructure District Act;
(iii)
(iv)
a state interlocal entity;
(iv)
(v)
the military installation development authority, created in Section 
63H-1-201
;
(v)
(vi)
the Utah Inland Port Authority, created in Section 
11-58-201
; or
(vi)
(vii)
any political subdivision of the state.
(b)
"Local entity" includes the C-PACE district solely in connection with:
(i)
the designation of an energy assessment area;
(ii)
the levying of an assessment; and
(iii)
the assignment of an energy assessment lien to a third-party lender under Section 
11-42a-302
.
(25)
"Local entity obligations" means energy assessment bonds and refunding assessment 
bonds that a local entity issues.
(26)
"OED" means the Office of Energy Development created in Section 
79-6-401
.
(27)
"OEM vehicle" means the same as that term is defined in Section 
19-1-402
.
(28)
"Overhead costs" means the actual costs incurred or the estimated costs to be incurred 
in connection with an energy assessment area, including:
(a)
appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
(b)
underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
(c)
publishing and mailing costs;
(d)
costs of levying an assessment;
(e)
recording costs; and
(f)
all other incidental costs.
(29)
"Parameters resolution" means a resolution or ordinance that a local entity adopts in 
accordance with Section 
11-42a-201
.
(30)
"Prior bonds" means the energy assessment bonds refunded in part or in whole by a 
refunding assessment bond.
(31)
"Prior energy assessment ordinance" means the ordinance levying the assessments 
from which the prior bonds are payable.
(32)
"Prior energy assessment resolution" means the resolution levying the assessments 
from which the prior bonds are payable.
(33)
"Property" includes real property and any interest in real property, including water 
rights and leasehold rights.
(34)
"Public electrical utility" means a large-scale electric utility as that term is defined in 
Section 
54-2-1
.
(35)
"Qualifying electric vehicle" means a vehicle that:
(a)
meets air quality standards;
(b)
is not fueled by natural gas;
(c)
draws propulsion energy from a battery with at least 10 kilowatt hours of capacity; 
and
(d)
is an OEM vehicle except that the vehicle is fueled by a fuel described in Subsection 
(35)(c).
(36)
"Qualifying plug-in hybrid vehicle" means a vehicle that:
(a)
meets air quality standards;
(b)
is not fueled by natural gas or propane;
(c)
has a battery capacity that meets or exceeds the battery capacity described in 
Subsection 30D(b)(3), Internal Revenue Code; and
(d)
is fueled by a combination of electricity and:
(i)
diesel fuel;
(ii)
gasoline; or
(iii)
a mixture of gasoline and ethanol.
(37)
"Reduced payment obligation" means the full obligation of an owner of property 
within an energy assessment area to pay an assessment levied on the property after the 
local entity has reduced the assessment because of the issuance of a refunding 
assessment bond, in accordance with Section 
11-42a-403
.
(38)
"Refunding assessment bond" means an assessment bond that a local entity issues 
under Section 
11-42a-403
 to refund, in part or in whole, energy assessment bonds.
(39)
"Special district" means a special district under Title 17B, Limited Purpose Local 
Government Entities - Special Districts.
(40)
"Special service district" means the same as that term is defined in Section 
17D-1-102
.
(41)
"State interlocal entity" means:
(a)
an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or 
more counties, cities, or towns that collectively represent at least a majority of the 
state's population; or
(b)
an entity that another state authorized, before January 1, 2017, to issue bonds, notes, 
or other obligations or refunding obligations to finance or refinance projects in the 
state.
(42)
"Third-party lender" means a trust company, savings bank, savings and loan 
association, bank, credit union, or any other entity that provides loans directly to 
property owners for improvements authorized under this chapter.
Section 4, Section 
17B-1-304
 is amended to read:
17B-1-304
Effective 
upon governor's approval
. Appointment procedures for 
appointed members -- Notice of vacancy.
(1)
The appointing authority may, by resolution, appoint persons to serve as members of a 
special district board by following the procedures established by this section.
(2)
(a)
In any calendar year when appointment of a new special district board member is 
required, the appointing authority shall prepare a notice of vacancy that contains:
(i)
the positions that are vacant that shall be filled by appointment;
(ii)
the qualifications required to be appointed to those positions;
(iii)
the procedures for appointment that the governing body will follow in making 
those appointments; and
(iv)
the person to be contacted and any deadlines that a person shall meet who wishes 
to be considered for appointment to those positions.
(b)
The appointing authority shall publish the notice of vacancy for the special district, 
as a class A notice under Section 
63G-30-102
, for at least one month before the 
deadline for accepting nominees for appointment.
(c)
The appointing authority may bill the special district for the cost of preparing, 
printing, and publishing the notice.
(3)
(a)
After the appointing authority is notified of a vacancy and has satisfied the 
requirements described in Subsection 
(2)
, the appointing authority shall select a 
person to fill the vacancy from the applicants who meet the qualifications established 
by law.
(b)
The appointing authority shall:
(i)
comply with 
Title 52, Chapter 4, Open and Public Meetings Act
, in making the 
appointment;
(ii)
allow any interested persons to be heard; and
(iii)
adopt a resolution appointing a person to the special district board.
(c)
If no candidate for appointment to fill the vacancy receives a majority vote of the 
appointing authority, the appointing authority shall select the appointee from the two 
top candidates by lot.
(4)
Persons appointed to serve as members of the special district board serve four-year 
terms, but may be removed for cause at any time after a hearing by two-thirds vote of 
the appointing body.
(5)
(a)
At the end of each board member's term, the position is considered vacant, and, 
after following the appointment procedures established in this section, the appointing 
authority may either reappoint the incumbent board member or appoint a new 
member.
(b)
Notwithstanding Subsection 
(5)(a)
, a board member may continue to serve until a 
successor is elected or appointed and qualified in accordance with Subsection 
17B-1-303(2)(b)
.
(6)
Notwithstanding any other provision of this section, if the appointing authority appoints 
one of its own members and that member meets all applicable statutory board member 
qualifications, the appointing authority need not comply with Subsection 
(2)
 or 
(3)
.
(7)
(a)
This section does not apply to the appointment of a member of a public 
infrastructure district board.
(b)
Section 
17D-4-202
 governs the appointment process for a member of the board of a 
public infrastructure district.
Section 5, Section 
17B-1-1102
 is amended to read:
17B-1-1102
Effective 
upon governor's approval
. General obligation bonds.
(1)
Except as provided in Subsections 
(3)
 and 
(7)
, if a district intends to issue general 
obligation bonds, the district shall first obtain the approval of district voters for issuance 
of the bonds at an election held for that purpose as provided in 
Title 11, Chapter 14, 
Local Government Bonding Act
.
(2)
General obligation bonds shall be secured by a pledge of the full faith and credit of the 
district, subject to, for a water conservancy district, the property tax levy limits of 
Section 
17B-2a-1006
.
(3)
A district may issue refunding general obligation bonds, as provided in 
Title 11, 
Chapter 27, Utah Refunding Bond Act
, without obtaining voter approval.
(4)
(a)
A special district may not issue general obligation bonds if the issuance of the 
bonds will cause the outstanding principal amount of all of the district's general 
obligation bonds to exceed the amount that results from multiplying the fair market 
value of the taxable property within the district, as determined under Subsection 
11-14-301(3)(b)
, by a number that is:
(i)
.05, for a basic special district, except as provided in Subsection 
(7)
;
(ii)
.004, for a cemetery maintenance district;
(iii)
.002, for a drainage district;
(iv)
.004, for a fire protection district;
(v)
.024, for an improvement district;
(vi)
.1, for an irrigation district;
(vii)
.1, for a metropolitan water district;
(viii)
.0004, for a mosquito abatement district;
(ix)
.03, for a public transit district;
(x)
.12, for a service area; or
(xi)
.05 for a municipal services district.
(b)
Bonds or other obligations of a special district that are not general obligation bonds 
are not included in the limit stated in Subsection 
(4)(a)
.
(5)
A district may not be considered to be a municipal corporation for purposes of the debt 
limitation of the 
Utah Constitution, Article XIV, Section 4.
