Representative Karen M. Peterson proposes the following substitute bill:


1     
LOCAL GOVERNMENT FEES MODIFICATIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen M. Peterson

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill modifies and enacts provisions relating to municipal fees.
10     Highlighted Provisions:
11          This bill:
12          ▸     prohibits a city from imposing a fee on the general public for broadband or public
13     safety service, with exceptions;
14          ▸     prohibits a town from imposing a fee on the general public for public safety service,
15     with exceptions;
16          ▸     authorizes a city to impose a transportation utility fee if the city complies with
17     certain requirements;
18          ▸     establishes a process and requirements for a city to impose a transportation utility
19     fee; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:

26     AMENDS:
27          10-1-406, as enacted by Laws of Utah 2003, Chapter 253
28          20A-7-101, as last amended by Laws of Utah 2023, Chapters 107, 116
29          20A-7-607, as last amended by Laws of Utah 2023, Chapters 107, 116
30          20A-7-609.5, as last amended by Laws of Utah 2020, Chapter 31
31          20A-7-613, as last amended by Laws of Utah 2023, Chapter 116
32     ENACTS:
33          10-5-133, Utah Code Annotated 1953
34          10-6-134.3, Utah Code Annotated 1953
35          10-6-134.5, Utah Code Annotated 1953
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 10-1-406 is amended to read:
39          10-1-406. Limitation of other telecommunications taxes or fees.
40          (1) As used in this section:
41          (a) "Broadband" means facilities and services used to make high-capacity, high-speed
42     Internet service available to users.
43          (b) "General fee" means the same as that term is defined in Section 10-6-134.3.
44          (2) (a) Except as provided in Subsection (2)(b), a city may not impose a general fee for
45     broadband.
46          (b) (i) Subject to Subsection (2)(b)(ii), a city that, before May 1, 2024, imposes a
47     general fee for broadband shall repeal the general fee no later than July 1, 2025.
48          (ii) (A) A city that, before May 1, 2024, issues a bond secured by revenue from a
49     general fee for broadband shall repeal the general fee within 60 days after the bond is paid.
50          (B) A city that, before May 1, 2024, imposes a general fee to pay for a bond the city
51     issued before January 1, 2024 to pay for broadband shall repeal the general fee within 60 days
52     after the bond is paid.
53          (3) Subject to the other provisions of this section, a municipality may not levy or
54     collect a telecommunications tax or fee on a person except for a telecommunications tax or fee
55     imposed by the municipality:
56          (a) on a telecommunications provider to recover the management costs of the

57     municipality caused by the activities of the telecommunications provider in the right-of-way of
58     a municipality if the telecommunications tax or fee:
59          (i) is imposed in accordance with Section 72-7-102; and
60          (ii) is not related to:
61          (A) a municipality's loss of use of a highway as a result of the activities of the
62     telecommunications provider in a right-of-way; or
63          (B) increased deterioration of a highway as a result of the activities of the
64     telecommunications provider in a right-of-way; or
65          (b) on a person that:
66          (i) is not subject to a municipal telecommunications license tax under this part; and
67          (ii) locates telecommunications facilities, as defined in Section 72-7-108, in the
68     municipality.
69          [(2)] (4) Subsection [(1)(a)] (3)(a) may not be interpreted as exempting a
70     telecommunications provider from complying with any ordinance:
71          (a) related to excavation, construction, or installation of a telecommunications facility;
72     and
73          (b) that addresses the safety and quality standards of the municipality for excavation,
74     construction, or installation.
75          [(3)] (5) A telecommunications tax or fee imposed under Subsection [(1)(b)] (3)(b)
76     shall be imposed:
77          (a) by ordinance; and
78          (b) on a competitively neutral basis.
79          Section 2. Section 10-5-133 is enacted to read:
80          10-5-133. General fee for public safety service prohibited -- Exception.
81          (1) As used in this section:
82          (a) (i) "General fee" means a fee imposed generally on the public at large or on a
83     segment of the public.
84          (ii) "General fee" does not include:
85          (A) a fee that a town charges an identifiable user of a town-provided service or a town
86     facility to cover the town's cost of the user's use of the service or facility; or
87          (B) a registration or similar fee that a town charges a participant in an activity or

