Representative R. Curt Webb proposes the following substitute bill:


1     
POLITICAL SUBDIVISION LIEN AUTHORITY

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: R. Curt Webb

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill addresses provisions related to political subdivision lien authority.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     clarifies certain existing grants of political subdivision lien authority to ensure that
14     each grant provides an identifiable effective date, notice mechanism, and
15     enforcement mechanism;
16          ▸     imposes limits on political subdivision liens;
17          ▸     provides that certain political subdivision liens are invalid against a subsequent
18     bona fide purchaser if the lien is not recorded before the purchase;
19          ▸     prohibits a county treasurer from including an item on the property tax notice unless
20     the item's inclusion is expressly authorized in statute;
21          ▸     amends the items that a county treasurer is required to include on a property tax
22     notice;
23          ▸     addresses the priority status of a political subdivision lien listed on the property tax
24     notice;
25          ▸     allows a tax sale for delinquencies of any item that is statutorily authorized to be
26     included on the property tax notice; and
27          ▸     makes technical and conforming changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          10-7-30, Utah Code Annotated 1953
35          10-8-17, as last amended by Laws of Utah 2010, Chapter 378
36          10-8-19, Utah Code Annotated 1953
37          10-11-4, as last amended by Laws of Utah 2017, Chapter 460
38          11-42-501, as last amended by Laws of Utah 2015, Chapter 349
39          11-42-502, as last amended by Laws of Utah 2016, Chapter 85
40          11-42-502.1, as enacted by Laws of Utah 2016, Chapter 85
41          11-42a-201, as enacted by Laws of Utah 2017, Chapter 470
42          11-42a-301, as enacted by Laws of Utah 2017, Chapter 470
43          11-42a-303, as enacted by Laws of Utah 2017, Chapter 470
44          17B-1-902, as last amended by Laws of Utah 2017, Chapter 460
45          17B-2a-506, as last amended by Laws of Utah 2015, Chapter 349
46          17B-2a-1007, as last amended by Laws of Utah 2015, Chapter 258
47          59-2-1317, as last amended by Laws of Utah 2016, Chapter 353
48          59-2-1331, as last amended by Laws of Utah 2015, Chapter 201
49          59-2-1332.5, as last amended by Laws of Utah 2016, Chapter 368
50          59-2-1343, as last amended by Laws of Utah 1995, Chapter 181
51     ENACTS:
52          11-58-101, Utah Code Annotated 1953
53          11-58-102, Utah Code Annotated 1953
54          11-58-103, Utah Code Annotated 1953
55     

56     Be it enacted by the Legislature of the state of Utah:
57          Section 1. Section 10-7-30 is amended to read:
58          10-7-30. Failure to pay for repairs -- Lien on company's property.
59          (1) In the event of the refusal of any [such] company to pave, repave, or repair as
60     required [herein] in this section when so directed, upon the paving or repaving of any street
61     upon which [its] the company's track is laid, the municipality [shall have power to] may:
62          (a) pave, repave, or repair the [same,] street; and
63          (b) collect the cost and expense of [such] the paving, repaving, or repairing [may be
64     collected] by levy and sale of any property of [such] the company in the same manner as
65     special taxes are [now or may be] collected. [Special]
66          (2) The municipality may levy special taxes, for the purpose [of paying the cost of any
67     such paving or repaving, macadamizing] described in Subsection (1)(b) or repairing of [any
68     such] the railway [may be levied], upon:
69          (a) all as one property:
70          (i) the track, including the ties, iron, roadbed, right of way, sidetracks, and
71     appurtenances[,]; and
72          (ii) buildings and real estate belonging to [any such] the company and used for the
73     purpose of [such] the railway business [all as one property,]; or [upon such]
74          (b) the parts of [such] the track, appurtenances, and property as may be within the
75     district paved, repaved, macadamized, or repaired[, and shall be a lien upon the property levied
76     upon from the time of the levy until satisfied. No].
77          (3) (a) The municipality may record the levied special taxes described in Subsection (2)
78     as a political subdivision lien, as that term is defined in Section 11-58-102, upon the levied
79     property, in accordance with Title 11, Chapter 58, Political Subdivision Lien Authority.
80          (b) Any mortgage, conveyance, pledge, transfer, or encumbrance of [any such] the
81     property or of any rolling stock or personal property of [any such] the company[, created or
82     suffered by it after the time when any street or part thereof upon which any railway shall have
83     been laid shall have been ordered paved, repaved, macadamized or repaired shall be made or
84     suffered except] that the company creates or suffers is subject to the lien [of such special taxes,
85     if such levy is in contemplation].
86          Section 2. Section 10-8-17 is amended to read:
87          10-8-17. City may act as distributing agent -- Collection of operating costs from
88     users.
89          (1) When the governing body of a city is acting as distributing agent of water, not the
90     property of the corporation, outside of or within its corporate limits, the governing body may
91     annually [prior to], before the commencement of the irrigation season, determine and fix the
92     sum [deemed] considered necessary to meet the expense of the current year for the purpose of:
93          (a) controlling, regulating, and distributing [such] the water; and
94          (b) constructing and keeping in repair the necessary means for diverting, conveying,
95     and distributing the [same, and they] water.
96          (2) (a) The governing body may collect [such] the sum described in Subsection (1)
97     from the persons entitled to the use of [such] the water, pro rata according to acreage, whether
98     the acreage is situate within or without the corporate boundary of the city[; provided, that the
99     funds so derived may not be appropriated or used].
100          (b) The governing body may not appropriate or use the derived funds for any other
101     purpose[, and in] than the purposes described in Subsection (1).
102          (c) In the event that the governing body collects a greater sum [is collected] in any one
103     year than is necessary [for said purpose, the excess thereof shall be carried] under Subsection
104     (1), the governing body shall carry the excess to the account of the year next following and
105     [applied to the purpose for which it was collected. Such sum shall be fixed and collected as
106     provided by ordinance, and until collected the same shall be] apply the excess to the purposes
107     described in Subsection (1).
108          (d) The governing body shall enact an ordinance fixing and providing for the collection
109     of the sum described in Subsection (1).
110          (3) (a) Until the governing body collects the sum described in Subsection (1), the sum
111     is a political subdivision lien, as that term is defined in Section 11-58-102, on [such] the
112     subject water rights and the land irrigated [thereby] by the water, in accordance with Title 11,
113     Chapter 58, Political Subdivision Lien Authority.
114          (b) If the lien amount is not paid in full by September 15 of a given year:
115          (i) the governing body shall certify any unpaid amount to the treasurer of the county in
116     which the liened property is located; and
117          (ii) the county treasurer shall include the certified amount on the property tax notice
118     required by Section 59-2-1317 for that year.
119          Section 3. Section 10-8-19 is amended to read:
120          10-8-19. Water supply -- Special tax for increasing supply when city acting as
121     distributing agent.
122          (1) Whenever a city is acting as distributing agent of water, not the property of the
123     corporation, outside of or within the corporate limits of such city, upon written petition of the
124     owners of [such] the water, [it] the city may increase the supply of water [owned by such
125     persons] that the petitioners own by any means provided in Section 10-8-18[, and for that
126     purpose].
127          (2) (a) To increase the supply of water under Subsection (1), the city may levy and
128     collect from the owners of [such] the water a tax not exceeding [such] the sum per acre of land
129     owned [by such persons as may have been] as agreed upon and designated in [said] the
130     petition[; said tax when so collected to be appropriated exclusively to said purposes, except
131     such part thereof].
132          (b) The city shall appropriate the tax collected under Subsection (2)(a) exclusively to
133     increase the supply of water under Subsection (1), except as is necessary to pay the expense of
134     levying and collecting the [same. Said tax shall constitute] tax.
135          (3) (a) Until the city collects the tax described in Subsection (2), the unpaid tax is a
136     political subdivision lien, as that term in defined in Section 11-58-102, upon the owner's water
137     rights [of the persons] and the land [irrigated thereby, and shall be levied and collected as
138     provided in Section 10-8-17] that the water irrigates, in accordance with Title 11, Chapter 58,
139     Political Subdivision Lien Authority.
140          (b) If the lien amount is not paid in full by September 15 of a given year:
141          (i) the city shall certify any unpaid amount to the treasurer of the county in which the
142     liened property is located; and
143          (ii) the county treasurer shall include the certified amount on the property tax notice
144     required by Section 59-2-1317 for that year.