(6)
Bonds issued by an administrative or legal entity created under 
Title 11, Chapter 13, 
Interlocal Cooperation Act
, may not be considered to be bonds of a special district that 
participates in the agreement creating the administrative or legal entity.
(7)
(a)
As used in this Subsection 
(7)
, "property owner district" means a special district 
whose board members are elected by property owners, as provided in Subsection 
17B-1-1402(1)(b)
.
(b)
A property owner district may issue a general obligation bond with the consent of:
(i)
the owners of all property within the district; and
(ii)
all registered voters, if any, within the boundary of the district.
(c)
A property owner district may use proceeds from a bond issued under this Subsection 
(7)
 to fund:
(i)
the acquisition and construction of a system or improvement authorized in
:
(A)
the district's creation resolution; 
and
or
(B)
Part 14, Basic Special District; and
(ii)
a connection outside the boundary of the district between systems or 
improvements within the boundary of the district.
(d)
(i)
The consent under Subsection 
(7)(b)
 is sufficient for any requirement necessary 
for the issuance of a general obligation bond.
(ii)
Beginning on the effective date of this bill, once consent is obtained under 
Subsection 
(7)(b)
, the consent is valid for a period of 10 years.
(e)
A general obligation bond issued under this Subsection 
(7)
:
(i)
shall mature no later than 40 years after the date of issuance; and
(ii)
is not subject to the limit under Subsection 
(4)(a)(i)
.
(f)
(i)
A property owner district may not issue a general obligation bond under this 
Subsection 
(7)
 if the issuance will cause the outstanding principal amount of all 
the district's general obligation bonds to exceed one-half of the market value of all 
real property within the district.
(ii)
Market value under Subsection 
(7)(f)(i)
 shall:
(A)
be based on the value that the real property will have after all improvements 
financed by the general obligation bonds are constructed; and
(B)
be determined by appraisal by an appraiser who is a member of the Appraisal 
Institute.
(g)
With respect to a general obligation bond issued under this Subsection 
(7)
, the board 
of a property owner district may
 approve or
, by resolution, delegate to one or more 
officers of the district, the authority to:
(i)
approve the final interest rate, price, principal amount, maturity, redemption 
features, and other terms of the bond;
(ii)
approve and execute a document relating to the issuance of the bond; and
(iii)
approve a contract
, including a contract with a property owner within the district,
related to the acquisition and construction of an improvement, facility, or property 
to be financed with proceeds from the bond.
(h)
(i)
A person may commence a lawsuit or other proceeding to contest the legality 
of the issuance of a general obligation bond issued under this Subsection 
(7)
 or 
any provision relating to the security or payment of the bond if the lawsuit or 
other proceeding is commenced within 30 days after the publication of:
(A)
the resolution authorizing the issuance of the general obligation bond; or
(B)
a notice of the bond issuance containing substantially the items required under 
Subsection 
11-14-316(2)
.
(ii)
Following the period described in Subsection 
(7)(h)(i)
, no person may bring a 
lawsuit or other proceeding to contest for any reason the regularity, formality, or 
legality of a general obligation bond issued under this Subsection 
(7)
.
(i)
(i)
A property owner district that charges and collects an impact fee or other fee 
on real property 
at the time the real property is sold may proportionally pay down 
a general obligation bond issued under this Subsection 
(7)
 from the money 
collected from the impact fee or other fee
may pledge all or a portion of the 
revenue collected from the impact fee or other fee toward payment of a general 
obligation bond issued under this Subsection 
(7)
.
(ii)
A property owner district that proportionally pays down a general obligation 
bond under Subsection 
(7)(i)(i)
 shall reduce the property tax rate on the parcel of 
real property on which the district charged and collected an impact fee or other 
charge, to reflect the amount of outstanding principal of a general obligation bond 
issued under this Subsection 
(7)
 that was paid down and is attributable to that 
parcel.
(j)
If a property owner fails to pay a property tax that the property owner district imposes 
in connection with a general obligation bond issued under this Subsection 
(7)
, the 
district may impose a property tax penalty at an annual rate of .07, in addition to any 
other penalty allowed by law.
Section 6, Section 
17B-1-1404
 is enacted to read:
17B-1-1404
Effective 
upon governor's approval
. Basic special district 
authorized to create a public infrastructure district -- Basic special district authorized to 
fund certain projects and services.
(1)
(a)
As used in this section, "eligible basic special district" means a basic special 
district:
(i)
created before April 15, 2011;
(ii)
that issued limited general obligation bonds in 2024; and
(iii)
for which there was not one or more public infrastructure districts within the 
boundaries of the basic special district as of January 1, 2025. 
(2)
(a)
Subject to Subsection (3), an eligible basic special district may create a public 
infrastructure district, in accordance with Title 17D, Chapter 4, Public Infrastructure 
District Act, for any area located within the boundaries of the eligible basic special 
district.
(b)
An eligible basic special district that creates a public infrastructure district is the 
creating entity for purposes of Title 17D, Chapter 4, Public Infrastructure District Act, 
and shall receive any petitions required to be submitted to a creating entity.
(3)
When a public infrastructure district is created pursuant to this section:
(a)
the public infrastructure district shall have the same powers as the eligible basic 
special district that is the public infrastructure district's creating entity; and
(b)
upon creation of the public infrastructure district, the area within the public 
infrastructure district shall automatically be withdrawn from the eligible basic special 
district and shall no longer be part of the eligible basic special district.
(4)
In addition to the requirements of Section 
17D-4-202
, an eligible basic special district 
shall ensure that the governing document for a public infrastructure district created 
under this section provides for the election of the initial and future boards of the public 
infrastructure district using the same method as the election of the board of the eligible 
basic special district.
(5)
In addition to the other powers described in this part, an eligible basic special district 
may:
(a)
fund, in whole or in part, the acquisition and construction of a public facility for use 
by one or more government entities;
(b)
transfer the eligible basic special district's ownership interest in a public facility to 
another political subdivision pursuant to a written agreement between the eligible 
basic special district and the receiving political subdivision; and
(c)
fund, in whole or in part, the acquisition or construction of:
(i)
privately owned affordable housing, consisting of single-family dwellings or 
townhomes;
(ii)
facilities for health care, recreation, community arts, or an amphitheater, whether 
those facilities are publicly or privately owned; and
(iii)
a privately owned grocery store, if there is not a grocery store located within the 
eligible basic special district's boundary.
Section 7, Section 
17D-4-102
 is amended to read:
17D-4-102
Effective 
upon governor's approval
. Definitions.
As used in this chapter:
(1)
"Board" means the board of trustees of a public infrastructure district.
(2)
"Creating entity" means the county, municipality, 
basic special district, 
or development 
authority that approves the creation of a public infrastructure district.
(3)
"Development authority" means:
(a)
the Utah Inland Port Authority created in Section 
11-58-201
;
(b)
the Point of the Mountain State Land Authority created in Section 
11-59-201
;
(c)
the Utah Fairpark Area Investment and Restoration District created in Section 
11-70-201
; or
(d)
the military installation development authority created in Section 
63H-1-201
.
(4)
"District applicant" means the person proposing the creation of a public infrastructure 
district.
(5)
"Division" means a division of a public infrastructure district:
(a)
that is relatively equal in number of eligible voters or potential eligible voters to all 
other divisions within the public infrastructure district, taking into account existing or 
potential developments which, when completed, would increase or decrease the 
population within the public infrastructure district; and
(b)
which a member of the board represents.
(6)
"Governing document" means the document governing a public infrastructure district to 
which the creating entity agrees before the creation of the public infrastructure district, 
as amended from time to time, and subject to the limitations of Title 17B, Chapter 1, 
Provisions Applicable to All Special Districts, and this chapter.