88     program sponsored by the town to offset the town's administrative cost of sponsoring the
89     activity or program.
90          (b) "Public safety service" means law enforcement service, fire protection service, 911
91     ambulance or paramedic service, or emergency service.
92          (2) Except as provided in Subsection (3), a town may not impose a general fee for a
93     public safety service.
94          (3) A town may impose a general fee for a public safety service if:
95          (a) the fee is to generate revenue to pay for the town's obligation under an agreement
96     with one or more other political subdivisions for public safety service provided to the town; or
97          (b) the public safety service is volunteer public safety service.
98          (4) A town that, before May 1, 2024, imposes a general fee for a public safety service
99     that is prohibited under Subsection (2) shall repeal the general fee no later than July 1, 2025.
100          Section 3. Section 10-6-134.3 is enacted to read:
101          10-6-134.3. General fee for public safety service prohibited -- Exception.
102          (1) As used in this section:
103          (a) (i) "General fee" means a fee imposed generally on the public at large or on a
104     segment of the public.
105          (ii) "General fee" does not include:
106          (A) a fee that a city charges an identifiable user of a city-provided service or a city
107     facility to cover the city's cost of the user's use of the service or facility; or
108          (B) a registration or similar fee that a city charges a participant in an activity or
109     program sponsored by the city to offset the city's administrative cost of sponsoring the activity
110     or program.
111          (b) "Public safety service" means law enforcement service, fire protection service, 911
112     ambulance or paramedic service, or emergency service.
113          (2) Except as provided in Subsection (3), a city may not impose a general fee for a
114     public safety service.
115          (3) A city of the third, fourth, or fifth class may impose a general fee for a public safety
116     service if:
117          (a) the fee is to generate revenue to pay for the city's obligation under an agreement
118     with one or more other political subdivisions for public safety service provided to the city; or

119          (b) the public safety service is volunteer public safety service.
120          (4) A city that, before May 1, 2024, imposes a general fee for a public safety service
121     that is prohibited under Subsection (2) shall repeal the general fee no later than July 1, 2025.
122          Section 4. Section 10-6-134.5 is enacted to read:
123          10-6-134.5. Transportation utility fee.
124          (1) As used in this section:
125          (a) "Transportation facility" means any of the items listed in Subsection
126     59-12-2212.2(1) as purposes for which revenue from a local option sales and use tax under
127     Section 59-12-2212.2 may be expended.
128          (b) "Transportation utility fee" means a fee imposed on the public at large or on a user
129     segment to generate revenue to pay for costs associated with developing, constructing,
130     maintaining, operating, repairing, upgrading, or replacing a transportation facility.
131          (c) "Transportation fund" means a fund described in and established under Subsection
132     (8).
133          (d) "User segment" means a segment of the city's population based on a classification
134     established under Subsection (7).
135          (2) (a) A city may impose and collect a transportation utility fee:
136          (i) if the city establishes a reasonable relationship between:
137          (A) the amount of the transportation utility fee; and
138          (B) the services provided to, the benefits received by, or the need created by those who
139     pay the transportation utility fee; and
140          (ii) only as provided in this section.
141          (b) A city may impose a transportation utility fee to provide funding for any number of
142     transportation facilities but may not have more than a single transportation utility fee in effect
143     at a time.
144          (3) To impose or increase a transportation utility fee, a municipality shall:
145          (a) conduct a study as provided in Subsection (4);
146          (b) follow the process described in Subsection (5); and
147          (c) adopt an ordinance imposing or increasing a transportation utility fee, as provided
148     in Subsection (6).
149          (4) (a) A city may not impose or increase a transportation utility fee unless the city first

