Chief Sponsor: Kevin T. Van Tassell

House Sponsor: ____________


8     General Description:
9          This bill amends the process for protesting the designation of an assessment area.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     amends a definition relating to the number of protests required to prevent the
14     designation of a sewer assessment area; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          11-42-102, as last amended by Laws of Utah 2016, Chapter 371

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 11-42-102 is amended to read:
26          11-42-102. Definitions.
27          (1) (a) "Adequate protests" means, for all proposed assessment areas except sewer

28     assessment areas, timely filed, written protests under Section 11-42-203 that represent at least
29     40% of the frontage, area, taxable value, fair market value, lots, number of connections, or
30     equivalent residential units of the property proposed to be assessed, according to the same
31     assessment method by which the assessment is proposed to be levied, after eliminating:
32          [(a)] (i) protests relating to:
33          [(i)] (A) property that has been deleted from a proposed assessment area; or
34          [(ii)] (B) an improvement that has been deleted from the proposed improvements to be
35     provided to property within the proposed assessment area; and
36          [(b)] (ii) protests that have been withdrawn under Subsection 11-42-203(3).
37          (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed
38     written protests under Section 11-42-203 that represent at least 70% of the frontage, area,
39     taxable value, fair market value, lots, number of connections, or equivalent residential units of
40     the property proposed to be assessed, according to the same assessment method by which the
41     assessment is proposed to be levied, after eliminating adequate protests under Subsections
42     (1)(a)(i) and (ii).
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:
57          (a) by which an assessment is levied against benefitted property, whether by frontage,
58     area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential

59     unit, any combination of these methods, or any other method; and
60          (b) that, when applied to a benefitted property, accounts for an assessment that meets
61     the requirements of Section 11-42-409.
62          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
63     Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
64          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
65     11-42-404 that levies an assessment on benefitted property within an assessment area.
66          (9) "Benefitted property" means property within an assessment area that directly or
67     indirectly benefits from improvements, operation and maintenance, or economic promotion
68     activities.
69          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
70     anticipation of the issuance of assessment bonds.
71          (11) "Bonds" means assessment bonds and refunding assessment bonds.
72          (12) "Commercial area" means an area in which at least 75% of the property is devoted
73     to the interchange of goods or commodities.
74          (13) (a) "Commercial or industrial real property" means real property used directly or
75     indirectly or held for one of the following purposes or activities, regardless of whether the
76     purpose or activity is for profit:
77          (i) commercial;
78          (ii) mining;
79          (iii) industrial;
80          (iv) manufacturing;
81          (v) governmental;
82          (vi) trade;
83          (vii) professional;
84          (viii) a private or public club;
85          (ix) a lodge;
86          (x) a business; or
87          (xi) a similar purpose.
88          (b) "Commercial or industrial real property" includes real property that:
89          (i) is used as or held for dwelling purposes; and

90          (ii) contains more than four rental units.
91          (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
92     connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
93     electrical system, whether or not improvements are installed on the property.
94          (15) "Contract price" means:
95          (a) the cost of acquiring an improvement, if the improvement is acquired; or
96          (b) the amount payable to one or more contractors for the design, engineering,
97     inspection, and construction of an improvement.
98          (16) "Designation ordinance" means an ordinance adopted by a local entity under
99     Section 11-42-206 designating an assessment area.
100          (17) "Designation resolution" means a resolution adopted by a local entity under
101     Section 11-42-206 designating an assessment area.
102          (18) "Economic promotion activities" means activities that promote economic growth
103     in a commercial area of a local entity, including:
104          (a) sponsoring festivals and markets;
105          (b) promoting business investment or activities;
106          (c) helping to coordinate public and private actions; and
107          (d) developing and issuing publications designed to improve the economic well-being
108     of the commercial area.
109          (19) "Electric vehicle charging infrastructure" means equipment that is:
110          (a) permanently affixed to commercial or industrial real property; and
111          (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
112     plug-in hybrid vehicle as those terms are defined in Subsection 59-7-605(1).
113          (20) "Energy efficiency upgrade" means an improvement that is permanently affixed to
114     commercial or industrial real property that is designed to reduce energy consumption,
115     including:
116          (a) insulation in:
117          (i) a wall, roof, floor, or foundation; or
118          (ii) a heating and cooling distribution system;
119          (b) a window or door, including:
120          (i) a storm window or door;

