Public Infrastructure Districts Amendments

117
17D-4-104
17D-4-201
17D-4-202
17D-4-202.1
17D-4-301
17D-4-303
17D-4-401
0
Public Infrastructure Districts Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jill Koford
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill modifies requirements for public infrastructure districts.
Highlighted Provisions:
This bill:
defines terms;
modifies the process for dissolving a public infrastructure district (district);
modifies owner consent requirements;
modifies requirements for a district to annex property into the district;
requires an appointed member of a district board to provide a conflict of interest
disclosure;
modifies notice requirements; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17D-4-104
, as enacted by Laws of Utah 2025, Chapter 347
17D-4-201
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-202
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-202.1
, as enacted by Laws of Utah 2025, Chapter 29
17D-4-301
, as last amended by Laws of Utah 2025, Chapter 347
17D-4-303
, as last amended by Laws of Utah 2025, Chapter 347
ENACTS:
17D-4-401
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
17D-4-104
is amended to read:
17D-4-104
. Requirements for property owner consent.
(1)
Any
A
provision of this chapter requiring the consent or signatures of 100% of surface
estate
property owners within an applicable area
,
:

(a)
does not require
the consent of
any
a
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)
(i)
an easement;
(2)
(ii)
a right-of-way; or
(3)
(iii)
a public improvement, utility improvement, or related improvement
.
; and
(b)
is satisfied if, except as provided in Subsection (1)(a), on the day on which the
petition is filed, the petition contains the signatures of 100% of:
(i)
the surface estate property owners, as shown on the records of the office of the
recorder of the county in which the surface estate is located; or
(ii)
if written authorization is provided with the petition, an authorized representative
of the surface property owners described in Subsection (1)(b)(i).
(2)
A conveyance or other change in ownership that occurs after the day on which a petition
is filed does not affect the validity of the petition if the petition satisfies the requirement
described in Subsection (1)(b).
Section 2. Section
17D-4-201
is amended to read:
17D-4-201
. Creation -- Annexation or withdrawal of property.
(1)
(a)
Except as provided in Subsection
(1)(b)
, Subsection
(2)
, and in addition to the
provisions regarding creation of a special district in
Title 17B, Chapter 1, Provisions
Applicable to All Special Districts
, a public infrastructure district may not be created
unless a petition is filed with the creating entity that contains the signatures of 100%
of surface
estate
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" 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
estate

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
estate
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 100% of the surface
estate
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)
may be certified under Section
17B-1-209
.
(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)
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:
(a)
(i)
adoption of resolutions of the board and the creating entity, each approving of
the annexation; or
(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
(a)
the board adopts a resolution approving the annexation;
(b)
the governing document or resolution creating the public infrastructure district
authorizes the public infrastructure district to annex the proposed annexation area;
(b)
(c)
a petition is filed with the public infrastructure district that contains the
signatures of 100% of surface
estate
property owners within the
area proposed to be
annexed
proposed annexation area
, demonstrating the surface
estate
property owners'
consent to the annexation into the public infrastructure district
.
; and
(d)
if the creating entity is a county or municipality and the proposed annexation area is
outside the boundaries of the creating entity:
(i)
for an area that is unincorporated, the legislative body of the county where the
area is located adopts a resolution approving the annexation; or
(ii)
for an area that is within the boundaries of a municipality, the legislative body of
the municipality where the area is located adopts a resolution approving the
annexation.
(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
if
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)
a petition is filed with the public infrastructure district that contains the signatures
of 100% of surface
estate
property owners within the area proposed to be
withdrawn, demonstrating that the surface
estate
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 Subsection
(3)
or
(4)(a)
, 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
, including the
cost of accounting, audit reporting, and budget preparation,
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
legal responsibility,
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 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 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 3. Section
17D-4-202
is amended to read:
17D-4-202
. 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
if
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
estate
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)
describe the public infrastructure and improvements, facilities, or properties that the
public infrastructure district is created to construct, repair, or otherwise complete, as
described in Section 17D-4-203;
(g)
establish conflict of interest disclosure requirements for appointed board members
that:
(i)
require an appointed board member to make, and regularly update, a conflict of
interest disclosure that includes the information and items described in
Subsections
20A-11-1604(6)(a)
through
(n)
; and
(ii)
require public posting of the conflict of interest disclosure on the Utah Public
Notice Website and the public infrastructure district's website, if any; and
(f)
(h)
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 100% of surface
estate
property owners 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 4. Section
17D-4-202.1
is amended to read:
17D-4-202.1
. Convention center public infrastructure -- District board --
Petition and process requirements -- Governing document.
