1     
AMENDMENTS RELATING TO THE MILITARY

2     
INSTALLATION DEVELOPMENT AUTHORITY

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jerry W. Stevenson

6     
House Sponsor: Val L. Peterson

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to the military installation development authority.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies the Public Infrastructure District Act to allow the military installation
14     development authority to create a public infrastructure district by adopting a
15     resolution creating the district with the consent of property owners;
16          ▸     provides that the number, appointment, and terms of members of the board of a
17     public infrastructure district created by the military installation development
18     authority are governed by the governing document;
19          ▸     provides for additional powers of a public infrastructure district created by the
20     military installation development authority;
21          ▸     modifies the Assessment Area Act to:
22               •     allow a public infrastructure district created by the military installation
23     development authority to designate an assessment area; and
24               •     modify the period for commencing an action to contest an assessment or a
25     proceeding to designate an assessment area, and the period of allowable
26     assessment installments, for an assessment area designated by the military
27     installation development authority or a public infrastructure district created by
28     the authority with the consent of all property owners;

29          ▸     modifies an assessment lien foreclosure provision relating to certain assessment
30     areas, including an assessment area created by the military installation development
31     authority or by a public infrastructure district created by the authority;
32          ▸     modifies the base year for purposes of determining the base taxable value of
33     property added to a military installation development authority's project area by
34     amendment;
35          ▸     modifies the definitions of "military land," "publicly owned infrastructure and
36     improvements," and "taxing entity" for purposes of the Military Installation
37     Development Authority Act;
38          ▸     adds a severability provision in the Military Installation Development Authority
39     Act;
40          ▸     modifies the powers of the military installation development authority to specify
41     that the authority may:
42               •     acquire an interest in real property through a subsidiary; and
43               •     by itself or through a subsidiary, provide expertise to another governmental
44     entity interested in public-private partnerships;
45          ▸     provides that services provided by the authority for the military are considered to be
46     for the authority's own needs and use;
47          ▸     modifies a provision relating to a property exchange for construction of a freeway
48     interchange;
49          ▸     specifies that a project area plan adopted by the authority board becomes effective
50     on the date designated by the board;
51          ▸     modifies provisions relating to an amendment to a project area plan adopted by the
52     military installation development authority and the adoption of a budget by the
53     authority;
54          ▸     authorizes the authority to designate an improved portion of a parcel as a separate
55     parcel for property tax allocation purposes;

56          ▸     enacts language relating to the recording of a notice of the payment required of a
57     parcel owner before improvements become subject to property tax and relating to
58     the owner's property tax obligation and provides for the prorating of the obligation
59     upon a transfer of title;
60          ▸     enacts a provision relating to the authority assuming jurisdiction over property
61     owned by the Department of Transportation; and
62          ▸     makes technical changes.
63     Money Appropriated in this Bill:
64          None
65     Other Special Clauses:
66          This bill provides a special effective date.
67     Utah Code Sections Affected:
68     AMENDS:
69          11-42-102, as last amended by Laws of Utah 2019, Chapters 230 and 399
70          11-42-106, as last amended by Laws of Utah 2015, Chapter 396
71          11-42-202, as last amended by Laws of Utah 2018, Chapter 197
72          11-42-411, as last amended by Laws of Utah 2017, Chapter 470
73          11-42-502.1, as last amended by Laws of Utah 2018, Chapter 197
74          17B-2a-1202, as enacted by Laws of Utah 2019, Chapter 490
75          17B-2a-1204, as enacted by Laws of Utah 2019, Chapter 490
76          17B-2a-1205, as enacted by Laws of Utah 2019, Chapter 490
77          17B-2a-1206, as enacted by Laws of Utah 2019, Chapter 490
78          63H-1-102, as last amended by Laws of Utah 2019, Chapter 498
79          63H-1-201, as last amended by Laws of Utah 2017, Chapter 216
80          63H-1-202, as last amended by Laws of Utah 2019, Chapter 498
81          63H-1-206, as enacted by Laws of Utah 2019, Chapter 498
82          63H-1-403, as last amended by Laws of Utah 2019, Chapter 498

83          63H-1-403.5, as enacted by Laws of Utah 2008, Chapter 120
84          63H-1-405, as last amended by Laws of Utah 2015, Chapter 377
85          63H-1-501, as last amended by Laws of Utah 2019, Chapter 498
86          63H-1-502, as last amended by Laws of Utah 2018, Chapter 442
87     ENACTS:
88          63H-1-103, Utah Code Annotated 1953
89          63H-1-207, Utah Code Annotated 1953
90     

91     Be it enacted by the Legislature of the state of Utah:
92          Section 1. Section 11-42-102 is amended to read:
93          11-42-102. Definitions.
94          (1) As used in this chapter:
95          (a) "Adequate protests" means, for all proposed assessment areas except sewer
96     assessment areas, timely filed, written protests under Section 11-42-203 that represent at least
97     40% of the frontage, area, taxable value, fair market value, lots, number of connections, or
98     equivalent residential units of the property proposed to be assessed, according to the same
99     assessment method by which the assessment is proposed to be levied, after eliminating:
100          (i) protests relating to:
101          (A) property that has been deleted from a proposed assessment area; or
102          (B) an improvement that has been deleted from the proposed improvements to be
103     provided to property within the proposed assessment area; and
104          (ii) protests that have been withdrawn under Subsection 11-42-203(3).
105          (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
106     written protests under Section 11-42-203 that represent at least 70% of the frontage, area,
107     taxable value, fair market value, lots, number of connections, or equivalent residential units of
108     the property proposed to be assessed, according to the same assessment method by which the
109     assessment is proposed to be levied, after eliminating adequate protests under Subsection

110     (1)(a).
111          (2) "Assessment area" means an area, or, if more than one area is designated, the
112     aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
113     local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
114     costs of improvements, operation and maintenance, or economic promotion activities that
115     benefit property within the area.
116          (3) "Assessment bonds" means bonds that are:
117          (a) issued under Section 11-42-605; and
118          (b) payable in part or in whole from assessments levied in an assessment area,
119     improvement revenues, and a guaranty fund or reserve fund.
120          (4) "Assessment fund" means a special fund that a local entity establishes under
121     Section 11-42-412.
122          (5) "Assessment lien" means a lien on property within an assessment area that arises
123     from the levy of an assessment, as provided in Section 11-42-501.
124          (6) "Assessment method" means the method:
125          (a) by which an assessment is levied against benefitted property, whether by frontage,
126     area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
127     unit, any combination of these methods, or any other method; and
128          (b) that, when applied to a benefitted property, accounts for an assessment that meets
129     the requirements of Section 11-42-409.
130          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
131     Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
132          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
133     11-42-404 that levies an assessment on benefitted property within an assessment area.
134          (9) "Benefitted property" means property within an assessment area that directly or
135     indirectly benefits from improvements, operation and maintenance, or economic promotion
136     activities.

137          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
138     anticipation of the issuance of assessment bonds.
139          (11) "Bonds" means assessment bonds and refunding assessment bonds.
140          (12) "Commercial area" means an area in which at least 75% of the property is devoted
141     to the interchange of goods or commodities.
142          (13) (a) "Commercial or industrial real property" means real property used directly or
143     indirectly or held for one of the following purposes or activities, regardless of whether the
144     purpose or activity is for profit:
145          (i) commercial;
146          (ii) mining;
147          (iii) industrial;
148          (iv) manufacturing;
149          (v) governmental;
150          (vi) trade;
151          (vii) professional;
152          (viii) a private or public club;
153          (ix) a lodge;
154          (x) a business; or
155          (xi) a similar purpose.
156          (b) "Commercial or industrial real property" includes real property that:
157          (i) is used as or held for dwelling purposes; and
158          (ii) contains more than four rental units.
159          (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
160     connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
161     electrical system, whether or not improvements are installed on the property.
162          (15) "Contract price" means:
163          (a) the cost of acquiring an improvement, if the improvement is acquired; or

164          (b) the amount payable to one or more contractors for the design, engineering,
165     inspection, and construction of an improvement.
166          (16) "Designation ordinance" means an ordinance adopted by a local entity under
167     Section 11-42-206 designating an assessment area.
168          (17) "Designation resolution" means a resolution adopted by a local entity under
169     Section 11-42-206 designating an assessment area.
170          (18) "Economic promotion activities" means activities that promote economic growth
171     in a commercial area of a local entity, including:
172          (a) sponsoring festivals and markets;
173          (b) promoting business investment or activities;
174          (c) helping to coordinate public and private actions; and
175          (d) developing and issuing publications designed to improve the economic well-being
176     of the commercial area.
177          (19) "Environmental remediation activity" means a surface or subsurface enhancement,
178     effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth
179     movement, or change to grade or elevation that improves the use, function, aesthetics, or
180     environmental condition of publicly owned property.
181          (20) "Equivalent residential unit" means a dwelling, unit, or development that is equal
182     to a single-family residence in terms of the nature of its use or impact on an improvement to be
183     provided in the assessment area.
184          (21) "Governing body" means:
185          (a) for a county, city, or town, the legislative body of the county, city, or town;
186          (b) for a local district, the board of trustees of the local district;
187          (c) for a special service district:
188          (i) the legislative body of the county, city, or town that established the special service
189     district, if no administrative control board has been appointed under Section 17D-1-301; or
190          (ii) the administrative control board of the special service district, if an administrative

