S.B. 69

1

ASSESSMENTS AREA AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne L. Niederhauser
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions related to an assessment area notice, a right to protest an
10 assessment area, and enacts language related to levying and collecting a property tax.
11 Highlighted Provisions:
12 This bill:
13 . amends definitions;
14 . amends the requirements of a notice of a proposed assessment area designation;
15 . enacts language related to a waiver of a right to protest;
16 . authorizes a municipality or county to levy an assessment against property by
17 levying and collecting a property tax; and
18 . makes technical corrections.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 11-42-102, as last amended by Laws of Utah 2011, Chapters 68 and 388
26 11-42-202, as last amended by Laws of Utah 2011, Chapter 68
27 11-42-203, as last amended by Laws of Utah 2009, Chapter 246

28 11-42-401, as last amended by Laws of Utah 2010, Chapter 238
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 11-42-102 is amended to read:
32 11-42-102. Definitions.
33 (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
34 that represent at least 50% of the frontage, area, taxable value, fair market value, lots, number
35 of connections, or equivalent residential units of the property proposed to be assessed,
36 according to the same assessment method by which the assessment is proposed to be levied,
37 after eliminating:
38 (a) protests relating to:
39 (i) property that has been deleted from a proposed assessment area; or
40 (ii) an improvement that has been deleted from the proposed improvements to be
41 provided to property within the proposed assessment area; and
42 (b) protests that have been withdrawn under Subsection 11-42-203 (3).
43 (2) "Assessment area" means an area, or, if more than one area is designated, the
44 aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
45 local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
46 costs of improvements, operation and maintenance, or economic promotion activities that
47 benefit property within the area.
48 (3) "Assessment bonds" means bonds that are:
49 (a) issued under Section 11-42-605 ; and
50 (b) payable in part or in whole from assessments levied in an assessment area,
51 improvement revenues, and a guaranty fund or reserve fund.
52 (4) "Assessment fund" means a special fund that a local entity establishes under
53 Section 11-42-412 .
54 (5) "Assessment lien" means a lien on property within an assessment area that arises
55 from the levy of an assessment, as provided in Section 11-42-501 .
56 (6) "Assessment method" means the method by which an assessment is levied against
57 property, whether by frontage, area, taxable value, fair market value, lot, parcel, number of
58 connections, equivalent residential unit, any combination of these methods, or any other

59 method that equitably reflects the benefit received from the improvement.
60 (7) "Assessment ordinance" means an ordinance adopted by a local entity under
61 Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
62 (8) "Assessment resolution" means a resolution adopted by a local entity under Section
63 11-42-404 that levies an assessment on benefitted property within an assessment area.
64 (9) "Benefitted property" means property within an assessment area that directly or
65 indirectly benefits from improvements, operation and maintenance, or economic promotion
66 activities.
67 (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
68 anticipation of the issuance of assessment bonds.
69 (11) "Bonds" means assessment bonds and refunding assessment bonds.
70 (12) "Commercial area" means an area in which at least 75% of the property is devoted
71 to the interchange of goods or commodities.
72 (13) "Connection fee" means a fee charged by a local entity to pay for the costs of
73 connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
74 electrical system, whether or not improvements are installed on the property.
75 (14) "Contract price" means:
76 (a) the cost of acquiring an improvement, if the improvement is acquired; or
77 (b) the amount payable to one or more contractors for the design, engineering,
78 inspection, and construction of an improvement.
79 (15) "Designation ordinance" means an ordinance adopted by a local entity under
80 Section 11-42-206 designating an assessment area.
81 (16) "Designation resolution" means a resolution adopted by a local entity under
82 Section 11-42-206 designating an assessment area.
83 (17) "Economic promotion activities" means activities that promote economic growth
84 in a commercial area of a local entity, including:
85 (a) sponsoring festivals and markets;
86 (b) promoting business investment or activities;
87 (c) helping to coordinate public and private actions; and
88 (d) developing and issuing publications designed to improve the economic well-being
89 of the commercial area.