(1)
As used
is
in
this section:
(a)
"City" means a municipality of the first class located in a county of the first class in
which a convention center is located.
(b)
"County" means a county in which a convention center is located.
(c)
"Lessee" means a lessee of property within the proposed convention center public
infrastructure district that leases the property from the city or county for a term of at
least 10 years.
(d)
(i)
"Petitioner" means:
(A)
a surface
estate
property owner, a property owner, or lessee of property within
a proposed convention center public infrastructure district's boundaries that
initiates the formation of a convention center public infrastructure district; or
(B)
a surface
estate
property owner under this chapter, and Title 17B, Chapter 1,
Provisions Applicable to All Special Districts, in relation to a convention
center public infrastructure district.
(ii)
"Petitioner" does not include a city, county, or other public entity.
(2)
A convention center public infrastructure district shall be created in a city upon the
submission of a petition in accordance with this part and shall have all the powers of a
public infrastructure district under this chapter.
(3)
A convention center public infrastructure district may only be created within a city in
which a convention center is located.
(4)
The petition described in Subsection
(2)
shall:
(a)
include the governing document; and
(b)
for a petition to a city which has previously authorized revitalization taxes described
in Section
63N-3-1403
, include as part of the governing document approval and
authorization of an interlocal agreement pledging and securing the revitalization
taxes for debt of the proposed convention center public infrastructure district.
(5)
(a)
The process for creating a convention center public infrastructure district or a
convention center public infrastructure district in a capital city shall be initiated by
the submission of a petition and a governing document to the city, except that:
(i)
the city recorder shall certify the petition within 14 days from the day the
petitioner submits the petition to the city recorder;
(ii)
if the city recorder fails to certify the petition within the time described in
Subsection (5)(a)(i), the petition shall be considered certified; and
(iii)
within 30 days from the day that the petitioner submits the petition to the city
recorder, or if the city and the petitioner have come to an agreement as described
in Subsection
(5)(b)
, the city shall adopt a resolution to approve:
(A)
the governing document the petitioner submitted with the petition; and
(B)
the creation of a convention center public infrastructure district or a
convention center public infrastructure district in a capital city.
(b)
Notwithstanding Subsection
(5)(a)
, the city and petitioner may negotiate the finalized
terms of the petition, including the terms of an interlocal agreement, within a time
period agreed upon by the city and petitioner.
(6)
(a)
The boundaries of a convention center public infrastructure district shall be
limited to an area within a one-half-mile radius of a convention center.
(b)
If a parcel is intersected by the radius described in Subsection (6)(a), the entire parcel
may be included in the district.
(7)
A convention center public infrastructure district shall be subject to the following
provisions regarding taxation and financing:
(a)
a convention center public infrastructure district may levy an administrative tax of up
to 0.0005 per dollar of taxable value on taxable property within the district; and
(b)
the administrative tax shall be used exclusively for administrative expenses and may
not be used for capital costs or debt payment.
(8)
A convention center public infrastructure district shall be governed by the governing
document submitted and approved as described in this section.
(9)
The convention center public infrastructure board shall consist of five members as
follows:
(a)
three members shall be representatives of the petitioner and selected by the petitioner;
(b)
one member may be a representative of the city and selected by the mayor of the
city; and
(c)
one member may be a representative of the county and selected by the mayor of the
county.
(10)
If a city or county mayor chooses not to select a member of the board as described in
Subsection (9)(b) or (c), elects in writing to permanently abdicate the board seat, or
chooses to vacate a member at any time, the petitioner shall select a member for the
replacement who shall not be a representative of the city or county in which the
convention center is located.
(11)
(a)
A convention center public infrastructure district shall enter into an interlocal
agreement with the relevant county that provides that, for any revenue that is
transferred to the convention center public infrastructure district from a convention
center reinvestment zone created
pursuant to
in accordance with
Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act, the mayor of the county shall
have approval authority for the expenditure of any revenue related to a convention
center revitalization project, as that term is defined in Section
63N-3-602
.
(b)
The approval authority described in Subsection
(11)(a)
does not include approval
authority over:
(i)
any bonds or debt or related terms issued by the convention center public
infrastructure district; or
(ii)
revenue subject to a participation agreement entered into
pursuant to
in
accordance with
Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone.
Section 5. Section
17D-4-301
is amended to read:
17D-4-301
. 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
(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 shall mature within 40 years of the date of issuance.