145          Section 4. Section 10-11-4 is amended to read:
146          10-11-4. Costs of removal to be included in tax notice.
147          (1) A municipality may certify to the treasurer of the county in which a property
148     described in Section 10-11-3 is located, the unpaid costs and expenses that the municipality has
149     incurred under Section 10-11-3 with regard to the property.
150          (2) If the municipality certifies with the treasurer of the county any costs or expenses
151     incurred for a property under Section 10-11-3, the treasurer shall enter the amount of the costs
152     and expenses on the assessment and tax rolls of the county in the column prepared for that
153     purpose.
154          (3) If current tax notices have been mailed, the treasurer of the county may carry the
155     costs and expenses described in Subsection (2) on the assessment and tax rolls to the following
156     year.
157          (4) (a) After entry by the treasurer of the county[,] under Subsection (2):
158          (i) the amount entered[: (a) shall have the force and effect of a valid judgment of the
159     district court; (b)] is a nonrecurring direct charge that constitutes a political subdivision lien, as
160     those terms are defined in Section 11-58-102, upon the property[; and] in accordance with Title
161     11, Chapter 58, Political Subdivision Lien Authority; and
162          [(c)] (ii) [shall be collected by the] the treasurer of the county in which the property is
163     located shall collect the amount entered at the time of the payment of general taxes.
164          (b) (i) Notwithstanding Subsection (7), the municipality may pursue judicial
165     foreclosure to enforce the lien rather than relying on a tax sale.
166          (ii) If the municipality pursues judicial foreclosure under this Subsection (4)(b):
167          (A) the municipality shall record the lien in the office of the recorder of the county in
168     which the liened property is located; and
169          (B) the priority date of the lien, for the purpose of the judicial foreclosure, is the date
170     on which the municipality records the lien.
171          (5) Upon payment of the costs and expenses that the treasurer of the county enters
172     under Subsection (2):
173          [(a) the judgement is satisfied;]
174          [(b)] (a) the lien described in Subsection (4) is released from the property; [and]
175          (b) the municipality shall record a release of the lien in the office of the recorder of the
176     county in which the liened property is located; and
177          [(c)] (c) [receipt shall be acknowledged] the treasurer shall acknowledge receipt upon
178     the general tax receipt [issued by] that the treasurer issues.
179          (6) (a) If a municipality certifies unpaid costs and expenses under this section, the
180     treasurer of the county shall provide a notice, in accordance with this Subsection (6), to the
181     owner of the property for which the municipality has incurred the unpaid costs and expenses.
182          (b) In providing the notice required in Subsection (6)(a), the treasurer of the county
183     shall:
184          (i) include the amount of unpaid costs and expenses that a municipality has certified on
185     or before July 15 of the current year;
186          (ii) provide contact information, including a phone number, for the property owner to
187     contact the municipality to obtain more information regarding the amount described in
188     Subsection (6)(b)(i); and
189          (iii) notify the property owner that:
190          (A) unless the municipality completes a judicial foreclosure under Subsection (4)(b), if
191     the amount described in Subsection (6)(b)(i) is not paid in full by September 15 of the current
192     year, any unpaid amount will be included on the property tax notice required by Section
193     59-2-1317; and
194          (B) the failure to pay the amount described in Subsection (6)(b)(i) has resulted in a lien
195     on the property in accordance with [this section] Subsection (4).
196          (c) The treasurer of the county shall provide the notice required by this Subsection (6)
197     to a property owner on or before August 1.
198          (d) If the municipality pursues judicial foreclosure under Subsection (4)(b) and
199     completes the judicial foreclosure, before any tax sale proceedings on a property described in
200     Subsection (1), the treasurer of the county shall remove from the assessment roll any costs or
201     expenses that the treasurer added to the assessment roll under Subsection (2).
202          (7) If the amount described in Subsection (6)(b)(i) is not paid in full by September 15
203     of a given year, the county treasurer shall include any unpaid amount on the property tax notice
204     required by Section 59-2-1317 for that year.
205          [(7)] (8) This section does not apply to any public building, public structure, or public
206     improvement.
207          Section 5. Section 11-42-501 is amended to read:
208          11-42-501. Assessment constitutes a lien -- Characteristics of an assessment lien.
209          (1) [Each] If the governing body of the local entity that adopts an assessment resolution
210     or ordinance records the assessment resolution or ordinance and the notice of proposed
211     assessment, in accordance with Section 11-42-206, in the office of the recorder of the county in
212     which the assessed property is located, each assessment levied under this chapter, including any
213     installment of an assessment, interest, and any penalties and costs of collection, constitutes a
214     political subdivision lien, as that term is defined in Section 11-58-102, against the property
215     assessed, in accordance with Title 11, Chapter 58, Political Subdivision Lien Authority, as of
216     the effective date of the assessment resolution or ordinance.
217          (2) A lien under this section:
218          (a) is superior to the lien of a trust deed, mortgage, mechanic's or materialman's lien, or
219     other encumbrances;
220          (b) has the same priority as, but is separate and distinct from, a lien for general property
221     taxes;
222          (c) applies without interruption, change in priority, or alteration in any manner to any
223     reduced payment obligations; and
224          (d) continues until the assessments, reduced payment obligations, and any interest,
225     penalties, and costs are paid, despite:
226          (i) a sale of the property for or on account of a delinquent general property tax, special
227     tax, or other assessment; or
228          (ii) the issuance of a tax deed, an assignment of interest by the county, or a sheriff's
229     certificate of sale or deed.
230          Section 6. Section 11-42-502 is amended to read:
231          11-42-502. Enforcement of an assessment lien -- Pre-May 10, 2016, procedure.
232          (1) The provisions of this section apply to any property that is:
233          (a) (i) located within the boundaries of an assessment area; and
234          (ii) the subject of a foreclosure procedure initiated before May 10, 2016, for an
235     assessment or an installment of an assessment that is not paid when due; or
236          (b) located within the boundaries of an assessment area for which the local entity
237     issued an assessment bond or a refunding assessment bond:
238          (i) before May 10, 2016;
239          (ii) that has not reached final maturity; and
240          (iii) that is not refinanced on or after May 10, 2016.
241          (2) (a) If an assessment or an installment of an assessment is not paid when due[,]:
242          (i) (A) the governing body of the local entity that levies the assessment shall certify any
243     unpaid amount to the treasurer of the county in which the assessed property is located; and
244          (B) the county treasurer shall include the certified amount on the property tax notice
245     required by Section 59-2-1317 for that year; and
246          (ii) the local entity may sell the property on which the assessment has been levied for
247     the amount due plus interest, penalties, and costs, in the manner provided:
248          [(a)] (A) by resolution or ordinance of the local entity;
249          [(b)] (B) in Title 59, Chapter 2, Part 13, Collection of Taxes, for the sale of property
250     for delinquent general property taxes; or
251          [(c)] (C) in Title 57, Chapter 1, Conveyances, as though the property were the subject
252     of a trust deed in favor of the local entity.
253          (b) Nothing in Subsection (2)(a)(i) or in Title 11, Chapter 58, Political Subdivision
254     Lien Authority, prohibits or diminishes a local entity's authority to pursue any remedy in
255     Subsection (2)(a)(ii).
256          (3) Except as otherwise provided in this chapter, each tax sale under Subsection (2)(b)
257     shall be governed by Title 59, Chapter 2, Part 13, Collection of Taxes, to the same extent as if
258     the sale were for the sale of property for delinquent general property taxes.
259          (4) (a) In a foreclosure under Subsection (2)(c):
260          (i) the local entity may bid at the sale;
261          (ii) the local entity's governing body shall designate a trustee satisfying the
262     requirements of Section 57-1-21;
263          (iii) each trustee designated under Subsection (4)(a)(ii) has a power of sale with respect
264     to the property that is the subject of the delinquent assessment lien;
265          (iv) the property that is the subject of the delinquent assessment lien is considered to
266     have been conveyed to the trustee, in trust, for the sole purpose of permitting the trustee to
267     exercise the trustee's power of sale under Subsection (4)(a)(iii);
268          (v) if no one bids at the sale and pays the local entity the amount due on the
269     assessment, plus interest and costs, the property is considered sold to the local entity for those
270     amounts; and
271          (vi) the local entity's chief financial officer may substitute and appoint one or more
272     successor trustees, as provided in Section 57-1-22.
