1     
POLITICAL SUBDIVISIONS AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jerry W. Stevenson

5     
House Sponsor: Francis D. Gibson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies and enacts provisions relating to political subdivisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     authorizes the Utah Inland Port Authority to levy an assessment under the
13     Assessment Area Act and makes provisions of that act applicable to the inland port
14     authority;
15          ▸     excludes a public infrastructure district created by the inland port authority from the
16     definition of "taxing entity" applicable to the Utah Inland Port Authority Act;
17          ▸     creates enterprise revolving loan funds, to be administered by the Division of
18     Finance, to provide funding for infrastructure projects relating to the Utah Inland
19     Port Authority, the Point of the Mountain State Land Authority, and the Military
20     Installation Development Authority, and enacts provisions governing those funds;
21          ▸     provides an exception to Open and Public Meeting Act requirements for electronic
22     meetings held by the board of the Point of the Mountain State Land Authority,
23     under certain circumstances;
24          ▸     authorizes the Utah Inland Port Authority to create public infrastructure districts;
25          ▸     defines "public entity" in the context of provisions applicable to the Point of the
26     Mountain State Land Authority;
27          ▸      modifies election provisions relating to a local district whose board members are
28     elected by property owners;

29          ▸     makes an exception to a voter approval requirement for general obligation bonds
30     issued by a local district whose board members are elected by property owners;
31          ▸     modifies a definition related to public infrastructure and improvements in the
32     context of provisions applicable to the Military Installation Development Authority;
33     and
34          ▸     makes technical changes.
35     Money Appropriated in this Bill:
36          None
37     Other Special Clauses:
38          None
39     Utah Code Sections Affected:
40     AMENDS:
41          11-42-102, as last amended by Laws of Utah 2020, Chapter 282
42          11-42-106, as last amended by Laws of Utah 2020, Chapter 282
43          11-42-202, as last amended by Laws of Utah 2020, Chapter 282
44          11-42-411, as last amended by Laws of Utah 2020, Chapter 282
45          11-58-102, as last amended by Laws of Utah 2020, Chapter 126
46          11-58-304, as last amended by Laws of Utah 2018, Second Special Session, Chapter 1
47          11-59-102, as enacted by Laws of Utah 2018, Chapter 388
48          11-59-204, as enacted by Laws of Utah 2018, Chapter 388
49          17B-1-306, as last amended by Laws of Utah 2020, Chapter 31
50          17B-1-1102, as last amended by Laws of Utah 2019, Chapter 490
51          17B-2a-1202, as last amended by Laws of Utah 2020, Chapters 282 and 397
52          17B-2a-1205, as last amended by Laws of Utah 2020, Chapters 282 and 397
53          17B-2a-1206, as last amended by Laws of Utah 2020, Chapter 282
54          63H-1-102, as last amended by Laws of Utah 2020, Chapter 282
55     ENACTS:

56          11-58-106, Utah Code Annotated 1953
57          11-59-104, Utah Code Annotated 1953
58          63A-3-401.5, Utah Code Annotated 1953
59          63A-3-402, Utah Code Annotated 1953
60          63A-3-403, Utah Code Annotated 1953
61          63A-3-404, Utah Code Annotated 1953
62          63H-1-104, Utah Code Annotated 1953
63     

64     Be it enacted by the Legislature of the state of Utah:
65          Section 1. Section 11-42-102 is amended to read:
66          11-42-102. Definitions.
67          (1) As used in this chapter:
68          (a) "Adequate protests" means, for all proposed assessment areas except sewer
69     assessment areas, timely filed, written protests under Section 11-42-203 that represent at least
70     40% of the frontage, area, taxable value, fair market value, lots, number of connections, or
71     equivalent residential units of the property proposed to be assessed, according to the same
72     assessment method by which the assessment is proposed to be levied, after eliminating:
73          (i) protests relating to:
74          (A) property that has been deleted from a proposed assessment area; or
75          (B) an improvement that has been deleted from the proposed improvements to be
76     provided to property within the proposed assessment area; and
77          (ii) protests that have been withdrawn under Subsection 11-42-203(3).
78          (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
79     written protests under Section 11-42-203 that represent at least 70% of the frontage, area,
80     taxable value, fair market value, lots, number of connections, or equivalent residential units of
81     the property proposed to be assessed, according to the same assessment method by which the
82     assessment is proposed to be levied, after eliminating adequate protests under Subsection

83     (1)(a).
84          (2) "Assessment area" means an area, or, if more than one area is designated, the
85     aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
86     local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
87     costs of improvements, operation and maintenance, or economic promotion activities that
88     benefit property within the area.
89          (3) "Assessment bonds" means bonds that are:
90          (a) issued under Section 11-42-605; and
91          (b) payable in part or in whole from assessments levied in an assessment area,
92     improvement revenues, and a guaranty fund or reserve fund.
93          (4) "Assessment fund" means a special fund that a local entity establishes under
94     Section 11-42-412.
95          (5) "Assessment lien" means a lien on property within an assessment area that arises
96     from the levy of an assessment, as provided in Section 11-42-501.
97          (6) "Assessment method" means the method:
98          (a) by which an assessment is levied against benefitted property, whether by frontage,
99     area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
100     unit, any combination of these methods, or any other method; and
101          (b) that, when applied to a benefitted property, accounts for an assessment that meets
102     the requirements of Section 11-42-409.
103          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
104     Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
105          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
106     11-42-404 that levies an assessment on benefitted property within an assessment area.
107          (9) "Benefitted property" means property within an assessment area that directly or
108     indirectly benefits from improvements, operation and maintenance, or economic promotion
109     activities.

110          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
111     anticipation of the issuance of assessment bonds.
112          (11) "Bonds" means assessment bonds and refunding assessment bonds.
113          (12) "Commercial area" means an area in which at least 75% of the property is devoted
114     to the interchange of goods or commodities.
115          (13) (a) "Commercial or industrial real property" means real property used directly or
116     indirectly or held for one of the following purposes or activities, regardless of whether the
117     purpose or activity is for profit:
118          (i) commercial;
119          (ii) mining;
120          (iii) industrial;
121          (iv) manufacturing;
122          (v) governmental;
123          (vi) trade;
124          (vii) professional;
125          (viii) a private or public club;
126          (ix) a lodge;
127          (x) a business; or
128          (xi) a similar purpose.
129          (b) "Commercial or industrial real property" includes real property that:
130          (i) is used as or held for dwelling purposes; and
131          (ii) contains more than four rental units.
132          (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
133     connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
134     electrical system, whether or not improvements are installed on the property.
135          (15) "Contract price" means:
136          (a) the cost of acquiring an improvement, if the improvement is acquired; or

137          (b) the amount payable to one or more contractors for the design, engineering,
138     inspection, and construction of an improvement.
139          (16) "Designation ordinance" means an ordinance adopted by a local entity under
140     Section 11-42-206 designating an assessment area.
141          (17) "Designation resolution" means a resolution adopted by a local entity under
142     Section 11-42-206 designating an assessment area.
143          (18) "Development authority" means:
144          (a) the Utah Inland Port Authority created in Section 11-58-201; or
145          (b) the military installation development authority created in Section 63H-1-201.
146          [(18)] (19) "Economic promotion activities" means activities that promote economic
147     growth in a commercial area of a local entity, including:
148          (a) sponsoring festivals and markets;
149          (b) promoting business investment or activities;
150          (c) helping to coordinate public and private actions; and
151          (d) developing and issuing publications designed to improve the economic well-being
152     of the commercial area.
153          [(19)] (20) "Environmental remediation activity" means a surface or subsurface
154     enhancement, effort, cost, initial or ongoing maintenance expense, facility, installation, system,
155     earth movement, or change to grade or elevation that improves the use, function, aesthetics, or
156     environmental condition of publicly owned property.
157          [(20)] (21) "Equivalent residential unit" means a dwelling, unit, or development that is
158     equal to a single-family residence in terms of the nature of its use or impact on an improvement
159     to be provided in the assessment area.
160          [(21)] (22) "Governing body" means:
161          (a) for a county, city, or town, the legislative body of the county, city, or town;
162          (b) for a local district, the board of trustees of the local district;
163          (c) for a special service district:

164          (i) the legislative body of the county, city, or town that established the special service
165     district, if no administrative control board has been appointed under Section 17D-1-301; or
166          (ii) the administrative control board of the special service district, if an administrative
167     control board has been appointed under Section 17D-1-301;
168          (d) for the military installation development authority created in Section 63H-1-201,
169     the board, as defined in Section 63H-1-102; and
170          (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
171     defined in Section 11-58-102.
172          [(22)] (23) "Guaranty fund" means the fund established by a local entity under Section
173     11-42-701.
174          [(23)] (24) "Improved property" means property upon which a residential, commercial,
175     or other building has been built.
176          [(24)] (25) "Improvement":
177          (a) (i) means a publicly owned infrastructure, facility, system, or environmental
178     remediation activity that:
179          (A) a local entity is authorized to provide;
180          (B) the governing body of a local entity determines is necessary or convenient to
181     enable the local entity to provide a service that the local entity is authorized to provide; or
182          (C) a local entity is requested to provide through an interlocal agreement in accordance
183     with Chapter 13, Interlocal Cooperation Act; and
184          (ii) includes facilities in an assessment area, including a private driveway, an irrigation
185     ditch, and a water turnout, that:
186          (A) can be conveniently installed at the same time as an infrastructure, system, or other
187     facility described in Subsection [(24)] (25)(a)(i); and
188          (B) are requested by a property owner on whose property or for whose benefit the
189     infrastructure, system, or other facility is being installed; or
190          (b) for a local district created to assess groundwater rights in accordance with Section

191     17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
192     groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
193          [(25)] (26) "Improvement revenues":
194          (a) means charges, fees, impact fees, or other revenues that a local entity receives from
195     improvements; and
196          (b) does not include revenue from assessments.
197          [(26)] (27) "Incidental refunding costs" means any costs of issuing refunding
198     assessment bonds and calling, retiring, or paying prior bonds, including:
199          (a) legal and accounting fees;
200          (b) charges of financial advisors, escrow agents, certified public accountant verification
201     entities, and trustees;
202          (c) underwriting discount costs, printing costs, the costs of giving notice;
203          (d) any premium necessary in the calling or retiring of prior bonds;
204          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
205     refund the outstanding prior bonds;
206          (f) any other costs that the governing body determines are necessary and proper to incur
207     in connection with the issuance of refunding assessment bonds; and
208          (g) any interest on the prior bonds that is required to be paid in connection with the
209     issuance of the refunding assessment bonds.
210          [(27)] (28) "Installment payment date" means the date on which an installment
211     payment of an assessment is payable.
212          [(28)] (29) "Interim warrant" means a warrant issued by a local entity under Section
213     11-42-601.
214          [(29)] (30) "Jurisdictional boundaries" means:
215          (a) for a county, the boundaries of the unincorporated area of the county; and
216          (b) for each other local entity, the boundaries of the local entity.
217          [(30)] (31) "Local district" means a local district under Title 17B, Limited Purpose

218     Local Government Entities - Local Districts.
219          [(31)] (32) "Local entity" means:
220          (a) a county, city, town, special service district, or local district;
221          (b) an interlocal entity as defined in Section 11-13-103;
222          (c) the military installation development authority, created in Section 63H-1-201;
223          (d) a public infrastructure district created by [the military installation] a development
224     authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act;
225          (e) the Utah Inland Port Authority, created in Section 11-58-201; or
226          (f) any other political subdivision of the state.
227          [(32)] (33) "Local entity obligations" means assessment bonds, refunding assessment
228     bonds, interim warrants, and bond anticipation notes issued by a local entity.
229          [(33)] (34) "Mailing address" means:
230          (a) a property owner's last-known address using the name and address appearing on the
231     last completed real property assessment roll of the county in which the property is located; and
232          (b) if the property is improved property:
233          (i) the property's street number; or
234          (ii) the post office box, rural route number, or other mailing address of the property, if
235     a street number has not been assigned.
236          [(34)] (35) "Net improvement revenues" means all improvement revenues that a local
237     entity has received since the last installment payment date, less all amounts payable by the local
238     entity from those improvement revenues for operation and maintenance costs.
239          [(35)] (36) "Operation and maintenance costs":
240          (a) means the costs that a local entity incurs in operating and maintaining
241     improvements in an assessment area, whether or not those improvements have been financed
242     under this chapter; and
243          (b) includes service charges, administrative costs, ongoing maintenance charges, and
244     tariffs or other charges for electrical, water, gas, or other utility usage.

