This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Thu, Mar 10, 2016 at 4:40 PM by lpoole.
1     
ELECTRIC VEHICLE INFRASTRUCTURE AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Patrice M. Arent

5     
Senate Sponsor: Kevin T. Van Tassell

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions related to an assessment for electric vehicle charging
10     infrastructure.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     authorizes an interlocal entity to issue a bond for electric vehicle charging
15     infrastructure;
16          ▸     requires that an assessment area for electric vehicle charging infrastructure be a
17     voluntary assessment area;
18          ▸     authorizes a county to provide electric vehicle charging infrastructure;
19          ▸     authorizes a local district to provide electric vehicle charging infrastructure;
20          ▸     authorizes a special service district to provide electric vehicle charging
21     infrastructure;
22          ▸     authorizes a military installation development authority to provide electric vehicle
23     charging infrastructure; and
24          ▸     makes technical changes.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:

28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          11-13-218, as last amended by Laws of Utah 2015, Chapter 265
32          11-42-102, as last amended by Laws of Utah 2015, Chapter 396
33          11-42-103, as last amended by Laws of Utah 2015, Chapter 396
34          11-42-202, as last amended by Laws of Utah 2015, Chapters 349 and 396
35          11-42-209, as enacted by Laws of Utah 2013, Chapter 246
36          11-42-301, as last amended by Laws of Utah 2013, Chapter 246
37          11-42-408, as last amended by Laws of Utah 2013, Chapter 246
38          11-42-411, as last amended by Laws of Utah 2013, Chapter 246
39          17-50-335, as enacted by Laws of Utah 2013, Chapter 246
40          17B-1-202, as last amended by Laws of Utah 2014, Chapter 377
41          17D-1-201, as last amended by Laws of Utah 2013, Chapters 246 and 448
42          63H-1-201, as last amended by Laws of Utah 2015, Chapter 377
43     

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 11-13-218 is amended to read:
46          11-13-218. Authority of public agencies or interlocal entities to issue bonds --
47     Applicable provisions.
48          (1) A public agency may, in the same manner as it may issue bonds for its individual
49     acquisition of a facility or improvement or for constructing, improving, or extending a facility
50     or improvement, issue bonds to:
51          (a) acquire an interest in a jointly owned facility or improvement, a combination of a
52     jointly owned facility or improvement, or any other facility or improvement; or
53          (b) pay all or part of the cost of constructing, improving, or extending a jointly owned
54     facility or improvement, a combination of a jointly owned facility or improvement, or any other
55     facility or improvement.
56          (2) (a) An interlocal entity may issue bonds or notes under a resolution, trust indenture,
57     or other security instrument for the purpose of:
58          (i) financing its facilities or improvements; or

59          (ii) providing for or financing an energy efficiency upgrade [or], a renewable energy
60     system, or electric vehicle charging infrastructure in accordance with Title 11, Chapter 42,
61     Assessment Area Act.
62          (b) The bonds or notes may be sold at public or private sale, mature at such times and
63     bear interest at such rates, and have such other terms and security as the entity determines.
64          (c) The bonds or notes described in this Subsection (2) are not a debt of any public
65     agency that is a party to the agreement.
66          (3) The governing board may, by resolution, delegate to one or more officers of the
67     interlocal entity or to a committee of designated members of the governing board the authority
68     to:
69          (a) in accordance with and within the parameters set forth in the resolution, approve the
70     final interest rate, price, principal amount, maturity, redemption features, or other terms of a
71     bond or note; and
72          (b) approve and execute all documents relating to the issuance of the bond or note.
73          (4) Bonds and notes issued under this chapter are declared to be negotiable instruments
74     and their form and substance need not comply with the Uniform Commercial Code.
75          (5) (a) An interlocal entity shall issue bonds in accordance with, as applicable:
76          (i) Chapter 14, Local Government Bonding Act;
77          (ii) Chapter 27, Utah Refunding Bond Act;
78          (iii) this chapter; or
79          (iv) any other provision of state law that authorizes issuance of bonds by a public body.
80          (b) An interlocal entity is a public body as defined in Section 11-30-2.
81          Section 2. Section 11-42-102 is amended to read:
82          11-42-102. Definitions.
83          (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
84     that represent at least 40% of the frontage, area, taxable value, fair market value, lots, number
85     of connections, or equivalent residential units of the property proposed to be assessed,
86     according to the same assessment method by which the assessment is proposed to be levied,
87     after eliminating:
88          (a) protests relating to:
89          (i) property that has been deleted from a proposed assessment area; or

90          (ii) an improvement that has been deleted from the proposed improvements to be
91     provided to property within the proposed assessment area; and
92          (b) protests that have been withdrawn under Subsection 11-42-203(3).
93          (2) "Assessment area" means an area, or, if more than one area is designated, the
94     aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
95     local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
96     costs of improvements, operation and maintenance, or economic promotion activities that
97     benefit property within the area.
98          (3) "Assessment bonds" means bonds that are:
99          (a) issued under Section 11-42-605; and
100          (b) payable in part or in whole from assessments levied in an assessment area,
101     improvement revenues, and a guaranty fund or reserve fund.
102          (4) "Assessment fund" means a special fund that a local entity establishes under
103     Section 11-42-412.
104          (5) "Assessment lien" means a lien on property within an assessment area that arises
105     from the levy of an assessment, as provided in Section 11-42-501.
106          (6) "Assessment method" means the method:
107          (a) by which an assessment is levied against benefitted property, whether by frontage,
108     area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
109     unit, any combination of these methods, or any other method; and
110          (b) that, when applied to a benefitted property, accounts for an assessment that meets
111     the requirements of Section 11-42-409.
112          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
113     Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
114          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
115     11-42-404 that levies an assessment on benefitted property within an assessment area.
116          (9) "Benefitted property" means property within an assessment area that directly or
117     indirectly benefits from improvements, operation and maintenance, or economic promotion
118     activities.
119          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
120     anticipation of the issuance of assessment bonds.

