Representative James A. Dunnigan proposes the following substitute bill:


1     
INFRASTRUCTURE FINANCING DISTRICTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: James A. Dunnigan

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill enacts and modifies provisions related to infrastructure financing districts.
10     Highlighted Provisions:
11          This bill:
12          ▸     authorizes the creation of a type of special district for the purpose of financing
13     infrastructure;
14          ▸     provides a process for the creation of an infrastructure financing district;
15          ▸     provides for the powers and governance of an infrastructure financing district;
16          ▸     authorizes an infrastructure financing district to impose an assessment on property
17     within the district and to issue assessment bonds to finance infrastructure within the
18     district;
19          ▸     provides for the district to have bonding authority, with limitations;
20          ▸     authorizes the district to levy a property tax;
21          ▸     requires a district to provide proof to a county or municipality that an assessment
22     bond has been paid in full on owner-occupied residential property before the county
23     or municipality may issue a certificate of occupancy;
24          ▸     provides for the annexation of an area to an infrastructure financing district, the
25     withdrawal of an area from a district, and for dissolution of a district;

26          ▸     authorizes sponsors of a petition to create an infrastructure financing district to
27     create a governing document with provisions that govern the district, including
28     providing for board membership and the transition from appointed board positions
29     to elected board positions; and
30          ▸     makes technical and conforming changes.
31     Money Appropriated in this Bill:
32          None
33     Other Special Clauses:
34          None
35     Utah Code Sections Affected:
36     AMENDS:
37          10-9a-509, as last amended by Laws of Utah 2023, Chapter 478
38          11-42-102, as last amended by Laws of Utah 2023, Chapter 16
39          11-42-106, as last amended by Laws of Utah 2021, Chapters 314, 415
40          11-42-201, as last amended by Laws of Utah 2021, Chapter 314
41          11-42-202, as last amended by Laws of Utah 2023, Chapter 435
42          11-42-411, as last amended by Laws of Utah 2021, Chapters 314, 415
43          17-27a-508, as last amended by Laws of Utah 2023, Chapter 478
44          17B-1-102, as last amended by Laws of Utah 2023, Chapter 15
45          17B-1-103, as last amended by Laws of Utah 2023, Chapter 15
46          17B-1-105, as last amended by Laws of Utah 2023, Chapter 15
47          17B-1-201, as last amended by Laws of Utah 2023, Chapter 15
48          17B-1-202, as last amended by Laws of Utah 2023, Chapter 15
49          17B-1-203, as last amended by Laws of Utah 2023, Chapter 15
50          17B-1-204, as last amended by Laws of Utah 2023, Chapter 15
51          17B-1-205, as last amended by Laws of Utah 2023, Chapters 15, 116
52          17B-1-208, as last amended by Laws of Utah 2023, Chapter 15
53          17B-1-209, as last amended by Laws of Utah 2023, Chapters 15, 116
54          17B-1-210, as last amended by Laws of Utah 2023, Chapter 15
55          17B-1-211, as last amended by Laws of Utah 2023, Chapters 15, 435
56          17B-1-213, as last amended by Laws of Utah 2023, Chapter 15

57          17B-1-214, as last amended by Laws of Utah 2023, Chapter 15
58          17B-1-215, as last amended by Laws of Utah 2023, Chapter 15
59          17B-1-216, as last amended by Laws of Utah 2023, Chapter 15
60          17B-1-302, as last amended by Laws of Utah 2023, Chapters 15, 100
61          17B-1-303, as last amended by Laws of Utah 2023, Chapter 15
62          17B-1-306.5, as last amended by Laws of Utah 2023, Chapter 15
63          17B-1-403, as last amended by Laws of Utah 2023, Chapter 15
64          17B-1-404, as last amended by Laws of Utah 2023, Chapter 15
65          17B-1-405, as last amended by Laws of Utah 2023, Chapter 15
66          17B-1-406, as last amended by Laws of Utah 2023, Chapter 15
67          17B-1-407, as last amended by Laws of Utah 2023, Chapter 15
68          17B-1-408, as last amended by Laws of Utah 2023, Chapter 15
69          17B-1-409, as last amended by Laws of Utah 2023, Chapter 15
70          17B-1-411, as last amended by Laws of Utah 2023, Chapter 15
71          17B-1-413, as last amended by Laws of Utah 2023, Chapters 15, 435
72          17B-1-414, as last amended by Laws of Utah 2023, Chapter 15
73          17B-1-504, as last amended by Laws of Utah 2023, Chapter 15
74          17B-1-506, as last amended by Laws of Utah 2023, Chapters 15, 116
75          17B-1-511, as last amended by Laws of Utah 2023, Chapter 15
76          17B-1-1001, as last amended by Laws of Utah 2023, Chapter 15
77          17B-1-1002, as last amended by Laws of Utah 2023, Chapter 15
78          17B-1-1302, as last amended by Laws of Utah 2023, Chapter 15
79          17B-1-1303, as last amended by Laws of Utah 2023, Chapter 15
80          17B-1-1310, as last amended by Laws of Utah 2023, Chapter 15
81          17B-1-1402, as last amended by Laws of Utah 2023, Chapter 15
82          17B-2a-404, as last amended by Laws of Utah 2018, Chapter 112
83          17B-2a-405, as last amended by Laws of Utah 2017, Chapter 112
84          17B-2a-407, as enacted by Laws of Utah 2023, Chapter 15 and further amended by
85     Revisor Instructions, Laws of Utah 2023, Chapter 16
86          17B-2a-604, as last amended by Laws of Utah 2018, Chapter 112
87          17B-2a-704, as last amended by Laws of Utah 2019, Chapter 40

88          17B-2a-905, as last amended by Laws of Utah 2019, Chapter 108
89          20A-1-512, as last amended by Laws of Utah 2023, Chapters 15, 435
90          52-4-207, as last amended by Laws of Utah 2023, Chapter 100
91          67-1a-6.5, as last amended by Laws of Utah 2023, Chapter 16
92     ENACTS:
93          17B-1-219, Utah Code Annotated 1953
94          17B-1-405.5, Utah Code Annotated 1953
95          17B-2a-1301, Utah Code Annotated 1953
96          17B-2a-1302, Utah Code Annotated 1953
97          17B-2a-1303, Utah Code Annotated 1953
98          17B-2a-1304, Utah Code Annotated 1953
99          17B-2a-1305, Utah Code Annotated 1953
100          17B-2a-1306, Utah Code Annotated 1953
101          17B-2a-1307, Utah Code Annotated 1953
102     

103     Be it enacted by the Legislature of the state of Utah:
104          Section 1. Section 10-9a-509 is amended to read:
105          10-9a-509. Applicant's entitlement to land use application approval --
106     Municipality's requirements and limitations -- Vesting upon submission of development
107     plan and schedule.
108          (1) (a) (i) An applicant who has submitted a complete land use application as described
109     in Subsection (1)(c), including the payment of all application fees, is entitled to substantive
110     review of the application under the land use regulations:
111          (A) in effect on the date that the application is complete; and
112          (B) applicable to the application or to the information shown on the application.
113          (ii) An applicant is entitled to approval of a land use application if the application
114     conforms to the requirements of the applicable land use regulations, land use decisions, and
115     development standards in effect when the applicant submits a complete application and pays
116     application fees, unless:
117          (A) the land use authority, on the record, formally finds that a compelling,
118     countervailing public interest would be jeopardized by approving the application and specifies

119     the compelling, countervailing public interest in writing; or
120          (B) in the manner provided by local ordinance and before the applicant submits the
121     application, the municipality formally initiates proceedings to amend the municipality's land
122     use regulations in a manner that would prohibit approval of the application as submitted.
123          (b) The municipality shall process an application without regard to proceedings the
124     municipality initiated to amend the municipality's ordinances as described in Subsection
125     (1)(a)(ii)(B) if:
126          (i) 180 days have passed since the municipality initiated the proceedings; and
127          (ii) (A) the proceedings have not resulted in an enactment that prohibits approval of the
128     application as submitted; or
129          (B) during the 12 months prior to the municipality processing the application, or
130     multiple applications of the same type, are impaired or prohibited under the terms of a
131     temporary land use regulation adopted under Section 10-9a-504.
132          (c) A land use application is considered submitted and complete when the applicant
133     provides the application in a form that complies with the requirements of applicable ordinances
134     and pays all applicable fees.
135          (d) A subsequent incorporation of a municipality or a petition that proposes the
136     incorporation of a municipality does not affect a land use application approved by a county in
137     accordance with Section 17-27a-508.
138          (e) The continuing validity of an approval of a land use application is conditioned upon
139     the applicant proceeding after approval to implement the approval with reasonable diligence.
140          (f) A municipality may not impose on an applicant who has submitted a complete
141     application a requirement that is not expressed in:
142          (i) this chapter;
143          (ii) a municipal ordinance in effect on the date that the applicant submits a complete
144     application, subject to Subsection 10-9a-509(1)(a)(ii); or
145          (iii) a municipal specification for public improvements applicable to a subdivision or
146     development that is in effect on the date that the applicant submits an application.
147          (g) A municipality may not impose on a holder of an issued land use permit or a final,
148     unexpired subdivision plat a requirement that is not expressed:
149          (i) in a land use permit;

150          (ii) on the subdivision plat;
151          (iii) in a document on which the land use permit or subdivision plat is based;
152          (iv) in the written record evidencing approval of the land use permit or subdivision
153     plat;
154          (v) in this chapter;
155          (vi) in a municipal ordinance; or
156          (vii) in a municipal specification for residential roadways in effect at the time a
157     residential subdivision was approved.
158          (h) Except as provided in Subsection (1)(i) or (j), a municipality may not withhold
159     issuance of a certificate of occupancy or acceptance of subdivision improvements because of an
160     applicant's failure to comply with a requirement that is not expressed:
161          (i) in the building permit or subdivision plat, documents on which the building permit
162     or subdivision plat is based, or the written record evidencing approval of the land use permit or
163     subdivision plat; or
164          (ii) in this chapter or the municipality's ordinances.
165          (i) A municipality may not unreasonably withhold issuance of a certificate of
166     occupancy where an applicant has met all requirements essential for the public health, public
167     safety, and general welfare of the occupants, in accordance with this chapter, unless:
168          (i) the applicant and the municipality have agreed in a written document to the
169     withholding of a certificate of occupancy; or
170          (ii) the applicant has not provided a financial assurance for required and uncompleted
171     public landscaping improvements or infrastructure improvements in accordance with an
172     applicable ordinance that the legislative body adopts under this chapter.
173          (j) A municipality may not conduct a final inspection required before issuing a
174     certificate of occupancy for a residential unit that is within the boundary of an infrastructure
175     financing district, as defined in Section 17B-1-102, until the applicant for the certificate of
176     occupancy provides adequate proof to the municipality that any lien on the unit arising from the
177     infrastructure financing district's assessment against the unit under Title 11, Chapter 42,
178     Assessment Area Act, has been released after payment in full of the infrastructure financing
179     district's assessment against that unit.
180          (2) A municipality is bound by the terms and standards of applicable land use

181     regulations and shall comply with mandatory provisions of those regulations.
182          (3) A municipality may not, as a condition of land use application approval, require a
183     person filing a land use application to obtain documentation regarding a school district's
184     willingness, capacity, or ability to serve the development proposed in the land use application.
185          (4) Upon a specified public agency's submission of a development plan and schedule as
186     required in Subsection 10-9a-305(8) that complies with the requirements of that subsection, the
187     specified public agency vests in the municipality's applicable land use maps, zoning map,
188     hookup fees, impact fees, other applicable development fees, and land use regulations in effect
189     on the date of submission.
190          (5) (a) If sponsors of a referendum timely challenge a project in accordance with
191     Subsection 20A-7-601(6), the project's affected owner may rescind the project's land use
192     approval by delivering a written notice:
193          (i) to the local clerk as defined in Section 20A-7-101; and
194          (ii) no later than seven days after the day on which a petition for a referendum is
195     determined sufficient under Subsection 20A-7-607(5).
196          (b) Upon delivery of a written notice described in Subsection (5)(a) the following are
197     rescinded and are of no further force or effect:
198          (i) the relevant land use approval; and
199          (ii) any land use regulation enacted specifically in relation to the land use approval.
200          Section 2. Section 11-42-102 is amended to read:
201          11-42-102. Definitions.
202          (1) As used in this chapter:
203          (a) "Adequate protests" means, for all proposed assessment areas except sewer
204     assessment areas, timely filed, written protests under Section 11-42-203 that represent at least
205     40% of the frontage, area, taxable value, fair market value, lots, number of connections, or
206     equivalent residential units of the property proposed to be assessed, according to the same
207     assessment method by which the assessment is proposed to be levied, after eliminating:
208          (i) protests relating to:
209          (A) property that has been deleted from a proposed assessment area; or
210          (B) an improvement that has been deleted from the proposed improvements to be
211     provided to property within the proposed assessment area; and

212          (ii) protests that have been withdrawn under Subsection 11-42-203(3).
213          (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
214     written protests under Section 11-42-203 that represent at least 70% of the frontage, area,
215     taxable value, fair market value, lots, number of connections, or equivalent residential units of
216     the property proposed to be assessed, according to the same assessment method by which the
217     assessment is proposed to be levied, after eliminating adequate protests under Subsection
218     (1)(a).
219          (2) "Assessment area" means an area, or, if more than one area is designated, the
220     aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
221     local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
222     costs of improvements, operation and maintenance, or economic promotion activities that
223     benefit property within the area.
224          (3) "Assessment bonds" means bonds that are:
225          (a) issued under Section 11-42-605; and
226          (b) payable in part or in whole from assessments levied in an assessment area,
227     improvement revenues, and a guaranty fund or reserve fund.
228          (4) "Assessment fund" means a special fund that a local entity establishes under
229     Section 11-42-412.
230          (5) "Assessment lien" means a lien on property within an assessment area that arises
231     from the levy of an assessment, as provided in Section 11-42-501.
232          (6) "Assessment method" means the method:
233          (a) by which an assessment is levied against benefitted property, whether by frontage,
234     area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
235     unit, any combination of these methods, or any other method; and
236          (b) that, when applied to a benefitted property, accounts for an assessment that meets
237     the requirements of Section 11-42-409.
238          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
239     Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
240          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
241     11-42-404 that levies an assessment on benefitted property within an assessment area.
242          (9) "Benefitted property" means property within an assessment area that directly or

243     indirectly benefits from improvements, operation and maintenance, or economic promotion
244     activities.
245          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
246     anticipation of the issuance of assessment bonds.
247          (11) "Bonds" means assessment bonds and refunding assessment bonds.
248          (12) "Commercial area" means an area in which at least 75% of the property is devoted
249     to the interchange of goods or commodities.
250          (13) (a) "Commercial or industrial real property" means real property used directly or
251     indirectly or held for one of the following purposes or activities, regardless of whether the
252     purpose or activity is for profit:
253          (i) commercial;
254          (ii) mining;
255          (iii) industrial;
256          (iv) manufacturing;
257          (v) governmental;
258          (vi) trade;
259          (vii) professional;
260          (viii) a private or public club;
261          (ix) a lodge;
262          (x) a business; or
263          (xi) a similar purpose.
264          (b) "Commercial or industrial real property" includes real property that:
265          (i) is used as or held for dwelling purposes; and
266          (ii) contains more than four rental units.
267          (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
268     connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
269     electrical system, whether or not improvements are installed on the property.
270          (15) "Contract price" means:
271          (a) the cost of acquiring an improvement, if the improvement is acquired; or
272          (b) the amount payable to one or more contractors for the design, engineering,
273     inspection, and construction of an improvement.

274          (16) "Designation ordinance" means an ordinance adopted by a local entity under
275     Section 11-42-206 designating an assessment area.
276          (17) "Designation resolution" means a resolution adopted by a local entity under
277     Section 11-42-206 designating an assessment area.
278          (18) "Development authority" means:
279          (a) the Utah Inland Port Authority created in Section 11-58-201; or
280          (b) the military installation development authority created in Section 63H-1-201.
281          (19) "Economic promotion activities" means activities that promote economic growth
282     in a commercial area of a local entity, including:
283          (a) sponsoring festivals and markets;
284          (b) promoting business investment or activities;
285          (c) helping to coordinate public and private actions; and
286          (d) developing and issuing publications designed to improve the economic well-being
287     of the commercial area.
288          (20) "Environmental remediation activity" means a surface or subsurface enhancement,
289     effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth
290     movement, or change to grade or elevation that improves the use, function, aesthetics, or
291     environmental condition of publicly owned property.
292          (21) "Equivalent residential unit" means a dwelling, unit, or development that is equal
293     to a single-family residence in terms of the nature of its use or impact on an improvement to be
294     provided in the assessment area.
295          (22) "Governing body" means:
296          (a) for a county, city, or town, the legislative body of the county, city, or town;
297          (b) for a special district, the board of trustees of the special district;
298          (c) for a special service district:
299          (i) the legislative body of the county, city, or town that established the special service
300     district, if no administrative control board has been appointed under Section 17D-1-301; or
301          (ii) the administrative control board of the special service district, if an administrative
302     control board has been appointed under Section 17D-1-301;
303          (d) for the military installation development authority created in Section 63H-1-201,
304     the board, as defined in Section 63H-1-102;

305          (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
306     defined in Section 11-58-102; and
307          (f) for a public infrastructure district, the board of the public infrastructure district as
308     defined in Section 17D-4-102.
309          (23) "Guaranty fund" means the fund established by a local entity under Section
310     11-42-701.
311          (24) "Improved property" means property upon which a residential, commercial, or
312     other building has been built.
313          (25) "Improvement":
314          (a) (i) means a publicly owned infrastructure, facility, system, or environmental
315     remediation activity that:
316          (A) a local entity is authorized to provide or finance;
317          (B) the governing body of a local entity determines is necessary or convenient to
318     enable the local entity to provide a service that the local entity is authorized to provide; or
319          (C) a local entity is requested to provide through an interlocal agreement in accordance
320     with Chapter 13, Interlocal Cooperation Act; and
321          (ii) includes facilities in an assessment area, including a private driveway, an irrigation
322     ditch, and a water turnout, that:
323          (A) can be conveniently installed at the same time as an infrastructure, system, or other
324     facility described in Subsection (25)(a)(i); and
325          (B) are requested by a property owner on whose property or for whose benefit the
326     infrastructure, system, or other facility is being installed; or
327          (b) for a special district created to assess groundwater rights in accordance with
328     Section 17B-1-202, means a system or plan to regulate groundwater withdrawals within a
329     specific groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
330          (26) "Improvement revenues":
331          (a) means charges, fees, impact fees, or other revenues that a local entity receives from
332     improvements; and
333          (b) does not include revenue from assessments.
334          (27) "Incidental refunding costs" means any costs of issuing refunding assessment
335     bonds and calling, retiring, or paying prior bonds, including:

336          (a) legal and accounting fees;
337          (b) charges of financial advisors, escrow agents, certified public accountant verification
338     entities, and trustees;
339          (c) underwriting discount costs, printing costs, the costs of giving notice;
340          (d) any premium necessary in the calling or retiring of prior bonds;
341          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
342     refund the outstanding prior bonds;
343          (f) any other costs that the governing body determines are necessary and proper to incur
344     in connection with the issuance of refunding assessment bonds; and
345          (g) any interest on the prior bonds that is required to be paid in connection with the
346     issuance of the refunding assessment bonds.
347          (28) "Installment payment date" means the date on which an installment payment of an
348     assessment is payable.
349          (29) "Interim warrant" means a warrant issued by a local entity under Section
350     11-42-601.
351          (30) "Jurisdictional boundaries" means:
352          (a) for a county, the boundaries of the unincorporated area of the county; and
353          (b) for each other local entity, the boundaries of the local entity.
354          (31) "Local entity" means:
355          (a) a county, city, town, special service district, or special district;
356          (b) an interlocal entity as defined in Section 11-13-103;
357          (c) the military installation development authority, created in Section 63H-1-201;
358          (d) a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
359     District Act, including a public infrastructure district created by a development authority;
360          (e) the Utah Inland Port Authority, created in Section 11-58-201; or
361          (f) any other political subdivision of the state.
362          (32) "Local entity obligations" means assessment bonds, refunding assessment bonds,
363     interim warrants, and bond anticipation notes issued by a local entity.
364          (33) "Mailing address" means:
365          (a) a property owner's last-known address using the name and address appearing on the
366     last completed real property assessment roll of the county in which the property is located; and

367          (b) if the property is improved property:
368          (i) the property's street number; or
369          (ii) the post office box, rural route number, or other mailing address of the property, if
370     a street number has not been assigned.
371          (34) "Net improvement revenues" means all improvement revenues that a local entity
372     has received since the last installment payment date, less all amounts payable by the local entity
373     from those improvement revenues for operation and maintenance costs.
374          (35) "Operation and maintenance costs":
375          (a) means the costs that a local entity incurs in operating and maintaining
376     improvements in an assessment area, whether or not those improvements have been financed
377     under this chapter; and
378          (b) includes service charges, administrative costs, ongoing maintenance charges, and
379     tariffs or other charges for electrical, water, gas, or other utility usage.
380          (36) "Overhead costs" means the actual costs incurred or the estimated costs to be
381     incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing
382     fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying
383     agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
384     all other incidental costs.
385          (37) "Prior assessment ordinance" means the ordinance levying the assessments from
386     which the prior bonds are payable.
387          (38) "Prior assessment resolution" means the resolution levying the assessments from
388     which the prior bonds are payable.
389          (39) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
390     refunding assessment bonds.
391          (40) "Project engineer" means the surveyor or engineer employed by or the private
392     consulting engineer engaged by a local entity to perform the necessary engineering services for
393     and to supervise the construction or installation of the improvements.
394          (41) "Property" includes real property and any interest in real property, including water
395     rights and leasehold rights.
396          (42) "Property price" means the price at which a local entity purchases or acquires by
397     eminent domain property to make improvements in an assessment area.

398          (43) "Provide" or "providing," with reference to an improvement, includes the
399     acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
400     expansion of an improvement.
401          (44) "Public agency" means:
402          (a) the state or any agency, department, or division of the state; and
403          (b) a political subdivision of the state.
404          (45) "Reduced payment obligation" means the full obligation of an owner of property
405     within an assessment area to pay an assessment levied on the property after the assessment has
406     been reduced because of the issuance of refunding assessment bonds, as provided in Section
407     11-42-608.
408          (46) "Refunding assessment bonds" means assessment bonds that a local entity issues
409     under Section 11-42-607 to refund, in part or in whole, assessment bonds.
410          (47) "Reserve fund" means a fund established by a local entity under Section
411     11-42-702.
412          (48) "Service" means:
413          (a) water, sewer, storm drainage, garbage collection, library, recreation,
414     communications, or electric service;
415          (b) economic promotion activities; or
416          (c) any other service that a local entity is required or authorized to provide.
417          (49) (a) "Sewer assessment area" means an assessment area that has as the assessment
418     area's primary purpose the financing and funding of public improvements to provide sewer
419     service where there is, in the opinion of the local board of health, substantial evidence of septic
420     system failure in the defined area due to inadequate soils, high water table, or other factors
421     proven to cause failure.
422          (b) "Sewer assessment area" does not include property otherwise located within the
423     assessment area:
424          (i) on which an approved conventional or advanced wastewater system has been
425     installed during the previous five calendar years;
426          (ii) for which the local health department has inspected the system described in
427     Subsection (49)(b)(i) to ensure that the system is functioning properly; and
428          (iii) for which the property owner opts out of the proposed assessment area for the

429     earlier of a period of 10 calendar years or until failure of the system described in Subsection
430     (49)(b)(i).
431          (50) "Special district" means a special district under Title 17B, Limited Purpose Local
432     Government Entities - Special Districts.
433          (51) "Special service district" means the same as that term is defined in Section
434     17D-1-102.
435          (52) "Unassessed benefitted government property" means property that a local entity
436     may not assess in accordance with Section 11-42-408 but is benefitted by an improvement,
437     operation and maintenance, or economic promotion activities.
438          (53) "Unimproved property" means property upon which no residential, commercial, or
439     other building has been built.
440          (54) "Voluntary assessment area" means an assessment area that contains only property
441     whose owners have voluntarily consented to an assessment.
442          Section 3. Section 11-42-106 is amended to read:
443          11-42-106. Action to contest assessment or proceeding -- Requirements --
444     Exclusive remedy -- Bonds and assessment incontestable.
445          (1) A person who contests an assessment or any proceeding to designate an assessment
446     area or levy an assessment may commence a civil action against the local entity to:
447          (a) set aside a proceeding to designate an assessment area; or
448          (b) enjoin the levy or collection of an assessment.
449          (2) (a) Each action under Subsection (1) shall be commenced in the district court with
450     jurisdiction in the county in which the assessment area is located.
451          (b) (i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
452     not be commenced against and a summons relating to the action may not be served on the local
453     entity more than 60 days after the effective date of the:
454          (A) designation resolution or designation ordinance, if the challenge is to the
455     designation of an assessment area;
456          (B) assessment resolution or ordinance, if the challenge is to an assessment; or
457          (C) amended resolution or ordinance, if the challenge is to an amendment.
458          (ii) The period for commencing an action and serving a summons under Subsection
459     (2)(b)(i) is 30 days if [the designation resolution, assessment resolution, or amended resolution

460     was]:
461          (A) the designation resolution, assessment resolution, or amended resolution was
462     adopted by a development authority [or], an infrastructure financing district under Title 17B,
463     Chapter 2a, Part 13, Infrastructure Financing Districts, or a public infrastructure district created
464     by a development authority under Title 17D, Chapter 4, Public Infrastructure District Act; and
465          (B) all owners of property within the assessment area or proposed assessment area
466     consent in writing to the designation resolution, assessment resolution, or amended resolution.
467          (3) (a) An action under Subsection (1) is the exclusive remedy of a person who:
468          (i) claims an error or irregularity in an assessment or in any proceeding to designate an
469     assessment area or levy an assessment; or
470          (ii) challenges a bondholder's right to repayment.
471          (b) A court may not hear any complaint under Subsection (1) that a person was
472     authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under
473     Section 11-42-204.
474          (c) (i) If a person has not brought a claim for which the person was previously
475     authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
476     may not be brought later because of an amendment to the resolution or ordinance unless the
477     claim arises from the amendment itself.
478          (ii) In an action brought pursuant to Subsection (1), a person may not contest a
479     previous decision, proceeding, or determination for which the service deadline described in
480     Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
481     determination.
482          (4) An assessment or a proceeding to designate an assessment area or to levy an
483     assessment may not be declared invalid or set aside in part or in whole because of an error or
484     irregularity that does not go to the equity or justice of the proceeding or the assessment meeting
485     the requirements of Section 11-42-409.
486          (5) After the expiration of the period referred to in Subsection (2)(b):
487          (a) assessment bonds and refunding assessment bonds issued or to be issued with
488     respect to an assessment area and assessments levied on property in the assessment area
489     become at that time incontestable against all persons who have not commenced an action and
490     served a summons as provided in this section; and

491          (b) a suit to enjoin the issuance or payment of assessment bonds or refunding
492     assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
493     question in any way the legality of assessment bonds, refunding assessment bonds, or an
494     assessment may not be commenced, and a court may not inquire into those matters.
495          (6) (a) This section may not be interpreted to insulate a local entity from a claim of
496     misuse of assessment funds after the expiration of the period described in Subsection (2)(b).
497          (b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
498     is the sole form of relief available to a party challenging the misuse of assessment funds.
499          (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
500     charges against or the prosecution of a party for the misuse of assessment funds.
501          Section 4. Section 11-42-201 is amended to read:
502          11-42-201. Resolution or ordinance designating an assessment area --
503     Classifications within an assessment area -- Preconditions to adoption of a resolution or
504     ordinance.
505          (1) (a) Subject to the requirements of this part, a governing body of a local entity
506     intending to levy an assessment on property to pay some or all of the cost of providing or
507     financing improvements benefitting the property, performing operation and maintenance
508     benefitting the property, or conducting economic promotion activities benefitting the property
509     shall adopt a resolution or ordinance designating an assessment area.
510          (b) A designation resolution or designation ordinance described in Subsection (1)(a)
511     may divide the assessment area into multiple classifications to allow the governing body to:
512          (i) levy a different level of assessment; or
513          (ii) use a different assessment method in each classification to reflect more fairly the
514     benefits that property within the different classifications is expected to receive because of the
515     proposed improvement, operation and maintenance, or economic promotion activities.
516          (c) The boundaries of a proposed assessment area:
517          (i) may include property that is not intended to be assessed; and
518          (ii) except for an assessment area within a public infrastructure district created under
519     Title 17D, Chapter 4, Public Infrastructure District Act, or within an infrastructure financing
520     district as defined in Section 17B-1-102, may not be coextensive or substantially coterminous
521     with the boundaries of the local entity.