150     conducts a study as described in this Subsection (4).
151          (b) A study under Subsection (4)(a) shall:
152          (i) determine and provide a reasonable estimate of the need for a new transportation
153     facility or for maintaining, operating, repairing, upgrading, or replacing an existing
154     transportation facility;
155          (ii) identify and provide a reasonable estimate of existing funding sources that could be
156     used to pay for a new transportation facility or for maintaining, operating, repairing, upgrading,
157     or replacing an existing transportation facility;
158          (iii) explain and provide a reasonable calculation showing how existing city funding
159     sources are inadequate to cover the cost of constructing a new transportation facility or
160     maintaining, operating, repairing, upgrading, or replacing an existing transportation facility;
161          (iv) determine whether the proposed transportation utility fee is reasonably related to:
162          (A) the services provided to those who pay the transportation utility fee;
163          (B) the benefits received by persons who pay the transportation utility fee; or
164          (C) the need created by those who pay the transportation utility fee;
165          (v) explain the reasonable relationship determined under Subsection (4)(a)(iv); and
166          (vi) determine whether there is a reasonable basis for different rates within a proposed
167     transportation utility fee based on different levels of services provided to, benefit received by,
168     or need created by those who pay the transportation utility fee, as described in Subsection (7),
169     and, if so, explain the basis for the proposed different rates.
170          (c) A city that conducts a study under Subsection (4)(a) shall post a copy of the study
171     on the city's website, if the city has a website.
172          (5) (a) Subject to Subsection (5)(b), before adopting an ordinance imposing or
173     increasing a transportation utility fee, the governing body shall comply with the notice and
174     public hearing requirements established in Sections 10-6-113 and 10-6-114.
175          (b) (i) The governing body of a city that proposes to impose or increase a transportation
176     utility fee shall, in addition to the notice required under Section 10-6-113, provide notice of the
177     proposed fee and the public hearing:
178          (A) in a notice with the city's monthly utility bill, if the city mails or emails residents a
179     monthly utility bill; or
180          (B) through another primary means of communicating with residents, if the city does

181     not provide residents a monthly utility bill.
182          (ii) The public hearing required for a proposal to impose or increase a transportation
183     utility fee may be held in conjunction with a budget hearing under Section 10-6-114 but shall
184     be separate and distinct from the budget hearing.
185          (6) (a) A transportation utility fee may be imposed or increased only by an ordinance
186     adopted by the city's governing body.
187          (b) (i) Subject to Subsection (6)(b)(ii), the governing body may adopt an ordinance
188     imposing or increasing a transportation utility fee at the same meeting in which the public body
189     adopts the city budget.
190          (ii) The governing body vote on the imposition or increase of a transportation utility
191     fee shall be separate from the governing body vote on the city budget or any other item.
192          (c) The amount of a transportation utility fee for the city's population or for any user
193     segment shall be reasonably related to the services provided to, benefits received by, or need
194     created by those within the city's population or user segment who pay the transportation utility
195     fee, as determined in the study under Subsection (4).
196          (d) (i) Revenue from a transportation utility fee may not supplant existing general fund
197     appropriations that the city has budgeted for transportation facilities as of the date the
198     transportation utility fee becomes effective.
199          (ii) The limitation under Subsection (6)(d)(i) does not apply to a designated
200     transportation facilities capital or reserve account established before the effective date of a
201     transportation utility fee under this section.
202          (7) (a) A city shall establish different rates within a transportation utility fee for
203     different classifications of users of a transportation facility if the rates and classifications have a
204     reasonable basis.
205          (b) (i) A reasonable basis under Subsection (7)(a) may include:
206          (A) different levels of benefit received by users of a transportation utility fee;
207          (B) different impacts on or usage of transportation facilities by those who pay the
208     transportation utility fee;
209          (C) a difference in the cost of providing a transportation facility to different
210     classifications of users;
211          (D) a difference in levels of risk to the operation of a transportation facility for