121          (ii) a multiglazed window or door;
122          (iii) a heat-absorbing window or door;
123          (iv) a heat-reflective glazed and coated window or door;
124          (v) additional window or door glazing;
125          (vi) a window or door with reduced glass area; or
126          (vii) other window or door modifications;
127          (c) an automatic energy control system;
128          (d) in a building or a central plant, a heating, ventilation, or air conditioning and
129     distribution system;
130          (e) caulk or weatherstripping;
131          (f) a light fixture that does not increase the overall illumination of a building unless an
132     increase is necessary to conform with the applicable building code;
133          (g) an energy recovery system;
134          (h) a daylighting system;
135          (i) measures to reduce the consumption of water, through conservation or more
136     efficient use of water, including:
137          (i) installation of low-flow toilets and showerheads;
138          (ii) installation of timer or timing systems for a hot water heater; or
139          (iii) installation of rain catchment systems; or
140          (j) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
141     measure by the governing body of a local entity.
142          (21) "Environmental remediation activity" means a surface or subsurface enhancement,
143     effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth
144     movement, or change to grade or elevation which improves the use, function, aesthetics, or
145     environmental condition of publically or privately owned property.
146          (22) "Equivalent residential unit" means a dwelling, unit, or development that is equal
147     to a single-family residence in terms of the nature of its use or impact on an improvement to be
148     provided in the assessment area.
149          (23) "Governing body" means:
150          (a) for a county, city, or town, the legislative body of the county, city, or town;
151          (b) for a local district, the board of trustees of the local district;

152          (c) for a special service district:
153          (i) the legislative body of the county, city, or town that established the special service
154     district, if no administrative control board has been appointed under Section 17D-1-301; or
155          (ii) the administrative control board of the special service district, if an administrative
156     control board has been appointed under Section 17D-1-301; and
157          (d) for the military installation development authority created in Section 63H-1-201,
158     the authority board, as defined in Section 63H-1-102.
159          (24) "Guaranty fund" means the fund established by a local entity under Section
160     11-42-701.
161          (25) "Improved property" means property upon which a residential, commercial, or
162     other building has been built.
163          (26) "Improvement":
164          (a) (i) means a publicly owned infrastructure, system, or other facility, a publicly or
165     privately owned energy efficiency upgrade, a publicly or privately owned renewable energy
166     system, or publicly or privately owned environmental remediation activity that:
167          (A) a local entity is authorized to provide;
168          (B) the governing body of a local entity determines is necessary or convenient to
169     enable the local entity to provide a service that the local entity is authorized to provide; or
170          (C) a local entity is requested to provide through an interlocal agreement in accordance
171     with Title 11, Chapter 13, Interlocal Cooperation Act; and
172          (ii) includes facilities in an assessment area, including a private driveway, an irrigation
173     ditch, and a water turnout, that:
174          (A) can be conveniently installed at the same time as an infrastructure, system, or other
175     facility described in Subsection (26)(a)(i); and
176          (B) are requested by a property owner on whose property or for whose benefit the
177     infrastructure, system, or other facility is being installed; or
178          (b) for a local district created to assess groundwater rights in accordance with Section
179     17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
180     groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
181          (27) "Improvement revenues":
182          (a) means charges, fees, impact fees, or other revenues that a local entity receives from

183     improvements; and
184          (b) does not include revenue from assessments.
185          (28) "Incidental refunding costs" means any costs of issuing refunding assessment
186     bonds and calling, retiring, or paying prior bonds, including:
187          (a) legal and accounting fees;
188          (b) charges of financial advisors, escrow agents, certified public accountant verification
189     entities, and trustees;
190          (c) underwriting discount costs, printing costs, the costs of giving notice;
191          (d) any premium necessary in the calling or retiring of prior bonds;
192          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
193     refund the outstanding prior bonds;
194          (f) any other costs that the governing body determines are necessary and proper to incur
195     in connection with the issuance of refunding assessment bonds; and
196          (g) any interest on the prior bonds that is required to be paid in connection with the
197     issuance of the refunding assessment bonds.
198          (29) "Installment payment date" means the date on which an installment payment of an
199     assessment is payable.
200          (30) "Interim warrant" means a warrant issued by a local entity under Section
201     11-42-601.
202          (31) "Jurisdictional boundaries" means:
203          (a) for a county, the boundaries of the unincorporated area of the county; and
204          (b) for each other local entity, the boundaries of the local entity.
205          (32) "Local district" means a local district under Title 17B, Limited Purpose Local
206     Government Entities - Local Districts.
207          (33) "Local entity" means a county, city, town, special service district, local district, an
208     interlocal entity as defined in Section 11-13-103, a military installation development authority
209     created in Section 63H-1-201, or other political subdivision of the state.
210          (34) "Local entity obligations" means assessment bonds, refunding assessment bonds,
211     interim warrants, and bond anticipation notes issued by a local entity.
212          (35) "Mailing address" means:
213          (a) a property owner's last-known address using the name and address appearing on the

