This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Mar 8, 2019 at 3:55 PM by lpoole.
This document includes House Floor Amendments incorporated into the bill on Thu, Mar 14, 2019 at 3:39 PM by pflowers.
Senator Daniel McCay proposes the following substitute bill:


1     
PUBLIC INFRASTRUCTURE DISTRICT ACT

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel McCay

5     
House Sponsor: James A. Dunnigan

6     

7     LONG TITLE
8     General Description:
9          This bill enacts the Public Infrastructure District Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     imposes a limit on a property tax levy for the operation of a public infrastructure
14     district;
15          ▸     imposes a limit on certain bonds that a public infrastructure district may issue;
16          ▸     allows for local entities to create public infrastructure districts;
17          ▸     provides for the appointment and potential election, in certain circumstances, of
18     members of the board of trustees of a public infrastructure district;
19          ▸     provides for the issuance of bonds for certain purposes;
20          ▸     allows a public infrastructure district to charge certain fees;
21          ▸     imposes certain transparency requirements on public infrastructure districts;
22          ▸     allows a public infrastructure district to impose a property tax penalty in the event
23     of nonpayment;
24          ▸     limits the time period during which a person may bring certain legal challenges
25     against a public infrastructure district;
26          ▸     requires the inclusion of a certain property tax penalty on the property tax notice;
27     and
28          ▸     makes technical changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          11-42-201, as last amended by Laws of Utah 2015, Chapter 396
36          17B-1-102, as last amended by Laws of Utah 2016, Chapter 176
37          17B-1-1102, as last amended by Laws of Utah 2015, Chapter 352
38          59-2-1317, as last amended by Laws of Utah 2018, Chapter 197
39     ENACTS:
40          17B-2a-1201, Utah Code Annotated 1953
41          17B-2a-1202, Utah Code Annotated 1953
42          17B-2a-1203, Utah Code Annotated 1953
43          17B-2a-1204, Utah Code Annotated 1953
44          17B-2a-1205, Utah Code Annotated 1953
45          17B-2a-1206, Utah Code Annotated 1953
46          17B-2a-1207, Utah Code Annotated 1953
47          17B-2a-1208, Utah Code Annotated 1953
48          17B-2a-1209, Utah Code Annotated 1953
49          17B-2a-1210, Utah Code Annotated 1953
50          17B-2a-1211, Utah Code Annotated 1953
51          17B-2a-1212, Utah Code Annotated 1953
52          17B-2a-1213, Utah Code Annotated 1953
53     

54     Be it enacted by the Legislature of the state of Utah:
55          Section 1. Section 11-42-201 is amended to read:
56          11-42-201. Resolution or ordinance designating an assessment area --
57     Classifications within an assessment area -- Preconditions to adoption of a resolution or
58     ordinance.
59          (1) (a) Subject to the requirements of this part, a governing body of a local entity
60     intending to levy an assessment on property to pay some or all of the cost of providing
61     improvements benefitting the property, performing operation and maintenance benefitting the
62     property, or conducting economic promotion activities benefitting the property shall adopt a
63     resolution or ordinance designating an assessment area.
64          (b) A designation resolution or designation ordinance described in Subsection (1)(a)
65     may divide the assessment area into multiple classifications to allow the governing body to:
66          (i) levy a different level of assessment; or
67          (ii) use a different assessment method in each classification to reflect more fairly the
68     benefits that property within the different classifications is expected to receive because of the
69     proposed improvement, operation and maintenance, or economic promotion activities.
70          (c) The boundaries of a proposed assessment area:
71          (i) may include property that is not intended to be assessed; and
72          (ii) except for an assessment area within a public infrastructure district as defined in
73     Section 17B-1-102, may not be coextensive or substantially coterminous with the boundaries of
74     the local entity.
75          (2) Before adopting a designation resolution or designation ordinance described in
76     Subsection (1)(a), the governing body of the local entity shall:
77          (a) give notice as provided in Section 11-42-202;
78          (b) receive and consider all protests filed under Section 11-42-203; and
79          (c) hold a public hearing as provided in Section 11-42-204.
80          Section 2. Section 17B-1-102 is amended to read:
81          17B-1-102. Definitions.
82          As used in this title:
83          (1) "Appointing authority" means the person or body authorized to make an
84     appointment to the board of trustees.
85          (2) "Basic local district":
86          (a) means a local district that is not a specialized local district; and
87          (b) includes an entity that was, under the law in effect before April 30, 2007, created
88     and operated as a local district, as defined under the law in effect before April 30, 2007.
89          (3) "Bond" means:
90          (a) a written obligation to repay borrowed money, whether denominated a bond, note,
91     warrant, certificate of indebtedness, or otherwise; and
92          (b) a lease agreement, installment purchase agreement, or other agreement that:
93          (i) includes an obligation by the district to pay money; and
94          (ii) the district's board of trustees, in its discretion, treats as a bond for purposes of Title
95     11, Chapter 14, Local Government Bonding Act, or Title 11, Chapter 27, Utah Refunding Bond
96     Act.
97          (4) "Cemetery maintenance district" means a local district that operates under and is
98     subject to the provisions of this chapter and Chapter 2a, Part 1, Cemetery Maintenance District
99     Act, including an entity that was created and operated as a cemetery maintenance district under
100     the law in effect before April 30, 2007.
101          (5) "Drainage district" means a local district that operates under and is subject to the
102     provisions of this chapter and Chapter 2a, Part 2, Drainage District Act, including an entity that
103     was created and operated as a drainage district under the law in effect before April 30, 2007.