522          (d) The boundary of an assessment area proposed to be designated in an ordinance or
523     resolution of an infrastructure financing district may not include an area that is already included
524     in an assessment area designated under an ordinance or resolution previously adopted by the
525     infrastructure financing district.
526          (2) Before adopting a designation resolution or designation ordinance described in
527     Subsection (1)(a), the governing body of the local entity shall:
528          (a) give notice as provided in Section 11-42-202;
529          (b) receive and consider all protests filed under Section 11-42-203; and
530          (c) hold a public hearing as provided in Section 11-42-204.
531          Section 5. Section 11-42-202 is amended to read:
532          11-42-202. Requirements applicable to a notice of a proposed assessment area
533     designation -- Notice.
534          (1) Each notice required under Subsection 11-42-201(2)(a) shall:
535          (a) state that the local entity proposes to:
536          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
537     assessment area; and
538          (ii) (A) provide an improvement to property within the proposed assessment area[;]
539     and [(iii)] finance some or all of the cost of improvements by an assessment on benefitted
540     property within the assessment area; or
541          (B) finance improvements to property through an assessment on benefitted property
542     within the assessment area;
543          (b) describe the proposed assessment area by any reasonable method that allows an
544     owner of property in the proposed assessment area to determine that the owner's property is
545     within the proposed assessment area;
546          (c) describe, in a general and reasonably accurate way, the improvements to be
547     provided to the assessment area, including:
548          (i) the nature of the improvements; and
549          (ii) the location of the improvements, by reference to streets or portions or extensions
550     of streets or by any other means that the governing body chooses that reasonably describes the
551     general location of the improvements;
552          (d) state the estimated cost of the improvements as determined by a project engineer;

553          (e) for the notice mailed under Subsection (4), state the estimated total assessment
554     specific to the benefitted property for which the notice is mailed;
555          (f) state that the local entity proposes to levy an assessment on benefitted property
556     within the assessment area to pay some or all of the cost of the improvements according to the
557     estimated benefits to the property from the improvements;
558          (g) if applicable, state that an unassessed benefitted government property will receive
559     improvements for which the cost will be allocated proportionately to the remaining benefitted
560     properties within the proposed assessment area and that a description of each unassessed
561     benefitted government property is available for public review at the location or website
562     described in Subsection (6);
563          (h) state the assessment method by which the governing body proposes to calculate the
564     proposed assessment, including, if the local entity is a municipality or county, whether the
565     assessment will be collected:
566          (i) by directly billing a property owner; or
567          (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317
568     and in compliance with Section 11-42-401;
569          (i) state:
570          (i) the date described in Section 11-42-203 and the location at which protests against
571     designation of the proposed assessment area or of the proposed improvements are required to
572     be filed;
573          (ii) the method by which the governing body will determine the number of protests
574     required to defeat the designation of the proposed assessment area or acquisition or
575     construction of the proposed improvements; and
576          (iii) in large, boldface, and conspicuous type that a property owner must protest the
577     designation of the assessment area in writing if the owner objects to the area designation or
578     being assessed for the proposed improvements, operation and maintenance costs, or economic
579     promotion activities;
580          (j) state the date, time, and place of the public hearing required in Section 11-42-204;
581          (k) if the governing body elects to create and fund a reserve fund under Section
582     11-42-702, include a description of:
583          (i) how the reserve fund will be funded and replenished; and

584          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
585     the bonds;
586          (l) if the governing body intends to designate a voluntary assessment area, include a
587     property owner consent form that:
588          (i) estimates the total assessment to be levied against the particular parcel of property;
589          (ii) describes any additional benefits that the governing body expects the assessed
590     property to receive from the improvements;
591          (iii) designates the date and time by which the fully executed consent form is required
592     to be submitted to the governing body; and
593          (iv) if the governing body intends to enforce an assessment lien on the property in
594     accordance with Subsection 11-42-502.1(2)(a)(ii)(C):
595          (A) appoints a trustee that satisfies the requirements described in Section 57-1-21;
596          (B) gives the trustee the power of sale;
597          (C) is binding on the property owner and all successors; and
598          (D) explains that if an assessment or an installment of an assessment is not paid when
599     due, the local entity may sell the property owner's property to satisfy the amount due plus
600     interest, penalties, and costs, in the manner described in Title 57, Chapter 1, Conveyances;
601          (m) if the local entity intends to levy an assessment to pay operation and maintenance
602     costs or for economic promotion activities, include:
603          (i) a description of the operation and maintenance costs or economic promotion
604     activities to be paid by assessments and the initial estimated annual assessment to be levied;
605          (ii) a description of how the estimated assessment will be determined;
606          (iii) a description of how and when the governing body will adjust the assessment to
607     reflect the costs of:
608          (A) in accordance with Section 11-42-406, current economic promotion activities; or
609          (B) current operation and maintenance costs;
610          (iv) a description of the method of assessment if different from the method of
611     assessment to be used for financing any improvement; and
612          (v) a statement of the maximum number of years over which the assessment will be
613     levied for:
614          (A) operation and maintenance costs; or

615          (B) economic promotion activities;
616          (n) if the governing body intends to divide the proposed assessment area into
617     classifications under Subsection 11-42-201(1)(b), include a description of the proposed
618     classifications;
619          (o) if applicable, state the portion and value of the improvement that will be increased
620     in size or capacity to serve property outside of the assessment area and how the increases will
621     be financed; and
622          (p) state whether the improvements will be financed with a bond and, if so, the
623     currently estimated interest rate and term of financing, subject to Subsection (2), for which the
624     benefitted properties within the assessment area may be obligated.
625          (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
626     interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
627     subject to the market rate at the time of the issuance of the bond.
628          (3) A notice required under Subsection 11-42-201(2)(a) may contain other information
629     that the governing body considers to be appropriate, including:
630          (a) the amount or proportion of the cost of the improvement to be paid by the local
631     entity or from sources other than an assessment;
632          (b) the estimated total amount of each type of assessment for the various improvements
633     to be financed according to the method of assessment that the governing body chooses; and
634          (c) provisions for any improvements described in Subsection 11-42-102(25)(a)(ii).
635          (4) Each notice required under Subsection 11-42-201(2)(a) shall be published for the
636     governing body's jurisdiction, as a class B notice under Section 63G-30-102, for at least 20
637     days, but not more than 35 days, before the day of the hearing required in Section 11-42-204.
638          (5) (a) The local entity may record the version of the notice that is published or posted
639     in accordance with Subsection (4) with the office of the county recorder, by legal description
640     and tax identification number as identified in county records, against the property proposed to
641     be assessed.
642          (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
643     after the day on which the local entity records the notice if the local entity has failed to adopt
644     the designation ordinance or resolution under Section 11-42-201 designating the assessment
645     area for which the notice was recorded.

646          (6) A local entity shall make available on the local entity's website, or, if no website is
647     available, at the local entity's place of business, the address and type of use of each unassessed
648     benefitted government property described in Subsection (1)(g).
649          (7) If a governing body fails to provide actual or constructive notice under this section,
650     the local entity may not assess a levy against a benefitted property omitted from the notice
651     unless:
652          (a) the property owner gives written consent;
653          (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
654     not object to the levy of the assessment before the final hearing of the board of equalization; or
655          (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
656     of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
657     Subsection 11-42-207(1)(d)(i) are met.
658          Section 6. Section 11-42-411 is amended to read:
659          11-42-411. Installment payment of assessments.
660          (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
661     Subsection (1)(b), provide that some or all of the assessment be paid in installments over a
662     period:
663          (i) not to exceed 20 years from the effective date of the resolution or ordinance, except
664     as provided in Subsection (1)(a)(ii); or
665          (ii) not to exceed 30 years from the effective date of the resolution, for a resolution
666     adopted by:
667          (A) a development authority; [or]
668          (B) an infrastructure financing district under Title 17B, Chapter 2a, Part 13,
669     Infrastructure Financing Districts; or
670          [(B)] (C) a public infrastructure district created by a development authority under Title
671     17D, Chapter 4, Public Infrastructure District Act.
672          (b) If an assessment resolution or ordinance provides that some or all of the assessment
673     be paid in installments for a period exceeding 10 years from the effective date of the resolution
674     or ordinance, the governing body:
675          (i) shall make a determination that:
676          (A) the improvement for which the assessment is made has a reasonable useful life for

677     the full period during which installments are to be paid; or
678          (B) it would be in the best interests of the local entity and the property owners for
679     installments to be paid for more than 10 years; and
680          (ii) may provide in the resolution or ordinance that no assessment is payable during
681     some or all of the period ending three years after the effective date of the resolution or
682     ordinance.
683          (2) An assessment resolution or ordinance that provides for the assessment to be paid
684     in installments may provide that the unpaid balance be paid over the period of time that
685     installments are payable:
686          (a) in substantially equal installments of principal; or
687          (b) in substantially equal installments of principal and interest.
688          (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
689     paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
690     of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
691     variable rates, as determined by the governing body, from the effective date of the resolution or
692     ordinance or another date specified in the resolution or ordinance.
693          (b) If the assessment is for operation and maintenance costs or for the costs of
694     economic promotion activities:
695          (i) a local entity may charge interest only from the date each installment is due; and
696          (ii) the first installment of an assessment shall be due 15 days after the effective date of
697     the assessment resolution or ordinance.
698          (c) If an assessment resolution or ordinance provides for the unpaid balance of the
699     assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
700     specify:
701          (i) the basis upon which the rate is to be determined from time to time;
702          (ii) the manner in which and schedule upon which the rate is to be adjusted; and
703          (iii) a maximum rate that the assessment may bear.
704          (4) Interest payable on assessments may include:
705          (a) interest on assessment bonds;
706          (b) ongoing local entity costs incurred for administration of the assessment area; and
707          (c) any costs incurred with respect to:

708          (i) securing a letter of credit or other instrument to secure payment or repurchase of
709     bonds; or
710          (ii) retaining a marketing agent or an indexing agent.
711          (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
712     to the amount of each installment annually or at more frequent intervals as provided in the
713     assessment resolution or ordinance.
714          (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
715     economic promotion activities, a property owner may pay some or all of the entire assessment
716     without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
717          (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
718     time prepay some or all of the assessment levied against the owner's property.
719          (c) A local entity may require a prepayment of an installment to include:
720          (i) an amount equal to the interest that would accrue on the assessment to the next date
721     on which interest is payable on bonds issued in anticipation of the collection of the assessment;
722     and
723          (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
724     designated by the governing body, to assure the availability of money to pay:
725          (A) interest that becomes due and payable on those bonds; and
726          (B) any premiums that become payable on bonds that are called in order to use the
727     money from the prepaid assessment installment.
728          Section 7. Section 17-27a-508 is amended to read:
729          17-27a-508. Applicant's entitlement to land use application approval --
730     Application relating to land in a high priority transportation corridor -- County's
731     requirements and limitations -- Vesting upon submission of development plan and
732     schedule.
733          (1) (a) (i) An applicant who has submitted a complete land use application, including
734     the payment of all application fees, is entitled to substantive review of the application under the
735     land use regulations:
736          (A) in effect on the date that the application is complete; and
737          (B) applicable to the application or to the information shown on the submitted
738     application.

739          (ii) An applicant is entitled to approval of a land use application if the application
740     conforms to the requirements of the applicable land use regulations, land use decisions, and
741     development standards in effect when the applicant submits a complete application and pays all
742     application fees, unless:
743          (A) the land use authority, on the record, formally finds that a compelling,
744     countervailing public interest would be jeopardized by approving the application and specifies
745     the compelling, countervailing public interest in writing; or
746          (B) in the manner provided by local ordinance and before the applicant submits the
747     application, the county formally initiates proceedings to amend the county's land use
748     regulations in a manner that would prohibit approval of the application as submitted.
749          (b) The county shall process an application without regard to proceedings the county
750     initiated to amend the county's ordinances as described in Subsection (1)(a)(ii)(B) if:
751          (i) 180 days have passed since the county initiated the proceedings; and
752          (ii) (A) the proceedings have not resulted in an enactment that prohibits approval of the
753     application as submitted; or
754          (B) during the 12 months prior to the county processing the application or multiple
755     applications of the same type, the application is impaired or prohibited under the terms of a
756     temporary land use regulation adopted under Section 17-27a-504.
757          (c) A land use application is considered submitted and complete when the applicant
758     provides the application in a form that complies with the requirements of applicable ordinances
759     and pays all applicable fees.
760          (d) The continuing validity of an approval of a land use application is conditioned upon
761     the applicant proceeding after approval to implement the approval with reasonable diligence.
762          (e) A county may not impose on an applicant who has submitted a complete
763     application a requirement that is not expressed in:
764          (i) this chapter;
765          (ii) a county ordinance in effect on the date that the applicant submits a complete
766     application, subject to Subsection [17-27a-508(1)(a)(ii)] (1)(a)(ii); or
767          (iii) a county specification for public improvements applicable to a subdivision or
768     development that is in effect on the date that the applicant submits an application.
769          (f) A county may not impose on a holder of an issued land use permit or a final,

770     unexpired subdivision plat a requirement that is not expressed:
771          (i) in a land use permit;
772          (ii) on the subdivision plat;
773          (iii) in a document on which the land use permit or subdivision plat is based;
774          (iv) in the written record evidencing approval of the land use permit or subdivision
775     plat;
776          (v) in this chapter;
777          (vi) in a county ordinance; or
778          (vii) in a county specification for residential roadways in effect at the time a residential
779     subdivision was approved.
780          (g) Except as provided in Subsection (1)(h) or (i), a county may not withhold issuance
781     of a certificate of occupancy or acceptance of subdivision improvements because of an
782     applicant's failure to comply with a requirement that is not expressed:
783          (i) in the building permit or subdivision plat, documents on which the building permit
784     or subdivision plat is based, or the written record evidencing approval of the building permit or
785     subdivision plat; or
786          (ii) in this chapter or the county's ordinances.
787          (h) A county may not unreasonably withhold issuance of a certificate of occupancy
788     where an applicant has met all requirements essential for the public health, public safety, and
789     general welfare of the occupants, in accordance with this chapter, unless:
790          (i) the applicant and the county have agreed in a written document to the withholding
791     of a certificate of occupancy; or
792          (ii) the applicant has not provided a financial assurance for required and uncompleted
793     public landscaping improvements or infrastructure improvements in accordance with an
794     applicable ordinance that the legislative body adopts under this chapter.
795          (i) A county may not conduct a final inspection required before issuing a certificate of
796     occupancy for a residential unit that is within the boundary of an infrastructure financing
797     district, as defined in Section 17B-1-102, until the applicant for the certificate of occupancy
798     provides adequate proof to the county that any lien on the unit arising from the infrastructure
799     financing district's assessment against the unit under Title 11, Chapter 42, Assessment Area
800     Act, has been released after payment in full of the infrastructure financing district's assessment

801     against that unit.
802          (2) A county is bound by the terms and standards of applicable land use regulations and
803     shall comply with mandatory provisions of those regulations.
804          (3) A county may not, as a condition of land use application approval, require a person
805     filing a land use application to obtain documentation regarding a school district's willingness,
806     capacity, or ability to serve the development proposed in the land use application.
807          (4) Upon a specified public agency's submission of a development plan and schedule as
808     required in Subsection 17-27a-305(8) that complies with the requirements of that subsection,
809     the specified public agency vests in the county's applicable land use maps, zoning map, hookup
810     fees, impact fees, other applicable development fees, and land use regulations in effect on the
811     date of submission.
812          (5) (a) If sponsors of a referendum timely challenge a project in accordance with
813     Subsection 20A-7-601(6), the project's affected owner may rescind the project's land use
814     approval by delivering a written notice:
815          (i) to the local clerk as defined in Section 20A-7-101; and
816          (ii) no later than seven days after the day on which a petition for a referendum is
817     determined sufficient under Subsection 20A-7-607(5).
818          (b) Upon delivery of a written notice described in Subsection(5)(a) the following are
819     rescinded and are of no further force or effect:
820          (i) the relevant land use approval; and
821          (ii) any land use regulation enacted specifically in relation to the land use approval.
822          Section 8. Section 17B-1-102 is amended to read:
823          17B-1-102. Definitions.
824          As used in this title:
825          (1) "Appointing authority" means the person or body authorized to make an
826     appointment to the board of trustees.
827          (2) "Basic special district":
828          (a) means a special district that is not a specialized special district; and
829          (b) includes an entity that was, under the law in effect before April 30, 2007, created
830     and operated as a special district, as defined under the law in effect before April 30, 2007.
831          (3) "Bond" means:

832          (a) a written obligation to repay borrowed money, whether denominated a bond, note,
833     warrant, certificate of indebtedness, or otherwise; and
834          (b) a lease agreement, installment purchase agreement, or other agreement that:
835          (i) includes an obligation by the district to pay money; and
836          (ii) the district's board of trustees, in its discretion, treats as a bond for purposes of Title
837     11, Chapter 14, Local Government Bonding Act, or Title 11, Chapter 27, Utah Refunding Bond
838     Act.
839          (4) "Cemetery maintenance district" means a special district that operates under and is
840     subject to the provisions of this chapter and Chapter 2a, Part 1, Cemetery Maintenance District
841     Act, including an entity that was created and operated as a cemetery maintenance district under
842     the law in effect before April 30, 2007.
843          (5) "Drainage district" means a special district that operates under and is subject to the
844     provisions of this chapter and Chapter 2a, Part 2, Drainage District Act, including an entity that
845     was created and operated as a drainage district under the law in effect before April 30, 2007.
846          (6) "Facility" or "facilities" includes any structure, building, system, land, water right,
847     water, or other real or personal property required to provide a service that a special district is
848     authorized to provide, including any related or appurtenant easement or right-of-way,
849     improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
850          (7) "Fire protection district" means a special district that operates under and is subject
851     to the provisions of this chapter and Chapter 2a, Part 3, Fire Protection District Act, including
852     an entity that was created and operated as a fire protection district under the law in effect before
853     April 30, 2007.
854          (8) "General obligation bond":
855          (a) means a bond that is directly payable from and secured by ad valorem property
856     taxes that are:
857          (i) levied:
858          (A) by the district that issues the bond; and
859          (B) on taxable property within the district; and
860          (ii) in excess of the ad valorem property taxes of the district for the current fiscal year;
861     and
862          (b) does not include:

863          (i) a short-term bond;
864          (ii) a tax and revenue anticipation bond; or
865          (iii) a special assessment bond.
866          (9) "Improvement assurance" means a surety bond, letter of credit, cash, or other
867     security:
868          (a) to guarantee the proper completion of an improvement;
869          (b) that is required before a special district may provide a service requested by a
870     service applicant; and
871          (c) that is offered to a special district to induce the special district before construction
872     of an improvement begins to:
873          (i) provide the requested service; or
874          (ii) commit to provide the requested service.
875          (10) "Improvement assurance warranty" means a promise that the materials and
876     workmanship of an improvement:
877          (a) comply with standards adopted by a special district; and
878          (b) will not fail in any material respect within an agreed warranty period.
879          (11) "Improvement district" means a special district that operates under and is subject
880     to the provisions of this chapter and Chapter 2a, Part 4, Improvement District Act, including an
881     entity that was created and operated as a county improvement district under the law in effect
882     before April 30, 2007.
883          (12) "Infrastructure financing district" means a special district that operates under and
884     is subject to the provisions of this chapter and Chapter 2a, Part 13, Infrastructure Financing
885     Districts.
886          [(12)] (13) "Irrigation district" means a special district that operates under and is
887     subject to the provisions of this chapter and Chapter 2a, Part 5, Irrigation District Act,
888     including an entity that was created and operated as an irrigation district under the law in effect
889     before April 30, 2007.
890          [(13)] (14) "Metropolitan water district" means a special district that operates under
891     and is subject to the provisions of this chapter and Chapter 2a, Part 6, Metropolitan Water
892     District Act, including an entity that was created and operated as a metropolitan water district
893     under the law in effect before April 30, 2007.

894          [(14)] (15) "Mosquito abatement district" means a special district that operates under
895     and is subject to the provisions of this chapter and Chapter 2a, Part 7, Mosquito Abatement
896     District Act, including an entity that was created and operated as a mosquito abatement district
897     under the law in effect before April 30, 2007.
898          [(15)] (16) "Municipal" means of or relating to a municipality.
899          [(16)] (17) "Municipality" means a city, town, or metro township.
900          [(17)] (18) "Municipal services district" means a special district that operates under and
901     is subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District
902     Act.
903          [(18)] (19) "Person" means an individual, corporation, partnership, organization,
904     association, trust, governmental agency, or other legal entity.
905          [(19)] (20) "Political subdivision" means a county, city, town, metro township, special
906     district under this title, special service district under Title 17D, Chapter 1, Special Service
907     District Act, an entity created by interlocal cooperation agreement under Title 11, Chapter 13,
908     Interlocal Cooperation Act, or any other governmental entity designated in statute as a political
909     subdivision of the state.
910          [(20)] (21) "Private," with respect to real property, means not owned by the United
911     States or any agency of the federal government, the state, a county, or a political subdivision.
912          [(21)] (22) "Public entity" means:
913          (a) the United States or an agency of the United States;
914          (b) the state or an agency of the state;
915          (c) a political subdivision of the state or an agency of a political subdivision of the
916     state;
917          (d) another state or an agency of that state; or
918          (e) a political subdivision of another state or an agency of that political subdivision.
919          [(22)] (23) "Public transit district" means a special district that operates under and is
920     subject to the provisions of this chapter and Chapter 2a, Part 8, Public Transit District Act,
921     including an entity that was created and operated as a public transit district under the law in
922     effect before April 30, 2007.
923          [(23)] (24) "Revenue bond":
924          (a) means a bond payable from designated taxes or other revenues other than the

925     special district's ad valorem property taxes; and
926          (b) does not include:
927          (i) an obligation constituting an indebtedness within the meaning of an applicable
928     constitutional or statutory debt limit;
929          (ii) a tax and revenue anticipation bond; or
930          (iii) a special assessment bond.
931          [(24)] (25) "Rules of order and procedure" means a set of rules that govern and
932     prescribe in a public meeting:
933          (a) parliamentary order and procedure;
934          (b) ethical behavior; and
935          (c) civil discourse.
936          [(25)] (26) "Service applicant" means a person who requests that a special district
937     provide a service that the special district is authorized to provide.
938          [(26)] (27) "Service area" means a special district that operates under and is subject to
939     the provisions of this chapter and Chapter 2a, Part 9, Service Area Act, including an entity that
940     was created and operated as a county service area or a regional service area under the law in
941     effect before April 30, 2007.
942          [(27)] (28) "Short-term bond" means a bond that is required to be repaid during the
943     fiscal year in which the bond is issued.
944          [(28)] (29) "Special assessment" means an assessment levied against property to pay all
945     or a portion of the costs of making improvements that benefit the property.
946          [(29)] (30) "Special assessment bond" means a bond payable from special assessments.
947          [(30)] (31) "Special district" means a limited purpose local government entity, as
948     described in Section 17B-1-103, that operates under, is subject to, and has the powers
949     described in:
950          (a) this chapter; or
951          (b) (i) this chapter; and
952          (ii) (A) Chapter 2a, Part 1, Cemetery Maintenance District Act;
953          (B) Chapter 2a, Part 2, Drainage District Act;
954          (C) Chapter 2a, Part 3, Fire Protection District Act;
955          (D) Chapter 2a, Part 4, Improvement District Act;

956          (E) Chapter 2a, Part 5, Irrigation District Act;
957          (F) Chapter 2a, Part 6, Metropolitan Water District Act;
958          (G) Chapter 2a, Part 7, Mosquito Abatement District Act;
959          (H) Chapter 2a, Part 8, Public Transit District Act;
960          (I) Chapter 2a, Part 9, Service Area Act;
961          (J) Chapter 2a, Part 10, Water Conservancy District Act; [or]
962          (K) Chapter 2a, Part 11, Municipal Services District Act[.]; or
963          (L) Chapter 2a, Part 13, Infrastructure Financing Districts.
964          [(31)] (32) "Specialized special district" means a special district that is a cemetery
965     maintenance district, a drainage district, a fire protection district, an improvement district, an
966     irrigation district, a metropolitan water district, a mosquito abatement district, a public transit
967     district, a service area, a water conservancy district, a municipal services district, [or a public
968     infrastructure district], or an infrastructure financing district.
969          [(32)] (33) "Taxable value" means the taxable value of property as computed from the
970     most recent equalized assessment roll for county purposes.
971          [(33)] (34) "Tax and revenue anticipation bond" means a bond:
972          (a) issued in anticipation of the collection of taxes or other revenues or a combination
973     of taxes and other revenues; and
974          (b) that matures within the same fiscal year as the fiscal year in which the bond is
975     issued.
976          [(34)] (35) "Unincorporated" means not included within a municipality.
977          [(35)] (36) "Water conservancy district" means a special district that operates under
978     and is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy
979     District Act, including an entity that was created and operated as a water conservancy district
980     under the law in effect before April 30, 2007.
981          [(36)] (37) "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain,
982     tunnel, power plant, and any facility, improvement, or property necessary or convenient for
983     supplying or treating water for any beneficial use, and for otherwise accomplishing the
984     purposes of a special district.
985          Section 9. Section 17B-1-103 is amended to read:
986          17B-1-103. Special district status and powers -- Registration as a limited purpose

987     entity.
988          (1) A special district:
989          (a) is:
990          (i) a body corporate and politic with perpetual succession;
991          (ii) a quasi-municipal corporation; [and]
992          (iii) a political subdivision of the state; and
993          (iv) separate and distinct from and independent of any other political subdivision of the
994     state; and
995          (b) may sue and be sued.
996          (2) A special district may:
997          (a) acquire, by any lawful means, or lease any real property, personal property, or a
998     groundwater right necessary or convenient to the full exercise of the district's powers;
999          (b) acquire, by any lawful means, any interest in real property, personal property, or a
1000     groundwater right necessary or convenient to the full exercise of the district's powers;
1001          (c) transfer an interest in or dispose of any property or interest described in Subsections
1002     (2)(a) and (b);
1003          (d) acquire or construct works, facilities, and improvements necessary or convenient to
1004     the full exercise of the district's powers, and operate, control, maintain, and use those works,
1005     facilities, and improvements;
1006          (e) borrow money and incur indebtedness for any lawful district purpose;
1007          (f) issue bonds, including refunding bonds:
1008          (i) for any lawful district purpose; and
1009          (ii) as provided in and subject to Part 11, Special District Bonds;
1010          (g) levy and collect property taxes:
1011          (i) for any lawful district purpose or expenditure, including to cover a deficit resulting
1012     from tax delinquencies in a preceding year; and
1013          (ii) as provided in and subject to Part 10, Special District Property Tax Levy;
1014          (h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent
1015     domain property necessary to the exercise of the district's powers;
1016          (i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
1017          (j) (i) impose fees or other charges for commodities, services, or facilities provided by

1018     the district, to pay some or all of the district's costs of providing the commodities, services, and
1019     facilities, including the costs of:
1020          (A) maintaining and operating the district;
1021          (B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
1022          (C) issuing bonds and paying debt service on district bonds; and
1023          (D) providing a reserve established by the board of trustees; and
1024          (ii) take action the board of trustees considers appropriate and adopt regulations to
1025     assure the collection of all fees and charges that the district imposes;
1026          (k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's
1027     property to district facilities in order for the district to provide service to the property;
1028          (l) enter into a contract that the special district board of trustees considers necessary,
1029     convenient, or desirable to carry out the district's purposes, including a contract:
1030          (i) with the United States or any department or agency of the United States;
1031          (ii) to indemnify and save harmless; or
1032          (iii) to do any act to exercise district powers;
1033          (m) purchase supplies, equipment, and materials;
1034          (n) encumber district property upon terms and conditions that the board of trustees
1035     considers appropriate;
1036          (o) exercise other powers and perform other functions that are provided by law;
1037          (p) construct and maintain works and establish and maintain facilities, including works
1038     or facilities:
1039          (i) across or along any public street or highway, subject to Subsection (3) and if the
1040     district:
1041          (A) promptly restores the street or highway, as much as practicable, to its former state
1042     of usefulness; and
1043          (B) does not use the street or highway in a manner that completely or unnecessarily
1044     impairs the usefulness of it;
1045          (ii) in, upon, or over any vacant public lands that are or become the property of the
1046     state, including school and institutional trust lands, as defined in Section 53C-1-103, if the
1047     director of the School and Institutional Trust Lands Administration, acting under Sections
1048     53C-1-102 and 53C-1-303, consents; or

1049          (iii) across any stream of water or watercourse, subject to Section 73-3-29;
1050          (q) perform any act or exercise any power reasonably necessary for the efficient
1051     operation of the special district in carrying out its purposes;
1052          (r) (i) except for a special district described in Subsection (2)(r)(ii), designate an
1053     assessment area and levy an assessment on land within the assessment area, as provided in
1054     Title 11, Chapter 42, Assessment Area Act; or
1055          (ii) for a special district created to assess a groundwater right in a critical management
1056     area described in Subsection 17B-1-202(1), designate an assessment area and levy an
1057     assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
1058     to facilitate a groundwater management plan;
1059          (s) contract with another political subdivision of the state to allow the other political
1060     subdivision to use the district's surplus water or capacity or have an ownership interest in the
1061     district's works or facilities, upon the terms and for the consideration, whether monetary or
1062     nonmonetary consideration or no consideration, that the district's board of trustees considers to
1063     be in the best interests of the district and the public;
1064          (t) upon the terms and for the consideration, whether monetary or nonmonetary
1065     consideration or no consideration, that the district's board of trustees considers to be in the best
1066     interests of the district and the public, agree:
1067          (i) (A) with another political subdivision of the state; or
1068          (B) with a public or private owner of property on which the district has a right-of-way
1069     or adjacent to which the district owns fee title to property; and
1070          (ii) to allow the use of property:
1071          (A) owned by the district; or
1072          (B) on which the district has a right-of-way; and
1073          (u) if the special district receives, as determined by the special district board of
1074     trustees, adequate monetary or nonmonetary consideration in return:
1075          (i) provide services or nonmonetary assistance to a nonprofit entity;
1076          (ii) waive fees required to be paid by a nonprofit entity; or
1077          (iii) provide monetary assistance to a nonprofit entity, whether from the special
1078     district's own funds or from funds the special district receives from the state or any other
1079     source.