121          (11) "Bonds" means assessment bonds and refunding assessment bonds.
122          (12) "Commercial area" means an area in which at least 75% of the property is devoted
123     to the interchange of goods or commodities.
124          (13) (a) "Commercial or industrial real property" means real property used directly or
125     indirectly or held for one of the following purposes or activities, regardless of whether the
126     purpose or activity is for profit:
127          (i) commercial;
128          (ii) mining;
129          (iii) industrial;
130          (iv) manufacturing;
131          (v) governmental;
132          (vi) trade;
133          (vii) professional;
134          (viii) a private or public club;
135          (ix) a lodge;
136          (x) a business; or
137          (xi) a similar purpose.
138          (b) "Commercial or industrial real property" includes real property that:
139          (i) is used as or held for dwelling purposes; and
140          (ii) contains more than four rental units.
141          (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
142     connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
143     electrical system, whether or not improvements are installed on the property.
144          (15) "Contract price" means:
145          (a) the cost of acquiring an improvement, if the improvement is acquired; or
146          (b) the amount payable to one or more contractors for the design, engineering,
147     inspection, and construction of an improvement.
148          (16) "Designation ordinance" means an ordinance adopted by a local entity under
149     Section 11-42-206 designating an assessment area.
150          (17) "Designation resolution" means a resolution adopted by a local entity under
151     Section 11-42-206 designating an assessment area.

152          (18) "Economic promotion activities" means activities that promote economic growth
153     in a commercial area of a local entity, including:
154          (a) sponsoring festivals and markets;
155          (b) promoting business investment or activities;
156          (c) helping to coordinate public and private actions; and
157          (d) developing and issuing publications designed to improve the economic well-being
158     of the commercial area.
159          (19) "Electric vehicle charging infrastructure" means equipment that is:
160          (a) permanently affixed to commercial or industrial real property; and
161          (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
162     plug-in hybrid vehicle as those terms are defined in Subsection 59-7-605(1).
163          [(19)] (20) "Energy efficiency upgrade" means an improvement that is permanently
164     affixed to commercial or industrial real property that is designed to reduce energy
165     consumption, including:
166          (a) insulation in:
167          (i) a wall, roof, floor, or foundation; or
168          (ii) a heating and cooling distribution system;
169          (b) a window or door, including:
170          (i) a storm window or door;
171          (ii) a multiglazed window or door;
172          (iii) a heat-absorbing window or door;
173          (iv) a heat-reflective glazed and coated window or door;
174          (v) additional window or door glazing;
175          (vi) a window or door with reduced glass area; or
176          (vii) other window or door modifications;
177          (c) an automatic energy control system;
178          (d) in a building or a central plant, a heating, ventilation, or air conditioning and
179     distribution system;
180          (e) caulk or weatherstripping;
181          (f) a light fixture that does not increase the overall illumination of a building unless an
182     increase is necessary to conform with the applicable building code;

183          (g) an energy recovery system;
184          (h) a daylighting system;
185          (i) measures to reduce the consumption of water, through conservation or more
186     efficient use of water, including:
187          (i) installation of low-flow toilets and showerheads;
188          (ii) installation of timer or timing systems for a hot water heater; or
189          (iii) installation of rain catchment systems; or
190          (j) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
191     measure by the governing body of a local entity.
192          [(20)] (21) "Environmental remediation activity" means a surface or subsurface
193     enhancement, effort, cost, initial or ongoing maintenance expense, facility, installation, system,
194     earth movement, or change to grade or elevation which improves the use, function, aesthetics,
195     or environmental condition of publically or privately owned property.
196          [(21)] (22) "Equivalent residential unit" means a dwelling, unit, or development that is
197     equal to a single-family residence in terms of the nature of its use or impact on an improvement
198     to be provided in the assessment area.
199          [(22)] (23) "Governing body" means:
200          (a) for a county, city, or town, the legislative body of the county, city, or town;
201          (b) for a local district, the board of trustees of the local district;
202          (c) for a special service district:
203          (i) the legislative body of the county, city, or town that established the special service
204     district, if no administrative control board has been appointed under Section 17D-1-301; or
205          (ii) the administrative control board of the special service district, if an administrative
206     control board has been appointed under Section 17D-1-301; and
207          (d) for the military installation development authority created in Section 63H-1-201,
208     the authority board, as defined in Section 63H-1-102.
209          [(23)] (24) "Guaranty fund" means the fund established by a local entity under Section
210     11-42-701.
211          [(24)] (25) "Improved property" means property upon which a residential, commercial,
212     or other building has been built.
213          [(25)] (26) "Improvement":

214          (a) (i) means a publicly owned infrastructure, system, or other facility, a publicly or
215     privately owned energy efficiency upgrade, a publicly or privately owned renewable energy
216     system, or publicly or privately owned environmental remediation activity that:
217          (A) a local entity is authorized to provide;
218          (B) the governing body of a local entity determines is necessary or convenient to
219     enable the local entity to provide a service that the local entity is authorized to provide; or
220          (C) a local entity is requested to provide through an interlocal agreement in accordance
221     with Title 11, Chapter 13, Interlocal Cooperation Act; and
222          (ii) includes facilities in an assessment area, including a private driveway, an irrigation
223     ditch, and a water turnout, that:
224          (A) can be conveniently installed at the same time as an infrastructure, system, or other
225     facility described in Subsection [(25)] (26)(a)(i); and
226          (B) are requested by a property owner on whose property or for whose benefit the
227     infrastructure, system, or other facility is being installed; or
228          (b) for a local district created to assess groundwater rights in accordance with Section
229     17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
230     groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
231          [(26)] (27) "Improvement revenues":
232          (a) means charges, fees, impact fees, or other revenues that a local entity receives from
233     improvements; and
234          (b) does not include revenue from assessments.
235          [(27)] (28) "Incidental refunding costs" means any costs of issuing refunding
236     assessment bonds and calling, retiring, or paying prior bonds, including:
237          (a) legal and accounting fees;
238          (b) charges of financial advisors, escrow agents, certified public accountant verification
239     entities, and trustees;
240          (c) underwriting discount costs, printing costs, the costs of giving notice;
241          (d) any premium necessary in the calling or retiring of prior bonds;
242          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
243     refund the outstanding prior bonds;
244          (f) any other costs that the governing body determines are necessary and proper to incur