(7)
(a)
"Limited tax bond" means a bond:
(i)
that is directly payable from and secured by ad valorem property taxes that are 
levied:
(A)
by a public infrastructure district that issues the bond; and
(B)
on taxable property within the district;
(ii)
that is a general obligation of the public infrastructure district; and
(iii)
for which the ad valorem property tax levy for repayment of the bond does not 
exceed the property tax levy rate limit established under Section 
17D-4-303
 for 
any fiscal year, except as provided in Subsection 
17D-4-301
(8)
17D-4-301(13)
.
(b)
"Limited tax bond" does not include:
(i)
a short-term bond;
(ii)
a tax and revenue anticipation bond; or
(iii)
a special assessment bond.
(8)
(a)
"Municipal advisor" means a person that:
(i)
advises a political subdivision on matters related to the issuance of bonds by 
governmental entities, including the pricing, sales, and marketing of bonds and the 
procuring of bond ratings, credit enhancement, and insurance with respect to 
bonds;
(ii)
is qualified to provide the advice described in Subsection 
(8)(a)(i)
;
(iii)
is not an officer or employee of the political subdivision receiving advice;
(iv)
has not been engaged to provide underwriting services in connection with a 
transaction in which the person will provide advice to the political subdivision; and
(v)
has experience doing business related to the issuance of bonds in the state.
(b)
"Municipal advisor" may include:
(i)
an individual who meets the description in Subsection 
(8)(a)
; or
(ii)
a firm of individuals who collectively meet the description in Subsection 
(8)(a)
.
(9)
(a)
"Public infrastructure and improvements" means:
(i)
infrastructure, utilities, improvements, facilities, buildings, or remediation that:
(A)
benefit the public and are owned by a public entity or a public or private 
utility;
(B)
benefit the public and are publicly maintained or operated by a public entity; or
(C)
are privately owned and are expressly permitted to be acquired or financed by 
the public infrastructure district's governing document or an agreement 
between the public infrastructure district and the public infrastructure district's 
creating entity; and
(ii)
publicly or privately owned roads, rights-of-way, trails, parking, or parking 
structures.
(b)
"Public infrastructure and improvements" also means:
(a)
(i)
the same as that term is defined in Section 
11-58-102
, for a public 
infrastructure district created by the Utah Inland Port Authority created in Section 
11-58-201
;
(b)
(ii)
the same as that term is defined in Section 
11-70-101
, for a public 
infrastructure district created by the Utah Fairpark Area Investment and 
Restoration District created in Section 
11-70-201
; 
and
(c)
(iii)
the same as that term is defined in Section 
63H-1-102
, for a public 
infrastructure district created by the military installation development authority 
created in Section 
63H-1-201
.
;
(iv)
for any public infrastructure district created by a development authority, any 
infrastructure, utilities, improvements, facilities, buildings, or remediation that are 
privately owned and benefit the public; and
(v)
for a public infrastructure district to which tax increment revenue is pledged or 
distributed, any publicly or privately owned infrastructure, utilities, 
improvements, facilities, buildings, or remediation that is a permitted use of the 
tax increment revenue.
(10)
(a)
"Tax increment revenue" means the difference between the tax revenue 
generated from or within a specific area and the revenue that would be generated if a 
base taxable value were used.
(b)
"Tax increment revenue" includes any concept substantially the same as the 
definition in Subsection 
(10)(a)
, regardless of the name of the concept.
Section 8, Section 
17D-4-103
 is amended to read:
17D-4-103
Effective 
upon governor's approval
. Provisions applicable to public 
infrastructure districts.
(1)
A public infrastructure district:
(a)
is a body corporate and politic with perpetual succession;
(b)
is a quasi-municipal corporation;
(c)
is a political subdivision of the state;
(d)
is separate and distinct from, and independent of, any other public entity or political 
subdivision of the state; and
(e)
may sue and be sued.
(2)
Each public infrastructure district is governed by and has the powers stated in:
(a)
this chapter; and
(b)
Title 17B, Chapter 1, Provisions Applicable to All Special Districts
.
(2)
(3)
This chapter applies only to a public infrastructure district.
(3)
(4)
Except as modified or exempted by this chapter, a public infrastructure district is
,
:
(a)
to the same extent as if the public infrastructure district were a special district, 
subject to the provisions in:
(a)
(i)
Title 17B, Chapter 1, Provisions Applicable to All Special Districts
; and
(b)
(ii)
Title 20A, Election Code
.
; and
(b)
subject to the provisions in Title 11, Chapter 42a, Commercial Property Assessed 
Clean Energy Act.
(4)
(5)
If there is a conflict between a provision in 
Title 17B, Chapter 1, Provisions 
Applicable to All Special Districts
, and a provision in this chapter, the provision in this 
chapter supersedes the conflicting provision in 
Title 17B, Chapter 1, Provisions 
Applicable to All Special Districts
.
(5)
(6)
The annexation of an unincorporated area by a municipality or the adjustment of a 
boundary shared by more than one municipality does not affect the boundaries of a 
public infrastructure district.
Section 9, Section 
17D-4-104
 is enacted to read:
17D-4-104
Effective 
upon governor's approval
. Conditions where property 
owner consent is not required.
Any provision of this chapter requiring the consent or signatures of 100% of surface 
property owners within an applicable area, the consent of any public entity, utility provider, or 
owners' association that is a property owner within an applicable area is not required if the 
public entity, utility provider, or owners' association ownership interest within the applicable 
area is limited to:
(1)
an easement;
(2)
a right-of-way; or
(3)
a public improvement, utility improvement, or related improvement.
Section 10, Section 
17D-4-201
 is amended to read:
17D-4-201
Effective 
upon governor's approval
. Creation -- Annexation or 
withdrawal of property.
(1)
(a)
Except as provided in Subsection 
(1)(b)
, Subsection 
(2)
, and in addition to the 
provisions regarding creation of a special district in 
Title 17B, Chapter 1, Provisions 
Applicable to All Special Districts
, a public infrastructure district may not be created 
unless
:
(i)
if there are any registered voters within the applicable area, a petition is filed with 
the creating entity that contains the signatures of 100% of registered voters within 
the applicable area approving the creation of the public infrastructure district; and
(ii)
a petition is filed with the creating entity that contains the signatures of 100% 
of surface property owners within the applicable area consenting to the creation of 
the public infrastructure district.
(b)
(i)
As used in this Subsection 
(1)(b)
:
(A)
"Military 
Land
land
" means the same as that term is defined in Section 
63H-1-102
.
(B)
"Project area" means the same as that term is defined in Section 
63H-1-102
.
(ii)
Notwithstanding 
Title 17B, Chapter 1, Part 2, Creation of a Special District
, and 
any other provision of this chapter, a development authority may adopt a 
resolution creating a public infrastructure district if all owners of surface property 
proposed to be included within the public infrastructure district consent in writing 
to the creation of the public infrastructure district.
(iii)
For purposes of Subsection 
(1)(b)(ii)
, if the surface property proposed to be 
included within the public infrastructure district includes military land that is 
within a project area, the owner of the military land within the project area is the 
lessee of the military land.
(iv)
A public infrastructure district created under Subsection 
(1)(b)(ii)
 may be created 
as a subsidiary of the development authority that adopts the resolution creating the 
public infrastructure district.
(2)
(a)
The following do not apply to the creation of a public infrastructure district:
(i)
Section 
17B-1-203
;
(ii)
Section 
17B-1-204
;
(iii)
Subsection 
17B-1-208(2)
;
(iv)
Section 
17B-1-212
; or
(v)
Section 
17B-1-214
.
(b)
The protest period described in Section 
17B-1-213
 may be waived in whole or in 
part with the consent of
:
(i)
100% of registered voters within the applicable area approving the creation of the 
public infrastructure district; and
(ii)
100% of the surface property owners within the applicable area approving the 
creation of the public infrastructure district.
(c)
If the protest period is waived under Subsection 
(2)(b)
, a resolution approving the 
creation of the public infrastructure district may be adopted in accordance with 
Subsection 
17B-1-213(5)
.
(d)
A petition meeting the requirements of Subsection 
(1)
:
(i)
may be certified under Section 
17B-1-209
; and
.
(ii)
shall be filed with the lieutenant governor in accordance with Subsection 
17B-1-215(1)(b)(iii)
.