104          (6) "Facility" or "facilities" includes any structure, building, system, land, water right,
105     water, or other real or personal property required to provide a service that a local district is
106     authorized to provide, including any related or appurtenant easement or right-of-way,
107     improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
108          (7) "Fire protection district" means a local district that operates under and is subject to
109     the provisions of this chapter and Chapter 2a, Part 3, Fire Protection District Act, including an
110     entity that was created and operated as a fire protection district under the law in effect before
111     April 30, 2007.
112          (8) "General obligation bond":
113          (a) means a bond that is directly payable from and secured by ad valorem property
114     taxes that are:
115          (i) levied:
116          (A) by the district that issues the bond; and
117          (B) on taxable property within the district; and
118          (ii) in excess of the ad valorem property taxes of the district for the current fiscal year;
119     and
120          (b) does not include:
121          (i) a short-term bond;
122          (ii) a tax and revenue anticipation bond; or
123          (iii) a special assessment bond.
124          (9) "Improvement assurance" means a surety bond, letter of credit, cash, or other
125     security:
126          (a) to guarantee the proper completion of an improvement;
127          (b) that is required before a local district may provide a service requested by a service
128     applicant; and
129          (c) that is offered to a local district to induce the local district before construction of an
130     improvement begins to:
131          (i) provide the requested service; or
132          (ii) commit to provide the requested service.
133          (10) "Improvement assurance warranty" means a promise that the materials and
134     workmanship of an improvement:
135          (a) comply with standards adopted by a local district; and
136          (b) will not fail in any material respect within an agreed warranty period.
137          (11) "Improvement district" means a local district that operates under and is subject to
138     the provisions of this chapter and Chapter 2a, Part 4, Improvement District Act, including an
139     entity that was created and operated as a county improvement district under the law in effect
140     before April 30, 2007.
141          (12) "Irrigation district" means a local district that operates under and is subject to the
142     provisions of this chapter and Chapter 2a, Part 5, Irrigation District Act, including an entity that
143     was created and operated as an irrigation district under the law in effect before April 30, 2007.
144          (13) "Local district" means a limited purpose local government entity, as described in
145     Section 17B-1-103, that operates under, is subject to, and has the powers set forth in:
146          (a) this chapter; or
147          (b) (i) this chapter; and
148          (ii) (A) Chapter 2a, Part 1, Cemetery Maintenance District Act;
149          (B) Chapter 2a, Part 2, Drainage District Act;
150          (C) Chapter 2a, Part 3, Fire Protection District Act;
151          (D) Chapter 2a, Part 4, Improvement District Act;
152          (E) Chapter 2a, Part 5, Irrigation District Act;
153          (F) Chapter 2a, Part 6, Metropolitan Water District Act;
154          (G) Chapter 2a, Part 7, Mosquito Abatement District Act;
155          (H) Chapter 2a, Part 8, Public Transit District Act;
156          (I) Chapter 2a, Part 9, Service Area Act;
157          (J) Chapter 2a, Part 10, Water Conservancy District Act; [or]
158          (K) Chapter 2a, Part 11, Municipal Services District Act[.]; or
159          (L) Chapter 2a, Part 12, Public Infrastructure District Act.
160          (14) "Metropolitan water district" means a local district that operates under and is
161     subject to the provisions of this chapter and Chapter 2a, Part 6, Metropolitan Water District
162     Act, including an entity that was created and operated as a metropolitan water district under the
163     law in effect before April 30, 2007.
164          (15) "Mosquito abatement district" means a local district that operates under and is
165     subject to the provisions of this chapter and Chapter 2a, Part 7, Mosquito Abatement District
166     Act, including an entity that was created and operated as a mosquito abatement district under
167     the law in effect before April 30, 2007.
168          (16) "Municipal" means of or relating to a municipality.
169          (17) "Municipality" means a city, town, or metro township.
170          (18) "Municipal services district" means a local district that operates under and is
171     subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District
172     Act.
173          (19) "Person" means an individual, corporation, partnership, organization, association,
174     trust, governmental agency, or other legal entity.
175          (20) "Political subdivision" means a county, city, town, metro township, local district
176     under this title, special service district under Title 17D, Chapter 1, Special Service District Act,
177     an entity created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal
178     Cooperation Act, or any other governmental entity designated in statute as a political
179     subdivision of the state.
180          (21) "Private," with respect to real property, means not owned by the United States or
181     any agency of the federal government, the state, a county, or a political subdivision.
182          (22) "Public entity" means:
183          (a) the United States or an agency of the United States;
184          (b) the state or an agency of the state;
185          (c) a political subdivision of the state or an agency of a political subdivision of the
186     state;
187          (d) another state or an agency of that state; or
188          (e) a political subdivision of another state or an agency of that political subdivision.
189          (23) "Public infrastructure district" means a local district that operates under and is
190     subject to the provisions of this chapter and Chapter 2a, Part 12, Public Infrastructure District
191     Act.
192          [(23)] (24) "Public transit district" means a local district that operates under and is
193     subject to the provisions of this chapter and Chapter 2a, Part 8, Public Transit District Act,
194     including an entity that was created and operated as a public transit district under the law in
195     effect before April 30, 2007.
196          [(24)] (25) "Revenue bond":
197          (a) means a bond payable from designated taxes or other revenues other than the local
198     district's ad valorem property taxes; and
199          (b) does not include:
200          (i) an obligation constituting an indebtedness within the meaning of an applicable
201     constitutional or statutory debt limit;
202          (ii) a tax and revenue anticipation bond; or
203          (iii) a special assessment bond.
204          [(25)] (26) "Rules of order and procedure" means a set of rules that govern and
205     prescribe in a public meeting:
206          (a) parliamentary order and procedure;
207          (b) ethical behavior; and
208          (c) civil discourse.