245     in connection with the issuance of refunding assessment bonds; and
246          (g) any interest on the prior bonds that is required to be paid in connection with the
247     issuance of the refunding assessment bonds.
248          [(28)] (29) "Installment payment date" means the date on which an installment
249     payment of an assessment is payable.
250          [(29)] (30) "Interim warrant" means a warrant issued by a local entity under Section
251     11-42-601.
252          [(30)] (31) "Jurisdictional boundaries" means:
253          (a) for a county, the boundaries of the unincorporated area of the county; and
254          (b) for each other local entity, the boundaries of the local entity.
255          [(31)] (32) "Local district" means a local district under Title 17B, Limited Purpose
256     Local Government Entities - Local Districts.
257          [(32)] (33) "Local entity" means a county, city, town, special service district, local
258     district, an interlocal entity as defined in Section 11-13-103, a military installation development
259     authority created in Section 63H-1-201, or other political subdivision of the state.
260          [(33)] (34) "Local entity obligations" means assessment bonds, refunding assessment
261     bonds, interim warrants, and bond anticipation notes issued by a local entity.
262          [(34)] (35) "Mailing address" means:
263          (a) a property owner's last-known address using the name and address appearing on the
264     last completed real property assessment roll of the county in which the property is located; and
265          (b) if the property is improved property:
266          (i) the property's street number; or
267          (ii) the post office box, rural route number, or other mailing address of the property, if
268     a street number has not been assigned.
269          [(35)] (36) "Net improvement revenues" means all improvement revenues that a local
270     entity has received since the last installment payment date, less all amounts payable by the local
271     entity from those improvement revenues for operation and maintenance costs.
272          [(36)] (37) "Operation and maintenance costs":
273          (a) means the costs that a local entity incurs in operating and maintaining
274     improvements in an assessment area, whether or not those improvements have been financed
275     under this chapter; and

276          (b) includes service charges, administrative costs, ongoing maintenance charges, and
277     tariffs or other charges for electrical, water, gas, or other utility usage.
278          [(37)] (38) "Overhead costs" means the actual costs incurred or the estimated costs to
279     be incurred by a local entity in connection with an assessment area for appraisals, legal fees,
280     filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and
281     paying agent fees, publishing and mailing costs, costs of levying an assessment, recording
282     costs, and all other incidental costs.
283          [(38)] (39) "Prior assessment ordinance" means the ordinance levying the assessments
284     from which the prior bonds are payable.
285          [(39)] (40) "Prior assessment resolution" means the resolution levying the assessments
286     from which the prior bonds are payable.
287          [(40)] (41) "Prior bonds" means the assessment bonds that are refunded in part or in
288     whole by refunding assessment bonds.
289          [(41)] (42) "Project engineer" means the surveyor or engineer employed by or the
290     private consulting engineer engaged by a local entity to perform the necessary engineering
291     services for and to supervise the construction or installation of the improvements.
292          [(42)] (43) "Property" includes real property and any interest in real property, including
293     water rights and leasehold rights.
294          [(43)] (44) "Property price" means the price at which a local entity purchases or
295     acquires by eminent domain property to make improvements in an assessment area.
296          [(44)] (45) "Provide" or "providing," with reference to an improvement, includes the
297     acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
298     expansion of an improvement.
299          [(45)] (46) "Public agency" means:
300          (a) the state or any agency, department, or division of the state; and
301          (b) a political subdivision of the state.
302          [(46)] (47) "Reduced payment obligation" means the full obligation of an owner of
303     property within an assessment area to pay an assessment levied on the property after the
304     assessment has been reduced because of the issuance of refunding assessment bonds, as
305     provided in Section 11-42-608.
306          [(47)] (48) "Refunding assessment bonds" means assessment bonds that a local entity

307     issues under Section 11-42-607 to refund, in part or in whole, assessment bonds.
308          [(48)] (49) "Renewable energy system" means a product, a system, a device, or an
309     interacting group of devices that[: (a)] is permanently affixed to commercial or industrial real
310     property[;] and:
311          [(b)] (a) produces energy from renewable resources, including:
312          (i) a photovoltaic system;
313          (ii) a solar thermal system;
314          (iii) a wind system;
315          (iv) a geothermal system, including:
316          (A) a generation system;
317          (B) a direct-use system; or
318          (C) a ground source heat pump system;
319          (v) a microhydro system; or
320          (vi) any other renewable [sources] source system approved by the governing body of a
321     local entity[.]; or
322          (b) stores energy, including:
323          (i) a battery storage system; or
324          (ii) any other energy storing system approved by the governing body of a local entity.
325          [(49)] (50) "Reserve fund" means a fund established by a local entity under Section
326     11-42-702.
327          [(50)] (51) "Service" means:
328          (a) water, sewer, storm drainage, garbage collection, library, recreation,
329     communications, or electric service;
330          (b) economic promotion activities; or
331          (c) any other service that a local entity is required or authorized to provide.
332          [(51)] (52) "Special service district" [has the same meaning as] means the same as that
333     term is defined in Section 17D-1-102.
334          [(52)] (53) "Unassessed benefitted government property" means property that a local
335     entity may not assess in accordance with Section 11-42-408 but is benefitted by an
336     improvement, operation and maintenance, or economic promotion activities.
337          [(53)] (54) "Unimproved property" means property upon which no residential,