(e)
Notwithstanding Subsection 
17B-1-215(1)(b)
, the district applicant shall file the 
items required by Subsection 
17B-1-215(1)(a)
 with the lieutenant governor within 30 
days of the day on which a resolution creating a public infrastructure district is 
adopted.
(3)
(a)
Notwithstanding 
Title 17B, Chapter 1, Part 4, Annexation
, an area outside of the 
boundaries of a public infrastructure district may be annexed into the public 
infrastructure district if the following requirements are met:
(i)
(a)
(A)
(i)
adoption of resolutions of the board and the creating entity, each 
approving of the annexation; or
(B)
(ii)
adoption of a resolution of the board to annex the area, provided that the 
governing document or creation resolution for the public infrastructure district 
authorizes the board to annex an area outside of the boundaries of the public 
infrastructure district without future consent of the creating entity;
 and
(ii)
if there are any registered voters within the area proposed to be annexed, a 
petition is filed with the creating entity that contains the signatures of 100% of 
registered voters within the area, demonstrating that the registered voters approve 
of the annexation into the public infrastructure district; and
(iii)
(b)
a petition is filed with the 
creating entity
public infrastructure district
 that 
contains the signatures of 100% of surface property owners within the area proposed 
to be annexed, demonstrating the surface property owners' consent to the annexation 
into the public infrastructure district.
(b)
Within 30 days of meeting the requirements of Subsection 
(3)(a)
, the board shall file 
with the lieutenant governor:
(i)
a copy of a notice of impending boundary action, as defined in Section 
67-1a-6.5
, 
that meets the requirements of Subsection 
67-1a-6.5(3)
; and
(ii)
a copy of an approved final local entity plat, as defined in Section 
67-1a-6.5
.
(4)
(a)
Notwithstanding 
Title 17B, Chapter 1, Part 5, Withdrawal
, property may be 
withdrawn from a public infrastructure district if the following requirements are met:
(i)
(A)
adoption of resolutions of the board and the creating entity, each approving 
of the withdrawal; or
(B)
adoption of a resolution of the board to withdraw the property, provided that 
the governing document or creation resolution for the public infrastructure 
district authorizes the board to withdraw property from the public 
infrastructure district without further consent from the creating entity;
 and
(ii)
if there are any registered voters within the area proposed to be withdrawn, a 
petition is filed with the creating entity that contains the signatures of 100% of 
registered voters within the area, demonstrating that the registered voters approve 
of the withdrawal from the public infrastructure district; and
(iii)
(ii)
a petition is filed with the 
creating entity
public infrastructure district
 that 
contains the signatures of 100% of surface property owners within the area 
proposed to be withdrawn, demonstrating that the surface property owners consent 
to the withdrawal from the public infrastructure district.
(b)
If any bonds that the public infrastructure district issues are allocable to the area to 
be withdrawn remain unpaid at the time of the proposed withdrawal, the property 
remains subject to any taxes, fees, or assessments that the public infrastructure 
district imposes until the bonds or any associated refunding bonds are paid.
(c)
Upon meeting the requirements of 
Subsections
Subsection 
(3)
 or
(4)(a)
 and 
(b)
, 
the board shall
:
(i)
within 30 days of the day on which a resolution is adopted or a petition is filed 
under Subsection 
(3)
 or (4)(a), file with the lieutenant governor:
(A)
a copy of a notice of impending boundary action, as defined in Section 
67-1a-6.5
, that meets the requirements of Subsection 
67-1a-6.5(3)
; and
(B)
a copy of an approved final local entity plat, as defined in Section 
67-1a-6.5
; 
and
(ii)
comply with the requirements of Section 
17B-1-512
, except:
(A)
Subsections 
17B-1-512(1)(b)
 and (c) do not apply; and
(B)
.
the time periods described in this section govern.
(5)
A creating entity may impose limitations on the powers of a public infrastructure district 
through the governing document.
(6)
(a)
A public infrastructure district is separate and distinct from the creating entity.
(b)
(i)
Except as provided in Subsection 
(6)(b)(ii)
, any financial burden of a public 
infrastructure district:
(A)
is borne solely by the public infrastructure district; and
(B)
is not borne by the creating entity, by the state, or by any municipality, 
county, or other political subdivision.
(ii)
Notwithstanding Subsection 
(6)(b)(i)
 and Section 
17B-1-216
, the governing 
document may require:
(A)
the district applicant to bear the initial costs of the public infrastructure 
district; and
(B)
the public infrastructure district to reimburse the district applicant for the 
initial costs the creating entity bears.
(iii)
Nothing in this Subsection 
(6)
 precludes a public infrastructure district from 
qualifying directly for an impact fee offset, credit, or refund under Title 11, 
Chapter 36a, Impact Fees Act, regarding any qualifying system improvements 
financed by the public infrastructure district.
(c)
Any liability, judgment, or claim against a public infrastructure district:
(i)
is the sole responsibility of the public infrastructure district; and
(ii)
does not constitute a liability, judgment, or claim against the creating entity, the 
state, or any municipality, county, or other political subdivision.
(d)
(i)
(A)
The public infrastructure district solely bears the responsibility of any 
collection, enforcement, or foreclosure proceeding with regard to any 
tax, 
fee
,
 or assessment the public infrastructure district imposes.
(B)
The creating entity does not bear the responsibility described in Subsection 
(6)(d)(i)(A)
.
(ii)
A public infrastructure district, and not the creating entity, shall undertake the 
enforcement responsibility described in, as applicable, Subsection 
(6)(d)(i)
 in 
accordance with 
Title 59, Chapter 2, Property Tax Act
, or 
Title 11, Chapter 42, 
Assessment Area Act
.
(7)
A creating entity may establish criteria in determining whether to approve or disapprove 
of the creation of a public infrastructure district, including:
(a)
historical performance of the district applicant;
(b)
compliance with the creating entity's master plan;
(c)
credit worthiness of the district applicant;
(d)
plan of finance of the public infrastructure district; and
(e)
proposed development within the public infrastructure district.
(8)
(a)
The creation of a public infrastructure district is subject to the sole discretion of 
the creating entity responsible for approving or rejecting the creation of the public 
infrastructure district.
(b)
The proposed creating entity bears no liability for rejecting the proposed creation of 
a public infrastructure district.
Section 11, Section 
17D-4-202
 is amended to read:
17D-4-202
Effective 
upon governor's approval
. Public infrastructure district 
board -- Governing document.
(1)
(a)
The legislative body or board of the creating entity shall appoint the 
initial 
members of the board of a public infrastructure district, in accordance with the 
governing document.
(b)
A governing document approved by the legislative body or board of the creating 
entity may provide for the board of a public infrastructure district to, upon a vacancy 
on the board, appoint an individual to the board so long as the individual meets the 
requirements to serve on a public infrastructure district board described in this 
section.
(c)
For public infrastructure districts not described in Subsection 
(1)(b)
, and except as 
provided in Subsection (1)(d):
(i)
if there is a vacancy on the board of a public infrastructure district, or a board 
member provides notice to the legislative body or board of the creating entity of 
the board member's intention to resign from the board, the legislative body or 
board of the creating entity shall appoint a replacement board member within 45 
days from the day on which the vacancy first occurs or the board member 
provides notice of the board member's intent to resign; and
(ii)
if a legislative body or board of the creating entity fails to fill a vacancy on the 
board within the time period described in Subsection 
(1)(c)
(i), the board of the 
public infrastructure district may appoint an individual who is eligible to serve on 
the board according to the requirements of this section to fill the board vacancy.
(d)
If a public infrastructure district board position has transitioned from appointment to 
election, as described in Subsection 
(4)
, and an elected board position becomes 
vacant, the provisions of Section 
20A-1-512
 apply to fill the vacancy.
(2)
(a)
Unless otherwise limited in the governing document and except as provided in 
Subsection 
(2)(b)
, the initial term of each member of the board is four years.
(b)
Notwithstanding Subsection 
(2)(a)
, approximately half of the members of the initial 
board shall serve a six-year term so that, after the expiration of the initial term, the 
term of approximately half the board members expires every two years.