209          [(26)] (27) "Service applicant" means a person who requests that a local district
210     provide a service that the local district is authorized to provide.
211          [(27)] (28) "Service area" means a local district that operates under and is subject to the
212     provisions of this chapter and Chapter 2a, Part 9, Service Area Act, including an entity that was
213     created and operated as a county service area or a regional service area under the law in effect
214     before April 30, 2007.
215          [(28)] (29) "Short-term bond" means a bond that is required to be repaid during the
216     fiscal year in which the bond is issued.
217          [(29)] (30) "Special assessment" means an assessment levied against property to pay all
218     or a portion of the costs of making improvements that benefit the property.
219          [(30)] (31) "Special assessment bond" means a bond payable from special assessments.
220          [(31)] (32) "Specialized local district" means a local district that is a cemetery
221     maintenance district, a drainage district, a fire protection district, an improvement district, an
222     irrigation district, a metropolitan water district, a mosquito abatement district, a public transit
223     district, a service area, a water conservancy district, [or] a municipal services district, or a
224     public infrastructure district.
225          [(32)] (33) "Taxable value" means the taxable value of property as computed from the
226     most recent equalized assessment roll for county purposes.
227          [(33)] (34) "Tax and revenue anticipation bond" means a bond:
228          (a) issued in anticipation of the collection of taxes or other revenues or a combination
229     of taxes and other revenues; and
230          (b) that matures within the same fiscal year as the fiscal year in which the bond is
231     issued.
232          [(34)] (35) "Unincorporated" means not included within a municipality.
233          [(35)] (36) "Water conservancy district" means a local district that operates under and
234     is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy District
235     Act, including an entity that was created and operated as a water conservancy district under the
236     law in effect before April 30, 2007.
237          [(36)] (37) "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain,
238     tunnel, power plant, and any facility, improvement, or property necessary or convenient for
239     supplying or treating water for any beneficial use, and for otherwise accomplishing the
240     purposes of a local district.
241          Section 3. Section 17B-1-1102 is amended to read:
242          17B-1-1102. General obligation bonds.
243          (1) Except as provided in Subsection (3), if a district intends to issue general obligation
244     bonds, the district shall first obtain the approval of district voters for issuance of the bonds at
245     an election held for that purpose as provided in Title 11, Chapter 14, Local Government
246     Bonding Act.
247          (2) General obligation bonds shall be secured by a pledge of the full faith and credit of
248     the district, subject[,] to:
249          (a) for a water conservancy district, [to] the property tax levy limits of Section
250     17B-2a-1006[.]; and
251          (b) for a limited tax bond as defined in Section 17B-2a-1202 that a public
252     infrastructure district issues, the property tax levy limits of Section 17B-2a-1209.
253          (3) A district may issue refunding general obligation bonds, as provided in Title 11,
254     Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
255          (4) (a) A local district may not issue general obligation bonds if the issuance of the
256     bonds will cause the outstanding principal amount of all of the district's general obligation
257     bonds to exceed the amount that results from multiplying the fair market value of the taxable
258     property within the district, as determined under Subsection 11-14-301(3)(b), by a number that
259     is:
260          (i) .05, for a basic local district;
261          (ii) .004, for a cemetery maintenance district;
262          (iii) .002, for a drainage district;
263          (iv) .004, for a fire protection district;
264          (v) .024, for an improvement district;
265          (vi) .1, for an irrigation district;
266          (vii) .1, for a metropolitan water district;
267          (viii) .0004, for a mosquito abatement district;
268          (ix) .03, for a public transit district;
269          (x) .12, for a service area; [or]
270          (xi) .05 for a municipal services district[.]; or
271          (xii) except for a limited tax bond as defined in Section 17B-2a-1202, .15 for a public
272     infrastructure district.
273          (b) Bonds or other obligations of a local district that are not general obligation bonds
274     are not included in the limit stated in Subsection (4)(a).
275          (5) A district may not be considered to be a municipal corporation for purposes of the
276     debt limitation of the Utah Constitution, Article XIV, Section 4.
277          (6) Bonds issued by an administrative or legal entity created under Title 11, Chapter
278     13, Interlocal Cooperation Act, may not be considered to be bonds of a local district that
279     participates in the agreement creating the administrative or legal entity.
280          Section 4. Section 17B-2a-1201 is enacted to read:
281     
Part 12. Public Infrastructure District Act

282          17B-2a-1201. Title.
283          This part is known as "Public Infrastructure District Act."
284          Section 5. Section 17B-2a-1202 is enacted to read:
285          17B-2a-1202. Definitions.
286          As used in this part:
287          (1) "Board" means the board of trustees of a public infrastructure district.
288          (2) "Creating entity" means the county or municipality that approves of the creation of
289     the public infrastructure district.
290          (3) "District applicant" means the person proposing the creation of the public
291     infrastructure district.
292          (4) "Division" means a division of a public infrastructure district:
293          (a) that is relatively equal in number of eligible voters or potential eligible voters to all
294     other divisions within the public infrastructure district, taking into account existing or potential
295     developments which, when completed, would increase or decrease the population within the
296     public infrastructure district; and
297          (b) which a member of the board represents.