90 (18) "Equivalent residential unit" means a dwelling, unit, or development that is equal
91 to a single-family residence in terms of the nature of its use or impact on an improvement to be
92 provided in the assessment area.
93 (19) "Governing body" means:
94 (a) for a county, city, or town, the legislative body of the county, city, or town;
95 (b) for a local district, the board of trustees of the local district;
96 (c) for a special service district:
97 (i) the legislative body of the county, city, or town that established the special service
98 district, if no administrative control board has been appointed under Section 17D-1-301 ; or
99 (ii) the administrative control board of the special service district, if an administrative
100 control board has been appointed under Section 17D-1-301 ; and
101 (d) for the military installation development authority created in Section 63H-1-201 ,
102 the authority board, as defined in Section 63H-1-102 .
103 (20) "Guaranty fund" means the fund established by a local entity under Section
104 11-42-701 .
105 (21) "Improved property" means property proposed to be assessed within an
106 assessment area upon which a residential, commercial, or other building has been built.
107 (22) "Improvement":
108 (a) (i) means any publicly owned infrastructure, system, or other facility that:
109 (A) a local entity is authorized to provide; or
110 (B) the governing body of a local entity determines is necessary or convenient to
111 enable the local entity to provide a service that the local entity is authorized to provide; and
112 (ii) includes facilities in an assessment area, including a private driveway, an irrigation
113 ditch, and a water turnout, that:
114 (A) can be conveniently installed at the same time as an infrastructure, system, or other
115 facility described in Subsection (22)(a)(i); and
116 (B) are requested by a property owner on whose property or for whose benefit the
117 infrastructure, system, or other facility is being installed; [or]
118 (b) any privately owned infrastructure, system, or other facility that:
119 (i) the governing body of a local entity determines would be in the interest of the
120 general public to assess; and

121 (ii) the owners of property for whose benefit an assessment would be levied request an
122 assessment for, whether or not those improvements have been financed under this chapter; or
123 [(b)] (c) for a local district created to assess groundwater rights in accordance with
124 Section 17B-1-202 , means a system or plan to regulate groundwater withdrawals within a
125 specific groundwater basin in accordance with Sections 17B-1-202 and 73-5-15 .
126 (23) "Improvement revenues":
127 (a) means charges, fees, impact fees, or other revenues that a local entity receives from
128 improvements; and
129 (b) does not include revenue from assessments.
130 (24) "Incidental refunding costs" means any costs of issuing refunding assessment
131 bonds and calling, retiring, or paying prior bonds, including:
132 (a) legal and accounting fees;
133 (b) charges of financial advisors, escrow agents, certified public accountant verification
134 entities, and trustees;
135 (c) underwriting discount costs, printing costs, the costs of giving notice;
136 (d) any premium necessary in the calling or retiring of prior bonds;
137 (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
138 refund the outstanding prior bonds;
139 (f) any other costs that the governing body determines are necessary or desirable to
140 incur in connection with the issuance of refunding assessment bonds; and
141 (g) any interest on the prior bonds that is required to be paid in connection with the
142 issuance of the refunding assessment bonds.
143 (25) "Installment payment date" means the date on which an installment payment of an
144 assessment is payable.
145 (26) "Interim warrant" means a warrant issued by a local entity under Section
146 11-42-601 .
147 (27) "Jurisdictional boundaries" means:
148 (a) for a county, the boundaries of the unincorporated area of the county; and
149 (b) for each other local entity, the boundaries of the local entity.
150 (28) "Local district" means a local district under Title 17B, Limited Purpose Local
151 Government Entities - Local Districts.

152 (29) "Local entity" means a county, city, town, special service district, local district,
153 military installation development authority created in Section 63H-1-201 , or other political
154 subdivision of the state.
155 (30) "Local entity obligations" means assessment bonds, refunding assessment bonds,
156 interim warrants, and bond anticipation notes issued by a local entity.
157 (31) "Mailing address" means:
158 (a) a property owner's last-known address using the name and address appearing on the
159 last completed real property assessment roll of the county in which the property is located; and
160 (b) if the property is improved property:
161 (i) the property's street number; or
162 (ii) the post office box, rural route number, or other mailing address of the property, if
163 a street number has not been assigned.
164 (32) "Net improvement revenues" means all improvement revenues that a local entity
165 has received since the last installment payment date, less all amounts payable by the local entity
166 from those improvement revenues for operation and maintenance costs.
167 (33) "Operation and maintenance costs":
168 (a) means the costs that a local entity incurs in operating and maintaining
169 improvements in an assessment area, whether or not those improvements have been financed
170 under this chapter; and
171 (b) includes service charges, administrative costs, ongoing maintenance charges, and
172 tariffs or other charges for electrical, water, gas, or other utility usage.
173 (34) "Overhead costs" means the actual costs incurred or the estimated costs to be
174 incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing
175 fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying
176 agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
177 all other incidental costs.
178 (35) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
179 refunding assessment bonds.
180 (36) "Prior assessment ordinance" means the ordinance levying the assessments from
181 which the prior bonds are payable.
182 (37) "Prior assessment resolution" means the resolution levying the assessments from