273          (b) The designation of a trustee under Subsection (4)(a)(ii) shall be disclosed in the
274     notice of default that the trustee gives to commence the foreclosure, and need not be stated in a
275     separate instrument.
276          (5) (a) The redemption of property that is the subject of a tax sale under Subsection
277     (2)(b) is governed by Title 59, Chapter 2, Part 13, Collection of Taxes.
278          (b) The redemption of property that is the subject of a foreclosure proceeding under
279     Subsection (2)(c) is governed by Title 57, Chapter 1, Conveyances.
280          (6) (a) The remedies described in this part for the collection of an assessment and the
281     enforcement of an assessment lien are cumulative.
282          (b) The use of one or more of the remedies described in this part does not deprive the
283     local entity of any other available remedy or means of collecting the assessment or enforcing
284     the assessment lien.
285          Section 7. Section 11-42-502.1 is amended to read:
286          11-42-502.1. Enforcement of an assessment lien -- Post-May 10, 2016, procedure.
287          (1) (a) Except as provided in Subsection (1)(b), the provisions of this section apply to
288     any property that is:
289          (i) located within the boundaries of an assessment area; and
290          (ii) the subject of a foreclosure procedure initiated on or after May 10, 2016, for an
291     assessment or an installment of an assessment that is not paid when due.
292          (b) The provisions of this chapter do not apply to property described in Subsection
293     11-42-502(1)(b).
294          (2) (a) If an assessment or an installment of an assessment is not paid when due[,]:
295          (i) (A) the governing body of the local entity that levies the assessment shall certify any
296     unpaid amount to the treasurer of the county in which the assessed property is located; and
297          (B) the county treasurer shall include the certified amount on the property tax notice
298     required by Section 59-2-1317 for that year; and
299          (ii) the local entity may sell the property on which the assessment has been levied for
300     the amount due plus interest, penalties, and costs:
301          [(a)] (A) in the manner provided in Title 59, Chapter 2, Part 13, Collection of Taxes,
302     for the sale of property for delinquent general property taxes;
303          [(b)] (B) by judicial foreclosure; or
304          [(c)] (C) in the manner described in Title 57, Chapter 1, Conveyances, if[: (i)] the
305     property is in a voluntary assessment area[;] and [(ii)] the owner of record of the property at the
306     time the local entity initiates the process to sell the property in accordance with Title 57,
307     Chapter 1, Conveyances, executed a property owner's consent form described in Subsection
308     11-42-202(1)(l) that includes a provision described in Subsection 11-42-202(1)(l)(iv).
309          (b) Nothing in Subsection (2)(a)(i) or in Title 11, Chapter 58, Political Subdivision
310     Lien Authority, prohibits or diminishes a local entity's authority to pursue any remedy in
311     Subsection (2)(a)(ii).
312          (3) Except as otherwise provided in this chapter, each tax sale under Subsection (2)(a)
313     shall be governed by Title 59, Chapter 2, Part 13, Collection of Taxes, to the same extent as if
314     the sale were for the sale of property for delinquent general property taxes.
315          (4) (a) The redemption of property that is the subject of a tax sale under Subsection
316     (2)(a) is governed by Title 59, Chapter 2, Part 13, Collection of Taxes.
317          (b) The redemption of property that is the subject of a judicial foreclosure proceeding
318     under Subsection (2)(b) is governed by Title 78B, Chapter 6, Part 9, Mortgage Foreclosure.
319          (c) The redemption of property that is the subject of a foreclosure proceeding under
320     Subsection (2)(c) is governed by Title 57, Chapter 1, Conveyances.
321          (5) (a) The remedies described in this part for the collection of an assessment and the
322     enforcement of an assessment lien are cumulative.
323          (b) The use of one or more of the remedies described in this part does not deprive the
324     local entity of any other available remedy or means of collecting the assessment or enforcing
325     the assessment lien.
326          Section 8. Section 11-42a-201 is amended to read:
327          11-42a-201. Resolution or ordinance designating an energy assessment area,
328     levying an assessment, and issuing an energy assessment bond.
329          (1) (a) Except as otherwise provided in this chapter, and subject to the requirements of
330     this part, at the request of a property owner on whose property or for whose benefit an
331     improvement is being installed or being reimbursed, a governing body of a local entity may
332     adopt an energy assessment resolution or an energy assessment ordinance that:
333          (i) designates an energy assessment area;
334          (ii) levies an assessment within the energy assessment area; and
335          (iii) if applicable, authorizes the issuance of an energy assessment bond.
336          (b) The boundaries of a proposed energy assessment area may:
337          (i) include property that is not intended to be assessed; and
338          (ii) overlap, be coextensive with, or be substantially coterminous with the boundaries
339     of any other energy assessment area or an assessment area created under Title 11, Chapter 42,
340     Assessment Area Act.
341          (c) The energy assessment resolution or ordinance described in Subsection (1)(a) is
342     adequate for purposes of identifying the property to be assessed within the energy assessment
343     area if the resolution or ordinance describes the property to be assessed by legal description and
344     tax identification number.
345          (2) (a) A local entity that adopts an energy assessment resolution or ordinance under
346     Subsection (1)(a) shall give notice of the adoption by:
347          (i) publishing a copy or a summary of the resolution or ordinance once in a newspaper
348     of general circulation where the energy assessment area is located; or
349          (ii) if there is no newspaper of general circulation where the energy assessment area is
350     located, posting a copy of the resolution or ordinance in at least three public places within the
351     local entity's jurisdictional boundaries for at least 21 days.
352          (b) Except as provided in Subsection (2)(a), a local entity is not required to make any
353     other publication or posting of the resolution or ordinance.
354          (3) Notwithstanding any other statutory provision regarding the effective date of a
355     resolution or ordinance, each energy assessment resolution or ordinance takes effect:
356          (a) on the date of publication or posting of the notice under Subsection (2); or
357          (b) at a later date as provided in the resolution or ordinance.
358          (4) (a) The governing body of each local entity that has adopted an energy assessment
359     resolution or ordinance under Subsection (1) shall, within five days after the effective date of
360     the resolution or ordinance, file a notice of assessment interest with the recorder of the county
361     in which the property to be assessed is located.
362          (b) Each notice of assessment interest under Subsection (4)(a) shall:
363          (i) state that the local entity has an assessment interest in the property to be assessed;
364     and
365          (ii) describe the property to be assessed by legal description and tax identification
366     number.
367          (c) [A local entity's failure] If a local entity fails to file a notice of assessment interest
368     under this Subsection (4) [has no effect on the validity of an assessment levied under an energy
369     assessment resolution or ordinance adopted under Subsection (1).]:
370          (i) the failure does not invalidate the designation of an energy assessment area; and
371          (ii) the local entity may not assess a levy against a subsequent purchaser of a benefitted
372     property that lacked recorded notice unless:
373          (A) the subsequent purchaser gives written consent;
374          (B) the subsequent purchaser has actual notice of the assessment levy; or
375          (C) the subsequent purchaser purchased the property after a corrected notice was filed
376     under Subsection (4)(d).
377          (d) The local entity may file a corrected notice if the entity fails to comply with the date
378     or other requirements for filing a notice of assessment interest.
379          (e) If a governing body has filed a corrected notice under Subsection (4)(d), the local
380     entity may not retroactively collect or adjust the amount of the levy to recapture lost funds for a
381     levy that the local entity was prohibited from collecting, if applicable, under Subsection (4)(c).
382          Section 9. Section 11-42a-301 is amended to read:
383          11-42a-301. Assessment constitutes a lien -- Characteristics of an energy
384     assessment lien.
385          (1) [Each] If a local entity that adopts an assessment resolution or ordinance records
386     the assessment resolution or ordinance and the notice of proposed assessment, in accordance
387     with Section 11-42a-201, in the office of the recorder of the county in which the assessed
388     property is located, each assessment levied under this chapter, including any installment of an
389     assessment, interest, and any penalties and costs of collection, constitutes a political
390     subdivision lien, as that term is defined in Section 11-58-102, against the assessed property, in
391     accordance with Title 11, Chapter 58, Political Subdivision Lien Authority, beginning on the
392     effective date of the energy assessment resolution or ordinance that the local entity adopts
393     under Subsection 11-42a-201(1)(a).