191     control board has been appointed under Section 17D-1-301;
192          (d) for the military installation development authority created in Section 63H-1-201,
193     the board, as defined in Section 63H-1-102; and
194          (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
195     defined in Section 11-58-102.
196          (22) "Guaranty fund" means the fund established by a local entity under Section
197     11-42-701.
198          (23) "Improved property" means property upon which a residential, commercial, or
199     other building has been built.
200          (24) "Improvement":
201          (a) (i) means a publicly owned infrastructure, facility, system, or environmental
202     remediation activity that:
203          (A) a local entity is authorized to provide;
204          (B) the governing body of a local entity determines is necessary or convenient to
205     enable the local entity to provide a service that the local entity is authorized to provide; or
206          (C) a local entity is requested to provide through an interlocal agreement in accordance
207     with Chapter 13, Interlocal Cooperation Act; and
208          (ii) includes facilities in an assessment area, including a private driveway, an irrigation
209     ditch, and a water turnout, that:
210          (A) can be conveniently installed at the same time as an infrastructure, system, or other
211     facility described in Subsection (24)(a)(i); and
212          (B) are requested by a property owner on whose property or for whose benefit the
213     infrastructure, system, or other facility is being installed; or
214          (b) for a local district created to assess groundwater rights in accordance with Section
215     17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
216     groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
217          (25) "Improvement revenues":

218          (a) means charges, fees, impact fees, or other revenues that a local entity receives from
219     improvements; and
220          (b) does not include revenue from assessments.
221          (26) "Incidental refunding costs" means any costs of issuing refunding assessment
222     bonds and calling, retiring, or paying prior bonds, including:
223          (a) legal and accounting fees;
224          (b) charges of financial advisors, escrow agents, certified public accountant verification
225     entities, and trustees;
226          (c) underwriting discount costs, printing costs, the costs of giving notice;
227          (d) any premium necessary in the calling or retiring of prior bonds;
228          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
229     refund the outstanding prior bonds;
230          (f) any other costs that the governing body determines are necessary and proper to incur
231     in connection with the issuance of refunding assessment bonds; and
232          (g) any interest on the prior bonds that is required to be paid in connection with the
233     issuance of the refunding assessment bonds.
234          (27) "Installment payment date" means the date on which an installment payment of an
235     assessment is payable.
236          (28) "Interim warrant" means a warrant issued by a local entity under Section
237     11-42-601.
238          (29) "Jurisdictional boundaries" means:
239          (a) for a county, the boundaries of the unincorporated area of the county; and
240          (b) for each other local entity, the boundaries of the local entity.
241          (30) "Local district" means a local district under Title 17B, Limited Purpose Local
242     Government Entities - Local Districts.
243          (31) "Local entity" means:
244          (a) a county, city, town, special service district, or local district;

245          (b) an interlocal entity as defined in Section 11-13-103;
246          (c) [a] the military installation development authority, created in Section 63H-1-201;
247          (d) a public infrastructure district created by the military installation development
248     authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act;
249          [(d)] (e) the Utah Inland Port Authority, created in Section 11-58-201; or
250          [(e)] (f) any other political subdivision of the state.
251          (32) "Local entity obligations" means assessment bonds, refunding assessment bonds,
252     interim warrants, and bond anticipation notes issued by a local entity.
253          (33) "Mailing address" means:
254          (a) a property owner's last-known address using the name and address appearing on the
255     last completed real property assessment roll of the county in which the property is located; and
256          (b) if the property is improved property:
257          (i) the property's street number; or
258          (ii) the post office box, rural route number, or other mailing address of the property, if
259     a street number has not been assigned.
260          (34) "Net improvement revenues" means all improvement revenues that a local entity
261     has received since the last installment payment date, less all amounts payable by the local entity
262     from those improvement revenues for operation and maintenance costs.
263          (35) "Operation and maintenance costs":
264          (a) means the costs that a local entity incurs in operating and maintaining
265     improvements in an assessment area, whether or not those improvements have been financed
266     under this chapter; and
267          (b) includes service charges, administrative costs, ongoing maintenance charges, and
268     tariffs or other charges for electrical, water, gas, or other utility usage.
269          (36) "Overhead costs" means the actual costs incurred or the estimated costs to be
270     incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing
271     fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying

272     agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
273     all other incidental costs.
274          (37) "Prior assessment ordinance" means the ordinance levying the assessments from
275     which the prior bonds are payable.
276          (38) "Prior assessment resolution" means the resolution levying the assessments from
277     which the prior bonds are payable.
278          (39) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
279     refunding assessment bonds.
280          (40) "Project engineer" means the surveyor or engineer employed by or the private
281     consulting engineer engaged by a local entity to perform the necessary engineering services for
282     and to supervise the construction or installation of the improvements.
283          (41) "Property" includes real property and any interest in real property, including water
284     rights and leasehold rights.
285          (42) "Property price" means the price at which a local entity purchases or acquires by
286     eminent domain property to make improvements in an assessment area.
287          (43) "Provide" or "providing," with reference to an improvement, includes the
288     acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
289     expansion of an improvement.
290          (44) "Public agency" means:
291          (a) the state or any agency, department, or division of the state; and
292          (b) a political subdivision of the state.
293          (45) "Reduced payment obligation" means the full obligation of an owner of property
294     within an assessment area to pay an assessment levied on the property after the assessment has
295     been reduced because of the issuance of refunding assessment bonds, as provided in Section
296     11-42-608.
297          (46) "Refunding assessment bonds" means assessment bonds that a local entity issues
298     under Section 11-42-607 to refund, in part or in whole, assessment bonds.

299          (47) "Reserve fund" means a fund established by a local entity under Section
300     11-42-702.
301          (48) "Service" means:
302          (a) water, sewer, storm drainage, garbage collection, library, recreation,
303     communications, or electric service;
304          (b) economic promotion activities; or
305          (c) any other service that a local entity is required or authorized to provide.
306          (49) (a) "Sewer assessment area" means an assessment area that has as the assessment
307     area's primary purpose the financing and funding of public improvements to provide sewer
308     service where there is, in the opinion of the local board of health, substantial evidence of septic
309     system failure in the defined area due to inadequate soils, high water table, or other factors
310     proven to cause failure.
311          (b) "Sewer assessment area" does not include property otherwise located within the
312     assessment area:
313          (i) on which an approved conventional or advanced wastewater system has been
314     installed during the previous five calendar years;
315          (ii) for which the local health department has inspected the system described in
316     Subsection (49)(b)(i) to ensure that the system is functioning properly; and
317          (iii) for which the property owner opts out of the proposed assessment area for the
318     earlier of a period of 10 calendar years or until failure of the system described in Subsection
319     (49)(b)(i).
320          (50) "Special service district" means the same as that term is defined in Section
321     17D-1-102.
322          (51) "Unassessed benefitted government property" means property that a local entity
323     may not assess in accordance with Section 11-42-408 but is benefitted by an improvement,
324     operation and maintenance, or economic promotion activities.
325          (52) "Unimproved property" means property upon which no residential, commercial, or

326     other building has been built.
327          (53) "Voluntary assessment area" means an assessment area that contains only property
328     whose owners have voluntarily consented to an assessment.
329          Section 2. Section 11-42-106 is amended to read:
330          11-42-106. Action to contest assessment or proceeding -- Requirements --
331     Exclusive remedy -- Bonds and assessment incontestable.
332          (1) A person who contests an assessment or any proceeding to designate an assessment
333     area or levy an assessment may commence a civil action against the local entity to:
334          (a) set aside a proceeding to designate an assessment area; or
335          (b) enjoin the levy or collection of an assessment.
336          (2) (a) Each action under Subsection (1) shall be commenced in the district court with
337     jurisdiction in the county in which the assessment area is located.
338          (b) (i) [An] Except as provided in Subsection (2)(b)(ii), an action under Subsection (1)
339     may not be commenced against and a summons relating to the action may not be served on the
340     local entity more than 60 days after the effective date of the:
341          [(i)] (A) designation resolution or designation ordinance, if the challenge is to the
342     designation of an assessment area;
343          [(ii)] (B) assessment resolution or ordinance, if the challenge is to an assessment; or
344          [(iii)] (C) amended resolution or ordinance, if the challenge is to an amendment.
345          (ii) The period for commencing an action and serving a summons under Subsection
346     (2)(b)(i) is 30 days if the designation resolution, assessment resolution, or amended resolution
347     was:
348          (A) adopted by the military installation development authority, created in Section
349     63H-1-201, or a public infrastructure district created by the military installation development
350     authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act; and
351          (B) all owners of property within the assessment area or proposed assessment area
352     consent in writing to the designation resolution, assessment resolution, or amended resolution.