1080          (3) With respect to a special district's use of a street or highway, as provided in
1081     Subsection (2)(p)(i):
1082          (a) the district shall comply with the reasonable rules and regulations of the
1083     governmental entity, whether state, county, or municipal, with jurisdiction over the street or
1084     highway, concerning:
1085          (i) an excavation and the refilling of an excavation;
1086          (ii) the relaying of pavement; and
1087          (iii) the protection of the public during a construction period; and
1088          (b) the governmental entity, whether state, county, or municipal, with jurisdiction over
1089     the street or highway:
1090          (i) may not require the district to pay a license or permit fee or file a bond; and
1091          (ii) may require the district to pay a reasonable inspection fee.
1092          (4) (a) A special district may:
1093          (i) acquire, lease, or construct and operate electrical generation, transmission, and
1094     distribution facilities, if:
1095          (A) the purpose of the facilities is to harness energy that results inherently from the
1096     district's operation of a project or facilities that the district is authorized to operate or from the
1097     district providing a service that the district is authorized to provide;
1098          (B) the generation of electricity from the facilities is incidental to the primary
1099     operations of the district; and
1100          (C) operation of the facilities will not hinder or interfere with the primary operations of
1101     the district;
1102          (ii) (A) use electricity generated by the facilities; or
1103          (B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
1104     utility or municipality with an existing system for distributing electricity.
1105          (b) A district may not act as a retail distributor or seller of electricity.
1106          (c) Revenue that a district receives from the sale of electricity from electrical
1107     generation facilities it owns or operates under this section may be used for any lawful district
1108     purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
1109     constructing the facilities.
1110          (5) A special district may adopt and, after adoption, alter a corporate seal.

1111          (6) (a) Each special district shall register and maintain the special district's registration
1112     as a limited purpose entity, in accordance with Section 67-1a-15.
1113          (b) A special district that fails to comply with Subsection (6)(a) or Section 67-1a-15 is
1114     subject to enforcement by the state auditor, in accordance with Section 67-3-1.
1115          (7) (a) As used in this Subsection (7), "knife" means a cutting instrument that includes
1116     a sharpened or pointed blade.
1117          (b) The authority to regulate a knife is reserved to the state except where the
1118     Legislature specifically delegates responsibility to a special district.
1119          (c) Unless specifically authorized by the Legislature by statute, a special district may
1120     not adopt or enforce a regulation or rule pertaining to a knife.
1121          Section 10. Section 17B-1-105 is amended to read:
1122          17B-1-105. Name of special district -- Name change.
1123          (1) (a) The name of each special district created on or after May 1, 2000 shall comply
1124     with Subsection 17-50-103(2)(a).
1125          (b) The board of each special district affected by Subsection 17-50-103(2)(b) shall
1126     ensure that after January 1, 2005 the special district name complies with the requirements of
1127     Subsection 17-50-103(2)(b).
1128          (2) The name of a special district created after April 30, 2007 may not include the
1129     name of a county or municipality.
1130          (3) The name of a special district may include words descriptive of the type of service
1131     that the district provides.
1132          (4) The name of an infrastructure financing district shall comply with Subsection
1133     17B-1-208(1)(b)(ii).
1134          [(4)] (5) (a) A special district board may change the name of that special district as
1135     provided in this Subsection [(4)] (5).
1136          (b) To initiate a name change, the special district board shall:
1137          (i) hold a public hearing on the proposed name change;
1138          (ii) adopt a resolution approving the name change; and
1139          (iii) file with the lieutenant governor a notice of an impending name change, as defined
1140     in Section 67-1a-6.7, that meets the requirements of Subsection 67-1a-6.7(3).
1141          (c) Upon the lieutenant governor's issuance of a certificate of name change under

1142     Section 67-1a-6.7, the special district board shall:
1143          (i) if the special district is located within the boundary of a single county, submit to the
1144     recorder of that county:
1145          (A) the original:
1146          (I) notice of an impending name change; and
1147          (II) certificate of name change; and
1148          (B) a certified copy of the resolution approving the name change; or
1149          (ii) if the special district is located within the boundaries of more than a single county:
1150          (A) submit to the recorder of one of those counties:
1151          (I) the original of the documents listed in Subsections [(4)(c)(i)(A)(I)] (5)(c)(i)(A)(I)
1152     and (II); and
1153          (II) a certified copy of the resolution approving the name change; and
1154          (B) submit to the recorder of each other county:
1155          (I) a certified copy of the documents listed in Subsections [(4)(c)(i)(A)(I)]
1156     (5)(c)(i)(A)(I) and (II); and
1157          (II) a certified copy of the resolution approving the name change.
1158          (d) (i) A name change under this Subsection [(4)] (5) becomes effective upon the
1159     lieutenant governor's issuance of a certificate of name change under Section 67-1a-6.7.
1160          (ii) Notwithstanding Subsection [(4)(d)(i)] (5)(d)(i), the special district may not operate
1161     under the new name until the documents listed in Subsection [(4)(c)] (5)(c) are recorded in the
1162     office of the recorder of each county in which the special district is located.
1163          Section 11. Section 17B-1-201 is amended to read:
1164          17B-1-201. Definitions.
1165          As used in this part:
1166          (1) "Applicable area" means:
1167          (a) for a county, the unincorporated area of the county that is included within the
1168     proposed special district; or
1169          (b) for a municipality, the area of the municipality that is included within the proposed
1170     special district.
1171          (2) "Governing body" means:
1172          (a) for a county or municipality, the legislative body of the county or municipality; and

1173          (b) for a special district, the board of trustees of the special district.
1174          (3) "Groundwater right owner petition" means a petition under Subsection
1175     17B-1-203(1)(c).
1176          (4) "Groundwater right owner request" means a request under Section 17B-1-204 that
1177     is signed by owners of water rights as provided in Subsection 17B-1-204(2)(b)(ii).
1178          (5) "Initiating special district" means a special district that adopts a resolution
1179     proposing the creation of a special district under Subsection [17B-1-203(1)(e)]
1180     17B-1-203(1)(f).
1181          (6) "Petition" means a petition under Subsection 17B-1-203(1)(a), (b), [or] (c), or (d).
1182          (7) "Property owner petition" means a petition under Subsection 17B-1-203(1)(a).
1183          (8) "Property owner request" means a request under Section 17B-1-204 that is signed
1184     by owners of real property as provided in Subsection 17B-1-204(2)(b)(i).
1185          (9) "Registered voter request" means a request under Section 17B-1-204 that is signed
1186     by registered voters as provided in Subsection 17B-1-204(2)(b)(iii).
1187          (10) "Registered voter petition" means a petition under Subsection 17B-1-203(1)(b).
1188          (11) "Request" means a request as described in Section 17B-1-204.
1189          (12) "Responsible body" means the governing body of:
1190          (a) the municipality in which the proposed special district is located, if the petition or
1191     resolution proposes the creation of a special district located entirely within a single
1192     municipality;
1193          (b) the county in which the proposed special district is located, if the petition or
1194     resolution proposes the creation of a special district located entirely within a single county and
1195     all or part of the proposed special district is located within:
1196          (i) the unincorporated part of the county; or
1197          (ii) more than one municipality within the county;
1198          (c) if the petition or resolution proposes the creation of a special district located within
1199     more than one county, the county whose boundaries include more of the area of the proposed
1200     special district than is included within the boundaries of any other county; or
1201          (d) the initiating special district, if a resolution proposing the creation of a special
1202     district is adopted under Subsection [17B-1-203(1)(e)] 17B-1-203(1)(f).
1203          (13) "Responsible clerk" means:

1204          (a) except as provided in Subsection (13)(b), the clerk of the county or the clerk or
1205     recorder of the municipality whose legislative body is the responsible body; or
1206          (b) for the proposed creation of an infrastructure financing district, the clerk of the
1207     county in which the majority of the acreage within the boundary of the proposed infrastructure
1208     financing district is located.
1209          Section 12. Section 17B-1-202 is amended to read:
1210          17B-1-202. Special district may be created -- Services that may be provided --
1211     Limitations.
1212          (1) (a) A special district may be created as provided in this part to provide within its
1213     boundaries service consisting of:
1214          (i) the operation of an airport;
1215          (ii) the operation of a cemetery;
1216          (iii) fire protection, paramedic, and emergency services, including consolidated 911
1217     and emergency dispatch services;
1218          (iv) garbage collection and disposal;
1219          (v) health care, including health department or hospital service;
1220          (vi) the operation of a library;
1221          (vii) abatement or control of mosquitos and other insects;
1222          (viii) the operation of parks or recreation facilities or services;
1223          (ix) the operation of a sewage system;
1224          (x) the construction and maintenance of a right-of-way, including:
1225          (A) a curb;
1226          (B) a gutter;
1227          (C) a sidewalk;
1228          (D) a street;
1229          (E) a road;
1230          (F) a water line;
1231          (G) a sewage line;
1232          (H) a storm drain;
1233          (I) an electricity line;
1234          (J) a communications line;

1235          (K) a natural gas line; or
1236          (L) street lighting;
1237          (xi) transportation, including public transit and providing streets and roads;
1238          (xii) the operation of a system, or one or more components of a system, for the
1239     collection, storage, retention, control, conservation, treatment, supplying, distribution, or
1240     reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
1241     the system is operated on a wholesale or retail level or both;
1242          (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
1243     groundwater right for the development and execution of a groundwater management plan in
1244     cooperation with and approved by the state engineer in accordance with Section 73-5-15;
1245          (xiv) law enforcement service;
1246          (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
1247     or the conversion to underground of an existing electric utility line;
1248          (xvi) the control or abatement of earth movement or a landslide;
1249          (xvii) the operation of animal control services and facilities; [or]
1250          (xviii) an energy efficiency upgrade, a renewable energy system, or electric vehicle
1251     charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11, Chapter
1252     42a, Commercial Property Assessed Clean Energy Act; or
1253          (xix) the financing of infrastructure, as provided in Chapter 2a, Part 13, Infrastructure
1254     Financing Districts.
1255          (b) Each special district that provides the service of the underground installation of an
1256     electric utility line or the conversion to underground of an existing electric utility line shall, in
1257     installing or converting the line, provide advance notice to and coordinate with the utility that
1258     owns the line.
1259          (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
1260     the banking of groundwater rights by a special district in a critical management area as defined
1261     in Section 73-5-15 following the adoption of a groundwater management plan by the state
1262     engineer under Section 73-5-15.
1263          (i) A special district may manage the groundwater rights it acquires under Subsection
1264     17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater management plan
1265     described in this Subsection (1)(c).

1266          (ii) A groundwater right held by a special district to satisfy the provisions of a
1267     groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4.
1268          (iii) (A) A special district may divest itself of a groundwater right subject to a
1269     determination that the groundwater right is not required to facilitate the groundwater
1270     management plan described in this Subsection (1)(c).
1271          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
1272     73-1-4 beginning on the date of divestiture.
1273          (iv) Upon a determination by the state engineer that an area is no longer a critical
1274     management area as defined in Section 73-5-15, a groundwater right held by the special district
1275     is subject to Section 73-1-4.
1276          (v) A special district created in accordance with Subsection (1)(a)(xiii) to develop and
1277     execute a groundwater management plan may hold or acquire a right to surface waters that are
1278     naturally tributary to the groundwater basin subject to the groundwater management plan if the
1279     surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
1280     accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
1281          (2) As used in this section:
1282          (a) "Operation" means all activities involved in providing the indicated service
1283     including acquisition and ownership of property reasonably necessary to provide the indicated
1284     service and acquisition, construction, and maintenance of facilities and equipment reasonably
1285     necessary to provide the indicated service.
1286          (b) "System" means the aggregate of interrelated components that combine together to
1287     provide the indicated service including, for a sewage system, collection and treatment.
1288          (3) (a) A special district may not be created to provide and may not after its creation
1289     provide more than four of the services listed in Subsection (1).
1290          (b) Subsection (3)(a) may not be construed to prohibit a special district from providing
1291     more than four services if, before April 30, 2007, the special district was authorized to provide
1292     those services.
1293          (4) (a) Except as provided in Subsection (4)(b), a special district may not be created to
1294     provide and may not after its creation provide to an area the same service that may already be
1295     provided to that area by another political subdivision, unless the other political subdivision
1296     gives its written consent.

1297          (b) For purposes of Subsection (4)(a), a special district does not provide the same
1298     service as another political subdivision if it operates a component of a system that is different
1299     from a component operated by another political subdivision but within the same:
1300          (i) sewage system; or
1301          (ii) water system.
1302          (5) (a) Except for a special district in the creation of which an election is not required
1303     under Subsection 17B-1-214(3)(d), the area of a special district may include all or part of the
1304     unincorporated area of one or more counties and all or part of one or more municipalities.
1305          (b) The area of a special district need not be contiguous.
1306          (6) For a special district created before May 5, 2008, the authority to provide fire
1307     protection service also includes the authority to provide:
1308          (a) paramedic service; and
1309          (b) emergency service, including hazardous materials response service.
1310          (7) A special district created before May 11, 2010, authorized to provide the
1311     construction and maintenance of curb, gutter, or sidewalk may provide a service described in
1312     Subsection (1)(a)(x) on or after May 11, 2010.
1313          (8) A special district created before May 10, 2011, authorized to provide culinary,
1314     irrigation, sewage, or storm water services may provide a service described in Subsection
1315     (1)(a)(xii) on or after May 10, 2011.
1316          (9) A special district may not be created under this chapter for two years after the date
1317     on which a special district is dissolved as provided in Section 17B-1-217 if the special district
1318     proposed for creation:
1319          (a) provides the same or a substantially similar service as the dissolved special district;
1320     and
1321          (b) is located in substantially the same area as the dissolved special district.
1322          (10) An infrastructure financing district may not be created unless the estimated cost of
1323     the public infrastructure and improvements to be constructed within the boundary of the
1324     proposed infrastructure financing district exceeds $1,000,000, as certified under Subsection
1325     17B-1-208(1)(c).
1326          (11) (a) Except as provided in Subsection (11)(b), the inclusion of an area within an
1327     infrastructure financing district does not affect whether the area may be included within

1328     another special district.
1329          (b) An infrastructure financing district may not include an area included within another
1330     infrastructure financing district.
1331          Section 13. Section 17B-1-203 is amended to read:
1332          17B-1-203. Process to initiate the creation of a special district -- Petition or
1333     resolution.
1334          (1) The process to create a special district may be initiated by:
1335          (a) unless the proposed special district is a special district to acquire or assess a
1336     groundwater right under Section 17B-1-202, and subject to Section 17B-1-204, a petition
1337     signed by the owners of private real property that:
1338          (i) is located within the proposed special district;
1339          (ii) covers at least 33% of the total private land area within the proposed special district
1340     as a whole and within each applicable area;
1341          (iii) is equal in value to at least 25% of the value of all private real property within the
1342     proposed special district as a whole and within each applicable area; and
1343          (iv) complies with the requirements of Subsection 17B-1-205(1) and Section
1344     17B-1-208;
1345          (b) subject to Section 17B-1-204, a petition that:
1346          (i) is signed by registered voters residing within the proposed special district as a whole
1347     and within each applicable area, equal in number to at least 33% of the number of votes cast in
1348     the proposed special district as a whole and in each applicable area, respectively, for the office
1349     of governor at the last regular general election prior to the filing of the petition; and
1350          (ii) complies with the requirements of Subsection 17B-1-205(1) and Section
1351     17B-1-208;
1352          (c) if the proposed special district is a special district to acquire or assess a
1353     groundwater right under Section 17B-1-202, and subject to Section 17B-1-204, a petition
1354     signed by the owners of groundwater rights that:
1355          (i) are diverted within the proposed special district;
1356          (ii) cover at least 33% of the total amount of groundwater diverted in accordance with
1357     groundwater rights within the proposed special district as a whole and within each applicable
1358     area; and

1359          (iii) comply with the requirements of Subsection 17B-1-205(1) and Section 17B-1-208;
1360          (d) for the creation of an infrastructure financing district, a petition signed by 100% of
1361     the owners of surface property within the applicable area;
1362          [(d)] (e) a resolution proposing the creation of a special district, adopted by the
1363     legislative body of each county whose unincorporated area, whether in whole or in part,
1364     includes and each municipality whose boundaries include any of the proposed special district;
1365     or
1366          [(e)] (f) a resolution proposing the creation of a special district, adopted by the board of
1367     trustees of an existing special district whose boundaries completely encompass the proposed
1368     special district, if:
1369          (i) the proposed special district is being created to provide one or more components of
1370     the same service that the initiating special district is authorized to provide; and
1371          (ii) the initiating special district is not providing to the area of the proposed special
1372     district any of the components that the proposed special district is being created to provide.
1373          (2) (a) Each resolution under Subsection [(1)(d) or (e)] (1)(e) or (f) shall:
1374          (i) describe the area proposed to be included in the proposed special district;
1375          (ii) be accompanied by a map that shows the boundaries of the proposed special
1376     district;
1377          (iii) describe the service proposed to be provided by the proposed special district;
1378          (iv) if the resolution proposes the creation of a specialized special district, specify the
1379     type of specialized special district proposed to be created;
1380          (v) explain the anticipated method of paying the costs of providing the proposed
1381     service;
1382          (vi) state the estimated average financial impact on a household within the proposed
1383     special district;
1384          (vii) state the number of members that the board of trustees of the proposed special
1385     district will have, consistent with the requirements of Subsection [17B-1-302(4)]
1386     17B-1-302(8);
1387          (viii) for a proposed basic special district:
1388          (A) state whether the members of the board of trustees will be elected or appointed or
1389     whether some members will be elected and some appointed, as provided in Section

1390     17B-1-1402;
1391          (B) if one or more members will be elected, state the basis upon which each elected
1392     member will be elected; and
1393          (C) if applicable, explain how the election or appointment of board members will
1394     transition from one method to another based on stated milestones or events, as provided in
1395     Section 17B-1-1402;
1396          (ix) for a proposed improvement district whose remaining area members or county
1397     members, as those terms are defined in Section 17B-2a-404, are to be elected, state that those
1398     members will be elected; and
1399          (x) for a proposed service area that is entirely within the unincorporated area of a single
1400     county, state whether the initial board of trustees will be:
1401          (A) the county legislative body;
1402          (B) appointed as provided in Section 17B-1-304; or
1403          (C) elected as provided in Section 17B-1-306.
1404          (b) Each county or municipal legislative body adopting a resolution under Subsection
1405     [(1)(d)] (1)(e) shall, on or before the first public hearing under Section 17B-1-210, mail or
1406     deliver a copy of the resolution to the responsible body if the county or municipal legislative
1407     body's resolution is one of multiple resolutions adopted by multiple county or municipal
1408     legislative bodies proposing the creation of the same special district.
1409          Section 14. Section 17B-1-204 is amended to read:
1410          17B-1-204. Request for service required before filing of petition -- Request
1411     requirements.
1412          (1) [A] Except for a petition for the creation of an infrastructure financing district, a
1413     petition may not be filed until after:
1414          (a) a request has been filed with:
1415          (i) the clerk of each county in whose unincorporated area any part of the proposed
1416     special district is located; and
1417          (ii) the clerk or recorder of each municipality in which any part of the proposed special
1418     district is located; and
1419          (b) each county and municipality with which a request under Subsection (1)(a) is filed:
1420          (i) has adopted a resolution under Subsection 17B-1-212(1) indicating whether it will

1421     provide the requested service; or
1422          (ii) is considered to have declined to provide the requested service under Subsection
1423     17B-1-212(2) or (3).
1424          (2) Each request under Subsection (1)(a) shall:
1425          (a) ask the county or municipality to provide the service proposed to be provided by the
1426     proposed special district within the applicable area; and
1427          (b) be signed by:
1428          (i) unless the request is a request to create a special district to acquire or assess a
1429     groundwater right under Section 17B-1-202, the owners of private real property that:
1430          (A) is located within the proposed special district;
1431          (B) covers at least 10% of the total private land area within the applicable area; and
1432          (C) is equal in value to at least 7% of the value of all private real property within the
1433     applicable area;
1434          (ii) if the request is a request to create a special district to acquire or assess a
1435     groundwater right under Section 17B-1-202, the owners of groundwater rights that:
1436          (A) are diverted within the proposed special district; and
1437          (B) cover at least 10% of the amount of groundwater diverted in accordance with
1438     groundwater rights within the applicable area; or
1439          (iii) registered voters residing within the applicable area equal in number to at least
1440     10% of the number of votes cast in the applicable area for the office of governor at the last
1441     general election prior to the filing of the request.
1442          (3) For purposes of Subsections (1) and (2), an area proposed to be annexed to a
1443     municipality in a petition under Section 10-2-403 filed before and still pending at the time of
1444     filing of a petition shall be considered to be part of that municipality.
1445          Section 15. Section 17B-1-205 is amended to read:
1446          17B-1-205. Petition and request requirements -- Withdrawal of signature.
1447          (1) Each petition and request shall:
1448          (a) indicate the typed or printed name and current residence address of each property
1449     owner, groundwater right owner, or registered voter signing the petition;
1450          (b) (i) if it is a property owner request or petition, indicate the address of the property
1451     as to which the owner is signing the request or petition; or

1452          (ii) if it is a groundwater right owner request or petition, indicate the location of the
1453     diversion of the groundwater as to which the owner is signing the groundwater right owner
1454     request or petition;
1455          (c) describe the entire area of the proposed special district;
1456          (d) be accompanied by a map showing the boundaries of the entire proposed special
1457     district;
1458          (e) specify the service proposed to be provided by the proposed special district;
1459          (f) if the petition or request proposes the creation of a specialized special district,
1460     specify the type of specialized special district proposed to be created;
1461          (g) for a proposed basic special district:
1462          (i) state whether the members of the board of trustees will be elected or appointed or
1463     whether some members will be elected and some appointed, as provided in Section
1464     17B-1-1402;
1465          (ii) if one or more members will be elected, state the basis upon which each elected
1466     member will be elected; and
1467          (iii) if applicable, explain how the election or appointment of board members will
1468     transition from one method to another based on stated milestones or events, as provided in
1469     Section 17B-1-1402;
1470          (h) for a proposed improvement district whose remaining area members or county
1471     members, as those terms are defined in Section 17B-2a-404, are to be elected, state that those
1472     members will be elected; [and]
1473          (i) for a proposed service area that is entirely within the unincorporated area of a single
1474     county, state whether the initial board of trustees will be:
1475          (i) the county legislative body;
1476          (ii) appointed as provided in Section 17B-1-304; or
1477          (iii) elected as provided in Section 17B-1-306;
1478          (j) designate up to five signers of the petition or request as sponsors, one of whom shall
1479     be designated as the contact sponsor, with the mailing address and telephone number of each;
1480          (k) if the petition or request is a groundwater right owner petition or request proposing
1481     the creation of a special district to acquire a groundwater right under Section 17B-1-202,
1482     explain the anticipated method:

1483          (i) of paying for the groundwater right acquisition; and
1484          (ii) of addressing blowing dust created by the reduced use of water; [and]
1485          (l) if the petition or request is a groundwater right owner petition or request proposing
1486     the creation of a special district to assess a groundwater right under Section 17B-1-202, explain
1487     the anticipated method:
1488          (i) of assessing the groundwater right and securing payment of the assessment; and
1489          (ii) of addressing blowing dust created by the reduced use of water[.]; and
1490          (m) for a proposed infrastructure financing district:
1491          (i) state whether the members of the board of trustees will be elected or appointed or
1492     whether some members will be elected and some appointed;
1493          (ii) if one or more members will be elected, state the basis upon which each elected
1494     member will be elected;
1495          (iii) explain how appointed board member positions will transition to elected board
1496     member positions based on stated milestones or events, as provided in Section 17B-2a-1303;
1497          (iv) state whether divisions will be established within the boundary of the
1498     infrastructure financing district so that some or all board members represent a division rather
1499     than the district at large and, if so, describe the boundary of each division; and
1500          (v) if applicable, be accompanied by the governing document prepared according to
1501     Section 17B-2a-1303.
1502          (2) (a) [A] Subject to Subsection (2)(b), a signer of a request or petition may withdraw
1503     or, once withdrawn, reinstate the signer's signature at any time before the filing of the request
1504     or petition by filing a written withdrawal or reinstatement with:
1505          [(a)] (i) in the case of a request:
1506          [(i)] (A) the clerk of the county or the clerk or recorder of the municipality in whose
1507     applicable area the signer's property is located, if the request is a property owner request;
1508          [(ii)] (B) the clerk of the county or the clerk or recorder of the municipality in whose
1509     applicable area the signer's groundwater diversion point is located, if the request is a
1510     groundwater right owner request; or
1511          [(iii)] (C) the clerk of the county or the clerk or recorder of the municipality in whose
1512     applicable area the signer resides, if the request is a registered voter request; or
1513          [(b)] (ii) in the case of a petition, the responsible clerk.

1514          (b) The time for a signer of a petition for the creation of an infrastructure financing
1515     district to withdraw or reinstate the signer's signature is any time before the petition is certified
1516     under Section 17B-1-209.
1517          (3) (a) A clerk of the county who receives a timely, valid written withdrawal or
1518     reinstatement from a signer of a registered voter request or registered voter petition shall use
1519     the procedures described in Subsection 20A-1-1003(3) to determine whether to remove or
1520     reinstate the individual's signature.
1521          (b) If a municipal clerk or recorder receives a timely, valid written withdrawal or
1522     reinstatement from a signer of a registered voter request or registered voter petition, the clerk of
1523     the municipality's county shall assist the municipal clerk or recorder with determining whether
1524     to remove or reinstate the individual's signature using the procedures described in Subsection
1525     20A-1-1003(3).
1526          Section 16. Section 17B-1-208 is amended to read:
1527          17B-1-208. Additional petition requirements and limitations.
1528          (1) (a) Each petition shall:
1529          [(a)] (i) be filed with the responsible clerk;
1530          [(b)] (ii) separately group signatures by county and municipality, so that all signatures
1531     of the owners of real property located within or of registered voters residing within each county
1532     whose unincorporated area includes and each municipality whose boundaries include part of
1533     the proposed special district are grouped separately; and
1534          [(c)] (iii) (A) state the number of members that the board of trustees of the proposed
1535     special district will have, consistent with the requirements of Subsection [17B-1-302(4).]; and
1536          (B) for a petition proposing the creation of an infrastructure financing district, include
1537     the name and address of each of the proposed board members.
1538          (b) (i) A petition for the creation of an infrastructure financing district shall state the
1539     name of the proposed infrastructure financing district.
1540          (ii) The name of an infrastructure financing district shall include the phrase
1541     "infrastructure financing district."
1542          (c) A petition for the creation of an infrastructure financing district shall be
1543     accompanied by a written statement, signed by an engineer licensed under Title 58, Chapter 22,
1544     Professional Engineers and Professional Land Surveyors, certifying that the estimated cost of

1545     the public infrastructure and improvements to be constructed in the proposed infrastructure
1546     financing district exceeds $1,000,000.
1547          (2) (a) A petition may not propose the creation of a special district that includes an area
1548     located within the unincorporated part of a county or within a municipality if the legislative
1549     body of that county or municipality has adopted a resolution under Subsection 17B-1-212(1)
1550     indicating that the county or municipality will provide to that area the service proposed to be
1551     provided by the proposed special district.
1552          (b) Subsection (2)(a) does not apply if the county or municipal legislative body is
1553     considered to have declined to provide the requested service under Subsection 17B-1-212(3).
1554          (c) Subsection (2)(a) may not be construed to prevent the filing of a petition that
1555     proposes the creation of a special district whose area excludes that part of the unincorporated
1556     area of a county or that part of a municipality to which the county or municipality has
1557     indicated, in a resolution adopted under Section 17B-1-212, it will provide the requested
1558     service.
1559          (3) A petition may not propose the creation of a special district whose area includes:
1560          (a) some or all of an area described in a previously filed petition that, subject to
1561     Subsection 17B-1-202(4)(b):
1562          (i) proposes the creation of a special district to provide the same service as proposed by
1563     the later filed petition; and
1564          (ii) is still pending at the time the later petition is filed; or
1565          (b) some or all of an area within a political subdivision that provides in that area the
1566     same service proposed to be provided by the proposed special district.
1567          (4) A petition may not be filed more than 12 months after a county or municipal
1568     legislative body declines to provide the requested service under Subsection 17B-1-212(1) or is
1569     considered to have declined to provide the requested service under Subsection 17B-1-212(2) or
1570     (3).
1571          Section 17. Section 17B-1-209 is amended to read:
1572          17B-1-209. Petition certification -- Amended petition.
1573          (1) No later than five days after the day on which a petition is filed, the responsible
1574     clerk shall mail a copy of the petition to the clerk of each other county and the clerk or recorder
1575     of each municipality in which any part of the proposed special district is located.