245          [(36)] (37) "Overhead costs" means the actual costs incurred or the estimated costs to
246     be incurred by a local entity in connection with an assessment area for appraisals, legal fees,
247     filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and
248     paying agent fees, publishing and mailing costs, costs of levying an assessment, recording
249     costs, and all other incidental costs.
250          [(37)] (38) "Prior assessment ordinance" means the ordinance levying the assessments
251     from which the prior bonds are payable.
252          [(38)] (39) "Prior assessment resolution" means the resolution levying the assessments
253     from which the prior bonds are payable.
254          [(39)] (40) "Prior bonds" means the assessment bonds that are refunded in part or in
255     whole by refunding assessment bonds.
256          [(40)] (41) "Project engineer" means the surveyor or engineer employed by or the
257     private consulting engineer engaged by a local entity to perform the necessary engineering
258     services for and to supervise the construction or installation of the improvements.
259          [(41)] (42) "Property" includes real property and any interest in real property, including
260     water rights and leasehold rights.
261          [(42)] (43) "Property price" means the price at which a local entity purchases or
262     acquires by eminent domain property to make improvements in an assessment area.
263          [(43)] (44) "Provide" or "providing," with reference to an improvement, includes the
264     acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
265     expansion of an improvement.
266          [(44)] (45) "Public agency" means:
267          (a) the state or any agency, department, or division of the state; and
268          (b) a political subdivision of the state.
269          [(45)] (46) "Reduced payment obligation" means the full obligation of an owner of
270     property within an assessment area to pay an assessment levied on the property after the
271     assessment has been reduced because of the issuance of refunding assessment bonds, as

272     provided in Section 11-42-608.
273          [(46)] (47) "Refunding assessment bonds" means assessment bonds that a local entity
274     issues under Section 11-42-607 to refund, in part or in whole, assessment bonds.
275          [(47)] (48) "Reserve fund" means a fund established by a local entity under Section
276     11-42-702.
277          [(48)] (49) "Service" means:
278          (a) water, sewer, storm drainage, garbage collection, library, recreation,
279     communications, or electric service;
280          (b) economic promotion activities; or
281          (c) any other service that a local entity is required or authorized to provide.
282          [(49)] (50) (a) "Sewer assessment area" means an assessment area that has as the
283     assessment area's primary purpose the financing and funding of public improvements to
284     provide sewer service where there is, in the opinion of the local board of health, substantial
285     evidence of septic system failure in the defined area due to inadequate soils, high water table,
286     or other factors proven to cause failure.
287          (b) "Sewer assessment area" does not include property otherwise located within the
288     assessment area:
289          (i) on which an approved conventional or advanced wastewater system has been
290     installed during the previous five calendar years;
291          (ii) for which the local health department has inspected the system described in
292     Subsection [(49)] (50)(b)(i) to ensure that the system is functioning properly; and
293          (iii) for which the property owner opts out of the proposed assessment area for the
294     earlier of a period of 10 calendar years or until failure of the system described in Subsection
295     [(49)] (50)(b)(i).
296          [(50)] (51) "Special service district" means the same as that term is defined in Section
297     17D-1-102.
298          [(51)] (52) "Unassessed benefitted government property" means property that a local

299     entity may not assess in accordance with Section 11-42-408 but is benefitted by an
300     improvement, operation and maintenance, or economic promotion activities.
301          [(52)] (53) "Unimproved property" means property upon which no residential,
302     commercial, or other building has been built.
303          [(53)] (54) "Voluntary assessment area" means an assessment area that contains only
304     property whose owners have voluntarily consented to an assessment.
305          Section 2. Section 11-42-106 is amended to read:
306          11-42-106. Action to contest assessment or proceeding -- Requirements --
307     Exclusive remedy -- Bonds and assessment incontestable.
308          (1) A person who contests an assessment or any proceeding to designate an assessment
309     area or levy an assessment may commence a civil action against the local entity to:
310          (a) set aside a proceeding to designate an assessment area; or
311          (b) enjoin the levy or collection of an assessment.
312          (2) (a) Each action under Subsection (1) shall be commenced in the district court with
313     jurisdiction in the county in which the assessment area is located.
314          (b) (i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
315     not be commenced against and a summons relating to the action may not be served on the local
316     entity more than 60 days after the effective date of the:
317          (A) designation resolution or designation ordinance, if the challenge is to the
318     designation of an assessment area;
319          (B) assessment resolution or ordinance, if the challenge is to an assessment; or
320          (C) amended resolution or ordinance, if the challenge is to an amendment.
321          (ii) The period for commencing an action and serving a summons under Subsection
322     (2)(b)(i) is 30 days if the designation resolution, assessment resolution, or amended resolution
323     was:
324          (A) adopted by [the military installation] a development authority[, created in Section
325     63H-1-201,] or a public infrastructure district created by [the military installation] a

326     development authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act;
327     and
328          (B) all owners of property within the assessment area or proposed assessment area
329     consent in writing to the designation resolution, assessment resolution, or amended resolution.
330          (3) (a) An action under Subsection (1) is the exclusive remedy of a person who:
331          (i) claims an error or irregularity in an assessment or in any proceeding to designate an
332     assessment area or levy an assessment; or
333          (ii) challenges a bondholder's right to repayment.
334          (b) A court may not hear any complaint under Subsection (1) that a person was
335     authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under
336     Section 11-42-204.
337          (c) (i) If a person has not brought a claim for which the person was previously
338     authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
339     may not be brought later because of an amendment to the resolution or ordinance unless the
340     claim arises from the amendment itself.
341          (ii) In an action brought pursuant to Subsection (1), a person may not contest a
342     previous decision, proceeding, or determination for which the service deadline described in
343     Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
344     determination.
345          (4) An assessment or a proceeding to designate an assessment area or to levy an
346     assessment may not be declared invalid or set aside in part or in whole because of an error or
347     irregularity that does not go to the equity or justice of the proceeding or the assessment meeting
348     the requirements of Section 11-42-409.
349          (5) After the expiration of the period referred to in Subsection (2)(b):
350          (a) assessment bonds and refunding assessment bonds issued or to be issued with
351     respect to an assessment area and assessments levied on property in the assessment area
352     become at that time incontestable against all persons who have not commenced an action and

353     served a summons as provided in this section; and
354          (b) a suit to enjoin the issuance or payment of assessment bonds or refunding
355     assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
356     question in any way the legality of assessment bonds, refunding assessment bonds, or an
357     assessment may not be commenced, and a court may not inquire into those matters.
358          (6) (a) This section may not be interpreted to insulate a local entity from a claim of
359     misuse of assessment funds after the expiration of the period described in Subsection (2)(b).
360          (b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
361     is the sole form of relief available to a party challenging the misuse of assessment funds.
362          (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
363     charges against or the prosecution of a party for the misuse of assessment funds.
364          Section 3. Section 11-42-202 is amended to read:
365          11-42-202. Requirements applicable to a notice of a proposed assessment area
366     designation.
367          (1) Each notice required under Subsection 11-42-201(2)(a) shall:
368          (a) state that the local entity proposes to:
369          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
370     assessment area;
371          (ii) provide an improvement to property within the proposed assessment area; and
372          (iii) finance some or all of the cost of improvements by an assessment on benefitted
373     property within the assessment area;
374          (b) describe the proposed assessment area by any reasonable method that allows an
375     owner of property in the proposed assessment area to determine that the owner's property is
376     within the proposed assessment area;
377          (c) describe, in a general and reasonably accurate way, the improvements to be
378     provided to the assessment area, including:
379          (i) the nature of the improvements; and

380          (ii) the location of the improvements, by reference to streets or portions or extensions
381     of streets or by any other means that the governing body chooses that reasonably describes the
382     general location of the improvements;
383          (d) state the estimated cost of the improvements as determined by a project engineer;
384          (e) for the version of notice mailed in accordance with Subsection (4)(b), state the
385     estimated total assessment specific to the benefitted property for which the notice is mailed;
386          (f) state that the local entity proposes to levy an assessment on benefitted property
387     within the assessment area to pay some or all of the cost of the improvements according to the
388     estimated benefits to the property from the improvements;
389          (g) if applicable, state that an unassessed benefitted government property will receive
390     improvements for which the cost will be allocated proportionately to the remaining benefitted
391     properties within the proposed assessment area and that a description of each unassessed
392     benefitted government property is available for public review at the location or website
393     described in Subsection (6);
394          (h) state the assessment method by which the governing body proposes to calculate the
395     proposed assessment, including, if the local entity is a municipality or county, whether the
396     assessment will be collected:
397          (i) by directly billing a property owner; or
398          (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317
399     and in compliance with Section 11-42-401;
400          (i) state:
401          (i) the date described in Section 11-42-203 and the location at which protests against
402     designation of the proposed assessment area or of the proposed improvements are required to
403     be filed;
404          (ii) the method by which the governing body will determine the number of protests
405     required to defeat the designation of the proposed assessment area or acquisition or
406     construction of the proposed improvements; and

407          (iii) in large, boldface, and conspicuous type that a property owner must protest the
408     designation of the assessment area in writing if the owner objects to the area designation or
409     being assessed for the proposed improvements, operation and maintenance costs, or economic
410     promotion activities;
411          (j) state the date, time, and place of the public hearing required in Section 11-42-204;
412          (k) if the governing body elects to create and fund a reserve fund under Section
413     11-42-702, include a description of:
414          (i) how the reserve fund will be funded and replenished; and
415          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
416     the bonds;
417          (l) if the governing body intends to designate a voluntary assessment area, include a
418     property owner consent form that:
419          (i) estimates the total assessment to be levied against the particular parcel of property;
420          (ii) describes any additional benefits that the governing body expects the assessed
421     property to receive from the improvements;
422          (iii) designates the date and time by which the fully executed consent form is required
423     to be submitted to the governing body; and
424          (iv) if the governing body intends to enforce an assessment lien on the property in
425     accordance with Subsection 11-42-502.1(2)(a)(ii)(C):
426          (A) appoints a trustee that satisfies the requirements described in Section 57-1-21;
427          (B) gives the trustee the power of sale;
428          (C) is binding on the property owner and all successors; and
429          (D) explains that if an assessment or an installment of an assessment is not paid when
430     due, the local entity may sell the property owner's property to satisfy the amount due plus
431     interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances;
432          (m) if the local entity intends to levy an assessment to pay operation and maintenance
433     costs or for economic promotion activities, include:

434          (i) a description of the operation and maintenance costs or economic promotion
435     activities to be paid by assessments and the initial estimated annual assessment to be levied;
436          (ii) a description of how the estimated assessment will be determined;
437          (iii) a description of how and when the governing body will adjust the assessment to
438     reflect the costs of:
439          (A) in accordance with Section 11-42-406, current economic promotion activities; or
440          (B) current operation and maintenance costs;
441          (iv) a description of the method of assessment if different from the method of
442     assessment to be used for financing any improvement; and
443          (v) a statement of the maximum number of years over which the assessment will be
444     levied for:
445          (A) operation and maintenance costs; or
446          (B) economic promotion activities;
447          (n) if the governing body intends to divide the proposed assessment area into
448     classifications under Subsection 11-42-201(1)(b), include a description of the proposed
449     classifications;
450          (o) if applicable, state the portion and value of the improvement that will be increased
451     in size or capacity to serve property outside of the assessment area and how the increases will
452     be financed; and
453          (p) state whether the improvements will be financed with a bond and, if so, the
454     currently estimated interest rate and term of financing, subject to Subsection (2), for which the
455     benefitted properties within the assessment area may be obligated.
456          (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
457     interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
458     subject to the market rate at the time of the issuance of the bond.
459          (3) A notice required under Subsection 11-42-201(2)(a) may contain other information
460     that the governing body considers to be appropriate, including:

461          (a) the amount or proportion of the cost of the improvement to be paid by the local
462     entity or from sources other than an assessment;
463          (b) the estimated total amount of each type of assessment for the various improvements
464     to be financed according to the method of assessment that the governing body chooses; and
465          (c) provisions for any improvements described in Subsection
466     11-42-102[(24)](25)(a)(ii).
467          (4) Each notice required under Subsection 11-42-201(2)(a) shall:
468          (a) (i) (A) be published in a newspaper of general circulation within the local entity's
469     jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
470     least five but not more than 20 days before the day of the hearing required in Section
471     11-42-204; or
472          (B) if there is no newspaper of general circulation within the local entity's jurisdictional
473     boundaries, be posted in at least three public places within the local entity's jurisdictional
474     boundaries at least 20 but not more than 35 days before the day of the hearing required in
475     Section 11-42-204; and
476          (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
477     four weeks before the deadline for filing protests specified in the notice under Subsection
478     (1)(i); and
479          (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
480     the notice under Subsection (4)(a) to each owner of property to be assessed within the proposed
481     assessment area at the property owner's mailing address.
482          (5) (a) The local entity may record the version of the notice that is published or posted
483     in accordance with Subsection (4)(a) with the office of the county recorder, by legal description
484     and tax identification number as identified in county records, against the property proposed to
485     be assessed.
486          (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
487     after the day on which the local entity records the notice if the local entity has failed to adopt

488     the designation ordinance or resolution under Section 11-42-201 designating the assessment
489     area for which the notice was recorded.
490          (6) A local entity shall make available on the local entity's website, or, if no website is
491     available, at the local entity's place of business, the address and type of use of each unassessed
492     benefitted government property described in Subsection (1)(g).
493          (7) If a governing body fails to provide actual or constructive notice under this section,
494     the local entity may not assess a levy against a benefitted property omitted from the notice
495     unless:
496          (a) the property owner gives written consent;
497          (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
498     not object to the levy of the assessment before the final hearing of the board of equalization; or
499          (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
500     of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
501     Subsection 11-42-207(1)(d)(i) are met.
502          Section 4. Section 11-42-411 is amended to read:
503          11-42-411. Installment payment of assessments.
504          (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
505     Subsection (1)(b), provide that some or all of the assessment be paid in installments over a
506     period:
507          (i) not to exceed 20 years from the effective date of the resolution or ordinance, except
508     as provided in Subsection (1)(a)(ii); or
509          (ii) not to exceed 30 years from the effective date of the resolution, for a resolution
510     adopted by:
511          (A) [the military installation] a development authority[, created in Section 63H-1-201];
512     or
513          (B) a public infrastructure district created by [the military installation] a development
514     authority under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act.

515          (b) If an assessment resolution or ordinance provides that some or all of the assessment
516     be paid in installments for a period exceeding 10 years from the effective date of the resolution
517     or ordinance, the governing body:
518          (i) shall make a determination that:
519          (A) the improvement for which the assessment is made has a reasonable useful life for
520     the full period during which installments are to be paid; or
521          (B) it would be in the best interests of the local entity and the property owners for
522     installments to be paid for more than 10 years; and
523          (ii) may provide in the resolution or ordinance that no assessment is payable during
524     some or all of the period ending three years after the effective date of the resolution or
525     ordinance.
526          (2) An assessment resolution or ordinance that provides for the assessment to be paid
527     in installments may provide that the unpaid balance be paid over the period of time that
528     installments are payable:
529          (a) in substantially equal installments of principal; or
530          (b) in substantially equal installments of principal and interest.
531          (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
532     paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
533     of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
534     variable rates, as determined by the governing body, from the effective date of the resolution or
535     ordinance or another date specified in the resolution or ordinance.
536          (b) If the assessment is for operation and maintenance costs or for the costs of
537     economic promotion activities:
538          (i) a local entity may charge interest only from the date each installment is due; and
539          (ii) the first installment of an assessment shall be due 15 days after the effective date of
540     the assessment resolution or ordinance.
541          (c) If an assessment resolution or ordinance provides for the unpaid balance of the

542     assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
543     specify:
544          (i) the basis upon which the rate is to be determined from time to time;
545          (ii) the manner in which and schedule upon which the rate is to be adjusted; and
546          (iii) a maximum rate that the assessment may bear.
547          (4) Interest payable on assessments may include:
548          (a) interest on assessment bonds;
549          (b) ongoing local entity costs incurred for administration of the assessment area; and
550          (c) any costs incurred with respect to:
551          (i) securing a letter of credit or other instrument to secure payment or repurchase of
552     bonds; or
553          (ii) retaining a marketing agent or an indexing agent.
554          (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
555     to the amount of each installment annually or at more frequent intervals as provided in the
556     assessment resolution or ordinance.
557          (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
558     economic promotion activities, a property owner may pay some or all of the entire assessment
559     without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
560          (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
561     time prepay some or all of the assessment levied against the owner's property.
562          (c) A local entity may require a prepayment of an installment to include:
563          (i) an amount equal to the interest that would accrue on the assessment to the next date
564     on which interest is payable on bonds issued in anticipation of the collection of the assessment;
565     and
566          (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
567     designated by the governing body, to assure the availability of money to pay:
568          (A) interest that becomes due and payable on those bonds; and

569          (B) any premiums that become payable on bonds that are called in order to use the
570     money from the prepaid assessment installment.
571          Section 5. Section 11-58-102 is amended to read:
572          11-58-102. Definitions.
573          As used in this chapter:
574          (1) "Authority" means the Utah Inland Port Authority, created in Section 11-58-201.
575          (2) "Authority jurisdictional land" means land within the authority boundary
576     delineated:
577          (a) in the electronic shapefile that is the electronic component of H.B. 2001, Utah
578     Inland Port Authority Amendments, 2018 Second Special Session; and
579          (b) beginning April 1, 2020, as provided in Subsection 11-58-202(3).
580          (3) "Base taxable value" means:
581          (a) (i) except as provided in Subsection (3)(a)(ii), for a project area that consists of the
582     authority jurisdictional land, the taxable value of authority jurisdictional land in calendar year
583     2018; and
584          (ii) for an area described in Subsection 11-58-601(5), the taxable value of that area in
585     calendar year 2017; or
586          (b) for a project area that consists of land outside the authority jurisdictional land, the
587     taxable value of property within any portion of a project area, as designated by board
588     resolution, from which the property tax differential will be collected, as shown upon the
589     assessment roll last equalized before the year in which the authority adopts a project area plan
590     for that area.
591          (4) "Board" means the authority's governing body, created in Section 11-58-301.
592          (5) "Business plan" means a plan designed to facilitate, encourage, and bring about
593     development of the authority jurisdictional land to achieve the goals and objectives described
594     in Subsection 11-58-203(1), including the development and establishment of an inland port.
595          (6) "Development" means:

596          (a) the demolition, construction, reconstruction, modification, expansion, or
597     improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
598     recreational amenity, or other facility, including publicly owned infrastructure and
599     improvements; and
600          (b) the planning of, arranging for, or participation in any of the activities listed in
601     Subsection (6)(a).
602          (7) "Development project" means a project for the development of land within a
603     project area.
604          (8) "Inland port" means one or more sites that:
605          (a) contain multimodal transportation assets and other facilities that:
606          (i) are related but may be separately owned and managed; and
607          (ii) together are intended to:
608          (A) allow global trade to be processed and altered by value-added services as goods
609     move through the supply chain;
610          (B) provide a regional merging point for transportation modes for the distribution of
611     goods to and from ports and other locations in other regions;
612          (C) provide cargo-handling services to allow freight consolidation and distribution,
613     temporary storage, customs clearance, and connection between transport modes; and
614          (D) provide international logistics and distribution services, including freight
615     forwarding, customs brokerage, integrated logistics, and information systems; and
616          (b) may include a satellite customs clearance terminal, an intermodal facility, a
617     customs pre-clearance for international trade, or other facilities that facilitate, encourage, and
618     enhance regional, national, and international trade.
619          (9) "Inland port use" means a use of land:
620          (a) for an inland port;
621          (b) that directly implements or furthers the purposes of an inland port, as stated in
622     Subsection (8);

623          (c) that complements or supports the purposes of an inland port, as stated in Subsection
624     (8); or
625          (d) that depends upon the presence of the inland port for the viability of the use.
626          (10) "Intermodal facility" means a hub or other facility for trade combining any
627     combination of rail, trucking, air cargo, and other transportation services.
628          (11) "Nonvoting member" means an individual appointed as a member of the board
629     under Subsection 11-58-302(6) who does not have the power to vote on matters of authority
630     business.
631          (12) "Project area" means:
632          (a) the authority jurisdictional land; or
633          (b) land outside the authority jurisdictional land, whether consisting of a single
634     contiguous area or multiple noncontiguous areas, described in a project area plan or draft
635     project area plan, where the development project set forth in the project area plan or draft
636     project area plan takes place or is proposed to take place.
637          (13) "Project area budget" means a multiyear projection of annual or cumulative
638     revenues and expenses and other fiscal matters pertaining to the project area.
639          (14) "Project area plan" means a written plan that, after its effective date, guides and
640     controls the development within a project area.
641          (15) "Property tax" includes a privilege tax and each levy on an ad valorem basis on
642     tangible or intangible personal or real property.
643          (16) "Property tax differential":
644          (a) means the difference between:
645          (i) the amount of property tax revenues generated each tax year by all taxing entities
646     from a project area, using the current assessed value of the property; and
647          (ii) the amount of property tax revenues that would be generated from that same area
648     using the base taxable value of the property; and
649          (b) does not include property tax revenue from:

650          (i) a county additional property tax or multicounty assessing and collecting levy
651     imposed in accordance with Section 59-2-1602;
652          (ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
653     or
654          (iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
655     obligation bond.
656          (17) "Public entity" means:
657          (a) the state, including each department, division, or other agency of the state; or
658          (b) a county, city, town, metro township, school district, local district, special service
659     district, interlocal cooperation entity, community reinvestment agency, or other political
660     subdivision of the state, including the authority.
661          (18) "Publicly owned infrastructure and improvements":
662          (a) means infrastructure, improvements, facilities, or buildings that:
663          (i) benefit the public; and
664          (ii) (A) are owned by a public entity or a utility; or
665          (B) are publicly maintained or operated by a public entity;
666          (b) includes:
667          (i) facilities, lines, or systems that provide:
668          (A) water, chilled water, or steam; or
669          (B) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
670     microgrids, or telecommunications service; and
671          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
672     facilities, and public transportation facilities.
673          (19) "Shapefile" means the digital vector storage format for storing geometric location
674     and associated attribute information.
675          (20) "Taxable value" means the value of property as shown on the last equalized
676     assessment roll.