183 which the prior bonds are payable.
184 (38) "Project engineer" means the surveyor or engineer employed by or private
185 consulting engineer engaged by a local entity to perform the necessary engineering services for
186 and to supervise the construction or installation of the improvements.
187 (39) "Property" includes real property and any interest in real property, including water
188 rights and leasehold rights.
189 (40) "Property price" means the price at which a local entity purchases or acquires by
190 eminent domain property to make improvements in an assessment area.
191 (41) "Provide" or "providing," with reference to an improvement, includes the
192 acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
193 expansion of an improvement.
194 (42) "Public agency" means:
195 (a) the state or any agency, department, or division of the state; and
196 (b) a political subdivision of the state.
197 (43) "Reduced payment obligation" means the full obligation of an owner of property
198 within an assessment area to pay an assessment levied on the property after the assessment has
199 been reduced because of the issuance of refunding assessment bonds, as provided in Section
200 11-42-608 .
201 (44) "Refunding assessment bonds" means assessment bonds that a local entity issues
202 under Section 11-42-607 to refund, in part or in whole, assessment bonds.
203 (45) "Reserve fund" means a fund established by a local entity under Section
204 11-42-702 .
205 (46) "Service" means:
206 (a) water, sewer, storm drainage, garbage collection, library, recreation,
207 communications, or electric service;
208 (b) economic promotion activities; or
209 (c) any other service that a local entity is required or authorized to provide.
210 (47) "Special service district" has the same meaning as defined in Section 17D-1-102 .
211 (48) "Unimproved property" means property upon which no residential, commercial, or
212 other building has been built.
213 (49) "Voluntary assessment area" means an assessment area that contains only property

214 whose owners have voluntarily consented to an assessment.
215 Section 2. Section 11-42-202 is amended to read:
216 11-42-202. Requirements applicable to a notice of a proposed assessment area
217 designation.
218 (1) Each notice required under Subsection 11-42-201 (2)(a) shall:
219 (a) state that the local entity proposes to:
220 (i) designate one or more areas within the local entity's jurisdictional boundaries as an
221 assessment area;
222 (ii) provide an improvement to property within the proposed assessment area; and
223 (iii) finance some or all of the cost of improvements by an assessment on benefitted
224 property within the assessment area;
225 (b) describe the proposed assessment area by any reasonable method that allows an
226 owner of property in the proposed assessment area to determine that the owner's property is
227 within the proposed assessment area;
228 (c) describe, in a general way, the improvements to be provided to the assessment area,
229 including:
230 (i) the general nature of the improvements; and
231 (ii) the general location of the improvements, by reference to streets or portions or
232 extensions of streets or by any other means that the governing body chooses that reasonably
233 describes the general location of the improvements;
234 (d) state the estimated cost of the improvements as determined by a project engineer;
235 (e) state that the local entity proposes to levy an assessment on benefitted property
236 within the assessment area to pay some or all of the cost of the improvements according to the
237 estimated direct and indirect benefits to the property from the improvements;
238 (f) (i) state the assessment method by which the governing body proposes to levy the
239 assessment; and
240 (ii) if the local entity is a municipality or county, state whether the assessment will be
241 collected as a fee or levied as a property tax in accordance with Section 11-42-401 ;
242 (g) state:
243 (i) the time within which and the location at which protests against designation of the
244 proposed assessment area or of the proposed improvements are required to be filed; and