1576          (2) (a) No later than 35 days after the day on which a petition is filed, the clerk of each
1577     county whose unincorporated area includes and the clerk or recorder of each municipality
1578     whose boundaries include part of the proposed special district shall:
1579          (i) with the assistance of other county or municipal officers from whom the county
1580     clerk or municipal clerk or recorder requests assistance, determine, for the clerk or recorder's
1581     respective county or municipality, whether the petition complies with the requirements of
1582     Subsection 17B-1-203(1)(a), (b), [or] (c), or (d), as the case may be, and Subsections
1583     17B-1-208(2), (3), and (4); and
1584          (ii) notify the responsible clerk in writing of the clerk or recorder's determination under
1585     Subsection (2)(a)(i).
1586          (b) The responsible clerk may rely on the determinations of other county clerks or
1587     municipal clerks or recorders under Subsection (2)(a) in making the responsible clerk's
1588     determinations and certification or rejection under Subsection (3).
1589          (3) (a) Within 45 days after the filing of a petition, the responsible clerk shall[: (i)]
1590     determine whether the petition complies with Subsection 17B-1-203(1)(a), (b), [or] (c), or (d),
1591     as the case may be, Subsection 17B-1-205(1), and Section 17B-1-208[; and].
1592          [(ii) (A) if] (b) (i) If the responsible clerk determines that the petition complies with the
1593     applicable requirements, the responsible clerk shall, within the time specified in Subsection
1594     (3)(a):
1595          [(I)] (A) [(Aa)] certify the petition [and] as complying with all applicable requirements;
1596          (B) deliver the certified petition [to the responsible body] as provided in Subsection
1597     (3)(b)(iii); and
1598          [(Bb)] (C) mail or deliver written notification of the certification and a copy of the
1599     certified petition to the contact sponsor[; or].
1600          [(II)] (ii) [for] For each petition described in Subsection [(3)(b)(i),] (3)(e)(i), the
1601     responsible clerk shall, within the time specified in Subsection (3)(a), deliver a copy of the
1602     petition to the legislative body of each county whose unincorporated area includes and each
1603     municipality whose boundaries include any of the proposed basic special district, with a notice
1604     indicating that the clerk has determined that the petition complies with all applicable
1605     requirements[; or].
1606          (iii) (A) Except as provided in Subsection (3)(b)(iii)(B), the responsible clerk shall

1607     deliver the certified petition to the responsible body.
1608          (B) For a petition proposing the creation of an infrastructure financing district, the
1609     responsible clerk shall deliver the certified petition to the lieutenant governor.
1610          (iv) If the responsible clerk certifies a petition proposing the creation of an
1611     infrastructure district, the responsible clerk shall, within the time specified in Subsection (3)(a),
1612     file with the lieutenant governor, in addition to the certified petition:
1613          (A) a copy of a notice of an impending boundary action, as defined in Section
1614     67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
1615          (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
1616          [(B)] (c) [if] If the responsible clerk determines that the petition fails to comply with
1617     any of the applicable requirements, the responsible clerk shall reject the petition and notify the
1618     contact sponsor in writing of the rejection and the reasons for the rejection.
1619          [(b)] (d) (i) A petition for which an election is not required under Subsection
1620     17B-1-214(3) and that proposes the creation of a basic special district that has within its
1621     boundaries fewer than one residential dwelling unit per 10 acres of land may not be certified
1622     without the approval, by resolution, of the legislative body of each county whose
1623     unincorporated area includes and each municipality whose boundaries include any of the
1624     proposed special district.
1625          (ii) Before adopting a resolution giving its approval under Subsection [(3)(b)(i)]
1626     (3)(d)(i), a county or municipal legislative body may hold one or more public hearings on the
1627     petition.
1628          (iii) If a petition described in Subsection [(3)(b)(i)] (3)(d)(i) is approved as provided in
1629     that subsection, the responsible clerk shall, within 10 days after its approval:
1630          (A) certify the petition and deliver the certified petition to the responsible body; and
1631          (B) mail or deliver written notification of the certification to the contact sponsor.
1632          (4) Except for a petition described in Subsection [(3)(b)(i)] (3)(d)(i), if the responsible
1633     clerk fails to certify or reject a petition within 45 days after [its filing] the petition is filed, the
1634     petition [shall be] is considered to be certified.
1635          (5) (a) If a petition for the creation of an infrastructure financing district is considered
1636     to be certified under Subsection (4) and the responsible clerk has failed to comply with the
1637     requirements of Subsection (3)(b)(iv), the petition sponsors may notify the lieutenant governor

1638     in writing that the petition is considered to be certified.
1639          (b) The petition sponsors notification to the lieutenant governor under Subsection
1640     (5)(a) shall be accompanied by:
1641          (i) the petition proposing the creation of an infrastructure financing district;
1642          (ii) a statement indicating the date that the petition was filed and certifying that the
1643     responsible clerk failed to certify the petition within the time specified in Subsection (3)(a);
1644          (iii) a copy of the engineer's written statement described in Subsection
1645     17B-1-208(1)(c);
1646          (iv) a copy of a notice of an impending boundary action, as defined in Section
1647     67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
1648          (v) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
1649          [(5)] (6) The responsible clerk shall certify or reject petitions in the order in which they
1650     are filed.
1651          [(6)] (7) (a) If the responsible clerk rejects a petition under Subsection [(3)(a)(ii)(B)]
1652     (3)(c), the petition may be amended to correct the deficiencies for which it was rejected and
1653     then refiled.
1654          (b) A valid signature on a petition that was rejected under Subsection [(3)(a)(ii)(B)]
1655     (3)(c) may be used toward fulfilling the applicable signature requirement of the petition as
1656     amended under Subsection (6)(a).
1657          (c) If a petition is amended and refiled under Subsection (6)(a) after having been
1658     rejected by the responsible clerk under Subsection [(3)(a)(ii)(B)] (3)(c), the amended petition
1659     shall be considered as newly filed, and its processing priority shall be determined by the date
1660     on which it is refiled.
1661          [(7)] (8) The responsible clerk and each county clerk and municipal clerk or recorder
1662     shall:
1663          (a) act in good faith in making the determinations under this section; and
1664          (b) with the assistance of the county clerk if necessary, and as applicable, use the
1665     procedures described in Section 20A-1-1002 to determine whether a signer is a registered
1666     voter.
1667          Section 18. Section 17B-1-210 is amended to read:
1668          17B-1-210. Public hearing.

1669          (1) The legislative body of each county and municipality with which a request is filed
1670     or that adopts a resolution under Subsection [17B-1-203(1)(d)] 17B-1-203(1)(e) and the board
1671     of trustees of each special district that adopts a resolution under Subsection [17B-1-203(1)(e)]
1672     17B-1-203(1)(f) shall hold a public hearing or a set of public hearings, sufficient in number and
1673     location to ensure that no substantial group of residents of the proposed special district need
1674     travel an unreasonable distance to attend a public hearing.
1675          (2) Each public hearing under Subsection (1) shall be held:
1676          (a) no later than 45 days after:
1677          (i) for a public hearing on a request, certification of a request under Subsection
1678     17B-1-206(1)(b)(i); or
1679          (ii) for a public hearing on a resolution, adoption of a resolution under Subsection
1680     [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f);
1681          (b) within the proposed special district;
1682          (c) except as provided in Subsections (6) and (7), within the applicable area; and
1683          (d) for the purpose of:
1684          (i) for a public hearing on a request, allowing public input on:
1685          (A) whether the requested service is needed in the area of the proposed special district;
1686          (B) whether the service should be provided by the county or municipality or the
1687     proposed special district; and
1688          (C) all other matters relating to the request or the proposed special district; or
1689          (ii) for a public hearing on a resolution, allowing the public to ask questions of and
1690     obtain further information from the governing body holding the hearing regarding the issues
1691     contained in or raised by the resolution.
1692          (3) A quorum of each governing body holding a public hearing under this section shall
1693     be present throughout each hearing held by that governing body.
1694          (4) Each hearing under this section shall be held on a weekday evening other than a
1695     holiday beginning no earlier than 6 p.m.
1696          (5) At the beginning and end of each hearing concerning a resolution, the governing
1697     body shall announce the deadline for filing protests and generally explain the protest procedure
1698     and requirements.
1699          (6) Two or more county or municipal legislative bodies may jointly hold a hearing or

1700     set of hearings required under this section if all the requirements of this section, other than the
1701     requirements of Subsection (2)(c), are met as to each hearing.
1702          (7) Notwithstanding Subsection (2)(c), a governing body may hold a public hearing or
1703     set of public hearings outside the applicable area if:
1704          (a) there is no reasonable place to hold a public hearing within the applicable area; and
1705          (b) the public hearing or set of public hearings is held as close to the applicable area as
1706     reasonably possible.
1707          Section 19. Section 17B-1-211 is amended to read:
1708          17B-1-211. Notice of public hearings -- Publication of resolution.
1709          (1) Before holding a public hearing or set of public hearings under Section 17B-1-210,
1710     the legislative body of each county or municipality with which a request is filed or that adopts a
1711     resolution under Subsection [17B-1-203(1)(d)] 17B-1-203(1)(e) and the board of trustees of
1712     each special district that adopts a resolution under Subsection [17B-1-203(1)(e)]
1713     17B-1-203(1)(f) shall publish notice for the proposed special district, as a class B notice under
1714     Section 63G-30-102, for at least two weeks before the day of the hearing or the day of the first
1715     of the set of hearings.
1716          (2) Each notice required under Subsection (1) shall:
1717          (a) if the hearing or set of hearings is concerning a resolution:
1718          (i) contain the entire text or an accurate summary of the resolution; and
1719          (ii) state the deadline for filing a protest against the creation of the proposed special
1720     district;
1721          (b) clearly identify each governing body involved in the hearing or set of hearings;
1722          (c) state the date, time, and place for the hearing or set of hearings and the purposes for
1723     the hearing or set of hearings; and
1724          (d) describe or include a map of the entire proposed special district.
1725          (3) County or municipal legislative bodies may jointly provide the notice required
1726     under this section if all the requirements of this section are met as to each notice.
1727          Section 20. Section 17B-1-213 is amended to read:
1728          17B-1-213. Protest after adoption of resolution -- Adoption of resolution
1729     approving creation for certain districts.
1730          (1) For purposes of this section, "adequate protests" means protests that are:

1731          (a) filed with the county clerk, municipal clerk or recorder, or special district secretary
1732     or clerk, as the case may be, within 60 days after the last public hearing required under Section
1733     17B-1-210; and
1734          (b) signed by:
1735          (i) the owners of private real property that:
1736          (A) is located within the proposed special district;
1737          (B) covers at least 25% of the total private land area within the applicable area; and
1738          (C) is equal in value to at least 15% of the value of all private real property within the
1739     applicable area; or
1740          (ii) registered voters residing within the applicable area equal in number to at least 25%
1741     of the number of votes cast in the applicable area for the office of president of the United States
1742     at the most recent election prior to the adoption of the resolution.
1743          (2) An owner may withdraw a protest at any time before the expiration of the 60-day
1744     period described in Subsection (1)(a).
1745          (3) If adequate protests are filed, the governing body that adopted a resolution under
1746     Subsection [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f):
1747          (a) may not:
1748          (i) hold or participate in an election under Subsection 17B-1-214(1) with respect to the
1749     applicable area;
1750          (ii) take any further action under the protested resolution to create a special district or
1751     include the applicable area in a special district; or
1752          (iii) for a period of two years, adopt a resolution under Subsection [17B-1-203(1)(d) or
1753     (e)] 17B-1-203(1)(e) or (f) proposing the creation of a special district including substantially
1754     the same area as the applicable area and providing the same service as the proposed special
1755     district in the protested resolution; and
1756          (b) shall, within five days after receiving adequate protests, mail or deliver written
1757     notification of the adequate protests to the responsible body.
1758          (4) Subsection (3)(a) may not be construed to prevent an election from being held for a
1759     proposed special district whose boundaries do not include an applicable area that is the subject
1760     of adequate protests.
1761          (5) (a) If adequate protests are not filed with respect to a resolution proposing the

1762     creation of a special district for which an election is not required under Subsection
1763     17B-1-214(3)(d), (e), (f), or (g), a resolution approving the creation of the special district shall
1764     be adopted by:
1765          (i) (A) the legislative body of a county whose unincorporated area is included within
1766     the proposed special district; and
1767          (B) the legislative body of a municipality whose area is included within the proposed
1768     special district; or
1769          (ii) the board of trustees of the initiating special district.
1770          (b) Each resolution adopted under Subsection (5)(a) shall:
1771          (i) describe the area included in the special district;
1772          (ii) be accompanied by a map that shows the boundaries of the special district;
1773          (iii) describe the service to be provided by the special district;
1774          (iv) state the name of the special district; and
1775          (v) provide a process for the appointment of the members of the initial board of
1776     trustees.
1777          Section 21. Section 17B-1-214 is amended to read:
1778          17B-1-214. Election -- Exceptions.
1779          (1) (a) Except as provided in Subsection (3) and in Subsection 17B-1-213(3)(a), an
1780     election on the question of whether the special district should be created shall be held by:
1781          (i) if the proposed special district is located entirely within a single county, the
1782     responsible clerk; or
1783          (ii) except as provided under Subsection (1)(b), if the proposed special district is
1784     located within more than one county, the clerk of each county in which part of the proposed
1785     special district is located, in cooperation with the responsible clerk.
1786          (b) Notwithstanding Subsection (1)(a)(ii), if the proposed special district is located
1787     within more than one county and the only area of a county that is included within the proposed
1788     special district is located within a single municipality, the election for that area shall be held by
1789     the municipal clerk or recorder, in cooperation with the responsible clerk.
1790          (2) Each election under Subsection (1) shall be held at the next special or regular
1791     general election date that is:
1792          (a) for an election pursuant to a property owner or registered voter petition, more than

1793     45 days after certification of the petition under [Subsection 17B-1-209(3)(a)] Subsections
1794     17B-1-209(3)(a), (b), and (c); or
1795          (b) for an election pursuant to a resolution, more than 60 days after the latest hearing
1796     required under Section 17B-1-210.
1797          (3) The election requirement of Subsection (1) does not apply to:
1798          (a) a petition filed under Subsection 17B-1-203(1)(a) if it contains the signatures of the
1799     owners of private real property that:
1800          (i) is located within the proposed special district;
1801          (ii) covers at least 67% of the total private land area within the proposed special district
1802     as a whole and within each applicable area; and
1803          (iii) is equal in value to at least 50% of the value of all private real property within the
1804     proposed special district as a whole and within each applicable area;
1805          (b) a petition filed under Subsection 17B-1-203(1)(b) if it contains the signatures of
1806     registered voters residing within the proposed special district as a whole and within each
1807     applicable area, equal in number to at least 67% of the number of votes cast in the proposed
1808     special district as a whole and in each applicable area, respectively, for the office of governor at
1809     the last general election prior to the filing of the petition;
1810          (c) a groundwater right owner petition filed under Subsection 17B-1-203(1)(c) if the
1811     petition contains the signatures of the owners of groundwater rights that:
1812          (i) are diverted within the proposed special district; and
1813          (ii) cover at least 67% of the total amount of groundwater diverted in accordance with
1814     groundwater rights within the proposed special district as a whole and within each applicable
1815     area;
1816          (d) a resolution adopted under Subsection [17B-1-203(1)(d)] 17B-1-203(1)(e) on or
1817     after May 5, 2003, that proposes the creation of a special district to provide fire protection,
1818     paramedic, and emergency services or law enforcement service, if the proposed special district:
1819          (i) includes the unincorporated area, whether in whole or in part, of one or more
1820     counties; or
1821          (ii) consists of an area that:
1822          (A) has a boundary that is the same as the boundary of the municipality whose
1823     legislative body adopts the resolution proposing the creation of the special district;

1824          (B) previously received fire protection, paramedic, and emergency services or law
1825     enforcement service from another special district; and
1826          (C) may be withdrawn from the other special district under Section 17B-1-505 without
1827     an election because the withdrawal is pursuant to an agreement under Subsection
1828     17B-1-505(5)(a)(ii)(A) or (5)(b);
1829          (e) a resolution adopted under Subsection [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or
1830     (f) if the resolution proposes the creation of a special district that has no registered voters
1831     within its boundaries;
1832          (f) a resolution adopted under Subsection [17B-1-203(1)(d)] 17B-1-203(1)(e) on or
1833     after May 11, 2010, that proposes the creation of a special district described in Subsection
1834     17B-1-202(1)(a)(xiii); [or]
1835          (g) a resolution adopted under Section 17B-2a-1105 to create a municipal services
1836     district; or
1837          (h) a petition for the creation of an infrastructure financing district.
1838          (4) (a) If the proposed special district is located in more than one county, the
1839     responsible clerk shall coordinate with the clerk of each other county and the clerk or recorder
1840     of each municipality involved in an election under Subsection (1) so that the election is held on
1841     the same date and in a consistent manner in each jurisdiction.
1842          (b) The clerk of each county and the clerk or recorder of each municipality involved in
1843     an election under Subsection (1) shall cooperate with the responsible clerk in holding the
1844     election.
1845          (c) Except as otherwise provided in this part, each election under Subsection (1) shall
1846     be governed by Title 20A, Election Code.
1847          Section 22. Section 17B-1-215 is amended to read:
1848          17B-1-215. Notice and plat to lieutenant governor -- Recording requirements --
1849     Certificate of incorporation -- Special district incorporated as specialized special district
1850     or basic special district -- Effective date.
1851          (1) (a) Within the time specified in Subsection (1)(b) and except as provided in Section
1852     17B-1-209 for a petition proposing the creation of an infrastructure financing district, the
1853     responsible body shall file with the lieutenant governor:
1854          (i) if applicable, a copy of the petition certified, under Section 17B-1-209, as

1855     complying with all applicable requirements;
1856          [(i)] (ii) a copy of a notice of an impending boundary action, as defined in Section
1857     67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
1858          [(ii)] (iii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
1859          (b) The responsible body shall file the documents listed in Subsection (1)(a) with the
1860     lieutenant governor within 10 days after:
1861          (i) the canvass of an election under Section 17B-1-214, if a majority of those voting at
1862     the election within the proposed special district as a whole vote in favor of the creation of a
1863     special district;
1864          (ii) certification of a petition as to which the election requirement of Subsection
1865     17B-1-214(1) does not apply because of Subsection 17B-1-214(3)(a), (b), [or] (c), or (h); or
1866          (iii) adoption of a resolution, under Subsection 17B-1-213(5) approving the creation of
1867     a special district for which an election was not required under Subsection 17B-1-214(3)(d), (e),
1868     (f), or (g) by the legislative body of each county whose unincorporated area is included within
1869     and the legislative body of each municipality whose area is included within the proposed
1870     special district, or by the board of trustees of the initiating special district.
1871          (2) Upon the lieutenant governor's issuance of a certificate of incorporation under
1872     Section 67-1a-6.5, the responsible body shall:
1873          (a) if the special district is located within the boundary of a single county, submit to the
1874     recorder of that county:
1875          (i) the original:
1876          (A) notice of an impending boundary action;
1877          (B) certificate of incorporation; and
1878          (C) approved final local entity plat; and
1879          (ii) if applicable, a certified copy of each resolution adopted under Subsection
1880     17B-1-213(5); or
1881          (b) if the special district is located within the boundaries of more than a single county:
1882          (i) submit to the recorder of one of those counties:
1883          (A) the original of the documents listed in Subsections (2)(a)(i)(A), (B), and (C); and
1884          (B) if applicable, a certified copy of each resolution adopted under Subsection
1885     17B-1-213(5); and

1886          (ii) submit to the recorder of each other county:
1887          (A) a certified copy of the documents listed in Subsection (2)(a)(i)(A), (B), and (C);
1888     and
1889          (B) if applicable, a certified copy of each resolution adopted under Subsection
1890     17B-1-213(5).
1891          (3) The area of each special district consists of:
1892          (a) if an election was held under Section 17B-1-214, the area of the new special district
1893     as approved at the election;
1894          (b) if an election was not required because of Subsection 17B-1-214(3)(a), (b), [or] (c),
1895     or (h), the area of the proposed special district as described in the petition; or
1896          (c) if an election was not required because of Subsection 17B-1-214(3)(d), (e), (f), or
1897     (g), the area of the new special district as described in the resolution adopted under Subsection
1898     17B-1-213(5).
1899          (4) (a) Upon the lieutenant governor's issuance of the certificate of incorporation under
1900     Section 67-1a-6.5, the special district is created and incorporated as:
1901          (i) the type of specialized special district that was specified in the petition under
1902     Subsection 17B-1-203(1)(a), (b), [or] (c), or (d) or resolution under Subsection
1903     [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f), if the petition or resolution proposed the
1904     creation of a specialized special district; or
1905          (ii) a basic special district, if the petition or resolution did not propose the creation of a
1906     specialized special district.
1907          (b) (i) The effective date of a special district's incorporation for purposes of assessing
1908     property within the special district is governed by Section 59-2-305.5.
1909          (ii) Until the documents listed in Subsection (2) are recorded in the office of the
1910     recorder of each county in which the property is located, a newly incorporated special district
1911     may not:
1912          (A) levy or collect a property tax on property within the special district;
1913          (B) levy or collect an assessment on property within the special district; [or]
1914          (C) charge or collect a fee for service provided to property within the special district[.];
1915     or
1916          (D) issue bonds.

1917          Section 23. Section 17B-1-216 is amended to read:
1918          17B-1-216. Costs and expenses of creating a special district.
1919          (1) (a) Except as provided in Subsection (2) and subject to Subsection (1)(b), each
1920     county whose unincorporated area includes and each municipality whose boundaries include
1921     some or all of the proposed special district shall bear their respective costs and expenses
1922     associated with the procedure under this part for creating a special district.
1923          [(2)] (b) Within a year after its creation, each special district shall reimburse the costs
1924     and expenses associated with the preparation, certification, and recording of the approved final
1925     local entity plat of the special district and accompanying documents under Section 17B-1-215.
1926          (2) (a) Subject to Subsection (2)(b), the sponsors of a petition for the creation of an
1927     infrastructure financing district shall bear the costs and expenses associated with the procedure
1928     under this part for creating the infrastructure financing district.
1929          (b) An infrastructure financing district may reimburse petition sponsors the costs and
1930     expenses the petition sponsors paid under Subsection (2)(a).
1931          Section 24. Section 17B-1-219 is enacted to read:
1932          17B-1-219. Provisions not applicable to the creation of an infrastructure financing
1933     district.
1934          Sections 17B-1-210, 17B-1-211, 17B-1-212, 17B-1-213 do not apply to the proposed
1935     creation of an infrastructure financing district.
1936          Section 25. Section 17B-1-302 is amended to read:
1937          17B-1-302. Board member qualifications -- Number of board members.
1938          (1) Except as provided in Section 17B-2a-905, each member of a special district board
1939     of trustees shall be:
1940          (a) a registered voter at the location of the member's residence; and
1941          (b) except as otherwise provided in Subsection (2) [or], (3), or (4), a resident within:
1942          (i) the boundaries of the special district; and
1943          (ii) if applicable, the boundaries of the division of the special district from which the
1944     member is elected or appointed.
1945          (2) (a) As used in this Subsection (2):
1946          (i) "Proportional number" means the number of members of a board of trustees that
1947     bears, as close as mathematically possible, the same proportion to all members of the board that

1948     the number of seasonally occupied homes bears to all residences within the district that receive
1949     service from the district.
1950          (ii) "Seasonally occupied home" means a single-family residence:
1951          (A) that is located within the special district;
1952          (B) that receives service from the special district; and
1953          (C) whose owner occupies the residence on a temporary or seasonal basis, rather than
1954     as the principal place of residence as defined in Section 20A-2-105.
1955          (b) If over 50% of the residences within a special district that receive service from the
1956     special district are seasonally occupied homes, the requirement under Subsection (1)(b) is
1957     replaced, for a proportional number of members of the board of trustees, with the requirement
1958     that the member be an owner of land, or an agent or officer of the owner of land:
1959          (i) that receives, or intends to receive, service from the district; and
1960          (ii) that is located within the special district and, if applicable, the division from which
1961     the member is elected.
1962          (3) (a) [For] Subsection (3)(b) applies to a board of trustees member in:
1963          (i) a basic special district[, or in];
1964          (ii) any other type of special district that is located solely within a county of the fourth,
1965     fifth, or sixth class, that has within the district's boundaries fewer than one residential dwelling
1966     unit per 10 acres of land[,]; or
1967          (iii) an infrastructure financing district.
1968          (b) For a board of trustees member in a special district listed in Subsection (3)(a), the
1969     board of trustees may replace the requirement under Subsection (1)(b) [may be replaced by]
1970     with the requirement that the member be:
1971          (i) a resident within the boundaries of the special district; or
1972          (ii) an owner of land, or an agent or officer of the owner of land, that:
1973          (A) is located within the special district [that]; and
1974          (B) receives, or [intends] is expected to receive, service from the district.
1975          (4) A board member of an infrastructure financing district is not required to be a
1976     resident within the boundary of the infrastructure financing district if:
1977          (a) all owners of surface property within the district waive the residency requirement;
1978          (b) the district boundary does not include any residents; or

1979          (c) (i) in the case of an appointed board position, no qualified individual timely files to
1980     be considered for appointment to the board; or
1981          (ii) in the case of an elected board position, no qualified individual files a declaration
1982     of candidacy for the board position under Subsection 17B-1-306(5).
1983          [(b)] (5) A member of the board of trustees of a service area described in Subsection
1984     17B-2a-905(2)(a) or (3)(a), who is an elected official of the county appointing the individual, is
1985     not subject to the requirements described in Subsection (1)(b) if the elected official was elected
1986     at large by the voters of the county.
1987          [(c)] (6) Notwithstanding Subsection (1)(b) and except as provided in Subsection
1988     [(3)(d)] (7), the county legislative body may appoint to the special district board one of the
1989     county legislative body's own members, regardless of whether the member resides within the
1990     boundaries described in Subsection (1)(b), if:
1991          [(i)] (a) the county legislative body satisfies the procedures to fill a vacancy described
1992     in:
1993          [(A)] (i) for the appointment of a new board member, Subsections 17B-1-304(2) and
1994     (3); or
1995          [(B)] (ii) for an appointment to fill a midterm vacancy, Subsection 20A-1-512(1)(a)(ii)
1996     or Subsection 20A-1-512(2);
1997          [(ii)] (b) fewer qualified candidates timely file to be considered for appointment to the
1998     special district board than are necessary to fill the board;
1999          [(iii)] (c) the county legislative body appoints each of the qualified candidates who
2000     timely filed to be considered for appointment to the board; and
2001          [(iv)] (d) the county legislative body appoints a member of the body to the special
2002     district board, in accordance with Subsection 17B-1-304(6) or Subsection 20A-1-512(1)(c),
2003     who was:
2004          [(A)] (i) elected at large by the voters of the county;
2005          [(B)] (ii) elected from a division of the county that includes more than 50% of the
2006     geographic area of the special district; or
2007          [(C)] (iii) if the special district is divided into divisions under Section 17B-1-306.5,
2008     elected from a division of the county that includes more than 50% of the geographic area of the
2009     division of the special district in which there is a board vacancy.