298          (5) "Governing Document" means the document governing the public infrastructure
299     district to which the creating entity agrees before the creation of the public infrastructure
300     district, as amended from time to time, and subject to the limitations of Chapter 1, Provisions
301     Applicable to All Local Districts, and this part.
302          (6) (a) "Limited tax bond" means a bond:
303          (i) that is directly payable from and secured by ad valorem property taxes that are
304     levied:
305          (A) by the public infrastructure district that issues the bond; and
306          (B) on taxable property within the district;
307          (ii) that is a general obligation of the public infrastructure district; and
308          (iii) for which the ad valorem property tax levy for repayment of the bond does not
309     exceed the mill rate limit established under Section 17B-2a-1209 for any fiscal year, except as
310     provided in Subsection 17B-2a-1207(8).
311          (b) "Limited tax bond does not include:
312          (i) a short-term bond;
313          (ii) a tax and revenue anticipation bond; or
314          (iii) a special assessment bond.
315          Section 6. Section 17B-2a-1203 is enacted to read:
316          17B-2a-1203. Provisions applicable to public infrastructure districts.
317          (1) Each public infrastructure district is governed by and has the powers stated in:
318          (a) this part; and
319          (b) Chapter 1, Provisions Applicable to All Local Districts.
320          (2) This part applies only to a public infrastructure district.
321          (3) A public infrastructure district is not subject to the provisions of any other part of
322     this chapter.
323          (4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
324     Local Districts, and a provision in this part, the provision in this part governs.
325          Section 7. Section 17B-2a-1204 is enacted to read:
326          17B-2a-1204. Creation.
327          (1) In addition to the provisions regarding creation of a local district in Chapter 1,
328     Provisions Applicable to All Local Districts, a public infrastructure district may not be created
329     unless:
330          (a) if there are any registered voters within the applicable area, a petition is filed with
331     the creating entity that contains the signatures of 100% of registered voters within the
332     applicable area approving the creation of the public infrastructure district; and
333          (b) a petition is filed with the creating entity that contains the signatures of 100% of
334     surface property owners within the applicable area consenting to the creation of the public
335     infrastructure district.
336          (2) The election requirement of Section 17B-1-214 does not apply to a petition meeting
337     the requirements of Subsection (1).
338          (3) (a) Notwithstanding Chapter 1, Part 4, Annexation, an area outside of the
339     boundaries of a public infrastructure district may be annexed into the public infrastructure
340     district after:
341          (i) adoption of resolutions of the board and the creating entity, each approving of the
342     annexation;
343          (ii) if there are any registered voters within the area proposed to be annexed, a petition
344     is filed with the creating entity that contains the signatures of 100% of registered voters within
345     the area and approves of the annexation into the public infrastructure district; and
346          (iii) a petition is filed with the creating entity that contains the signatures of 100% of
347     surface property owners within the area proposed to be annexed and consents to the annexation
348     into the public infrastructure district.
349          (b) Upon meeting the requirements of Subsection (3)(a), the board shall comply with
350     the resolution and filing requirements of Subsections 17B-1-414(1) and (2).
351          (c) (i) Notwithstanding Chapter 1, Part 5, Withdrawal, property may be withdrawn
352     from a public infrastructure district after:
353          (A) adoption of resolutions of the board and the creating entity, each approving of the
354     annexation;
355          (B) if there are any registered voters within the area proposed to be withdrawn, a
356     petition is filed with the creating entity that contains the signatures of 100% of registered voters
357     within the area and approves of the withdrawal from the public infrastructure district; and
358          (C) a petition is filed with the creating entity that contains the signatures of 100% of
359     surface property owners within the area proposed to be withdrawn and consents to the
360     withdrawal from the public infrastructure district.
361          (ii) If any bonds that the public infrastructure district issues are allocable to the area to
362     be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains
363     subject to any taxes, fees, or assessments that the public infrastructure district imposes until the
364     bonds or any associated refunding bonds are paid.
365          (d) Upon meeting the requirements of Subsection (3)(c), the board shall comply with
366     the requirements of Section 17B-1-512.
367          (4) The creating entity may impose limitations on the powers of the public
368     infrastructure district through the governing document.
369          (5) (a) A public infrastructure district is separate and distinct from the creating entity.
370          (b) (i) Except as provided in Subsection (5)(b)(ii), any financial burden of a public
371     infrastructure district:
372          (A) is borne solely by the public infrastructure district; and
373          (B) is not borne by the creating entity or any municipality, county, the state, or any
374     other political subdivision.
375          (ii) Notwithstanding Subsection (5)(b)(i) and Section 17B-1-216, the governing
376     document may require:
377          (A) the district applicant to bear the initial costs of the public infrastructure district;
378     and
379          (B) the public infrastructure district to reimburse the district applicant for the initial
380     costs the creating entity bears.
381          (c) Any liability, judgment, or claim against a public infrastructure district:
382          (i) is the sole responsibility of the public infrastructure district; and
383          (ii) does not constitute a liability, judgment, or claim against the creating entity, the
384     state, or any municipality, county, or other political subdivision.
385          (d) (i) (A) The public infrastructure district solely bears the responsibility of any
386     collection, enforcement, or foreclosure proceeding with regard to any tax, fee, or assessment
387     the public infrastructure district imposes.
388          (B) The creating entity does not bear the responsibility described in Subsection
389     (5)(d)(i)(A).
390          (ii) A public infrastructure district, and not the creating entity, shall undertake the
391     enforcement responsibility described in, as applicable, Subsection (5)(d)(i) in accordance with
392     Title 59, Chapter 2, Property Tax Act, or Title 11, Chapter 42, Assessment Area Act.
393          (6) The creating entity may establish criteria in determining whether to approve or
394     disapprove of the creation of a public infrastructure district, including:
395          (a) historical performance of the district applicant;
396          (b) compliance with the creating entity's master plan;
397          (c) credit worthiness of the district applicant;
398          (d) plan of finance of the public infrastructure district; and
399          (e) proposed development within the public infrastructure district.