245 (ii) the method by which the governing body will determine the number of protests
246 required to defeat the designation of the proposed assessment area or acquisition or
247 construction of the proposed improvements;
248 (h) state the date, time, and place of the public hearing required in Section 11-42-204 ;
249 (i) if the governing body elects to create and fund a reserve fund under Section
250 11-42-702 , include a description of:
251 (i) how the reserve fund will be funded and replenished; and
252 (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
253 the bonds;
254 (j) if the governing body intends to designate a voluntary assessment area, include a
255 property owner consent form that:
256 (i) estimates the total assessment to be levied against the particular parcel of property;
257 (ii) describes any additional benefits that the governing body expects the assessed
258 property to receive from the improvements; and
259 (iii) designates the date and time by which the fully executed consent form is required
260 to be submitted to the governing body;
261 (k) if the local entity intends to levy an assessment to pay operation and maintenance
262 costs or for economic promotion activities, include:
263 (i) a description of the operation and maintenance costs or economic promotion
264 activities to be paid by assessments and the initial estimated annual assessment to be levied;
265 (ii) a description of how the estimated assessment will be determined;
266 (iii) a description of how and when the governing body will adjust the assessment to
267 reflect the costs of:
268 (A) in accordance with Section 11-42-406 , current economic promotion activities; or
269 (B) current operation and maintenance costs;
270 (iv) a description of the method of assessment if different from the method of
271 assessment to be used for financing any improvement; and
272 (v) a statement of the maximum number of years over which the assessment will be
273 levied for:
274 (A) operation and maintenance costs; or
275 (B) economic promotion activities; and

276 (l) if the governing body intends to divide the proposed assessment area into zones
277 under Subsection 11-42-201 (1)(b), include a description of the proposed zones.
278 (2) A notice required under Subsection 11-42-201 (2)(a) may contain other information
279 that the governing body considers to be appropriate, including:
280 (a) the amount or proportion of the cost of the improvement to be paid by the local
281 entity or from sources other than an assessment;
282 (b) the estimated amount of each type of assessment for the various improvements to
283 be financed according to the method of assessment that the governing body chooses; and
284 (c) provisions for any improvements described in Subsection 11-42-102 (22)(a)(ii).
285 (3) Each notice required under Subsection 11-42-201 (2)(a) shall:
286 (a) (i) (A) be published in a newspaper of general circulation within the local entity's
287 jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
288 least five but not more than 20 days before the deadline for filing protests specified in the
289 notice under Subsection (1)(g); or
290 (B) if there is no newspaper of general circulation within the local entity's jurisdictional
291 boundaries, be posted in at least three public places within the local entity's jurisdictional
292 boundaries at least 20 but not more than 35 days before the deadline for filing protests
293 specified in the notice under Subsection (1)(g); and
294 (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
295 four weeks before the deadline for filing protests specified in the notice under Subsection
296 (1)(g); and
297 (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
298 the notice under Subsection (3)(a) to each owner of property to be assessed within the proposed
299 assessment area at the property owner's mailing address.
300 Section 3. Section 11-42-203 is amended to read:
301 11-42-203. Protests -- Waiver of right to protest.
302 (1) [An] Except as provided in Subsection (6), an owner of property that is proposed to
303 be assessed within an assessment area may, within the time specified in the notice under
304 Section 11-42-202 , file a written protest against:
305 (a) the designation of the assessment area;
306 (b) the inclusion of the owner's property in the proposed assessment area;

307 (c) the proposed improvements to be acquired or constructed; or
308 (d) any other aspect of the proposed designation of an assessment area.
309 (2) Each protest under Subsection (1)(a) shall describe or otherwise identify the
310 property owned by the person filing the protest.
311 (3) An owner may withdraw a protest at any time before the conclusion of the hearing
312 under Section 11-42-204 by filing a written withdrawal with the governing body.
313 (4) If the governing body intends to assess property within the proposed assessment
314 area by type of improvement or by zone, the governing body shall, in determining whether
315 adequate protests have been filed, aggregate the protests by the type of improvement or by
316 zone.
317 (5) The failure of an owner of property within the proposed assessment area to file a
318 timely written protest constitutes a waiver of any objection to:
319 (a) the designation of the assessment area;
320 (b) any improvement to be provided to property within the assessment area; and
321 (c) the inclusion of the owner's property within the assessment area.
322 (6) (a) As used in this Subsection (6):
323 (i) "Governing documents" has the same meaning as Section 57-8a-102 .
324 (ii) "Association" has the same meaning as Section 57-8a-102 .
325 (b) In accordance with Subsection (6)(c), a person who records a declaration of
326 covenants, conditions, and restrictions establishing an association in accordance with Title 57,
327 Chapter 8a, Community Association Act, may, in accordance with Subsection (6)(b), waive the
328 right to file a written protest as described in Subsection (1) of:
329 (i) the person; or
330 (ii) a successor in interest of a plat described in governing documents recorded by the
331 person.
332 (c) (i) If a person waives a right described in Subsection (6)(b), the person shall waive
333 the right by recording a statement in the governing documents indicating that the person is
334 waiving:
335 (A) the person's right to file a written protest; or
336 (B) in accordance with Subsection (6)(c)(ii), a successor's in interest right to file a
337 written protest.