353          (3) (a) An action under Subsection (1) is the exclusive remedy of a person who:
354          (i) claims an error or irregularity in an assessment or in any proceeding to designate an
355     assessment area or levy an assessment; or
356          (ii) challenges a bondholder's right to repayment.
357          (b) A court may not hear any complaint under Subsection (1) that a person was
358     authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under
359     Section 11-42-204.
360          (c) (i) If a person has not brought a claim for which the person was previously
361     authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
362     may not be brought later because of an amendment to the resolution or ordinance unless the
363     claim arises from the amendment itself.
364          (ii) In an action brought pursuant to Subsection (1), a person may not contest a
365     previous decision, proceeding, or determination for which the service deadline described in
366     Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
367     determination.
368          (4) An assessment or a proceeding to designate an assessment area or to levy an
369     assessment may not be declared invalid or set aside in part or in whole because of an error or
370     irregularity that does not go to the equity or justice of the proceeding or the assessment meeting
371     the requirements of Section 11-42-409.
372          (5) After the expiration of the [60-day] period referred to in Subsection (2)(b):
373          (a) assessment bonds and refunding assessment bonds issued or to be issued with
374     respect to an assessment area and assessments levied on property in the assessment area
375     become at that time incontestable against all persons who have not commenced an action and
376     served a summons as provided in this section; and
377          (b) a suit to enjoin the issuance or payment of assessment bonds or refunding
378     assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
379     question in any way the legality of assessment bonds, refunding assessment bonds, or an

380     assessment may not be commenced, and a court may not inquire into those matters.
381          (6) (a) This section may not be interpreted to insulate a local entity from a claim of
382     misuse of assessment funds after the expiration of the [60-day] period described in Subsection
383     (2)(b).
384          (b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
385     is the sole form of relief available to a party challenging the misuse of assessment funds.
386          (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
387     charges against or the prosecution of a party for the misuse of assessment funds.
388          Section 3. Section 11-42-202 is amended to read:
389          11-42-202. Requirements applicable to a notice of a proposed assessment area
390     designation.
391          (1) Each notice required under Subsection 11-42-201(2)(a) shall:
392          (a) state that the local entity proposes to:
393          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
394     assessment area;
395          (ii) provide an improvement to property within the proposed assessment area; and
396          (iii) finance some or all of the cost of improvements by an assessment on benefitted
397     property within the assessment area;
398          (b) describe the proposed assessment area by any reasonable method that allows an
399     owner of property in the proposed assessment area to determine that the owner's property is
400     within the proposed assessment area;
401          (c) describe, in a general and reasonably accurate way, the improvements to be
402     provided to the assessment area, including:
403          (i) the nature of the improvements; and
404          (ii) the location of the improvements, by reference to streets or portions or extensions
405     of streets or by any other means that the governing body chooses that reasonably describes the
406     general location of the improvements;

407          (d) state the estimated cost of the improvements as determined by a project engineer;
408          (e) for the version of notice mailed in accordance with Subsection (4)(b), state the
409     estimated total assessment specific to the benefitted property for which the notice is mailed;
410          (f) state that the local entity proposes to levy an assessment on benefitted property
411     within the assessment area to pay some or all of the cost of the improvements according to the
412     estimated benefits to the property from the improvements;
413          (g) if applicable, state that an unassessed benefitted government property will receive
414     improvements for which the cost will be allocated proportionately to the remaining benefitted
415     properties within the proposed assessment area and that a description of each unassessed
416     benefitted government property is available for public review at the location or website
417     described in Subsection (6);
418          (h) state the assessment method by which the governing body proposes to calculate the
419     proposed assessment, including, if the local entity is a municipality or county, whether the
420     assessment will be collected:
421          (i) by directly billing a property owner; or
422          (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317
423     and in compliance with Section 11-42-401;
424          (i) state:
425          (i) the date described in Section 11-42-203 and the location at which protests against
426     designation of the proposed assessment area or of the proposed improvements are required to
427     be filed;
428          (ii) the method by which the governing body will determine the number of protests
429     required to defeat the designation of the proposed assessment area or acquisition or
430     construction of the proposed improvements; and
431          (iii) in large, boldface, and conspicuous type that a property owner must protest the
432     designation of the assessment area in writing if the owner objects to the area designation or
433     being assessed for the proposed improvements, operation and maintenance costs, or economic

434     promotion activities;
435          (j) state the date, time, and place of the public hearing required in Section 11-42-204;
436          (k) if the governing body elects to create and fund a reserve fund under Section
437     11-42-702, include a description of:
438          (i) how the reserve fund will be funded and replenished; and
439          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
440     the bonds;
441          (l) if the governing body intends to designate a voluntary assessment area, include a
442     property owner consent form that:
443          (i) estimates the total assessment to be levied against the particular parcel of property;
444          (ii) describes any additional benefits that the governing body expects the assessed
445     property to receive from the improvements;
446          (iii) designates the date and time by which the fully executed consent form is required
447     to be submitted to the governing body; and
448          (iv) if the governing body intends to enforce an assessment lien on the property in
449     accordance with Subsection 11-42-502.1(2)(a)(ii)(C):
450          (A) appoints a trustee that satisfies the requirements described in Section 57-1-21;
451          (B) gives the trustee the power of sale; [and]
452          (C) is binding on the property owner and all successors; and
453          [(C)] (D) explains that if an assessment or an installment of an assessment is not paid
454     when due, the local entity may sell the property owner's property to satisfy the amount due plus
455     interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances;
456          (m) if the local entity intends to levy an assessment to pay operation and maintenance
457     costs or for economic promotion activities, include:
458          (i) a description of the operation and maintenance costs or economic promotion
459     activities to be paid by assessments and the initial estimated annual assessment to be levied;
460          (ii) a description of how the estimated assessment will be determined;

461          (iii) a description of how and when the governing body will adjust the assessment to
462     reflect the costs of:
463          (A) in accordance with Section 11-42-406, current economic promotion activities; or
464          (B) current operation and maintenance costs;
465          (iv) a description of the method of assessment if different from the method of
466     assessment to be used for financing any improvement; and
467          (v) a statement of the maximum number of years over which the assessment will be
468     levied for:
469          (A) operation and maintenance costs; or
470          (B) economic promotion activities;
471          (n) if the governing body intends to divide the proposed assessment area into
472     classifications under Subsection 11-42-201(1)(b), include a description of the proposed
473     classifications;
474          (o) if applicable, state the portion and value of the improvement that will be increased
475     in size or capacity to serve property outside of the assessment area and how the increases will
476     be financed; and
477          (p) state whether the improvements will be financed with a bond and, if so, the
478     currently estimated interest rate and term of financing, subject to Subsection (2), for which the
479     benefitted properties within the assessment area may be obligated.
480          (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
481     interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
482     subject to the market rate at the time of the issuance of the bond.
483          (3) A notice required under Subsection 11-42-201(2)(a) may contain other information
484     that the governing body considers to be appropriate, including:
485          (a) the amount or proportion of the cost of the improvement to be paid by the local
486     entity or from sources other than an assessment;
487          (b) the estimated total amount of each type of assessment for the various improvements

488     to be financed according to the method of assessment that the governing body chooses; and
489          (c) provisions for any improvements described in Subsection 11-42-102(24)(a)(ii).
490          (4) Each notice required under Subsection 11-42-201(2)(a) shall:
491          (a) (i) (A) be published in a newspaper of general circulation within the local entity's
492     jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
493     least five but not more than 20 days before the day of the hearing required in Section
494     11-42-204; or
495          (B) if there is no newspaper of general circulation within the local entity's jurisdictional
496     boundaries, be posted in at least three public places within the local entity's jurisdictional
497     boundaries at least 20 but not more than 35 days before the day of the hearing required in
498     Section 11-42-204; and
499          (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
500     four weeks before the deadline for filing protests specified in the notice under Subsection
501     (1)(i); and
502          (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
503     the notice under Subsection (4)(a) to each owner of property to be assessed within the proposed
504     assessment area at the property owner's mailing address.
505          (5) (a) The local entity may record the version of the notice that is published or posted
506     in accordance with Subsection (4)(a) with the office of the county recorder, by legal description
507     and tax identification number as identified in county records, against the property proposed to
508     be assessed.
509          (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
510     after the day on which the local entity records the notice if the local entity has failed to adopt
511     the designation ordinance or resolution under Section 11-42-201 designating the assessment
512     area for which the notice was recorded.
513          (6) A local entity shall make available on the local entity's website, or, if no website is
514     available, at the local entity's place of business, the address and type of use of each unassessed

515     benefitted government property described in Subsection (1)(g).
516          (7) If a governing body fails to provide actual or constructive notice under this section,
517     the local entity may not assess a levy against a benefitted property omitted from the notice
518     unless:
519          (a) the property owner gives written consent;
520          (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
521     not object to the levy of the assessment before the final hearing of the board of equalization; or
522          (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
523     of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
524     Subsection 11-42-207(1)(d)(i) are met.
525          Section 4. Section 11-42-411 is amended to read:
526          11-42-411. Installment payment of assessments.
527          (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
528     Subsection (1)(b), provide that some or all of the assessment be paid in installments over a
529     period:
530          (i) not to exceed 20 years from the effective date of the resolution or ordinance[.],
531     except as provided in Subsection (1)(a)(ii); or
532          (ii) not to exceed 30 years from the effective date of the resolution, for a resolution
533     adopted by:
534          (A) the military installation development authority, created in Section 63H-1-201; or
535          (B) a public infrastructure district created by the military installation development
536     authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act.
537          (b) If an assessment resolution or ordinance provides that some or all of the assessment
538     be paid in installments for a period exceeding 10 years from the effective date of the resolution
539     or ordinance, the governing body:
540          (i) shall make a determination that:
541          (A) the improvement for which the assessment is made has a reasonable useful life for

542     the full period during which installments are to be paid; or
543          (B) it would be in the best interests of the local entity and the property owners for
544     installments to be paid for more than 10 years; and
545          (ii) may provide in the resolution or ordinance that no assessment is payable during
546     some or all of the period ending three years after the effective date of the resolution or
547     ordinance.
548          (2) An assessment resolution or ordinance that provides for the assessment to be paid
549     in installments may provide that the unpaid balance be paid over the period of time that
550     installments are payable:
551          (a) in substantially equal installments of principal; or
552          (b) in substantially equal installments of principal and interest.
553          (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
554     paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
555     of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
556     variable rates, as determined by the governing body, from the effective date of the resolution or
557     ordinance or another date specified in the resolution or ordinance.
558          (b) If the assessment is for operation and maintenance costs or for the costs of
559     economic promotion activities:
560          (i) a local entity may charge interest only from the date each installment is due; and
561          (ii) the first installment of an assessment shall be due 15 days after the effective date of
562     the assessment resolution or ordinance.
563          (c) If an assessment resolution or ordinance provides for the unpaid balance of the
564     assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
565     specify:
566          (i) the basis upon which the rate is to be determined from time to time;
567          (ii) the manner in which and schedule upon which the rate is to be adjusted; and
568          (iii) a maximum rate that the assessment may bear.

