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7 LONG TITLE
8 General Description:
9 This bill enacts the Commercial Property Assessed Clean Energy Act or C-PACE Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ enacts the Commercial Property Assessed Clean Energy Act or C-PACE Act;
14 ▸ repeals provisions related to energy assessments from the Assessment Area Act;
15 ▸ limits the availability of judicial recourse to challenge or enjoin certain assessments
16 and bonds;
17 ▸ creates the C-PACE district;
18 ▸ requires the Office of Energy Development (OED) to administer and direct the
19 actions of the C-PACE district;
20 ▸ allows OED to delegate OED's authority over the C-PACE district to a third party,
21 subject to certain contractual provisions;
22 ▸ provides for a local governing body to adopt an energy assessment resolution or
23 ordinance to designate an energy assessment area and levy an energy assessment
24 upon private property where the property owner consents to the assessment;
25 ▸ allows a local entity to levy an assessment against government land under certain
26 circumstances;
27 ▸ allows a property owner to pay an energy assessment in installments;
28 ▸ provides for the creation of an assessment fund and limits the use and investment of
29 money in the fund;
30 ▸ describes the characteristics of an energy assessment lien;
31 ▸ allows a local entity to assign an energy assessment lien to a third-party lender to
32 provide financing for certain improvements, subject to certain contractual
33 provisions;
34 ▸ provides for the enforcement of an energy assessment lien, including for delinquent
35 assessment payments;
36 ▸ provides for the release and discharge of an assessed property and an energy
37 assessment area;
38 ▸ allows a local entity to issue an energy assessment bond and a refunding assessment
39 bond;
40 ▸ limits the liability and obligation of a local entity issuing an energy assessment
41 bond;
42 ▸ provides for the reduction of assessments after the issuance of a refunding
43 assessment bond;
44 ▸ subjects a refunding assessment bond that a local entity has already issued to the
45 provisions of this bill;
46 ▸ adds funds that OED collects for directing and administering the C-PACE district to
47 the list of nonlapsing funds and accounts in the Budgetary Procedures Act;
48 ▸ enacts a sunset date, subject to review, for the nonlapsing status of OED's funds;
49 ▸ allows OED to charge fees for the performance of OED's duties; and
50 ▸ makes technical and conforming changes.
51 Money Appropriated in this Bill:
52 None
53 Other Special Clauses:
54 This bill provides a special effective date.
55 Utah Code Sections Affected:
56 AMENDS:
57 11-42-102, as last amended by Laws of Utah 2016, Chapter 371
58 11-42-103, as last amended by Laws of Utah 2016, Chapter 371
59 11-42-202, as last amended by Laws of Utah 2016, Chapters 85 and 371
60 11-42-301, as last amended by Laws of Utah 2016, Chapter 371
61 11-42-408, as last amended by Laws of Utah 2016, Chapter 371
62 11-42-411, as last amended by Laws of Utah 2016, Chapter 371
63 63I-1-263, as last amended by Laws of Utah 2016, Chapters 65, 136, 156, 322, and 408
64 63J-1-505, as last amended by Laws of Utah 2014, Chapter 189
65 63J-1-602.4, as last amended by Laws of Utah 2016, Chapters 193 and 240
66 63M-4-401, as last amended by Laws of Utah 2015, Chapters 356 and 378
67 ENACTS:
68 11-42a-101, Utah Code Annotated 1953
69 11-42a-102, Utah Code Annotated 1953
70 11-42a-103, Utah Code Annotated 1953
71 11-42a-104, Utah Code Annotated 1953
72 11-42a-105, Utah Code Annotated 1953
73 11-42a-106, Utah Code Annotated 1953
74 11-42a-201, Utah Code Annotated 1953
75 11-42a-202, Utah Code Annotated 1953
76 11-42a-203, Utah Code Annotated 1953
77 11-42a-204, Utah Code Annotated 1953
78 11-42a-205, Utah Code Annotated 1953
79 11-42a-206, Utah Code Annotated 1953
80 11-42a-301, Utah Code Annotated 1953
81 11-42a-302, Utah Code Annotated 1953
82 11-42a-303, Utah Code Annotated 1953
83 11-42a-304, Utah Code Annotated 1953
84 11-42a-305, Utah Code Annotated 1953
85 11-42a-401, Utah Code Annotated 1953
86 11-42a-402, Utah Code Annotated 1953
87 11-42a-403, Utah Code Annotated 1953
88 11-42a-404, Utah Code Annotated 1953
89 REPEALS:
90 11-42-209, as last amended by Laws of Utah 2016, Chapter 371
91
92 Be it enacted by the Legislature of the state of Utah:
93 Section 1. Section 11-42-102 is amended to read:
94 11-42-102. Definitions.
95 (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
96 that represent at least 40% of the frontage, area, taxable value, fair market value, lots, number
97 of connections, or equivalent residential units of the property proposed to be assessed,
98 according to the same assessment method by which the assessment is proposed to be levied,
99 after eliminating:
100 (a) protests relating to:
101 (i) property that has been deleted from a proposed assessment area; or
102 (ii) an improvement that has been deleted from the proposed improvements to be
103 provided to property within the proposed assessment area; and
104 (b) protests that have been withdrawn under Subsection 11-42-203(3).
105 (2) "Assessment area" means an area, or, if more than one area is designated, the
106 aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
107 local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
108 costs of improvements, operation and maintenance, or economic promotion activities that
109 benefit property within the area.
110 (3) "Assessment bonds" means bonds that are:
111 (a) issued under Section 11-42-605; and
112 (b) payable in part or in whole from assessments levied in an assessment area,
113 improvement revenues, and a guaranty fund or reserve fund.
114 (4) "Assessment fund" means a special fund that a local entity establishes under
115 Section 11-42-412.
116 (5) "Assessment lien" means a lien on property within an assessment area that arises
117 from the levy of an assessment, as provided in Section 11-42-501.
118 (6) "Assessment method" means the method:
119 (a) by which an assessment is levied against benefitted property, whether by frontage,
120 area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
121 unit, any combination of these methods, or any other method; and
122 (b) that, when applied to a benefitted property, accounts for an assessment that meets
123 the requirements of Section 11-42-409.
124 (7) "Assessment ordinance" means an ordinance adopted by a local entity under
125 Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
126 (8) "Assessment resolution" means a resolution adopted by a local entity under Section
127 11-42-404 that levies an assessment on benefitted property within an assessment area.
128 (9) "Benefitted property" means property within an assessment area that directly or
129 indirectly benefits from improvements, operation and maintenance, or economic promotion
130 activities.
131 (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
132 anticipation of the issuance of assessment bonds.
133 (11) "Bonds" means assessment bonds and refunding assessment bonds.
134 (12) "Commercial area" means an area in which at least 75% of the property is devoted
135 to the interchange of goods or commodities.
136 (13) (a) "Commercial or industrial real property" means real property used directly or
137 indirectly or held for one of the following purposes or activities, regardless of whether the
138 purpose or activity is for profit:
139 (i) commercial;
140 (ii) mining;
141 (iii) industrial;
142 (iv) manufacturing;
143 (v) governmental;
144 (vi) trade;
145 (vii) professional;
146 (viii) a private or public club;
147 (ix) a lodge;
148 (x) a business; or
149 (xi) a similar purpose.
150 (b) "Commercial or industrial real property" includes real property that:
151 (i) is used as or held for dwelling purposes; and
152 (ii) contains more than four rental units.
153 (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
154 connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
155 electrical system, whether or not improvements are installed on the property.
156 (15) "Contract price" means:
157 (a) the cost of acquiring an improvement, if the improvement is acquired; or
158 (b) the amount payable to one or more contractors for the design, engineering,
159 inspection, and construction of an improvement.
160 (16) "Designation ordinance" means an ordinance adopted by a local entity under
161 Section 11-42-206 designating an assessment area.
162 (17) "Designation resolution" means a resolution adopted by a local entity under
163 Section 11-42-206 designating an assessment area.
164 (18) "Economic promotion activities" means activities that promote economic growth
165 in a commercial area of a local entity, including:
166 (a) sponsoring festivals and markets;
167 (b) promoting business investment or activities;
168 (c) helping to coordinate public and private actions; and
169 (d) developing and issuing publications designed to improve the economic well-being
170 of the commercial area.
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205 enhancement, effort, cost, initial or ongoing maintenance expense, facility, installation, system,
206 earth movement, or change to grade or elevation [
207 aesthetics, or environmental condition of [
208 [
209 equal to a single-family residence in terms of the nature of its use or impact on an improvement
210 to be provided in the assessment area.
211 [
212 (a) for a county, city, or town, the legislative body of the county, city, or town;
213 (b) for a local district, the board of trustees of the local district;
214 (c) for a special service district:
215 (i) the legislative body of the county, city, or town that established the special service
216 district, if no administrative control board has been appointed under Section 17D-1-301; or
217 (ii) the administrative control board of the special service district, if an administrative
218 control board has been appointed under Section 17D-1-301; and
219 (d) for the military installation development authority created in Section 63H-1-201,
220 the authority board, as defined in Section 63H-1-102.
221 [
222 11-42-701.
223 [
224 or other building has been built.
225 [
226 (a) (i) means a publicly owned infrastructure, system, [
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229 (A) a local entity is authorized to provide;
230 (B) the governing body of a local entity determines is necessary or convenient to
231 enable the local entity to provide a service that the local entity is authorized to provide; or
232 (C) a local entity is requested to provide through an interlocal agreement in accordance
233 with Title 11, Chapter 13, Interlocal Cooperation Act; and
234 (ii) includes facilities in an assessment area, including a private driveway, an irrigation
235 ditch, and a water turnout, that:
236 (A) can be conveniently installed at the same time as an infrastructure, system, or other
237 facility described in Subsection [
238 (B) are requested by a property owner on whose property or for whose benefit the
239 infrastructure, system, or other facility is being installed; or
240 (b) for a local district created to assess groundwater rights in accordance with Section
241 17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
242 groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
243 [
244 (a) means charges, fees, impact fees, or other revenues that a local entity receives from
245 improvements; and
246 (b) does not include revenue from assessments.