(c)
A board may elect that a majority of the board serve an initial term of six years.
(d)
After the initial term, the term of each member of the board is four years.
(e)
A member of the board who is appointed shall continue to serve on the board of the 
public infrastructure district until a replacement board member is appointed.
(3)
(a)
Notwithstanding Subsection 
17B-1-302(1)(b)
, a board member is not required to 
be a resident within the boundaries of the public infrastructure district if:
(i)
all of the surface property owners consent to the waiver of the residency 
requirement;
(ii)
there are no residents within the boundaries of the public infrastructure district;
(iii)
no qualified candidate timely files to be considered for appointment to the board; 
or
(iv)
no qualified individual files a declaration of candidacy for a board position in 
accordance with Subsection 
17B-1-306(5)
.
(b)
Except under the circumstances described in Subsection 
(3)(a)(iii)
 or 
(iv)
, the 
residency requirement in Subsection 
17B-1-302(1)(b)
 is applicable to any board 
member elected for a division or board position that has transitioned from an 
appointed to an elected board member in accordance with this section.
(c)
An individual who is not a resident within the boundaries of the public infrastructure 
district may not serve as a board member unless the individual is:
(i)
an owner of land or an agent or officer of the owner of land within the boundaries 
of the public infrastructure district; and
(ii)
a registered voter at the individual's primary residence.
(d)
If the creating entity determines that a public infrastructure district is not anticipated 
to have permanent residents within the public infrastructure district's boundaries, or is 
anticipated to be primarily composed of non-residential property or non-primary 
residential property, a governing document may allow the creating entity to continue 
to appoint a property owner, or the agent of a property owner, to the public 
infrastructure district board.
(e)
A governing document may allow for a property owner to recommend a property 
owner or a property owner's agent for appointment to the public infrastructure district 
board in numbers proportional to the property owner's ownership of land, or value of 
land, within a public infrastructure district.
(4)
(a)
A governing document may provide for a transition from legislative body 
appointment under Subsection 
(1)
 to a method of election by registered voters based 
upon milestones or events that the governing document identifies, including a 
milestone for each division or individual board position providing that when the 
milestone is reached:
(i)
for a division, the registered voters of the division elect a member of the board in 
place of an appointed member at the next municipal general election for the board 
position; or
(ii)
for an at large board position established in the governing document, the 
registered voters of the public infrastructure district elect a member of the board in 
place of an appointed member at the next municipal general election for the board 
position.
(b)
Regardless of whether a board member is elected under Subsection 
(4)(a)
, the 
position of each remaining board member shall continue to be appointed under 
Subsection 
(1)
 until the member's respective division or board position surpasses the 
density milestone described in the governing document.
(5)
(a)
Subject to Subsection 
(5)(c)
, the board may, in the board's discretion but no more 
frequently than every four years, reestablish the boundaries of each division so that 
each division that has reached a milestone specified in the governing document, as 
described in Subsection 
(4)(a)
, has, as nearly as possible, the same number of eligible 
voters.
(b)
In reestablishing division boundaries under Subsection 
(5)(a)
, the board shall 
consider existing or potential developments within the divisions that, when 
completed, would increase or decrease the number of eligible voters within the 
division.
(c)
The governing document may prohibit the board from reestablishing, without the 
consent of the creating entity, the division boundaries as described in Subsection 
(5)(a)
.
(6)
A public infrastructure district may not compensate a board member for the member's 
service on the board under Section 
17B-1-307
 unless the board member is a resident 
within the boundaries of the public infrastructure district.
(7)
A governing document shall:
(a)
include a boundary description and a map of the public infrastructure district;
(b)
state the number of board members;
(c)
describe any divisions of the public infrastructure district;
(d)
establish any applicable property tax levy rate limit for the public infrastructure 
district;
(e)
establish any applicable limitation on the principal amount of indebtedness for the 
public infrastructure district; and
(f)
include other information that the public infrastructure district or the creating entity 
determines to be necessary or advisable.
(8)
(a)
Except as provided in Subsection 
(8)(b)
, the board and the governing body of the 
creating entity may amend a governing document by each adopting a resolution that 
approves the amended governing document.
(b)
Notwithstanding Subsection 
(8)(a)
, any amendment to
 increase
 a property tax levy 
rate limitation requires the consent of
:
(i)
100% of surface property owners within the boundaries of the public 
infrastructure district
; and
.
(ii)
100% of the registered voters, if any, within the boundaries of the public 
infrastructure district.
(9)
A board member is not in violation of Section 
67-16-9
 if the board member:
(a)
discloses a business relationship in accordance with Sections 
67-16-7
 and 
67-16-8
and files the disclosure with the creating entity:
(i)
before any appointment or election; and
(ii)
upon any significant change in the business relationship; and
(b)
conducts the affairs of the public infrastructure district in accordance with this title 
and any parameters described in the governing document.
(10)
Notwithstanding any other provision of this section, the governing document governs 
the number, appointment, and terms of board members of a public infrastructure district 
created by the development authority.
Section 12, Section 
17D-4-203
 is amended to read:
17D-4-203
Effective 
upon governor's approval
. Public infrastructure district 
powers.
A public infrastructure district:
(1)
has all of the authority conferred upon a special district under Section 
17B-1-103
; and
(2)
may:
(a)
issue negotiable bonds to pay:
(i)
all or part of the costs of acquiring, acquiring an interest in, improving, or 
extending any of the improvements, facilities, or property allowed under Section 
11-14-103
;
(ii)
capital costs of improvements in an energy assessment area, as defined in Section 
11-42a-102
, and other related costs, against the funds that the public infrastructure 
district will receive because of an assessment in an energy assessment area
, as 
defined in Section 
11-42a-102
;
(iii)
public improvements related to the provision of housing;
(iv)
capital costs related to public transportation;
(v)
for a public infrastructure district created by a development authority, 
the cost 
of acquiring or financing public infrastructure and improvements; and
(vi)
for a public infrastructure district that is a subsidiary of
 or created by
 the Utah 
Inland Port Authority, the costs associated with a remediation project, as defined 
in Section 
11-58-102
;
(b)
enter into an interlocal agreement in accordance with 
Title 11, Chapter 13, Interlocal 
Cooperation Act
, provided that the interlocal agreement may not expand the powers 
of the public infrastructure district, within the limitations of 
Title 11, Chapter 13, 
Interlocal Cooperation Act
, without the consent of the creating entity;
(c)
notwithstanding any other provision in code, 
acquire completed or partially 
completed improvements
, including related design and consulting services and 
related work product,
 for fair market value as reasonably determined by:
(i)
the board;
(ii)
the creating entity, if required in the governing document; or
(iii)
a surveyor or engineer that a public infrastructure district employs or engages to 
perform the necessary engineering services for and to supervise the construction 
or installation of the improvements;
(d)
contract with the creating entity for the creating entity to provide administrative 
services on behalf of the public infrastructure district, when agreed to by both parties, 
in order to achieve cost savings and economic efficiencies, at the discretion of the 
creating entity; 
and
(e)
for a public infrastructure district created by a development authority
, or for a public 
infrastructure district created by a municipality and located in an urban renewal 
project area that includes some or all of an inactive industrial site
:
(i)
(A)
operate and maintain public infrastructure and improvements the district 
acquires or finances; and
(B)
use fees, assessments, or taxes to pay for the operation and maintenance of 
those public infrastructure and improvements; and
(ii)
issue bonds under 
Title 11, Chapter 42, Assessment Area Act
; and
(f)
for a public infrastructure district that is a subsidiary of 
or created by 
the Utah Inland 
Port Authority, pay for costs associated with a remediation project, as defined in 
Section 
11-58-102
, of the Utah Inland Port Authority.
Section 13, Section 
17D-4-204
 is amended to read:
17D-4-204
Effective 
upon governor's approval
. Relation to other local entities.
(1)
Notwithstanding the creation of a public infrastructure district, the creating entity and 
any other public entity, as applicable, retains all of the entity's authority over all zoning, 
planning, design specifications and approvals, and permitting within the public 
infrastructure district.