400          (7) (a) The creation of a public infrastructure district is subject to the sole discretion of
401     the creating entity responsible for approving or rejecting the creation of the public
402     infrastructure district.
403          (b) The proposed creating entity bears no liability for rejecting the proposed creation of
404     a public infrastructure district.
405          Section 8. Section 17B-2a-1205 is enacted to read:
406          17B-2a-1205. Public infrastructure district board -- Governing document.
407          (1) The legislative body of the entity that approves the creation of a public
408     infrastructure district shall appoint the members of the board, in accordance with the governing
409     document.
410          (2) (a) Unless otherwise limited in the governing document and except as provided in
411     Subsection (2)(b), the initial term of each member of the board is four years.
412          (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
413     board shall serve a six-year term so that, after the expiration of the initial term, the term of
414     approximately half the board members expires every two years.
415          (c) A board may elect that a majority of the board serve an initial term of six years.
416          (d) After the initial term, the term of each member of the board is four years.
417          (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required
418     to be a resident within the boundaries of the public infrastructure district if:
419          (i) all of the surface property owners consent to the waiver of the residency
420     requirement;
421          (ii) there are no residents within the boundaries of the public infrastructure district;
422          (iii) no qualified candidate timely files to be considered for appointment to the board;
423     or
424          (iv) no qualified individual files a declaration of candidacy for a board position in
425     accordance with Subsection 17B-1-306(4).
426          (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
427     residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member
428     elected for a division or board position that has transitioned from an appointed to an elected
429     board member in accordance with this section.
430          (c) An individual who is not a resident within the boundaries of the public
431     infrastructure district may not serve as a board member unless the individual is:
432          (i) an owner of land or an agent or officer of the owner of land within the boundaries of
433     the public infrastructure district; and
434          (ii) a registered voter at the individual's primary residence.
435          (4) (a) A governing document may provide for a transition from legislative body
436     appointment under Subsection (1) to a method of election by registered voters based upon
437     milestones or events that the governing document identifies, including a milestone for each
438     division or individual board position providing that when the milestone is reached:
439          (i) for a division, the registered voters of the division elect a member of the board in
440     place of an appointed member at the next municipal general election for the board position; or
441          (ii) for an at large board position established in the governing document, the registered
442     voters of the public infrastructure district elect a member of the board in place of an appointed
443     member at the next municipal general election for the board position.
444          (b) Regardless of whether a board member is elected under Subsection (4)(a), the
445     position of each remaining board member shall continue to be appointed under Subsection (1)
446     until the member's respective division or board position surpasses the density milestone
447     described in the governing document.
448          (5) (a) Subject to Subsection (5)(c), the board may, in the board's discretion but no
449     more frequently than every four years, reestablish the boundaries of each division so that each
450     division that has reached a milestone specified in the governing document, as described in
451     Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.
452          (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
453     consider existing or potential developments within the divisions which, when completed,
454     would increase or decrease the number of eligible voters within the division.
455          (c) The governing document may prohibit the board from reestablishing, without the
456     consent of the creating entity, the division boundaries as described in Subsection (5)(a).
457          (6) The public infrastructure district may not compensate a board member for the
458     member's service on the board under Section 17B-1-307 unless the board member is a resident
459     within the boundaries of the public infrastructure district.
460          (7) The governing document shall:
461          (a) include a boundary description and a map of the public infrastructure district;
462          (b) state the number of board members;
463          (c) describe any divisions of the public infrastructure district;
464          (d) establish any applicable mill rate limit for the public infrastructure district;
465          (e) establish any applicable limitation on the principal amount of indebtedness for the
466     public infrastructure district; and
467          (f) include other information that the public infrastructure district or the creating entity
468     determines to be necessary or advisable.
469          (8) (a) Except as provided in Subsection (8)(b), the board and the governing body of
470     the creating entity may amend a governing document by each adopting a resolution that
471     approves the amended governing document.
472          (b) Notwithstanding Subsection (8)(a), any amendment to a property tax mill limitation
473     requires Ŝ→ :
473a           (i) before the adoption of the resolution of the creating entity described in Subsection
473b     (8)(a), the public infrastructure district to comply with the notice and public hearing
473c     requirements of Section 59-2-919, with at least one member of the governing body of the
473d     creating entity attending the public hearing required in Subsection 59-2-919(3)(a)(v) or (4)(b);
473e     or
473f          (ii) ←Ŝ the consent of:
474          Ŝ→ [(i)] (A) ←Ŝ 100% of surface property owners within the boundaries of the public
474a     infrastructure
475     district; and
476          Ŝ→ [(ii)] (B) ←Ŝ 100% of the registered voters, if any, within the boundaries of the public
477     infrastructure district.
478          (9) A board member is not in violation of Section 67-16-9 if the board member:
479          (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
480     and files the disclosure with the creating entity:
481          (i) before any appointment or election; and
482          (ii) upon any significant change in the business relationship; and
483          (b) conducts the affairs of the public infrastructure district in accordance with this title
484     and any parameters described in the governing document.