2010          [(d)] (7) If it is necessary to reconstitute the board of trustees of a special district
2011     located solely within a county of the fourth, fifth, or sixth class because the term of a majority
2012     of the members of the board has expired without new trustees having been elected or appointed
2013     as required by law, even if sufficient qualified candidates timely file to be considered for a
2014     vacancy on the board, the county legislative body may appoint to the special district board no
2015     more than one of the county legislative body's own members who does not satisfy the
2016     requirements of Subsection (1).
2017          [(4)] (8) (a) Except as otherwise provided by statute, the number of members of each
2018     board of trustees of a special district that has nine or fewer members shall have an odd number
2019     of members that is no fewer than three.
2020          (b) If a board of trustees of a special district has more than nine members, the number
2021     of members may be odd or even.
2022          [(5)] (9) For a newly created special district, the number of members of the initial
2023     board of trustees shall be the number specified:
2024          (a) for a special district whose creation was initiated by a petition under Subsection
2025     17B-1-203(1)(a), (b), [or] (c), or (d), in the petition; or
2026          (b) for a special district whose creation was initiated by a resolution under Subsection
2027     [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f), in the resolution.
2028          [(6)] (10) (a) For an existing special district, the number of members of the board of
2029     trustees may be changed by a two-thirds vote of the board of trustees.
2030          (b) No change in the number of members of a board of trustees under Subsection
2031     [(6)(a)] (10)(a) may:
2032          (i) violate Subsection [(4)] (8); or
2033          (ii) serve to shorten the term of any member of the board.
2034          Section 26. Section 17B-1-303 is amended to read:
2035          17B-1-303. Term of board of trustees members -- Oath of office -- Bond -- Notice
2036     of board member contact information.
2037          (1) (a) Except as provided in Subsections (1)(b), (c), (d), and (e), the term of each
2038     member of a board of trustees begins at noon on the January 1 following the member's election
2039     or appointment.
2040          (b) The term of each member of the initial board of trustees of a newly created special

2041     district begins:
2042          (i) upon appointment, for an appointed member; and
2043          (ii) upon the member taking the oath of office after the canvass of the election at which
2044     the member is elected, for an elected member.
2045          (c) The term of each water conservancy district board member whom the governor
2046     appoints in accordance with Subsection 17B-2a-1005(2)(c):
2047          (i) begins on the later of the following:
2048          (A) the date on which the Senate consents to the appointment; or
2049          (B) the expiration date of the prior term; and
2050          (ii) ends on the February 1 that is approximately four years after the date described in
2051     Subsection (1)(c)(i)(A) or (B).
2052          (d) The term of a member of a board of trustees whom an appointing authority appoints
2053     in accordance with Subsection (5)(b) begins upon the member taking the oath of office.
2054          (e) If the member of the board of trustees fails to assume or qualify for office on
2055     January 1 for any reason, the term begins on the date the member assumes or qualifies for
2056     office.
2057          (2) (a) (i) Except as provided in Subsection (8), and subject to Subsections (2)(a)(ii)
2058     and (iii), the term of each member of a board of trustees is four years, except that:
2059          (A) approximately half the members of the initial board of trustees of an infrastructure
2060     financing district, as designated in the governing document, shall serve a six-year term so that
2061     the term of approximately half the board members expires every two years; and
2062          (B) for any other special district, approximately half the members of the initial board of
2063     trustees, chosen by lot, shall serve a two-year term so that the term of approximately half the
2064     board members expires every two years.
2065          (ii) If the terms of members of the initial board of trustees of a newly created special
2066     district do not begin on January 1 because of application of Subsection (1)(b), the terms of
2067     those members shall be adjusted as necessary, subject to Subsection (2)(a)(iii), to result in the
2068     terms of their successors complying with:
2069          (A) the requirement under Subsection (1)(a) for a term to begin on January 1 following
2070     a member's election or appointment; and
2071          (B) the requirement under Subsection (2)(a)(i) that terms be four years.

2072          (iii) If the term of a member of a board of trustees does not begin on January 1 because
2073     of the application of Subsection (1)(e), the term is shortened as necessary to result in the term
2074     complying with the requirement under Subsection (1)(a) that the successor member's term,
2075     regardless of whether the incumbent is the successor, begins at noon on January 1 following the
2076     successor member's election or appointment.
2077          (iv) An adjustment under Subsection (2)(a)(ii) may not add more than a year to or
2078     subtract more than a year from a member's term.
2079          (b) Each board of trustees member shall serve until a successor is duly elected or
2080     appointed and qualified, unless the member earlier is removed from office or resigns or
2081     otherwise leaves office.
2082          (c) If a member of a board of trustees no longer meets the qualifications of Subsection
2083     17B-1-302(1), (2), [or] (3), (4), (5), (6), or (7), or if the member's term expires without a duly
2084     elected or appointed successor:
2085          (i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
2086          (ii) the member may continue to serve until a successor is duly elected or appointed
2087     and qualified.
2088          (3) (a) (i) Before entering upon the duties of office, each member of a board of trustees
2089     shall take the oath of office specified in Utah Constitution, Article IV,
2090     Section 10.
2091          (ii) A judge, county clerk, notary public, or the special district clerk may administer an
2092     oath of office.
2093          (b) The member of the board of trustees taking the oath of office shall file the oath of
2094     office with the clerk of the special district.
2095          (c) The failure of a board of trustees member to take the oath under Subsection (3)(a)
2096     does not invalidate any official act of that member.
2097          (4) A board of trustees member may serve any number of terms.
2098          (5) (a) Except as provided in Subsection (6), each midterm vacancy in a board of
2099     trustees position is filled in accordance with Section 20A-1-512.
2100          (b) When the number of members of a board of trustees increases in accordance with
2101     Subsection [17B-1-302(6)] 17B-1-302(10), the appointing authority may appoint an individual
2102     to fill a new board of trustees position in accordance with Section 17B-1-304 or 20A-1-512.

2103          (6) (a) As used in this Subsection (6):
2104          (i) "Appointed official" means a person who:
2105          (A) is appointed as a member of a special district board of trustees by a county or
2106     municipality that is entitled to appoint a member to the board; and
2107          (B) holds an elected position with the appointing county or municipality.
2108          (ii) "Appointing entity" means the county or municipality that appointed the appointed
2109     official to the board of trustees.
2110          (b) The board of trustees shall declare a midterm vacancy for the board position held
2111     by an appointed official if:
2112          (i) during the appointed official's term on the board of trustees, the appointed official
2113     ceases to hold the elected position with the appointing entity; and
2114          (ii) the appointing entity submits a written request to the board to declare the vacancy.
2115          (c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the
2116     appointing entity shall appoint another person to fill the remaining unexpired term on the board
2117     of trustees.
2118          (7) (a) A member of a board of trustees shall obtain a fidelity bond or obtain theft or
2119     crime insurance for the faithful performance of the member's duties, in the amount and with the
2120     sureties or with an insurance company that the board of trustees prescribes.
2121          (b) The special district:
2122          (i) may assist the board of trustees in obtaining a fidelity bond or obtaining theft or
2123     crime insurance as a group or for members individually; and
2124          (ii) shall pay the cost of each fidelity bond or insurance coverage required under this
2125     Subsection (7).
2126          (8) (a) The lieutenant governor may extend the term of an elected district board
2127     member by one year in order to compensate for a change in the election year under Subsection
2128     17B-1-306(14).
2129          (b) When the number of members of a board of trustees increases in accordance with
2130     Subsection [17B-1-302(6)] 17B-1-302(10), to ensure that the term of approximately half of the
2131     board members expires every two years in accordance with Subsection (2)(a):
2132          (i) the board shall set shorter terms for approximately half of the new board members,
2133     chosen by lot; and

2134          (ii) the initial term of a new board member position may be less than two or four years.
2135          (9) (a) A special district shall:
2136          (i) post on the Utah Public Notice Website created in Section 63A-16-601 the name,
2137     phone number, and email address of each member of the special district's board of trustees;
2138          (ii) update the information described in Subsection (9)(a)(i) when:
2139          (A) the membership of the board of trustees changes; or
2140          (B) a member of the board of trustees' phone number or email address changes; and
2141          (iii) post any update required under Subsection (9)(a)(ii) within 30 days after the date
2142     on which the change requiring the update occurs.
2143          (b) This Subsection (9) applies regardless of whether the county or municipal
2144     legislative body also serves as the board of trustees of the special district.
2145          Section 27. Section 17B-1-306.5 is amended to read:
2146          17B-1-306.5. Dividing a special district into divisions.
2147          (1) Subject to Subsection (3), the board of trustees of a special district that has elected
2148     board members may, upon a vote of two-thirds of the members of the board, divide the special
2149     district, or the portion of the special district represented by elected board of trustees members,
2150     into divisions so that some or all of the elected members of the board of trustees may be elected
2151     by division rather than at large.
2152          (2) Subject to Subsection (3), the appointing authority of a special district that has
2153     appointed board members may, upon a vote of two-thirds of the members of the appointing
2154     authority, divide the special district, or the portion of the special district represented by
2155     appointed board members, into divisions so that some or all of the appointed members of the
2156     board of trustees may be appointed by division rather than at large.
2157          (3) Before dividing a special district into divisions or before changing the boundaries
2158     of divisions already established, the board of trustees under Subsection (1), or the appointing
2159     authority, under Subsection (2), shall:
2160          (a) prepare a proposal that describes the boundaries of the proposed divisions; and
2161          (b) hold a public hearing at which any interested person may appear and speak for or
2162     against the proposal.
2163          (4) (a) The board of trustees or the appointing authority shall review the division
2164     boundaries at least every 10 years.

2165          (b) Except for changes in the divisions necessitated by annexations to or withdrawals
2166     from the special district, the boundaries of divisions established under Subsection (1) or (2)
2167     may not be changed more often than every five years.
2168          (c) Changes to the boundaries of divisions already established under Subsection (1) or
2169     (2) are not subject to the two-thirds vote requirement of Subsection (1) or (2).
2170          (5) (a) Notwithstanding Subsections (1) through (4), after the creation of an
2171     infrastructure financing district the board of trustees may divide the infrastructure financing
2172     district into divisions, as provided in the petition to create the infrastructure financing district
2173     under Subsection 17B-1-205(1)(m), so that some or all board members represent a division
2174     rather than the district at large.
2175          (b) No more frequently than every four years, the board of an infrastructure financing
2176     district may modify division boundaries to ensure that each division has as nearly as possible
2177     the same number of registered voters.
2178          (c) In dividing an infrastructure financing district into divisions or in modifying
2179     division boundaries, the board shall consider the anticipated future number of registered voters
2180     within divisions based on proposed development within the divisions.
2181          Section 28. Section 17B-1-403 is amended to read:
2182          17B-1-403. Initiation of annexation process -- Petition and resolution.
2183          (1) Except as provided in Sections 17B-1-415, 17B-1-416, and 17B-1-417, the process
2184     to annex an area to a special district may be initiated by[:] a petition, as provided in Subsection
2185     (2), or a resolution, as provided in Subsection (3).
2186          (2) (a) [(i) for] For a district whose board of trustees is elected by electors based on the
2187     acre-feet of water allotted to the land owned by the elector and subject to Subsection [(2)] (4),
2188     the process to annex an area to the special district is initiated by a petition signed by the owners
2189     of all of the acre-feet of water allotted to the land proposed for annexation[; or].
2190          (b) For an infrastructure financing district, the process to annex an area to the
2191     infrastructure financing district is initiated by a petition signed by 100% of the owners of all
2192     surface property within the area proposed for annexation that is within the designated
2193     expansion area, as defined in Section 17B-2a-1301.
2194          (c) [(ii) for] For all other districts, the process to annex an area to the special district
2195     may be initiated by[: (A)] a petition signed by:

2196          [(I)] (i) the owners of private real property that:
2197          [(Aa)] (A) is located within the area proposed to be annexed;
2198          [(Bb)] (B) covers at least 10% of the total private land area within the entire area
2199     proposed to be annexed and within each applicable area; and
2200          [(Cc)] (C) is equal in assessed value to at least 10% of the assessed value of all private
2201     real property within the entire area proposed to be annexed and within each applicable area;
2202     [or]
2203          [(II)] (ii) the owner of all the publicly owned real property, if all the real property
2204     within the area proposed for annexation is owned by a public entity other than the federal
2205     government; or
2206          [(B)] (iii) [a petition signed by] registered voters residing within the entire area
2207     proposed to be annexed and within each applicable area equal in number to at least 10% of the
2208     number of votes cast within the entire area proposed to be annexed and within each applicable
2209     area, respectively, for the office of governor at the last regular general election before the filing
2210     of the petition[;].
2211          [(b)] (3) The process to annex an area to a special district may be initiated by:
2212          (a) a resolution adopted by the legislative body of each county whose unincorporated
2213     area includes and each municipality whose boundaries include any of the area proposed to be
2214     annexed; or
2215          [(c)] (b) a resolution adopted by the board of trustees of the proposed annexing special
2216     district if, for at least 12 consecutive months immediately preceding adoption of the resolution,
2217     the special district has provided:
2218          (i) retail service to the area; or
2219          (ii) a wholesale service to a provider of the same service that has provided that service
2220     on a retail basis to the area.
2221          [(2)] (4) If an association representing all acre-feet of water allotted to the land that is
2222     proposed to be annexed to a special district signs a petition under Subsection [(1)(a)(i)] (2)(a),
2223     pursuant to a proper exercise of authority as provided in the bylaws or other rules governing the
2224     association, the petition shall be considered to have been signed by the owners of all of the
2225     acre-feet of water allotted to the land proposed for annexation, even though less than all of the
2226     owners within the association consented to the association signing the petition.

2227          [(3)] (5) Each petition under Subsection (2) and resolution under Subsection [(1)] (3)
2228     shall:
2229          (a) describe the area proposed to be annexed; and
2230          (b) be accompanied by a map of the boundaries of the area proposed to be annexed.
2231          [(4)] (6) The legislative body of each county and municipality that adopts a resolution
2232     under Subsection [(1)(b)] (3) shall, within five days after adopting the resolution, mail or
2233     deliver a copy of the resolution to the board of trustees of the proposed annexing special
2234     district.
2235          Section 29. Section 17B-1-404 is amended to read:
2236          17B-1-404. Petition requirements.
2237          (1) Each petition under Subsection [17B-1-403(1)(a)] 17B-1-403(2) shall:
2238          (a) indicate the typed or printed name and current residence address of each person
2239     signing the petition;
2240          (b) separately group signatures by county and municipality, so that all signatures of the
2241     owners of real property located within or of registered voters residing within each county
2242     whose unincorporated area includes and each municipality whose boundaries include part of
2243     the area proposed for annexation are grouped separately;
2244          (c) if it is a petition under Subsection [17B-1-403(1)(a)(i) or (ii)(A)] 17B-1-403(2)(a)
2245     or (2)(c)(i) or (ii), indicate the address of the property as to which the owner is signing the
2246     petition;
2247          (d) designate up to three signers of the petition as sponsors, one of whom shall be
2248     designated the contact sponsor, with the mailing address and telephone number of each;
2249          (e) be filed with the board of trustees of the proposed annexing special district; and
2250          (f) for a petition under Subsection [17B-1-403(1)(a)(i)] 17B-1-403(2)(a), state the
2251     proposed method of supplying water to the area proposed to be annexed.
2252          (2) By submitting a written withdrawal or reinstatement with the board of trustees of
2253     the proposed annexing special district, a signer of a petition may withdraw, or once withdrawn,
2254     reinstate the signer's signature at any time:
2255          (a) (i) before the public hearing under Section 17B-1-409 is held; or
2256          [(b)] (ii) if a hearing is not held because of Subsection 17B-1-413(1) or because no
2257     hearing is requested under Subsection 17B-1-413(2)(a)(ii)(B), until 20 days after the special

2258     district provides notice under Subsection 17B-1-413(2)(a)(i)[.]; or
2259          (b) for an infrastructure financing district, before the board of trustees adopts a
2260     resolution approving the annexation.
2261          Section 30. Section 17B-1-405 is amended to read:
2262          17B-1-405. Petition certification.
2263          (1) Within 30 days after the filing of a petition under Subsection [17B-1-403(1)(a)(i) or
2264     (ii)] 17B-1-403(2) or within the time that the special district and each petition sponsor
2265     designate by written agreement, the board of trustees of the proposed annexing special district
2266     shall:
2267          (a) with the assistance of officers of the county in which the area proposed to be
2268     annexed is located from whom the board requests assistance, determine whether the petition
2269     meets the requirements of Subsection [17B-1-403(1)(a)(i) or (ii)] 17B-1-403(2)(a), (b), or (c),
2270     as the case may be, Subsection [17B-1-403(3)] 17B-1-403(5), and Subsection 17B-1-404(1);
2271     and
2272          (b) (i) if the board determines that the petition complies with the requirements, certify
2273     the petition and mail or deliver written notification of the certification to the contact sponsor;
2274     or
2275          (ii) if the board determines that the petition fails to comply with any of the
2276     requirements, reject the petition and mail or deliver written notification of the rejection and the
2277     reasons for the rejection to the contact sponsor.
2278          (2) (a) If the board rejects a petition under Subsection (1)(b)(ii), the petition may be
2279     amended to correct the deficiencies for which it was rejected and then refiled.
2280          (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
2281     used toward fulfilling the applicable signature requirement of the petition as amended under
2282     Subsection (2)(a).
2283          (3) The board shall process an amended petition filed under Subsection (2)(a) in the
2284     same manner as an original petition under Subsection (1).
2285          Section 31. Section 17B-1-405.5 is enacted to read:
2286          17B-1-405.5. Provisions not applicable to infrastructure financing district
2287     annexation.
2288          Sections 17B-1-406, 17B-1-407, 17B-1-408, 17B-1-409, 17B-1-410, 17B-1-411,

2289     17B-1-412, and 17B-1-413 do not apply to a proposed annexation to an infrastructure financing
2290     district.
2291          Section 32. Section 17B-1-406 is amended to read:
2292          17B-1-406. Notice to county and municipality -- Exception.
2293          (1) Except as provided in Subsection (2), within 10 days after certifying a petition
2294     under Subsection 17B-1-405(1)(b) the board of trustees of the proposed annexing special
2295     district shall mail or deliver a written notice of the proposed annexation, with a copy of the
2296     certification and a copy of the petition, to the legislative body of each:
2297          (a) county in whose unincorporated area any part of the area proposed for annexation is
2298     located; and
2299          (b) municipality in which any part of the area proposed for annexation is located.
2300          (2) The board is not required to send a notice under Subsection (1) to:
2301          (a) a county or municipality that does not provide the service proposed to be provided
2302     by the special district; or
2303          (b) a county or municipality whose legislative body has adopted an ordinance or
2304     resolution waiving the notice requirement as to:
2305          (i) the proposed annexing special district; or
2306          (ii) the service that the proposed annexing special district provides.
2307          (3) For purposes of this section, an area proposed to be annexed to a municipality in a
2308     petition under Section 10-2-403 filed before and still pending at the time of the filing of a
2309     petition under Subsection [17B-1-403(1)(a)] 17B-1-403(2)(a) or (c) and an area included
2310     within a municipality's annexation policy plan under Section 10-2-401.5 shall be considered to
2311     be part of that municipality.
2312          Section 33. Section 17B-1-407 is amended to read:
2313          17B-1-407. Notice of intent to consider providing service -- Public hearing
2314     requirements.
2315          (1) (a) If the legislative body of a county or municipality whose applicable area is
2316     proposed to be annexed to a special district in a petition under Subsection [17B-1-403(1)(a)]
2317     17B-1-403(2)(a) or (c) intends to consider having the county or municipality, respectively,
2318     provide to the applicable area the service that the proposed annexing special district provides,
2319     the legislative body shall, within 30 days after receiving the notice under Subsection

2320     17B-1-406(1), mail or deliver a written notice to the board of trustees of the proposed annexing
2321     special district indicating that intent.
2322          (b) (i) A notice of intent under Subsection (1)(a) suspends the special district's
2323     annexation proceeding as to the applicable area of the county or municipality that submits the
2324     notice of intent until the county or municipality:
2325          (A) adopts a resolution under Subsection 17B-1-408(1) declining to provide the service
2326     proposed to be provided by the proposed annexing special district; or
2327          (B) is considered under Subsection 17B-1-408(2) or (3) to have declined to provide the
2328     service.
2329          (ii) The suspension of an annexation proceeding under Subsection (1)(b)(i) as to an
2330     applicable area does not prevent the special district from continuing to pursue the annexation
2331     proceeding with respect to other applicable areas for which no notice of intent was submitted.
2332          (c) If a legislative body does not mail or deliver a notice of intent within the time
2333     required under Subsection (1)(a), the legislative body shall be considered to have declined to
2334     provide the service.
2335          (2) Each legislative body that mails or delivers a notice under Subsection (1)(a) shall
2336     hold a public hearing or a set of public hearings, sufficient in number and location to ensure
2337     that no substantial group of residents of the area proposed for annexation need travel an
2338     unreasonable distance to attend a public hearing.
2339          (3) Each public hearing under Subsection (2) shall be held:
2340          (a) no later than 45 days after the legislative body sends notice under Subsection (1);
2341          (b) except as provided in Subsections (6) and (7), within the applicable area; and
2342          (c) for the purpose of allowing public input on:
2343          (i) whether the service is needed in the area proposed for annexation;
2344          (ii) whether the service should be provided by the county or municipality or the
2345     proposed annexing special district; and
2346          (iii) all other matters relating to the issue of providing the service or the proposed
2347     annexation.
2348          (4) A quorum of the legislative body of each county or municipal legislative body
2349     holding a public hearing under this section shall be present throughout each hearing held by
2350     that county or municipal legislative body.

2351          (5) Each hearing under this section shall be held on a weekday evening other than a
2352     holiday beginning no earlier than 6 p.m.
2353          (6) Two or more county or municipal legislative bodies may jointly hold a hearing or
2354     set of hearings required under this section if all the requirements of this section, other than the
2355     requirements of Subsection (3)(b), are met as to each hearing.
2356          (7) Notwithstanding Subsection (3)(b), a county or municipal legislative body may
2357     hold a public hearing or set of public hearings outside the applicable area if:
2358          (a) there is no reasonable place to hold a public hearing within the applicable area; and
2359          (b) the public hearing or set of public hearings is held as close to the applicable area as
2360     reasonably possible.
2361          (8) Before holding a public hearing or set of public hearings under this section, the
2362     legislative body of each county or municipality that receives a request for service shall provide
2363     notice of the hearing or set of hearings as provided in Section 17B-1-211.
2364          Section 34. Section 17B-1-408 is amended to read:
2365          17B-1-408. Resolution indicating whether the requested service will be provided.
2366          (1) Within 30 days after the last hearing required under Section 17B-1-407 is held, the
2367     legislative body of each county and municipality that sent a notice of intent under Subsection
2368     17B-1-407(1) shall adopt a resolution indicating whether the county or municipality will
2369     provide to the area proposed for annexation within its boundaries the service proposed to be
2370     provided by the proposed annexing special district.
2371          (2) If the county or municipal legislative body fails to adopt a resolution within the
2372     time provided under Subsection (1), the county or municipality shall be considered to have
2373     declined to provide the service.
2374          (3) If a county or municipal legislative body adopts a resolution under Subsection (1)
2375     indicating that the county or municipality will provide the service but the county or
2376     municipality does not, within 120 days after the adoption of that resolution, take substantial
2377     measures to provide the service, the county or municipality shall be considered to have
2378     declined to provide the service.
2379          (4) Each county or municipality whose legislative body adopts a resolution under
2380     Subsection (1) indicating that the county or municipality will provide the service shall
2381     diligently proceed to take all measures necessary to provide the service.

2382          (5) If a county or municipal legislative body adopts a resolution under Subsection (1)
2383     indicating that the county or municipality will provide the service and the county or
2384     municipality takes substantial measures within the time provided in Subsection (3) to provide
2385     the service, the special district's annexation proceeding as to the applicable area of that county
2386     or municipality is terminated and that applicable area is considered deleted from the area
2387     proposed to be annexed in a petition under Subsection [17B-1-403(1)(a)] 17B-1-403(2)(a) or
2388     (c).
2389          Section 35. Section 17B-1-409 is amended to read:
2390          17B-1-409. Public hearing on proposed annexation.
2391          (1) Except as provided in Sections 17B-1-413 and 17B-1-415, the board of trustees of
2392     each special district that certifies a petition that was filed under Subsection
2393     [17B-1-403(1)(a)(ii)(A) or (B)] 17B-1-403(2)(c), receives a resolution adopted under
2394     Subsection [17B-1-403(1)(b)] 17B-1-403(3)(a), or adopts a resolution under Subsection
2395     [17B-1-403(1)(c)] 17B-1-403(3)(b) shall hold a public hearing on the proposed annexation and
2396     provide notice of the hearing as provided in Section 17B-1-410.
2397          (2) Each public hearing under Subsection (1) shall be held:
2398          (a) within 45 days after:
2399          (i) if no notice to a county or municipal legislative body is required under Section
2400     17B-1-406, petition certification under Section 17B-1-405; or
2401          (ii) if notice is required under Section 17B-1-406, but no notice of intent is submitted
2402     by the deadline:
2403          (A) expiration of the deadline under Subsection 17B-1-407(1) to submit a notice of
2404     intent; or
2405          (B) termination of a suspension of the annexation proceeding under Subsection
2406     17B-1-407(1)(b);
2407          (b) (i) for a special district located entirely within a single county:
2408          (A) within or as close as practicable to the area proposed to be annexed; or
2409          (B) at the special district office; or
2410          (ii) for a special district located in more than one county:
2411          (A) (I) within the county in which the area proposed to be annexed is located; and
2412          (II) within or as close as practicable to the area proposed to be annexed; or

2413          (B) if the special district office is reasonably accessible to all residents within the area
2414     proposed to be annexed, at the special district office;
2415          (c) on a weekday evening other than a holiday beginning no earlier than 6 p.m.; and
2416          (d) for the purpose of allowing:
2417          (i) the public to ask questions and obtain further information about the proposed
2418     annexation and issues raised by it; and
2419          (ii) any interested person to address the board regarding the proposed annexation.
2420          (3) A quorum of the board of trustees of the proposed annexing special district shall be
2421     present throughout each public hearing held under this section.
2422          (4) (a) After holding a public hearing under this section or, if no hearing is held
2423     because of application of Subsection 17B-1-413(2)(a)(ii), after expiration of the time under
2424     Subsection 17B-1-413(2)(a)(ii)(B) for requesting a hearing, the board of trustees may by
2425     resolution deny the annexation and terminate the annexation procedure if:
2426          (i) for a proposed annexation initiated by a petition under Subsection
2427     [17B-1-403(1)(a)(i) or (ii)] 17B-1-403(2)(a) or (c), the board determines that:
2428          (A) it is not feasible for the special district to provide service to the area proposed to be
2429     annexed; or
2430          (B) annexing the area proposed to be annexed would be inequitable to the owners of
2431     real property or residents already within the special district; or
2432          (ii) for a proposed annexation initiated by resolution under Subsection
2433     [17B-1-403(1)(b) or (c)] 17B-1-403(3)(a) or (b), the board determines not to pursue
2434     annexation.
2435          (b) In each resolution adopted under Subsection (4)(a), the board shall set forth its
2436     reasons for denying the annexation.
2437          Section 36. Section 17B-1-411 is amended to read:
2438          17B-1-411. Modifications to area proposed for annexation -- Limitations.
2439          (1) (a) Subject to Subsections (2), (3), (4), and (5), a board of trustees may, within 30
2440     days after the public hearing under Section 17B-1-409, or, if no public hearing is held, within
2441     30 days after the board provides notice under Subsection 17B-1-413(2)(a)(i), modify the area
2442     proposed for annexation to include land not previously included in that area or to exclude land
2443     from that area if the modification enhances the feasibility of the proposed annexation.