212     different classifications of users;
213          (E) differing contributions that different classifications of users make, separate from a
214     transportation utility fee, to the cost of constructing, maintaining, or operating a transportation
215     facility; and
216          (F) distinguishable differences in the needs or conditions of different classifications of
217     users based on economic, public policy, or other identifiable elements.
218          (ii) A reasonable basis under Subsection (7)(a) does not include:
219          (A) whether a user resides inside or outside the city boundary; or
220          (B) a consideration of the age of development within areas with the same zoning
221     designation.
222          (8) (a) A city that imposes a transportation utility fee shall establish a fund as provided
223     in this Subsection (8).
224          (b) A city shall deposit into the transportation fund all revenue from a transportation
225     utility fee.
226          (c) A city may not:
227          (i) deposit into or commingle with a transportation fund any money from any other
228     source; or
229          (ii) use money in a transportation fund for any purpose other than to pay for the cost of:
230          (A) the development or construction of a new transportation facility;
231          (B) upgrading or replacing an existing transportation facility;
232          (C) the maintenance, operation, or repair of an existing transportation facility; or
233          (D) reasonable administrative costs associated with the transportation fund or with
234     activities described in Subsections (8)(c)(ii)(A), (B), and (C).
235          (d) Notwithstanding Sections 10-6-124, 10-6-125, and 10-6-135.5, a city may not
236     transfer money in a transportation fund to any other fund or to a separate account.
237          (9) (a) A city that imposes a transportation utility fee shall conduct an annual review of
238     the transportation utility fee as provided in this Subsection (9) and prepare a written report of
239     the annual review.
240          (b) In an annual review under Subsection (9)(a), the governing body shall:
241          (i) review the balance of the transportation fund;
242          (ii) review the current amount of the transportation utility fee;

243          (iii) demonstrate that there is still a reasonable relationship between the amount of the
244     transportation utility fee and the transportation services provided to, benefits received by, or
245     need created by those who pay the fee;
246          (iv) consider other possible revenue sources that the city could use for transportation
247     facilities instead of a transportation utility fee;
248          (v) ensure that Subsection (6)(d) is being complied with; and
249          (vi) demonstrate that revenue from the transportation utility fee continues to be needed
250     to provide a transportation facility that the city could not otherwise provide from other existing
251     revenue sources.
252          (c) (i) A city shall submit a copy of the written report under Subsection (9)(a) to the
253     state auditor.
254          (ii) A city may fulfill the requirement of Subsection (9)(c)(i) by submitted the written
255     report as part of the city's annual financial reports submitted to the state auditor under Section
256     10-6-150.
257          (10) (a) A transportation utility fee imposed under this section expires 10 years after
258     the effective date of the ordinance imposing the transportation utility fee.
259          (b) The 10-year period in Subsection (10)(a) begins again with any subsequent
260     adoption of any ordinance imposing a transportation utility fee after the initial adoption of an
261     ordinance imposing a transportation utility fee.
262          (11) An ordinance imposing a transportation utility fee is subject to local referendum
263     as provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures.
264          (12) A city that, before May 1, 2024, imposes a fee to pay for a transportation facility
265     shall, no later than July 1, 2026:
266          (a) ensure that requirements of this section have been complied with for the fee that the
267     city imposes; or
268          (b) repeal the fee.
269          Section 5. Section 20A-7-101 is amended to read:
270          20A-7-101. Definitions.
271          As used in this chapter:
272          (1) "Approved device" means a device described in Subsection 20A-21-201(4) used to
273     gather signatures for the electronic initiative process, the electronic referendum process, or the

274     electronic candidate qualification process.
275          (2) "Budget officer" means:
276          (a) for a county, the person designated as finance officer as defined in Section 17-36-3;
277          (b) for a city, the person designated as budget officer in Subsection 10-6-106(4);
278          (c) for a town, the town council; or
279          (d) for a metro township, the person described in Subsection (2)(a) for the county in
280     which the metro township is located.
281          (3) "Certified" means that the county clerk has acknowledged a signature as being the
282     signature of a registered voter.
283          (4) "Circulation" means the process of submitting an initiative petition or a referendum
284     petition to legal voters for their signature.
285          (5) "Electronic initiative process" means:
286          (a) as it relates to a statewide initiative, the process, described in Sections 20A-7-215
287     and 20A-21-201, for gathering signatures; or
288          (b) as it relates to a local initiative, the process, described in Sections 20A-7-514 and
289     20A-21-201, for gathering signatures.
290          (6) "Electronic referendum process" means:
291          (a) as it relates to a statewide referendum, the process, described in Sections
292     20A-7-313 and 20A-21-201, for gathering signatures; or
293          (b) as it relates to a local referendum, the process, described in Sections 20A-7-614 and
294     20A-21-201, for gathering signatures.
295          (7) "Eligible voter" means a legal voter who resides in the jurisdiction of the county,
296     city, or town that is holding an election on a ballot proposition.
297          (8) "Final fiscal impact statement" means a financial statement prepared after voters
298     approve an initiative that contains the information required by Subsection 20A-7-202.5(2) or
299     20A-7-502.5(2).
300          (9) "Initial fiscal impact statement" means
301          a financial statement prepared under Section 20A-7-202.5 after the filing of a statewide
302     initiative application.
303          (10) "Initial fiscal impact and legal statement" means a financial and legal statement
304     prepared under Section 20A-7-502.5 or 20A-7-602.5 for a local initiative or a local