677          (21) "Taxing entity":
678          (a) means a public entity that levies a tax on property within a project area[.]; and
679          (b) does not include a public infrastructure district that the authority creates under Title
680     17B, Chapter 2a, Part 12, Public Infrastructure District Act.
681          (22) "Voting member" means an individual appointed or designated as a member of the
682     board under Subsection 11-58-302(2).
683          Section 6. Section 11-58-106 is enacted to read:
684          11-58-106. Loan approval committee -- Approval of infrastructure loans.
685          (1) As used in this section:
686          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
687          (b) "Infrastructure loan" means the same as that term is defined in Section
688     63A-3-401.5.
689          (c) "Infrastructure project" means the same as that term is defined in Section
690     63A-3-401.5.
691          (d) "Inland port fund" means the same as that term is defined in Section 63A-3-401.5.
692          (e) "Loan approval committee" means a committee consisting of:
693          (i) the two board members appointed by the governor;
694          (ii) the board member appointed by the president of the Senate;
695          (iii) the board member appointed by the speaker of the House of Representatives; and
696          (iv) the board member appointed by the chair of the Permanent Community Impact
697     Fund Board.
698          (2) The loan approval committee may approve an infrastructure loan from the inland
699     port fund to a borrower for an infrastructure project undertaken by the borrower.
700          (3) (a) The loan approval committee shall establish the terms of an infrastructure loan
701     in accordance with Section 63A-3-404.
702          (b) The loan approval committee shall require the terms of an infrastructure loan
703     secured by property tax differential to include a requirement that money from the infrastructure

704     loan be used only for an infrastructure project within the project area that generates the
705     property tax differential.
706          (c) The terms of an infrastructure loan that the loan approval committee approves may
707     include provisions allowing for the infrastructure loan to be forgiven if:
708          (i) the infrastructure loan is to a public university in the state;
709          (ii) the infrastructure loan is to fund a vehicle electrification pilot project;
710          (iii) the amount of the infrastructure loan does not exceed $15,000,000; and
711          (iv) the public university receives matching funds for the vehicle electrification pilot
712     project from another source.
713          (4) (a) The loan approval committee shall establish policies and guidelines with respect
714     to prioritizing requests for infrastructure loans and approving infrastructure loans.
715          (b) With respect to infrastructure loan requests for an infrastructure project on authority
716     jurisdictional land, the policies and guidelines established under Subsection (4)(a) shall give
717     priority to an infrastructure loan request that furthers the policies and best practices
718     incorporated into the environmental sustainability component of the authority's business plan
719     under Subsection 11-58-202(1)(a).
720          (5) Within 60 days after the execution of an infrastructure loan, the loan approval
721     committee shall report the infrastructure loan, including the loan amount, terms, and security,
722     to the Executive Appropriations Committee.
723          (6) (a) Salaries and expenses of committee members who are legislators shall be paid
724     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
725     Compensation.
726          (b) A committee member who is not a legislator may not receive compensation or
727     benefits for the member's service on the committee, but may receive per diem and
728     reimbursement for travel expenses incurred as a committee member at the rates established by
729     the Division of Finance under:
730          (i) Sections 63A-3-106 and 63A-3-107; and

731          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
732     63A-3-107.
733          Section 7. Section 11-58-304 is amended to read:
734          11-58-304. Limitations on board members and executive director.
735          (1) As used in this section:
736          (a) "Direct financial benefit":
737          (i) means any form of financial benefit that accrues to an individual directly, including:
738          (A) compensation, commission, or any other form of a payment or increase of money;
739     and
740          (B) an increase in the value of a business or property; and
741          (ii) does not include a financial benefit that accrues to the public generally.
742          (b) "Family member" means a parent, spouse, sibling, child, or grandchild.
743          (2) An individual may not serve as a voting member of the board or as executive
744     director if:
745          (a) the individual owns real property, other than a personal residence in which the
746     individual resides, [on or within five miles of the authority jurisdictional land] within a project
747     area, whether or not the ownership interest is a recorded interest;
748          (b) a family member of the individual owns an interest in real property, other than a
749     personal residence in which the family member resides, located [on or within one-half mile of
750     the authority jurisdictional land] within a project area; or
751          (c) the individual or a family member of the individual owns an interest in, is directly
752     affiliated with, or is an employee or officer of a private firm, private company, or other private
753     entity that the individual reasonably believes is likely to:
754          (i) participate in or receive a direct financial benefit from the development of the
755     authority jurisdictional land; or
756          (ii) acquire an interest in or locate a facility [on the authority jurisdictional land] within
757     a project area.

758          (3) Before taking office as a voting member of the board or accepting employment as
759     executive director, an individual shall submit to the authority:
760          (a) a statement verifying that the individual's service as a board member or
761     employment as executive director does not violate Subsection (2); or
762          (b) for an individual to whom Subsection 11-58-302(8) applies, the disclosure required
763     under that subsection.
764          (4) (a) An individual may not, at any time during the individual's service as a voting
765     member or employment with the authority, acquire, or take any action to initiate, negotiate, or
766     otherwise arrange for the acquisition of, an interest in real property located [on or within five
767     miles of the authority jurisdictional land] within a project area, if:
768          (i) the acquisition is in the individual's personal capacity or in the individual's capacity
769     as an employee or officer of a private firm, private company, or other private entity; and
770          (ii) the acquisition will enable the individual to receive a direct financial benefit as a
771     result of the development of the [authority jurisdictional land] project area.
772          (b) Subsection (4)(a) does not apply to an individual's acquisition of, or action to
773     initiate, negotiate, or otherwise arrange for the acquisition of, an interest in real property that is
774     a personal residence in which the individual will reside upon acquisition of the real property.
775          (5) (a) A voting member or nonvoting member of the board or an employee of the
776     authority may not receive a direct financial benefit from the development of [authority
777     jurisdictional land] a project area.
778          (b) For purposes of Subsection (5)(a), a direct financial benefit does not include:
779          (i) expense reimbursements;
780          (ii) per diem pay for board member service, if applicable; or
781          (iii) an employee's compensation or benefits from employment with the authority.
782          (6) Nothing in this section may be construed to affect the application or effect of any
783     other code provision applicable to a board member or employee relating to ethics or conflicts
784     of interest.

785          Section 8. Section 11-59-102 is amended to read:
786          11-59-102. Definitions.
787          As used in this chapter:
788          (1) "Authority" means the Point of the Mountain State Land Authority, created in
789     Section 11-59-201.
790          (2) "Board" means the authority's board, created in Section 11-59-301.
791          (3) "Development":
792          (a) means the construction, reconstruction, modification, expansion, or improvement of
793     a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
794     other facility, including:
795          (i) the demolition or preservation or repurposing of a building, infrastructure, or other
796     facility;
797          (ii) surveying, testing, locating existing utilities and other infrastructure, and other
798     preliminary site work; and
799          (iii) any associated planning, design, engineering, and related activities; and
800          (b) includes all activities associated with:
801          (i) marketing and business recruiting activities and efforts;
802          (ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
803     mountain state land; and
804          (iii) planning and funding for mass transit infrastructure to service the point of the
805     mountain state land.
806          (4) "New correctional facility" means the state correctional facility being developed in
807     Salt Lake City to replace the state correctional facility in Draper.
808          (5) "Point of the mountain state land" means the approximately 700 acres of
809     state-owned land in Draper, including land used for the operation of a state correctional facility
810     until completion of the new correctional facility and state-owned land in the vicinity of the
811     current state correctional facility.

812          (6) "Public entity" means:
813          (a) the state, including each department, division, or other agency of the state; or
814          (b) a county, city, town, metro township, school district, local district, special service
815     district, interlocal cooperation entity, community reinvestment agency, or other political
816     subdivision of the state, including the authority.
817          Section 9. Section 11-59-104 is enacted to read:
818          11-59-104. Loan approval committee -- Approval of infrastructure loans.
819          (1) As used in this section:
820          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
821          (b) "Infrastructure loan" means the same as that term is defined in Section
822     63A-3-401.5.
823          (c) "Infrastructure project" means the same as that term is defined in Section
824     63A-3-401.5.
825          (d) "Point of the mountain fund" means the same as that term is defined in Section
826     63A-3-401.5.
827          (e) "Loan approval committee" means a committee consisting of:
828          (i) the board member:
829          (A) who is a member of the Senate appointed under Subsection 11-59-302(2)(a); and
830          (B) whose Senate district is closer to the boundary of the point of the mountain state
831     land than is the Senate district of the other member of the Senate appointed under Subsection
832     11-59-302(2)(a);
833          (ii) the board member:
834          (A) who is a member of the House of Representatives appointed under Subsection
835     11-59-302(2)(b); and
836          (B) whose House district is closer to the boundary of the point of the mountain state
837     land than is the House district of the other member of the House of Representatives appointed
838     under Subsection 11-59-302(2)(b);

839          (iii) the board member who is appointed by the governor under Subsection
840     11-59-302(2)(c)(i);
841          (iv) the board member who is appointed by the governor under Subsection
842     11-59-302(2)(c)(ii); and
843          (v) the board member who is the mayor of Draper or a member of the Draper city
844     council.
845          (2) The loan approval committee may approve an infrastructure loan from the point of
846     the mountain fund to a borrower for an infrastructure project undertaken by the borrower.
847          (3) The loan approval committee shall establish the terms of an infrastructure loan in
848     accordance with Section 63A-3-404.
849          (4) The loan approval committee may establish policies and guidelines with respect to
850     prioritizing requests for infrastructure loans and approving infrastructure loans.
851          (5) Within 60 days after the execution of an infrastructure loan, the loan approval
852     committee shall report the infrastructure loan, including the loan amount, terms, and security,
853     to the Executive Appropriations Committee.
854          (6) (a) Salaries and expenses of committee members who are legislators shall be paid
855     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
856     Compensation.
857          (b) A committee member who is not a legislator may not receive compensation or
858     benefits for the member's service on the committee, but may receive per diem and
859     reimbursement for travel expenses incurred as a committee member at the rates established by
860     the Division of Finance under:
861          (i) Sections 63A-3-106 and 63A-3-107; and
862          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
863     63A-3-107.
864          Section 10. Section 11-59-204 is amended to read:
865          11-59-204. Applicability of other law -- Coordination with municipality.

