Municipal Incorporation Amendments

17
10-2a-502
10-2a-507
10-2a-509
10-2a-510
0
Municipal Incorporation Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Michael L. Kohler
Senate Sponsor:
LONG TITLE
General Description:
This bill amends provisions relating to the incorporation of a preliminary municipality.
Highlighted Provisions:
This bill:
provides that:
a person may not apply to incorporate an area as a preliminary municipality after
February 1, 2026; and
a person who applies to incorporate an area as a preliminary municipality by filing a
feasibility request on or before February 1, 2026, may proceed in accordance with
Title 10, Chapter 2a, Part 5, Incorporation of a Preliminary Municipality, after
February 1, 2026;
requires:
a proposed preliminary municipality to agree that initial landowners will fully
compensate the county for damages to county property or infrastructure before the
preliminary municipality can transition into a town;
a preliminary municipality to comply with terms, conditions, or restrictions that were
established in a development agreement between the initial landowners and the
county before the feasibility request was filed; and
that a petition to transition a preliminary municipality into a town shall certify that
damages to county property or infrastructure have been paid in full; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
10-2a-502
, as enacted by Laws of Utah 2024, Chapter 534
10-2a-507
, as enacted by Laws of Utah 2024, Chapter 534
10-2a-509
, as enacted by Laws of Utah 2024, Chapter 534
10-2a-510
, as enacted by Laws of Utah 2024, Chapter 534
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-2a-502
is amended to read:
10-2a-502
. Incorporation of a preliminary municipality -- Feasibility request --
Requirements.
(1)
(a)
A
Except as provided in Subsection
(1)(b)
, a
person may apply to incorporate an
area as a preliminary municipality by filing a feasibility request in accordance with
this section.
(b)
A person may not file a feasibility request to incorporate an area as a preliminary
municipality after February 1, 2026.
(c)
Subject to Subsection
(6)(b)
, a person who, on or before February 1, 2026, files a
feasibility request under this section may:
(i)
modify the request after February 1, 2026, in accordance with Section
10-2a-505
;
or
(ii)
proceed in accordance with this part after February 1, 2026.
(2)
Subject to
Subsection
Subsections
(1)
and

(6)
, a person may file a feasibility request in
relation to an area that the person seeks to incorporate as a preliminary municipality if:
(a)
the area is contiguous;
(b)
no part of the area is within a county of the first class or second class;
(c)
no part of the area is within, or within .25 miles of, a municipality;
(d)
on the day on which the person files the feasibility request:
(i)
the area is owned by no more than three persons, all of whom consent to
incorporation as a preliminary municipality; and
(ii)
at least 50% of the area is undeveloped;
(e)
the persons who sign the feasibility request intend to develop the area to the point
that:
(i)
at least 100 individuals reside in the area;
(ii)
the area will have an average population density of no less than seven individuals
per square mile, unless:
(A)
a population density of less than seven individuals per square mile is
necessary in order to connect separate areas that share a demonstrable
community interest; and
(B)
the average population of the area has a population density of no less than
seven individuals per square mile if the land necessary to connect the separate
areas described in Subsection
(2)(e)(ii)(A)
is not included in the calculation;
and
(iii)
at least 10% of the housing in the preliminary municipality is affordable housing;
(f)
the area does not include land owned by the United States government unless:
(i)
the area, including the land owned by the United States government, is
contiguous; and
(ii)
(A)
incorporating the land is necessary to connect separate areas that share a
demonstrable community interest; or
(B)
excluding the land from the area would create an unincorporated island within
the proposed preliminary municipality;
(g)
the area is entirely within one county; and
(h)
the feasibility request complies with Subsection
(3)
.
(3)
(a)
A proposed preliminary municipality area may not include all or part of a pending
annexation area, unless:
(i)
the portion of the pending annexation area included in the proposed preliminary
municipality area does not exceed 20% of the proposed preliminary municipality
area; and
(ii)
the feasibility request would comply with the requirements of this section
regardless of whether the portion of the pending annexation area included in the
proposed preliminary municipality area is excluded from, or remains included in,
the proposed preliminary municipality area.