247 [
248 assessment bonds and calling, retiring, or paying prior bonds, including:
249 (a) legal and accounting fees;
250 (b) charges of financial advisors, escrow agents, certified public accountant verification
251 entities, and trustees;
252 (c) underwriting discount costs, printing costs, the costs of giving notice;
253 (d) any premium necessary in the calling or retiring of prior bonds;
254 (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
255 refund the outstanding prior bonds;
256 (f) any other costs that the governing body determines are necessary and proper to incur
257 in connection with the issuance of refunding assessment bonds; and
258 (g) any interest on the prior bonds that is required to be paid in connection with the
259 issuance of the refunding assessment bonds.
260 [
261 payment of an assessment is payable.
262 [
263 11-42-601.
264 [
265 (a) for a county, the boundaries of the unincorporated area of the county; and
266 (b) for each other local entity, the boundaries of the local entity.
267 [
268 Local Government Entities - Local Districts.
269 [
270 district, an interlocal entity as defined in Section 11-13-103, a military installation development
271 authority created in Section 63H-1-201, or other political subdivision of the state.
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273 bonds, interim warrants, and bond anticipation notes issued by a local entity.
274 [
275 (a) a property owner's last-known address using the name and address appearing on the
276 last completed real property assessment roll of the county in which the property is located; and
277 (b) if the property is improved property:
278 (i) the property's street number; or
279 (ii) the post office box, rural route number, or other mailing address of the property, if
280 a street number has not been assigned.
281 [
282 entity has received since the last installment payment date, less all amounts payable by the local
283 entity from those improvement revenues for operation and maintenance costs.
284 [
285 (a) means the costs that a local entity incurs in operating and maintaining
286 improvements in an assessment area, whether or not those improvements have been financed
287 under this chapter; and
288 (b) includes service charges, administrative costs, ongoing maintenance charges, and
289 tariffs or other charges for electrical, water, gas, or other utility usage.
290 [
291 be incurred by a local entity in connection with an assessment area for appraisals, legal fees,
292 filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and
293 paying agent fees, publishing and mailing costs, costs of levying an assessment, recording
294 costs, and all other incidental costs.
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296 from which the prior bonds are payable.
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298 from which the prior bonds are payable.
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300 whole by refunding assessment bonds.
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302 private consulting engineer engaged by a local entity to perform the necessary engineering
303 services for and to supervise the construction or installation of the improvements.
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305 water rights and leasehold rights.
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307 acquires by eminent domain property to make improvements in an assessment area.
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309 acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
310 expansion of an improvement.
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312 (a) the state or any agency, department, or division of the state; and
313 (b) a political subdivision of the state.
314 [
315 property within an assessment area to pay an assessment levied on the property after the
316 assessment has been reduced because of the issuance of refunding assessment bonds, as
317 provided in Section 11-42-608.
318 [
319 issues under Section 11-42-607 to refund, in part or in whole, assessment bonds.
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337 11-42-702.
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339 (a) water, sewer, storm drainage, garbage collection, library, recreation,
340 communications, or electric service;
341 (b) economic promotion activities; or
342 (c) any other service that a local entity is required or authorized to provide.
343 [
344 17D-1-102.
345 [
346 entity may not assess in accordance with Section 11-42-408 but is benefitted by an
347 improvement, operation and maintenance, or economic promotion activities.
348 [
349 commercial, or other building has been built.
350 [
351 property whose owners have voluntarily consented to an assessment.
352 Section 2. Section 11-42-103 is amended to read:
353 11-42-103. Limit on effect of this chapter.
354 (1) Nothing in this chapter may be construed to authorize a local entity to provide an
355 improvement or service that the local entity is not otherwise authorized to provide.
356 (2) Notwithstanding Subsection (1), a local entity may provide [
357
358 environmental remediation activity that the local entity finds or determines to be in the public
359 interest.
360 Section 3. Section 11-42-202 is amended to read:
361 11-42-202. Requirements applicable to a notice of a proposed assessment area
362 designation.
363 (1) Each notice required under Subsection 11-42-201(2)(a) shall:
364 (a) state that the local entity proposes to:
365 (i) designate one or more areas within the local entity's jurisdictional boundaries as an
366 assessment area;
367 (ii) provide an improvement to property within the proposed assessment area; and
368 (iii) finance some or all of the cost of improvements by an assessment on benefitted
369 property within the assessment area;
370 (b) describe the proposed assessment area by any reasonable method that allows an
371 owner of property in the proposed assessment area to determine that the owner's property is
372 within the proposed assessment area;
373 (c) describe, in a general and reasonably accurate way, the improvements to be
374 provided to the assessment area, including:
375 (i) the nature of the improvements; and
376 (ii) the location of the improvements, by reference to streets or portions or extensions
377 of streets or by any other means that the governing body chooses that reasonably describes the
378 general location of the improvements;
379 (d) state the estimated cost of the improvements as determined by a project engineer;
380 (e) for the version of notice mailed in accordance with Subsection (4)(b), state the
381 estimated total assessment specific to the benefitted property for which the notice is mailed;
382 (f) state that the local entity proposes to levy an assessment on benefitted property
383 within the assessment area to pay some or all of the cost of the improvements according to the
384 estimated benefits to the property from the improvements;
385 (g) if applicable, state that an unassessed benefitted government property will receive
386 improvements for which the cost will be allocated proportionately to the remaining benefitted
387 properties within the proposed assessment area and that a description of each unassessed
388 benefitted government property is available for public review at the location or website
389 described in Subsection (6);
390 (h) state the assessment method by which the governing body proposes to levy the
391 assessment, including, if the local entity is a municipality or county, whether the assessment
392 will be collected:
393 (i) by directly billing a property owner; or
394 (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317
395 and in compliance with Section 11-42-401;
396 (i) state:
397 (i) the date described in Section 11-42-203 and the location at which protests against
398 designation of the proposed assessment area or of the proposed improvements are required to
399 be filed;
400 (ii) the method by which the governing body will determine the number of protests
401 required to defeat the designation of the proposed assessment area or acquisition or
402 construction of the proposed improvements; and
403 (iii) in large, boldface, and conspicuous type that a property owner must protest the
404 designation of the assessment area in writing if the owner objects to the area designation or
405 being assessed for the proposed improvements, operation and maintenance costs, or economic
406 promotion activities;
407 (j) state the date, time, and place of the public hearing required in Section 11-42-204;
408 (k) if the governing body elects to create and fund a reserve fund under Section
409 11-42-702, include a description of:
410 (i) how the reserve fund will be funded and replenished; and
411 (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
412 the bonds;
413 (l) if the governing body intends to designate a voluntary assessment area, include a
414 property owner consent form that:
415 (i) estimates the total assessment to be levied against the particular parcel of property;
416 (ii) describes any additional benefits that the governing body expects the assessed
417 property to receive from the improvements;
418 (iii) designates the date and time by which the fully executed consent form is required
419 to be submitted to the governing body; and
420 (iv) if the governing body intends to enforce an assessment lien on the property in
421 accordance with Subsection 11-42-502.1(2)(c):
422 (A) appoints a trustee that satisfies the requirements described in Section 57-1-21;
423 (B) gives the trustee the power of sale; and
424 (C) explains that if an assessment or an installment of an assessment is not paid when
425 due, the local entity may sell the property owner's property to satisfy the amount due plus
426 interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances;
427 (m) if the local entity intends to levy an assessment to pay operation and maintenance
428 costs or for economic promotion activities, include:
429 (i) a description of the operation and maintenance costs or economic promotion
430 activities to be paid by assessments and the initial estimated annual assessment to be levied;
431 (ii) a description of how the estimated assessment will be determined;
432 (iii) a description of how and when the governing body will adjust the assessment to
433 reflect the costs of:
434 (A) in accordance with Section 11-42-406, current economic promotion activities; or
435 (B) current operation and maintenance costs;
436 (iv) a description of the method of assessment if different from the method of
437 assessment to be used for financing any improvement; and
438 (v) a statement of the maximum number of years over which the assessment will be
439 levied for:
440 (A) operation and maintenance costs; or
441 (B) economic promotion activities;
442 (n) if the governing body intends to divide the proposed assessment area into
443 classifications under Subsection 11-42-201(1)(b), include a description of the proposed
444 classifications;
445 (o) if applicable, state the portion and value of the improvement that will be increased
446 in size or capacity to serve property outside of the assessment area and how the increases will
447 be financed; and
448 (p) state whether the improvements will be financed with a bond and, if so, the
449 currently estimated interest rate and term of financing, subject to Subsection (2), for which the
450 benefitted properties within the assessment area may be obligated.
451 (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
452 interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
453 subject to the market rate at the time of the issuance of the bond.
454 (3) A notice required under Subsection 11-42-201(2)(a) may contain other information
455 that the governing body considers to be appropriate, including:
456 (a) the amount or proportion of the cost of the improvement to be paid by the local
457 entity or from sources other than an assessment;
458 (b) the estimated total amount of each type of assessment for the various improvements
459 to be financed according to the method of assessment that the governing body chooses; and
460 (c) provisions for any improvements described in Subsection [
461 11-42-102(24)(a)(ii).
462 (4) Each notice required under Subsection 11-42-201(2)(a) shall:
463 (a) (i) (A) be published in a newspaper of general circulation within the local entity's
464 jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
465 least five but not more than 20 days before the day of the hearing required in Section
466 11-42-204; or
467 (B) if there is no newspaper of general circulation within the local entity's jurisdictional
468 boundaries, be posted in at least three public places within the local entity's jurisdictional
469 boundaries at least 20 but not more than 35 days before the day of the hearing required in
470 Section 11-42-204; and
471 (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
472 four weeks before the deadline for filing protests specified in the notice under Subsection
473 (1)(i); and
474 (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
475 the notice under Subsection (4)(a) to each owner of property to be assessed within the proposed
476 assessment area at the property owner's mailing address.