(2)
The inclusion of property within the boundaries of a public infrastructure district does 
not preclude the inclusion of the property within any other special district.
(3)
(a)
All infrastructure that is connected to another public entity's system:
(i)
belongs to that public entity, regardless of inclusion within the boundaries of a 
public infrastructure district, unless the public infrastructure district and the public 
entity otherwise agree; and
(ii)
shall comply with the design, inspection requirements, and other standards of the 
public entity.
(b)
A public infrastructure district shall convey or transfer the infrastructure described in 
Subsection 
(3)(a)
 free of liens or financial encumbrances to the public entity at no 
cost to the public entity.
(4)
(a)
No public entity or private person shall receive funds from any portion of a public 
infrastructure district's property tax revenue without a resolution of the public 
infrastructure district's board authorizing the public entity or private person to receive 
the funds.
(b)
Subsection 
(4)(a)
 does not apply to the county's expenses related to collecting 
property tax in accordance with Title 59, Chapter 2, Part 12, Property Tax Act.
(c)
Subsection 
(4)(a)
 applies notwithstanding any provision in:
(i)
Title 17C, Limited Purpose Local Government Entities - Community 
Reinvestment Agency Act;
(ii)
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;
(iii)
a statute governing a development authority created under Utah Constitution, 
Article XI; or
(iv)
a provision of code related to the collection, distribution, or sharing of tax 
increment revenue, incremental property tax increases, or actions related to the 
collection, distribution, or sharing of tax increment revenue or incremental 
property tax increases.
Section 14, Section 
17D-4-301
 is amended to read:
17D-4-301
Effective 
upon governor's approval
. Public infrastructure district 
bonds.
(1)
(a)
Subject to Subsection 
(1)(b)
, a public infrastructure district may issue negotiable 
bonds
 or other debt instruments
 for the purposes described in Section 
17D-4-203
, as 
provided in, as applicable:
(i)
Title 11, Chapter 14, Local Government Bonding Act
;
(ii)
Title 11, Chapter 27, Utah Refunding Bond Act
;
(iii)
Title 11, Chapter 42, Assessment Area Act
; 
(iv)
Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; 
and
(iv)
(v)
this section.
(b)
A public infrastructure district created by a bonding political subdivision, as defined 
in Section 
63C-25-101
, may not issue bonds under this part unless the board first:
(i)
adopts a parameters resolution for the bonds that sets forth:
(A)
the maximum:
(I)
amount of bonds;
(II)
term; and
(III)
interest rate; and
(B)
the expected security for the bonds; and
(ii)
submits the parameters resolution for review and recommendation to the State 
Finance Review Commission created in Section 
63C-25-201
.
(2)
A public infrastructure district bond
:
(a)
shall mature within 40 years of the date of issuance
; and
.
(b)
may not be secured by any improvement or facility paid for by the public 
infrastructure district.
(3)
(a)
A public infrastructure district may issue a limited tax bond, in the same manner 
as a general obligation bond:
(i)
(A)
with the consent of 100% of surface property owners within the boundaries 
of the public infrastructure district
;
 and
 100%
(B)
with the consent of a majority
 of the registered voters, if any, within the 
boundaries of the proposed public infrastructure district
 as of the day on which 
the board finds that the consent of a majority of registered voters has been 
obtained
; or
(ii)
upon approval of a majority of the registered voters within the boundaries of the 
public infrastructure district voting in an election held for that purpose under 
Title 
11, Chapter 14, Local Government Bonding Act
.
(b)
A limited tax bond described in Subsection 
(3)(a)
:
(i)
is not subject to the limitation on a general obligation bond described in 
Subsection 
17B-1-1102(4)
; and
(ii)
is subject to a limitation, if any, on the principal amount of indebtedness as 
described in the governing document.
(c)
Unless limited tax bonds are initially purchased exclusively by one or more qualified 
institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A,
 or an 
investment grade rating is obtained for the limited tax bonds by one or more 
nationally recognized rating agencies,
 the public infrastructure district may only issue 
limited tax bonds in denominations of not less than $500,000, and in integral 
multiples above $500,000 of not less than $1,000 each.
(d)
(i)
Without any further election or consent of property owners or registered voters, 
a public infrastructure district may convert a limited tax bond described in 
Subsection 
(3)(a)
 to a general obligation bond if the principal amount of the 
related limited tax bond together with the principal amount of other related 
outstanding general obligation bonds of the public infrastructure district does not 
exceed 15% of the fair market value of taxable property in the public 
infrastructure district securing the general obligation bonds, determined by:
(A)
an appraisal from an appraiser who is a member of the Appraisal Institute that 
is addressed to the public infrastructure district or a financial institution; or
(B)
the most recent market value of the property from the assessor of the county in 
which the property is located.
(ii)
The consent to the issuance of a limited tax bond described in Subsection 
(3)(a)
 is 
sufficient to meet any statutory or constitutional election requirement necessary 
for the issuance of the limited tax bond and any general obligation bond to be 
issued in place of the limited tax bond upon meeting the requirements of this 
Subsection 
(3)(d)
.
(iii)
A general obligation bond resulting from a conversion of a limited tax bond 
under this Subsection 
(3)(d)
 is not subject to the limitation on general obligation 
bonds described in Subsection 
17B-1-1102(4)(a)(xii)
.
(e)
A public infrastructure district that levies a property tax for payment of debt service 
on a limited tax bond issued under this section is not required to comply with the 
notice and hearing requirements of Section 
59-2-919
 unless the rate exceeds the rate 
established in:
(i)
Section 
17D-4-303
, except as provided in Subsection 
(8)
(13)
;
(ii)
the governing document; or
(iii)
the documents relating to the issuance of the limited tax bond.
(4)
(a)
For a public infrastructure district seeking the consent described in Subsection 
(3)(a)(i)
(B), a public infrastructure district may:
(i)
post a class A notice under Section 
63G-30-102
 for at least 30 days; and
(ii)
mail a request for consent to each registered voter within the boundaries of the 
public infrastructure district according to voter registration records.
(b)
The request for consent described in Subsection 
(4)(a)(ii)
 shall include:
(i)
the purpose for the issuance of the bonds;
(ii)
the maximum principal amount of the bonds to be issued;
(iii)
the maximum tax rate proposed to be pledged for the repayment of the bonds;
(iv)
the words "For the issuance of bonds" and "Against the issuance of bonds," with 
appropriate boxes in which the voter may indicate the voter's choice; and
(v)
a return address and phone number where additional information may be obtained 
from the public infrastructure district.
(c)
Any registered voter who does not return the request for consent within 30 days of 
the day they are mailed to the voter is considered:
(i)
non-participatory in the request for consent; and
(ii)
shall not be included in a calculation to determine the percentage of registered 
voters who consent to the issuance of bonds.
(d)
If a majority of the registered voters who return the request for consent under this 
Subsection 
(4)
 indicate "For the issuance of bonds," or if no registered voters return 
the request for consent within the time frame described in Subsection 
(4)(c)
, the 
requirement described in Subsection (3)(a)(i)(B) is met.
(e)
Nothing in this Subsection 
(4)
:
(i)
prevents a public infrastructure district from obtaining the consent of registered 
voters for the issuance of a bond through another method; or
(ii)
shall be interpreted to affect or otherwise interfere with any consents of registered 
voters obtained before the effective date of this bill.
(5)
Nothing in this section shall be interpreted to:
(a)
prevent a public infrastructure district from withdrawing property from the public 
infrastructure district's boundaries where the property owners or registered voters 
associated with that property do not consent to the issuance of bonds or vote against 
the issuance of bonds; or
(b)
require a public infrastructure district to withdraw property from the public 
infrastructure district's boundaries where the property owners or registered voters 
associated with that property do not consent to the issuance of bonds or vote against 
the issuance of bonds.