(b)
A proposed preliminary municipality area may not include all or part of an area that
is the subject of a completed feasibility study or supplemental feasibility study that
qualifies to proceed under Subsection
10-2a-205(5)(a)
, unless:
(i)
the proposed incorporation that is the subject of the completed feasibility study or
supplemental feasibility study has been defeated by the voters at an election under
Section
10-2a-210
; or
(ii)
the time described in Subsection
10-2a-208(1)
for filing an incorporation petition
based on the completed feasibility study or supplemental feasibility study has
elapsed without the sponsors filing an incorporation petition under Section
10-2a-208
.
(c)
A proposed preliminary municipality area may not include all or part of an area that
is the subject of a completed feasibility study or supplemental feasibility study whose
results comply with Subsection
10-2a-504(4)
, unless the time described in Subsection
10-2a-507(1)
for filing a petition for incorporation based on the completed feasibility
study or supplemental feasibility study has elapsed without the sponsors filing a
petition for incorporation under Section
10-2a-507
.
(4)
Except as provided in Section
10-2a-505
, the lieutenant governor shall consider each
feasibility request that includes an area described in Subsection
(3)(a)
as if the request
does not include the area described in Subsection
(3)(a)
.
(5)
A person who files a feasibility request under this section shall file the feasibility
request with the lieutenant governor, including in the feasibility request:
(a)
the signatures of all owners of real property included in the proposed preliminary
municipality area, showing that the owners consent to including the real property in
the proposed preliminary municipality area;
(b)
the name, address, and phone number of each owner signing the feasibility request;
(c)
a designation of one individual who signs the feasibility request as the primary
sponsor contact for the feasibility request;
(d)
a description of the proposed preliminary municipality area;
(e)
an accurate map or plat, prepared by a licensed surveyor, showing:
(i)
a legal description of the boundaries of the proposed preliminary municipality area
and each phase of the proposed preliminary municipality area;
(ii)
all development planned for the proposed preliminary municipality area; and
(iii)
that the first phase of the proposed preliminary municipality area is projected to
have at least 100 residents when completed; and
(f)
a request that the lieutenant governor commission a study to determine the feasibility
of incorporating the area as a preliminary municipality.
(6)
(a)
The provisions of this part, providing for the incorporation of a preliminary
municipality, is a pilot project that ends on January 1, 2031.
(b)
Except as provided in Subsection
(7)
, a person may not file a feasibility request
under this part in a calendar year during which two or more requests have already
been filed in the state.
(7)
A feasibility request does not count towards the limit described in Subsection
(6)(b)
if:
(a)
the sponsors who file the request withdraw the request;
(b)
the lieutenant governor rejects the feasibility request under Subsection
10-2a-503(4)

or
(5)(b)
, and the sponsors:
(i)
do not timely amend the feasibility request under Subsection
10-2a-503(7)(b)
; or
(ii)
are prohibited from amending the feasibility request under Subsection
10-2a-503(7)(c)
; or
(c)
the process to incorporate is prohibited from proceeding under Subsection
10-2a-504(5)(a)
and the sponsors:
(i)
do not timely file a modified feasibility request under Subsection
10-2a-505(1)(b)(i)
; or
(ii)
are prohibited from filing a modified feasibility request under Subsection
10-2a-505(3)
.
Section 2. Section
10-2a-507
is amended to read:
10-2a-507
. Petition for incorporation -- Requirements and form.