477 (5) (a) The local entity may record the version of the notice that is published or posted
478 in accordance with Subsection (4)(a) with the office of the county recorder, by legal description
479 and tax identification number as identified in county records, against the property proposed to
480 be assessed.
481 (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
482 after the day on which the local entity records the notice if the local entity has failed to adopt
483 the designation ordinance or resolution under Section 11-42-201 designating the assessment
484 area for which the notice was recorded.
485 (6) A local entity shall make available on the local entity's website, or, if no website is
486 available, at the local entity's place of business, the address and type of use of each unassessed
487 benefitted government property described in Subsection (1)(g).
488 (7) If a governing body fails to provide actual or constructive notice under this section,
489 the local entity may not assess a levy against a benefitted property omitted from the notice
490 unless:
491 (a) the property owner gives written consent;
492 (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
493 not object to the levy of the assessment before the final hearing of the board of equalization; or
494 (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
495 of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
496 Subsection 11-42-207(1)(d)(i) are met.
497 Section 4. 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.
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575 Section 5. 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; and
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[
596 [
597
598
599
600 Section 6. 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) and except as provided in Subsection (2)(c), provide that some or all of the
604 assessment be paid in installments over a period not to exceed 20 years from the effective date
605 of the resolution or ordinance.
606 (b) If an assessment resolution or ordinance provides that some or all of the assessment
607 be paid in installments for a period exceeding 10 years from the effective date of the resolution
608 or ordinance, the governing body:
609 (i) shall make a determination that:
610 (A) the improvement for which the assessment is made has a reasonable useful life for
611 the full period during which installments are to be paid; or
612 (B) it would be in the best interests of the local entity and the property owners for
613 installments to be paid for more than 10 years; and
614 (ii) may provide in the resolution or ordinance that no assessment is payable during
615 some or all of the period ending three years after the effective date of the resolution or
616 ordinance.
617 (2) An assessment resolution or ordinance that provides for the assessment to be paid
618 in installments may provide that the unpaid balance be paid over the period of time that
619 installments are payable:
620 (a) in substantially equal installments of principal; or
621 (b) in substantially equal installments of principal and interest[
622 [
623
624 [
625 [
626
627 (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
628 paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
629 of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
630 variable rates, as determined by the governing body, from the effective date of the resolution or
631 ordinance or another date specified in the resolution or ordinance.
632 (b) If the assessment is for operation and maintenance costs or for the costs of
633 economic promotion activities:
634 (i) a local entity may charge interest only from the date each installment is due; and
635 (ii) the first installment of an assessment shall be due 15 days after the effective date of
636 the assessment resolution or ordinance.
637 (c) If an assessment resolution or ordinance provides for the unpaid balance of the
638 assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
639 specify:
640 (i) the basis upon which the rate is to be determined from time to time;
641 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
642 (iii) a maximum rate that the assessment may bear.
643 (4) Interest payable on assessments may include:
644 (a) interest on assessment bonds;
645 (b) ongoing local entity costs incurred for administration of the assessment area; and
646 (c) any costs incurred with respect to:
647 (i) securing a letter of credit or other instrument to secure payment or repurchase of
648 bonds; or
649 (ii) retaining a marketing agent or an indexing agent.
650 (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
651 to the amount of each installment annually or at more frequent intervals as provided in the
652 assessment resolution or ordinance.
653 (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
654 economic promotion activities, a property owner may pay some or all of the entire assessment
655 without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
656 (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
657 time prepay some or all of the assessment levied against the owner's property.
658 (c) A local entity may require a prepayment of an installment to include:
659 (i) an amount equal to the interest that would accrue on the assessment to the next date
660 on which interest is payable on bonds issued in anticipation of the collection of the assessment;
661 and
662 (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
663 designated by the governing body, to assure the availability of money to pay:
664 (A) interest that becomes due and payable on those bonds; and
665 (B) any premiums that become payable on bonds that are called in order to use the
666 money from the prepaid assessment installment.
667 Section 7. Section 11-42a-101 is enacted to read:
668
669
670 11-42a-101. Title.
671 This chapter is known as the "Commercial Property Assessed Clean Energy Act" or
672 "C-PACE Act."
673 Section 8. Section 11-42a-102 is enacted to read:
674 11-42a-102. Definitions.
675 (1) (a) "Assessment" means the assessment that a local entity or the C-PACE district
676 levies on private property under this chapter to cover the costs of an energy efficiency upgrade,
677 a renewable energy system, or an electric vehicle charging infrastructure.
678 (b) "Assessment" does not constitute a property tax but shares the same priority lien as
679 a property tax.
680 (2) "Assessment fund" means a special fund that a local entity establishes under
681 Section 11-42a-206.
682 (3) "Benefitted property" means private property within an energy assessment area that
683 directly benefits from improvements.
684 (4) "Bond" means an assessment bond and a refunding assessment bond.
685 (5) (a) "Commercial or industrial real property" means private real property used
686 directly or indirectly or held for one of the following purposes or activities, regardless of
687 whether the purpose or activity is for profit:
688 (i) commercial;
689 (ii) mining;
690 (iii) agricultural;
691 (iv) industrial;
692 (v) manufacturing;
693 (vi) trade;
694 (vii) professional;
695 (viii) a private or public club;
696 (ix) a lodge;
697 (x) a business; or
698 (xi) a similar purpose.
699 (b) "Commercial or industrial real property" includes private real property that:
700 (i) is used as or held for dwelling purposes; and
701 (ii) contains more than four rental units.
702 (6) "Contract price" means:
703 (a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
704 improvement, as determined by the owner of the property benefitting from the improvement; or
705 (b) the amount payable to one or more contractors for the assessment, design,
706 engineering, inspection, and construction of an improvement.
707 (7) "C-PACE" means commercial property assessed clean energy.
708 (8) "C-PACE district" means the statewide authority established in Section 11-42a-106
709 to implement the C-PACE Act in collaboration with governing bodies, under the direction of
710 OED.
711 (9) "Electric vehicle charging infrastructure" means equipment that is:
712 (a) permanently affixed to commercial or industrial real property; and
713 (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
714 plug-in hybrid vehicle, as those terms are defined in Section 59-7-605.
715 (10) "Energy assessment area" means an area:
716 (a) within the jurisdictional boundaries of a local entity or, if the C-PACE district or a
717 state interlocal entity levies the assessment, the C-PACE district or the state interlocal entity;
718 and
719 (b) containing only the property of owners who have voluntarily consented to an
720 assessment under this chapter for the purpose of financing the costs of improvements that
721 benefit property within the area.
722 (11) "Energy assessment bond" means a bond:
723 (a) issued under Section 11-42a-401; and
724 (b) payable in part or in whole from assessments levied in an assessment area.
725 (12) "Energy assessment lien" means a lien on property within an assessment area that
726 arises from the levy of an assessment in accordance with Section 11-42a-301.
727 (13) "Energy assessment ordinance" means an ordinance that a local entity adopts
728 under Section 11-42a-201 that:
729 (a) designates an energy assessment area;
730 (b) levies an assessment on benefitted property within the energy assessment area; and
731 (c) if applicable, authorizes the issuance of energy assessment bonds.
732 (14) "Energy assessment resolution" means one or more resolutions adopted by a local
733 entity under Section 11-42a-201 that:
734 (a) designates an energy assessment area;
735 (b) levies an assessment on benefitted property within the energy assessment area; and
736 (c) if applicable, authorizes the issuance of energy assessment bonds.
737 (15) "Energy efficiency upgrade" means an improvement that is:
738 (a) permanently affixed to commercial or industrial real property; and
739 (b) designed to reduce energy or water consumption, including:
740 (i) insulation in:
741 (A) a wall, roof, floor, or foundation; or
742 (B) a heating and cooling distribution system;
743 (ii) a window or door, including:
744 (A) a storm window or door;
745 (B) a multiglazed window or door;
746 (C) a heat-absorbing window or door;
747 (D) a heat-reflective glazed and coated window or door;
748 (E) additional window or door glazing;
749 (F) a window or door with reduced glass area; or
750 (G) other window or door modifications;
751 (iii) an automatic energy control system;
752 (iv) in a building or a central plant, a heating, ventilation, or air conditioning and
753 distribution system;
754 (v) caulk or weatherstripping;
755 (vi) a light fixture that does not increase the overall illumination of a building, unless
756 an increase is necessary to conform with the applicable building code;
757 (vii) an energy recovery system;
758 (viii) a daylighting system;
759 (ix) measures to reduce the consumption of water, through conservation or more
760 efficient use of water, including installation of:
761 (A) low-flow toilets and showerheads;
762 (B) timer or timing systems for a hot water heater; or
763 (C) rain catchment systems;
764 (x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
765 measure by the governing body or executive of a local entity;
766 (xi) measures or other improvements to effect seismic upgrades;
767 (xii) structures, measures, or other improvements to provide automated parking or
768 parking that reduces land use;
769 (xiii) the extension of an existing natural gas distribution company line;
770 (xiv) an energy efficient elevator, escalator, or other vertical transport device;
771 (xv) any other improvement that the governing body or executive of a local entity
772 approves as an energy efficiency upgrade; or
773 (xvi) any improvement that relates physically or functionally to any of the
774 improvements listed in Subsections (15)(b)(i) through (xvi).
775 (16) "Governing body" means:
776 (a) for a county, city, town, or metro township, the legislative body of the county, city,
777 town, or metro township;
778 (b) for a local district, the board of trustees of the local district;
779 (c) for a special service district:
780 (i) if no administrative control board has been appointed under Section 17D-1-301, the
781 legislative body of the county, city, town, or metro township that established the special service
782 district; or
783 (ii) if an administrative control board has been appointed under Section 17D-1-301, the
784 administrative control board of the special service district; and
785 (d) for the military installation development authority created in Section 63H-1-201,
786 the board, as that term is defined in Section 63H-1-102.