(6)
(a)
Beginning on the effective date of this bill, once consent or approval is obtained 
under Subsection 
(3)(a)
, the consent or approval is valid for a period of 10 years from 
the day on which the board:
(i)
adopts a resolution or ordinance finding that the consent or approval is obtained; 
and
(ii)
publishes a notice of the resolution or ordinance described in Subsection 
(6)(a)
(i) 
as a class A notice under Section 
63G-30-102
 for at least 30 days.
(b)
The tolling provisions of Section 
11-14-301
 apply during the 10-year period 
described in Subsection 
(6)(a)
.
(c)
After a public infrastructure district obtains consent or approval under Subsection 
(3)(a)
, the public infrastructure district does not require any additional consent to or 
approval of the issuance of bonds, and the subsequent annexation of property to, or 
withdrawal of property from, the public infrastructure district does not impact:
(i)
the validity of already obtained consent or approval;
(ii)
the 10-year period described in Subsection 
(6)(a)
; or
(iii)
any bond issued, or to be issued, pursuant to the consent or approval that was 
obtained under Subsection 
(3)(a)
.
(d)
Subsection 
(6)(a)
 does not invalidate or alter any consent or approval, or finding of 
consent or approval, that occurred before the effective date of this bill.
(7)
(a)
There 
Except as provided in Subsection 
(7)(b)
, there 
is no limitation on the 
duration of revenues that a public infrastructure district may receive to cover any 
shortfall in the payment of principal of and interest on a bond that the public 
infrastructure district issues.
(b)
A public infrastructure governing document or bond documents may limit the 
duration of time described in Subsection 
(7)
(a).
(5)
(8)
Section 
11-42-106
 governs any action to challenge an assessment imposed by a 
public infrastructure district or any proceeding to designate an assessment area 
conducted by a public infrastructure district.
(9)
A public infrastructure district is not a municipal corporation for purposes of the debt 
limitation of 
Utah Constitution, Article XIV, Section 4.
(6)
(10)
The 
Notwithstanding any other provision, the 
board may
,
 directly or
 by 
resolution
,
 delegate to one or more officers of the public infrastructure district the 
authority to:
(a)
in accordance and within the parameters set forth in a resolution adopted in 
accordance with Section 
11-14-302
, approve the final interest rate, price, principal 
amount, maturity, redemption features, and other terms of the bond;
(b)
approve and execute any document 
or contract 
relating to the issuance of a bond; and
(c)
approve any contract related to the acquisition and construction of the improvements, 
facilities, or property to be financed with a bond.
(11)
(a)
Subject to Subsection 
(11)(b)
, before a public infrastructure district may issue a 
limited tax bond or assessment bond, the public infrastructure district shall engage a 
municipal advisor who, in connection with the issuance of bonds, shall deliver a 
certificate stating that:
(i)
the municipal advisor qualifies to serve as a municipal advisor, as defined in 
Section 
17D-4-102
, including the basis for the municipal advisor's qualifications;
(ii)
the structure of the limited tax bond or assessment bond the public infrastructure 
district is about to issue is a reasonable structure, as of the date of the issuance of 
the limited tax bond or assessment bond, as applicable; and
(iii)
the interest rate of the limited tax bond or assessment bond the public 
infrastructure district is about to offer is a reasonable market rate, as of the date of 
the issuance of the limited tax bond or assessment bond, as applicable.
(b)
The provisions of this Subsection 
(11)
 do not apply to a public infrastructure district 
created by a development authority.
(7)
(12)
(a)
Any person may contest the legality of the issuance of a public 
infrastructure district bond or any provisions for the security and payment of the bond 
for a period of 30 days after:
(i)
publication of 
posting 
the resolution authorizing the bond
 as a class A notice 
under Section 
63G-30-102
; or
(ii)
publication of 
posting 
a notice of bond containing substantially the items 
required under Subsection 
11-14-316(2)
 as a class A notice under Section 
63G-30-102
.
(b)
After the 30-day period described in Subsection 
(7)(a)
(12)(a)
, no person may bring 
a lawsuit or other proceeding contesting the regularity, formality, or legality of the 
bond for any reason.
(8)
(13)
(a)
In the event of any statutory change in the methodology of assessment or 
collection of property taxes in a manner that reduces the amounts which are devoted 
or pledged to the repayment of limited tax bonds, a public infrastructure district may 
charge a rate sufficient to receive the amount of property taxes or assessment the 
public infrastructure district would have received before the statutory change in order 
to pay the debt service on outstanding limited tax bonds.
(b)
The rate increase described in Subsection 
(8)(a)
(13)(a)
 may exceed the limit 
described in Section 
17D-4-303
.
(c)
The public infrastructure district may charge the rate increase described in 
Subsection 
(8)(a)
(13)(a)
 until the bonds, including any associated refunding bonds, 
or other securities, together with applicable interest, are fully met and discharged.
(9)
(14)
No later than 60 days after the closing of any bonds by a public infrastructure 
district created by a bonding political subdivision, as defined in Section 
63C-25-101
, the 
public infrastructure district shall report the bond issuance, including the amount of the 
bonds, terms, interest rate, and security, to:
(a)
the Executive Appropriations Committee; and
(b)
the State Finance Review Commission created in Section 
63C-25-201
.
Section 15, Section 
17D-4-302
 is amended to read:
17D-4-302
Effective 
upon governor's approval
. Fees.
(1)
A
In addition to any fees authorized by Title 17B, Chapter 1, Provisions Applicable 
to All Special Districts, a
 public infrastructure district may charge a fee 
or other charge 
for an administrative service that the public infrastructure district provides, to pay some 
or all of the public infrastructure district's:
(1)
(a)
costs of acquiring, improving, or extending improvements, facilities, or 
property; or
(2)
(b)
costs associated with the enforcement of a legal remedy.
(2)
The board of a public infrastructure district shall establish fees by a fee schedule in 
ordinance or resolution.
Section 16, Section 
17D-4-303
 is amended to read:
17D-4-303
Effective 
upon governor's approval
. Limits on public infrastructure 
district property tax levy -- Notice requirements.
(1)
The property tax levy of a public infrastructure district, for all purposes, including 
payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable 
value of taxable property in the district.
(2)
The limitation described in Subsection 
(1)
 does not apply to the levy by the public 
infrastructure district to pay principal of and interest on a general obligation bond that 
the public infrastructure district issues.
(3)
(a)
Within 30 days after the day on which the lieutenant governor issues a certificate 
of incorporation 
for the public infrastructure district 
under Section 
67-1a-6.5
, the 
board shall record a notice with the recorder of the county in which property within 
the public infrastructure district is located.
(b)
The notice described in Subsection 
(3)(a)
 shall:
(i)
contain a description of the boundaries of the public infrastructure district;
(ii)
state that a copy of the governing document is on file at the office of the creating 
entity;
(iii)
state that the public infrastructure district may finance and repay infrastructure 
and other improvements through the levy of a property tax; and
(iv)
state the maximum rate that the public infrastructure district may levy.
(c)
The effective date of the public infrastructure district for purposes of assessing 
property tax is the day on which the notice is recorded in the office of the recorder of 
each county in which the public infrastructure district is located, as described in 
Section 
59-2-305.5
.
(4)
If the board fails to record a notice as described in Subsection 
(3)
:
(a)
the public infrastructure district is still created as of the day the lieutenant governor 
issues a certificate of incorporation for the public infrastructure district;
(b)
any bonds issued by the public infrastructure district are still valid; and
(c)
the public infrastructure district may not levy a tax or levy or collect a fee until the 
board records the notice described in Subsection 
(3)
.
Section 17, Section 
17D-4-305
 is amended to read:
17D-4-305
Effective 
upon governor's approval
. Action to contest tax, fee, or 
proceeding -- Requirements -- Exclusive remedy -- Bonds, taxes, and fees incontestable.
(1)
A person who contests a tax or fee
 imposed by a public infrastructure district
 or any 
proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring 
a civil action against the public infrastructure district or the creating entity to:
(a)
set aside the proceeding; or
(b)
enjoin the levy, imposition, or collection of a tax or fee.