485          Section 9. Section 17B-2a-1206 is enacted to read:
486          17B-2a-1206. Additional public infrastructure district powers.☆
487     ☆     In addition to the powers conferred on a public infrastructure district under Section
488     17B-1-103, a public infrastructure district may:
489          (1) issue negotiable bonds to pay:
490          (a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
491     any of the improvements, facilities, or property allowed under Section 11-14-103;
492          Ĥ→ [(b) the capital costs for public facilities necessary to provide:
493          (i) a television service, including cable television, television relay, and translator
494     facilities; or
495          (ii) a public telecommunications service, including Internet and fiber infrastructure;
496          (c)] (b) ←Ĥ capital costs of improvements in an energy assessment area, as defined in
496a     Section
497     11-42a-102, and other related costs, against the funds that the public infrastructure district will
498     receive because of an assessment in an energy assessment area, as defined in Section
499     11-42a-401;
500          Ĥ→ [(d)] (c) ←Ĥ public improvements related to the provision of housing; and
501          Ĥ→ [(e)] (d) ←Ĥ capital costs related to public transportation;
502          (2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
503     Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
504     of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
505     Cooperation Act, without the consent of the creating entity;
506          (3) acquire completed or partially completed improvements for fair market value as
507     reasonably determined by:
508          (a) the board;
509          (b) the creating entity, if required in the governing document; or
510          (c) a surveyor or engineer that a public infrastructure district employs or engages to
511     perform the necessary engineering services for and to supervise the construction or installation
512     of the improvements; and
513          (4) contract with the creating entity for the creating entity to provide administrative
514     services on behalf of the public infrastructure district, when agreed to by both parties, in order
515     to achieve cost savings and economic efficiencies, at the discretion of the creating entity.
516          Section 10. Section 17B-2a-1207 is enacted to read:
517          17B-2a-1207. Public infrastructure district bonds.
518          (1) A public infrastructure district may issue negotiable bonds for the purposes
519     described in Section 17B-2a-1206, as provided in, as applicable:
520          (a) Title 11, Chapter 14, Local Government Bonding Act;
521          (b) Title 11, Chapter 27, Utah Refunding Bond Act;
522          (c) Title 11, Chapter 42, Assessment Area Act; and
523          (d) this section.
524          (2) A public infrastructure district bond:
525          (a) shall mature within 40 years of the date of issuance; and
526          (b) may not be secured by any improvement or facility paid for by the public
527     infrastructure district.
528          (3) (a) A public infrastructure district may issue a limited tax bond, in the same manner
529     as a general obligation bond:
530          (i) with the consent of 100% of surface property owners within the boundaries of the
531     public infrastructure district and 100% of the registered voters, if any, within the boundaries of
532     the proposed public infrastructure district; or
533          (ii) upon approval of a majority of the registered voters within the boundaries of the
534     public infrastructure district voting in an election held for that purpose under Title 11, Chapter
535     14, Local Government Bonding Act.
536          (b) A limited tax bond described in Subsection (3)(a):
537          (i) is not subject to the limitation on a general obligation bond described in Subsection
538     17B-1-1102(4)(a)(xii); and
539          (ii) is subject to a limitation, if any, on the principal amount of indebtedness as
540     described in the governing document.
541          (c) Unless limited tax bonds are initially purchased exclusively by one or more
542     qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, the public
543     infrastructure district may only issue limited tax bonds in denominations of not less than
544     $500,000, and in integral multiples above $500,000 of not less than $1,000 each.
545          (d) (i) Without any further election or consent of property owners or registered voters,
546     a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to
547     a general obligation bond if the principal amount of the related limited tax bond together with
548     the principal amount of other related outstanding general obligation bonds of the public
549     infrastructure district does not exceed 15% of the fair market value of taxable property in the
550     public improvement district securing the general obligation bonds, determined by:
551          (A) an appraisal from an appraiser who is a member of the Appraisal Institute that is
552     addressed to the public infrastructure district or a financial institution; or
553          (B) the most recent market value of the property from the assessor of the county in
554     which the property is located.
555          (ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
556     sufficient to meet any statutory or constitutional election requirement necessary for the
557     issuance of the limited tax bond and any general obligation bond to be issued in place of the
558     limited tax bond upon meeting the requirements of this Subsection (3)(d).
559          (iii) A general obligation bond resulting from a conversion of a limited tax bond under
560     this Subsection (3)(d) is not subject to the limitation on general obligation bonds described in
561     Subsection 17B-1-1102(4)(a)(xii).
562          (4) There is no limitation on the duration of revenues that a public infrastructure
563     district may receive to cover any shortfall in the payment of principal of and interest on a bond
564     that the public infrastructure district issues.
565          (5) A public infrastructure district is not a municipal corporation for purposes of the
566     debt limitation of Utah Constitution, Article XIV, Section 4.
567          (6) The board may, by resolution, delegate to one or more officers of the public
568     infrastructure district the authority to:
569          (a) in accordance and within the parameters set forth in a resolution adopted in
570     accordance with Section 11-14-302, approve the final interest rate, price, principal amount,
571     maturity, redemption features, and other terms of the bond;
572          (b) approve and execute any document relating to the issuance of a bond; and
573          (c) approve any contract related to the acquisition and construction of the
574     improvements, facilities, or property to be financed with a bond.
575          (7) (a) Any person may contest the legality of the issuance of a public infrastructure
576     district bond or any provisions for the security and payment of the bond for a period of 30 days
577     after:
578          (i) publication of the resolution authorizing the bond; or
579          (ii) publication of a notice of bond containing substantially the items required under
580     Subsection 11-14-316(2).
581          (b) After the 30-day period described in Subsection (7)(a), no person may bring a
582     lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any
583     reason.
584          (8) (a) In the event of any statutory change in the methodology of assessment or
585     collection of property taxes in a manner that reduces the amounts which are devoted or pledged
586     to the repayment of limited tax bonds, a public infrastructure district may charge a rate
587     sufficient to receive the amount of property taxes or assessment the public infrastructure
588     district would have received before the statutory change in order to pay the debt service on
589     outstanding limited tax bonds.