787 (17) "Improved property" means property upon which a residential, commercial,
788 industrial, or other building has been built.
789 (18) "Improvement" means a publicly or privately owned energy efficiency upgrade,
790 renewable energy system, or electric vehicle charging infrastructure that:
791 (a) a property owner has requested; or
792 (b) has been or is being installed on a property for the benefit of the property owner.
793 (19) "Incidental refunding costs" means any costs of issuing a refunding assessment
794 bond and calling, retiring, or paying prior bonds, including:
795 (a) legal and accounting fees;
796 (b) charges of financial advisors, escrow agents, certified public accountant verification
797 entities, and trustees;
798 (c) underwriting discount costs, printing costs, and the costs of giving notice;
799 (d) any premium necessary in the calling or retiring of prior bonds;
800 (e) fees to be paid to the local entity to issue the refunding assessment bond and to
801 refund the outstanding prior bonds;
802 (f) any other costs that the governing body determines are necessary and proper to incur
803 in connection with the issuance of a refunding assessment bond; and
804 (g) any interest on the prior bonds that is required to be paid in connection with the
805 issuance of the refunding assessment bond.
806 (20) "Installment payment date" means the date on which an installment payment of an
807 assessment is payable.
808 (21) "Jurisdictional boundaries" means:
809 (a) for the C-PACE district or any state interlocal entity, the boundaries of the state;
810 and
811 (b) for each local entity, the boundaries of the local entity.
812 (22) "Local district" means a local district under Title 17B, Limited Purpose Local
813 Government Entities - Local Districts.
814 (23) (a) "Local entity" means:
815 (i) a county, city, town, or metro township;
816 (ii) a special service district, a local district, or an interlocal entity as that term is
817 defined in Section 11-13-103;
818 (iii) a state interlocal entity;
819 (iv) the military installation development authority created in Section 63H-1-201; or
820 (v) any political subdivision of the state.
821 (b) "Local entity" includes the C-PACE district solely in connection with:
822 (i) the designation of an energy assessment area;
823 (ii) the levying of an assessment; and
824 (iii) the assignment of an energy assessment lien to a third-party lender under Section
825 11-42a-302.
826 (24) "Local entity obligations" means energy assessment bonds and refunding
827 assessment bonds that a local entity issues.
828 (25) "OED" means the Office of Energy Development created in Section 63M-4-401.
829 (26) "Overhead costs" means the actual costs incurred or the estimated costs to be
830 incurred in connection with an energy assessment area for appraisals, including:
831 (a) legal fees, filing fees, facilitation fees, and financial advisory charges;
832 (b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
833 (c) publishing and mailing costs;
834 (d) costs of levying an assessment;
835 (e) recording costs; and
836 (f) all other incidental costs.
837 (27) "Prior bonds" means the energy assessment bonds refunded in part or in whole by
838 a refunding assessment bond.
839 (28) "Prior energy assessment ordinance" means the ordinance levying the assessments
840 from which the prior bonds are payable.
841 (29) "Prior energy assessment resolution" means the resolution levying the assessments
842 from which the prior bonds are payable.
843 (30) "Property" includes real property and any interest in real property, including water
844 rights and leasehold rights.
845 (31) "Public agency" means:
846 (a) the state or any agency, department, or division of the state; and
847 (b) a political subdivision as that term is defined in Section 11-49-102.
848 (32) "Reduced payment obligation" means the full obligation of an owner of property
849 within an energy assessment area to pay an assessment levied on the property after the local
850 entity has reduced the assessment because of the issuance of a refunding assessment bond, in
851 accordance with Section 11-42a-403.
852 (33) "Refunding assessment bond" means an assessment bond that a local entity issues
853 under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
854 (34) "Renewable energy system" means a product, system, device, or interacting group
855 of devices that is permanently affixed to commercial or industrial real property and:
856 (a) produces energy from renewable resources, including:
857 (i) a photovoltaic system;
858 (ii) a solar thermal system;
859 (iii) a wind system;
860 (iv) a geothermal system, including:
861 (A) a generation system;
862 (B) a direct-use system; or
863 (C) a ground source heat pump system;
864 (v) a microhydro system; or
865 (vi) any other renewable source system that the governing body of a local entity
866 approves;
867 (b) stores energy, including:
868 (i) a battery storage system; or
869 (ii) any other energy storing system that the governing body or chief executive officer
870 of a local entity approves; or
871 (c) any improvement that relates physically or functionally to any of the products,
872 systems, or devices listed in Subsection (34)(a) or (b).
873 (35) "Special service district" means the same as that term is defined in Section
874 17D-1-102.
875 (36) "State interlocal entity" means:
876 (a) an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation Act,
877 by two or more counties, cities, towns, or metro townships that collectively represent at least a
878 majority of the state's population; or
879 (b) an entity that another state authorized, before January 1, 2017, to issue bonds,
880 notes, or other obligations or refunding obligations to finance or refinance projects in the state.
881 (37) "Third-party lender" means a trust company, savings bank, savings and loan
882 association, bank, credit union, or any other entity that provides loans directly to property
883 owners for improvements authorized under this chapter.
884 Section 9. Section 11-42a-103 is enacted to read:
885 11-42a-103. No limitation on other local entity powers -- Conflict with other
886 statutory provisions.
887 (1) This chapter does not limit a power that a local entity has under other applicable
888 law to:
889 (a) make an improvement or provide a service;
890 (b) create a district;
891 (c) levy an assessment or tax; or
892 (d) issue a bond or a refunding bond.
893 (2) If there is a conflict between a provision of this chapter and any other statutory
894 provision, the provision of this chapter governs.
895 Section 10. Section 11-42a-104 is enacted to read:
896 11-42a-104. Action to contest assessment or proceeding -- Requirements --
897 Exclusive remedy -- Bonds and assessment incontestable.
898 (1) (a) A person may commence a civil action against a local entity to contest an
899 assessment, a proceeding to designate an energy assessment area, or a proceeding to levy an
900 assessment.
901 (b) The remedies available in a civil action described in Subsection (1)(a) are:
902 (i) setting aside the proceeding to designate an energy assessment area; or
903 (ii) enjoining the levy or collection of an assessment.
904 (2) (a) A person bringing an action under Subsection (1) shall bring the action in the
905 district court with jurisdiction in the county in which the energy assessment area is located.
906 (b) A person may not begin the action against or serve a summons relating to the action
907 on the local entity more than 30 days after the effective date of the energy assessment
908 resolution, the energy assessment ordinance, or the written agreement between a local entity
909 and a third-party lender, described in Section 11-42a-302.
910 (3) An action under Subsection (1) is the exclusive remedy of a person:
911 (a) claiming an error or irregularity in an assessment, a proceeding to designate an
912 energy assessment area, or a proceeding to levy an assessment; or
913 (b) challenging a bondholder's or third-party lender's right to repayment.
914 (4) A court may not set aside, in part or in whole or declare invalid an assessment, a
915 proceeding to designate an energy assessment area, or a proceeding to levy an assessment
916 because of an error or irregularity that does not relate to the equity or justice of the assessment
917 or proceeding.
918 (5) Except as provided in Subsection (6), after the expiration of the 30-day period
919 described in Subsection (2)(b):
920 (a) the following become incontestable against any person that has not commenced an
921 action and served a summons as provided in this section:
922 (i) the written agreement entered into or to be entered into under Section 11-42a-302;
923 (ii) the energy assessment bonds and refunding assessment bonds:
924 (A) that a local entity has issued or intends to issue; or
925 (B) with respect to the creation of an energy assessment area; and
926 (iii) assessments levied on property in the energy assessment area; and
927 (b) a court may not inquire into and a person may not bring a suit to enjoin or
928 challenge:
929 (i) the issuance or payment of an energy assessment bond or a refunding assessment
930 bond;
931 (ii) the payment under the written agreement between a local entity and a third-party
932 lender described in Section 11-42a-302;
933 (iii) the levy, collection, or enforcement of an assessment;
934 (iv) the legality of an energy assessment bond, a refunding assessment bond, or a
935 written agreement between a local entity and a third-party lender described in Section
936 11-42a-302; or
937 (v) an assessment.
938 (6) (a) A person may bring a claim of misuse of assessment funds through a mandamus
939 action regardless of the expiration of the 30-day period described in Subsection (2)(b).
940 (b) This section does not prohibit the filing of criminal charges against or the
941 prosecution of a party for the misuse of assessment funds.
942 Section 11. Section 11-42a-105 is enacted to read:
943 11-42a-105. Severability.
944 A court's invalidation of any provision of this chapter does not affect the validity of any
945 other provision of this chapter.
946 Section 12. Section 11-42a-106 is enacted to read:
947 11-42a-106. C-PACE district established -- OED to direct and administer
948 C-PACE district.
949 (1) There is created the C-PACE district.
950 (2) The C-PACE district may:
951 (a) designate an energy assessment area;
952 (b) levy an assessment;
953 (c) assign an energy assessment lien to a third-party lender; and
954 (d) collect an assessment within an energy assessment area in accordance with Section
955 11-42a-302.
956 (3) (a) OED shall administer and direct the operation of the C-PACE district.
957 (b) OED may:
958 (i) adopt a fee schedule and charge fees, in accordance with Section 63J-1-504, to
959 cover the cost of administering and directing the operation of the C-PACE district;
960 (ii) delegate OED's powers under this chapter to a third party to assist in administering
961 and directing the operation of the C-PACE district; and
962 (iii) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
963 Rulemaking Act, to establish procedures necessary to carry out the actions described in
964 Subsection (2).
965 (c) If OED delegates OED's power under Subsection (3)(b)(ii), OED shall:
966 (i) delegate the authority through a written agreement with the third party; and
967 (ii) ensure that the written agreement includes provisions that:
968 (A) require the third party to be subject to an audit by the state auditor regarding the
969 delegation;
970 (B) require the third party to submit to OED monthly reports, including information
971 regarding the assessments the C-PACE district levies and the payments the C-PACE district
972 receives; and
973 (C) insulate OED from liability for the actions of the third party and the C-PACE
974 district while under the direction and administration of the third party.