394          (2) An energy assessment lien under this section:
395          (a) is superior to the lien of a trust deed, mortgage, mechanic's or materialman's lien, or
396     other encumbrances;
397          (b) has the same priority as, but is separate and distinct from:
398          (i) a lien for general property taxes; or
399          (ii) any other energy assessment lien levied under this chapter;
400          (c) applies to any reduced payment obligations without interruption, change in priority,
401     or alteration in any manner; and
402          (d) continues until the assessment and any related reduced payment obligations,
403     interest, penalties, and costs are paid, regardless of:
404          (i) a sale of the property for or on account of a delinquent general property tax, special
405     tax, or other assessment; or
406          (ii) the issuance of a tax deed, an assignment of interest by the county, or a sheriff's
407     certificate of sale or deed.
408          Section 10. Section 11-42a-303 is amended to read:
409          11-42a-303. Enforcement of an energy assessment lien.
410          (1) (a) If an assessment or an installment of an assessment is not paid when due[,]:
411          (i) (A) the governing body of the local entity that levies the assessment shall certify any
412     unpaid amount to the treasurer of the county in which the assessed property is located; and
413          (B) the county treasurer shall include the certified amount on the property tax notice
414     required by Section 59-2-1317 for that year; and
415          (ii) the local entity may sell the property on which the assessment has been levied for
416     the amount due plus interest, penalties, and costs:
417          [(a)] (A) in the manner provided in Title 59, Chapter 2, Part 13, Collection of Taxes,
418     for the sale of property for delinquent general property taxes;
419          [(b)] (B) by judicial foreclosure; or
420          [(c)] (C) in the manner provided in Title 57, Chapter 1, Conveyances, as though the
421     property were the subject of a trust deed in favor of the local entity if the owner of record of the
422     property at the time the local entity initiates the process to sell the property in accordance with
423     Title 57, Chapter 1, Conveyances, has executed a property owner's consent form [that:] in
424     accordance with Subsection (1)(b).
425          (b) The local entity shall ensure that the consent form described in Subsection
426     (1)(a)(ii)(C):
427          (i) estimates the total assessment to be levied against the particular parcel of property;
428          (ii) describes any additional benefits that the local entity expects the assessed property
429     to receive from the improvements;
430          (iii) designates the date and time by which the fully executed consent form is required
431     to be submitted to the local entity; and
432          (iv) (A) appoints a trustee that satisfies the requirements described in Section 57-1-21;
433          (B) gives the trustee the power of sale; and
434          (C) explains that if an assessment or an installment of an assessment is not paid when
435     due, the local entity may sell the property owner's property to satisfy the amount due plus
436     interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances.
437          (c) Nothing in Subsection (1)(a)(i) or in Title 11, Chapter 58, Political Subdivision
438     Lien Authority, prohibits or diminishes a local entity's authority to pursue any remedy in
439     Subsection (1)(a)(ii).
440          (2) If the local entity has assigned the local entity's rights to a third-party lender under
441     Section 11-42a-302, the local entity shall provide written instructions to the third-party lender
442     as to which method of enforcement the third-party lender shall pursue.
443          (3) Except as otherwise provided in this chapter, each tax sale under Subsection (1)(b)
444     is governed by Title 59, Chapter 2, Part 13, Collection of Taxes, to the same extent as if the
445     sale were for the sale of property for delinquent general property taxes.
446          (4) (a) In a foreclosure under Subsection (1)(c):
447          (i) the local entity may bid at the sale;
448          (ii) if no one bids at the sale and pays the local entity the amount due on the
449     assessment, plus interest and costs, the property is considered sold to the local entity for those
450     amounts; and
451          (iii) the local entity's chief financial officer may substitute and appoint one or more
452     successor trustees, as provided in Section 57-1-22.
453          (b) (i) The local entity shall disclose the designation of a trustee under Subsection
454     (4)(a)(ii) in the notice of default that the trustee gives to commence the foreclosure.
455          (ii) The local entity is not required to disclose the designation of a trustee under
456     Subsection (4)(a)(ii) in an instrument separate from the notice described in Subsection
457     (4)(b)(i).
458          (5) (a) The redemption of property that is the subject of a tax sale under Subsection
459     (1)(b) is governed by Title 59, Chapter 2, Part 13, Collection of Taxes.
460          (b) The redemption of property that is the subject of a foreclosure proceeding under
461     Subsection (1)(c) is governed by Title 57, Chapter 1, Conveyances.
462          (6) The remedies described in this part for the collection of an assessment and the
463     enforcement of an energy assessment lien are cumulative, and the use of one or more of those
464     remedies does not deprive the local entity of any other available remedy, means of collecting
465     the assessment, or means of enforcing the energy assessment lien.
466          Section 11. Section 11-58-101 is enacted to read:
467     
CHAPTER 58. POLITICAL SUBDIVISION LIEN AUTHORITY

468          11-58-101. Title.
469          This chapter is known as "Political Subdivision Lien Authority."
470          Section 12. Section 11-58-102 is enacted to read:
471          11-58-102. Definitions.
472          As used in this chapter:
473          (1) "Direct charge" means a charge, fee, assessment, or amount, other than a property
474     tax, that a political subdivision charges to a property owner.
475          (2) "Notice of lien" means a notice that:
476          (a) a political subdivision records in the office of the recorder of the county in which a
477     property that is the subject of a nonrecurring direct charge is located; and
478          (b) describes the nature and amount of the nonrecurring direct charge and whether the
479     political subdivision intends to certify the charge to the county treasurer under statutory
480     authority that allows the treasurer to place the charge on the property tax notice described in
481     Section 59-2-1317.
482          (3) "Nonrecurring direct charge" means a direct charge that a political subdivision
483     assesses or imposes on a one-time or case-by-case basis rather than a regular assessment over
484     multiple calendar years.
485          (4) "Political subdivision" means:
486          (a) a county, as that term is defined in Section 17-50-101;
487          (b) a municipality, as that term is defined in Section 10-1-104;
488          (c) a local district, as that term is defined in Section 17B-1-102;
489          (d) a special service district, as that term is defined in Section 17D-1-102;
490          (e) an interlocal entity, as that term is defined in Section 11-13-103;
491          (f) a community reinvestment agency created under Title 17C, Limited Purpose Local
492     Government Entities - Community Reinvestment Agency Act;
493          (g) a local building authority, as that term is defined in Section 17D-2-102;
494          (h) a conservation district, as that term is defined in Section 17D-3-102; or
495          (i) a local entity, as that term is defined in Sections 11-42-102 and 11-42a-102.
496          (5) "Political subdivision lien" means a lien that a statute expressly authorizes a
497     political subdivision to hold and record, including a direct charge that constitutes, according to
498     an express statutory provision, a lien.
499          (6) "Property tax" means a tax imposed on real property under Title 59, Chapter 2,
500     Property Tax Act, Title 59, Chapter 3, Tax Equivalent Property Act, or Title 59, Chapter 4,
501     Privilege Tax.
502          (7) "Tax sale" means the tax sale described in Title 59, Chapter 2, Part 13, Collection
503     of Taxes.
504          Section 13. Section 11-58-103 is enacted to read:
505          11-58-103. Political subdivision liens -- Status -- Limitations.
506          (1) Unless expressly granted in statute, a political subdivision has no lien authority or
507     lien rights when a property owner fails to pay a direct charge for:
508          (a) a service that the political subdivision renders; or
509          (b) a product, an item, or goods that the political subdivision delivers.
510          (2) A political subdivision lien other than a lien described in Subsection (3):
511          (a) (i) is not equivalent to and does not have the same priority as property tax; and
512          (ii) is not subject to the same collection and tax sale procedures as a property tax;
513          (b) is effective as of the date on which the lienholder records the lien in the office of
514     the recorder of the county in which the property is located;
515          (c) is subordinate in priority to all encumbrances on the property existing on the date
516     on which the municipality records the lien; and
517          (d) is invalid and does not attach to the property if:
518          (i) the lienholder does not record the lien; or
519          (ii) a subsequent bona fide purchaser purchases the liened property for value before the
520     lienholder records the lien.