(1)
At any time within one year after the day on which the lieutenant governor completes
the public hearings required under Section
10-2a-506
, the owners of the property who
filed the feasibility request under Section
10-2a-502
for the proposed preliminary
municipality area may proceed with the incorporation process by filing a petition for
incorporation of the proposed preliminary municipality that:
(a)
includes the typed or printed name, signature, address, and phone number of the
initial landowners;
(b)
describes the proposed preliminary municipality area, as described in the feasibility
request or the modified feasibility request;
(c)
demonstrates compliance with Subsection
10-2a-504(4)
;
(d)
states the proposed name for the proposed preliminary municipality;
(e)
designates the primary sponsor contact for the proposed preliminary municipality;
(f)
designates the board chair and three of the four board members who will serve as a
five member council form of government for the preliminary municipality, described
in Section
10-3b-402
, for the preliminary municipality;
(g)
is accompanied by an accurate map or plat, prepared by a licensed surveyor, showing:
(i)
the boundaries of the proposed preliminary municipality;
and
(ii)
a single development plan for the proposed municipality, depicting each phase of
the development;
(h)
is accompanied by a bond, cash deposit, or letter of credit that:
(i)
is posted by the initial landowners;
(ii)
is in favor of the proposed preliminary municipality, to guarantee that the initial
landowners will complete the system infrastructure no later than six years after the
day on which the initial landowners file the petition for incorporation described in
this section; and
(iii)
will be refunded to the initial landowners in percentages that reflect the progress
toward completing the system infrastructure;
and
(i)
is accompanied by payment in full, from the initial landowners, of the costs incurred
by the lieutenant governor for the feasibility study, the public notices, the hearings,
and the other expenses incurred by the lieutenant governor to comply with the
requirements of this part in relation to the proposed preliminary municipality
.
; and
(j)
is accompanied by an agreement executed by the initial landowners providing that,
before the preliminary municipality can transition into a town, the county will be
fully compensated for any damages to county property or infrastructure that are
directly attributable to development of the preliminary municipality area.
(2)
If, within six years after the day on which the initial landowners file a petition for
incorporation under Subsection
(1)
, the system infrastructure for the preliminary
municipality is not completed, the portion of the bond, cash deposit, or letter of credit
described in Subsection
(1)(h)
that has not been refunded to the initial landowners shall
forfeit to the preliminary municipality.
(3)
If, within four years after the day on which the first residential certificate of occupancy
is issued for the development described in
Subsection
10-2a-503
(5)(e)
Subsections
10-2a-502(5)(d)
and
(e)
, or six years after the day on which the initial landowners file a
petition for incorporation under Subsection
(1)
, the preliminary municipality has not
transitioned to a town:
(a)
the lieutenant governor shall issue a certificate dissolving the preliminary
municipality;
(b)
all roads and infrastructure within the preliminary municipality revert to the county
in which the preliminary municipality is located;
(c)
the area within the proposed municipality falls under the jurisdiction of the county
and is no longer incorporated; and
(d)
the initial landowners are liable to the county for damages caused to the county due
to the dissolution of the preliminary municipality.
Section 3. Section
10-2a-509
is amended to read:
10-2a-509
. Governance of preliminary municipality -- Utilities -- Road
maintenance.
(1)
(a)
Within 30 days after the day on which the lieutenant governor issues a certificate
of incorporation described in Subsection
10-2a-508(1)(b)(i)
, the county in which the
preliminary municipality is located shall appoint one board member for the
preliminary municipality.
(b)
If the county fails to timely comply with Subsection
(1)(a)
, the board chair and the
three board members appointed under Subsection
10-2a-508(1)(b)(i)
shall, by
majority vote, appoint the final board member.
(2)
The board chair and board members, described in Subsection
(1)
, of a preliminary
municipality:
(a)
are not required to be residents of the preliminary municipality; and
(b)
shall serve as the board for the preliminary municipality until replaced by election
under Section
10-2a-510
.
(3)
(a)
Within 14 days after the day on which the first residential certificate of occupancy
is issued for the development described in
Subsection 10-2a-503(5)(e)
Subsections
10-2a-502(5)(d)
and
(e)
, the engineer described in Subsection
10-2a-509(6)
(7)
,
shall notify the county and the lieutenant governor, in writing:
(i)
that the first residential certificate of occupancy has been issued for the
preliminary municipality;
(ii)
of the date on which the first residential certificate of occupancy was issued; and
(iii)
of the physical address for which the first residential certificate of occupancy
was issued.
(b)
No later than the next municipal general election, or regular general election, that is
at least 30 days after the date described in Subsection
(3)(a)(ii)
, the initial landowners
shall:
(i)
replace the board chair or a board member with an individual who is a resident of
the preliminary municipality; and
(ii)
notify the county and the lieutenant governor of the appointment, in writing.