569          (4) Interest payable on assessments may include:
570          (a) interest on assessment bonds;
571          (b) ongoing local entity costs incurred for administration of the assessment area; and
572          (c) any costs incurred with respect to:
573          (i) securing a letter of credit or other instrument to secure payment or repurchase of
574     bonds; or
575          (ii) retaining a marketing agent or an indexing agent.
576          (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
577     to the amount of each installment annually or at more frequent intervals as provided in the
578     assessment resolution or ordinance.
579          (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
580     economic promotion activities, a property owner may pay some or all of the entire assessment
581     without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
582          (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
583     time prepay some or all of the assessment levied against the owner's property.
584          (c) A local entity may require a prepayment of an installment to include:
585          (i) an amount equal to the interest that would accrue on the assessment to the next date
586     on which interest is payable on bonds issued in anticipation of the collection of the assessment;
587     and
588          (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
589     designated by the governing body, to assure the availability of money to pay:
590          (A) interest that becomes due and payable on those bonds; and
591          (B) any premiums that become payable on bonds that are called in order to use the
592     money from the prepaid assessment installment.
593          Section 5. Section 11-42-502.1 is amended to read:
594          11-42-502.1. Enforcement of an assessment lien -- Post-May 10, 2016, procedure.
595          (1) (a) Except as provided in Subsection (1)(b), the provisions of this section apply to

596     any property that is:
597          (i) located within the boundaries of an assessment area; and
598          (ii) the subject of a foreclosure procedure initiated on or after May 10, 2016, for an
599     assessment or an installment of an assessment that is not paid when due.
600          (b) The provisions of this chapter do not apply to property described in Subsection
601     11-42-502(1)(b).
602          (2) (a) If an assessment or an installment of an assessment is not paid when due in a
603     given year:
604          (i) subject to Subsection (2)(b):
605          (A) by September 15, the governing body of the local entity that levies the assessment
606     shall certify any unpaid amount calculated as of the date of the certification to the treasurer of
607     the county in which the assessed property is located; and
608          (B) the county treasurer shall include the certified amount on the property tax notice
609     required by Section 59-2-1317 for that year; and
610          (ii) the local entity may sell the property on which the assessment has been levied for
611     the amount due plus interest, penalties, and costs:
612          (A) in the manner provided in Title 59, Chapter 2, Part 13, Collection of Taxes, for the
613     sale of property for delinquent general property taxes;
614          (B) by judicial foreclosure; or
615          (C) in the manner described in Title 57, Chapter 1, Conveyances, if the property is in a
616     voluntary assessment area and the owner of record of the property [at the time the local entity
617     initiates the process to sell the property in accordance with Title 57, Chapter 1, Conveyances,]
618     executed a property owner's consent form described in Subsection 11-42-202(1)(l) that includes
619     a provision described in Subsection 11-42-202(1)(l)(iv).
620          (b) (i) The certification of the unpaid amount described in Subsection (2)(a)(i):
621          (A) has no effect on the amount due plus interest, penalties, and costs or other
622     requirements of the assessment as described in the assessment resolution or ordinance; and

623          (B) is required to provide for the ability of the local entity to collect the delinquent
624     assessment by the sale of property in a sale for delinquent general property taxes and tax notice
625     charges, as that term is defined in Section 59-2-1301.5, in accordance with Title 59, Chapter 2,
626     Part 13, Collection of Taxes.
627          (ii) A local entity's failure to certify an amount in accordance with Subsection (2)(a)(i)
628     or a county treasurer's failure to include the certified amount on the property tax notice is not a
629     defense to and does not delay, prohibit, or diminish a local entity's lien rights or authority to
630     pursue any enforcement remedy, other than a delay in the local entity's ability to collect the
631     delinquent assessment as described in Subsection (2)(b)(i)(B).
632          (c) Nothing in Subsection (2)(a)(i) or in Title 11, Chapter 60, Political Subdivision
633     Lien Authority, prohibits or diminishes a local entity's authority to pursue any remedy in
634     Subsection (2)(a)(ii).
635          (3) Except as otherwise provided in this chapter, each tax sale under Subsection
636     (2)(a)(ii)(A) shall be governed by Title 59, Chapter 2, Part 13, Collection of Taxes, to the same
637     extent as if the sale were for the sale of property for delinquent general property taxes.
638          (4) (a) The redemption of property that is the subject of a tax sale under Subsection
639     (2)(a)(ii)(A) is governed by Title 59, Chapter 2, Part 13, Collection of Taxes.
640          (b) The redemption of property that is the subject of a judicial foreclosure proceeding
641     under Subsection (2)(a)(ii)(B) is governed by Title 78B, Chapter 6, Part 9, Mortgage
642     Foreclosure.
643          (c) The redemption of property that is the subject of a foreclosure proceeding under
644     Subsection (2)(a)(ii)(C) is governed by Title 57, Chapter 1, Conveyances.
645          (5) (a) The remedies described in this part for the collection of an assessment and the
646     enforcement of an assessment lien are cumulative.
647          (b) The use of one or more of the remedies described in this part does not deprive the
648     local entity of any other available remedy or means of collecting the assessment or enforcing
649     the assessment lien.

650          Section 6. Section 17B-2a-1202 is amended to read:
651          17B-2a-1202. Definitions.
652          As used in this part:
653          (1) "Board" means the board of trustees of a public infrastructure district.
654          (2) "Creating entity" means the county [or], municipality, or development authority that
655     approves [of] the creation of the public infrastructure district.
656          (3) "Development authority" means the military installation development authority
657     created in Section 63H-1-201.
658          [(3)] (4) "District applicant" means the person proposing the creation of the public
659     infrastructure district.
660          [(4)] (5) "Division" means a division of a public infrastructure district:
661          (a) that is relatively equal in number of eligible voters or potential eligible voters to all
662     other divisions within the public infrastructure district, taking into account existing or potential
663     developments which, when completed, would increase or decrease the population within the
664     public infrastructure district; and
665          (b) which a member of the board represents.
666          [(5)] (6) "Governing document" means the document governing the public
667     infrastructure district to which the creating entity agrees before the creation of the public
668     infrastructure district, as amended from time to time, and subject to the limitations of Chapter
669     1, Provisions Applicable to All Local Districts, and this part.
670          [(6)] (7) (a) "Limited tax bond" means a bond:
671          (i) that is directly payable from and secured by ad valorem property taxes that are
672     levied:
673          (A) by the public infrastructure district that issues the bond; and
674          (B) on taxable property within the district;
675          (ii) that is a general obligation of the public infrastructure district; and
676          (iii) for which the ad valorem property tax levy for repayment of the bond does not

677     exceed the mill rate limit established under Section 17B-2a-1209 for any fiscal year, except as
678     provided in Subsection 17B-2a-1207(8).
679          (b) "Limited tax bond" does not include:
680          (i) a short-term bond;
681          (ii) a tax and revenue anticipation bond; or
682          (iii) a special assessment bond.
683          Section 7. Section 17B-2a-1204 is amended to read:
684          17B-2a-1204. Creation.
685          (1) (a) [In] Except as provided in Subsection (1)(b) and in addition to the provisions
686     regarding creation of a local district in Chapter 1, Provisions Applicable to All Local Districts,
687     a public infrastructure district may not be created unless:
688          [(a)] (i) if there are any registered voters within the applicable area, a petition is filed
689     with the creating entity that contains the signatures of 100% of registered voters within the
690     applicable area approving the creation of the public infrastructure district; and
691          [(b)] (ii) a petition is filed with the creating entity that contains the signatures of 100%
692     of surface property owners within the applicable area consenting to the creation of the public
693     infrastructure district.
694          (b) Notwithstanding Chapter 1, Part 2, Creation of a Local District, and any other
695     provision of this part, the development authority may adopt a resolution creating a public
696     infrastructure district as a subsidiary of the development authority if all owners of surface
697     property proposed to be included within the public infrastructure district consent in writing to
698     the creation of the public infrastructure district.
699          (2) The election requirement of Section 17B-1-214 does not apply to a petition meeting
700     the requirements of Subsection (1)(a).
701          (3) (a) Notwithstanding Chapter 1, Part 4, Annexation, an area outside of the
702     boundaries of a public infrastructure district may be annexed into the public infrastructure
703     district after:

704          (i) adoption of resolutions of the board and the creating entity, each approving of the
705     annexation;
706          (ii) if there are any registered voters within the area proposed to be annexed, a petition
707     is filed with the creating entity that contains the signatures of 100% of registered voters within
708     the area and approves of the annexation into the public infrastructure district; and
709          (iii) a petition is filed with the creating entity that contains the signatures of 100% of
710     surface property owners within the area proposed to be annexed and consents to the annexation
711     into the public infrastructure district.
712          (b) Upon meeting the requirements of Subsection (3)(a), the board shall comply with
713     the resolution and filing requirements of Subsections 17B-1-414(1) and (2).
714          (c) (i) Notwithstanding Chapter 1, Part 5, Withdrawal, property may be withdrawn
715     from a public infrastructure district after:
716          (A) adoption of resolutions of the board and the creating entity, each approving of the
717     annexation;
718          (B) if there are any registered voters within the area proposed to be withdrawn, a
719     petition is filed with the creating entity that contains the signatures of 100% of registered voters
720     within the area and approves of the withdrawal from the public infrastructure district; and
721          (C) a petition is filed with the creating entity that contains the signatures of 100% of
722     surface property owners within the area proposed to be withdrawn and consents to the
723     withdrawal from the public infrastructure district.
724          (ii) If any bonds that the public infrastructure district issues are allocable to the area to
725     be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains
726     subject to any taxes, fees, or assessments that the public infrastructure district imposes until the
727     bonds or any associated refunding bonds are paid.
728          (d) Upon meeting the requirements of Subsection (3)(c), the board shall comply with
729     the requirements of Section 17B-1-512.
730          (4) The creating entity may impose limitations on the powers of the public

731     infrastructure district through the governing document.
732          (5) (a) A public infrastructure district is separate and distinct from the creating entity.
733          (b) (i) Except as provided in Subsection (5)(b)(ii), any financial burden of a public
734     infrastructure district:
735          (A) is borne solely by the public infrastructure district; and
736          (B) is not borne by the creating entity [or any municipality, county,], by the state, or
737     [any] by any municipality, county, or other political subdivision.
738          (ii) Notwithstanding Subsection (5)(b)(i) and Section 17B-1-216, the governing
739     document may require:
740          (A) the district applicant to bear the initial costs of the public infrastructure district;
741     and
742          (B) the public infrastructure district to reimburse the district applicant for the initial
743     costs the creating entity bears.
744          (c) Any liability, judgment, or claim against a public infrastructure district:
745          (i) is the sole responsibility of the public infrastructure district; and
746          (ii) does not constitute a liability, judgment, or claim against the creating entity, the
747     state, or any municipality, county, or other political subdivision.
748          (d) (i) (A) The public infrastructure district solely bears the responsibility of any
749     collection, enforcement, or foreclosure proceeding with regard to any tax, fee, or assessment
750     the public infrastructure district imposes.
751          (B) The creating entity does not bear the responsibility described in Subsection
752     (5)(d)(i)(A).
753          (ii) A public infrastructure district, and not the creating entity, shall undertake the
754     enforcement responsibility described in, as applicable, Subsection (5)(d)(i) in accordance with
755     Title 59, Chapter 2, Property Tax Act, or Title 11, Chapter 42, Assessment Area Act.
756          (6) The creating entity may establish criteria in determining whether to approve or
757     disapprove of the creation of a public infrastructure district, including:

758          (a) historical performance of the district applicant;
759          (b) compliance with the creating entity's master plan;
760          (c) credit worthiness of the district applicant;
761          (d) plan of finance of the public infrastructure district; and
762          (e) proposed development within the public infrastructure district.
763          (7) (a) The creation of a public infrastructure district is subject to the sole discretion of
764     the creating entity responsible for approving or rejecting the creation of the public
765     infrastructure district.
766          (b) The proposed creating entity bears no liability for rejecting the proposed creation of
767     a public infrastructure district.
768          Section 8. Section 17B-2a-1205 is amended to read:
769          17B-2a-1205. Public infrastructure district board -- Governing document.
770          (1) The legislative body or board of the creating entity [that approves the creation of a
771     public infrastructure district] shall appoint the members of the board, in accordance with the
772     governing document.
773          (2) (a) Unless otherwise limited in the governing document and except as provided in
774     Subsection (2)(b), the initial term of each member of the board is four years.
775          (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
776     board shall serve a six-year term so that, after the expiration of the initial term, the term of
777     approximately half the board members expires every two years.
778          (c) A board may elect that a majority of the board serve an initial term of six years.
779          (d) After the initial term, the term of each member of the board is four years.
780          (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required
781     to be a resident within the boundaries of the public infrastructure district if:
782          (i) all of the surface property owners consent to the waiver of the residency
783     requirement;
784          (ii) there are no residents within the boundaries of the public infrastructure district;

785          (iii) no qualified candidate timely files to be considered for appointment to the board;
786     or
787          (iv) no qualified individual files a declaration of candidacy for a board position in
788     accordance with Subsection 17B-1-306(4).
789          (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
790     residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member
791     elected for a division or board position that has transitioned from an appointed to an elected
792     board member in accordance with this section.
793          (c) An individual who is not a resident within the boundaries of the public
794     infrastructure district may not serve as a board member unless the individual is:
795          (i) an owner of land or an agent or officer of the owner of land within the boundaries of
796     the public infrastructure district; and
797          (ii) a registered voter at the individual's primary residence.
798          (4) (a) A governing document may provide for a transition from legislative body
799     appointment under Subsection (1) to a method of election by registered voters based upon
800     milestones or events that the governing document identifies, including a milestone for each
801     division or individual board position providing that when the milestone is reached:
802          (i) for a division, the registered voters of the division elect a member of the board in
803     place of an appointed member at the next municipal general election for the board position; or
804          (ii) for an at large board position established in the governing document, the registered
805     voters of the public infrastructure district elect a member of the board in place of an appointed
806     member at the next municipal general election for the board position.
807          (b) Regardless of whether a board member is elected under Subsection (4)(a), the
808     position of each remaining board member shall continue to be appointed under Subsection (1)
809     until the member's respective division or board position surpasses the density milestone
810     described in the governing document.
811          (5) (a) Subject to Subsection (5)(c), the board may, in the board's discretion but no

812     more frequently than every four years, reestablish the boundaries of each division so that each
813     division that has reached a milestone specified in the governing document, as described in
814     Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.
815          (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
816     consider existing or potential developments within the divisions which, when completed,
817     would increase or decrease the number of eligible voters within the division.
818          (c) The governing document may prohibit the board from reestablishing, without the
819     consent of the creating entity, the division boundaries as described in Subsection (5)(a).
820          (6) The public infrastructure district may not compensate a board member for the
821     member's service on the board under Section 17B-1-307 unless the board member is a resident
822     within the boundaries of the public infrastructure district.
823          (7) The governing document shall:
824          (a) include a boundary description and a map of the public infrastructure district;
825          (b) state the number of board members;
826          (c) describe any divisions of the public infrastructure district;
827          (d) establish any applicable mill rate limit for the public infrastructure district;
828          (e) establish any applicable limitation on the principal amount of indebtedness for the
829     public infrastructure district; and
830          (f) include other information that the public infrastructure district or the creating entity
831     determines to be necessary or advisable.
832          (8) (a) Except as provided in Subsection (8)(b), the board and the governing body of
833     the creating entity may amend a governing document by each adopting a resolution that
834     approves the amended governing document.
835          (b) Notwithstanding Subsection (8)(a), any amendment to a property tax mill limitation
836     requires:
837          (i) before the adoption of the resolution of the creating entity described in Subsection
838     (8)(a), the public infrastructure district to comply with the notice and public hearing

839     requirements of Section 59-2-919, with at least one member of the governing body of the
840     creating entity attending the public hearing required in Subsection 59-2-919(3)(a)(v) or (4)(b);
841     or
842          (ii) the consent of:
843          (A) 100% of surface property owners within the boundaries of the public infrastructure
844     district; and
845          (B) 100% of the registered voters, if any, within the boundaries of the public
846     infrastructure district.
847          (9) A board member is not in violation of Section 67-16-9 if the board member:
848          (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
849     and files the disclosure with the creating entity:
850          (i) before any appointment or election; and
851          (ii) upon any significant change in the business relationship; and
852          (b) conducts the affairs of the public infrastructure district in accordance with this title
853     and any parameters described in the governing document.
854          (10) Notwithstanding any other provision of this section, the governing document
855     governs the number, appointment, and terms of board members of a public infrastructure
856     district created by the development authority.
857          Section 9. Section 17B-2a-1206 is amended to read:
858          17B-2a-1206. Additional public infrastructure district powers.
859          In addition to the powers conferred on a public infrastructure district under Section
860     17B-1-103, a public infrastructure district may:
861          (1) issue negotiable bonds to pay:
862          (a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
863     any of the improvements, facilities, or property allowed under Section 11-14-103;
864          (b) capital costs of improvements in an energy assessment area, as defined in Section
865     11-42a-102, and other related costs, against the funds that the public infrastructure district will