521          (3) (a) A political subdivision lien that is included on the property tax notice in
522     accordance with Section 59-2-1317 or another express statutory provision:
523          (i) under Subsection 59-2-1317(3), has the same priority as tax and is subject to
524     collection in a tax sale in accordance with Title 59, Chapter 2, Part 13, Collection of Taxes, if:
525          (A) in order to hold the lien, statute requires the lienholder to record the lien or a
526     resolution, notice, ordinance, or order, and the lienholder makes the required recording; or
527          (B) statute does not require the lienholder to record the lien or a resolution, notice,
528     ordinance, or order; and
529          (ii) except as provided in Subsection (3)(b):
530          (A) attaches to the property; and
531          (B) is valid against a subsequent bona fide purchaser of the property.
532          (b) Notwithstanding Subsection (3)(a)(ii), regardless of inclusion on the property tax
533     notice in accordance with Section 59-2-1317, if a political subdivision fails to record a lien or a
534     notice of lien for a nonrecurring direct charge in the office of the recorder of the county in
535     which the liened property is located before a subsequent bona fide purchaser purchases the
536     property, the lien:
537          (i) does not attach to the property; and
538          (ii) is invalid against the subsequent bona fide purchaser.
539          (4) If the holder of a political subdivision lien records the lien or a notice of lien, upon
540     payment of the amount that constitutes the lien:
541          (a) the lien is released from the property; and
542          (b) the lienholder shall record a release of the lien or the notice of lien in the same
543     recorder's office in which the lienholder recorded the lien or the notice of the lien.
544          (5) Nothing in this section limits a political subdivision's lien authority or lien rights
545     otherwise provided in statute, a contract, a judgment, or another property interest.
546          Section 14. Section 17B-1-902 is amended to read:
547          17B-1-902. Lien for past due service fees -- Notice -- Partial payment allocation.
548          (1) (a) A local district may [file] hold a lien on a customer's property for past due fees
549     for commodities, services, or facilities that the district has provided to the customer's property
550     by certifying, subject to Subsection (3), to the treasurer of the county in which the customer's
551     property is located the amount of past due fees, including, subject to Section 17B-1-902.1,
552     applicable interest and administrative costs.
553          (b) (i) Upon certification under Subsection (1)(a), the past due fees, and if applicable,
554     interest and administrative costs, become a nonrecurring direct charge that constitutes a
555     political subdivision lien, as those terms are defined in Section 11-58-102, on the customer's
556     property to which the commodities, services, or facilities were provided in accordance with
557     Title 11, Chapter 58, Political Subdivision Lien Authority.
558          [(c)] (ii) A lien [filed in accordance with this section] described in this Subsection (1)
559     has the same priority as, but is separate and distinct from, a property tax lien.
560          (2) (a) If a local district certifies past due fees under Subsection (1)(a), the treasurer of
561     the county shall provide a notice, in accordance with this Subsection (2), to the owner of the
562     property for which the local district has incurred the past due fees.
563          (b) In providing the notice required in Subsection (2)(a), the treasurer of the county
564     shall:
565          (i) include the amount of past due fees that a local district has certified on or before
566     July 15 of the current year;
567          (ii) provide contact information, including a phone number, for the property owner to
568     contact the local district to obtain more information regarding the amount described in
569     Subsection (2)(b)(i); and
570          (iii) notify the property owner that:
571          (A) if the amount described in Subsection (2)(b)(i) is not paid in full by September 15
572     of the current year, any unpaid amount will be included on the property tax notice required by
573     Section 59-2-1317; and
574          (B) the failure to pay the amount described in Subsection (2)(b)(i) has resulted in a lien
575     on the property in accordance with [this section] Subsection (1)(b).
576          (c) The treasurer of the county shall provide the notice required by this Subsection (2)
577     to a property owner on or before August 1.
578          (3) (a) If a local district certifies [past due fees under] an unpaid amount in accordance
579     with Subsection (1)(a), the county treasurer shall include the unpaid amount on a property tax
580     notice issued in accordance with Section 59-2-1317 [an unpaid fee, administrative cost, or
581     interest described in Subsection (1)(a)].
582          (b) If an unpaid fee, administrative cost, or interest is included on a property tax notice
583     in accordance with Subsection (3)(a), the county treasurer shall on the property tax notice:
584          (i) clearly state that the unpaid fee, administrative cost, or interest is for a service
585     provided by the local district; and
586          (ii) itemize the unpaid fee, administrative cost, or interest separate from any other tax,
587     fee, interest, or penalty that is included on the property tax notice in accordance with Section
588     59-2-1317.
589          (4) A lien under Subsection (1) is not valid if the local district makes certification
590     under Subsection [(1) is made] (1)(a) after the filing for record of a document conveying title of
591     the customer's property to a new owner.
592          (5) Nothing in this section may be construed to:
593          (a) waive or release the customer's obligation to pay fees that the district has imposed;
594          (b) preclude the certification of a lien under Subsection (1) with respect to past due
595     fees for commodities, services, or facilities provided after the date that title to the property is
596     transferred to a new owner; or
597          (c) nullify or terminate a valid lien.
598          (6) After all amounts owing under a lien established as provided in this section have
599     been paid, the local district shall file for record in the county recorder's office a release of the
600     lien.
601          Section 15. Section 17B-2a-506 is amended to read:
602          17B-2a-506. Different use charges for different units -- Use charges based on the
603     size of the land served -- Use charge may not be based on property value.
604          (1) An irrigation district may:
605          (a) divide the district into units and apply different use charges to the different units;
606     and
607          (b) base use charges upon the amount of water or electricity the district provides, the
608     area of the land served, or any other reasonable basis, as determined by the board of trustees.
609          (2) If an irrigation district imposes a use charge based on the size of the land served or
610     the amount of water allotted to the land:
611          (a) the assessor of the county in which the land is located shall assist the irrigation
612     district in ascertaining the identity of a parcel served by the district;
613          (b) the district shall notify the treasurer of the county in which the land is located of the
614     charge to be imposed for each parcel of land served by the district; and
615          (c) the treasurer of the county in which the land is located:
616          (i) shall:
617          (A) provide each landowner a notice of use charges as part of the annual tax notice
618     required in Section 59-2-1317 as an additional charge separate from ad valorem taxes;
619          (B) collect, receive, and provide an accounting for all money belonging to the district
620     from use charges; [and]
621          (C) remit to the irrigation district, by the tenth day of each month, the funds previously
622     collected by the county as use charges on the district's behalf; and
623          (D) collect any unpaid use charges in accordance with Title 59, Chapter 2, Part 13,
624     Collection of Taxes; and
625          (ii) may receive and account for use charges separately from taxes upon real estate for
626     county purposes.
627          (3) (a) A use charge described in Subsection (2)(b) [shall become a lien] is a political
628     subdivision lien, as that term is defined in Section 11-58-102, on the land served, as provided
629     in [Section 17B-1-902] Subsection 17B-1-902(1), except that the certification described in
630     Subsection 17B-1-902(1)(a) is not required if the district makes the notification to the county
631     treasurer required in Subsection (2)(b).
632          (b) A lien described in Subsection (3)(a) shall remain in force until the use charge is
633     paid.
634          (c) The county treasurer shall release a lien described in Subsection (3)(a) upon receipt
635     of full payment of the use charge.
636          (4) A use charge may not be calculated on the basis of property value and does not
637     constitute an ad valorem property tax or other tax.
638          Section 16. Section 17B-2a-1007 is amended to read:
639          17B-2a-1007. Contract assessments.
640          (1) As used in this section:
641          (a) "Assessed land" means:
642          (i) for a contract assessment under a water contract with a private water user, the land
643     owned by the private water user that receives the beneficial use of water under the water
644     contract; or
645          (ii) for a contract assessment under a water contract with a public water user, the land
646     within the boundaries of the public water user that is within the boundaries of the water
647     conservancy district and that receives the beneficial use of water under the water contract.
648          (b) "Contract assessment" means an assessment levied as provided in this section by a
649     water conservancy district on assessed land.