590          (b) The rate increase described in Subsection (8)(a) may exceed the limit described in
591     Section 17B-2a-1209.
592          (c) The public infrastructure district may charge the rate increase described in
593     Subsection (8)(a) until the bonds, including any associated refunding bonds, or other securities,
594     together with applicable interest, are fully met and discharged.
595          Section 11. Section 17B-2a-1208 is enacted to read:
596          17B-2a-1208. Fees.
597          A public infrastructure district may charge a fee or other charge for an administrative
598     service that the public infrastructure district provides, to pay some or all of the public
599     infrastructure district's:
600          (1) costs of acquiring, improving, or extending improvements, facilities, or property; or
601          (2) costs associated with the enforcement of a legal remedy.
602          Section 12. Section 17B-2a-1209 is enacted to read:
603          17B-2a-1209. Limits on public infrastructure district property tax levy -- Notice
604     requirements.
605          (1) The property tax levy of a public infrastructure district, for all purposes, including
606     payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value
607     of taxable property in the district.
608          (2) The limitation described in Subsection (1) does not apply to the levy by the public
609     infrastructure district to pay principal of and interest on a general obligation bond that the
610     public infrastructure district issues.
611          (3) (a) Within 30 days after the day on which the creating entity adopts the resolution
612     creating the public infrastructure district, the board shall record a notice with the recorder of
613     the county in which property within the public infrastructure district is located.
614          (b) The notice described in Subsection (3)(a) shall:
615          (i) contain a description of the boundaries of the public infrastructure district;
616          (ii) state that a copy of the governing document is on file at the office of the creating
617     entity;
618          (iii) state that the public infrastructure district may finance and repay infrastructure and
619     other improvements through the levy of a property tax; and
620          (iv) state the maximum rate that the public infrastructure district may levy.
621          Section 13. Section 17B-2a-1210 is enacted to read:
622          17B-2a-1210. Property tax penalty for nonpayment.
623          In the event of nonpayment of any tax, fee, or charge that a public infrastructure district
624     imposes, the public infrastructure district may impose a property tax penalty at an annual rate
625     of .07, in addition to any other lawful penalty for nonpayment of property tax.
626          Section 14. Section 17B-2a-1211 is enacted to read:
627          17B-2a-1211. Relation to other local entities.
628          (1) Notwithstanding the creation of the public infrastructure district, the creating entity
629     and any other public entity, as applicable, retains all of the entity's authority over all zoning,
630     planning, design specifications and approvals, and permitting within the public infrastructure
631     district.
632          (2) The inclusion of property within the boundaries of a public infrastructure district
633     does not preclude the inclusion of the property within any other local district.
634          (3) (a) All infrastructure that is connected to another public entity's system:
635          (i) belongs to that public entity, regardless of inclusion within the boundaries of a
636     public infrastructure district, unless the public infrastructure district and the public entity
637     otherwise agree; and
638          (ii) shall comply with the design, inspection requirements, and other standards of the
639     public entity.
640          (b) The public infrastructure district shall convey or transfer the infrastructure
641     described in Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
642     cost to the public entity.
643          Section 15. Section 17B-2a-1212 is enacted to read:
644          17B-2a-1212. Transparency.
645          A public infrastructure district shall file annual reports with the creating entity
646     regarding the public infrastructure district's actions as provided in the governing document.
647          Section 16. Section 17B-2a-1213 is enacted to read:
648          17B-2a-1213. Action to contest tax, fee, or proceeding -- Requirements --
649     Exclusive remedy -- Bonds, taxes, and fees incontestable.
650          (1) A person who contests a tax or fee or any proceeding to create a public
651     infrastructure district, levy a tax, or impose a fee may bring a civil action against the public
652     infrastructure district or the creating entity to:
653          (a) set aside the proceeding; or
654          (b) enjoin the levy, imposition, or collection of a tax or fee.
655          (2) The person bringing an action described in Subsection (1):
656          (a) shall bring the action in the district court with jurisdiction in the county in which
657     the public infrastructure district is located; and
658          (b) may not bring the action against or serve a summons relating to the action on the
659     public infrastructure district more than 30 days after the effective date of the:
660          (i) creation of the public infrastructure district, if the challenge is to the creation of the
661     public infrastructure district; or
662          (ii) tax or fee, if the challenge is to a tax or fee.
663          (3) An action under Subsection (1) is the exclusive remedy of a person who:
664          (a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
665     infrastructure district, levy a tax, or impose a fee; or
666          (b) challenges a bondholder's right to repayment.
667          (4) After the expiration of the 30-day period described in Subsection (2)(b):
668          (a) a bond issued or to be issued with respect to a public infrastructure district and any
669     tax levied or fee imposed becomes incontestable against any person who has not brought an
670     action and served a summons in accordance with this section;
671          (b) a person may not bring a suit to:
672          (i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
673     enforcement of a tax or fee; or
674          (ii) attack or question in any way the legality of a bond, tax, or fee; and
675          (c) a court may not inquire into the matters described in Subsection (4)(b).
676          (5) (a) This section does not insulate a public infrastructure district from a claim of
677     misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).
678          (b) (i) Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus
679     is the sole form of relief available to a party challenging the misuse of funds.
680          (ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
681     charges against or the prosecution of a party for the misuse of funds.
682          Section 17. Section 59-2-1317 is amended to read:
683          59-2-1317. Tax notice -- Contents of notice -- Procedures and requirements for
684     providing notice.
685          (1) As used in this section, "political subdivision lien" means the same as that term is
686     defined in Section 11-60-102.