305     referendum.
306          (11) "Initiative" means a new law proposed for adoption by the public as provided in
307     this chapter.
308          (12) "Initiative application" means:
309          (a) for a statewide initiative, an application described in Subsection 20A-7-202(2) that
310     includes all the information, statements, documents, and notarized signatures required under
311     Subsection 20A-7-202(2); or
312          (b) for a local initiative, an application described in Subsection 20A-7-502(2) that
313     includes all the information, statements, documents, and notarized signatures required under
314     Subsection 20A-7-502(2).
315          (13) "Initiative packet" means a copy of the initiative petition, a copy of the proposed
316     law, and the signature sheets, all of which have been bound together as a unit.
317          (14) "Initiative petition":
318          (a) as it relates to a statewide initiative, using the manual initiative process:
319          (i) means the form described in Subsection 20A-7-203(2)(a), petitioning for
320     submission of the initiative to the Legislature or the legal voters; and
321          (ii) if the initiative proposes a tax increase, includes the statement described in
322     Subsection 20A-7-203(2)(b);
323          (b) as it relates to a statewide initiative, using the electronic initiative process:
324          (i) means the form described in Subsections 20A-7-215(2) and (3), petitioning for
325     submission of the initiative to the Legislature or the legal voters; and
326          (ii) if the initiative proposes a tax increase, includes the statement described in
327     Subsection 20A-7-215(5)(b);
328          (c) as it relates to a local initiative, using the manual initiative process:
329          (i) means the form described in Subsection 20A-7-503(2)(a), petitioning for
330     submission of the initiative to the legislative body or the legal voters; and
331          (ii) if the initiative proposes a tax increase, includes the statement described in
332     Subsection 20A-7-503(2)(b); or
333          (d) as it relates to a local initiative, using the electronic initiative process:
334          (i) means the form described in Subsection 20A-7-514(2)(a), petitioning for
335     submission of the initiative to the legislative body or the legal voters; and

336          (ii) if the initiative proposes a tax increase, includes the statement described in
337     Subsection 20A-7-514(4)(a).
338          (15) (a) "Land use law" means a law of general applicability, enacted based on the
339     weighing of broad, competing policy considerations, that relates to the use of land, including
340     land use regulation, a general plan, a land use development code, an annexation ordinance, the
341     rezoning of a single property or multiple properties, or a comprehensive zoning ordinance or
342     resolution.
343          (b) "Land use law" does not include a land use decision, as defined in Section
344     10-9a-103 or 17-27a-103.
345          (16) "Legal signatures" means the number of signatures of legal voters that:
346          (a) meet the numerical requirements of this chapter; and
347          (b) have been obtained, certified, and verified as provided in this chapter.
348          (17) "Legal voter" means an individual who is registered to vote in Utah.
349          (18) "Legally referable to voters" means:
350          (a) for a proposed local initiative, that the proposed local initiative is legally referable
351     to voters under Section 20A-7-502.7; or
352          (b) for a proposed local referendum, that the proposed local referendum is legally
353     referable to voters under Section 20A-7-602.7.
354          (19) "Local attorney" means the county attorney, city attorney, or town attorney in
355     whose jurisdiction a local initiative or referendum petition is circulated.
356          (20) "Local clerk" means the county clerk, city recorder, or town clerk in whose
357     jurisdiction a local initiative or referendum petition is circulated.
358          (21) "Local fiscal law" means a local tax law or a local transportation fee law.
359          [(21)] (22) (a) "Local law" includes:
360          (i) an ordinance;
361          (ii) a resolution;
362          (iii) a land use law;
363          (iv) a land use regulation, as defined in Section 10-9a-103; or
364          (v) other legislative action of a local legislative body.
365          (b) "Local law" does not include a land use decision, as defined in Section 10-9a-103.
366          [(22)] (23) "Local legislative body" means the legislative body of a county, city, town,