650          (c) "Governing body" means:
651          (i) for a county, city, or town, the legislative body of the county, city, or town;
652          (ii) for a local district, the board of trustees of the local district;
653          (iii) for a special service district:
654          (A) the legislative body of the county, city, or town that established the special service
655     district, if no administrative control board has been appointed under Section 17D-1-301; or
656          (B) the administrative control board of the special service district, if an administrative
657     control board has been appointed under Section 17D-1-301; and
658          (iv) for any other political subdivision of the state, the person or body with authority to
659     govern the affairs of the political subdivision.
660          (d) "Petitioner" means a private petitioner or a public petitioner.
661          (e) "Private petitioner" means an owner of land within a water conservancy district
662     who submits a petition to a water conservancy district under Subsection (3) to enter into a
663     water contract with the district.
664          (f) "Private water user" means an owner of land within a water conservancy district
665     who enters into a water contract with the district.
666          (g) "Public petitioner" means a political subdivision of the state:
667          (i) whose territory is partly or entirely within the boundaries of a water conservancy
668     district; and
669          (ii) that submits a petition to a water conservancy district under Subsection (3) to enter
670     into a water contract with the district.
671          (h) "Public water user" means a political subdivision of the state:
672          (i) whose territory is partly or entirely within the boundaries of a water conservancy
673     district; and
674          (ii) that enters into a water contract with the district.
675          (i) "Water contract" means a contract between a water conservancy district and a
676     private water user or a public water user under which the water user purchases, leases, or
677     otherwise acquires the beneficial use of water from the water conservancy district for the
678     benefit of:
679          (i) land owned by the private water user; or
680          (ii) land within the public water user's boundaries that is also within the boundaries of
681     the water conservancy district.
682          (j) "Water user" means a private water user or a public water user.
683          (2) A water conservancy district may levy a contract assessment as provided in this
684     section.
685          (3) (a) The governing body of a public petitioner may authorize its chief executive
686     officer to submit a written petition on behalf of the public petitioner to a water conservancy
687     district requesting to enter into a water contract.
688          (b) A private petitioner may submit a written petition to a water conservancy district
689     requesting to enter into a water contract.
690          (c) Each petition under this Subsection (3) shall include:
691          (i) the petitioner's name;
692          (ii) the quantity of water the petitioner desires to purchase or otherwise acquire;
693          (iii) a description of the land upon which the water will be used;
694          (iv) the price to be paid for the water;
695          (v) the amount of any service, turnout, connection, distribution system, or other charge
696     to be paid;
697          (vi) whether payment will be made in cash or annual installments;
698          (vii) a provision requiring the contract assessment to become a lien on the land for
699     which the water is petitioned and is to be allotted; and
700          (viii) an agreement that the petitioner is bound by the provisions of this part and the
701     rules and regulations of the water conservancy district board of trustees.
702          (4) (a) If the board of a water conservancy district desires to consider a petition
703     submitted by a petitioner under Subsection (3), the board shall:
704          (i) publish notice of the petition and of the hearing required under Subsection (4)(a)(ii)
705     at least once a week in two successive weeks in a newspaper of general circulation within the
706     county in which the political subdivision or private petitioner's land, as the case may be, is
707     located; and
708          (ii) hold a public hearing on the petition.
709          (b) Each notice under Subsection (4)(a)(i) shall:
710          (i) state that a petition has been filed and that the district is considering levying a
711     contract assessment; and
712          (ii) give the date, time, and place of the hearing required under Subsection (4)(a)(ii).
713          (c) (i) At each hearing required under Subsection (4)(a)(ii), the board of trustees of the
714     water conservancy district shall:
715          (A) allow any interested person to appear and explain why the petition should not be
716     granted; and
717          (B) consider each written objection to the granting of the petition that the board
718     receives before or at the hearing.
719          (ii) The board of trustees may adjourn and reconvene the hearing as the board
720     considers appropriate.
721          (d) (i) Any interested person may file with the board of the water conservancy district,
722     at or before the hearing under Subsection (4)(a)(ii), a written objection to the district's granting
723     a petition.
724          (ii) Each person who fails to submit a written objection within the time provided under
725     Subsection (4)(d)(i) is considered to have consented to the district's granting the petition and
726     levying a contract assessment.
727          (5) After holding a public hearing as required under Subsection (4)(a)(ii), the board of
728     trustees of a water conservancy district may:
729          (a) deny the petition; or
730          (b) grant the petition, if the board considers granting the petition to be in the best
731     interests of the district.
732          (6) The board of a water conservancy district that grants a petition under this section
733     may:
734          (a) make an allotment of water for the benefit of assessed land;
735          (b) authorize any necessary construction to provide for the use of water upon the terms
736     and conditions stated in the water contract;
737          (c) divide the district into units and fix a different rate for water purchased or otherwise
738     acquired and for other charges within each unit, if the rates and charges are equitable, although
739     not equal and uniform, for similar classes of services throughout the district; and
740          (d) levy a contract assessment on assessed land.
741          (7) (a) The board of trustees of each water conservancy district that levies a contract
742     assessment under this section shall:
743          (i) cause a certified copy of the resolution, ordinance, or order levying the assessment
744     to be recorded in the office of the recorder of each county in which assessed land is located;
745     and
746          (ii) on or before July 1 of each year after levying the contract assessment, certify to the
747     auditor of each county in which assessed land is located the amount of the contract assessment.
748          (b) Upon the recording of the resolution [or ordinance under], ordinance, or order, in
749     accordance with Subsection (7)(a)(i)[,]:
750          (i) the contract assessment associated with allotting water to the assessed land under
751     the water contract becomes a [perpetual lien] political subdivision lien, as that term is defined
752     in Section 11-58-102, on the assessed land[.], in accordance with Title 11, Chapter 58, Political
753     Subdivision Lien Authority, as of the effective date of the resolution, ordinance, or order; and
754          (ii) (A) the board of trustees of the water conservancy district shall certify the amount
755     of the assessment to the county treasurer; and
756          (B) the county treasurer shall include the certified amount on the property tax notice
757     required by Section 59-2-1317 for that year.
758          (c) (i) Each county in which assessed land is located shall collect the contract
759     assessment in the same manner as taxes levied by the county.
760          (ii) If the amount of a contract assessment levied under this section is not paid in full
761     by September 15 of a given year:
762          (A) the governing body of the water conservancy district that levies the contract
763     assessment shall certify any unpaid amount to the treasurer of the county in which the property
764     is located; and
765          (B) the county treasurer shall include the certified amount on the property tax notice
766     required by Section 59-2-1317 for that year.
767          (8) (a) The board of trustees of each water conservancy district that levies a contract
768     assessment under this section shall:
769          (i) hold a public hearing, before August 8 of each year in which a contract assessment
770     is levied, to hear and consider objections filed under Subsection (8)(b); and
771          (ii) twice publish a notice, at least a week apart:
772          (A) (I) in a newspaper of general circulation in each county with assessed land included
773     within the district boundaries; or
774          (II) if there is no newspaper of general circulation within the county, in a newspaper of
775     general circulation in an adjoining county;
776          (B) that contains:
777          (I) a general description of the assessed land;
778          (II) the amount of the contract assessment; and
779          (III) the time and place of the public hearing under Subsection (8)(a)(i).
780          (b) An owner of assessed land within the water conservancy district who believes that
781     the contract assessment on the owner's land is excessive, erroneous, or illegal may, before the
782     hearing under Subsection (8)(a)(i), file with the board of trustees a verified, written objection to
783     the assessment, stating the grounds for the objection.
784          (c) (i) At each hearing under Subsection (8)(a)(i), the board of trustees shall hear and
785     consider the evidence and arguments supporting each objection.
786          (ii) After hearing and considering the evidence and arguments supporting an objection,
787     the board of trustees:
788          (A) shall enter a written order, stating its decision; and
789          (B) may modify the assessment.
790          (d) (i) An owner of assessed land may file a petition in district court seeking review of
791     a board of trustees' order under Subsection (8)(c)(ii)(A).
792          (ii) Each petition under Subsection (8)(d)(i) shall:
793          (A) be filed within 30 days after the board enters its written order;
794          (B) state specifically the part of the board's order for which review is sought; and
795          (C) be accompanied by a bond with good and sufficient security in an amount not
796     exceeding $200, as determined by the court clerk.