(4)
(a)
Subject to Subsection
(4)(b)
, a preliminary municipality has all the powers and
duties of a municipality.
(b)
A preliminary municipality:
(i)
may not impose a tax;
(ii)
may enter into an interlocal agreement with a special district to provide utility
services to the preliminary municipality;
(iii)
has the same authority as another municipality to make decisions regarding
zoning and land use;
(iv)
may not receive an allocation of sales tax or gas tax;
and
(v)
may not exercise eminent domain authority
.
;
(vi)
shall comply with terms, conditions, or restrictions that were established in a
development agreement, if any, between the initial landowners and the county
before the feasibility request was filed; and
(vii)
may not modify or terminate any terms, conditions, or restrictions described in
Subsection
(4)(b)(vi)
without the county's approval.
(5)
As needed, the county shall provide all services and utility connections to the
preliminary municipality that the county provides other areas in the county if the
preliminary municipality:
(a)
pays the uniformly assessed rates for the services and utilities and reasonable
connection fees; and
(b)
complies with the county's established regulations and specifications for the
construction and connection of the local improvements.
(6)
The preliminary municipality shall maintain and repair any roadway that, on the day on
which the individual filed the feasibility request under Section
10-2a-502
:
(a)
existed within the preliminary municipality;
(b)
was within a public right of way that abuts the preliminary municipality; or
(c)
was within 1/2 mile of the preliminary municipality and connected to, or was
proposed in the feasibility request to be connected to, the preliminary municipality.
(7)
Before the preliminary municipality submits a petition to transition to a town, the
preliminary municipality shall select an independent third-party engineer to review and
approve all building permit applications within the preliminary municipality to ensure
compliance with the law.
(8)
Chapter 2, Classification, Boundaries, Consolidation, and Dissolution of Municipalities,
does not apply to a preliminary municipality.
Section 4. Section
10-2a-510
is amended to read:
10-2a-510
. Transitioning from a preliminary municipality to a town -- Petition --
Election of officers.
(1)
Within 30 days after the day on which the population of a preliminary municipality
exceeds 99 people, a person who filed the application to incorporate as a preliminary
municipality or a resident of the preliminary municipality shall file with the lieutenant
governor a petition to transition the preliminary municipality into a town.
(2)
A petition to transition a preliminary municipality into a town shall include:
(a)
a request that the lieutenant governor certify the transition of the preliminary
municipality to, and the incorporation of the preliminary municipality as, a town;
(b)
the name, address, and phone number of the person filing the request;
(c)
the map or plat of the preliminary municipality;
(d)
a legal description of the boundaries of the preliminary municipality;
(e)
information regarding the preliminary municipality, including:
(i)
the number of residences in the preliminary municipality;
(ii)
the population of the preliminary municipality;
(iii)
the number of adults and the number of children who reside in the preliminary
municipality; and
(iv)
information regarding the providers of municipal services and emergency
services to the preliminary municipality;
(f)
the proposed name for the town;
and
(g)
a signature sheet containing the names, addresses, and signatures of a majority of the
adult residents of the preliminary municipality, supporting the proposed name for the
town
.
;
(h)
certification that:
(i)
all damages to county property or infrastructure resulting from development of the
area have been assessed and paid in full; or
(ii)
no damages described in Subsection
(2)(h)(i)
exist; and
(i)
an agreement by the initial landowners to accept liability for any damages to county
property or infrastructure that:
(i)
occurred before the preliminary municipality's transition into a town but are
discovered after the transition; and
(ii)
are directly attributable to development of the area.
(3)
Within 30 days after the day on which a person files a petition to transition a
preliminary municipality into a town, the lieutenant governor shall:
(a)
determine whether the preliminary municipality has a population of more than 99
people;
(b)
examine the petition to determine whether the petition complies with Subsection
(2)
;
(c)
if the lieutenant governor determines that the preliminary municipality has a
population of more than 99 people and that the petition complies with Subsection
(2)
,
proceed to transition the preliminary municipality as a town in accordance with
Subsection
(4)
;
(d)
if the lieutenant governor determines that the preliminary municipality has a
population of less than 100 people, deny the petition, inform the person who filed the
petition of the determination, and request that the person refile the petition when the
population exceeds 99 people; and
(e)
if the lieutenant governor determines that the petition fails to comply with Subsection
(2)
, deny the petition, inform the person who filed the petition of the denial and the
reason for the denial, and request that the person correct and refile the petition.