866          (1) The authority and the point of the mountain state land are not subject to:
867          (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act; or
868          (b) the jurisdiction of a local district under Title 17B, Limited Purpose Local
869     Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
870     Special Service District Act, except to the extent that:
871          (i) some or all of the point of the mountain state land is, on May 8, 2018, included
872     within the boundary of a local district or special service district; and
873          (ii) the authority elects to receive service from the local district or special service
874     district for the point of the mountain state land that is included within the boundary of the local
875     district or special service district, respectively.
876          (2) In formulating and implementing a development plan for the point of the mountain
877     state land, the authority shall consult with officials of the municipality within which the point
878     of the mountain state land is located on planning and zoning matters.
879          (3) The authority is subject to and governed by Sections 63E-2-106, 63E-2-107,
880     63E-2-108, 63E-2-109, 63E-2-110, and 63E-2-111, but is not otherwise subject to or governed
881     by Title 63E, Independent Entities Code.
882          (4) Nothing in this chapter may be construed to remove the point of the mountain state
883     land from the service area of the municipality in which the point of the mountain state land is
884     located, for purposes of water, sewer, and other similar municipal services currently being
885     provided.
886          (5) The authority is subject to Title 52, Chapter 4, Open and Public Meetings Act,
887     except that for an electronic meeting of the authority board that otherwise complies with
888     Section 52-4-207, the authority board:
889          (a) is not required to establish an anchor location; and
890          (b) may convene and conduct the meeting without the written determination otherwise
891     required under Subsection 52-4-207(4).
892          Section 11. Section 17B-1-306 is amended to read:

893          17B-1-306. Local district board -- Election procedures.
894          (1) Except as provided in Subsection (12), each elected board member shall be selected
895     as provided in this section.
896          (2) (a) Each election of a local district board member shall be held:
897          (i) at the same time as the municipal general election or the regular general election, as
898     applicable; and
899          (ii) at polling places designated by the local district board in consultation with the
900     county clerk for each county in which the local district is located, which polling places shall
901     coincide with municipal general election or regular general election polling places, as
902     applicable, whenever feasible.
903          (b) The local district board, in consultation with the county clerk, may consolidate two
904     or more polling places to enable voters from more than one district to vote at one consolidated
905     polling place.
906          (c) (i) Subject to Subsections (5)(h) and (i), the number of polling places under
907     Subsection (2)(a)(ii) in an election of board members of an irrigation district shall be one
908     polling place per division of the district, designated by the district board.
909          (ii) Each polling place designated by an irrigation district board under Subsection
910     (2)(c)(i) shall coincide with a polling place designated by the county clerk under Subsection
911     (2)(a)(ii).
912          (3) The clerk of each local district with a board member position to be filled at the next
913     municipal general election or regular general election, as applicable, shall provide notice of:
914          (a) each elective position of the local district to be filled at the next municipal general
915     election or regular general election, as applicable;
916          (b) the constitutional and statutory qualifications for each position; and
917          (c) the dates and times for filing a declaration of candidacy.
918          (4) The clerk of the local district shall publish the notice described in Subsection (3):
919          (a) by posting the notice on the Utah Public Notice Website created in Section

920     63F-1-701, for 10 days before the first day for filing a declaration of candidacy; and
921          (b) (i) by posting the notice in at least five public places within the local district at least
922     10 days before the first day for filing a declaration of candidacy; or
923          (ii) publishing the notice:
924          (A) in a newspaper of general circulation within the local district at least three but no
925     more than 10 days before the first day for filing a declaration of candidacy;
926          (B) in accordance with Section 45-1-101, for 10 days before the first day for filing a
927     declaration of candidacy; and
928          (c) if the local district has a website, on the local district's website for 10 days before
929     the first day for filing a declaration of candidacy.
930          (5) (a) Except as provided in Subsection (5)(c), to become a candidate for an elective
931     local district board position, an individual shall file a declaration of candidacy in person with
932     an official designated by the local district, during office hours, within the candidate filing
933     period for the applicable election year in which the election for the local district board is held.
934          (b) When the candidate filing deadline falls on a Saturday, Sunday, or holiday, the
935     filing time shall be extended until the close of normal office hours on the following regular
936     business day.
937          (c) Subject to Subsection (5)(f), an individual may designate an agent to file a
938     declaration of candidacy with the official designated by the local district if:
939          (i) the individual is located outside of the state during the entire filing period;
940          (ii) the designated agent appears in person before the official designated by the local
941     district; and
942          (iii) the individual communicates with the official designated by the local district using
943     an electronic device that allows the individual and official to see and hear each other.
944          (d) (i) Before the filing officer may accept any declaration of candidacy from an
945     individual, the filing officer shall:
946          (A) read to the individual the constitutional and statutory qualification requirements for

947     the office that the individual is seeking; and
948          (B) require the individual to state whether the individual meets those requirements.
949          (ii) If the individual does not meet the qualification requirements for the office, the
950     filing officer may not accept the individual's declaration of candidacy.
951          (iii) If it appears that the individual meets the requirements of candidacy, the filing
952     officer shall accept the individual's declaration of candidacy.
953          (e) The declaration of candidacy shall be in substantially the following form:
954          "I, (print name) ____________, being first duly sworn, say that I reside at (Street)
955     ____________, City of ________________, County of ________________, state of Utah, (Zip
956     Code) ______, (Telephone Number, if any)____________; that I meet the qualifications for the
957     office of board of trustees member for _______________________ (state the name of the local
958     district); that I am a candidate for that office to be voted upon at the next election; and that, if
959     filing via a designated agent, I will be out of the state of Utah during the entire candidate filing
960     period, and I hereby request that my name be printed upon the official ballot for that election.
961          (Signed) _________________________________________
962          Subscribed and sworn to (or affirmed) before me by ____________ on this ______ day
963     of ____________, ____.
964          (Signed) ________________________
965          (Clerk or Notary Public)".
966          (f) An agent designated under Subsection (5)(c) may not sign the form described in
967     Subsection (5)(e).
968          (g) Each individual wishing to become a valid write-in candidate for an elective local
969     district board position is governed by Section 20A-9-601.
970          (h) If at least one individual does not file a declaration of candidacy as required by this
971     section, an individual shall be appointed to fill that board position in accordance with the
972     appointment provisions of Section 20A-1-512.
973          (i) If only one candidate files a declaration of candidacy and there is no write-in

974     candidate who complies with Section 20A-9-601, the board, in accordance with Section
975     20A-1-206, may:
976          (i) consider the candidate to be elected to the position; and
977          (ii) cancel the election.
978          (6) (a) A primary election may be held if:
979          (i) the election is authorized by the local district board; and
980          (ii) the number of candidates for a particular local board position or office exceeds
981     twice the number of persons needed to fill that position or office.
982          (b) The primary election shall be conducted:
983          (i) on the same date as the municipal primary election or the regular primary election,
984     as applicable; and
985          (ii) according to the procedures for primary elections provided under Title 20A,
986     Election Code.
987          (7) (a) Except as provided in Subsection (7)(c), within one business day after the
988     deadline for filing a declaration of candidacy, the local district clerk shall certify the candidate
989     names to the clerk of each county in which the local district is located.
990          (b) (i) Except as provided in Subsection (7)(c) and in accordance with Section
991     20A-6-305, the clerk of each county in which the local district is located and the local district
992     clerk shall coordinate the placement of the name of each candidate for local district office in
993     the nonpartisan section of the ballot with the appropriate election officer.
994          (ii) If consolidation of the local district election ballot with the municipal general
995     election ballot or the regular general election ballot, as applicable, is not feasible, the local
996     district board of trustees, in consultation with the county clerk, shall provide for a separate
997     local district election ballot to be administered by poll workers at polling locations designated
998     under Subsection (2).
999          (c) (i) Subsections (7)(a) and (b) do not apply to an election of a member of the board
1000     of an irrigation district established under Chapter 2a, Part 5, Irrigation District Act.

1001          (ii) (A) Subject to Subsection (7)(c)(ii)(B), the board of each irrigation district shall
1002     prescribe the form of the ballot for each board member election.
1003          (B) Each ballot for an election of an irrigation district board member shall be in a
1004     nonpartisan format.
1005          (C) The name of each candidate shall be placed on the ballot in the order specified
1006     under Section 20A-6-305.
1007          (8) (a) Each voter at an election for a board of trustees member of a local district shall:
1008          (i) be a registered voter within the district, except for an election of:
1009          (A) an irrigation district board of trustees member; or
1010          (B) a basic local district board of trustees member who is elected by property owners;
1011     and
1012          (ii) meet the requirements to vote established by the district.
1013          (b) Each voter may vote for as many candidates as there are offices to be filled.
1014          (c) The candidates who receive the highest number of votes are elected.
1015          (9) Except as otherwise provided by this section, the election of local district board
1016     members is governed by Title 20A, Election Code.
1017          (10) (a) Except as provided in Subsection 17B-1-303(8), a person elected to serve on a
1018     local district board shall serve a four-year term, beginning at noon on the January 1 after the
1019     person's election.
1020          (b) A person elected shall be sworn in as soon as practical after January 1.
1021          (11) (a) Except as provided in Subsection (11)(b), each local district shall reimburse
1022     the county or municipality holding an election under this section for the costs of the election
1023     attributable to that local district.
1024          (b) Each irrigation district shall bear [its] the district's own costs of each election [it]
1025     the district holds under this section.
1026          (12) This section does not apply to an improvement district that provides electric or gas
1027     service.

1028          (13) Except as provided in Subsection 20A-3a-605(1)(b), the provisions of Title 20A,
1029     Chapter 3a, Part 6, Early Voting, do not apply to an election under this section.
1030          (14) (a) As used in this Subsection (14), "board" means:
1031          (i) a local district board; or
1032          (ii) the administrative control board of a special service district that has elected
1033     members on the board.
1034          (b) A board may hold elections for membership on the board at a regular general
1035     election instead of a municipal general election if the board submits an application to the
1036     lieutenant governor that:
1037          (i) requests permission to hold elections for membership on the board at a regular
1038     general election instead of a municipal general election; and
1039          (ii) indicates that holding elections at the time of the regular general election is
1040     beneficial, based on potential cost savings, a potential increase in voter turnout, or another
1041     material reason.
1042          (c) Upon receipt of an application described in Subsection (14)(b), the lieutenant
1043     governor may approve the application if the lieutenant governor concludes that holding the
1044     elections at the regular general election is beneficial based on the criteria described in
1045     Subsection (14)(b)(ii).
1046          (d) If the lieutenant governor approves a board's application described in this section:
1047          (i) all future elections for membership on the board shall be held at the time of the
1048     regular general election; and
1049          (ii) the board may not hold elections at the time of a municipal general election unless
1050     the board receives permission from the lieutenant governor to hold all future elections for
1051     membership on the board at a municipal general election instead of a regular general election,
1052     under the same procedure, and by applying the same criteria, described in this Subsection (14).
1053          (15) (a) This Subsection (15) applies to a local district if:
1054          (i) the local district's board members are elected by the owners of real property, as