797          (iii) If more than one owner of assessed land seeks review, the court may, upon a
798     showing that the reviews may be consolidated without injury to anyone's interests, consolidate
799     the reviews and hear them together.
800          (iv) The court shall act as quickly as possible after a petition is filed.
801          (v) A court may not disturb a board of trustees' order unless the court finds that the
802     contract assessment on the petitioner's assessed land is manifestly disproportionate to
803     assessments imposed upon other land in the district.
804          (e) If no petition under Subsection (8)(d) is timely filed, the contract assessment is
805     conclusively considered to have been made in proportion to the benefits conferred on the land
806     in the district.
807          (9) Each resolution, ordinance, or order under which a water conservancy district
808     levied a Class B, Class C, or Class D assessment before April 30, 2007, under the law in effect
809     at the time of the levy is validated, ratified, and confirmed, and a water conservancy district
810     may continue to levy the assessment according to the terms of the resolution, ordinance, or
811     order.
812          (10) A contract assessment is not a levy of an ad valorem property tax and is not
813     subject to the limits stated in Section 17B-2a-1006.
814          Section 17. Section 59-2-1317 is amended to read:
815          59-2-1317. Tax notice -- Contents of notice -- Procedures and requirements for
816     providing notice.
817          (1) As used in this section, "political subdivision lien" means the same as that term is
818     defined in Section 11-58-102.
819          [(1)] (2) Subject to the other provisions of this section, the county treasurer shall:
820          (a) collect the taxes; and
821          (b) provide a notice to each taxpayer that contains the following:
822          (i) the kind and value of property assessed to the taxpayer;
823          (ii) the street address of the property, if available to the county;
824          (iii) that the property may be subject to a detailed review in the next year under Section
825     59-2-303.1;
826          (iv) the amount of taxes levied;
827          (v) a separate statement of the taxes levied only on a certain kind or class of property
828     for a special purpose;
829          (vi) property tax information pertaining to taxpayer relief, options for payment of
830     taxes, and collection procedures;
831          (vii) if applicable, a political subdivision lien for municipal water distribution, as
832     described in Section 10-8-17, or a political subdivision lien for an increase in supply from a
833     municipal water distribution, as described in Section 10-8-19;
834          (viii) if applicable, a political subdivision lien for unpaid abatement fees as described
835     in Section 10-11-4;
836          [(vii)] (ix) if applicable, a political subdivision lien for the amount of an assessment
837     assessed in accordance with Section 11-42-401 or 11-42a-203;
838          [(viii)] (x) if applicable, for a local district in accordance with Section 17B-1-902, a
839     political subdivision lien for an unpaid fee, administrative cost, or interest [for a local district in
840     accordance with Section 17B-1-902];
841          (xi) if applicable, a political subdivision lien for an unpaid irrigation district use charge
842     as described in Section 17B-2a-506;
843          (xii) if applicable, a political subdivision lien for a contract assessment under a water
844     contract, as described in Section 17B-2a-1007;
845          [(ix)] (xiii) the date the taxes are due;
846          [(x)] (xiv) the street address at which the taxes may be paid;
847          [(xi)] (xv) the date on which the taxes are delinquent;
848          [(xii)] (xvi) the penalty imposed on delinquent taxes;
849          [(xiii)] (xvii) a statement that explains the taxpayer's right to direct allocation of a
850     partial payment in accordance with Subsection [(7)] (9);
851          [(xiv)] (xviii) other information specifically authorized to be included on the notice
852     under this chapter; and
853          [(xv)] (xix) other property tax information approved by the commission.
854          (3) (a) Unless expressly allowed under this section or another statutory provision, the
855     treasurer may not add an amount to be collected to the property tax notice.
856          (b) If the county treasurer adds an amount to be collected to the property tax notice
857     under this section or another statutory provision that expressly authorizes the item's inclusion
858     on the property tax notice:
859          (i) the amount has the same priority as property tax; and
860          (ii) a delinquency of the amount triggers a tax sale, in accordance with Section
861     59-2-1343.
862          [(2)] (4) For any property for which property taxes are delinquent, the notice described
863     in Subsection [(1)] (2) shall state, "Prior taxes are delinquent on this parcel."
864          [(3)] (5) Except as provided in Subsection [(4)] (6), the county treasurer shall:
865          (a) mail the notice required by this section, postage prepaid; or
866          (b) leave the notice required by this section at the taxpayer's residence or usual place of
867     business, if known.
868          [(4)] (6) (a) Subject to the other provisions of this Subsection [(4)] (6), a county
869     treasurer may, at the county treasurer's discretion, provide the notice required by this section by
870     electronic mail if a taxpayer makes an election, according to procedures determined by the
871     county treasurer, to receive the notice by electronic mail.
872          (b) A taxpayer may revoke an election to receive the notice required by this section by
873     electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
874          (c) A revocation of an election under this section does not relieve a taxpayer of the
875     duty to pay a tax due under this chapter on or before the due date for paying the tax.
876          (d) A county treasurer shall provide the notice required by this section using a method
877     described in Subsection [(3)] (5), until a taxpayer makes a new election in accordance with this
878     Subsection [(4)] (6), if:
879          (i) the taxpayer revokes an election in accordance with Subsection [(4)] (6)(b) to
880     receive the notice required by this section by electronic mail; or
881          (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
882          (e) A person is considered to be a taxpayer for purposes of this Subsection [(4)] (6)
883     regardless of whether the property that is the subject of the notice required by this section is
884     exempt from taxation.
885          [(5)] (7) (a) The county treasurer shall provide the notice required by this section to a
886     taxpayer on or before November 1.
887          (b) The county treasurer shall keep on file in the county treasurer's office the
888     information set forth in the notice.
889          (c) The county treasurer is not required to mail a tax receipt acknowledging payment.
890          [(6)] (8) This section does not apply to property taxed under Section 59-2-1302 or
891     59-2-1307.
892          [(7)] (9) (a) A taxpayer who pays less than the full amount due on the taxpayer's
893     property tax notice may, on a form provided by the county treasurer, direct how the county
894     treasurer allocates the partial payment between:
895          (i) the total amount due for property tax;
896          (ii) the amount due for assessments;
897          (iii) the amount due for past due local district fees; and
898          (iv) any other amounts due on the property tax notice.
899          (b) The county treasurer shall comply with a direction submitted to the county treasurer
900     in accordance with Subsection [(7)] (9)(a).
901          (c) The provisions of this Subsection [(7)] (9) do not:
902          (i) affect the right or ability of a local entity to pursue any available remedy for
903     non-payment of any item listed on a taxpayer's property tax notice; or
904          (ii) toll or otherwise change any time period related to a remedy described in
905     Subsection [(7)] (9)(c)(i).
906          Section 18. Section 59-2-1331 is amended to read:
907          59-2-1331. Property tax due date -- Date tax is delinquent -- Penalty -- Interest --
908     Payments -- Refund of prepayment.
909          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsections (1)(c) and
910     (d), all property taxes, unless otherwise specifically provided for under Section 59-2-1332, or
911     other law, and any other charge listed on the property tax notice in accordance with Section
912     59-2-1317 or another statutory authorization allowing the item's inclusion on the property tax
913     notice, are due on November 30 of each year following the date of levy.
914          (b) If November 30 falls on a Saturday, Sunday, or holiday:
915          (i) the date of the next following day that is not a Saturday, Sunday, or holiday shall be
916     substituted in Subsection (1)(a) and Subsection 59-2-1332(1) for November 30; and
917          (ii) the date of the day occurring 30 days after the date under Subsection (1)(b)(i) shall
918     be substituted in Subsection 59-2-1332(1) for December 30.
919          (c) If a property tax is paid or postmarked after the due date described in this
920     Subsection (1) the property tax is delinquent.
921          (d) A county treasurer or other public official, public entity, or public employee may
922     not require the payment of a property tax before the due date described in this Subsection (1).
923          (2) (a) Except as provided in Subsection (2)(e), for each parcel, all delinquent taxes
924     and items described in Subsection (1)(a) on each separately assessed parcel are subject to a
925     penalty of 2.5% of the amount of the delinquent taxes and items described in Subsection (1)(a)
926     or $10, whichever is greater.