866     receive because of an assessment in an energy assessment area, as defined in Section
867     [11-42a-401] 11-42a-102;
868          (c) public improvements related to the provision of housing; [and]
869          (d) capital costs related to public transportation; and
870          (e) for a public infrastructure district created by the development authority, the cost of
871     acquiring or financing publicly owned infrastructure and improvements;
872          (2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
873     Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
874     of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
875     Cooperation Act, without the consent of the creating entity;
876          (3) acquire completed or partially completed improvements for fair market value as
877     reasonably determined by:
878          (a) the board;
879          (b) the creating entity, if required in the governing document; or
880          (c) a surveyor or engineer that a public infrastructure district employs or engages to
881     perform the necessary engineering services for and to supervise the construction or installation
882     of the improvements; [and]
883          (4) contract with the creating entity for the creating entity to provide administrative
884     services on behalf of the public infrastructure district, when agreed to by both parties, in order
885     to achieve cost savings and economic efficiencies, at the discretion of the creating entity[.]; and
886          (5) for a public infrastructure district created by a development authority:
887          (a) (i) operate and maintain publicly owned infrastructure and improvements the
888     district acquires or finances; and
889          (ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
890     publicly owned infrastructure and improvements; and
891          (b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
892          Section 10. Section 63H-1-102 is amended to read:

893          63H-1-102. Definitions.
894          As used in this chapter:
895          (1) "Authority" means the Military Installation Development Authority, created under
896     Section 63H-1-201.
897          (2) "Base taxable value" means:
898          (a) for military land or other land that was exempt from a property tax at the time that a
899     project area was created that included the military land or other land, a taxable value of zero; or
900          (b) for private property that is included in a project area, the taxable value of the
901     property within any portion of the project area, as designated by board resolution, from which
902     the property tax allocation will be collected, as shown upon the assessment roll last equalized:
903          (i) before the year in which the authority creates the project area[.]; or
904          (ii) before the year in which the project area plan is amended, for property added to a
905     project area by an amendment to a project area plan.
906          (3) "Board" means the governing body of the authority created under Section
907     63H-1-301.
908          (4) (a) "Dedicated tax collections" means the property tax that remains after the
909     authority is paid the property tax allocation the authority is entitled to receive under Subsection
910     63H-1-501(1), for a property tax levied by:
911          (i) a county, including a district the county has established under Subsection 17-34-3(2)
912     to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
913     Areas; or
914          (ii) an included municipality.
915          (b) "Dedicated tax collections" does not include a county additional property tax or
916     multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602.
917          (5) (a) "Development" means an activity occurring:
918          (i) on land within a project area that is owned or operated by the military, the authority,
919     another public entity, or a private entity; or

920          (ii) on military land associated with a project area.
921          (b) "Development" includes the demolition, construction, reconstruction, modification,
922     expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
923     recreational amenity.
924          (6) "Development project" means a project to develop land within a project area.
925          (7) "Elected member" means a member of the authority board who:
926          (a) is a mayor or member of a legislative body appointed under Subsection
927     63H-1-302(2)(b); or
928          (b) (i) is appointed to the authority board under Subsection 63H-1-302(2)(a) or (3); and
929          (ii) concurrently serves in an elected state, county, or municipal office.
930          (8) "Included municipality" means a municipality, some or all of which is included
931     within a project area.
932          (9) (a) "Military" means a branch of the armed forces of the United States, including
933     the Utah National Guard.
934          (b) "Military" includes, in relation to property, property that is occupied by the military
935     and is owned by the government of the United States or the state.
936          (10) "Military Installation Development Authority accommodations tax" or "MIDA
937     accommodations tax" means the tax imposed under Section 63H-1-205.
938          (11) "Military Installation Development Authority energy tax" or "MIDA energy tax"
939     means the tax levied under Section 63H-1-204.
940          (12) "Military land" means land or a facility, including leased land or a leased facility,
941     that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
942     jurisdiction of the United States Department of Defense, the United States Department of
943     Veterans Affairs, or the Utah National Guard.
944          (13) "Municipal energy tax" means a municipal energy sales and use tax under Title
945     10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
946          (14) "Municipal services revenue" means revenue that the authority:

947          (a) collects from the authority's:
948          (i) levy of a municipal energy tax;
949          (ii) levy of a MIDA energy tax;
950          (iii) levy of a telecommunications tax;
951          (iv) imposition of a transient room tax; and
952          (v) imposition of a resort communities tax;
953          (b) receives under Subsection 59-12-205(2)(b)(ii); and
954          (c) receives as dedicated tax collections.
955          (15) "Municipal tax" means a municipal energy tax, MIDA energy tax, MIDA
956     accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
957          (16) "Project area" means the land, including military land, whether consisting of a
958     single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
959     project area plan, where the development project set forth in the project area plan or draft
960     project area plan takes place or is proposed to take place.
961          (17) "Project area budget" means a multiyear projection of annual or cumulative
962     revenues and expenses and other fiscal matters pertaining to a project area that includes:
963          (a) the base taxable value of property in the project area;
964          (b) the projected property tax allocation expected to be generated within the project
965     area;
966          (c) the amount of the property tax allocation expected to be shared with other taxing
967     entities;
968          (d) the amount of the property tax allocation expected to be used to implement the
969     project area plan, including the estimated amount of the property tax allocation to be used for
970     land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
971     incentives to private and public entities;
972          (e) the property tax allocation expected to be used to cover the cost of administering
973     the project area plan;

974          (f) if the property tax allocation is to be collected at different times or from different
975     portions of the project area, or both:
976          (i) (A) the tax identification numbers of the parcels from which the property tax
977     allocation will be collected; or
978          (B) a legal description of the portion of the project area from which the property tax
979     allocation will be collected; and
980          (ii) an estimate of when other portions of the project area will become subject to
981     collection of the property tax allocation; and
982          (g) for property that the authority owns or leases and expects to sell or sublease, the
983     expected total cost of the property to the authority and the expected selling price or lease
984     payments.
985          (18) "Project area plan" means a written plan that, after the plan's effective date, guides
986     and controls the development within a project area.
987          (19) (a) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4,
988     Privilege Tax, except as described in Subsection (19)(b), and each levy on an ad valorem basis
989     on tangible or intangible personal or real property.
990          (b) "Property tax" does not include a privilege tax on the taxable value:
991          (i) attributable to a portion of a facility leased to the military for a calendar year when:
992          (A) a lessee of military land has constructed a facility on the military land that is part of
993     a project area;
994          (B) the lessee leases space in the facility to the military for the entire calendar year; and
995          (C) the lease rate paid by the military for the space is $1 or less for the entire calendar
996     year, not including any common charges that are reimbursements for actual expenses; or
997          (ii) of the following property owned by the authority, regardless of whether the
998     authority enters into a long-term operating agreement with a privately owned entity under
999     which the privately owned entity agrees to operate the property:
1000          (A) a hotel;

1001          (B) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
1002     and
1003          (C) a commercial condominium unit in a condominium project, as defined in Section
1004     57-8-3.
1005          (20) "Property tax allocation" means the difference between:
1006          (a) the amount of property tax revenues generated each tax year by all taxing entities
1007     from the area within a project area designated in the project area plan as the area from which
1008     the property tax allocation is to be collected, using the current assessed value of the property;
1009     and
1010          (b) the amount of property tax revenues that would be generated from that same area
1011     using the base taxable value of the property.
1012          (21) "Public entity" means:
1013          (a) the state, including each department or agency of the state; or
1014          (b) a political subdivision of the state, including a county, city, town, school district,
1015     local district, special service district, or interlocal cooperation entity.
1016          (22) (a) "Publicly owned infrastructure and improvements" means infrastructure,
1017     improvements, facilities, or buildings that benefit the public, the authority, the military, or
1018     military-related entities and are:
1019          (i) publicly owned by the military, the authority, a public infrastructure district under
1020     Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act, or another public entity;
1021          (ii) owned by a utility; or
1022          (iii) publicly maintained or operated by the military, the authority, or another public
1023     entity.
1024          (b) "Publicly owned infrastructure and improvements" includes:
1025          (i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
1026     water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications; [and]
1027          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking

1028     facilities, [and] public transportation facilities[.], and parks, trails, and other recreational
1029     facilities;
1030          (iii) snowmaking equipment and related improvements that can also be used for water
1031     storage or fire suppression purposes; and
1032          (iv) a building and related improvements for occupancy by the public, the authority, the
1033     military, or military-related entities.
1034          (23) "Remaining municipal services revenue" means municipal services revenue that
1035     the authority has not:
1036          (a) spent during the authority's fiscal year for municipal services as provided in
1037     Subsection 63H-1-503(1); or
1038          (b) redirected to use in accordance with Subsection 63H-1-502(3).
1039          (24) "Resort communities tax" means a sales and use tax imposed under Section
1040     59-12-401.
1041          (25) "Taxable value" means the value of property as shown on the last equalized
1042     assessment roll [as certified by the county assessor].
1043          (26) "Taxing entity":
1044          (a) means a public entity that levies a tax on property within a project area[.]; and
1045          (b) does not include a public infrastructure district that the authority creates under Title
1046     17B, Chapter 2a, Part 12, Public Infrastructure District Act.
1047          (27) "Telecommunications tax" means a telecommunications license tax under Title
1048     10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
1049          (28) "Transient room tax" means a tax under Section 59-12-352.
1050          Section 11. Section 63H-1-103 is enacted to read:
1051          63H-1-103. Severability.
1052          If a court determines that any provision of this chapter, or the application of any
1053     provision of this chapter, is invalid, the remainder of this chapter shall be given effect without
1054     the invalid provision or application.