367     or metro township.
368          [(23)] (24) "Local obligation law" means a local law passed by the local legislative
369     body regarding a bond that was approved by a majority of qualified voters in an election.
370          [(24)] (25) "Local tax law" means a law, passed by a political subdivision with an
371     annual or biannual calendar fiscal year, that increases a tax or imposes a new tax.
372          (26) "Local transportation fee law" means an ordinance adopted under Section
373     10-6-134.5 imposing or increasing a transportation utility fee, as defined in Section 10-6-134.5.
374          [(25)] (27) "Manual initiative process" means the process for gathering signatures for
375     an initiative using paper signature packets that a signer physically signs.
376          [(26)] (28) "Manual referendum process" means the process for gathering signatures
377     for a referendum using paper signature packets that a signer physically signs.
378          [(27)] (29) "Measure" means a proposed constitutional amendment, an initiative, or
379     referendum.
380          [(28)] (30) "Referendum" means a process by which a law passed by the Legislature or
381     by a local legislative body is submitted or referred to the voters for their approval or rejection.
382          [(29)] (31) "Referendum application" means:
383          (a) for a statewide referendum, an application described in Subsection 20A-7-302(2)
384     that includes all the information, statements, documents, and notarized signatures required
385     under Subsection 20A-7-302(2); or
386          (b) for a local referendum, an application described in Subsection 20A-7-602(2) that
387     includes all the information, statements, documents, and notarized signatures required under
388     Subsection 20A-7-602(2).
389          [(30)] (32) "Referendum packet" means a copy of the referendum petition, a copy of
390     the law being submitted or referred to the voters for their approval or rejection, and the
391     signature sheets, all of which have been bound together as a unit.
392          [(31)] (33) "Referendum petition" means:
393          (a) as it relates to a statewide referendum, using the manual referendum process, the
394     form described in Subsection 20A-7-303(2)(a), petitioning for submission of a law passed by
395     the Legislature to legal voters for their approval or rejection;
396          (b) as it relates to a statewide referendum, using the electronic referendum process, the
397     form described in Subsection 20A-7-313(2), petitioning for submission of a law passed by the

398     Legislature to legal voters for their approval or rejection;
399          (c) as it relates to a local referendum, using the manual referendum process, the form
400     described in Subsection 20A-7-603(2)(a), petitioning for submission of a local law to legal
401     voters for their approval or rejection; or
402          (d) as it relates to a local referendum, using the electronic referendum process, the form
403     described in Subsection 20A-7-614(2), petitioning for submission of a local law to legal voters
404     for their approval or rejection.
405          [(32)] (34) "Signature":
406          (a) for a statewide initiative:
407          (i) as it relates to the electronic initiative process, means an electronic signature
408     collected under Section 20A-7-215 and Subsection 20A-21-201(6)(c); or
409          (ii) as it relates to the manual initiative process:
410          (A) means a holographic signature collected physically on a signature sheet described
411     in Section 20A-7-203; and
412          (B) does not include an electronic signature;
413          (b) for a statewide referendum:
414          (i) as it relates to the electronic referendum process, means an electronic signature
415     collected under Section 20A-7-313 and Subsection 20A-21-201(6)(c); or
416          (ii) as it relates to the manual referendum process:
417          (A) means a holographic signature collected physically on a signature sheet described
418     in Section 20A-7-303; and
419          (B) does not include an electronic signature;
420          (c) for a local initiative:
421          (i) as it relates to the electronic initiative process, means an electronic signature
422     collected under Section 20A-7-514 and Subsection 20A-21-201(6)(c); or
423          (ii) as it relates to the manual initiative process:
424          (A) means a holographic signature collected physically on a signature sheet described
425     in Section 20A-7-503; and
426          (B) does not include an electronic signature; or
427          (d) for a local referendum:
428          (i) as it relates to the electronic referendum process, means an electronic signature