214     last completed real property assessment roll of the county in which the property is located; and
215          (b) if the property is improved property:
216          (i) the property's street number; or
217          (ii) the post office box, rural route number, or other mailing address of the property, if
218     a street number has not been assigned.
219          (36) "Net improvement revenues" means all improvement revenues that a local entity
220     has received since the last installment payment date, less all amounts payable by the local entity
221     from those improvement revenues for operation and maintenance costs.
222          (37) "Operation and maintenance costs":
223          (a) means the costs that a local entity incurs in operating and maintaining
224     improvements in an assessment area, whether or not those improvements have been financed
225     under this chapter; and
226          (b) includes service charges, administrative costs, ongoing maintenance charges, and
227     tariffs or other charges for electrical, water, gas, or other utility usage.
228          (38) "Overhead costs" means the actual costs incurred or the estimated costs to be
229     incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing
230     fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying
231     agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
232     all other incidental costs.
233          (39) "Prior assessment ordinance" means the ordinance levying the assessments from
234     which the prior bonds are payable.
235          (40) "Prior assessment resolution" means the resolution levying the assessments from
236     which the prior bonds are payable.
237          (41) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
238     refunding assessment bonds.
239          (42) "Project engineer" means the surveyor or engineer employed by or the private
240     consulting engineer engaged by a local entity to perform the necessary engineering services for
241     and to supervise the construction or installation of the improvements.
242          (43) "Property" includes real property and any interest in real property, including water
243     rights and leasehold rights.
244          (44) "Property price" means the price at which a local entity purchases or acquires by

245     eminent domain property to make improvements in an assessment area.
246          (45) "Provide" or "providing," with reference to an improvement, includes the
247     acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
248     expansion of an improvement.
249          (46) "Public agency" means:
250          (a) the state or any agency, department, or division of the state; and
251          (b) a political subdivision of the state.
252          (47) "Reduced payment obligation" means the full obligation of an owner of property
253     within an assessment area to pay an assessment levied on the property after the assessment has
254     been reduced because of the issuance of refunding assessment bonds, as provided in Section
255     11-42-608.
256          (48) "Refunding assessment bonds" means assessment bonds that a local entity issues
257     under Section 11-42-607 to refund, in part or in whole, assessment bonds.
258          (49) "Renewable energy system" means a product, a system, a device, or an interacting
259     group of devices that is permanently affixed to commercial or industrial real property and:
260          (a) produces energy from renewable resources, including:
261          (i) a photovoltaic system;
262          (ii) a solar thermal system;
263          (iii) a wind system;
264          (iv) a geothermal system, including:
265          (A) a generation system;
266          (B) a direct-use system; or
267          (C) a ground source heat pump system;
268          (v) a microhydro system; or
269          (vi) any other renewable source system approved by the governing body of a local
270     entity; or
271          (b) stores energy, including:
272          (i) a battery storage system; or
273          (ii) any other energy storing system approved by the governing body of a local entity.
274          (50) "Reserve fund" means a fund established by a local entity under Section
275     11-42-702.

276          (51) "Service" means:
277          (a) water, sewer, storm drainage, garbage collection, library, recreation,
278     communications, or electric service;
279          (b) economic promotion activities; or
280          (c) any other service that a local entity is required or authorized to provide.
281          (52) "Sewer assessment area" means an assessment area that has as its primary purpose
282     the financing and funding of public improvements to provide sewer service where there is, in
283     the opinion of the local board of health, substantial evidence of septic system failure in the
284     defined area due to inadequate soils, high water table, or other factors proven to cause failure.
285          [(52)] (53) "Special service district" means the same as that term is defined in Section
286     17D-1-102.
287          [(53)] (54) "Unassessed benefitted government property" means property that a local
288     entity may not assess in accordance with Section 11-42-408 but is benefitted by an
289     improvement, operation and maintenance, or economic promotion activities.
290          [(54)] (55) "Unimproved property" means property upon which no residential,
291     commercial, or other building has been built.
292          [(55)] (56) "Voluntary assessment area" means an assessment area that contains only
293     property whose owners have voluntarily consented to an assessment.

Legislative Review Note
Office of Legislative Research and General Counsel