338     commercial, or other building has been built.
339          [(54)] (55) "Voluntary assessment area" means an assessment area that contains only
340     property whose owners have voluntarily consented to an assessment.
341          Section 3. Section 11-42-103 is amended to read:
342          11-42-103. Limit on effect of this chapter.
343          (1) Nothing in this chapter may be construed to authorize a local entity to provide an
344     improvement or service that the local entity is not otherwise authorized to provide.
345          (2) Notwithstanding Subsection (1), a local entity may provide a renewable energy
346     system, an energy efficiency upgrade, electric vehicle charging infrastructure, or an
347     environmental remediation activity that the local entity finds or determines to be in the public
348     interest.
349          Section 4. Section 11-42-202 is amended to read:
350          11-42-202. Requirements applicable to a notice of a proposed assessment area
351     designation.
352          (1) Each notice required under Subsection 11-42-201(2)(a) shall:
353          (a) state that the local entity proposes to:
354          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
355     assessment area;
356          (ii) provide an improvement to property within the proposed assessment area; and
357          (iii) finance some or all of the cost of improvements by an assessment on benefitted
358     property within the assessment area;
359          (b) describe the proposed assessment area by any reasonable method that allows an
360     owner of property in the proposed assessment area to determine that the owner's property is
361     within the proposed assessment area;
362          (c) describe, in a general and reasonably accurate way, the improvements to be
363     provided to the assessment area, including:
364          (i) the nature of the improvements; and
365          (ii) the location of the improvements, by reference to streets or portions or extensions
366     of streets or by any other means that the governing body chooses that reasonably describes the
367     general location of the improvements;
368          (d) state the estimated cost of the improvements as determined by a project engineer;

369          (e) for the version of notice mailed in accordance with Subsection (4)(b), state the
370     estimated total assessment specific to the benefitted property for which the notice is mailed;
371          (f) state that the local entity proposes to levy an assessment on benefitted property
372     within the assessment area to pay some or all of the cost of the improvements according to the
373     estimated benefits to the property from the improvements;
374          (g) if applicable, state that an unassessed benefitted government property will receive
375     improvements for which the cost will be allocated proportionately to the remaining benefitted
376     properties within the proposed assessment area and that a description of each unassessed
377     benefitted government property is available for public review at the location or website
378     described in Subsection (6);
379          (h) state the assessment method by which the governing body proposes to levy the
380     assessment, including, if the local entity is a municipality or county, whether the assessment
381     will be collected:
382          (i) by directly billing a property owner; or
383          (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317
384     and in compliance with Section 11-42-401;
385          (i) state:
386          (i) the date described in Section 11-42-203 and the location at which protests against
387     designation of the proposed assessment area or of the proposed improvements are required to
388     be filed;
389          (ii) the method by which the governing body will determine the number of protests
390     required to defeat the designation of the proposed assessment area or acquisition or
391     construction of the proposed improvements; and
392          (iii) in large, boldface, and conspicuous type that a property owner must protest the
393     designation of the assessment area in writing if the owner objects to the area designation or
394     being assessed for the proposed improvements, operation and maintenance costs, or economic
395     promotion activities;
396          (j) state the date, time, and place of the public hearing required in Section 11-42-204;
397          (k) if the governing body elects to create and fund a reserve fund under Section
398     11-42-702, include a description of:
399          (i) how the reserve fund will be funded and replenished; and

400          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
401     the bonds;
402          (l) if the governing body intends to designate a voluntary assessment area, include a
403     property owner consent form that:
404          (i) estimates the total assessment to be levied against the particular parcel of property;
405          (ii) describes any additional benefits that the governing body expects the assessed
406     property to receive from the improvements; and
407          (iii) designates the date and time by which the fully executed consent form is required
408     to be submitted to the governing body;
409          (m) if the local entity intends to levy an assessment to pay operation and maintenance
410     costs or for economic promotion activities, include:
411          (i) a description of the operation and maintenance costs or economic promotion
412     activities to be paid by assessments and the initial estimated annual assessment to be levied;
413          (ii) a description of how the estimated assessment will be determined;
414          (iii) a description of how and when the governing body will adjust the assessment to
415     reflect the costs of:
416          (A) in accordance with Section 11-42-406, current economic promotion activities; or
417          (B) current operation and maintenance costs;
418          (iv) a description of the method of assessment if different from the method of
419     assessment to be used for financing any improvement; and
420          (v) a statement of the maximum number of years over which the assessment will be
421     levied for:
422          (A) operation and maintenance costs; or
423          (B) economic promotion activities;
424          (n) if the governing body intends to divide the proposed assessment area into
425     classifications under Subsection 11-42-201(1)(b), include a description of the proposed
426     classifications;
427          (o) if applicable, state the portion and value of the improvement that will be increased
428     in size or capacity to serve property outside of the assessment area and how the increases will
429     be financed; and
430          (p) state whether the improvements will be financed with a bond and, if so, the