1055     provided in Subsection 17B-1-1402(1)(b); and
1056          (ii) the local district was created before January 1, 2020.
1057          (b) The board of a local district described in Subsection (15)(a) may conduct an
1058     election:
1059          (i) to fill a board member position that expires at the end of the term for that board
1060     member's position; and
1061          (ii) notwithstanding Subsection 20A-1-512(1)(a)(i), to fill a vacancy in an unexpired
1062     term of a board member.
1063          (c) An election under Subsection (15)(b) may be conducted as determined by the local
1064     district board, subject to Subsection (15)(d).
1065          (d) (i) The local district board shall provide to property owners eligible to vote at the
1066     local district election:
1067          (A) notice of the election; and
1068          (B) a form to nominate an eligible individual to be elected as a board member.
1069          (ii) (A) The local district board may establish a deadline for a property owner to submit
1070     a nomination form.
1071          (B) A deadline under Subsection (15)(d)(ii)(A) may not be earlier than 15 days after
1072     the board provides the notice and nomination form under Subsection (15)(d)(i).
1073          (iii) (A) After the deadline for submitting nomination forms, the local district board
1074     shall provide a ballot to all property owners eligible to vote at the local district election.
1075          (B) A local district board shall allow at least five days for ballots to be returned.
1076          (iv) A local district board shall certify the results of an election under this Subsection
1077     (15) during an open meeting of the board.
1078          Section 12. Section 17B-1-1102 is amended to read:
1079          17B-1-1102. General obligation bonds.
1080          (1) Except as provided in [Subsection (3)] Subsections (3) and (7), if a district intends
1081     to issue general obligation bonds, the district shall first obtain the approval of district voters for

1082     issuance of the bonds at an election held for that purpose as provided in Title 11, Chapter 14,
1083     Local Government Bonding Act.
1084          (2) General obligation bonds shall be secured by a pledge of the full faith and credit of
1085     the district, subject to:
1086          (a) for a water conservancy district, the property tax levy limits of Section
1087     17B-2a-1006; and
1088          (b) for a limited tax bond as defined in Section 17B-2a-1202 that a public
1089     infrastructure district issues, the property tax levy limits of Section 17B-2a-1209.
1090          (3) A district may issue refunding general obligation bonds, as provided in Title 11,
1091     Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
1092          (4) (a) A local district may not issue general obligation bonds if the issuance of the
1093     bonds will cause the outstanding principal amount of all of the district's general obligation
1094     bonds to exceed the amount that results from multiplying the fair market value of the taxable
1095     property within the district, as determined under Subsection 11-14-301(3)(b), by a number that
1096     is:
1097          (i) .05, for a basic local district, except as provided in Subsection (7);
1098          (ii) .004, for a cemetery maintenance district;
1099          (iii) .002, for a drainage district;
1100          (iv) .004, for a fire protection district;
1101          (v) .024, for an improvement district;
1102          (vi) .1, for an irrigation district;
1103          (vii) .1, for a metropolitan water district;
1104          (viii) .0004, for a mosquito abatement district;
1105          (ix) .03, for a public transit district;
1106          (x) .12, for a service area;
1107          (xi) .05 for a municipal services district; or
1108          (xii) except for a limited tax bond as defined in Section 17B-2a-1202, .15 for a public

1109     infrastructure district.
1110          (b) Bonds or other obligations of a local district that are not general obligation bonds
1111     are not included in the limit stated in Subsection (4)(a).
1112          (5) A district may not be considered to be a municipal corporation for purposes of the
1113     debt limitation of the Utah Constitution, Article XIV, Section 4.
1114          (6) Bonds issued by an administrative or legal entity created under Title 11, Chapter
1115     13, Interlocal Cooperation Act, may not be considered to be bonds of a local district that
1116     participates in the agreement creating the administrative or legal entity.
1117          (7) (a) As used in this Subsection (7), "property owner district" means a local district
1118     whose board members are elected by property owners, as provided in Subsection
1119     17B-1-1402(1)(b).
1120          (b) A property owner district may issue a general obligation bond with the consent of:
1121          (i) the owners of all property within the district; and
1122          (ii) all registered voters, if any, within the boundary of the district.
1123          (c) A property owner district may use proceeds from a bond issued under this
1124     Subsection (7) to fund:
1125          (i) the acquisition and construction of a system or improvement authorized in the
1126     district's creation resolution; and
1127          (ii) a connection outside the boundary of the district between systems or improvements
1128     within the boundary of the district.
1129          (d) The consent under Subsection (7)(b) is sufficient for any requirement necessary for
1130     the issuance of a general obligation bond.
1131          (e) A general obligation bond issued under this Subsection (7):
1132          (i) shall mature no later than 40 years after the date of issuance; and
1133          (ii) is not subject to the limit under Subsection (4)(a)(i).
1134          (f) (i) A property owner district may not issue a general obligation bond under this
1135     Subsection (7) if the issuance will cause the outstanding principal amount of all the district's

1136     general obligation bonds to exceed one-half of the market value of all real property within the
1137     district.
1138          (ii) Market value under Subsection (7)(f)(i) shall:
1139          (A) be based on the value that the real property will have after all improvements
1140     financed by the general obligation bonds are constructed; and
1141          (B) be determined by appraisal by an appraiser who is a member of the Appraisal
1142     Institute.
1143          (g) With respect to a general obligation bond issued under this Subsection (7), the
1144     board of a property owner district may, by resolution, delegate to one or more officers of the
1145     district, the authority to:
1146          (i) approve the final interest rate, price, principal amount, maturity, redemption
1147     features, and other terms of the bond;
1148          (ii) approve and execute a document relating to the issuance of the bond; and
1149          (iii) approve a contract related to the acquisition and construction of an improvement,
1150     facility, or property to be financed with proceeds from the bond.
1151          (h) (i) A person may commence a lawsuit or other proceeding to contest the legality of
1152     the issuance of a general obligation bond issued under this Subsection (7) or any provision
1153     relating to the security or payment of the bond if the lawsuit or other proceeding is commenced
1154     within 30 days after the publication of:
1155          (A) the resolution authorizing the issuance of the general obligation bond; or
1156          (B) a notice of the bond issuance containing substantially the items required under
1157     Subsection 11-14-316(2).
1158          (ii) Following the period described in Subsection (7)(h)(i), no person may bring a
1159     lawsuit or other proceeding to contest for any reason the regularity, formality, or legality of a
1160     general obligation bond issued under this Subsection (7).
1161          (i) (i) A property owner district that charges and collects an impact fee or other fee on
1162     real property at the time the real property is sold may proportionally pay down a general

1163     obligation bond issued under this Subsection (7) from the money collected from the impact fee
1164     or other fee.
1165          (ii) A property owner district that proportionally pays down a general obligation bond
1166     under Subsection (7)(i)(i) shall reduce the property tax rate on the parcel of real property on
1167     which the district charged and collected an impact fee or other charge, to reflect the amount of
1168     outstanding principal of a general obligation bond issued under this Subsection (7) that was
1169     paid down and is attributable to that parcel.
1170          (j) If a property owner fails to pay a property tax that the property owner district
1171     imposes in connection with a general obligation bond issued under this Subsection (7), the
1172     district may impose a property tax penalty at an annual rate of .07, in addition to any other
1173     penalty allowed by law.
1174          Section 13. Section 17B-2a-1202 is amended to read:
1175          17B-2a-1202. Definitions.
1176          As used in this part:
1177          (1) "Board" means the board of trustees of a public infrastructure district.
1178          (2) "Creating entity" means the county, municipality, or development authority that
1179     approves the creation of the public infrastructure district.
1180          (3) "Development authority" means:
1181          (a) the Utah Inland Port Authority created in Section 11-58-201; or
1182          (b) the military installation development authority created in Section 63H-1-201.
1183          (4) "District applicant" means the person proposing the creation of the public
1184     infrastructure district.
1185          (5) "Division" means a division of a public infrastructure district:
1186          (a) that is relatively equal in number of eligible voters or potential eligible voters to all
1187     other divisions within the public infrastructure district, taking into account existing or potential
1188     developments which, when completed, would increase or decrease the population within the
1189     public infrastructure district; and

1190          (b) which a member of the board represents.
1191          (6) "Governing document" means the document governing the public infrastructure
1192     district to which the creating entity agrees before the creation of the public infrastructure
1193     district, as amended from time to time, and subject to the limitations of Chapter 1, Provisions
1194     Applicable to All Local Districts, and this part.
1195          (7) (a) "Limited tax bond" means a bond:
1196          (i) that is directly payable from and secured by ad valorem property taxes that are
1197     levied:
1198          (A) by the public infrastructure district that issues the bond; and
1199          (B) on taxable property within the district;
1200          (ii) that is a general obligation of the public infrastructure district; and
1201          (iii) for which the ad valorem property tax levy for repayment of the bond does not
1202     exceed the property tax levy rate limit established under Section 17B-2a-1209 for any fiscal
1203     year, except as provided in Subsection 17B-2a-1207(8).
1204          (b) "Limited tax bond" does not include:
1205          (i) a short-term bond;
1206          (ii) a tax and revenue anticipation bond; or
1207          (iii) a special assessment bond.
1208          (8) "Public infrastructure and improvements" means:
1209          (a) publicly owned infrastructure and improvements, as defined in Section 11-58-102,
1210     for a public infrastructure district created by the Utah Inland Port Authority created in Section
1211     11-58-201; and
1212          (b) the same as that term is defined in Section 63H-1-102, for a public infrastructure
1213     district created by the military installation development authority created in Section 63H-1-201.
1214          Section 14. Section 17B-2a-1205 is amended to read:
1215          17B-2a-1205. Public infrastructure district board -- Governing document.
1216          (1) The legislative body or board of the creating entity shall appoint the members of the

1217     board, in accordance with the governing document.
1218          (2) (a) Unless otherwise limited in the governing document and except as provided in
1219     Subsection (2)(b), the initial term of each member of the board is four years.
1220          (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
1221     board shall serve a six-year term so that, after the expiration of the initial term, the term of
1222     approximately half the board members expires every two years.
1223          (c) A board may elect that a majority of the board serve an initial term of six years.
1224          (d) After the initial term, the term of each member of the board is four years.
1225          (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required
1226     to be a resident within the boundaries of the public infrastructure district if:
1227          (i) all of the surface property owners consent to the waiver of the residency
1228     requirement;
1229          (ii) there are no residents within the boundaries of the public infrastructure district;
1230          (iii) no qualified candidate timely files to be considered for appointment to the board;
1231     or
1232          (iv) no qualified individual files a declaration of candidacy for a board position in
1233     accordance with Subsection 17B-1-306[(4)](5).
1234          (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
1235     residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member
1236     elected for a division or board position that has transitioned from an appointed to an elected
1237     board member in accordance with this section.
1238          (c) An individual who is not a resident within the boundaries of the public
1239     infrastructure district may not serve as a board member unless the individual is:
1240          (i) an owner of land or an agent or officer of the owner of land within the boundaries of
1241     the public infrastructure district; and
1242          (ii) a registered voter at the individual's primary residence.
1243          (4) (a) A governing document may provide for a transition from legislative body

1244     appointment under Subsection (1) to a method of election by registered voters based upon
1245     milestones or events that the governing document identifies, including a milestone for each
1246     division or individual board position providing that when the milestone is reached:
1247          (i) for a division, the registered voters of the division elect a member of the board in
1248     place of an appointed member at the next municipal general election for the board position; or
1249          (ii) for an at large board position established in the governing document, the registered
1250     voters of the public infrastructure district elect a member of the board in place of an appointed
1251     member at the next municipal general election for the board position.
1252          (b) Regardless of whether a board member is elected under Subsection (4)(a), the
1253     position of each remaining board member shall continue to be appointed under Subsection (1)
1254     until the member's respective division or board position surpasses the density milestone
1255     described in the governing document.
1256          (5) (a) Subject to Subsection (5)(c), the board may, in the board's discretion but no
1257     more frequently than every four years, reestablish the boundaries of each division so that each
1258     division that has reached a milestone specified in the governing document, as described in
1259     Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.
1260          (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
1261     consider existing or potential developments within the divisions which, when completed,
1262     would increase or decrease the number of eligible voters within the division.
1263          (c) The governing document may prohibit the board from reestablishing, without the
1264     consent of the creating entity, the division boundaries as described in Subsection (5)(a).
1265          (6) The public infrastructure district may not compensate a board member for the
1266     member's service on the board under Section 17B-1-307 unless the board member is a resident
1267     within the boundaries of the public infrastructure district.
1268          (7) The governing document shall:
1269          (a) include a boundary description and a map of the public infrastructure district;
1270          (b) state the number of board members;