338 (ii) If a person waives the right of a successor in interest to file a written protest in
339 accordance with Subsection (6)(c)(i)(B), the person shall indicate the waiver on each plat
340 recorded by the person in the governing documents.
341 Section 4. Section 11-42-401 is amended to read:
342 11-42-401. Levying an assessment -- Prerequisites -- Assessment list.
343 (1) (a) If a local entity has designated an assessment area in accordance with Part 2,
344 Designating an Assessment Area, the local entity may levy an assessment against property
345 within that assessment area as provided in this part.
346 (b) (i) If a municipality or county has designated an assessment area in accordance with
347 Part 2, Designating an Assessment Area, the municipality or county may levy an assessment
348 against property by levying and collecting a property tax.
349 (ii) A municipal or county governing body that levies and collects a property tax
350 described in Subsection (1)(b) shall levy and collect the tax according to the provisions of Title
351 59, Chapter 2, Property Tax Act.
352 (2) Before a governing body may adopt a resolution or ordinance levying an
353 assessment against property within an assessment area:
354 (a) the governing body shall:
355 (i) subject to Subsection (3), prepare an assessment list designating:
356 (A) each parcel of property proposed to be assessed; and
357 (B) the amount of the assessment to be levied against the property;
358 (ii) appoint a board of equalization as provided in Section 11-42-403 ; and
359 (iii) give notice as provided in Section 11-42-402 ; and
360 (b) the board of equalization, appointed under Section 11-42-403 , shall hold hearings,
361 make any corrections it considers appropriate to an assessment, and report its findings to the
362 governing body as provided in Section 11-42-403 .
363 (3) (a) The governing body of a local entity shall prepare the assessment list described
364 in Subsection (2)(a)(i) at any time after:
365 (i) the governing body has determined the estimated or actual operation and
366 maintenance costs, if the assessment is to pay operation and maintenance costs;
367 (ii) the governing body has determined the estimated or actual economic promotion
368 costs described in Section 11-42-206 , if the assessment is to pay for economic promotion

369 activities; or
370 (iii) for any other assessment, the governing body has determined:
371 (A) the estimated or actual acquisition and construction costs of all proposed
372 improvements within the assessment area, including overhead costs and authorized
373 contingencies;
374 (B) the estimated or actual property price for all property to be acquired to provide the
375 proposed improvements; and
376 (C) the reasonable cost of any work to be done by the local entity.
377 (b) In addition to the requirements of Subsection (3)(a), the governing body of a local
378 entity shall prepare the assessment list described in Subsection (2)(a)(i) before:
379 (i) the light service has commenced, if the assessment is to pay for light service; or
380 (ii) the park maintenance has commenced, if the assessment is to pay for park
381 maintenance.
382 (4) A local entity may levy an assessment for some or all of the cost of improvements
383 within an assessment area, including payment of:
384 (a) operation and maintenance costs of improvements constructed within the
385 assessment area;
386 (b) (i) if an outside entity furnishes utility services or maintains utility improvements,
387 the actual cost that the local entity pays for utility services or for maintenance of
388 improvements; or
389 (ii) if the local entity itself furnishes utility service or maintains improvements, for the
390 reasonable cost of supplying the utility service or maintenance;
391 (c) the reasonable cost of supplying labor, materials, or equipment in connection with
392 improvements; and
393 (d) (i) the reasonable cost of connection fees; or
394 (ii) the reasonable costs, as determined by the local entity governing body, if the local
395 entity owns or supplies any sewer, storm drainage, water, gas, electric, or communications
396 connections.
397 (5) A local entity may not levy an assessment for an amount donated or contributed for
398 an improvement or part of an improvement.
399 (6) The validity of an otherwise valid assessment is not affected because the actual cost

400 of improvements exceeds the estimated cost.
401 (7) (a) Subject to Subsection (7)(b), an assessment levied to pay for operation and
402 maintenance costs may not be levied over a period of time exceeding five years beginning on
403 the day on which the local entity adopts the assessment ordinance or assessment resolution for
404 the operation and maintenance costs assessment.
405 (b) A local entity may levy an additional assessment described in Subsection (7)(a) in
406 the assessment area designated for the assessment described in Subsection (7)(a) if, after the
407 five-year period expires, the local entity complies with the provisions of this part.




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as of 2-10-12 7:56 AM

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