431     currently estimated interest rate and term of financing, subject to Subsection (2), for which the
432     benefitted properties within the assessment area may be obligated.
433          (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
434     interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
435     subject to the market rate at the time of the issuance of the bond.
436          (3) A notice required under Subsection 11-42-201(2)(a) may contain other information
437     that the governing body considers to be appropriate, including:
438          (a) the amount or proportion of the cost of the improvement to be paid by the local
439     entity or from sources other than an assessment;
440          (b) the estimated total amount of each type of assessment for the various improvements
441     to be financed according to the method of assessment that the governing body chooses; and
442          (c) provisions for any improvements described in Subsection
443     11-42-102[(25)](26)(a)(ii).
444          (4) Each notice required under Subsection 11-42-201(2)(a) shall:
445          (a) (i) (A) be published in a newspaper of general circulation within the local entity's
446     jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
447     least five but not more than 20 days before the day of the hearing required in Section
448     11-42-204; or
449          (B) if there is no newspaper of general circulation within the local entity's jurisdictional
450     boundaries, be posted in at least three public places within the local entity's jurisdictional
451     boundaries at least 20 but not more than 35 days before the day of the hearing required in
452     Section 11-42-204; and
453          (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
454     four weeks before the deadline for filing protests specified in the notice under Subsection
455     (1)(i); and
456          (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
457     the notice under Subsection (4)(a) to each owner of property to be assessed within the proposed
458     assessment area at the property owner's mailing address.
459          (5) (a) The local entity may record the version of the notice that is published or posted
460     in accordance with Subsection (4)(a) with the office of the county recorder, by legal description
461     and tax identification number as identified in county records, against the property proposed to

462     be assessed.
463          (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
464     after the day on which the local entity records the notice if the local entity has failed to adopt
465     the designation ordinance or resolution under Section 11-42-201 designating the assessment
466     area for which the notice was recorded.
467          (6) A local entity shall make available on the local entity's website, or, if no website is
468     available, at the local entity's place of business, the address and type of use of each unassessed
469     benefitted government property described in Subsection (1)(g).
470          (7) If a governing body fails to provide actual or constructive notice under this section,
471     the local entity may not assess a levy against a benefitted property omitted from the notice
472     unless:
473          (a) the property owner gives written consent;
474          (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
475     not object to the levy of the assessment before the final hearing of the board of equalization; or
476          (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
477     of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
478     Subsection 11-42-207(1)(d)(i) are met.
479          Section 5. Section 11-42-209 is amended to read:
480          11-42-209. Designation of assessment area for an energy efficiency upgrade, a
481     renewable energy system, or electric vehicle charging infrastructure -- Requirements.
482          (1) A governing body may not adopt a designation ordinance or resolution to designate
483     an assessment area for an energy efficiency upgrade [or], a renewable energy system, or electric
484     vehicle charging infrastructure unless the assessment area is a voluntary assessment area.
485          (2) A local entity may not include property in a voluntary assessment area described in
486     Subsection (1) unless an owner of property located in the assessment area provides to the local
487     entity:
488          (a) the written consent of each person or institution holding a lien on the property; and
489          (b) evidence:
490          (i) that there are no delinquent taxes, special assessments, or water or sewer charges on
491     the property;
492          (ii) that the property is not subject to a trust deed or other lien on which there is a

493     recorded notice of default, foreclosure, or delinquency that has not been cured; and
494          (iii) that there are no involuntary liens, including a lien on real property, or on the
495     proceeds of a contract relating to real property, for services, labor, or materials furnished in
496     connection with the construction or improvement of the property.
497          Section 6. Section 11-42-301 is amended to read:
498          11-42-301. Improvements made only under contract let to lowest responsive,
499     responsible bidder -- Publishing notice -- Sealed bids -- Procedure -- Exceptions to
500     contract requirement.
501          (1) Except as otherwise provided in this section, a local entity may make improvements
502     in an assessment area only under contract let to the lowest responsive, responsible bidder for
503     the kind of service, material, or form of construction that the local entity's governing body
504     determines in compliance with any applicable local entity ordinances.
505          (2) A local entity may:
506          (a) divide improvements into parts;
507          (b) (i) let separate contracts for each part; or
508          (ii) combine multiple parts into the same contract; and
509          (c) let a contract on a unit basis.
510          (3) (a) A local entity may not let a contract until after publishing notice as provided in
511     Subsection (3)(b):
512          (i) at least one time in a newspaper of general circulation within the boundaries of the
513     local entity at least 15 days before the date specified for receipt of bids; and
514          (ii) in accordance with Section 45-1-101, at least 15 days before the date specified for
515     receipt of bids.
516          (b) Each notice under Subsection (3)(a) shall notify contractors that the local entity will
517     receive sealed bids at a specified time and place for the construction of the improvements.
518          (c) Notwithstanding a local entity's failure, through inadvertence or oversight, to
519     publish the notice or to publish the notice within 15 days before the date specified for receipt of
520     bids, the governing body may proceed to let a contract for the improvements if the local entity
521     receives at least three sealed and bona fide bids from contractors by the time specified for the
522     receipt of bids.
523          (d) A local entity may publish a notice required under this Subsection (3) at the same

524     time as a notice under Section 11-42-202.
525          (4) (a) A local entity may accept as a sealed bid a bid that is:
526          (i) manually sealed and submitted; or
527          (ii) electronically sealed and submitted.
528          (b) The governing body or project engineer shall, at the time specified in the notice
529     under Subsection (3), open and examine the bids.
530          (c) In open session, the governing body:
531          (i) shall declare the bids; and
532          (ii) may reject any or all bids if the governing body considers the rejection to be for the
533     public good.
534          (d) The local entity may award the contract to the lowest responsive, responsible bidder
535     even if the price bid by that bidder exceeds the estimated costs as determined by the project
536     engineer.
537          (e) A local entity may in any case:
538          (i) refuse to award a contract;
539          (ii) obtain new bids after giving a new notice under Subsection (3);
540          (iii) determine to abandon the assessment area; or
541          (iv) not make some of the improvements proposed to be made.
542          (5) A local entity is not required to let a contract as provided in this section for:
543          (a) an improvement or part of an improvement the cost of which or the making of
544     which is donated or contributed;
545          (b) an improvement that consists of furnishing utility service or maintaining
546     improvements;
547          (c) labor, materials, or equipment supplied by the local entity;
548          (d) the local entity's acquisition of completed or partially completed improvements in
549     an assessment area;
550          (e) design, engineering, and inspection costs incurred with respect to the construction
551     of improvements in an assessment area; or
552          (f) additional work performed in accordance with the terms of a contract duly let to the
553     lowest responsive, responsible bidder.
554          (6) A local entity may itself furnish utility service and maintain improvements within