(2)
The person bringing an action described in Subsection (1):
(a)
notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, shall bring the 
action in the county in which the public infrastructure district is located if the person 
brings the action in the district court; and
(b)
may not bring the action against or serve a summons relating to the action on the 
public infrastructure district more than 30 days after the 
effective date of the
day on 
which
:
(i)
the 
creation of the public infrastructure district
 is effective
, if the challenge is to 
the creation of the public infrastructure district;
 or
(ii)
the board of the public infrastructure district adopts a resolution or ordinance 
establishing a 
tax or fee, if the challenge is to a tax or fee
.
; or
(iii)
the board of the public infrastructure district adopts a resolution or ordinance 
annexing property to, or withdrawing property from, the public infrastructure 
district, if the challenge is to an annexation or withdrawal.
(3)
An action under Subsection (1) is the exclusive remedy of a person who:
(a)
claims an error or irregularity in a tax or fee or in any proceeding to create a public 
infrastructure district, levy a tax, or impose a fee; or
(b)
challenges a bondholder's right to repayment.
(4)
After the expiration of the 30-day period described in Subsection (2)(b):
(a)
a bond issued or to be issued with respect to a public infrastructure district and any 
tax levied or fee imposed becomes incontestable against any person who has not 
brought an action and served a summons in accordance with this section;
(b)
a person may not bring a suit to:
(i)
enjoin the issuance or payment of a bond or the levy, imposition, collection, or 
enforcement of a tax or fee; or
(ii)
attack or question in any way the legality of a bond, tax, or fee; and
(c)
a court may not inquire into the matters described in Subsection (4)(b).
(5)
(a)
This section does not insulate a public infrastructure district from a claim of 
misuse of funds after the expiration of the 30-day period described in Subsection 
(2)(b).
(b)
(i)
Except as provided in Subsection (5)(b)(ii), an action in the nature of 
mandamus is the sole form of relief available to a party challenging the misuse of 
funds.
(ii)
The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal 
charges against or the prosecution of a party for the misuse of funds.
(6)
If there is a conflict between a provision in Section 
17D-4-301
 and a provision in this 
section, the provision in Section 
17D-4-301
 supersedes the conflicting provision in this 
section.
Section 18, Section 
67-1a-6.5
 is amended to read:
67-1a-6.5
Effective 
upon governor's approval
. Certification of local entity 
boundary actions -- Definitions -- Notice requirements -- Electronic copies -- Filing.
(1)
As used in this section:
(a)
"Applicable certificate" means:
(i)
for the impending incorporation of a city, town, special district, conservation 
district, 
or 
incorporation of a special district from a reorganized special service 
district,
 or public infrastructure district,
 a certificate of incorporation;
(ii)
for the impending creation of a county, school district, special service district, 
community reinvestment agency, or interlocal entity, a certificate of creation;
(iii)
for the impending annexation of territory to an existing local entity, a certificate 
of annexation;
(iv)
for the impending withdrawal or disconnection of territory from an existing local 
entity, a certificate of withdrawal or disconnection, respectively;
(v)
for the impending consolidation of multiple local entities, a certificate of 
consolidation;
(vi)
for the impending division of a local entity into multiple local entities, a 
certificate of division;
(vii)
for the impending adjustment of a common boundary between local entities, a 
certificate of boundary adjustment; and
(viii)
for the impending dissolution of a local entity, a certificate of dissolution.
(b)
"Approved final local entity plat" means a final local entity plat, as defined in 
Section 
17-23-20
, that has been approved under Section 
17-23-20
 as a final local 
entity plat by the county surveyor.
(c)
"Approving authority" has the same meaning as defined in Section 
17-23-20
.
(d)
"Boundary action" has the same meaning as defined in Section 
17-23-20
.
(e)
"Center" means the Utah Geospatial Resource Center created under Section 
63A-16-505
.
(f)
"Community reinvestment agency" has the same meaning as defined in Section 
17C-1-102
.
(g)
"Conservation district" has the same meaning as defined in Section 
17D-3-102
.
(h)
"Interlocal entity" has the same meaning as defined in Section 
11-13-103
.
(i)
"Local entity" means a county, city, town, school district, special district, community 
reinvestment agency, special service district, conservation district, or interlocal entity.
(j)
"Notice of an impending boundary action" means a written notice, as described in 
Subsection (3), that provides notice of an impending boundary action.
(k)
"Special district" means the same as that term is defined in Section 
17B-1-102
.
(l)
"Special service district" means the same as that term is defined in Section 
17D-1-102
.
(2)
Within 10 days after receiving a notice of an impending boundary action, the lieutenant 
governor shall:
(a)
(i)
issue the applicable certificate, if:
(A)
the lieutenant governor determines that the notice of an impending boundary 
action meets the requirements of Subsection (3); and
(B)
except in the case of an impending local entity dissolution, the notice of an 
impending boundary action is accompanied by an approved final local entity 
plat;
(ii)
send the applicable certificate to the local entity's approving authority;
(iii)
return the original of the approved final local entity plat to the local entity's 
approving authority;
(iv)
send a copy of the applicable certificate and approved final local entity plat to:
(A)
the State Tax Commission;
(B)
the center; and
(C)
the county assessor, county surveyor, county auditor, and county attorney of 
each county in which the property depicted on the approved final local entity 
plat is located; and
(v)
send a copy of the applicable certificate to the state auditor, if the boundary action 
that is the subject of the applicable certificate is:
(A)
the incorporation or creation of a new local entity;
(B)
the consolidation of multiple local entities;
(C)
the division of a local entity into multiple local entities; or
(D)
the dissolution of a local entity; or
(b)
(i)
send written notification to the approving authority that the lieutenant governor 
is unable to issue the applicable certificate, if:
(A)
the lieutenant governor determines that the notice of an impending boundary 
action does not meet the requirements of Subsection (3); or
(B)
the notice of an impending boundary action is:
(I)
not accompanied by an approved final local entity plat; or
(II)
accompanied by a plat or final local entity plat that has not been approved 
as a final local entity plat by the county surveyor under Section 
17-23-20
; 
and
(ii)
explain in the notification under Subsection (2)(b)(i) why the lieutenant governor 
is unable to issue the applicable certificate.
(3)
Each notice of an impending boundary action shall:
(a)
be directed to the lieutenant governor;
(b)
contain the name of the local entity or, in the case of an incorporation or creation, 
future local entity, whose boundary is affected or established by the boundary action;
(c)
describe the type of boundary action for which an applicable certificate is sought;
(d)
be accompanied by a letter from the Utah State Retirement Office, created under 
Section 
49-11-201
, to the approving authority that identifies the potential provisions 
under Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity 
shall comply with, related to the boundary action, if the boundary action is an 
impending incorporation or creation of a local entity that may result in the 
employment of personnel; and
(e)
(i)
contain a statement, signed and verified by the approving authority, certifying 
that all requirements applicable to the boundary action have been met; or
(ii)
in the case of the dissolution of a municipality, be accompanied by a certified 
copy of the court order approving the dissolution of the municipality.
(4)
The lieutenant governor may require the approving authority to submit a paper or 
electronic copy of a notice of an impending boundary action and approved final local 
entity plat in conjunction with the filing of the original of those documents.
(5)
(a)
The lieutenant governor shall:
(i)
keep, index, maintain, and make available to the public each notice of an 
impending boundary action, approved final local entity plat, applicable certificate, 
and other document that the lieutenant governor receives or generates under this 
section;
(ii)
make a copy of each document listed in Subsection (5)(a)(i) available on the 
Internet for 12 months after the lieutenant governor receives or generates the 
document;
(iii)
furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any 
person who requests a paper copy; and
(iv)
furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to 
any person who requests a certified copy.
(b)
The lieutenant governor may charge a reasonable fee for a paper copy or certified 
copy of a document that the lieutenant governor provides under this Subsection (5).
(6)
The lieutenant governor's issuance of a certificate of creation for an infrastructure 
financing district constitutes the state's approval of the creation of the infrastructure 
financing district.
Section 19. 
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2), 
May 7, 2025
; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
3-7-25 11:09 PM