975 (d) OED is subject to Title 63G, Chapter 7, Governmental Immunity Act of Utah.
976 (4) The state is not liable for the acts or omissions of the C-PACE district or the
977 C-PACE district's directors, administrators, officers, agents, employees, third-party directors or
978 administrators, or third-party lenders, including any obligation, expense, debt, or liability of the
979 C-PACE district.
980 Section 13. Section 11-42a-201 is enacted to read:
981
982 11-42a-201. Resolution or ordinance designation an energy assessment area,
983 levying an assessment, and issuing an energy assessment bond.
984 (1) (a) Except as otherwise provided in this chapter, and subject to the requirements of
985 this part, at the request of a property owner on whose property or for whose benefit an
986 improvement is being installed or being reimbursed, a governing body of a local entity may
987 adopt an energy assessment resolution or an energy assessment ordinance that:
988 (i) designates an energy assessment area;
989 (ii) levies an assessment within the energy assessment area; and
990 (iii) if applicable, authorizes the issuance of an energy assessment bond.
991 (b) The boundaries of a proposed energy assessment area may:
992 (i) include property that is not intended to be assessed; and
993 (ii) overlap, be coextensive with, or be substantially coterminous with the boundaries
994 of any other energy assessment area or an assessment area created under Title 11, Chapter 42,
995 Assessment Area Act.
996 (c) The energy assessment resolution or ordinance described in Subsection (1)(a) is
997 adequate for purposes of identifying the property to be assessed within the energy assessment
998 area if the resolution or ordinance describes the property to be assessed by legal description and
999 tax identification number.
1000 (2) (a) A local entity that adopts an energy assessment resolution or ordinance under
1001 Subsection (1)(a) shall give notice of the adoption by:
1002 (i) publishing a copy or a summary of the resolution or ordinance once in a newspaper
1003 of general circulation where the energy assessment area is located; or
1004 (ii) if there is no newspaper of general circulation where the energy assessment area is
1005 located, posting a copy of the resolution or ordinance in at least three public places within the
1006 local entity's jurisdictional boundaries for at least 21 days.
1007 (b) Except as provided in Subsection (2)(a), a local entity is not required to make any
1008 other publication or posting of the resolution or ordinance.
1009 (3) Notwithstanding any other statutory provision regarding the effective date of a
1010 resolution or ordinance, each energy assessment resolution or ordinance takes effect:
1011 (a) on the date of publication or posting of the notice under Subsection (2); or
1012 (b) at a later date as provided in the resolution or ordinance.
1013 (4) (a) The governing body of each local entity that has adopted an energy assessment
1014 resolution or ordinance under Subsection (1) shall, within five days after the effective date of
1015 the resolution or ordinance, file a notice of assessment interest with the recorder of the county
1016 in which the property to be assessed is located.
1017 (b) Each notice of assessment interest under Subsection (4)(a) shall:
1018 (i) state that the local entity has an assessment interest in the property to be assessed;
1019 and
1020 (ii) describe the property to be assessed by legal description and tax identification
1021 number.
1022 (c) A local entity's failure to file a notice of assessment interest under this Subsection
1023 (4) has no effect on the validity of an assessment levied under an energy assessment resolution
1024 or ordinance adopted under Subsection (1).
1025 Section 14. Section 11-42a-202 is enacted to read:
1026 11-42a-202. Designation of energy assessment area -- Requirements.
1027 A local entity may not include property in an energy assessment area unless the owner
1028 of the property located in the energy assessment area provides to the local entity:
1029 (1) evidence that there are no existing delinquent taxes, special assessments, or water
1030 or sewer charges on the property;
1031 (2) evidence that the property is not subject to a trust deed or other lien on which there
1032 is a recorded notice of default, foreclosure, or delinquency that has not been cured;
1033 (3) evidence that there are no involuntary liens, including a lien on real property or on
1034 the proceeds of a contract relating to real property, for services, labor, or materials furnished in
1035 connection with the construction or improvement of the property; and
1036 (4) the written consent of each person or institution holding a lien on the property.
1037 Section 15. Section 11-42A-203 is enacted to read:
1038 11-42A-203. Levying an assessment within an energy assessment area--
1039 Prerequisites.
1040 (1) If a local entity designates an energy assessment area in accordance with this
1041 chapter, the local entity may:
1042 (a) levy an assessment within the energy assessment area; and
1043 (b) collect the assessment by:
1044 (i) directly billing the property owner; or
1045 (ii) inclusion on a property tax notice issued in accordance with this section and
1046 Section 59-2-1317.
1047 (2) If a local entity includes an assessment on a property tax notice as described in
1048 Subsection (1)(b) and bills for the assessment in the same manner as a property tax, the
1049 assessment constitutes a lien, is enforced, and is subject to other penalty provisions, in
1050 accordance with this chapter.
1051 (3) If a local entity includes an assessment on a property tax notice, the county
1052 treasurer shall, on the property tax notice:
1053 (a) clearly state that the assessment is for the improvement provided by the local entity;
1054 and
1055 (b) itemize the assessment separately from any other tax, fee, charge, interest, or
1056 penalty that is included on the property tax notice in accordance with Section 59-2-1317.
1057 Section 16. Section 11-42a-204 is enacted to read:
1058 11-42a-204. Limit on amount of assessment.
1059 (1) An assessment levied within an energy assessment area may not, in the aggregate,
1060 exceed the sum of:
1061 (a) the contract price or estimated contract price;
1062 (b) overhead costs not to exceed 15% of the sum of the contract price or estimated
1063 contract price;
1064 (c) an amount for contingencies of not more than 10% of the sum of the contract price
1065 or estimated contract price, if the assessment is levied before the completion of the
1066 construction of the improvements in the energy assessment area;
1067 (d) capitalized interest; or
1068 (e) an amount sufficient to fund a reserve fund.
1069 (2) A local entity may only use the proceeds of an energy assessment bond or any
1070 third-party financing to refinance or reimburse the costs of improvements authorized under this
1071 chapter if the property owner incurred or financed the costs no earlier than three years before
1072 the day on which the local entity issues the energy assessment bond or assigns the energy
1073 assessment lien.
1074 Section 17. Section 11-42a-205 is enacted to read:
1075 11-42a-205. Installment payment of assessments.
1076 (1) (a) In an energy assessment resolution or ordinance that a local entity adopts under
1077 Subsection 11-42a-201(1)(a), the governing body may provide that some or all of the
1078 assessment be paid in installments:
1079 (i) in accordance with the resolution or ordinance; and
1080 (ii) over a period not to exceed 30 years from the effective date of the resolution or
1081 ordinance.
1082 (2) (a) Each governing body that adopts an energy assessment resolution or ordinance
1083 that provides for the assessment to be paid in installments shall ensure that the resolution or
1084 ordinance provides that the unpaid balance of the assessment bears interest at a fixed rate, a
1085 variable rate, or a combination of fixed and variable rates, as determined by the governing
1086 body, from the effective date of the resolution or ordinance or another date that the resolution
1087 or ordinance specifies.
1088 (b) Each governing body that adopts an energy assessment resolution or ordinance that
1089 provides for the unpaid balance of the assessment to bear interest at a variable rate shall ensure
1090 that the resolution or ordinance specifies:
1091 (i) the basis upon which the rate is to be determined from time to time;
1092 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
1093 (iii) a maximum rate that the assessment may bear.
1094 (3) Interest payable on assessments may include:
1095 (a) interest on energy assessment bonds;
1096 (b) ongoing costs that the local entity incurs for administration of the energy
1097 assessment area; and
1098 (c) any costs that the local entity incurs with respect to:
1099 (i) securing a letter of credit or other instrument to secure payment or repurchase of
1100 bonds; or
1101 (ii) retaining a marketing agent or an indexing agent.
1102 (4) A property owner shall pay interest imposed in an energy assessment resolution or
1103 ordinance annually or at more frequent intervals as the resolution or ordinance provides, in
1104 addition to the amount of each installment.
1105 (5) (a) At any time, a property owner may prepay some or all of the assessment levied
1106 against the owner's property.
1107 (b) A local entity may require that a prepayment of an installment include:
1108 (i) an amount equal to the interest that would accrue on the assessment to the next date
1109 on which interest is payable on a bond issued or a loan made in anticipation of the collection of
1110 the assessment; and
1111 (ii) the amount necessary, as determined by the governing body or the officer that the
1112 governing body designates, to ensure the availability of money to pay:
1113 (A) interest that becomes due and payable on a bond or loan described in Subsection
1114 (5)(b)(i); and
1115 (B) any premiums that become payable on a loan that is prepaid or on a bond that is
1116 called for redemption in order to use the money from the prepaid assessment installment.
1117 Section 18. Section 11-42a-206 is enacted to read:
1118 11-42a-206. Assessment fund -- Uses of money in the fund -- Treasurer's duties.
1119 (1) Unless a local entity has assigned an energy assessment lien to a third-party lender
1120 under Section 11-42a-302, the governing body of each local entity that levies an assessment
1121 under this part on benefitted property within an energy assessment area, or the local entity's
1122 designee, may establish an assessment fund.
1123 (2) The governing body or the local entity's designee, as applicable, shall deposit into
1124 the assessment fund all money paid to or for the benefit of the local entity from an assessment
1125 and interest on the assessment.
1126 (3) The local entity may only expend money in an assessment fund for paying:
1127 (a) local entity obligations; and
1128 (b) costs that the local entity or the local entity's designee incurs with respect to the
1129 administration of the energy assessment area.