927          (b) Unless the delinquent taxes and items described in Subsection (1)(a), together with
928     the penalty, are paid on or before January 31, the amount of taxes and items described in
929     Subsection (1)(a) and penalty shall bear interest on a per annum basis from the January 1
930     immediately following the delinquency date.
931          (c) Except as provided in Subsection (2)(d), for purposes of Subsection (2)(b), the
932     interest rate is equal to the sum of:
933          (i) 6%; and
934          (ii) the federal funds rate target:
935          (A) established by the Federal Open Markets Committee; and
936          (B) that exists on the January 1 immediately following the date of delinquency.
937          (d) The interest rate described in Subsection (2)(c) may not be:
938          (i) less than 7%; or
939          (ii) more than 10%.
940          (e) The penalty described in Subsection (2)(a) is 1% of the amount of the delinquent
941     taxes and items described in Subsection (1)(a) or $10, whichever is greater, if all delinquent
942     taxes, all items described in Subsection (1)(a), and the penalty are paid on or before the January
943     31 immediately following the delinquency date.
944          (3) (a) If the delinquency exceeds one year, the amount of taxes, items described in
945     Subsection (1)(a), and penalties for that year and all succeeding years shall bear interest until
946     settled in full through redemption or tax sale.
947          (b) The interest rate to be applied shall be calculated for each year as established under
948     Subsection (2) and shall apply on each individual year's delinquency until paid.
949          (4) The county treasurer may accept and credit on account against taxes and items
950     described in Subsection (1)(a) becoming due during the current year, at any time before or after
951     the tax rates are adopted, but not subsequent to the date of delinquency, either:
952          (a) payments in amounts of not less than $10; or
953          (b) the full amount of the unpaid tax and items described in Subsection (1)(a).
954          (5) (a) At any time before the county treasurer provides the tax notice described in
955     Section 59-2-1317, the county treasurer may refund amounts accepted and credited on account
956     against taxes and items described in Subsection (1)(a) becoming due during the current year.
957          (b) Upon recommendation by the county treasurer, the county legislative body shall
958     adopt rules or ordinances to implement the provisions of this Subsection (5).
959          Section 19. Section 59-2-1332.5 is amended to read:
960          59-2-1332.5. Mailing notice of delinquency or publication of delinquent list --
961     Contents -- Notice -- Definitions.
962          (1) As used in this section, "business entity" means:
963          (a) an association;
964          (b) a corporation;
965          (c) a limited liability company;
966          (d) a partnership;
967          (e) a trust; or
968          (f) a business entity similar to Subsections (1)(a) through (e).
969          [(1)] (2) The county treasurer shall provide notice of delinquency in the payment of
970     property taxes and any other item allowed on the property tax notice under Section 59-2-1317
971     or another express statutory authorization:
972          (a) except as provided in Subsection [(4)] (5), on or before December 31 of each
973     calendar year; and
974          (b) in a manner described in Subsection [(2)] (3).
975          [(2) A] (3) The notice [of delinquency in the payment of property taxes] described in
976     Subsection (2) shall be provided by:
977          (a) (i) mailing a written notice that includes the information described in Subsection
978     [(3)] (4)(a), postage prepaid, to:
979          (A) each delinquent taxpayer; and
980          (B) if the delinquent property taxes or other items described in Subsection (2) are
981     assessed on a base parcel, the record owner of each subdivided lot; and
982          (ii) making available to the public a list of delinquencies in the payment of property
983     taxes:
984          (A) by electronic means; and
985          (B) that includes the information required by Subsection [(3)] (4)(b); or
986          (b) publishing a list of delinquencies in the payment of property taxes and other items
987     described in Subsection (2):
988          (i) in one issue of a newspaper having general circulation in the county;
989          (ii) that lists each delinquency in alphabetical order by:
990          (A) the last name of the delinquent taxpayer; or
991          (B) if the delinquent taxpayer is a business entity, the name of the business entity; and
992          (iii) that includes the information described in Subsection [(3)] (4)(b).
993          [(3)] (4) (a) A written notice of delinquency [in the payment of property taxes]
994     described in Subsection [(2)] (3)(a)(i) shall include:
995          (i) a statement that delinquent taxes and other items described in Subsection (2) are
996     due;
997          (ii) the amount of delinquent taxes and other items described in Subsection (2) due, not
998     including any penalties imposed in accordance with this chapter;
999          (iii) (A) the name of the delinquent taxpayer; or
1000          (B) if the delinquent taxpayer is a business entity, the name of the business entity;
1001          (iv) (A) a description of the delinquent property; or
1002          (B) the property identification number of the delinquent property;
1003          (v) a statement that a penalty shall be imposed in accordance with this chapter; and
1004          (vi) a statement that interest accrues as of January 1 following the date of the
1005     delinquency unless on or before January 31 the following are paid:
1006          (A) the delinquent taxes and other items described in Subsection (2); and
1007          (B) the penalty.
1008          (b) The list of delinquencies described in Subsection [(2)] (3)(a)(ii) or [(2)] (3)(b) shall
1009     include:
1010          (i) the amount of delinquent taxes and other items described in Subsection (2) due, not
1011     including any penalties imposed in accordance with this chapter;
1012          (ii) (A) the name of the delinquent taxpayer; or
1013          (B) if the delinquent taxpayer is a business entity, the name of the business entity;
1014          (iii) (A) a description of the delinquent property; or
1015          (B) the property identification number of the delinquent property;
1016          (iv) a statement that a penalty shall be imposed in accordance with this chapter; and
1017          (v) a statement that interest accrues as of January 1 following the date of the
1018     delinquency unless on or before January 31 the following are paid:
1019          (A) the delinquent taxes and other items described in Subsection (2); and
1020          (B) the penalty.
1021          [(4)] (5) Notwithstanding Subsection [(1)] (2)(a), if the county legislative body extends
1022     the property tax due date under Subsection 59-2-1332(1), the notice of delinquency [in the
1023     payment of property taxes] described in Subsection (2) shall be provided on or before January
1024     10.
1025          [(5)] (6) (a) In addition to the notice of delinquency [in the payment of property taxes]
1026     required by Subsection [(1)] (2), a county treasurer may in accordance with this Subsection
1027     [(5)] (6) mail a notice that property taxes are delinquent:
1028          (i) to:
1029          (A) a delinquent taxpayer;
1030          (B) an owner of record of the delinquent property;
1031          (C) any other interested party that requests notice; or
1032          (D) a combination of Subsections [(5)] (6)(a)(i)(A) through (C); and
1033          (ii) at any time that the county treasurer considers appropriate.
1034          (b) A notice mailed in accordance with this Subsection [(5)] (6):
1035          (i) shall include the information required by Subsection [(3)] (4)(a); and
1036          (ii) may include any information that the county treasurer finds is useful to the owner
1037     of record of the delinquent property in determining:
1038          (A) the status of taxes and other items described in Subsection (2) owed on the
1039     delinquent property;
1040          (B) any penalty that is owed on the delinquent property;
1041          (C) any interest charged under Section 59-2-1331 on the delinquent property; or
1042          (D) any related matters concerning the delinquent property.
1043          [(6) As used in this section, "business entity" means:]
1044          [(a) an association;]
1045          [(b) a corporation;]
1046          [(c) a limited liability company;]
1047          [(d) a partnership;]
1048          [(e) a trust; or]
1049          [(f) a business entity similar to Subsections (6)(a) through (e).]
1050          Section 20. Section 59-2-1343 is amended to read:
1051          59-2-1343. Tax sale listing.
1052          (1) (a) If any property is not redeemed by March 15 following the lapse of four years
1053     from the date when [the property tax] any item in Subsection (1)(b) became delinquent, the
1054     county treasurer shall immediately file a listing with the county auditor of all properties whose
1055     redemption period is expiring in the nearest forthcoming tax sale to pay all outstanding charges
1056     statutorily allowed on the property tax notice.
1057          (b) A delinquency of any of the following triggers the tax sale process described in
1058     Subsection (1)(a):
1059          (i) property tax; or
1060          (ii) an item other than property tax that the county treasurer lists on the property tax
1061     notice in accordance with Section 59-2-1317 or another express statutory provision that
1062     authorizes the item's inclusion on the property tax notice.
1063          (2) The listing is known as the "[Tax Sale Listing] tax sale listing."