2444          (b) A modification under Subsection (1)(a) may consist of the exclusion of all the land
2445     within an applicable area if:
2446          (i) the entire area proposed to be annexed consists of more than that applicable area;
2447          (ii) sufficient protests under Section 17B-1-412 are filed with respect to that applicable
2448     area that an election would have been required under Subsection 17B-1-412(3) if that
2449     applicable area were the entire area proposed to be annexed; and
2450          (iii) the other requirements of Subsection (1)(a) are met.
2451          (2) A board of trustees may not add property under Subsection (1) to the area proposed
2452     for annexation without the consent of the owner of that property.
2453          (3) Except as provided in Subsection (1)(b), a modification under Subsection (1) may
2454     not avoid the requirement for an election under Subsection 17B-1-412(3) if, before the
2455     modification, the election was required because of protests filed under Section 17B-1-412.
2456          (4) If the annexation is proposed by a petition under Subsection
2457     [17B-1-403(1)(a)(ii)(A) or (B)] 17B-1-403(2)(c), a modification may not be made unless the
2458     requirements of Subsection [17B-1-403(1)(a)(ii)(A) or (B)] 17B-1-403(2)(c) are met after the
2459     modification as to the area proposed to be annexed.
2460          (5) If the petition meets the requirements of Subsection 17B-1-413(1) before a
2461     modification under this section but fails to meet those requirements after modification:
2462          (a) the special district board shall give notice as provided in Section 17B-1-410 and
2463     hold a public hearing as provided in Section 17B-1-409 on the proposed annexation; and
2464          (b) the petition shall be considered in all respects as one that does not meet the
2465     requirements of Subsection 17B-1-413(1).
2466          Section 37. Section 17B-1-413 is amended to read:
2467          17B-1-413. Hearing, notice, and protest provisions do not apply for certain
2468     petitions.
2469          (1) Section 17B-1-412 does not apply, and, except as provided in Subsection (2)(a),
2470     Sections 17B-1-409 and 17B-1-410 do not apply:
2471          (a) if the process to annex an area to a special district was initiated by:
2472          (i) a petition under Subsection [17B-1-403(1)(a)(i)] 17B-1-403(2)(a);
2473          (ii) a petition under Subsection [17B-1-403(1)(a)(ii)(A)] 17B-1-403(2)(c)(i) or (ii) that
2474     was signed by the owners of private real property that:

2475          (A) is located within the area proposed to be annexed;
2476          (B) covers at least 75% of the total private land area within the entire area proposed to
2477     be annexed and within each applicable area; and
2478          (C) is equal in assessed value to at least 75% of the assessed value of all private real
2479     property within the entire area proposed to be annexed and within each applicable area; or
2480          (iii) a petition under Subsection [17B-1-403(1)(a)(ii)(B)] 17B-1-403(2)(c)(iii) that was
2481     signed by registered voters residing within the entire area proposed to be annexed and within
2482     each applicable area equal in number to at least 75% of the number of votes cast within the
2483     entire area proposed to be annexed and within each applicable area, respectively, for the office
2484     of governor at the last regular general election before the filing of the petition;
2485          (b) to an annexation under Section 17B-1-415; or
2486          (c) to a boundary adjustment under Section 17B-1-417.
2487          (2) (a) If a petition that meets the requirements of Subsection (1)(a) is certified under
2488     Section 17B-1-405, the special district board:
2489          (i) shall provide notice of the proposed annexation as provided in Subsection (2)(b);
2490     and
2491          (ii) (A) may, in the board's discretion, hold a public hearing as provided in Section
2492     17B-1-409 after giving notice of the public hearing as provided in Subsection (2)(b); and
2493          (B) shall, after giving notice of the public hearing as provided in Subsection (2)(b),
2494     hold a public hearing as provided in Section 17B-1-409 if a written request to do so is
2495     submitted, within 20 days after the special district provides notice under Subsection (2)(a)(i), to
2496     the special district board by an owner of property that is located within or a registered voter
2497     residing within the area proposed to be annexed who did not sign the annexation petition.
2498          (b) The notice required under Subsections (2)(a)(i) and (ii) shall:
2499          (i) be given:
2500          (A) (I) for a notice under Subsection (2)(a)(i), within 30 days after petition
2501     certification; or
2502          (II) for a notice of a public hearing under Subsection (2)(a)(ii), at least 10 but not more
2503     than 30 days before the public hearing; and
2504          (B) by providing notice, as a class A notice under Section 63G-30-102, for the area
2505     proposed to be annexed, through the day of the public hearing; and

2506          (ii) contain a brief explanation of the proposed annexation and include the name of the
2507     special district, the service provided by the special district, a description or map of the area
2508     proposed to be annexed, a special district telephone number where additional information
2509     about the proposed annexation may be obtained, and, for a notice under Subsection (2)(a)(i), an
2510     explanation of the right of a property owner or registered voter to request a public hearing as
2511     provided in Subsection (2)(a)(ii)(B).
2512          (c) A notice under Subsection (2)(a)(i) may be combined with the notice that is
2513     required for a public hearing under Subsection (2)(a)(ii)(A).
2514          Section 38. Section 17B-1-414 is amended to read:
2515          17B-1-414. Resolution approving an annexation -- Filing of notice and plat with
2516     lieutenant governor -- Recording requirements -- Effective date.
2517          (1) (a) Subject to Subsection (1)(b), the special district board shall adopt a resolution
2518     approving the annexation of the area proposed to be annexed or rejecting the proposed
2519     annexation within 90 days after:
2520          (i) expiration of the protest period under Subsection 17B-1-412(2), if sufficient protests
2521     to require an election are not filed;
2522          (ii) for a petition that meets the requirements of Subsection 17B-1-413(1):
2523          (A) a public hearing under Section 17B-1-409 is held, if the board chooses or is
2524     required to hold a public hearing under Subsection 17B-1-413(2)(a)(ii); or
2525          (B) expiration of the time for submitting a request for public hearing under Subsection
2526     17B-1-413(2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
2527     hearing[.]; or
2528          (iii) for a proposed annexation to an infrastructure financing district, the board's
2529     certification of the annexation petition under Section 17B-1-405.
2530          (b) If the special district has entered into an agreement with the United States that
2531     requires the consent of the United States for an annexation of territory to the district, a
2532     resolution approving annexation under this part may not be adopted until the written consent of
2533     the United States is obtained and filed with the board of trustees.
2534          (2) (a) (i) Within the time specified under Subsection (2)(a)(ii), the board shall file with
2535     the lieutenant governor:
2536          (A) a copy of a notice of an impending boundary action, as defined in Section

2537     67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3) and, if applicable,
2538     Subsection (2)(b); and
2539          (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
2540          (ii) The board shall file the documents listed in Subsection (2)(a)(i) with the lieutenant
2541     governor:
2542          (A) within 30 days after adoption of a resolution under Subsection (1), Subsection
2543     17B-1-412(3)(c)(i), or Section 17B-1-415; and
2544          (B) as soon as practicable after receiving the notice under Subsection 10-2-425(2) of a
2545     municipal annexation that causes an automatic annexation to a special district under Section
2546     17B-1-416.
2547          (b) For an automatic annexation to a special district under Section 17B-1-416, the
2548     notice of an impending boundary action required under Subsection (2)(a) shall state that an area
2549     outside the boundaries of the special district is being automatically annexed to the special
2550     district under Section 17B-1-416 because of a municipal annexation under Title 10, Chapter 2,
2551     Part 4, Annexation.
2552          (c) Upon the lieutenant governor's issuance of a certificate of annexation under Section
2553     67-1a-6.5, the board shall:
2554          (i) if the annexed area is located within the boundary of a single county, submit to the
2555     recorder of that county:
2556          (A) the original:
2557          (I) notice of an impending boundary action;
2558          (II) certificate of annexation; and
2559          (III) approved final local entity plat; and
2560          (B) a certified copy of the annexation resolution; or
2561          (ii) if the annexed area is located within the boundaries of more than a single county:
2562          (A) submit to the recorder of one of those counties:
2563          (I) the original of the documents listed in Subsections (2)(c)(i)(A)(I), (II), and (III); and
2564          (II) a certified copy of the annexation resolution; and
2565          (B) submit to the recorder of each other county:
2566          (I) a certified copy of the documents listed in Subsection (2)(c)(i)(A)(I), (II), and (III);
2567     and

2568          (II) a certified copy of the annexation resolution.
2569          (3) (a) As used in this Subsection (3), "fire district annexation" means an annexation
2570     under this part of an area located in a county of the first class to a special district:
2571          (i) created to provide fire protection, paramedic, and emergency services; and
2572          (ii) in the creation of which an election was not required because of Subsection
2573     17B-1-214(3)(d).
2574          (b) An annexation under this part is complete and becomes effective:
2575          (i) (A) on July 1 for a fire district annexation, if the lieutenant governor issues the
2576     certificate of annexation under Section 67-1a-6.5 from January 1 through June 30; or
2577          (B) on January 1 for a fire district annexation, if the lieutenant governor issues the
2578     certificate of annexation under Section 67-1a-6.5 from July 1 through December 31; or
2579          (ii) upon the lieutenant governor's issuance of the certificate of annexation under
2580     Section 67-1a-6.5, for any other annexation.
2581          (c) (i) The effective date of a special district annexation for purposes of assessing
2582     property within the annexed area is governed by Section 59-2-305.5.
2583          (ii) Until the documents listed in Subsection (2)(c) are recorded in the office of the
2584     recorder of each county in which the property is located, a special district may not:
2585          (A) levy or collect a property tax on property within the annexed area;
2586          (B) levy or collect an assessment on property within the annexed area; or
2587          (C) charge or collect a fee for service provided to property within the annexed area.
2588          (iii) Subsection (3)(c)(ii)(C):
2589          (A) may not be construed to limit a special district's ability before annexation to charge
2590     and collect a fee for service provided to property that is outside the special district's boundary;
2591     and
2592          (B) does not apply until 60 days after the effective date, under Subsection (3)(b), of the
2593     special district's annexation, with respect to a fee that the special district was charging for
2594     service provided to property within the annexed area immediately before the area was annexed
2595     to the special district.
2596          Section 39. Section 17B-1-504 is amended to read:
2597          17B-1-504. Initiation of withdrawal process -- Notice of petition.
2598          (1) Except as provided in Section 17B-1-505, the process to withdraw an area from a

2599     special district may be initiated:
2600          (a) for a special district funded predominantly by revenues from property taxes or
2601     service charges other than those based upon acre-feet of water:
2602          (i) by a petition signed by the owners of private real property that:
2603          (A) is located within the area proposed to be withdrawn;
2604          (B) covers at least 51% of the total private land within the area proposed to be
2605     withdrawn; and
2606          (C) is equal in taxable value to at least 51% of the taxable value of all private real
2607     property within the area proposed to be withdrawn;
2608          (ii) by a petition signed by registered voters residing within the area proposed to be
2609     withdrawn equal in number to at least 67% of the number of votes cast in the same area for the
2610     office of governor at the last regular general election before the filing of the petition;
2611          (iii) by a resolution adopted by the board of trustees of the special district in which the
2612     area proposed to be withdrawn is located, which:
2613          (A) states the reasons for withdrawal; and
2614          (B) is accompanied by a general description of the area proposed to be withdrawn; or
2615          (iv) by a resolution to file a petition with the special district to withdraw from the
2616     special district all or a specified portion of the area within a municipality or county, adopted by
2617     the governing body of a municipality that has within its boundaries an area located within the
2618     boundaries of a special district, or by the governing body of a county that has within its
2619     boundaries an area located within the boundaries of a special district that is located in more
2620     than one county, which petition of the governing body shall be filed with the board of trustees
2621     only if a written request to petition the board of trustees to withdraw an area from the special
2622     district has been filed with the governing body of the municipality, or county, and the request
2623     has been signed by registered voters residing within the boundaries of the area proposed for
2624     withdrawal equal in number to at least 51% of the number of votes cast in the same area for the
2625     office of governor at the last regular general election before the filing of the petition;
2626          (b) for a special district whose board of trustees is elected by electors based on the
2627     acre-feet of water allotted to the land owned by the elector:
2628          (i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
2629          (ii) by a petition signed by the owners of at least 67% of the acre-feet of water allotted

2630     to the land proposed to be withdrawn; [or]
2631          (c) for a special district funded predominantly by revenues other than property taxes,
2632     service charges, or assessments based upon an allotment of acre-feet of water:
2633          (i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
2634          (ii) by a petition signed by the registered voters residing within the entire area proposed
2635     to be withdrawn, which area shall be comprised of an entire unincorporated area within the
2636     special district or an entire municipality within a special district, or a combination thereof,
2637     equal in number to at least 67% of the number of votes cast within the entire area proposed to
2638     be withdrawn for the office of governor at the last regular general election before the filing of
2639     the petition[.]; or
2640          (d) for an infrastructure financing district, by a petition signed by 100% of the owners
2641     of all surface property within the area proposed to be withdrawn.
2642          (2) (a) Prior to soliciting any signatures on a petition under Subsection (1), the
2643     sponsors of the petition shall:
2644          [(a)] (i) notify the special district board with which the petition is intended to be filed
2645     that the sponsors will be soliciting signatures for a petition; and
2646          [(b)] (ii) mail a copy of the petition to the special district board.
2647          (b) Subsection (2)(a) does not apply to a petition to withdraw an area from an
2648     infrastructure financing district.
2649          Section 40. Section 17B-1-506 is amended to read:
2650          17B-1-506. Withdrawal petition requirements.
2651          (1) Each petition under Section 17B-1-504 shall:
2652          (a) indicate the typed or printed name and current address of each owner of acre-feet of
2653     water, property owner, registered voter, or authorized representative of the governing body
2654     signing the petition;
2655          (b) separately group signatures by municipality and, in the case of unincorporated
2656     areas, by county;
2657          (c) if it is a petition signed by the owners of land, the assessment of which is based on
2658     acre-feet of water, indicate the address of the property and the property tax identification parcel
2659     number of the property as to which the owner is signing the request;
2660          (d) designate up to three signers of the petition as sponsors, or in the case of a petition

2661     filed under Subsection 17B-1-504(1)(a)(iv), designate a governmental representative as a
2662     sponsor, and in each case, designate one sponsor as the contact sponsor with the mailing
2663     address and telephone number of each;
2664          (e) state the reasons for withdrawal; and
2665          (f) when the petition is filed with the special district board of trustees, be accompanied
2666     by a map generally depicting the boundaries of the area proposed to be withdrawn and a legal
2667     description of the area proposed to be withdrawn.
2668          (2) (a) The special district may prepare an itemized list of expenses, other than attorney
2669     expenses, that will necessarily be incurred by the special district in the withdrawal proceeding.
2670     The itemized list of expenses may be submitted to the contact sponsor. If the list of expenses is
2671     submitted to the contact sponsor within 21 days after receipt of the petition, the contact sponsor
2672     on behalf of the petitioners shall be required to pay the expenses to the special district within
2673     90 days of receipt. Until funds to cover the expenses are delivered to the special district, the
2674     district will have no obligation to proceed with the withdrawal and the time limits on the
2675     district stated in this part will be tolled. If the expenses are not paid within the 90 days, or
2676     within 90 days from the conclusion of any arbitration under Subsection (2)(b), the petition
2677     requesting the withdrawal shall be considered to have been withdrawn.
2678          (b) If there is no agreement between the board of trustees of the special district and the
2679     contact sponsor on the amount of expenses that will necessarily be incurred by the special
2680     district in the withdrawal proceeding, either the board of trustees or the contact sponsor may
2681     submit the matter to binding arbitration in accordance with Title 78B, Chapter 6, Part 2,
2682     Alternative Dispute Resolution Act; provided that, if the parties cannot agree upon an arbitrator
2683     and the rules and procedures that will control the arbitration, either party may pursue
2684     arbitration under Title 78B, Chapter 11, Utah Uniform Arbitration Act.
2685          (3) (a) A signer of a petition may withdraw or, once withdrawn, reinstate the signer's
2686     signature at any time before the public hearing under Section 17B-1-508 by submitting a
2687     written statement requesting withdrawal or reinstatement with the board of trustees of the
2688     special district in which the area proposed to be withdrawn is located.
2689          (b) A statement described in Subsection (3)(a) shall comply with the requirements
2690     described in Subsection 20A-1-1003(2).
2691          (c) As applicable and using the procedures described in Subsection 20A-1-1003(3), the

2692     county clerk shall assist the board of trustees to determine whether to remove or reinstate a
2693     registered voter's signature after the voter submits a timely, valid statement described in
2694     Subsection (3)(a).
2695          (4) If it reasonably appears that, if the withdrawal which is the subject of a petition
2696     filed under Subsection 17B-1-504(1)(a)(i) or (ii) is granted, it will be necessary for a
2697     municipality to provide to the withdrawn area the service previously supplied by the special
2698     district, the board of trustees of the special district may, within 21 days after receiving the
2699     petition, notify the contact sponsor in writing that, before it will be considered by the board of
2700     trustees, the petition shall be presented to and approved by the governing body of the
2701     municipality as provided in Subsection 17B-1-504(1)(a)(iv) before it will be considered by the
2702     special district board of trustees. If the notice is timely given to the contact sponsor, the
2703     petition shall be considered to have been withdrawn until the municipality files a petition with
2704     the special district under Subsection 17B-1-504(1)(a)(iv).
2705          (5) (a) After receiving the notice required by Subsection 17B-1-504(2), unless
2706     specifically allowed by law, a public entity may not make expenditures from public funds to
2707     support or oppose the gathering of signatures on a petition for withdrawal.
2708          (b) Nothing in this section prohibits a public entity from providing factual information
2709     and analysis regarding a withdrawal petition to the public, so long as the information grants
2710     equal access to both the opponents and proponents of the petition for withdrawal.
2711          (c) Nothing in this section prohibits a public official from speaking, campaigning,
2712     contributing personal money, or otherwise exercising the public official's constitutional rights.
2713          (6) Subsections (2), (3), (4), and (5) do not apply to a petition seeking the withdrawal
2714     of an area from an infrastructure financing district.
2715          Section 41. Section 17B-1-511 is amended to read:
2716          17B-1-511. Continuation of tax levy or assessment after withdrawal to pay for
2717     proportionate share of district bonds.
2718          (1) Other than as provided in Subsection (2), and unless an escrow trust fund is
2719     established and funded pursuant to Subsection 17B-1-510(5)(j), property within the withdrawn
2720     area shall continue after withdrawal to be taxable by the special district:
2721          (a) for the purpose of paying the withdrawn area's just proportion of the special
2722     district's general obligation bonds or lease obligations payable from property taxes with respect

2723     to lease revenue bonds issued by a local building authority on behalf of the special district,
2724     other than those bonds treated as revenue bonds under Subsection 17B-1-510(5)(i), until the
2725     bonded indebtedness has been satisfied; and
2726          (b) to the extent and for the years necessary to generate sufficient revenue that, when
2727     combined with the revenues from the district remaining after withdrawal, is sufficient to
2728     provide for the payment of principal and interest on the district's general obligation bonds that
2729     are treated as revenue bonds under Subsection 17B-1-510(5)(i).
2730          (2) For a special district funded predominately by revenues other than property taxes,
2731     service charges, or assessments based upon an allotment of acre-feet of water, property within
2732     the withdrawn area shall continue to be taxable by the special district for purposes of paying
2733     the withdrawn area's proportionate share of bonded indebtedness or judgments against the
2734     special district incurred prior to the date the petition was filed.
2735          (3) An area withdrawn from an infrastructure financing district remains subject to any
2736     taxes, fees, and assessments imposed by the infrastructure financing district until obligations
2737     allocable to the withdrawn area are paid.
2738          [(3)] (4) Except as provided in Subsections (1) [and], (2), and (3), upon withdrawal, the
2739     withdrawing area is relieved of all other taxes, assessments, and charges levied by the district,
2740     including taxes and charges for the payment of revenue bonds and maintenance and operation
2741     cost of the special district.
2742          Section 42. Section 17B-1-1001 is amended to read:
2743          17B-1-1001. Provisions applicable to property tax levy.
2744          (1) Each special district that levies and collects property taxes shall levy and collect
2745     them according to the provisions of Title 59, Chapter 2, Property Tax Act.
2746          (2) As used in this section:
2747          (a) "Appointed board of trustees" means a board of trustees of a special district that
2748     includes a member who is appointed to the board of trustees in accordance with Section
2749     17B-1-304, Subsection 17B-1-303(5), Subsection 17B-1-306(5)(h), or any of the applicable
2750     provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special
2751     Districts.
2752          (b) "Elected board of trustees" means a board of trustees of a special district that
2753     consists entirely of members who are elected to the board of trustees in accordance with

2754     Subsection (4), Section 17B-1-306, or any of the applicable provisions in Title 17B, Chapter
2755     2a, Provisions Applicable to Different Types of Special Districts.
2756          (3) (a) For a taxable year beginning on or after January 1, 2018, a special district may
2757     not levy or collect property tax revenue that exceeds the certified tax rate unless:
2758          (i) to the extent that the revenue from the property tax was pledged before January 1,
2759     2018, the special district pledges the property tax revenue to pay for bonds or other obligations
2760     of the special district; or
2761          (ii) the proposed tax or increase in the property tax rate has been approved by:
2762          (A) an elected board of trustees;
2763          (B) subject to Subsection (3)(b), an appointed board of trustees;
2764          (C) a majority of the registered voters within the special district who vote in an election
2765     held for that purpose on a date specified in Section 20A-1-204;
2766          (D) the legislative body of the appointing authority; or
2767          (E) the legislative body of:
2768          (I) a majority of the municipalities partially or completely included within the
2769     boundary of the specified special district; or
2770          (II) the county in which the specified special district is located, if the county has some
2771     or all of its unincorporated area included within the boundary of the specified special district.
2772          (b) For a special district with an appointed board of trustees, each appointed member of
2773     the board of trustees shall comply with the trustee reporting requirements described in Section
2774     17B-1-1003 before the special district may impose a property tax levy that exceeds the certified
2775     tax rate.
2776          (4) (a) Notwithstanding provisions to the contrary in Title 17B, Chapter 2a, Provisions
2777     Applicable to Different Types of Special Districts, and subject to Subsection (4)(b), members
2778     of the board of trustees of a special district shall be elected, if:
2779          (i) two-thirds of all members of the board of trustees of the special district vote in favor
2780     of changing to an elected board of trustees; and
2781          (ii) the legislative body of each municipality or county that appoints a member to the
2782     board of trustees adopts a resolution approving the change to an elected board of trustees.
2783          (b) A change to an elected board of trustees under Subsection (4)(a) may not shorten
2784     the term of any member of the board of trustees serving at the time of the change.

2785          (5) Subsections (2), (3), and (4) do not apply to:
2786          (a) Title 17B, Chapter 2a, Part 6, Metropolitan Water District Act;
2787          (b) Title 17B, Chapter 2a, Part 10, Water Conservancy District Act; or
2788          (c) a special district in which:
2789          (i) the board of trustees consists solely of:
2790          (A) land owners or the land owners' agents; or
2791          (B) as described in Subsection [17B-1-302(3)] 17B-1-302(3), (5), (6), or (7), land
2792     owners or the land owners' agents or officers; and
2793          (ii) there are no residents within the special district at the time a property tax is levied.
2794          (6) An infrastructure financing district may not pledge or otherwise use any property
2795     tax revenue for the payment of bonds.
2796          Section 43. Section 17B-1-1002 is amended to read:
2797          17B-1-1002. Limit on special district property tax levy -- Exclusions.
2798          (1) The rate at which a special district levies a property tax for district operation and
2799     maintenance expenses on the taxable value of taxable property within the district may not
2800     exceed:
2801          (a) .0008, for a basic special district;
2802          (b) .0004, for a cemetery maintenance district;
2803          (c) .0004, for a drainage district;
2804          (d) .0008, for a fire protection district;
2805          (e) .0008, for an improvement district;
2806          (f) .0005, for a metropolitan water district;
2807          (g) .0004, for a mosquito abatement district;
2808          (h) .0004, for a public transit district;
2809          (i) (i) .0023, for a service area that:
2810          (A) is located in a county of the first or second class; and
2811          (B) (I) provides fire protection, paramedic, and emergency services; or
2812          (II) subject to Subsection (3), provides law enforcement services; or
2813          (ii) .0014, for each other service area;
2814          (j) the rates provided in Section 17B-2a-1006, for a water conservancy district; [or]
2815          (k) .0008 for a municipal services district[.]; or

2816          (l) .0004 for an infrastructure financing district.
2817          (2) Property taxes levied by a special district are excluded from the limit applicable to
2818     that district under Subsection (1) if the taxes are:
2819          (a) levied under Section 17B-1-1103 by a special district, other than a water
2820     conservancy district, to pay principal of and interest on general obligation bonds issued by the
2821     district;
2822          (b) levied to pay debt and interest owed to the United States; or
2823          (c) levied to pay assessments or other amounts due to a water users association or other
2824     public cooperative or private entity from which the district procures water.
2825          (3) A service area described in Subsection (1)(i)(i)(B)(II) may not collect a tax
2826     described in Subsection (1)(i)(i) if a municipality or a county having a right to appoint a
2827     member to the board of trustees of the service area under Subsection 17B-2a-905(2) assesses
2828     on or after November 30 in the year in which the tax is first collected and each subsequent year
2829     that the tax is collected:
2830          (a) a generally assessed fee imposed under Section 17B-1-643 for law enforcement
2831     services; or
2832          (b) any other generally assessed fee for law enforcement services.
2833          Section 44. Section 17B-1-1302 is amended to read:
2834          17B-1-1302. Special district dissolution.
2835          (1) A special district may be dissolved as provided in this part.
2836          (2) No later than 180 days after the payment of all debt of an infrastructure financing
2837     district, the board of trustees of the infrastructure financing district shall adopt a resolution to
2838     dissolve the infrastructure financing district.
2839          Section 45. Section 17B-1-1303 is amended to read:
2840          17B-1-1303. Initiation of dissolution process.
2841          The process to dissolve a special district may be initiated by:
2842          (1) for an inactive special district:
2843          (a) (i) for a special district whose board of trustees is elected by electors based on the
2844     acre-feet of water allotted to the land owned by the elector, a petition signed by the owners of
2845     25% of the acre-feet of water allotted to the land within the special district; or
2846          (ii) for all other districts:

2847          (A) a petition signed by the owners of private real property that:
2848          (I) is located within the special district proposed to be dissolved;
2849          (II) covers at least 25% of the private land area within the special district; and
2850          (III) is equal in assessed value to at least 25% of the assessed value of all private real
2851     property within the special district; or
2852          (B) a petition signed by registered voters residing within the special district proposed
2853     to be dissolved equal in number to at least 25% of the number of votes cast in the district for
2854     the office of governor at the last regular general election before the filing of the petition; or
2855          (b) a resolution adopted by the administrative body; [and]
2856          (2) for an active special district, a petition signed by:
2857          (a) for a special district whose board of trustees is elected by electors based on the
2858     acre-feet of water allotted to the land owned by the elector, the owners of 33% of the acre-feet
2859     of water allotted to the land within the special district;
2860          (b) for a special district created to acquire or assess a groundwater right for the
2861     development and execution of a groundwater management plan in coordination with the state
2862     engineer in accordance with Section 73-5-15, the owners of groundwater rights that:
2863          (i) are diverted within the district; and
2864          (ii) cover at least 33% of the total amount of groundwater diverted in accordance with
2865     the groundwater rights within the district as a whole; or
2866          (c) for all other districts:
2867          (i) the owners of private real property that:
2868          (A) is located within the special district proposed to be dissolved;
2869          (B) covers at least 33% of the private land area within the special district; and
2870          (C) is equal in assessed value to at least 25% of the assessed value of all private real
2871     property within the special district; or
2872          (ii) 33% of registered voters residing within the special district proposed to be
2873     dissolved[.]; or
2874          (3) for an infrastructure financing district, a resolution adopted by the board of trustees.
2875          Section 46. Section 17B-1-1310 is amended to read:
2876          17B-1-1310. Notice to lieutenant governor -- Recording requirements --
2877     Distribution of remaining assets.