429     collected under Section 20A-7-614 and Subsection 20A-21-201(6)(c); or
430          (ii) as it relates to the manual referendum process:
431          (A) means a holographic signature collected physically on a signature sheet described
432     in Section 20A-7-603; and
433          (B) does not include an electronic signature.
434          [(33)] (35) "Signature sheets" means sheets in the form required by this chapter that are
435     used under the manual initiative process or the manual referendum process to collect signatures
436     in support of an initiative or referendum.
437          [(34)] (36) "Special local ballot proposition" means a local ballot proposition that is
438     not a standard local ballot proposition.
439          [(35)] (37) "Sponsors" means the legal voters who support the initiative or referendum
440     and who sign the initiative application or referendum application.
441          [(36)] (38) (a) "Standard local ballot proposition" means a local ballot proposition for
442     an initiative or a referendum.
443          (b) "Standard local ballot proposition" does not include a property tax referendum
444     described in Section 20A-7-613.
445          [(37)] (39) "Tax percentage difference" means the difference between the tax rate
446     proposed by an initiative or an initiative petition and the current tax rate.
447          [(38)] (40) "Tax percentage increase" means a number calculated by dividing the tax
448     percentage difference by the current tax rate and rounding the result to the nearest thousandth.
449          [(39)] (41) "Verified" means acknowledged by the person circulating the petition as
450     required in Section 20A-7-105.
451          Section 6. Section 20A-7-607 is amended to read:
452          20A-7-607. Evaluation by the local clerk -- Determination of election for vote on
453     referendum.
454          (1) In relation to the manual referendum process, when the local clerk receives a
455     referendum packet from a county clerk, the local clerk shall record the number of the
456     referendum packet received.
457          (2) The county clerk shall:
458          (a) in relation to the manual referendum process:
459          (i) post the names, voter identification numbers, and dates of signatures described in

460     Subsection 20A-7-105(6)(a)(iii) on the lieutenant governor's website, in a conspicuous location
461     designated by the lieutenant governor, for at least 45 days; and
462          (ii) update on the local clerk's website the number of signatures certified as of the date
463     of the update; or
464          (b) in relation to the electronic referendum process:
465          (i) post the names, voter identification numbers, and dates of signatures described in
466     Subsection 20A-7-616(3) on the lieutenant governor's website, in a conspicuous location
467     designated by the lieutenant governor, for at least 45 days; and
468          (ii) update on the lieutenant governor's website the number of signatures certified as of
469     the date of the update.
470          (3) The local clerk:
471          (a) shall, except as provided in Subsection (3)(b), declare the referendum petition to be
472     sufficient or insufficient:
473          (i) in relation to the manual referendum process, no later than 111 days after the day of
474     the deadline, described in Subsection 20A-7-105(5)(a)(iv), to submit a referendum packet to
475     the county clerk; or
476          (ii) in relation to the electronic referendum process, no later than 111 days after the day
477     of the deadline, described in Subsection 20A-7-616(2), to collect a signature; or
478          (b) may declare the referendum petition to be insufficient before the day described in
479     Subsection (3)(a) if:
480          (i) in relation to the manual referendum process, the total of all valid signatures on
481     timely and lawfully submitted referendum packets that have been certified by the county clerk,
482     plus the number of signatures on timely and lawfully submitted referendum packets that have
483     not yet been evaluated for certification, is less than the number of names required under
484     Section 20A-7-601;
485          (ii) in relation to the electronic referendum process, the total of all timely and lawfully
486     submitted valid signatures that have been certified by the county clerks, plus the number of
487     timely and lawfully submitted valid signatures received under Subsection 20A-21-201(6)(b)
488     that have not yet been evaluated for certification, is less than the number of names required
489     under Section 20A-7-601; or
490          (iii) a requirement of this part has not been met.