1055          Section 12. Section 63H-1-201 is amended to read:
1056          63H-1-201. Creation of military installation development authority -- Status and
1057     powers of authority -- Limitation.
1058          (1) There is created a military installation development authority.
1059          (2) The authority is:
1060          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
1061     succession and statewide jurisdiction, whose purpose is to facilitate the development of land
1062     within a project area or on military land associated with a project area;
1063          (b) a political subdivision of the state; and
1064          (c) a public corporation, as defined in Section 63E-1-102.
1065          (3) The authority may:
1066          (a) as provided in this chapter, facilitate the development of land within one or more
1067     project areas, including the ongoing operation of facilities within a project area, or
1068     development of military land associated with a project area;
1069          (b) sue and be sued;
1070          (c) enter into contracts generally;
1071          (d) by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
1072     any interest in real or personal property:
1073          (i) in a project area; or
1074          (ii) outside a project area for publicly owned infrastructure and improvements, if the
1075     board considers the purchase, option, or other interest acquisition to be necessary for fulfilling
1076     the authority's development objectives;
1077          (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
1078     personal property;
1079          (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
1080          (i) in a project area; or
1081          (ii) outside a project area, if the board considers the lease to be necessary for fulfilling

1082     the authority's development objectives;
1083          (g) provide for the development of land within a project area or military land
1084     associated with the project area under one or more contracts;
1085          (h) exercise powers and perform functions under a contract, as authorized in the
1086     contract;
1087          (i) exercise exclusive police power within a project area to the same extent as though
1088     the authority were a municipality, including the collection of regulatory fees;
1089          (j) receive the property tax allocation and other taxes and fees as provided in this
1090     chapter;
1091          (k) accept financial or other assistance from any public or private source for the
1092     authority's activities, powers, and duties, and expend any funds so received for any of the
1093     purposes of this chapter;
1094          (l) borrow money, contract with, or accept financial or other assistance from the federal
1095     government, a public entity, or any other source for any of the purposes of this chapter and
1096     comply with any conditions of the loan, contract, or assistance;
1097          (m) issue bonds to finance the undertaking of any development objectives of the
1098     authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
1099     Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
1100          (n) hire employees, including contract employees;
1101          (o) transact other business and exercise all other powers provided for in this chapter;
1102          (p) enter into a development agreement with a developer of land within a project area;
1103          (q) enter into an agreement with a political subdivision of the state under which the
1104     political subdivision provides one or more municipal services within a project area;
1105          (r) enter into an agreement with a private contractor to provide one or more municipal
1106     services within a project area;
1107          (s) provide for or finance an energy efficiency upgrade, a renewable energy system, or
1108     electric vehicle charging infrastructure as defined in Section [11-42-102] 11-42a-102, in

1109     accordance with Title 11, Chapter [42, Assessment Area Act] 42a, Commercial Property
1110     Assessed Clean Energy Act;
1111          (t) exercise powers and perform functions that the authority is authorized by statute to
1112     exercise or perform; [and]
1113          (u) enter into an agreement with the federal government or an agency of the federal
1114     government under which the federal government or agency:
1115          (i) provides law enforcement services only to military land within a project area; and
1116          (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
1117     agency of the state or a political subdivision of the state[.]; and
1118          (v) by itself or through a subsidiary, provide expertise and knowledge to another
1119     governmental entity interested in public-private partnerships.
1120          (4) The authority may not itself provide law enforcement service or fire protection
1121     service within a project area but may enter into an agreement for one or both of those services,
1122     as provided in Subsection (3)(q).
1123          (5) Because providing procurement, utility, construction, and other services for use by
1124     a military installation, including providing publicly owned infrastructure and improvements for
1125     use or occupancy by the military, are core functions of the authority and are typically provided
1126     by a local government for the local government's own needs or use, these services provided by
1127     the authority for the military under this chapter are considered to be for the authority's own
1128     needs and use.
1129          Section 13. Section 63H-1-202 is amended to read:
1130          63H-1-202. Applicability of other law.
1131          (1) The authority or land within a project area is not subject to:
1132          (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
1133          (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
1134          (c) ordinances or regulations of a county or municipality, including those relating to
1135     land use, health, business license, or franchise; or

1136          (d) the jurisdiction of a local district under Title 17B, Limited Purpose Local
1137     Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
1138     Special Service District Act.
1139          (2) The authority is subject to and governed by Sections 63E-2-106, 63E-2-107,
1140     63E-2-108, 63E-2-109, 63E-2-110, and 63E-2-111, but is not otherwise subject to or governed
1141     by Title 63E, Independent Entities Code.
1142          (3) (a) The definitions in Section 57-8-3 apply to this Subsection (3).
1143          (b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
1144     Act, or any other provision of law:
1145          (i) if the military is the owner of land in a project area on which a condominium project
1146     is constructed, the military is not required to sign, execute, or record a declaration of a
1147     condominium project; and
1148          (ii) if a condominium unit in a project area is owned by the military or owned by the
1149     authority and leased to the military for $1 or less per calendar year, not including any common
1150     charges that are reimbursements for actual expenses:
1151          (A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
1152     Condominium Ownership Act;
1153          (B) condominium unit owners within the same building or commercial condominium
1154     project may agree on any method of allocation and payment of common area expenses,
1155     regardless of the size or par value of each unit; and
1156          (C) the condominium project may not be dissolved without the consent of all the
1157     condominium unit owners.
1158          (4) Notwithstanding any other provision, when a law requires the consent of a local
1159     government, the authority is the consenting entity for a project area.
1160          (5) (a) A department, division, or other agency of the state and a political subdivision
1161     of the state shall cooperate with the authority to the fullest extent possible to provide whatever
1162     support, information, or other assistance the authority requests that is reasonably necessary to

1163     help the authority fulfill the authority's duties and responsibilities under this chapter.
1164          (b) Subsection (5)(a) does not apply to a political subdivision that does not have any of
1165     a project area located within the boundary of the political subdivision.
1166          Section 14. Section 63H-1-206 is amended to read:
1167          63H-1-206. Property exchange -- Freeway interchange construction.
1168          (1) (a) If the authority receives title to real property from [a military installation] the
1169     Secretary of the United States Air Force, pursuant to Section 2831 of the National Defense
1170     Authorization Act for Fiscal Year 2020, for construction of an interchange by the Department
1171     of Transportation, the authority shall exchange the real property intended for the interchange
1172     with the Department of Transportation for any unused remainder of real property that the
1173     Department of Transportation does not need for the freeway after the interchange is complete.
1174          (b) The authority or a subsidiary of the authority is the designee of the state, within the
1175     meaning of Section 2831(a) of the National Defense Authorization Act for Fiscal Year 2020.
1176          (2) An exchange described in Subsection (1) shall occur at no cost to the authority or
1177     the Department of Transportation, regardless of the value of the real property.
1178          (3) (a) The authority shall demolish the structures on and, as required by the Secretary
1179     of the United States Air Force and the Utah Department of Environmental Quality,
1180     environmentally mitigate the real property that the authority exchanges with the Department of
1181     Transportation under this section.
1182          (b) The Department of Transportation shall remove unneeded freeway improvements
1183     from the real property that the Department of Transportation exchanges with the authority
1184     under this section.
1185          (4) Upon the authority's receipt of title to real property under this section, the real
1186     property automatically becomes included within the project area adjacent to the real property.
1187          Section 15. Section 63H-1-207 is enacted to read:
1188          63H-1-207. Authority jurisdiction over Department of Transportation property.
1189          (1) As used in this section:

1190          (a) "Highway land" means land that is:
1191          (i) owned by the Department of Transportation, created in Section 72-1-201; and
1192          (ii) within an authority project area that was created to provide military recreation
1193     facilities and support.
1194          (b) "Highway land" does not include:
1195          (i) a class A state road that is in active use; and
1196          (ii) a shoulder or appurtenance that is contiguous to a class A state road that is in active
1197     use.
1198          (2) Notwithstanding any other provision of statute, the authority has jurisdiction and
1199     control over highway land, subject to Subsection (3).
1200          (3) The executive director of the Department of Transportation may, in consultation
1201     with the authority, transfer, sell, trade, or lease the highway land or any interest in the highway
1202     land as provided in Section 72-5-111 and any applicable rules and regulations.
1203          Section 16. Section 63H-1-403 is amended to read:
1204          63H-1-403. Notice of project area plan adoption -- Effective date of plan --
1205     Contesting the formation of the plan.
1206          (1) Upon the board's adoption of a project area plan, the board shall provide notice as
1207     provided in Subsection (1)(b) by publishing or causing to be published legal notice:
1208          (a) in a newspaper of general circulation within or near the project area; and
1209          (b) as required by Section 45-1-101.
1210          (2) (a) Each notice under Subsection (1) shall include:
1211          (i) the board resolution adopting the project area plan or a summary of the resolution;
1212     and
1213          (ii) a statement that the project area plan is available for general public inspection and
1214     the hours for inspection.
1215          (b) The statement required under Subsection (2)(a)(ii) may be included in the board
1216     resolution or summary described in Subsection (2)(a)(i).