555     an assessment area.
556          (7) (a) A local entity may acquire completed or partially completed improvements in an
557     assessment area, but may not pay an amount for those improvements that exceeds their fair
558     market value.
559          (b) Upon the local entity's payment for completed or partially completed
560     improvements, title to the improvements shall be conveyed to the local entity or another public
561     agency.
562          (8) The provisions of Title 11, Chapter 39, Building Improvements and Public Works
563     Projects, and Section 72-6-108 do not apply to improvements to be constructed in an
564     assessment area.
565          (9) (a) Except as provided in Subsection (9)(b), this section does not apply to a
566     voluntary assessment area designated for the purpose of levying an assessment for an energy
567     efficiency upgrade [or], a renewable energy system, or electric vehicle charging infrastructure.
568          (b) (i) A local entity that designates a voluntary assessment area described in
569     Subsection (9)(a) shall provide to each owner of property to be assessed a list of service
570     providers authorized by the local entity to provide the energy efficiency upgrade [or],
571     renewable energy system, or electric vehicle charging infrastructure.
572          (ii) A property owner described in Subsection (9)(b)(i) shall select a service provider
573     from the list to provide the energy efficiency upgrade [or], renewable energy system, or electric
574     vehicle charging infrastructure for the owner's property.
575          Section 7. Section 11-42-408 is amended to read:
576          11-42-408. Assessment against government land prohibited -- Exception.
577          (1) (a) Except as provided in Subsection (2), a local entity may not levy an assessment
578     against property owned by the federal government or a public agency, even if the property
579     benefits from the improvement.
580          (b) Notwithstanding Subsection (1)(a), a public agency may contract with a local
581     entity:
582          (i) for the local entity to provide an improvement to property owned by the public
583     agency; and
584          (ii) to pay for the improvement provided by the local entity.
585          (c) Nothing in this section may be construed to prevent a local entity from imposing on

586     and collecting from a public agency, or a public agency from paying, a reasonable charge for a
587     service rendered or material supplied by the local entity to the public agency, including a
588     charge for water, sewer, or lighting service.
589          (2) Notwithstanding Subsection (1):
590          (a) a local entity may continue to levy and enforce an assessment against property
591     acquired by a public agency within an assessment area if the acquisition occurred after the
592     assessment area was designated;
593          (b) property that is subject to an assessment lien at the time it is acquired by a public
594     agency continues to be subject to the lien and to enforcement of the lien if the assessment and
595     interest on the assessment are not paid when due; and
596          (c) a local entity may levy an assessment against property owned by the federal
597     government or a public agency if the federal government or public agency voluntarily enters
598     into a voluntary assessment area for the purpose of financing an energy efficiency upgrade [or],
599     a renewable energy system, or electric vehicle charging infrastructure.
600          Section 8. Section 11-42-411 is amended to read:
601          11-42-411. Installment payment of assessments.
602          (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
603     Subsection (1)(b) Ŝ→ and except as provided in Subsection (2)(c) ←Ŝ , provide that some or all
603a     of the assessment be paid in installments over a
604     period not to exceed 20 years from the effective date of the resolution or ordinance.
605          (b) If an assessment resolution or ordinance provides that some or all of the assessment
606     be paid in installments for a period exceeding 10 years from the effective date of the resolution
607     or ordinance, the governing body:
608          (i) shall make a determination that:
609          (A) the improvement for which the assessment is made has a reasonable useful life for
610     the full period during which installments are to be paid; or
611          (B) it would be in the best interests of the local entity and the property owners for
612     installments to be paid for more than 10 years; and
613          (ii) may provide in the resolution or ordinance that no assessment is payable during
614     some or all of the period ending three years after the effective date of the resolution or
615     ordinance.
616          (2) An assessment resolution or ordinance that provides for the assessment to be paid

617     in installments may provide that the unpaid balance be paid over the period of time that
618     installments are payable:
619          (a) in substantially equal installments of principal;
620          (b) in substantially equal installments of principal and interest; or
621          (c) for an assessment levied for an energy efficiency upgrade [or], a renewable energy
622     system, or electric vehicle charging infrastructure Ŝ→ :
622a          (i) ←Ŝ in accordance with the assessment resolution
623     or ordinance Ŝ→ [
.] ; and
623a          (ii) over a period not to exceed 30 years from the effective date of the resolution or
623b     ordinance. ←Ŝ
624          (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
625     paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
626     of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
627     variable rates, as determined by the governing body, from the effective date of the resolution or
628     ordinance or another date specified in the resolution or ordinance.
629          (b) If the assessment is for operation and maintenance costs or for the costs of
630     economic promotion activities:
631          (i) a local entity may charge interest only from the date each installment is due; and
632          (ii) the first installment of an assessment shall be due 15 days after the effective date of
633     the assessment resolution or ordinance.
634          (c) If an assessment resolution or ordinance provides for the unpaid balance of the
635     assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
636     specify:
637          (i) the basis upon which the rate is to be determined from time to time;
638          (ii) the manner in which and schedule upon which the rate is to be adjusted; and
639          (iii) a maximum rate that the assessment may bear.
640          (4) Interest payable on assessments may include:
641          (a) interest on assessment bonds;
642          (b) ongoing local entity costs incurred for administration of the assessment area; and
643          (c) any costs incurred with respect to:
644          (i) securing a letter of credit or other instrument to secure payment or repurchase of
645     bonds; or
646          (ii) retaining a marketing agent or an indexing agent.
647          (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
648     to the amount of each installment annually or at more frequent intervals as provided in the
649     assessment resolution or ordinance.
650          (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
651     economic promotion activities, a property owner may pay some or all of the entire assessment
652     without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
653          (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
654     time prepay some or all of the assessment levied against the owner's property.
655          (c) A local entity may require a prepayment of an installment to include:
656          (i) an amount equal to the interest that would accrue on the assessment to the next date
657     on which interest is payable on bonds issued in anticipation of the collection of the assessment;
658     and
659          (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
660     designated by the governing body, to assure the availability of money to pay:
661          (A) interest that becomes due and payable on those bonds; and
662          (B) any premiums that become payable on bonds that are called in order to use the
663     money from the prepaid assessment installment.
664          Section 9. Section 17-50-335 is amended to read:
665          17-50-335. Energy efficiency upgrade, renewable energy system, or electric
666     vehicle charging infrastructure.
667          A county may provide or finance an energy efficiency upgrade [or], a renewable energy
668     system, or electric vehicle charging infrastructure as defined in Section 11-42-102, in a
669     designated voluntary assessment area in accordance with Title 11, Chapter 42, Assessment
670     Area Act.
671          Section 10. Section 17B-1-202 is amended to read:
672          17B-1-202. Local district may be created -- Services that may be provided --
673     Limitations.
674          (1) (a) A local district may be created as provided in this part to provide within its
675     boundaries service consisting of:
676          (i) the operation of an airport;
677          (ii) the operation of a cemetery;
678          (iii) fire protection, paramedic, and emergency services, including consolidated 911