1130 (4) (a) The treasurer of the local entity or the local entity's designee, as applicable, is
1131 the custodian of the assessment fund, subject to Subsection (4)(c)(i).
1132 (b) The treasurer of the local entity or the local entity's designee, as applicable, shall:
1133 (i) keep the assessment fund intact and separate from all other local entity funds and
1134 money;
1135 (ii) invest money in the assessment fund in accordance with Title 51, Chapter 7, State
1136 Money Management Act; and
1137 (iii) keep on deposit in the assessment fund any interest the local entity receives from
1138 the investment of money in the assessment fund and use the interest exclusively for the
1139 purposes for which the governing body or the local entity's designee established the assessment
1140 fund.
1141 (c) The treasurer of the local entity or the local entity's designee, as applicable, may:
1142 (i) arrange for a trustee bank to hold the assessment fund on behalf of the local entity;
1143 and
1144 (ii) pay money out of the assessment fund subject to Subsection (3).
1145 Section 19. Section 11-42a-301 is enacted to read:
1146
1147 11-42a-301. Assessment constitutes a lien -- Characteristics of an energy
1148 assessment lien.
1149 (1) Each assessment levied under this chapter, including any installment of an
1150 assessment, interest, and any penalties and costs of collection, constitutes a lien against the
1151 assessed property, beginning on the effective date of the energy assessment resolution or
1152 ordinance that the local entity adopts under Subsection 11-42a-201(1)(a).
1153 (2) An energy assessment lien under this section:
1154 (a) is superior to the lien of a trust deed, mortgage, mechanic's or materialman's lien, or
1155 other encumbrances;
1156 (b) has the same priority as, but is separate and distinct from:
1157 (i) a lien for general property taxes; or
1158 (ii) any other energy assessment lien levied under this chapter;
1159 (c) applies to any reduced payment obligations without interruption, change in priority,
1160 or alteration in any manner; and
1161 (d) continues until the assessment and any related reduced payment obligations,
1162 interest, penalties, and costs are paid, regardless of:
1163 (i) a sale of the property for or on account of a delinquent general property tax, special
1164 tax, or other assessment; or
1165 (ii) the issuance of a tax deed, an assignment of interest by the county, or a sheriff's
1166 certificate of sale or deed.
1167 Section 20. Section 11-42a-302 is enacted to read:
1168 11-42a-302. Assignment of energy assessment lien.
1169 (1) (a) In lieu of issuing energy assessment bonds to finance the costs of improvements
1170 under this chapter, a third-party lender may provide financing to a property owner to finance,
1171 refinance, or reimburse the costs of improvements.
1172 (b) A local entity, through the local entity's executive or administrator, as applicable,
1173 may assign to the third-party lender described in Subsection (1)(a) the local entity's rights in the
1174 energy assessment lien by entering into a written agreement with the third-party lender.
1175 (2) (a) If a local entity assigns the local entity's rights in an energy assessment lien to a
1176 third-party lender under Subsection (1), the local entity's executive or administrator, as
1177 applicable, may authorize the designation of the energy assessment area and the levying of the
1178 assessment in lieu of the adoption of an energy assessment resolution or ordinance by the
1179 governing body of the local entity under Section 11-42a-201.
1180 (b) If a local entity assigns the local entity's rights under Subsection (1)(b), the local
1181 entity shall ensure that the written agreement with the third-party lender:
1182 (i) includes the information required to be included within an energy assessment
1183 resolution or ordinance described in Section 11-42a-201;
1184 (ii) complies with Section 11-42a-201;
1185 (iii) requires the third-party lender to be subject to an audit by the state auditor
1186 regarding the assigned energy assessment lien;
1187 (iv) requires the third party lender to submit to the local entity monthly reports,
1188 including information regarding the payments the third-party lender receives; and
1189 (v) insulates the local entity from liability for the actions of the third-party lender.
1190 (3) If a local entity assigns an energy assessment lien to a third-party lender, in
1191 accordance with Subsection (1), the third-party lender has and possesses the same powers and
1192 rights at law or in equity to enforce the lien that the local entity creating the lien would have if
1193 the local entity did not assign the lien, including the rights and powers of the local entity under
1194 Sections 11-42a-303 and 11-42a-304.
1195 (4) (a) Any financing in connection with the assignment of an energy assessment lien
1196 to a third-party lender under this section is not:
1197 (i) an obligation of the local entity that assigns the lien; or
1198 (ii) a charge against the general credit or taxing powers of the local entity that assigns
1199 the lien.
1200 (b) A local entity may not obligate itself to pay any assessment levied or bond issued
1201 under this chapter.
1202 (c) The assessments and the property upon which the energy assessment lien is
1203 recorded are the sole securities for the assignment of an energy assessment lien.
1204 Section 21. Section 11-42a-303 is enacted to read:
1205 11-42a-303. Enforcement of an energy assessment lien.
1206 (1) If an assessment or an installment of an assessment is not paid when due, the local
1207 entity may sell the property on which the assessment has been levied for the amount due plus
1208 interest, penalties, and costs, in the manner provided:
1209 (a) by resolution or ordinance of the local entity;
1210 (b) in Title 59, Chapter 2, Part 13, Collection of Taxes, for the sale of property for
1211 delinquent general property taxes; or
1212 (c) in Title 57, Chapter 1, Conveyances, as though the property were the subject of a
1213 trust deed in favor of the local entity.
1214 (2) If the local entity has assigned the local entity's rights to a third-party lender under
1215 Section 11-42a-302, the local entity shall provide written instructions to the third-party lender
1216 as to which method of enforcement the third-party lender shall pursue.
1217 (3) Except as otherwise provided in this chapter, each tax sale under Subsection (1)(b)
1218 is governed by Title 59, Chapter 2, Part 13, Collection of Taxes, to the same extent as if the
1219 sale were for the sale of property for delinquent general property taxes.
1220 (4) (a) In a foreclosure under Subsection (1)(c):
1221 (i) the local entity may bid at the sale;
1222 (ii) the local entity's governing body shall designate a trustee that satisfies the
1223 requirements of Section 57-1-21;
1224 (iii) each trustee designated under Subsection (4)(a)(ii) has a power of sale with respect
1225 to the property that is the subject of the delinquent energy assessment lien;
1226 (iv) the property that is the subject of the delinquent energy assessment lien is
1227 considered to have been conveyed to the trustee, in trust, for the sole purpose of permitting the
1228 trustee to exercise the trustee's power of sale under Subsection (4)(a)(iii);
1229 (v) if no one bids at the sale and pays the local entity the amount due on the
1230 assessment, plus interest and costs, the property is considered sold to the local entity for those
1231 amounts; and
1232 (vi) the local entity's chief financial officer may substitute and appoint one or more
1233 successor trustees, as provided in Section 57-1-22.
1234 (b) (i) The local entity shall disclose the designation of a trustee under Subsection
1235 (4)(a)(ii) in the notice of default that the trustee gives to commence the foreclosure.
1236 (ii) The local entity is not required to disclose the designation of a trustee under
1237 Subsection (4)(a)(ii) in an instrument separate from the notice described in Subsection
1238 (4)(b)(i).
1239 (5) (a) The redemption of property that is the subject of a tax sale under Subsection
1240 (1)(b) is governed by Title 59, Chapter 2, Part 13, Collection of Taxes.
1241 (b) The redemption of property that is the subject of a foreclosure proceeding under
1242 Subsection (1)(c) is governed by Title 57, Chapter 1, Conveyances.
1243 (6) The remedies described in this part for the collection of an assessment and the
1244 enforcement of an energy assessment lien are cumulative, and the use of one or more of those
1245 remedies does not deprive the local entity of any other available remedy, means of collecting
1246 the assessment, or means of enforcing the energy assessment lien.
1247 Section 22. Section 11-42a-304 is enacted to read:
1248 11-42a-304. Default in the payment of an installment of an assessment -- Interest
1249 and costs -- Restoring the property owner to the right to pay installments.
1250 (1) If an assessment is payable in installments and a default occurs in the payment of an
1251 installment when due:
1252 (a) the local entity may:
1253 (i) declare the delinquent amount to be immediately due and subject to collection as
1254 provided in this chapter;
1255 (ii) if the financed improvements are not completed by the completion deadline to
1256 which the property owner agreed in the bond or financing documents, then within 60 days after
1257 the completion deadline, accelerate payment of the total unpaid balance of the assessment and
1258 declare the whole of the unpaid principal and the interest then due to be immediately due and
1259 payable; and
1260 (iii) charge and collect all costs of collection, including attorney fees; and
1261 (b) except as provided in Subsection (1)(a)(ii), the local entity may not accelerate
1262 payment of the total unpaid balance of the assessment.
1263 (2) Delinquency interest accrues from the date of delinquency on all applicable
1264 amounts described in Subsection (1)(a) until the property owner pays the delinquency in full.
1265 (3) A local entity shall ensure that any interest that the local entity assesses under this
1266 section and any collection costs that the local entity charges under this section are the same as
1267 for delinquent real property taxes for the year in which the balance of the fee or charge
1268 becomes delinquent unless the local entity determines otherwise.
1269 (4) Notwithstanding Subsection (1), a property owner may regain the right to pay an
1270 assessment in installments as if no default had occurred if the owner pays the amount of all
1271 unpaid installments that are past due with interest, collection and foreclosure costs, and
1272 administrative, redemption, and other fees, including attorney fees, before:
1273 (a) the final date that payment may be legally made under a final sale or foreclosure of
1274 property to collect delinquent assessment installments, if the governing body enforces
1275 collection under Title 59, Chapter 2, Part 13, Collection of Taxes; or
1276 (b) the end of the three-month reinstatement period provided in Section 57-1-31, if the
1277 governing body enforces collection through the method of foreclosing trust deeds.