1271          (c) describe any divisions of the public infrastructure district;
1272          (d) establish any applicable property tax levy rate limit for the public infrastructure
1273     district;
1274          (e) establish any applicable limitation on the principal amount of indebtedness for the
1275     public infrastructure district; and
1276          (f) include other information that the public infrastructure district or the creating entity
1277     determines to be necessary or advisable.
1278          (8) (a) Except as provided in Subsection (8)(b), the board and the governing body of
1279     the creating entity may amend a governing document by each adopting a resolution that
1280     approves the amended governing document.
1281          (b) Notwithstanding Subsection (8)(a), any amendment to a property tax levy rate
1282     limitation requires the consent of:
1283          (i) 100% of surface property owners within the boundaries of the public infrastructure
1284     district; and
1285          (ii) 100% of the registered voters, if any, within the boundaries of the public
1286     infrastructure district.
1287          (9) A board member is not in violation of Section 67-16-9 if the board member:
1288          (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
1289     and files the disclosure with the creating entity:
1290          (i) before any appointment or election; and
1291          (ii) upon any significant change in the business relationship; and
1292          (b) conducts the affairs of the public infrastructure district in accordance with this title
1293     and any parameters described in the governing document.
1294          (10) Notwithstanding any other provision of this section, the governing document
1295     governs the number, appointment, and terms of board members of a public infrastructure
1296     district created by the development authority.
1297          Section 15. Section 17B-2a-1206 is amended to read:

1298          17B-2a-1206. Additional public infrastructure district powers.
1299          In addition to the powers conferred on a public infrastructure district under Section
1300     17B-1-103, a public infrastructure district may:
1301          (1) issue negotiable bonds to pay:
1302          (a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
1303     any of the improvements, facilities, or property allowed under Section 11-14-103;
1304          (b) capital costs of improvements in an energy assessment area, as defined in Section
1305     11-42a-102, and other related costs, against the funds that the public infrastructure district will
1306     receive because of an assessment in an energy assessment area, as defined in Section
1307     11-42a-102;
1308          (c) public improvements related to the provision of housing;
1309          (d) capital costs related to public transportation; and
1310          (e) for a public infrastructure district created by [the] a development authority, the cost
1311     of acquiring or financing [publicly owned] public infrastructure and improvements;
1312          (2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
1313     Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
1314     of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
1315     Cooperation Act, without the consent of the creating entity;
1316          (3) acquire completed or partially completed improvements for fair market value as
1317     reasonably determined by:
1318          (a) the board;
1319          (b) the creating entity, if required in the governing document; or
1320          (c) a surveyor or engineer that a public infrastructure district employs or engages to
1321     perform the necessary engineering services for and to supervise the construction or installation
1322     of the improvements;
1323          (4) contract with the creating entity for the creating entity to provide administrative
1324     services on behalf of the public infrastructure district, when agreed to by both parties, in order

1325     to achieve cost savings and economic efficiencies, at the discretion of the creating entity; and
1326          (5) for a public infrastructure district created by a development authority:
1327          (a) (i) operate and maintain [publicly owned] public infrastructure and improvements
1328     the district acquires or finances; and
1329          (ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
1330     [publicly owned] public infrastructure and improvements; and
1331          (b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
1332          Section 16. Section 63A-3-401.5 is enacted to read:
1333     
Part 4. Infrastructure Revolving Loan Funds

1334          63A-3-401.5. Definitions.
1335          As used in this part:
1336          (1) "Borrower" means a person who borrows money from an infrastructure fund for an
1337     infrastructure project.
1338          (2) "Independent political subdivision" means:
1339          (a) the Utah Inland Port Authority created in Section 11-58-201;
1340          (b) the Point of the Mountain State Land Authority created in Section 11-59-201; or
1341          (c) the Military Installation Development Authority created in Section 63H-1-201.
1342          (3) "Infrastructure fund" means a fund created in Subsection 63A-3-402(1).
1343          (4) "Infrastructure loan" means a loan of infrastructure fund money to finance an
1344     infrastructure project.
1345          (5) "Infrastructure project" means a project to acquire, construct, reconstruct,
1346     rehabilitate, equip, or improve public infrastructure and improvements:
1347          (a) within a project area; or
1348          (b) outside a project area, if the respective loan approval committee determines by
1349     resolution that the public infrastructure and improvements are of benefit to the project area.
1350          (6) "Inland port" means the same as that term is defined in Section 11-58-102.
1351          (7) "Inland port fund" means the infrastructure fund created in Subsection

1352     63A-3-402(1)(a).
1353          (8) "Military development fund" means the infrastructure fund created in Subsection
1354     63A-3-402(1)(c).
1355          (9) "Point of the mountain fund" means the infrastructure fund created in Subsection
1356     63A-3-402(1)(b).
1357          (10) "Project area" means:
1358          (a) the same as that term is defined in Section 11-58-102, for purposes of an
1359     infrastructure loan from the inland port fund;
1360          (b) the point of the mountain state land, as defined in Section 11-59-102, for purposes
1361     of an infrastructure loan from the point of the mountain fund; and
1362          (c) the same as that term is defined in Section 63H-1-102, for purposes of an
1363     infrastructure loan from the military development fund.
1364          (11) "Property tax revenue" means:
1365          (a) property tax differential, as defined in Section 11-58-102, for purposes of an
1366     infrastructure loan from the inland port fund; or
1367          (b) property tax allocation, as defined in Section 63H-1-102, for purposes of an
1368     infrastructure loan from the military development fund.
1369          (12) "Public infrastructure and improvements":
1370          (a) for purposes of an infrastructure loan from the inland port fund:
1371          (i) means publicly owned infrastructure and improvements, as defined in Section
1372     11-58-102; and
1373          (ii) includes an inland port facility; and
1374          (b) means the same as that term is defined in Section 63H-1-102, for purposes of an
1375     infrastructure loan from the military development fund.
1376          (13) "Respective loan approval committee" means:
1377          (a) the committee created in Section 11-58-106, for purposes of an infrastructure loan
1378     from the inland port fund;

1379          (b) the committee created in Section 11-59-104, for purposes of an infrastructure loan
1380     from the point of the mountain fund; and
1381          (c) the committee created in Section 63H-1-104, for purposes of an infrastructure loan
1382     from the military development fund.
1383          Section 17. Section 63A-3-402 is enacted to read:
1384          63A-3-402. Infrastructure funds established -- Purpose of funds -- Use of money
1385     in funds.
1386          (1) There are created, as enterprise revolving loan funds:
1387          (a) the inland port infrastructure revolving loan fund;
1388          (b) the point of the mountain infrastructure revolving loan fund; and
1389          (c) the military development infrastructure revolving loan fund.
1390          (2) The purpose of each infrastructure fund is to provide funding, through
1391     infrastructure loans, for infrastructure projects undertaken by a borrower.
1392          (3) (a) Money in an infrastructure fund may be used only to provide loans for
1393     infrastructure projects.
1394          (b) The division may not loan money in an infrastructure fund without the approval of
1395     the respective loan approval committee.
1396          Section 18. Section 63A-3-403 is enacted to read:
1397          63A-3-403. Money in infrastructure funds.
1398          (1) Money in each of the infrastructure funds shall be kept separate and accounted for
1399     separately from money in the other infrastructure funds.
1400          (2) Each infrastructure fund includes money:
1401          (a) appropriated to that fund by the Legislature;
1402          (b) transferred to the fund from the State Infrastructure Bank Fund created in Section
1403     72-2-202, if applicable;
1404          (c) from federal, state, or other public grants or contributions;
1405          (d) that an independent political subdivision transfers to the fund from other money

1406     available to the independent political subdivision;
1407          (e) contributed or granted to the infrastructure fund from a private source; and
1408          (f) collected from repayments of loans of infrastructure fund money.
1409          (3) In addition to money identified in Subsection (2), the military development fund
1410     includes money repaid after May 5, 2021 from a loan under Subsection 63B-27-101(3)(a).
1411          (4) (a) Each infrastructure fund shall earn interest.
1412          (b) All interest earned on infrastructure fund money shall be deposited into the
1413     respective infrastructure fund and included in the money of the infrastructure fund available to
1414     be loaned.
1415          (5) The state treasurer shall invest infrastructure fund money as provided in Title 51,
1416     Chapter 7, State Money Management Act.
1417          Section 19. Section 63A-3-404 is enacted to read:
1418          63A-3-404. Loan agreement.
1419          (1) (a) A borrower that borrows money from an infrastructure fund shall enter into a
1420     loan agreement with the division for repayment of the money.
1421          (b) (i) A loan agreement under Subsection (1)(a) shall be secured by:
1422          (A) bonds, notes, or another evidence of indebtedness validly issued under state law; or
1423          (B) revenue generated from an infrastructure project.
1424          (ii) The security provided under Subsection (1)(b)(i) may include the borrower's pledge
1425     of some or all of a revenue source that the borrower controls.
1426          (c) The respective loan approval committee may determine that property tax revenue or
1427     revenue from the infrastructure project for which the infrastructure loan is obtained is sufficient
1428     security for an infrastructure loan.
1429          (2) An infrastructure loan shall bear interest at a rate not to exceed .5% above bond
1430     market interest rates available to the state.
1431          (3) (a) Subject to Subsection (3)(b), the respective loan approval committee shall
1432     determine the length of term of an infrastructure loan.