679     and emergency dispatch services;
680          (iv) garbage collection and disposal;
681          (v) health care, including health department or hospital service;
682          (vi) the operation of a library;
683          (vii) abatement or control of mosquitos and other insects;
684          (viii) the operation of parks or recreation facilities or services;
685          (ix) the operation of a sewage system;
686          (x) the construction and maintenance of a right-of-way, including:
687          (A) a curb;
688          (B) a gutter;
689          (C) a sidewalk;
690          (D) a street;
691          (E) a road;
692          (F) a water line;
693          (G) a sewage line;
694          (H) a storm drain;
695          (I) an electricity line;
696          (J) a communications line;
697          (K) a natural gas line; or
698          (L) street lighting;
699          (xi) transportation, including public transit and providing streets and roads;
700          (xii) the operation of a system, or one or more components of a system, for the
701     collection, storage, retention, control, conservation, treatment, supplying, distribution, or
702     reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
703     the system is operated on a wholesale or retail level or both;
704          (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
705     groundwater right for the development and execution of a groundwater management plan in
706     cooperation with and approved by the state engineer in accordance with Section 73-5-15;
707          (xiv) law enforcement service;
708          (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
709     or the conversion to underground of an existing electric utility line;

710          (xvi) the control or abatement of earth movement or a landslide;
711          (xvii) the operation of animal control services and facilities; or
712          (xviii) an energy efficiency upgrade [or], a renewable energy system, or electric vehicle
713     charging infrastructure as defined in Section 11-42-102, in accordance with Title 11, Chapter
714     42, Assessment Area Act.
715          (b) Each local district that provides the service of the underground installation of an
716     electric utility line or the conversion to underground of an existing electric utility line shall, in
717     installing or converting the line, provide advance notice to and coordinate with the utility that
718     owns the line.
719          (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
720     the banking of groundwater rights by a local district in a critical management area as defined in
721     Section 73-5-15 following the adoption of a groundwater management plan by the state
722     engineer under Section 73-5-15.
723          (i) A local district may manage the groundwater rights it acquires under Subsection
724     17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater management plan
725     described in this Subsection (1)(c).
726          (ii) A groundwater right held by a local district to satisfy the provisions of a
727     groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4.
728          (iii) (A) A local district may divest itself of a groundwater right subject to a
729     determination that the groundwater right is not required to facilitate the groundwater
730     management plan described in this Subsection (1)(c).
731          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
732     73-1-4 beginning on the date of divestiture.
733          (iv) Upon a determination by the state engineer that an area is no longer a critical
734     management area as defined in Section 73-5-15, a groundwater right held by the local district is
735     subject to Section 73-1-4.
736          (v) A local district created in accordance with Subsection (1)(a)(xiii) to develop and
737     execute a groundwater management plan may hold or acquire a right to surface waters that are
738     naturally tributary to the groundwater basin subject to the groundwater management plan if the
739     surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
740     accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.

741          (2) For purposes of this section:
742          (a) "Operation" means all activities involved in providing the indicated service
743     including acquisition and ownership of property reasonably necessary to provide the indicated
744     service and acquisition, construction, and maintenance of facilities and equipment reasonably
745     necessary to provide the indicated service.
746          (b) "System" means the aggregate of interrelated components that combine together to
747     provide the indicated service including, for a sewage system, collection and treatment.
748          (3) (a) A local district may not be created to provide and may not after its creation
749     provide more than four of the services listed in Subsection (1).
750          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
751     more than four services if, before April 30, 2007, the local district was authorized to provide
752     those services.
753          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
754     provide and may not after its creation provide to an area the same service that may already be
755     provided to that area by another political subdivision, unless the other political subdivision
756     gives its written consent.
757          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
758     as another political subdivision if it operates a component of a system that is different from a
759     component operated by another political subdivision but within the same:
760          (i) sewage system; or
761          (ii) water system.
762          (5) (a) Except for a local district in the creation of which an election is not required
763     under Subsection 17B-1-214(3)(d), the area of a local district may include all or part of the
764     unincorporated area of one or more counties and all or part of one or more municipalities.
765          (b) The area of a local district need not be contiguous.
766          (6) For a local district created before May 5, 2008, the authority to provide fire
767     protection service also includes the authority to provide:
768          (a) paramedic service; and
769          (b) emergency service, including hazardous materials response service.
770          (7) A local district created before May 11, 2010, authorized to provide the construction
771     and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection

772     (1)(a)(x) on or after May 11, 2010.
773          (8) A local district created before May 10, 2011, authorized to provide culinary,
774     irrigation, sewage, or storm water services may provide a service described in Subsection
775     (1)(a)(xii) on or after May 10, 2011.
776          (9) A local district may not be created under this chapter for two years after the date on
777     which a local district is dissolved as provided in Section 17B-1-217 if the local district
778     proposed for creation:
779          (a) provides the same or a substantially similar service as the dissolved local district;
780     and
781          (b) is located in substantially the same area as the dissolved local district.
782          Section 11. Section 17D-1-201 is amended to read:
783          17D-1-201. Services that a special service district may be created to provide.
784          As provided in this part, a county or municipality may create a special service district to
785     provide any combination of the following services:
786          (1) water;
787          (2) sewerage;
788          (3) drainage;
789          (4) flood control;
790          (5) garbage collection and disposal;
791          (6) health care;
792          (7) transportation, including the receipt of federal secure rural school funds under
793     Section 51-9-603 for the purposes of constructing, improving, repairing, or maintaining public
794     roads;
795          (8) recreation;
796          (9) fire protection, including:
797          (a) emergency medical services, ambulance services, and search and rescue services, if
798     fire protection service is also provided;
799          (b) Firewise Communities programs and the development of community wildfire
800     protection plans; and
801          (c) the receipt of federal secure rural school funds as provided under Section 51-9-603
802     for the purposes of carrying out Firewise Communities programs, developing community

803     wildfire protection plans, and performing emergency services, including firefighting on federal
804     land and other services authorized under this Subsection (9);
805          (10) providing, operating, and maintaining correctional and rehabilitative facilities and
806     programs for municipal, state, and other detainees and prisoners;
807          (11) street lighting;
808          (12) consolidated 911 and emergency dispatch;
809          (13) animal shelter and control;
810          (14) receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease
811     Funds, and expending those funds to provide construction and maintenance of public facilities,
812     traditional governmental services, and planning, as a means for mitigating impacts from
813     extractive mineral industries;
814          (15) in a county of the first class, extended police protection;
815          (16) control or abatement of earth movement or a landslide;
816          (17) an energy efficiency upgrade [or], a renewable energy system, or electric vehicle
817     charging infrastructure as defined in Section 11-42-102, in accordance with Title 11, Chapter
818     42, Assessment Area Act; or
819          (18) cemetery.
820          Section 12. Section 63H-1-201 is amended to read:
821          63H-1-201. Creation of military installation development authority -- Status and
822     powers of authority -- Limitation.
823          (1) There is created a military installation development authority.
824          (2) The authority is:
825          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
826     succession and statewide jurisdiction, whose purpose is to facilitate the development of
827     military land in a project area;
828          (b) a political subdivision of the state; and
829          (c) a public corporation, as defined in Section 63E-1-102.
830          (3) The authority may:
831          (a) as provided in this chapter, facilitate the development of land within one or more
832     project areas, including the ongoing operation of facilities within a project area;
833          (b) sue and be sued;

834          (c) enter into contracts generally;
835          (d) buy, obtain an option upon, or otherwise acquire any interest in real or personal
836     property:
837          (i) in a project area; or
838          (ii) outside a project area for publicly owned infrastructure and improvements, if the
839     board considers the purchase, option, or other interest acquisition to be necessary for fulfilling
840     the authority's development objectives;
841          (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
842     personal property;
843          (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
844          (i) in a project area; or
845          (ii) outside a project area, if the board considers the lease to be necessary for fulfilling
846     the authority's development objectives;
847          (g) provide for the development of land within a project area under one or more
848     contracts;
849          (h) exercise powers and perform functions under a contract, as authorized in the
850     contract;
851          (i) exercise exclusive police power within a project area to the same extent as though
852     the authority were a municipality, including the collection of regulatory fees;
853          (j) receive the property tax allocation and other taxes and fees as provided in this
854     chapter;
855          (k) accept financial or other assistance from any public or private source for the
856     authority's activities, powers, and duties, and expend any funds so received for any of the
857     purposes of this chapter;
858          (l) borrow money, contract with, or accept financial or other assistance from the federal
859     government, a public entity, or any other source for any of the purposes of this chapter and
860     comply with any conditions of the loan, contract, or assistance;
861          (m) issue bonds to finance the undertaking of any development objectives of the
862     authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
863     Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
864          (n) hire employees, including contract employees;

865          (o) transact other business and exercise all other powers provided for in this chapter;
866          (p) enter into a development agreement with a developer of land within a project area;
867          (q) enter into an agreement with a political subdivision of the state under which the
868     political subdivision provides one or more municipal services within a project area;
869          (r) enter into an agreement with a private contractor to provide one or more municipal
870     services within a project area;
871          (s) provide for or finance an energy efficiency upgrade [or], a renewable energy
872     system, or electric vehicle charging infrastructure as defined in Section 11-42-102, in
873     accordance with Title 11, Chapter 42, Assessment Area Act;
874          (t) exercise powers and perform functions that the authority is authorized by statute to
875     exercise or perform; and
876          (u) enter into an agreement with the federal government or an agency of the federal
877     government under which the federal government or agency:
878          (i) provides law enforcement services only to military land within a project area; and
879          (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
880     agency of the state or a political subdivision of the state.
881          (4) The authority may not itself provide law enforcement service or fire protection
882     service within a project area but may enter into an agreement for one or both of those services,
883     as provided in Subsection (3)(q).






Legislative Review Note
Office of Legislative Research and General Counsel