1278 Section 23. Section 11-42a-305 is enacted to read:
1279 11-42a-305. Release and discharge of energy assessment lien -- Notice of
1280 dissolution of energy assessment area.
1281 (1) (a) Upon payment in full of an assessment on a parcel of property, the local entity
1282 or third-party lender, in the event the local entity has assigned the energy assessment lien to the
1283 third-party lender, shall file a release and discharge of the energy assessment lien on the
1284 property in the office of the recorder of the county where the property is located.
1285 (b) The local entity or third-party lender shall ensure that each release and discharge
1286 under Subsection (1)(a):
1287 (i) includes a legal description of the affected property; and
1288 (ii) complies with other applicable requirements for recording a document.
1289 (2) (a) Upon payment in full of all assessments levied within an energy assessment
1290 area, or upon providing for payment in full, the local entity or third-party lender, in the event
1291 the local entity has assigned the energy assessment lien to the third-party lender, shall file a
1292 notice of the dissolution of the energy assessment area in the office of the recorder of the
1293 county where the property within the energy assessment area is located.
1294 (b) The local entity or third-party lender shall ensure that each notice under Subsection
1295 (2)(a):
1296 (i) includes a legal description of the property assessed within the energy assessment
1297 area; and
1298 (ii) complies with all other applicable requirements for recording a document.
1299 Section 24. Section 11-42a-401 is enacted to read:
1300
1301 11-42a-401. Local entity may authorize the issuance of energy assessment bonds --
1302 Limit on amount of bonds -- Features of energy assessment bonds.
1303 (1) A local entity may, subject to the requirements of this chapter, authorize the
1304 issuance of a bond to pay, refinance, or reimburse the costs of improvements in an energy
1305 assessment area, and other related costs, against the funds that the local entity will receive
1306 because of an assessment in an energy assessment area.
1307 (2) A local entity may, by resolution or ordinance, delegate to one or more officers of
1308 the issuer the authority to:
1309 (a) in accordance with the parameters in the resolution or ordinance, approve the final
1310 interest rate or rates, price, principal amount, maturity or maturities, redemption features, and
1311 other terms of the bond; and
1312 (b) approve and execute all documents relating to the issuance of a bond.
1313 (3) The aggregate principal amount of a bond authorized under Subsection (1) may not
1314 exceed:
1315 (a) the unpaid balance of assessments at the time the bond is issued; or
1316 (b) if the property owner incurred the costs of improvements to be refinanced or
1317 reimbursed no earlier than three years before the date of issuance of the energy assessment
1318 bond, the total costs of the improvements to be refinanced or reimbursed.
1319 (4) The issuer of an energy assessment bond issued under this section shall ensure that:
1320 (a) the energy assessment bond:
1321 (i) is fully negotiable for all purposes;
1322 (ii) matures at a time that does not exceed the period that installments of assessments
1323 in the assessment area are due and payable, plus one year;
1324 (iii) bears interest at the lowest rate or rates reasonably obtainable;
1325 (iv) is issued in registered form as provided in Title 15, Chapter 7, Registered Public
1326 Obligations Act;
1327 (v) provides that interest be paid semiannually, annually, or at another interval as
1328 specified by the governing body; and
1329 (vi) is not dated earlier than the effective date of the assessment ordinance; and
1330 (b) the resolution authorizing the issuance of the bond defines the place where the bond
1331 is payable, the form of the bond, and the manner in which the bond is sold.
1332 (5) (a) A local entity may:
1333 (i) (A) provide that an energy assessment bond may be called for redemption before
1334 maturity; and
1335 (B) fix the terms and conditions of redemption, including the notice to be given and
1336 any premium to be paid;
1337 (ii) subject to Subsection (5)(b), require an energy assessment bond to bear interest at a
1338 fixed or variable rate, or a combination of fixed and variable rates;
1339 (iii) specify the terms and conditions under which:
1340 (A) an energy assessment bond bearing interest at a variable interest rate may be
1341 converted to bear interest at a fixed interest rate; and
1342 (B) the local entity agrees to repurchase the bonds;
1343 (iv) engage a remarketing agent and indexing agent, subject to the terms and conditions
1344 to which the governing body agrees; and
1345 (v) include all costs associated with an energy assessment bond, including any costs
1346 resulting from any of the actions the local entity is authorized to take under this section, in an
1347 assessment levied under Section 11-42a-203.
1348 (b) If an energy assessment bond carries a variable interest rate, the local entity shall
1349 specify:
1350 (i) the basis upon which the variable rate is to be determined over the life of the bond;
1351 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
1352 (iii) a maximum rate that the bond may carry.
1353 (6) A local entity may only use the proceeds of an energy assessment bond to refinance
1354 or reimburse costs of improvements authorized under this chapter if the property owner
1355 incurred the costs no earlier than three years before the date of issuance of the energy
1356 assessment bond.
1357 Section 25. Section 11-42a-402 is enacted to read:
1358 11-42a-402. Energy assessment bond not a local entity's general obligation --
1359 Liability and responsibility of a local entity issuing an energy assessment bond -- No state
1360 liability.
1361 (1) (a) An energy assessment bond that a local entity issues under this chapter:
1362 (i) is a limited obligation of the local entity; and
1363 (ii) does not constitute nor give rise to:
1364 (A) a general obligation or liability of the local entity or the state; or
1365 (B) a charge against the general credit or taxing powers of the local entity or the state.
1366 (b) The local entity shall ensure that the limitation described in Subsection (1)(a) is
1367 plainly stated upon the face of the bond.
1368 (c) The assessments and the property upon which the energy assessment lien is
1369 recorded are the sole securities for an energy assessment bond.
1370 (2) (a) A local entity that issues an energy assessment bond is not liable and may not
1371 obligate itself for payment of the bond, except for a fund that the local entity creates and
1372 receives from assessments against which the bond is issued.
1373 (b) Unless otherwise provided in this chapter, a local entity that issues an energy
1374 assessment bond is responsible for:
1375 (i) the lawful levy of all assessments; and
1376 (ii) the faithful accounting, collection, settlement, and payment of assessments.
1377 Section 26. Section 11-42a-403 is enacted to read:
1378 11-42a-403. Refunding assessment bonds.
1379 (1) A local entity may, by a resolution adopted by the governing body, authorize the
1380 issuance of a refunding assessment bond as provided in this section, to repay prior bonds in
1381 whole or in part, whether at or before the maturity of the prior bonds, at stated maturity, upon
1382 redemption, or upon declaration of maturity.
1383 (2) (a) Subject to Subsection (2)(b), the issuance of a refunding assessment bond is
1384 governed by Title 11, Chapter 27, Utah Refunding Bond Act.
1385 (b) If there is a conflict between a provision of Title 11, Chapter 27, Utah Refunding
1386 Bond Act, and a provision of this part, the provision of this part governs.
1387 (3) In issuing a refunding assessment bond, the local entity shall require the refunding
1388 assessment bond and interest on the bond to be payable from and secured, to the extent the
1389 prior bonds were payable from and secured, by:
1390 (a) the same assessments; or
1391 (b) the reduced assessments adopted by the governing body under Section 11-42a-404.
1392 (4) A refunding assessment bond:
1393 (a) is payable solely from the sources described in Subsection (3);
1394 (b) matures no later than one year after the date of final maturity of the prior bonds;
1395 (c) does not mature at a time or bear interest at a rate that will cause the local entity to
1396 be unable to pay the bond when due from the sources listed in Subsection (3);
1397 (d) bears interest as the governing body determines and subject to the provisions
1398 relating to interest in Section 11-42a-401; and
1399 (e) pays one or more issues of the issuing local entity's prior bonds.
1400 (5) If the bond refunds two or more issues of a local entity's prior bonds, the local
1401 entity may issue the bond in one or more series.
1402 Section 27. Section 11-42a-404 is enacted to read:
1403 11-42a-404. Reducing assessments after issuance of refunding assessment bonds --
1404 Retroactive effect.
1405 (1) Each local entity that issues a refunding assessment bond shall adopt a resolution or
1406 ordinance amending the previously adopted energy assessment resolution or ordinance that:
1407 (a) reduces, as determined by the local entity's governing body:
1408 (i) the assessments levied under the previous resolution or ordinance;
1409 (ii) the interest payable on the assessments levied under the previous resolution or
1410 ordinance; or
1411 (iii) both the assessments levied under the previous resolution or ordinance and the
1412 interest payable on those assessments;
1413 (b) allocates the reductions under Subsection (1)(a) so the then unpaid assessments
1414 levied against benefitted property within the assessment area and the unpaid interest on those
1415 assessments receive a proportionate share of the reductions;
1416 (c) states the amounts of the reduced payment obligation for each property assessed in
1417 the prior resolution or ordinance; and
1418 (d) states the effective date of any reduction in the assessment levied in the prior
1419 resolution or ordinance.
1420 (2) In a resolution or ordinance described in Subsection (1), the local entity is not
1421 required to describe each block, lot, part of a block or lot, tract, or parcel of property assessed.
1422 (3) The local entity shall ensure that each reduction under Subsection (1)(a) is equal to
1423 the amount by which the principal, interest, or combined principal and interest payable on the
1424 refunding assessment bond, after accounting for incidental refunding costs associated with the
1425 refunding assessment bond, is less than the amount of principal, interest, or combined principal
1426 and interest payable on the prior bonds.
1427 (4) A reduction under Subsection (1)(a) does not apply to an assessment or interest
1428 paid before the reduction.
1429 (5) A resolution or ordinance under Subsection (1) may not become effective before
1430 the date when any principal, interest, redemption premium on the prior bonds, and advances
1431 under Subsection 11-42-607(5)(a) are fully paid or legally considered to be paid.
1432 (6) Except for the amount of reduction to a prior assessment or interest on a prior
1433 assessment, neither the issuance of a refunding assessment bond nor the adoption of a
1434 resolution or ordinance under Subsection (1) affects:
1435 (a) the validity or continued enforceability of a prior assessment or interest on the
1436 assessment; or
1437 (b) the validity, enforceability, or priority of an energy assessment lien.