(4)
After making the determination described in Subsection
(3)(c)
, the lieutenant governor
shall:
(a)
inform the person who filed the petition of the determination;
(b)
inform the county in which the preliminary municipality is located of the
determination; and
(c)
direct the county to conduct an election for mayor and city council of the future
town, to be held on the date of the next regular general election described in Section
20A-1-201
, or the next municipal general election described in Section
20A-1-202
,
that is at least 65 days after the day on which the lieutenant governor directs the
county to hold the election.
(5)
The county shall:
(a)
comply with the direction given by the lieutenant governor under Subsection
(4)(c)
;
(b)
determine the initial terms of the mayor and municipal council members to ensure
that:
(i)
the mayor and two of the municipal county members are elected in the next
municipal general election;
(ii)
the remaining municipal council members are elected at elections that result in
the staggering of council member terms; and
(iii)
the council members who receive the highest number of votes are assigned the
longer initial terms; and
(c)
provide notice of the election for the preliminary municipality as a class B notice
under Section
63G-30-102
, for at least three weeks before the day of the election.
(6)
The notice described in Subsection
(5)(c)
shall include:
(a)
a statement of the contents of the petition to transition the preliminary municipality
to a town;
(b)
a description of the area to be incorporated as a town;
(c)
the name of the town;
(d)
information about the deadline for an individual to file a declaration of candidacy to
become a candidate for mayor or municipal council;
(e)
information about the initial terms of office;
(f)
a statement of the date and time of the election and the location of polling places; and
(g)
a statement that the purpose of the election is to elect a mayor and a council to
govern the town upon the town's incorporation.
(7)
(a)
In addition to the notice described in Subsection
(6)
, the county clerk shall publish
and distribute, before the election is held, a voter information pamphlet:
(i)
in accordance with the procedures and requirements of Section
20A-7-402
;
(ii)
in consultation with the lieutenant governor; and
(iii)
in a manner that the county clerk determines is adequate.
(b)
The voter information pamphlet described in Subsection
(7)(a)
:
(i)
shall inform the public of the election and the purpose of the election; and
(ii)
may include additional information regarding the election of the elected officials
and the incorporation of the town.
(8)
An individual may not vote in the election described in this section unless the individual
is a registered voter who is a resident, as defined in Section
20A-1-102
, within the
boundaries of the preliminary municipality.
(9)
The town, incorporated under Subsection
(10)(b)
, shall pay to the county the cost of
running the election described in this section.
(10)
On the day after the day on which the canvass for the election is completed:
(a)
the elected mayor and council members shall take office and replace the board chair
and board members of the preliminary municipality;
(b)
the lieutenant governor shall issue a certification that the preliminary municipality
has transitioned to, and is incorporated as, a town; and
(c)
subject to Subsection
(14)
, the town holds all authority and power of a town.
(11)
The former mayor and council members for the preliminary municipality shall assist
the newly-elected mayor of the town and the newly-elected council members of the
town with the transition to a town and the transfer of power to the elected government of
the town.
(12)
The initial government of a town incorporated under this section is the five member
council form of government described in Chapter 3b, Part 4, Five-Member Council
Form of Municipal Government, with the mayor and counsel members elected at large.
(13)
Within 30 days after the day on which the mayor takes office under Subsection
(10)(a)
,
the mayor shall record the certification described in Subsection
(10)(b)
, and a copy of
the plat for the municipality, with the county recorder.
(14)
Until the mayor complies with Subsection
(13)
, the municipality may not:
(a)
levy or collect a property tax on property within the municipality;
(b)
levy or collect an assessment on property within the municipality; or
(c)
charge or collect a fee for a service provided to property within the municipality.
(15)
Section
10-2a-220
applies to a town incorporated under this section.
Section 5.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 6.
Retrospective operation.
This bill has retrospective operation to
February 1, 2026
.
2-20-26 8:50 AM