(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
estate
property owners within the
boundaries of the public infrastructure district; and
(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)
.
(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 (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)
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).
(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.
(10)
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.
(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)
posting the resolution authorizing the bond as a class A notice under Section
63G-30-102
; or
(ii)
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 (12)(a), no person may bring a
lawsuit or other proceeding contesting the regularity, formality, or legality of the
bond for any reason.
(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 (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 (13)(a) until the bonds, including any associated refunding bonds, or other
securities, together with applicable interest, are fully met and discharged.
(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 6. Section
17D-4-303
is amended to read:
17D-4-303
. Limits on public infrastructure district property tax levy -- Notice
requirements.
(1)
The property tax levy of a public infrastructure district, for all purposes, including
payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable
value of taxable property in the district.
(2)
The limitation described in Subsection
(1)
does not apply to the levy by the public
infrastructure district to pay principal of and interest on a general obligation bond that
the public infrastructure district issues.
(3)
(a)
Within 30 days after the day on which the 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 the purpose of the public infrastructure district and the benefit the public
infrastructure district provides to property included in the public infrastructure
district;
(iv)
provide a summary of the public infrastructure and improvements the public
infrastructure district intends to build;
(iii)
(v)
state that the public infrastructure district may finance and repay
infrastructure and other improvements through the levy of a property tax
on the
property described in Subsection
(3)(b)(i)
;
and
(iv)
(vi)
state the maximum rate that the public infrastructure district may levy
.
;
(vii)
state any applicable limitation on the principal amount of indebtedness for the
public infrastructure district;
(viii)
state that the burden of the public infrastructure district is intended to run with
the land and to bind successors in interest and assigns; and
(ix)
provide a name and contact information for a person who potential purchasers of
property in the public infrastructure district may contact to receive information to
determine the actual assessment against a property within the public infrastructure
district.
(c)
The notice described in Subsection (3)(a) may be recorded as a single instrument that
covers more than one parcel if the notice includes, in the body of the notice or an
attached exhibit, the parcel number and legal description of each parcel covered by
the notice.
(c)
(d)
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 7. Section
17D-4-401
is enacted to read:
4. Dissolution
17D-4-401
. District dissolution.
(1)
The board of trustees of a public infrastructure district, other than a public infrastructure
district created by a development authority that provides ongoing services, shall adopt a
resolution to dissolve the public infrastructure once:
(a)
the public infrastructure district has paid all the public infrastructure district's debts;
(b)
the public infrastructure district's contractual obligations are satisfied or defeased; and
(c)
the public infrastructure and improvements, facilities, or properties described in the
governing document, as required in Section 17D-4-202, have been:
(i)
constructed, repaired, or otherwise completed; and
(ii)
transferred to the entity responsible for the maintenance and operation of the
public infrastructure and improvement, facility, or property.
(2)
The board shall:
(a)
adopt a resolution approving the dissolution of the public infrastructure district
within 30 days of the day on which the conditions of Subsection (1) are met; and
(b)
file with the lieutenant governor a notice of an impending boundary action, as
defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3),
within 30 days of the day on which the board adopts a resolution described in
Subsection (2)(a).
(3)
The board may use any assets of the public infrastructure district that remain after the
requirements of Subsection (1) are met to pay costs associated with the dissolution
process.
(4)
Upon the lieutenant governor's issuance of a certificate of dissolution under Section
67-1a-6.5:
(a)
the public infrastructure district is dissolved; and
(b)
the board shall:
(i)
if the public infrastructure district was located within the boundary of a single
county, submit to the recorder of that county the original and a certified copy of
the resolution described in Subsection (2)(a); or
(ii)
if the public infrastructure district was located within the boundaries of more than
a single county:
(A)
submit to the recorder of one of those counties the original certificate of
dissolution and a certified copy of the resolution described in Subsection
(2)(a); and
(B)
submit to the recorder of each other county a certified copy of the certificate
of dissolution and a certified copy of the resolution described in Subsection
(2)(a).
(5)
If any assets of the public infrastructure district remain after the conditions of
Subsection (1) are met and the costs described in Subsection (3) are paid, the board shall
distribute the assets in the following order of priority:
(a)
if there is a readily identifiable connection between the remaining assets and a
financial burden borne by the real property owners in the dissolved public
infrastructure district, proportionately to those real property owners; and
(b)
the entity described in Subsection (1)(c)(ii).
Section 8.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-1-26 9:24 AM