1438 (7) Each reduction of a prior assessment and the interest on the assessment continues to
1439 exist in favor of the refunding assessment bonds.
1440 (8) Even after payment in full of the prior bonds that a refunding assessment bond
1441 refunds, an energy assessment lien continues to exist to secure payment of:
1442 (a) the reduced payment obligations;
1443 (b) the penalties and costs of collection of those obligations; and
1444 (c) the refunding assessment bond.
1445 (9) A lien securing a reduced payment obligation from which a refunding assessment
1446 bond is payable and by which the bond is secured is subordinate to an energy assessment lien
1447 that secures the original or prior assessment and prior bonds until the prior bonds are paid in
1448 full or legally considered to be paid in full.
1449 (10) Unless prior bonds are paid in full simultaneously with the issuance of a refunding
1450 assessment bond, the local entity shall:
1451 (a) irrevocably set aside the proceeds of the refunding assessment bond in an escrow or
1452 other separate account; and
1453 (b) pledge the account described in Subsection (10)(a) as security for the payment of
1454 the prior bonds, the refunding assessment bond, or both.
1455 (11) This part applies to any refunding assessment bond:
1456 (a) regardless of whether the local entity already issued the bond; and
1457 (b) regardless of whether the local entity issued the prior bonds that the bond refunded
1458 under prior law and regardless of whether that law is currently in effect.
1459 Section 28. Section 63I-1-263 is amended to read:
1460 63I-1-263. Repeal dates, Titles 63A to 63N.
1461 (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
1462 (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
1463 (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
1464 1, 2018.
1465 (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
1466 repealed November 30, 2019.
1467 (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
1468 2020.
1469 (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
1470 repealed July 1, 2021.
1471 (7) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
1472 2020.
1473 (8) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
1474 (9) On July 1, 2025:
1475 (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
1476 Development Coordinating Committee," is repealed;
1477 (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
1478 sites for the transplant of species to local government officials having jurisdiction over areas
1479 that may be affected by a transplant.";
1480 (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
1481 Coordinating Committee" is repealed;
1482 (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
1483 Coordinating Committee created in Section 63J-4-501 and" is repealed;
1484 (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
1485 Coordinating Committee and" is repealed;
1486 (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
1487 accordingly;
1488 (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
1489 (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
1490 word "and" is inserted immediately after the semicolon;
1491 (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
1492 (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
1493 and
1494 (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
1495 renumbered accordingly.
1496 (10) (a) Subsection 63J-1-602.4(15) is repealed July 1, 2022.
1497 (b) When repealing Subsection 63J-1-602.4(15), the Office of Legislative Research and
1498 General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
1499 necessary changes to subsection numbering and cross references.
1500 [
1501 63M-7-504, is repealed July 1, 2017.
1502 [
1503 2017.
1504 [
1505 [
1506 is repealed January 1, 2021.
1507 (b) Subject to Subsection [
1508 tax credits for certain persons in recycling market development zones, are repealed for taxable
1509 years beginning on or after January 1, 2021.
1510 (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
1511 (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
1512 59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
1513 (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
1514 the expenditure is made on or after January 1, 2021.
1515 (d) Notwithstanding Subsections [
1516 tax credit in accordance with Section 59-7-610 or 59-10-1007 if:
1517 (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
1518 (ii) (A) for the purchase price of machinery or equipment described in Section
1519 59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
1520 2020; or
1521 (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
1522 expenditure is made on or before December 31, 2020.
1523 [
1524 [
1525 January 1, 2021.
1526 (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
1527 calendar years beginning on or after January 1, 2021.
1528 (c) Notwithstanding Subsection [
1529 in accordance with Section 59-9-107 if:
1530 (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
1531 31, 2020; and
1532 (ii) the qualified equity investment that is the basis of the tax credit is certified under
1533 Section 63N-2-603 on or before December 31, 2023.
1534 [
1535 July 1, 2018.
1536 Section 29. Section 63J-1-505 is amended to read:
1537 63J-1-505. Payment of fees prerequisite to service -- Exception.
1538 (1) (a) State and county officers required by law to charge fees may not perform any
1539 official service unless the fees prescribed for that service are paid in advance.
1540 (b) When the fee is paid, the officer shall perform the services required.
1541 (c) An officer is liable upon the officer's official bond for every failure or refusal to
1542 perform an official duty when the fees are tendered.
1543 (2) (a) Except as provided in Subsection (2)(b), no fees may be charged:
1544 (i) to the officer's state, or any county or subdivision of the state;
1545 (ii) to any public officer acting for the state, county, or subdivision;
1546 (iii) in cases of habeas corpus;
1547 (iv) in criminal causes before final judgment;
1548 (v) for administering and certifying the oath of office;
1549 (vi) for swearing pensioners and their witnesses; or
1550 (vii) for filing and recording bonds of public officers.
1551 (b) Fees may be charged for payment:
1552 (i) of recording fees for assessment area recordings in compliance with [
1553 Sections 11-42-205 and 11-42a-302;
1554 (ii) of recording fees for judgments recorded in compliance with Sections 57-3-106 and
1555 78A-7-105; and
1556 (iii) to the state engineer under Section 73-2-14.
1557 Section 30. Section 63J-1-602.4 is amended to read:
1558 63J-1-602.4. List of nonlapsing funds and accounts -- Title 61 through Title 63N.
1559 (1) Funds paid to the Division of Real Estate for the cost of a criminal background
1560 check for a mortgage loan license, as provided in Section 61-2c-202.
1561 (2) Funds paid to the Division of Real Estate for the cost of a criminal background
1562 check for principal broker, associate broker, and sales agent licenses, as provided in Section
1563 61-2f-204.
1564 (3) Certain funds donated to the Department of Human Services, as provided in
1565 Section 62A-1-111.
1566 (4) Appropriations from the National Professional Men's Basketball Team Support of
1567 Women and Children Issues Restricted Account created in Section 62A-1-202.
1568 (5) Certain funds donated to the Division of Child and Family Services, as provided in
1569 Section 62A-4a-110.
1570 (6) Appropriations from the Choose Life Adoption Support Restricted Account created
1571 in Section 62A-4a-608.
1572 (7) Appropriations to the Division of Services for People with Disabilities, as provided
1573 in Section 62A-5-102.
1574 (8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
1575 underground storage tanks under Section 63A-9-401.
1576 (9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
1577 provided in Section 63C-6-104.
1578 (10) Funds appropriated or collected for publishing the Office of Administrative Rules'
1579 publications, as provided in Section 63G-3-402.
1580 (11) The Immigration Act Restricted Account created in Section 63G-12-103.
1581 (12) Money received by the military installation development authority, as provided in
1582 Section 63H-1-504.
1583 (13) Appropriations to the Utah Science Technology and Research Initiative created in
1584 Section 63M-2-301.
1585 (14) Appropriations to fund the Governor's Office of Economic Development's
1586 Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
1587 (15) Funds collected for directing and administering the C-PACE district created in
1588 Section 11-42a-302.
1589 [
1590 [
1591 Athletic Commission, as provided under Section 63N-10-301.
1592 Section 31. Section 63M-4-401 is amended to read:
1593 63M-4-401. Creation of Office of Energy Development -- Director -- Purpose --
1594 Rulemaking regarding confidential information.
1595 (1) There is created an Office of Energy Development.
1596 (2) (a) The governor's energy advisor shall serve as the director of the office or appoint
1597 a director of the office.
1598 (b) The director:
1599 (i) shall, if the governor's energy advisor appoints a director under Subsection (2)(a),
1600 report to the governor's energy advisor; and
1601 (ii) may appoint staff as funding within existing budgets allows.
1602 (c) The office may consolidate energy staff and functions existing in the state energy
1603 program.
1604 (3) The purposes of the office are to:
1605 (a) serve as the primary resource for advancing energy and mineral development in the
1606 state;
1607 (b) implement:
1608 (i) the state energy policy under Section 63M-4-301; and
1609 (ii) the governor's energy and mineral development goals and objectives;
1610 (c) advance energy education, outreach, and research, including the creation of
1611 elementary, higher education, and technical college energy education programs;
1612 (d) promote energy and mineral development workforce initiatives; and
1613 (e) support collaborative research initiatives targeted at Utah-specific energy and
1614 mineral development.
1615 (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
1616 Funds Procedures Act, the office may:
1617 (a) seek federal grants or loans;
1618 (b) seek to participate in federal programs; and
1619 (c) in accordance with applicable federal program guidelines, administer federally
1620 funded state energy programs.
1621 (5) The office shall perform the duties required by Sections 11-42a-106, 59-7-614.7,
1622 59-10-1029, Part 5, Alternative Energy Development Tax Credit Act, and Part 6, High Cost
1623 Infrastructure Development Tax Credit Act.
1624 (6) (a) For purposes of administering this section, the office may make rules, by
1625 following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
1626 Rulemaking Act, to maintain as confidential, and not as a public record, information that the
1627 office receives from any source.
1628 (b) The office shall maintain information the office receives from any source at the
1629 level of confidentiality assigned by the source.
1630 (7) The office may charge application, filing, and processing fees in amounts
1631 determined by the office in accordance with Section 63J-1-504 for performing office duties
1632 described in this part.
1633 Section 32. Repealer.
1634 This bill repeals:
1635 Section 11-42-209, Designation of assessment area for an energy efficiency
1636 upgrade, a renewable energy system, or electric vehicle charging infrastructure --
1637 Requirements.
1638 Section 33. Effective date.
1639 If approved by two-thirds of all the members elected to each house, this bill takes effect
1640 upon approval by the governor, or the day following the constitutional time limit of Utah
1641 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
1642 the date of veto override.
Legislative Review Note
Office of Legislative Research and General Counsel