1217          (3) The project area plan [shall become] becomes effective on the date [of publication
1218     of the notice]designated in the board resolution adopting the project area plan.
1219          (4) The authority shall make the adopted project area plan available to the general
1220     public at its offices during normal business hours.
1221          (5) Within 10 days after the day on which a project area plan is adopted that establishes
1222     a project area, or after an amendment to a project area plan is adopted under which the
1223     boundary of a project area is modified, the authority shall send notice of the establishment or
1224     modification of the project area and an accurate map or plat of the project area to:
1225          (a) the State Tax Commission;
1226          (b) the Automated Geographic Reference Center created in Section 63F-1-506; and
1227          (c) the assessor and recorder of each county where the project area is located.
1228          (6) (a) A legal action or other challenge to a project area plan or a project area
1229     described in a project area plan is barred unless brought within 30 days after the effective date
1230     of the project area plan.
1231          (b) For a project area created before December 1, 2018, a legal action or other
1232     challenge is barred.
1233          (c) For a project area created after December 1, 2018, and before May 14, 2019, a legal
1234     action or other challenge is barred after July 1, 2019.
1235          Section 17. Section 63H-1-403.5 is amended to read:
1236          63H-1-403.5. Amendment to a project area plan.
1237          (1) The authority may amend a project area plan by following the same procedure
1238     under this part as applies to the adoption of a project area plan.
1239          (2) The provisions of this part apply to the authority's adoption of an amendment to a
1240     project area plan to the same extent as they apply to the adoption of a project area plan.
1241          (3) An amendment to a project area plan does not affect the base taxable value
1242     determination for property already within the project area before the amendment.
1243          Section 18. Section 63H-1-405 is amended to read:

1244          63H-1-405. Project area budget.
1245          (1) Before the authority may receive or use the property tax allocation, the authority
1246     board shall prepare and adopt a project area budget.
1247          (2) The authority board may amend an adopted project area budget as and when the
1248     authority board considers it appropriate.
1249          (3) If the authority adopts a budget under Part 7, Authority Budget and Reports, that
1250     also meets the requirements of this part, the authority need not separately adopt a budget under
1251     this part.
1252          Section 19. Section 63H-1-501 is amended to read:
1253          63H-1-501. Authority receipt and use of property tax allocation -- Contractual
1254     annual payment -- Distribution of property tax allocation.
1255          (1) (a) The authority may:
1256          (i) subject to Subsection (1)(b):
1257          (A) receive up to 75% of the property tax allocation for up to 25 years, as provided in
1258     this part; and
1259          (B) after the time period described in Subsection (1)(a)(i)(A) expires, receive up to
1260     75% of the property tax allocation for up to 15 years, if the board determines the additional
1261     years will produce significant benefit; and
1262          (ii) use the property tax allocation before, during, and after the period described in
1263     Subsection (1)(a)(i).
1264          (b) With respect to a parcel located within a project area, the 25-year period described
1265     in Subsection (1)(a)(i)(A) [shall begin] begins on the day on which the authority receives the
1266     first property tax allocation from that parcel.
1267          (2) (a) For purposes of Subsection (1)(b), the authority may designate an improved
1268     portion of a parcel in a project area as a separate parcel.
1269          (b) An authority designation of an improved portion of a parcel as a separate parcel
1270     under Subsection (2)(a) is for purposes of Subsection (1)(b) only and does not constitute a

1271     subdivision for any other purpose.
1272          (c) A county recorder shall assign a separate tax identification number to the improved
1273     portion of a parcel designated by the authority as a separate parcel under Subsection (2)(a).
1274          [(2)] (3) Improvements on a parcel within a project area become subject to property tax
1275     on January 1 immediately following the day on which the authority or an entity designated by
1276     the authority issues a certificate of occupancy with respect to those improvements.
1277          [(3)] (4) (a) If the authority or an entity designated by the authority has not issued a
1278     certificate of occupancy for a private parcel within a project area, the private parcel owner shall
1279     [enter into a contract with the authority to] make an annual payment to the authority:
1280          (i) that is equal to 1.2% of the taxable value of the parcel above the base taxable value
1281     of the parcel; and
1282          (ii) until the parcel becomes subject to the property tax described in Subsection [(2)]
1283     (3).
1284          (b) The authority may use the revenue from payments described in Subsection (3)(a)
1285     for any purpose described in Subsection 63H-1-502(1).
1286          (c) The authority may submit for recording to the office of the recorder of the county in
1287     which a private parcel described in Subsection (4)(a) is located:
1288          (i) a copy of an agreement between the authority and the private parcel owner that
1289     memorializes the payment obligation under Subsection (4)(a); or
1290          (ii) a notice that describes the payment obligation under Subsection (4)(a).
1291          (d) An owner of a private parcel described in Subsection (4)(a) may not be required to
1292     make a payment that exceeds or is in addition to the payment described in Subsection (4)(a)(i)
1293     until the private parcel becomes subject to the property tax described in Subsection (3).
1294          (e) Upon the transfer of title of a private parcel described in Subsection (4)(a), the
1295     amount of the annual payment required under Subsection (4)(a) shall be:
1296          (i) treated the same as a property tax; and
1297          (ii) prorated between the previous owner and the owner who acquires title from the

1298     previous owner.
1299          [(4)] (5) Each county that collects property tax on property within a project area shall
1300     pay and distribute to the authority the property tax allocation and dedicated tax collections that
1301     the authority is entitled to collect under this title, in the manner and at the time provided in
1302     Section 59-2-1365.
1303          [(5)] (6) (a) The board shall determine by resolution when the entire project area or an
1304     individual parcel within a project area is subject to property tax allocation.
1305          (b) The board shall amend the project area budget to reflect whether a parcel within a
1306     project area is subject to property tax allocation.
1307          [(6)] (7) The following property owned by the authority is not subject to any property
1308     tax under Title 59, Chapter 2, Property Tax Act, or any privilege tax under Title 59, Chapter 4,
1309     Privilege Tax, regardless of whether the authority enters into a long-term operating agreement
1310     with a privately owned entity under which the privately owned entity agrees to operate the
1311     property:
1312          (a) a hotel;
1313          (b) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
1314     and
1315          (c) a commercial condominium unit in a condominium project, as defined in Section
1316     57-8-3.
1317          Section 20. Section 63H-1-502 is amended to read:
1318          63H-1-502. Allowable uses of property tax allocation and other funds.
1319          (1) Other than municipal services revenue, the authority may use the property tax
1320     allocation and other funds available to the authority:
1321          (a) for any purpose authorized under this chapter;
1322          (b) for administrative, overhead, legal, and other operating expenses of the authority;
1323          (c) to pay for, including financing or refinancing, all or part of the development of land
1324     within the project area from which the property tax allocation or other funds were collected,

1325     including assisting the ongoing operation of a development or facility within the project area;
1326          (d) to pay the cost of the installation and construction of publicly owned infrastructure
1327     and improvements within the project area from which the property tax allocation funds were
1328     collected;
1329          (e) to pay the cost of the installation of publicly owned infrastructure and
1330     improvements, including a passenger ropeway, as defined in Section 72-11-102, outside the
1331     project area if:
1332          (i) the authority board determines by resolution that the infrastructure and
1333     improvements are of benefit to the project area; and
1334          (ii) for a passenger ropeway, at least one end of the ropeway is located within the
1335     project area;
1336          (f) to pay the principal and interest on bonds issued by the authority;
1337          (g) to pay for a morale, welfare, and recreation program of a United States Air Force
1338     base in Utah, affiliated with the project area from which the funds were collected; or
1339          (h) to pay for the promotion of:
1340          (i) a development within the project area; or
1341          (ii) amenities outside of the project area that are associated with a development within
1342     the project area.
1343          (2) The authority may use revenue generated from the operation of publicly owned
1344     infrastructure operated by the authority or improvements operated by the authority to:
1345          (a) operate and maintain the infrastructure or improvements; and
1346          (b) pay for authority operating expenses, including administrative, overhead, and legal
1347     expenses.
1348          (3) For purposes of Subsection (1), the authority may use:
1349          (a) tax revenue received under Subsection 59-12-205(2)(b)(ii);
1350          (b) resort communities tax revenue;
1351          (c) MIDA energy tax revenue, received under Section 63H-1-204, which does not have

1352     to be used in the project area where the revenue was generated;
1353          (d) MIDA accommodations tax revenue, received under Section 63H-1-205;
1354          (e) transient room tax revenue generated from hotels located on authority-owned or
1355     other public-entity-owned property;
1356          (f) municipal energy tax revenue generated from hotels located on authority-owned or
1357     other public-entity-owned property; or
1358          (g) payments received under Subsection 63H-1-501[(3)](4).
1359          (4) The determination of the authority board under Subsection (1)(e) regarding benefit
1360     to the project area is final.
1361          Section 21. Effective date.
1362          If approved by two-thirds of all the members elected to each house, this bill takes effect
1363     upon approval by the governor, or the day following the constitutional time limit of Utah
1364     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
1365     the date of veto override.