1433          (b) If the security for an infrastructure loan is property tax revenue, the repayment
1434     terms of the infrastructure loan agreement shall allow sufficient time for the property tax
1435     revenue to generate sufficient money to cover payments under the infrastructure loan.
1436          (4) An infrastructure loan agreement may provide for a portion of the loan proceeds to
1437     be applied to a reserve fund to secure repayment of the infrastructure loan.
1438          (5) (a) If a borrower fails to comply with the terms of an infrastructure loan agreement,
1439     the division may:
1440          (i) seek any legal or equitable remedy to obtain:
1441          (A) compliance with the agreement; or
1442          (B) the payment of damages; and
1443          (ii) request a state agency with money due to the borrower to withhold payment of the
1444     money to the borrower and instead to pay the money to the division to pay any amount due
1445     under the infrastructure loan agreement.
1446          (b) A state agency that receives a request from the division under Subsection (5)(a)(ii)
1447     shall pay to the division the money due to the borrower to the extent of the amount due under
1448     the infrastructure loan agreement.
1449          (6) Upon approval from the respective loan approval committee, the division shall loan
1450     money from an infrastructure fund according to the terms established by the respective loan
1451     approval committee.
1452          (7) (a) The division shall administer and enforce an infrastructure loan according to the
1453     terms of the infrastructure loan agreement.
1454          (b) (i) Beginning May 5, 2021, the division shall assume responsibility from the State
1455     Infrastructure Bank Fund for servicing the loan under Subsection 63B-27-101(3)(a).
1456          (ii) Payments due after May 5, 2021 under the loan under Subsection 63B-27-101(3)(a)
1457     shall be made to the division rather than to the State Infrastructure Bank Fund, to be deposited
1458     into the military development fund.
1459          Section 20. Section 63H-1-102 is amended to read:

1460          63H-1-102. Definitions.
1461          As used in this chapter:
1462          (1) "Authority" means the Military Installation Development Authority, created under
1463     Section 63H-1-201.
1464          (2) "Base taxable value" means:
1465          (a) for military land or other land that was exempt from a property tax at the time that a
1466     project area was created that included the military land or other land, a taxable value of zero; or
1467          (b) for private property that is included in a project area, the taxable value of the
1468     property within any portion of the project area, as designated by board resolution, from which
1469     the property tax allocation will be collected, as shown upon the assessment roll last equalized:
1470          (i) before the year in which the authority creates the project area; or
1471          (ii) before the year in which the project area plan is amended, for property added to a
1472     project area by an amendment to a project area plan.
1473          (3) "Board" means the governing body of the authority created under Section
1474     63H-1-301.
1475          (4) (a) "Dedicated tax collections" means the property tax that remains after the
1476     authority is paid the property tax allocation the authority is entitled to receive under Subsection
1477     63H-1-501(1), for a property tax levied by:
1478          (i) a county, including a district the county has established under Subsection 17-34-3(2)
1479     to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
1480     Areas; or
1481          (ii) an included municipality.
1482          (b) "Dedicated tax collections" does not include a county additional property tax or
1483     multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602.
1484          (5) (a) "Development" means an activity occurring:
1485          (i) on land within a project area that is owned or operated by the military, the authority,
1486     another public entity, or a private entity; or

1487          (ii) on military land associated with a project area.
1488          (b) "Development" includes the demolition, construction, reconstruction, modification,
1489     expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
1490     recreational amenity.
1491          (6) "Development project" means a project to develop land within a project area.
1492          (7) "Elected member" means a member of the authority board who:
1493          (a) is a mayor or member of a legislative body appointed under Subsection
1494     63H-1-302(2)(b); or
1495          (b) (i) is appointed to the authority board under Subsection 63H-1-302(2)(a) or (3); and
1496          (ii) concurrently serves in an elected state, county, or municipal office.
1497          (8) "Included municipality" means a municipality, some or all of which is included
1498     within a project area.
1499          (9) (a) "Military" means a branch of the armed forces of the United States, including
1500     the Utah National Guard.
1501          (b) "Military" includes, in relation to property, property that is occupied by the military
1502     and is owned by the government of the United States or the state.
1503          (10) "Military Installation Development Authority accommodations tax" or "MIDA
1504     accommodations tax" means the tax imposed under Section 63H-1-205.
1505          (11) "Military Installation Development Authority energy tax" or "MIDA energy tax"
1506     means the tax levied under Section 63H-1-204.
1507          (12) "Military land" means land or a facility, including leased land or a leased facility,
1508     that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
1509     jurisdiction of the United States Department of Defense, the United States Department of
1510     Veterans Affairs, or the Utah National Guard.
1511          (13) "Municipal energy tax" means a municipal energy sales and use tax under Title
1512     10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
1513          (14) "Municipal services revenue" means revenue that the authority:

1514          (a) collects from the authority's:
1515          (i) levy of a municipal energy tax;
1516          (ii) levy of a MIDA energy tax;
1517          (iii) levy of a telecommunications tax;
1518          (iv) imposition of a transient room tax; and
1519          (v) imposition of a resort communities tax;
1520          (b) receives under Subsection 59-12-205(2)(b)(ii); and
1521          (c) receives as dedicated tax collections.
1522          (15) "Municipal tax" means a municipal energy tax, MIDA energy tax, MIDA
1523     accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
1524          (16) "Project area" means the land, including military land, whether consisting of a
1525     single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
1526     project area plan, where the development project set forth in the project area plan or draft
1527     project area plan takes place or is proposed to take place.
1528          (17) "Project area budget" means a multiyear projection of annual or cumulative
1529     revenues and expenses and other fiscal matters pertaining to a project area that includes:
1530          (a) the base taxable value of property in the project area;
1531          (b) the projected property tax allocation expected to be generated within the project
1532     area;
1533          (c) the amount of the property tax allocation expected to be shared with other taxing
1534     entities;
1535          (d) the amount of the property tax allocation expected to be used to implement the
1536     project area plan, including the estimated amount of the property tax allocation to be used for
1537     land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
1538     incentives to private and public entities;
1539          (e) the property tax allocation expected to be used to cover the cost of administering
1540     the project area plan;

1541          (f) if the property tax allocation is to be collected at different times or from different
1542     portions of the project area, or both:
1543          (i) (A) the tax identification numbers of the parcels from which the property tax
1544     allocation will be collected; or
1545          (B) a legal description of the portion of the project area from which the property tax
1546     allocation will be collected; and
1547          (ii) an estimate of when other portions of the project area will become subject to
1548     collection of the property tax allocation; and
1549          (g) for property that the authority owns or leases and expects to sell or sublease, the
1550     expected total cost of the property to the authority and the expected selling price or lease
1551     payments.
1552          (18) "Project area plan" means a written plan that, after the plan's effective date, guides
1553     and controls the development within a project area.
1554          (19) (a) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4,
1555     Privilege Tax, except as described in Subsection (19)(b), and each levy on an ad valorem basis
1556     on tangible or intangible personal or real property.
1557          (b) "Property tax" does not include a privilege tax on the taxable value:
1558          (i) attributable to a portion of a facility leased to the military for a calendar year when:
1559          (A) a lessee of military land has constructed a facility on the military land that is part of
1560     a project area;
1561          (B) the lessee leases space in the facility to the military for the entire calendar year; and
1562          (C) the lease rate paid by the military for the space is $1 or less for the entire calendar
1563     year, not including any common charges that are reimbursements for actual expenses; or
1564          (ii) of the following property owned by the authority, regardless of whether the
1565     authority enters into a long-term operating agreement with a privately owned entity under
1566     which the privately owned entity agrees to operate the property:
1567          (A) a hotel;

1568          (B) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
1569     and
1570          (C) a commercial condominium unit in a condominium project, as defined in Section
1571     57-8-3.
1572          (20) "Property tax allocation" means the difference between:
1573          (a) the amount of property tax revenues generated each tax year by all taxing entities
1574     from the area within a project area designated in the project area plan as the area from which
1575     the property tax allocation is to be collected, using the current assessed value of the property;
1576     and
1577          (b) the amount of property tax revenues that would be generated from that same area
1578     using the base taxable value of the property.
1579          (21) "Public entity" means:
1580          (a) the state, including each department or agency of the state; or
1581          (b) a political subdivision of the state, including a county, city, town, school district,
1582     local district, special service district, or interlocal cooperation entity, including the authority.
1583          (22) (a) ["Publicly owned] "Public infrastructure and improvements" means
1584     infrastructure, improvements, facilities, or buildings that:
1585          (i) benefit the public, the authority, the military, or military-related entities [and are:];
1586     and
1587          [(i)] (ii) (A) are publicly owned by the military, the authority, a public infrastructure
1588     district under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act, or another
1589     public entity;
1590          [(ii)] (B) are owned by a utility; or
1591          [(iii)] (C) are publicly maintained or operated by the military, the authority, or another
1592     public entity.
1593          (b) "Public infrastructure and improvements" also means infrastructure, improvements,
1594     facilities, or buildings that:

1595          (i) are privately owned; and
1596          (ii) provide a substantial benefit, as determined by the board, to the development and
1597     operation of a project area.
1598          [(b)] (c) ["Publicly owned] "Public infrastructure and improvements" includes:
1599          (i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
1600     water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications;
1601          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
1602     facilities, public transportation facilities, and parks, trails, and other recreational facilities;
1603          (iii) snowmaking equipment and related improvements that can also be used for water
1604     storage or fire suppression purposes; and
1605          (iv) a building and related improvements for occupancy by the public, the authority, the
1606     military, or military-related entities.
1607          (23) "Remaining municipal services revenue" means municipal services revenue that
1608     the authority has not:
1609          (a) spent during the authority's fiscal year for municipal services as provided in
1610     Subsection 63H-1-503(1); or
1611          (b) redirected to use in accordance with Subsection 63H-1-502(3).
1612          (24) "Resort communities tax" means a sales and use tax imposed under Section
1613     59-12-401.
1614          (25) "Taxable value" means the value of property as shown on the last equalized
1615     assessment roll.
1616          (26) "Taxing entity":
1617          (a) means a public entity that levies a tax on property within a project area; and
1618          (b) does not include a public infrastructure district that the authority creates under Title
1619     17B, Chapter 2a, Part 12, Public Infrastructure District Act.
1620          (27) "Telecommunications tax" means a telecommunications license tax under Title
1621     10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.

1622          (28) "Transient room tax" means a tax under Section 59-12-352.
1623          Section 21. Section 63H-1-104 is enacted to read:
1624          63H-1-104. Loan approval committee -- Approval of infrastructure loans.
1625          (1) As used in this section:
1626          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
1627          (b) "Infrastructure loan" means the same as that term is defined in Section
1628     63A-3-401.5.
1629          (c) "Infrastructure project" means the same as that term is defined in Section
1630     63A-3-401.5.
1631          (d) "Military development fund" means the same as that term is defined in Section
1632     63A-3-401.5.
1633          (e) "Loan approval committee" means a committee consisting of:
1634          (i) the board member who is appointed by the governor under Subsection
1635     63H-1-302(2)(a);
1636          (ii) the board member who is appointed by the governor under Subsection
1637     63H-1-302(2)(c);
1638          (iii) the board members who are appointed by the president of the Senate and the
1639     speaker of the House of Representatives under Subsection 63H-1-302(3); and
1640          (iv) a voting or nonvoting board member designated by the board.
1641          (2) The loan approval committee may approve an infrastructure loan from the military
1642     development fund to a borrower for an infrastructure project undertaken by the borrower.
1643          (3) The loan approval committee shall establish the terms of an infrastructure loan in
1644     accordance with Section 63A-3-404.
1645          (4) The loan approval committee may establish policies and guidelines with respect to
1646     prioritizing requests for infrastructure loans and approving infrastructure loans.
1647          (5) Beginning May 5, 2021, the loan approval committee shall assume jurisdiction
1648     from the State Infrastructure Bank Fund relating to the terms of a loan under Subsection

1649     63B-27-101(3)(a).
1650          (6) Within 60 days after the execution of an infrastructure loan, the loan approval
1651     committee shall report the infrastructure loan, including the loan amount, terms, and security,
1652     to the Executive Appropriations Committee.
1653          (7) (a) A meeting of the loan approval committee does not constitute a meeting of the
1654     board, even if a quorum of the board is present at a loan approval committee meeting.
1655          (b) A quorum of board members present at a meeting of the loan approval committee
1656     may not conduct board business at the loan approval committee meeting.
1657          (8) (a) Salaries and expenses of committee members who are legislators shall be paid
1658     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
1659     Compensation.
1660          (b) A committee member who is not a legislator may not receive compensation or
1661     benefits for the member's service on the committee, but may receive per diem and
1662     reimbursement for travel expenses incurred as a committee member at the rates established by
1663     the Division of Finance under:
1664          (i) Sections 63A-3-106 and 63A-3-107; and
1665          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1666     63A-3-107.