2878          (1) (a) [The] Within the time specified in Subsection (1)(b), an administrative body[,]
2879     shall file with the lieutenant governor a copy of a notice of an impending boundary action, as
2880     defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3)[:].
2881          [(a)] (b) The administrative body shall file a notice of an impending boundary action
2882     under Subsection (1)(a) within 30 days after the day on which, as applicable:
2883          (i) the administrative body adopts a resolution approving the dissolution of an inactive
2884     special district; [or]
2885          [(b)] (ii) [within 30 days after the day on which] a majority of the voters within an
2886     active special district approve the dissolution of the special district in an election described in
2887     Subsection 17B-1-1309(2)[.]; or
2888          (iii) for an infrastructure financing district, the administrative body adopts a resolution
2889     to dissolve the infrastructure financing district.
2890          (2) Upon the lieutenant governor's issuance of a certificate of dissolution under Section
2891     67-1a-6.5, the administrative body shall:
2892          (a) if the special district was located within the boundary of a single county, submit to
2893     the recorder of that county:
2894          (i) the original:
2895          (A) notice of an impending boundary action; and
2896          (B) certificate of dissolution; and
2897          (ii) a certified copy of the resolution that the administrative body adopts under
2898     Subsection 17B-1-1308(1); or
2899          (b) if the special district was located within the boundaries of more than a single
2900     county:
2901          (i) submit to the recorder of one of those counties:
2902          (A) the original notice of an impending boundary action and certificate of dissolution;
2903     and
2904          (B) if applicable, a certified copy of the resolution that the administrative body adopts
2905     under Subsection 17B-1-1308(1); and
2906          (ii) submit to the recorder of each other county:
2907          (A) a certified copy of the notice of an impending boundary action and certificate of
2908     dissolution; and

2909          (B) if applicable, a certified copy of the resolution that the administrative body adopts
2910     under Subsection 17B-1-1308(1).
2911          (3) Upon the lieutenant governor's issuance of the certificate of dissolution under
2912     Section 67-1a-6.5, the special district is dissolved.
2913          (4) (a) After the dissolution of a special district under this part, the administrative body
2914     shall use any assets of the special district remaining after paying all debts and other obligations
2915     of the special district to pay costs associated with the dissolution process.
2916          (b) If the administrative body is not the board of trustees of the dissolved special
2917     district, the administrative body shall pay any costs of the dissolution process remaining after
2918     exhausting the remaining assets of the special district as described in Subsection (4)(a).
2919          (c) If the administrative body is the board of trustees of the dissolved special district,
2920     each entity that has committed to provide a service that the dissolved special district previously
2921     provided, as described in Subsection 17B-1-1308(2)(b), shall pay, in the same proportion that
2922     the services the entity commits to provide bear to all of the services the special district
2923     provided, any costs of the dissolution process remaining after exhausting the remaining assets
2924     of the dissolved special district described in Subsection (4)(a).
2925          (5) (a) The administrative body shall distribute any assets of the special district that
2926     remain after the payment of debts, obligations, and costs under Subsection (4) in the following
2927     order of priority:
2928          (i) if there is a readily identifiable connection between the remaining assets and a
2929     financial burden borne by the real property owners in the dissolved special district,
2930     proportionately to those real property owners;
2931          (ii) if there is a readily identifiable connection between the remaining assets and a
2932     financial burden borne by the recipients of a service that the dissolved special district provided,
2933     proportionately to those recipients; and
2934          (iii) subject to Subsection (6), to each entity that has committed to provide a service
2935     that the dissolved special district previously provided, as described in Subsection
2936     [17B-1-1309(1)(b)(ii)] 17B-1-1308(2)(b)(i), in the same proportion that the services the entity
2937     commits to provide bear to all of the services the special district provided.
2938          (6) An entity that receives cash reserves of the dissolved special district under
2939     Subsection (5)(a)(iii) may not use the cash reserves:

2940          (a) in any way other than for the purpose the special district originally intended; or
2941          (b) in any area other than within the area that the dissolved special district previously
2942     served.
2943          Section 47. Section 17B-1-1402 is amended to read:
2944          17B-1-1402. Board of trustees of a basic special district.
2945          (1) As specified in a petition under Subsection 17B-1-203(1)(a) or (b) or a resolution
2946     under Subsection [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f), and except as provided in
2947     Subsection (2), the members of a board of trustees of a basic special district may be:
2948          (a) (i) elected by registered voters; or
2949          (ii) appointed by the responsible body, as defined in Section 17B-1-201; or
2950          (b) if the area of the special district contains less than one residential dwelling unit per
2951     50 acres of land at the time the resolution is adopted or the petition is filed, elected by the
2952     owners of real property within the special district based on:
2953          (i) the amount of acreage owned by property owners;
2954          (ii) the assessed value of property owned by property owners; or
2955          (iii) water rights:
2956          (A) relating to the real property within the special district;
2957          (B) that the real property owner:
2958          (I) owns; or
2959          (II) has transferred to the special district.
2960          (2) As specified in a groundwater right owner petition under Subsection
2961     17B-1-203(1)(c) or a resolution under Subsection [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or
2962     (f), the members of a board of trustees of a basic special district created to manage groundwater
2963     rights the district acquires or assesses under Section 17B-1-202 shall be:
2964          (a) subject to Section 17B-1-104.5, elected by the owners of groundwater rights that
2965     are diverted within the special district;
2966          (b) appointed by the responsible body, as defined in Section 17B-1-201; or
2967          (c) elected or appointed as provided in Subsection (3).
2968          (3) A petition under Subsection 17B-1-203(1)(a) or (b) and a resolution under
2969     Subsection [17B-1-203(1)(d) or (e)] 17B-1-203(1)(e) or (f) may provide for a transition from
2970     one or more methods of election or appointment under Subsection (1) or (2) to one or more

2971     other methods of election or appointment based upon milestones or events that the petition or
2972     resolution identifies.
2973          Section 48. Section 17B-2a-404 is amended to read:
2974          17B-2a-404. Improvement district board of trustees.
2975          (1) As used in this section:
2976          (a) "County district" means an improvement district that does not include within its
2977     boundaries any territory of a municipality.
2978          (b) "County member" means a member of a board of trustees of a county district.
2979          (c) "Electric district" means an improvement district that was created for the purpose of
2980     providing electric service.
2981          (d) "Included municipality" means a municipality whose boundaries are entirely
2982     contained within but do not coincide with the boundaries of an improvement district.
2983          (e) "Municipal district" means an improvement district whose boundaries coincide
2984     with the boundaries of a single municipality.
2985          (f) "Regular district" means an improvement district that is not a county district,
2986     electric district, or municipal district.
2987          (g) "Remaining area" means the area of a regular district that:
2988          (i) is outside the boundaries of an included municipality; and
2989          (ii) includes the area of an included municipality whose legislative body elects, under
2990     Subsection (5)(a)(ii), not to appoint a member to the board of trustees of the regular district.
2991          (h) "Remaining area member" means a member of a board of trustees of a regular
2992     district who is appointed, or, if applicable, elected to represent the remaining area of the
2993     district.
2994          (2) The legislative body of the municipality included within a municipal district may:
2995          (a) elect, at the time of the creation of the district, to be the board of trustees of the
2996     district; and
2997          (b) adopt at any time a resolution providing for:
2998          (i) the election of board of trustees members, as provided in Section 17B-1-306; or
2999          (ii) the appointment of board of trustees members, as provided in Section 17B-1-304.
3000          (3) (a) The legislative body of a county whose unincorporated area is partly or
3001     completely within a county district may:

3002          (i) elect, at the time of the creation of the district, to be the board of trustees of the
3003     district, even though a member of the legislative body of the county may not meet the
3004     requirements of Subsection 17B-1-302(1);
3005          (ii) adopt at any time a resolution providing for:
3006          (A) the election of board of trustees members, as provided in Section 17B-1-306; or
3007          (B) except as provided in Subsection (4), the appointment of board of trustees
3008     members, as provided in Section 17B-1-304; and
3009          (iii) if the conditions of Subsection (3)(b) are met, appoint a member of the legislative
3010     body of the county to the board of trustees, except that the legislative body of the county may
3011     not appoint more than three members of the legislative body of the county to the board of
3012     trustees.
3013          (b) A legislative body of a county whose unincorporated area is partly or completely
3014     within a county district may take an action under Subsection (3)(a)(iii) if:
3015          (i) more than 35% of the residences within a county district that receive service from
3016     the district are seasonally occupied homes, as defined in Subsection 17B-1-302(2)(a)(ii);
3017          (ii) the board of trustees are appointed by the legislative body of the county; and
3018          (iii) there are at least two appointed board members who meet the requirements of
3019     Subsections 17B-1-302(1), (2), [and] (3), (5), (6), and (7), except that a member of the
3020     legislative body of the county need not satisfy the requirements of Subsections 17B-1-302(1),
3021     (2), and (3).
3022          (4) Subject to Subsection (6)(d), the legislative body of a county may not adopt a
3023     resolution providing for the appointment of board of trustees members as provided in
3024     Subsection (3)(a)(ii)(B) at any time after the county district is governed by an elected board of
3025     trustees unless:
3026          (a) the elected board has ceased to function;
3027          (b) the terms of all of the elected board members have expired without the board
3028     having called an election; or
3029          (c) the elected board of trustees unanimously adopts a resolution approving the change
3030     from an elected to an appointed board.
3031          (5) (a) (i) Except as provided in Subsection (5)(a)(ii), the legislative body of each
3032     included municipality shall each appoint one member to the board of trustees of a regular

3033     district.
3034          (ii) The legislative body of an included municipality may elect not to appoint a member
3035     to the board under Subsection (5)(a)(i).
3036          (b) Except as provided in Subsection (6), the legislative body of each county whose
3037     boundaries include a remaining area shall appoint all other members to the board of trustees of
3038     a regular district.
3039          (6) Notwithstanding Subsection (3), each remaining area member of a regular district
3040     and each county member of a county district shall be elected, as provided in Section
3041     17B-1-306, if:
3042          (a) the petition or resolution initiating the creation of the district provides for remaining
3043     area or county members to be elected;
3044          (b) the district holds an election to approve the district's issuance of bonds;
3045          (c) for a regular district, an included municipality elects, under Subsection (5)(a)(ii),
3046     not to appoint a member to the board of trustees; or
3047          (d) (i) at least 90 days before the municipal general election or regular general election,
3048     as applicable, a petition is filed with the district's board of trustees requesting remaining area
3049     members or county members, as the case may be, to be elected; and
3050          (ii) the petition is signed by registered voters within the remaining area or county
3051     district, as the case may be, equal in number to at least 10% of the number of registered voters
3052     within the remaining area or county district, respectively, who voted in the last gubernatorial
3053     election.
3054          (7) Subject to Section 17B-1-302, the number of members of a board of trustees of a
3055     regular district shall be:
3056          (a) the number of included municipalities within the district, if:
3057          (i) the number of included municipalities is greater than nine or is an odd number that
3058     is not greater than nine; and
3059          (ii) the district does not include a remaining area;
3060          (b) the number of included municipalities plus one, if the number of included
3061     municipalities within the district is an even number that is less than nine; and
3062          (c) the number of included municipalities plus two, if:
3063          (i) the number of included municipalities is an odd number that is less than nine; and

3064          (ii) the district includes a remaining area.
3065          (8) (a) Except as provided in Subsection (8)(b), each remaining area member of the
3066     board of trustees of a regular district shall reside within the remaining area.
3067          (b) Notwithstanding Subsection (8)(a) and subject to Subsection (8)(c), each remaining
3068     area member shall be chosen from the district at large if:
3069          (i) the population of the remaining area is less than 5% of the total district population;
3070     or
3071          (ii) (A) the population of the remaining area is less than 50% of the total district
3072     population; and
3073          (B) the majority of the members of the board of trustees are remaining area members.
3074          (c) Application of Subsection (8)(b) may not prematurely shorten the term of any
3075     remaining area member serving the remaining area member's elected or appointed term on May
3076     11, 2010.
3077          (9) If the election of remaining area or county members of the board of trustees is
3078     required because of a bond election, as provided in Subsection (6)(b):
3079          (a) a person may file a declaration of candidacy if:
3080          (i) the person resides within:
3081          (A) the remaining area, for a regular district; or
3082          (B) the county district, for a county district; and
3083          (ii) otherwise qualifies as a candidate;
3084          (b) the board of trustees shall, if required, provide a ballot separate from the bond
3085     election ballot, containing the names of candidates and blanks in which a voter may write
3086     additional names; and
3087          (c) the election shall otherwise be governed by Title 20A, Election Code.
3088          (10) (a) (i) This Subsection (10) applies to the board of trustees members of an electric
3089     district.
3090          (ii) Subsections (2) through (9) do not apply to an electric district.
3091          (b) The legislative body of the county in which an electric district is located may
3092     appoint the initial board of trustees of the electric district as provided in Section 17B-1-304.
3093          (c) After the initial board of trustees is appointed as provided in Subsection (10)(b),
3094     each member of the board of trustees of an electric district shall be elected by persons using

3095     electricity from and within the district.
3096          (d) Each member of the board of trustees of an electric district shall be a user of
3097     electricity from the district and, if applicable, the division of the district from which elected.
3098          (e) The board of trustees of an electric district may be elected from geographic
3099     divisions within the district.
3100          (f) A municipality within an electric district is not entitled to automatic representation
3101     on the board of trustees.
3102          Section 49. Section 17B-2a-405 is amended to read:
3103          17B-2a-405. Board of trustees of certain sewer improvement districts.
3104          (1) As used in this section:
3105          (a) "Jurisdictional boundaries" means:
3106          (i) for a qualified county, the boundaries that include:
3107          (A) the area of the unincorporated part of the county that is included within a sewer
3108     improvement district; and
3109          (B) the area of each nonappointing municipality that is included within the sewer
3110     improvement district; and
3111          (ii) for a qualified municipality, the boundaries that include the area of the municipality
3112     that is included within a sewer improvement district.
3113          (b) "Nonappointing municipality" means a municipality that:
3114          (i) is partly included within a sewer improvement district; and
3115          (ii) is not a qualified municipality.
3116          (c) "Qualified county" means a county:
3117          (i) some or all of whose unincorporated area is included within a sewer improvement
3118     district; or
3119          (ii) which includes within its boundaries a nonappointing municipality.
3120          (d) "Qualified county member" means a member of a board of trustees of a sewer
3121     improvement district appointed under Subsection (3)(a)(ii).
3122          (e) "Qualified municipality" means a municipality that is partly or entirely included
3123     within a sewer improvement district that includes:
3124          (i) all of the municipality that is capable of receiving sewage treatment service from the
3125     sewer improvement district; and

3126          (ii) more than half of:
3127          (A) the municipality's land area; or
3128          (B) the assessed value of all private real property within the municipality.
3129          (f) "Qualified municipality member" means a member of a board of trustees of a sewer
3130     improvement district appointed under Subsection (3)(a)(i).
3131          (g) "Sewer improvement district" means an improvement district that:
3132          (i) provides sewage collection, treatment, and disposal service; and
3133          (ii) made an election before 1954 under Laws of Utah 1953, Chapter 29, to enable it to
3134     continue to appoint its board of trustees members as provided in this section.
3135          (2) (a) Notwithstanding Section 17B-2a-404, the board of trustees members of a sewer
3136     improvement district shall be appointed as provided in this section.
3137          (b) The board of trustees of a sewer improvement district may revoke the election
3138     under Subsection (1)(d) and become subject to the provisions of Section 17B-2a-404 only by
3139     the unanimous vote of all members of the sewer improvement district's board of trustees at a
3140     time when there is no vacancy on the board.
3141          (3) (a) The board of trustees of each sewer improvement district shall consist of:
3142          (i) at least one person but not more than three persons appointed by the mayor of each
3143     qualified municipality, with the consent of the legislative body of that municipality; and
3144          (ii) at least one person but not more than three persons appointed by:
3145          (A) the county executive, with the consent of the county legislative body, for a
3146     qualified county operating under a county executive-council form of county government; or
3147          (B) the county legislative body, for each other qualified county.
3148          (b) Each qualified county member appointed under Subsection (3)(a)(ii) shall represent
3149     the area within the jurisdictional boundaries of the qualified county.
3150          (4) Notwithstanding Subsection [17B-1-302(4)] 17B-1-302(8), the number of board of
3151     trustees members of a sewer improvement district shall be the number that results from
3152     application of Subsection (3)(a).
3153          (5) Except as provided in this section, an appointment to the board of trustees of a
3154     sewer improvement district is governed by Section 17B-1-304.
3155          (6) A quorum of a board of trustees of a sewer improvement district consists of
3156     members representing more than 50% of the total number of qualified county and qualified

3157     municipality votes under Subsection (7).
3158          (7) (a) Subject to Subsection (7)(b), each qualified county and each qualified
3159     municipality is entitled to one vote on the board of trustees of a sewer improvement district for
3160     each $10,000,000, or fractional part larger than 1/2 of that amount, of assessed valuation of
3161     private real property taxable for district purposes within the respective jurisdictional
3162     boundaries, as shown by the assessment records of the county and evidenced by a certificate of
3163     the county auditor.
3164          (b) Notwithstanding Subsection (7)(a), each qualified county and each qualified
3165     municipality shall have at least one vote.
3166          (8) If a qualified county or qualified municipality appoints more than one board
3167     member, all the votes to which the qualified county or qualified municipality is entitled under
3168     Subsection (7) for an item of board business shall collectively be cast by a majority of the
3169     qualified county members or qualified municipal members, respectively, present at a meeting
3170     of the board of trustees.
3171          Section 50. Section 17B-2a-407 is amended to read:
3172          17B-2a-407. Nonfunctioning improvement district -- Replacing board of trustees.
3173          (1) As used in this section:
3174          (a) "Applicable certificate" means the same as that term is defined in Subsection
3175     67-1a-6.5(1)(a).
3176          (b) (i) "Non-functioning improvement district" means an improvement district:
3177          (A) for which the lieutenant governor issues an applicable certificate on or after July 1,
3178     2022, but before October 15, 2023;
3179          (B) for which the legislative body of a county elected to be the board of trustees of the
3180     district under Subsection 17B-2a-404(3)(a); and
3181          (C) (I) for which the responsible body has not, within 100 days after the day on which
3182     the lieutenant governor issued the applicable certificate, complied with the recording
3183     requirements described in Subsection 17B-1-215(2); or
3184          (II) whose board of trustees has not, within 100 days after the day on which the
3185     lieutenant governor issued the applicable certificate, held a meeting as the board of trustees of
3186     the improvement district, that was noticed and held in accordance with the requirements of
3187     Title 52, Chapter 4, Open and Public Meetings Act.

3188          (ii) "Non-functioning improvement district" does not include an improvement district
3189     that has emerged from non-functioning status under Subsection (6)(c)(ii).
3190          (2) (a) The board of trustees of a non-functioning improvement district may not, after
3191     the 100-day period described in Subsection (1)(b)(i)(C)(I), take any action as the board of
3192     trustees or on behalf of the non-functioning improvement district.
3193          (b) Any action taken in violation of Subsection (2)(a) is void.
3194          (3) (a) An owner of land located within the boundaries of a non-functioning
3195     improvement district may file with the lieutenant governor a request to replace the board of
3196     trustees with a new board of trustees.
3197          (b) A new board of trustees described in Subsection (3)(a) shall comprise three
3198     individuals who are:
3199          (i) owners of land located within the boundaries of the improvement district; or
3200          (ii) agents of owners of land located within the boundaries of the improvement district.
3201          (4) A request described in Subsection (3) shall include:
3202          (a) the name and mailing address of the land owner who files the request;
3203          (b) the name of the improvement district;
3204          (c) a copy of the applicable certificate for the improvement district;
3205          (d) written consent to the request from each owner of land located within the
3206     boundaries of the improvement district; and
3207          (e) the names and mailing addresses of three individuals who will serve as the board of
3208     trustees of the improvement district until a new board of trustees is organized under Subsection
3209     (9).
3210          (5) Within 14 days after the day on which the lieutenant governor receives a request
3211     described in Subsections (3) and (4), the lieutenant governor shall:
3212          (a) determine whether:
3213          (i) the district is a non-functioning improvement district;
3214          (ii) the request complies with Subsection (4); and
3215          (b) if the lieutenant governor determines that the requirements described in Subsection
3216     (5)(a) are met, grant the request by issuing a certificate of replacement described in Subsection
3217     (6).
3218          (6) A certificate of replacement shall:

3219          (a) state the name of the improvement district;
3220          (b) reference the applicable certificate for the improvement district;
3221          (c) declare that, upon issuance of the certificate:
3222          (i) the existing board of trustees for the improvement district is dissolved and replaced
3223     by an interim board of trustees consisting of the three individuals described in Subsection
3224     (4)(e); and
3225          (ii) the improvement district is removed from nonfunctioning status and is, beginning
3226     at that point in time, a functioning improvement district.
3227          (7) The interim board of trustees described in Subsection (6)(c)(i) shall record, in the
3228     recorder's office for a county in which all or a portion of the improvement district exists:
3229          (a) the original of the certificate of replacement; and
3230          (b) the original or a copy of:
3231          (i) the items described in Subsections 17B-1-215(2)(a)(i)(A), (B), and (C); and
3232          (ii) if applicable, a copy of each resolution adopted under Subsection 17B-1-213(5).
3233          (8) Until a new board of trustees is organized under Subsection (9):
3234          (a) the interim board of trustees has the full authority of a board of trustees of an
3235     improvement district; and
3236          (b) a majority of the owners of land in the improvement district:
3237          (i) may appoint an individual described in Subsection (3)(b) to fill a vacancy on the
3238     interim board of trustees; and
3239          (ii) shall file written notification of the appointment of an individual described in
3240     Subsection (8)(b)(i) with the lieutenant governor.
3241          (9) Within 90 days after the day on which at least 20 persons own land within the
3242     improvement district, the interim board of trustees described in Subsection (6)(c)(i) shall
3243     dissolve and be replaced by a board of trustees described in Subsections 17B-1-302(1) through
3244     [(3)(a)] (3), except that:
3245          (a) the board of trustees shall comprise three members, appointed by the lieutenant
3246     governor, who are owners of property in the district, agents of an owner of property in the
3247     district, or residents of the district;
3248          (b) Subsections [17B-1-302(3)(c) through (6)] 17B-1-302(6) through (10) and Section
3249     17B-2a-404 do not apply to the improvement district; and

3250          (c) a member of the legislative body of the county may not serve as a member of the
3251     board of trustees.
3252          Section 51. Section 17B-2a-604 is amended to read:
3253          17B-2a-604. Metropolitan water district board of trustees.
3254          (1) Members of the board of trustees of a metropolitan water district shall be:
3255          (a) elected in accordance with:
3256          (i) the petition or resolution that initiated the process of creating the metropolitan water
3257     district; and
3258          (ii) Section 17B-1-306;
3259          (b) appointed in accordance with Subsection (2); or
3260          (c) elected under Subsection (3)(a).
3261          (2) (a) This Subsection (2) shall apply to an appointed board of trustees of a
3262     metropolitan water district.
3263          (b) If a district contains the area of a single municipality:
3264          (i) the legislative body of that municipality shall appoint each member of the board of
3265     trustees; and
3266          (ii) one member shall be the officer with responsibility over the municipality's water
3267     supply and distribution system, if the system is municipally owned.
3268          (c) If a district contains some or all of the retail water service area of more than one
3269     municipality:
3270          (i) the legislative body of each municipality shall appoint the number of members for
3271     that municipality as determined under Subsection (2)(c)(ii);
3272          (ii) subject to Subsection (2)(c)(iii), the number of members appointed by each
3273     municipality shall be determined:
3274          (A) by agreement between the metropolitan water district and the municipalities,
3275     subject to Subsection [17B-1-302(4)] 17B-1-302(8); or
3276          (B) as provided in Chapter 1, Part 3, Board of Trustees; and
3277          (iii) at least one member shall be appointed by each municipality.
3278          (d) Each trustee shall be appointed without regard to partisan political affiliations from
3279     among citizens of the highest integrity, attainment, competence, and standing in the
3280     community.

3281          (3) (a) Members of the board of trustees of a metropolitan water district shall be
3282     elected in accordance with Section 17B-1-306, if, subject to Subsection (3)(b):
3283          (i) three-fourths of all members of the board of trustees of the metropolitan water
3284     district vote in favor of changing to an elected board; and
3285          (ii) the legislative body of each municipality that appoints a member to the board of
3286     trustees adopts a resolution approving the change to an elected board.
3287          (b) A change to an elected board of trustees under Subsection (3)(a) may not shorten
3288     the term of any member of the board of trustees serving at the time of the change.
3289          (4) A member of the board of trustees of a metropolitan water district shall be:
3290          (a) a registered voter;
3291          (b) a property taxpayer; and
3292          (c) a resident of:
3293          (i) the metropolitan water district; and
3294          (ii) the retail water service area of the municipality that:
3295          (A) elects the member; or
3296          (B) the member is appointed to represent.
3297          (5) (a) Except as provided in Subsection (7), a member shall immediately forfeit the
3298     member's seat on the board of trustees if the member becomes elected or appointed to office in
3299     or becomes an employee of the municipality whose legislative body appointed the member
3300     under Subsection (2).
3301          (b) The position of the member described in Subsection (5)(a) is vacant until filled as
3302     provided in Section 17B-1-304.
3303          (6) Except as provided in Subsection (7), the term of office of each member of the
3304     board of trustees is as provided in Section 17B-1-303.
3305          (7) Subsections (4), (5)(a), and (6) do not apply to a member who is a member under
3306     Subsection (2)(b)(ii).
3307          Section 52. Section 17B-2a-704 is amended to read:
3308          17B-2a-704. Mosquito abatement district board of trustees.
3309          (1) (a) Notwithstanding Subsection [17B-1-302(4)] 17B-1-302(8):
3310          (i) the board of trustees of a mosquito abatement district consists of no less than five
3311     members appointed in accordance with this section; and

3312          (ii) subject to Subsection (1)(b), the legislative body of each municipality that is
3313     entirely or partly included within a mosquito abatement district shall appoint one member to
3314     the board of trustees.
3315          (b) If 75% or more of the area of a mosquito abatement district is within the boundaries
3316     of a single municipality:
3317          (i) the board of trustees consists of five members; and
3318          (ii) the legislative body of that municipality shall appoint all five members of the
3319     board.
3320          (2) Except as provided in Subsection (1), the legislative body of each county in which a
3321     mosquito abatement district is located shall appoint at least one member but no more than three
3322     members to the district's board of trustees as follows:
3323          (a) the county may appoint one member if:
3324          (i) (A) some or all of the county's unincorporated area is included within the
3325     boundaries of the mosquito abatement district; and
3326          (B) Subsection (2)(b) does not apply; or
3327          (ii) (A) the number of municipalities that are entirely or partly included within the
3328     district is an even number less than nine; and
3329          (B) Subsection (1)(b) does not apply; or
3330          (b) subject to Subsection (3), the county may appoint up to and including three
3331     members if:
3332          (i) more than 25% of the population of the mosquito abatement district resides outside
3333     the boundaries of all municipalities that may appoint members to the board of trustees; and
3334          (ii) a municipality appoints at least four members of the board of trustees.
3335          (3) A county may not appoint a member in accordance with Subsection (2)(b) who
3336     resides within a municipality that may appoint a member to the board of trustees.
3337          (4) If the number of board members appointed by application of Subsections (1) and
3338     (2)(a) is an even number less than nine, the legislative body of the county in which the district
3339     is located shall appoint an additional member.
3340          (5) Notwithstanding Subsection (2), and subject to Subsection (1)(b):
3341          (a) if the mosquito abatement district is located entirely within one county and, in
3342     accordance with this section, only one municipality may appoint a member of the board of

3343     trustees, the county legislative body shall appoint at least four members to the district's board
3344     of trustees; and
3345          (b) if the mosquito abatement district is located entirely within one county and no
3346     municipality may appoint a member of the board of trustees, the county legislative body shall
3347     appoint all of the members of the board.
3348          (6) Each board of trustees member is appointed in accordance with Section 17B-1-304.
3349          (7) The applicable appointing authority shall fill each vacancy on a mosquito
3350     abatement district board of trustees in accordance with Section 17B-1-304, or if the vacancy is
3351     a midterm vacancy, in accordance with Section 20A-1-512.
3352          Section 53. Section 17B-2a-905 is amended to read:
3353          17B-2a-905. Service area board of trustees.
3354          (1) (a) Except as provided in Subsection (2), (3), or (4):
3355          (i) the initial board of trustees of a service area located entirely within the
3356     unincorporated area of a single county may, as stated in the petition or resolution that initiated
3357     the process of creating the service area:
3358          (A) consist of the county legislative body;
3359          (B) be appointed, as provided in Section 17B-1-304; or
3360          (C) be elected, as provided in Section 17B-1-306;
3361          (ii) if the board of trustees of a service area consists of the county legislative body, the
3362     board may adopt a resolution providing for future board members to be appointed, as provided
3363     in Section 17B-1-304, or elected, as provided in Section 17B-1-306; and
3364          (iii) members of the board of trustees of a service area shall be elected, as provided in
3365     Section 17B-1-306, if:
3366          (A) the service area is not entirely within the unincorporated area of a single county;
3367          (B) a petition is filed with the board of trustees requesting that board members be
3368     elected, and the petition is signed by registered voters within the service area equal in number
3369     to at least 10% of the number of registered voters within the service area who voted at the last
3370     gubernatorial election; or
3371          (C) an election is held to authorize the service area's issuance of bonds.
3372          (b) If members of the board of trustees of a service area are required to be elected
3373     under Subsection (1)(a)(iii)(C) because of a bond election:

3374          (i) board members shall be elected in conjunction with the bond election;
3375          (ii) the board of trustees shall:
3376          (A) establish a process to enable potential candidates to file a declaration of candidacy
3377     sufficiently in advance of the election; and
3378          (B) provide a ballot for the election of board members separate from the bond ballot;
3379     and
3380          (iii) except as provided in this Subsection (1)(b), the election shall be held as provided
3381     in Section 17B-1-306.
3382          (2) (a) This Subsection (2) applies to a service area created on or after May 5, 2003, if:
3383          (i) the service area was created to provide:
3384          (A) fire protection, paramedic, and emergency services; or
3385          (B) law enforcement service;
3386          (ii) in the creation of the service area, an election was not required under Subsection
3387     17B-1-214(3)(d); and
3388          (iii) the service area is not a service area described in Subsection (3).
3389          (b) (i) Each county with unincorporated area that is included within a service area
3390     described in Subsection (2)(a), whether in conjunction with the creation of the service area or
3391     by later annexation, shall appoint up to three members to the board of trustees.
3392          (ii) Each municipality with an area that is included within a service area described in
3393     Subsection (2)(a), whether in conjunction with the creation of the service area or by later
3394     service area annexation or municipal incorporation or annexation, shall appoint one member to
3395     the board of trustees, unless the area of the municipality is withdrawn from the service area.
3396          (iii) Each member that a county or municipality appoints under Subsection (2)(b)(i) or
3397     (ii) shall be an elected official of the appointing county or municipality, respectively.
3398          (c) Notwithstanding Subsection [17B-1-302(4)] 17B-1-302(8), the number of members
3399     of a board of trustees of a service area described in Subsection (2)(a) shall be the number
3400     resulting from application of Subsection (2)(b).
3401          (3) (a) This Subsection (3) applies to a service area created on or after May 14, 2013,
3402     if:
3403          (i) the service area was created to provide fire protection, paramedic, and emergency
3404     services;