687          (2) Subject to the other provisions of this section, the county treasurer shall:
688          (a) collect the taxes and tax notice charges; and
689          (b) provide a notice to each taxpayer that contains the following:
690          (i) the kind and value of property assessed to the taxpayer;
691          (ii) the street address of the property, if available to the county;
692          (iii) that the property may be subject to a detailed review in the next year under Section
693     59-2-303.1;
694          (iv) the amount of taxes levied;
695          (v) a separate statement of the taxes levied only on a certain kind or class of property
696     for a special purpose;
697          (vi) property tax information pertaining to taxpayer relief, options for payment of
698     taxes, and collection procedures;
699          (vii) any tax notice charges applicable to the property, including:
700          (A) if applicable, a political subdivision lien for road damage that a railroad company
701     causes, as described in Section 10-7-30;
702          (B) if applicable, a political subdivision lien for municipal water distribution, as
703     described in Section 10-8-17, or a political subdivision lien for an increase in supply from a
704     municipal water distribution, as described in Section 10-8-19;
705          (C) if applicable, a political subdivision lien for unpaid abatement fees as described in
706     Section 10-11-4;
707          (D) if applicable, a political subdivision lien for the unpaid portion of an assessment
708     assessed in accordance with Title 11, Chapter 42, Assessment Area Act, or Title 11, Chapter
709     42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and
710     interest as of the date the local entity certifies the unpaid amount to the county treasurer;
711          (E) if applicable, for a local district in accordance with Section 17B-1-902, a political
712     subdivision lien for an unpaid fee, administrative cost, or interest;
713          (F) if applicable, a political subdivision lien for an unpaid irrigation district use charge
714     as described in Section 17B-2a-506; [and]
715          (G) if applicable, a political subdivision lien for a contract assessment under a water
716     contract, as described in Section 17B-2a-1007; and
717          (H) if applicable, a property tax penalty that a public infrastructure district imposes, as
718     described in Section 17B-2a-1210;
719          (viii) a statement that, due to potentially ongoing charges, costs, penalties, and interest,
720     payment of a tax notice charge may not:
721          (A) pay off the full amount the property owner owes to the tax notice entity; or
722          (B) cause a release of the lien underlying the tax notice charge;
723          (ix) the date the taxes and tax notice charges are due;
724          (x) the street address at which the taxes and tax notice charges may be paid;
725          (xi) the date on which the taxes and tax notice charges are delinquent;
726          (xii) the penalty imposed on delinquent taxes and tax notice charges;
727          (xiii) a statement that explains the taxpayer's right to direct allocation of a partial
728     payment in accordance with Subsection (9);
729          (xiv) other information specifically authorized to be included on the notice under this
730     chapter; and
731          (xv) other property tax information approved by the commission.
732          (3) (a) Unless expressly allowed under this section or another statutory provision, the
733     treasurer may not add an amount to be collected to the property tax notice.
734          (b) If the county treasurer adds an amount to be collected to the property tax notice
735     under this section or another statutory provision that expressly authorizes the item's inclusion
736     on the property tax notice:
737          (i) the amount constitutes a tax notice charge; and
738          (ii) (A) the tax notice charge has the same priority as property tax; and
739          (B) a delinquency of the tax notice charge triggers a tax sale, in accordance with
740     Section 59-2-1343.
741          (4) For any property for which property taxes or tax notice charges are delinquent, the
742     notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent
743     on this parcel."
744          (5) Except as provided in Subsection (6), the county treasurer shall:
745          (a) mail the notice required by this section, postage prepaid; or
746          (b) leave the notice required by this section at the taxpayer's residence or usual place of
747     business, if known.
748          (6) (a) Subject to the other provisions of this Subsection (6), a county treasurer may, at
749     the county treasurer's discretion, provide the notice required by this section by electronic mail if
750     a taxpayer makes an election, according to procedures determined by the county treasurer, to
751     receive the notice by electronic mail.
752          (b) A taxpayer may revoke an election to receive the notice required by this section by
753     electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
754          (c) A revocation of an election under this section does not relieve a taxpayer of the
755     duty to pay a tax or tax notice charge due under this chapter on or before the due date for
756     paying the tax or tax notice charge.
757          (d) A county treasurer shall provide the notice required by this section using a method
758     described in Subsection (5), until a taxpayer makes a new election in accordance with this
759     Subsection (6), if:
760          (i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the
761     notice required by this section by electronic mail; or
762          (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
763          (e) A person is considered to be a taxpayer for purposes of this Subsection (6)
764     regardless of whether the property that is the subject of the notice required by this section is
765     exempt from taxation.
766          (7) (a) The county treasurer shall provide the notice required by this section to a
767     taxpayer on or before November 1.
768          (b) The county treasurer shall keep on file in the county treasurer's office the
769     information set forth in the notice.
770          (c) The county treasurer is not required to mail a tax receipt acknowledging payment.
771          (8) This section does not apply to property taxed under Section 59-2-1302 or
772     59-2-1307.
773          (9) (a) A taxpayer who pays less than the full amount due on the taxpayer's property tax
774     notice may, on a form provided by the county treasurer, direct how the county treasurer
775     allocates the partial payment between:
776          (i) the total amount due for property tax;
777          (ii) the amount due for assessments, past due local district fees, and other tax notice
778     charges; and
779          (iii) any other amounts due on the property tax notice.
780          (b) The county treasurer shall comply with a direction submitted to the county treasurer
781     in accordance with Subsection (9)(a).
782          (c) The provisions of this Subsection (9) do not:
783          (i) affect the right or ability of a local entity to pursue any available remedy for
784     non-payment of any item listed on a taxpayer's property tax notice; or
785          (ii) toll or otherwise change any time period related to a remedy described in
786     Subsection (9)(c)(i).