3405          (ii) in the creation of the service area, an election was not required under Subsection
3406     17B-1-214(3)(d); and
3407          (iii) each municipality with an area that is included within the service area or county
3408     with unincorporated area, whether in whole or in part, that is included within a service area is a
3409     party to an agreement:
3410          (A) entered into in accordance with Title 11, Chapter 13, Interlocal Cooperation Act,
3411     with all the other municipalities or counties with an area that is included in the service area;
3412          (B) to provide the services described in Subsection (3)(a)(i); and
3413          (C) at the time a resolution proposing the creation of the service area is adopted by
3414     each applicable municipal or county legislative body in accordance with Subsection
3415     [17B-1-203(1)(d)] 17B-1-203(1)(e).
3416          (b) (i) Each county with unincorporated area, whether in whole or in part, that is
3417     included within a service area described in Subsection (3)(a), whether in conjunction with the
3418     creation of the service area or by later annexation, shall appoint one member to the board of
3419     trustees.
3420          (ii) Each municipality with an area that is included within a service area described in
3421     Subsection (3)(a), whether in conjunction with the creation of the service area or by later
3422     annexation, shall appoint one member to the board of trustees.
3423          (iii) Each member that a county or municipality appoints under Subsection (3)(b)(i) or
3424     (ii) shall be an elected official of the appointing county or municipality, respectively.
3425          (iv) A vote by a member of the board of trustees may be weighted or proportional.
3426          (c) Notwithstanding Subsection [17B-1-302(4)] 17B-1-302(8), the number of members
3427     of a board of trustees of a service area described in Subsection (3)(a) is the number resulting
3428     from the application of Subsection (3)(b).
3429          (4) (a) This Subsection (4) applies to a service area if:
3430          (i) the service area provides a service to a municipality in accordance with an
3431     agreement between the service area and the municipality in accordance with Title 11, Chapter
3432     13, Interlocal Cooperation Act;
3433          (ii) the municipality is not included within the service area's boundary;
3434          (iii) the governing body of the municipality petitions the service area to request
3435     authority to appoint one member of the board of trustees of the service area; and

3436          (iv) the service area board of trustees approves the petition.
3437          (b) The governing body of a municipality described in Subsection (4)(a) may appoint a
3438     member of a service area board of trustees as follows:
3439          (i) the governing body shall make the appointment in accordance with:
3440          (A) Section 17B-1-304; or
3441          (B) to fill a mid-term vacancy, Subsection 20A-1-512(1);
3442          (ii) the governing body may not appoint an individual who is not a registered voter
3443     residing within the municipality;
3444          (iii) the district boundary requirement in Subsection 17B-1-302(1) does not apply to
3445     the governing body's appointee;
3446          (iv) the governing body and the service area board of trustees may not shorten the term
3447     of office of any member of the board due to the governing body's appointment;
3448          (v) notwithstanding Subsection [17B-1-302(4)] 17B-1-302(8), the number of members
3449     of the board of trustees of a service area described in Subsection (4)(a) may be odd or even;
3450     and
3451          (vi) if the number of members of a service area board of trustees is odd before the
3452     governing body's appointment, the member that the governing body appoints may replace a
3453     member whose term is expiring or who otherwise leaves a vacancy on the board or, if no
3454     expiring term or vacancy exists:
3455          (A) the number of board members may temporarily be even, including the member that
3456     the governing body appoints, until an expiring term or vacancy exists that restores the board
3457     membership to an odd number; and
3458          (B) no appointing authority may fill the expiring term or vacancy that restores the
3459     board membership to an odd number.
3460          (c) (i) The service area board of trustees may rescind the approval described in
3461     Subsection (4)(a) at any time.
3462          (ii) If the service area board of trustees rescinds the approval described in Subsection
3463     (4)(a) during the term of a board member that the governing body appointed, the appointee
3464     shall remain on the board for the remainder of the appointee's term.
3465          Section 54. Section 17B-2a-1301 is enacted to read:
3466     
Part 13. Infrastructure Financing District


3467          17B-2a-1301. Definitions.
3468          As used in this part:
3469          (1) "Assessment bond" means the same as that term is defined in Section 11-42-102.
3470          (2) "Board" means the board of trustees of an infrastructure financing district.
3471          (3) "Designated expansion area" means an area that is:
3472          (a) outside and contiguous to the original district boundary; and
3473          (b) designated and described in a governing document as an area that may be subject to
3474     future annexation to the infrastructure financing district.
3475          (4) "Governing document" means a document described in Section 17B-2a-1303.
3476          (5) "Original district boundary" means the boundary of an infrastructure financing
3477     district as described in the approved final local entity plat, as defined in Section 67-1a-6.5.
3478          (6) (a) "Public infrastructure and improvements" means infrastructure, improvements,
3479     facilities, or buildings that:
3480          (i) benefit the public; and
3481          (ii) (A) are or will be owned by a public entity or a utility; or
3482          (B) are publicly maintained or operated by a public entity.
3483          (b) "Public infrastructure and improvements" includes:
3484          (i) facilities, lines, or systems that provide:
3485          (A) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
3486     microgrids, or telecommunications service;
3487          (B) streets, roads, curb, gutter, sidewalk, solid waste facilities, parking facilities, or
3488     public transportation facilities; and
3489          (C) green space, parks, trails, recreational amenities, or other similar facilities.
3490          (c) "Public infrastructure and improvements" does not include any infrastructure,
3491     improvements, facilities, or buildings owned or to be owned by a private person, including a
3492     homeowner association.
3493          (7) "Residential district" means an infrastructure financing district that contains or is
3494     projected to contain owner-occupied residential units within the boundary of the infrastructure
3495     financing district.
3496          Section 55. Section 17B-2a-1302 is enacted to read:
3497          17B-2a-1302. Provisions applicable to infrastructure financing district --

3498     Exceptions -- Conflicting provisions -- Contract for administrative services.
3499          (1) (a) An infrastructure financing district is governed by and has the powers stated in:
3500          (i) this part; and
3501          (ii) Chapter 1, Provisions Applicable to All Special Districts, except as provided in
3502     Subsection (1)(b).
3503          (2) (a) Notwithstanding Subsection 17B-1-103(2)(f), an infrastructure financing district
3504     may issue bonds only as provided in Title 11, Chapter 42, Assessment Area Act, subject to
3505     Subsection (1)(b)(i)(B), and Title 11, Chapter 42a, Commercial Property Assessed Clean
3506     Energy Act.
3507          (b) To the extent that the provisions of Title 11, Chapter 42, Assessment Area Act,
3508     apply to the use of funds from an assessment or an assessment bond for infrastructure operation
3509     and maintenance costs or for the cost of conducting economic promotion activities, those
3510     provisions do not apply to an infrastructure financing district.
3511          (c) Before a county or municipality's final inspection required for the issuance of a
3512     certificate of occupancy for a residential unit that is subject to an assessment levied by an
3513     infrastructure financing district under Title 11, Chapter 42, Assessment Area Act, the
3514     infrastructure financing district shall ensure that the assessment allocable to that unit is paid in
3515     full and that any assessment lien on that unit is satisfied and released.
3516          (3) Notwithstanding Subsection 17B-1-103(2)(h), an infrastructure financing district
3517     may not exercise the power of eminent domain.
3518          (4) This part applies only to an infrastructure financing district.
3519          (5) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
3520     Special Districts, and a provision in this part, the provision in this part governs.
3521          (6) An infrastructure financing district may contract with another governmental entity
3522     for the other governmental entity to provide administrative services to the infrastructure
3523     financing district.
3524          Section 56. Section 17B-2a-1303 is enacted to read:
3525          17B-2a-1303. Governing document.
3526          (1) The sponsors of a petition filed under Subsection 17B-1-203(1)(d) to create an
3527     infrastructure financing district may include with the petition a governing document.
3528          (2) A governing document may contain provisions for the governance of the

3529     infrastructure financing district, consistent with this part, including:
3530          (a) for a residential district, milestones or events that will guide the board in
3531     considering modifications to division boundaries to ensure that each division has as nearly as
3532     possible the same number of registered voters;
3533          (b) a provision allowing a property owner within the infrastructure financing district to
3534     make recommendations, in proportion to the amount of the owner's property in relation to all
3535     property within the infrastructure financing district, for individuals to serve as appointed board
3536     members; and
3537          (c) any other provisions or information that petition sponsors or the board considers
3538     necessary or advisable for the governance of the infrastructure financing district.
3539          (3) A governing document shall:
3540          (a) include a description of infrastructure that the infrastructure financing district will
3541     provide funding for;
3542          (b) include, for a residential district, a provision for a transition from an appointment
3543     board position, whether at large or for a division, to an elected board position, based upon
3544     milestones or events that the government document identifies;
3545          (c) if applicable, include a copy of a development agreement that has been executed
3546     relating to infrastructure to be developed within the boundary of the infrastructure financing
3547     district and for which the infrastructure financing district anticipates providing funding; and
3548          (d) if applicable, describe a designated expansion area.
3549          (4) (a) An area may not be designated as a designated expansion area unless the area is
3550     contiguous to the original district boundary.
3551          (b) An area may not be annexed to an infrastructure financing district unless the area is
3552     within the designated expansion area that is described in a governing document that is included
3553     and submitted with the petition to create the infrastructure financing district.
3554          Section 57. Section 17B-2a-1304 is enacted to read:
3555          17B-2a-1304. Board of trustees -- Conflict of interest -- Compensation.
3556          (1) A board member with a personal investment described in Section 67-16-9 is not in
3557     violation of Section 67-16-9 if:
3558          (a) before beginning service as a board member, the board member complies with the
3559     disclosure requirements of Section 67-16-7, as though that section applied to the board

3560     member's ownership of a personal investment described in Section 67-16-9; and
3561          (b) during the board member's service, the board member complies with:
3562          (i) the disclosure requirements of Section 67-16-7, as provided in Subsection (1)(a),
3563     upon any significant change in the board member's personal investment; and
3564          (ii) applicable requirements of this part and the governing document.
3565          (2) An infrastructure financing district may not compensate a board member for the
3566     member's service on the board unless the board member is a resident within the boundary of
3567     the infrastructure financing district.
3568          Section 58. Section 17B-2a-1305 is enacted to read:
3569          17B-2a-1305. Relationship with other local entities.
3570          (1) The applicability of local land use regulations under Title 10, Chapter 9a,
3571     Municipal Land Use, Development, and Management Act, or Title 17, Chapter 27a, County
3572     Land Use, Development, and Management Act, is not affected by:
3573          (a) the creation or operation of an infrastructure financing district; or
3574          (b) the infrastructure financing district's provision of funding for the development of
3575     infrastructure within the infrastructure financing district boundary.
3576          (2) The boundary of an infrastructure financing district is not affected by:
3577          (a) a municipality's annexation of an unincorporated area of a county; or
3578          (b) the adjustment of a boundary shared by more than one municipality.
3579          (3) A debt, obligation, or other financial burden of an infrastructure financing district,
3580     including any liability of or claim or judgment against an infrastructure financing district:
3581          (a) is borne solely by the infrastructure financing district; and
3582          (b) is not the debt, obligation, or other financial burden of any other political
3583     subdivision of the state or of the state.
3584          (4) (a) Nothing in this part affects the requirement for infrastructure for which an
3585     infrastructure financing district provides funding to comply with all applicable standards and
3586     design, inspection, and other requirements of the county or municipality with jurisdiction over
3587     the infrastructure.
3588          (b) Upon the completion of infrastructure for which an infrastructure financing district
3589     has provided funding, the infrastructure shall be conveyed to the county, municipality, or
3590     special district with jurisdiction over the infrastructure, at no cost to the county, municipality,

3591     or special district.
3592          Section 59. Section 17B-2a-1306 is enacted to read:
3593          17B-2a-1306. Contesting an infrastructure financing district action.
3594          (1) As used in this section:
3595          (a) "Contestable action" means:
3596          (i) the creation of an infrastructure financing district or any part of the process to create
3597     an infrastructure financing district;
3598          (ii) a property tax levied by an infrastructure financing district or any part of the
3599     process to levy the tax; or
3600          (iii) a fee imposed by an infrastructure financing district or any part of the process to
3601     impose the fee.
3602          (b) "Effective date" means:
3603          (i) with respect to the creation of an infrastructure financing district, the date of the
3604     lieutenant governor's issuance of a certificate of creation under Section 67-1a-6.5;
3605          (ii) with respect to a property tax levied by an infrastructure financing district, the date
3606     of the board's adoption of a resolution levying the tax; and
3607          (iii) for a fee imposed by an infrastructure financing district, the date of the board's
3608     adoption of a resolution imposing the fee.
3609          (2) (a) A person may file a court action to contest the legality or validity of a
3610     contestable action.
3611          (b) A court action under Subsection (2)(a) is the exclusive remedy for a person to
3612     contest the legality or validity of a contestable action.
3613          (3) A person may not bring an action under Subsection (2) or serve a summons relating
3614     to the action more than 30 days after the effective date of the contestable action.
3615          (4) After the expiration of the 30-day period stated in Subsection (3):
3616          (a) a contestable action becomes incontestable against any person who has not brought
3617     an action and served a summons within the time specified in Subsection (3); and
3618          (b) a person may not bring an action to:
3619          (i) enjoin an infrastructure financing district from levying and collecting a property tax
3620     or imposing and collecting a fee that the infrastructure financing district levies or imposes; or
3621          (ii) attack or question in any way the legality or validity of a contestable action.

3622          (5) (a) This section does not affect a claim for a misuse of funds against the
3623     infrastructure financing district or an officer or employee of the infrastructure financing district.
3624          (b) A person may not seek relief for a claimed misuse of funds described in Subsection
3625     (5)(a) except for injunctive relief.
3626          (c) The limitation under Subsection (5)(b) does not affect the filing or prosecution of
3627     criminal charges for the misuse of infrastructure financing district funds.
3628          Section 60. Section 17B-2a-1307 is enacted to read:
3629          17B-2a-1307. Reporting requirements.
3630          (1) An infrastructure financing district shall submit an annual report, as provided in
3631     this section, to:
3632          (a) the state auditor; and
3633          (b) the clerk or recorder of each municipality in which the infrastructure financing
3634     district is located.
3635          (2) A report required under Subsection (1) shall:
3636          (a) be filed no later than May 31 of each year; and
3637          (b) report, for the preceding calendar year:
3638          (i) if applicable, the amount of property tax revenue the infrastructure financing district
3639     received;
3640          (ii) the amount of money the infrastructure financing district received from
3641     assessments levied in an assessment area designated under Title 11, Chapter 42, Assessment
3642     Area Act;
3643          (iii) the outstanding principal of any assessment bonds issued or other debt incurred by
3644     the infrastructure financing district;
3645          (iv) the amount spent for site improvement or site preparation costs, the installation of
3646     public infrastructure and improvements, and administrative costs;
3647          (v) any boundary change of the infrastructure financing district; and
3648          (vi) the number of residential housing units constructed within the infrastructure
3649     financing district.
3650          Section 61. Section 20A-1-512 is amended to read:
3651          20A-1-512. Midterm vacancies on local district boards -- Notice.
3652          (1) (a) When a vacancy occurs on any special district board for any reason, the

3653     following shall appoint a replacement to serve out the unexpired term in accordance with this
3654     section:
3655          (i) the special district board, if the person vacating the position was elected; or
3656          (ii) the appointing authority, as that term is defined in Section 17B-1-102, if the
3657     appointing authority appointed the person vacating the position.
3658          (b) Except as provided in Subsection (1)(c) or (d), before acting to fill the vacancy, the
3659     special district board or appointing authority shall:
3660          (i) give public notice of the vacancy for at least two weeks before the special district
3661     board or appointing authority meets to fill the vacancy by publishing the notice, as a class A
3662     notice under Section 63G-30-102, for the special district; and
3663          (ii) identify, in the notice:
3664          (A) the date, time, and place of the meeting where the vacancy will be filled;
3665          (B) the individual to whom an individual who is interested in an appointment to fill the
3666     vacancy may submit the individual's name for consideration; and
3667          (C) any submission deadline.
3668          (c) An appointing authority is not subject to Subsection (1)(b) if:
3669          (i) (A) the appointing authority appoints one of the appointing authority's own
3670     members; and
3671          [(ii)] (B) that member meets all applicable statutory board member qualifications[.]; or
3672          (ii) the vacancy is on the board of trustees of an infrastructure financing district with no
3673     residents within the district's boundary.
3674          (d) When a vacancy occurs on the board of a water conservancy district located in
3675     more than one county:
3676          (i) the board shall give notice of the vacancy to the county legislative bodies that
3677     nominated the vacating trustee as provided in Section 17B-2a-1005;
3678          (ii) the county legislative bodies described in Subsection (1)(d)(i) shall collectively
3679     compile a list of three nominees to fill the vacancy; and
3680          (iii) the governor shall, with the advice and consent of the Senate, appoint an
3681     individual to fill the vacancy from nominees submitted as provided in Subsection
3682     17B-2a-1005(2)(c).
3683          (2) If, 90 days after a vacancy occurs, the special district board [fails] has failed to

3684     appoint an individual to complete an elected board member's term [within 90 days, the
3685     legislative body of the county or municipality that created the special district shall fill], the
3686     vacancy shall be filled:
3687          (a) in accordance with the procedure for a special district described in Subsection
3688     (1)(b)[.]; and
3689          (b) by, as applicable:
3690          (i) the legislative body of the county or municipality that created the special district; or
3691          (ii) for a vacancy on a board of trustees of an infrastructure financing district, the
3692     legislative body of the county whose unincorporated area contains or the municipality whose
3693     boundary contains more of the area within the infrastructure financing district than is contained
3694     within the unincorporated area of any other county or within the boundary of any other
3695     municipality.
3696          Section 62. Section 52-4-207 is amended to read:
3697          52-4-207. Electronic meetings -- Authorization -- Requirements.
3698          (1) Except as otherwise provided for a charter school in Section 52-4-209, a public
3699     body may convene and conduct an electronic meeting in accordance with this section.
3700          (2) (a) A public body may not hold an electronic meeting unless the public body has
3701     adopted a resolution, rule, or ordinance governing the use of electronic meetings.
3702          (b) A resolution, rule, or ordinance described in Subsection (2)(a) that governs an
3703     electronic meeting shall establish the conditions under which a remote member is included in
3704     calculating a quorum.
3705          (c) A resolution, rule, or ordinance described in Subsection (2)(a) may:
3706          (i) prohibit or limit electronic meetings based on budget, public policy, or logistical
3707     considerations;
3708          (ii) require a quorum of the public body to:
3709          (A) be present at a single anchor location for the meeting; and
3710          (B) vote to approve establishment of an electronic meeting in order to include other
3711     members of the public body through an electronic connection;
3712          (iii) require a request for an electronic meeting to be made by a member of a public
3713     body up to three days prior to the meeting to allow for arrangements to be made for the
3714     electronic meeting;

3715          (iv) restrict the number of separate connections for members of the public body that are
3716     allowed for an electronic meeting based on available equipment capability;
3717          (v) if the public body is statutorily authorized to allow a member of the public body to
3718     act by proxy, establish the conditions under which a member may vote or take other action by
3719     proxy; or
3720          (vi) establish other procedures, limitations, or conditions governing electronic meetings
3721     not in conflict with this section.
3722          (3) A public body that convenes and conducts an electronic meeting shall:
3723          (a) give public notice of the electronic meeting in accordance with Section 52-4-202;
3724          (b) except for an electronic meeting described in Subsection (5), post written notice of
3725     the electronic meeting at the anchor location; and
3726          (c) except as otherwise provided in a rule of the Legislature applicable to the public
3727     body, at least 24 hours before the electronic meeting is scheduled to begin, provide each
3728     member of the public body a description of how to electronically connect to the meeting.
3729          (4) (a) Except as provided in Subsection (5), a public body that convenes and conducts
3730     an electronic meeting shall provide space and facilities at an anchor location for members of
3731     the public to attend the open portions of the meeting.
3732          (b) A public body that convenes and conducts an electronic meeting may provide
3733     means by which members of the public may attend the meeting remotely by electronic means.
3734          (5) Subsection (4)(a) does not apply to an electronic meeting if:
3735          (a) (i) the chair of the public body determines that:
3736          (A) conducting the meeting as provided in Subsection (4)(a) presents a substantial risk
3737     to the health or safety of those present or who would otherwise be present at the anchor
3738     location; or
3739          (B) the location where the public body would normally meet has been ordered closed
3740     to the public for health or safety reasons; and
3741          (ii) the public notice for the meeting includes:
3742          (A) a statement describing the chair's determination under Subsection (5)(a)(i);
3743          (B) a summary of the facts upon which the chair's determination is based; and
3744          (C) information on how a member of the public may attend the meeting remotely by
3745     electronic means;

3746          (b) (i) during the course of the electronic meeting, the chair:
3747          (A) determines that continuing to conduct the electronic meeting as provided in
3748     Subsection (4)(a) presents a substantial risk to the health or safety of those present at the
3749     anchor location; and
3750          (B) announces during the electronic meeting the chair's determination under Subsection
3751     (5)(b)(i)(A) and states a summary of the facts upon which the determination is made; and
3752          (ii) in convening the electronic meeting, the public body has provided means by which
3753     members of the public who are not physically present at the anchor location may attend the
3754     electronic meeting remotely by electronic means;
3755          (c) (i) the public body is a special district board of trustees established under Title 17B,
3756     Chapter 1, Part 3, Board of Trustees;
3757          (ii) the board of trustees' membership consists of:
3758          (A) at least two members who are elected or appointed to the board as owners of land,
3759     or as an agent or officer of the owners of land, under the criteria described in Subsection
3760     17B-1-302(2)(b); or
3761          (B) at least one member who is elected or appointed to the board as an owner of land,
3762     or as an agent or officer of the owner of land, under the criteria described in Subsection
3763     [17B-1-302(3)(a)(ii)] 17B-1-302(3)(b)(ii);
3764          (iii) the public notice required under Subsection 52-4-202(3)(a)(i)(B) for the electronic
3765     meeting includes information on how a member of the public may attend the meeting remotely
3766     by electronic means; and
3767          (iv) the board of trustees allows members of the public attending the meeting by
3768     remote electronic means to participate in the meeting; or
3769          (d) (i) the public body is a special service district administrative control board
3770     established under Title 17D, Chapter 1, Part 3, Administrative Control Board;
3771          (ii) the administrative control board's membership consists of:
3772          (A) at least one member who is elected or appointed to the board as an owner of land,
3773     or as an agent or officer of the owner of land, under the criteria described in Subsection
3774     17D-1-304(1)(a)(iii)(A) or (B), as applicable; or
3775          (B) members that qualify for election or appointment to the board because the owners
3776     of real property in the special service district meet or exceed the threshold percentage described

3777     in Subsection 17D-1-304(1)(b)(i);
3778          (iii) the public notice required under Subsection 52-4-202(3)(a)(i)(B) for the electronic
3779     meeting includes information on how a member of the public may attend the meeting remotely
3780     by electronic means; and
3781          (iv) the administrative control board allows members of the public attending the
3782     meeting by remote electronic means to participate in the meeting.
3783          (6) A determination under Subsection (5)(a)(i) expires 30 days after the day on which
3784     the chair of the public body makes the determination.
3785          (7) Compliance with the provisions of this section by a public body constitutes full and
3786     complete compliance by the public body with the corresponding provisions of Sections
3787     52-4-201 and 52-4-202.
3788          (8) Unless a public body adopts a resolution, rule, or ordinance described in Subsection
3789     (2)(c)(v), a public body that is conducting an electronic meeting may not allow a member to
3790     vote or otherwise act by proxy.
3791          (9) Except for a unanimous vote, a public body that is conducting an electronic
3792     meeting shall take all votes by roll call.
3793          Section 63. Section 67-1a-6.5 is amended to read:
3794          67-1a-6.5. Certification of local entity boundary actions -- Definitions -- Notice
3795     requirements -- Electronic copies -- Filing.
3796          (1) As used in this section:
3797          (a) "Applicable certificate" means:
3798          (i) for the impending incorporation of a city, town, special district, conservation
3799     district, or incorporation of a special district from a reorganized special service district, a
3800     certificate of incorporation;
3801          (ii) for the impending creation of a county, school district, special service district,
3802     community reinvestment agency, or interlocal entity, a certificate of creation;
3803          (iii) for the impending annexation of territory to an existing local entity, a certificate of
3804     annexation;
3805          (iv) for the impending withdrawal or disconnection of territory from an existing local
3806     entity, a certificate of withdrawal or disconnection, respectively;
3807          (v) for the impending consolidation of multiple local entities, a certificate of

3808     consolidation;
3809          (vi) for the impending division of a local entity into multiple local entities, a certificate
3810     of division;
3811          (vii) for the impending adjustment of a common boundary between local entities, a
3812     certificate of boundary adjustment; and
3813          (viii) for the impending dissolution of a local entity, a certificate of dissolution.
3814          (b) "Approved final local entity plat" means a final local entity plat, as defined in
3815     Section 17-23-20, that has been approved under Section 17-23-20 as a final local entity plat by
3816     the county surveyor.
3817          (c) "Approving authority" has the same meaning as defined in Section 17-23-20.
3818          (d) "Boundary action" has the same meaning as defined in Section 17-23-20.
3819          (e) "Center" means the Utah Geospatial Resource Center created under Section
3820     63A-16-505.
3821          (f) "Community reinvestment agency" has the same meaning as defined in Section
3822     17C-1-102.
3823          (g) "Conservation district" has the same meaning as defined in Section 17D-3-102.
3824          (h) "Interlocal entity" has the same meaning as defined in Section 11-13-103.
3825          (i) "Local entity" means a county, city, town, school district, special district,
3826     community reinvestment agency, special service district, conservation district, or interlocal
3827     entity.
3828          (j) "Notice of an impending boundary action" means a written notice, as described in
3829     Subsection (3), that provides notice of an impending boundary action.
3830          (k) "Special district" means the same as that term is defined in Section 17B-1-102.
3831          (l) "Special service district" means the same as that term is defined in Section
3832     17D-1-102.
3833          (2) Within 10 days after receiving a notice of an impending boundary action, the
3834     lieutenant governor shall:
3835          (a) (i) issue the applicable certificate, if:
3836          (A) the lieutenant governor determines that the notice of an impending boundary action
3837     meets the requirements of Subsection (3); and
3838          (B) except in the case of an impending local entity dissolution, the notice of an

3839     impending boundary action is accompanied by an approved final local entity plat;
3840          (ii) send the applicable certificate to the local entity's approving authority;
3841          (iii) return the original of the approved final local entity plat to the local entity's
3842     approving authority;
3843          (iv) send a copy of the applicable certificate and approved final local entity plat to:
3844          (A) the State Tax Commission;
3845          (B) the center; and
3846          (C) the county assessor, county surveyor, county auditor, and county attorney of each
3847     county in which the property depicted on the approved final local entity plat is located; and
3848          (v) send a copy of the applicable certificate to the state auditor, if the boundary action
3849     that is the subject of the applicable certificate is:
3850          (A) the incorporation or creation of a new local entity;
3851          (B) the consolidation of multiple local entities;
3852          (C) the division of a local entity into multiple local entities; or
3853          (D) the dissolution of a local entity; or
3854          (b) (i) send written notification to the approving authority that the lieutenant governor
3855     is unable to issue the applicable certificate, if:
3856          (A) the lieutenant governor determines that the notice of an impending boundary action
3857     does not meet the requirements of Subsection (3); or
3858          (B) the notice of an impending boundary action is:
3859          (I) not accompanied by an approved final local entity plat; or
3860          (II) accompanied by a plat or final local entity plat that has not been approved as a final
3861     local entity plat by the county surveyor under Section 17-23-20; and
3862          (ii) explain in the notification under Subsection (2)(b)(i) why the lieutenant governor is
3863     unable to issue the applicable certificate.
3864          (3) Each notice of an impending boundary action shall:
3865          (a) be directed to the lieutenant governor;
3866          (b) contain the name of the local entity or, in the case of an incorporation or creation,
3867     future local entity, whose boundary is affected or established by the boundary action;
3868          (c) describe the type of boundary action for which an applicable certificate is sought;
3869          (d) be accompanied by a letter from the Utah State Retirement Office, created under

3870     Section 49-11-201, to the approving authority that identifies the potential provisions under
3871     Title 49, Utah State Retirement and Insurance Benefit Act, that the local entity shall comply
3872     with, related to the boundary action, if the boundary action is an impending incorporation or
3873     creation of a local entity that may result in the employment of personnel; and
3874          (e) (i) contain a statement, signed and verified by the approving authority, certifying
3875     that all requirements applicable to the boundary action have been met; or
3876          (ii) in the case of the dissolution of a municipality, be accompanied by a certified copy
3877     of the court order approving the dissolution of the municipality.
3878          (4) The lieutenant governor may require the approving authority to submit a paper or
3879     electronic copy of a notice of an impending boundary action and approved final local entity plat
3880     in conjunction with the filing of the original of those documents.
3881          (5) (a) The lieutenant governor shall:
3882          (i) keep, index, maintain, and make available to the public each notice of an impending
3883     boundary action, approved final local entity plat, applicable certificate, and other document that
3884     the lieutenant governor receives or generates under this section;
3885          (ii) make a copy of each document listed in Subsection (5)(a)(i) available on the
3886     Internet for 12 months after the lieutenant governor receives or generates the document;
3887          (iii) furnish a paper copy of any of the documents listed in Subsection (5)(a)(i) to any
3888     person who requests a paper copy; and
3889          (iv) furnish a certified copy of any of the documents listed in Subsection (5)(a)(i) to
3890     any person who requests a certified copy.
3891          (b) The lieutenant governor may charge a reasonable fee for a paper copy or certified
3892     copy of a document that the lieutenant governor provides under this Subsection (5).
3893          (6) The lieutenant governor's issuance of a certificate of creation for an infrastructure
3894     financing district constitutes the state's approval of the creation of the infrastructure financing
3895     district.
3896          Section 64. Effective date.
3897          This bill takes effect on May 1, 2024.