491          (4) (a) If the total number of names certified under Subsection (3) equals or exceeds
492     the number of names required under Section 20A-7-601, and the requirements of this part are
493     met, the local clerk shall mark upon the front of the referendum petition the word "sufficient."
494          (b) If the total number of names certified under Subsection (3) does not equal or
495     exceed the number of names required under Section 20A-7-601 or a requirement of this part is
496     not met, the local clerk shall mark upon the front of the referendum petition the word
497     "insufficient."
498          (c) The local clerk shall immediately notify any one of the sponsors of the local clerk's
499     finding.
500          (d) After a referendum petition is declared insufficient, a person may not submit
501     additional signatures to qualify the referendum for the ballot.
502          (5) (a) If the local clerk refuses to declare a referendum petition sufficient, any voter
503     may, no later than 10 days after the day on which the local clerk declares the referendum
504     petition insufficient, apply to the appropriate court for an order finding the referendum petition
505     legally sufficient.
506          (b) If the court determines that the referendum petition is legally sufficient, the local
507     clerk shall mark the referendum petition "sufficient" and consider the declaration of sufficiency
508     effective as of the date on which the referendum petition should have been declared sufficient
509     by the local clerk's office.
510          (c) If the court determines that a referendum petition filed is not legally sufficient, the
511     court may enjoin the local clerk and all other officers from:
512          (i) certifying or printing the ballot title and numbers of that referendum on the official
513     ballot for the next election; or
514          (ii) as it relates to a local [tax] fiscal law that is conducted entirely by mail, certifying,
515     printing, or mailing the ballot title and numbers of that referendum under Section 20A-7-609.5.
516          (6) A referendum petition determined to be sufficient in accordance with this section is
517     qualified for the ballot.
518          (7) (a) Except as provided in Subsection (7)(b) or (c), if a referendum relates to
519     legislative action taken after April 15, the election officer may not place the referendum on an
520     election ballot until a primary election, a general election, or a special election the following
521     year.

522          (b) The election officer may place a referendum described in Subsection (7)(a) on the
523     ballot for a special, primary, or general election held during the year that the legislative action
524     was taken if the following agree, in writing, on a timeline to place the referendum on that
525     ballot:
526          (i) the local clerk;
527          (ii) the county clerk; and
528          (iii) the attorney for the county or municipality that took the legislative action.
529          (c) For a referendum on a land use law, if, before August 30, the local clerk or a court
530     determines that the total number of certified names equals or exceeds the number of signatures
531     required in Section 20A-7-601, the election officer shall place the referendum on the election
532     ballot for:
533          (i) the next general election; or
534          (ii) another election, if the following agree, in writing, on a timeline to place the
535     referendum on that ballot:
536          (A) the affected owners, as defined in Section 10-9a-103 or 17-27a-103, as applicable;
537          (B) the local clerk;
538          (C) the county clerk; and
539          (D) the attorney for the county or municipality that took the legislative action.
540          Section 7. Section 20A-7-609.5 is amended to read:
541          20A-7-609.5. Election on referendum challenging local fiscal law conducted
542     entirely by mail.
543          (1) An election officer may administer an election on a referendum challenging a local
544     [tax] fiscal law entirely by mail.
545          (2) For purposes of an election conducted under this section, the election officer shall:
546          (a) designate as the election day the day that is 30 days after the day on which the
547     election officer complies with Subsection (2)(b); and
548          (b) within 30 days after the day on which the referendum described in Subsection (1)
549     qualifies for the ballot, mail to each registered voter within the voting precincts to which the
550     local [tax] fiscal law applies:
551          (i) a manual ballot;
552          (ii) a statement that there will be no polling place for the election;

553          (iii) a statement specifying the election day described in Subsection (2)(a);
554          (iv) a business reply mail envelope;
555          (v) instructions for returning the ballot that include an express notice about any
556     relevant deadlines that the voter must meet in order for the voter's vote to be counted;
557          (vi) a warning, on a separate page of colored paper in boldface print, indicating that if
558     the voter fails to follow the instructions included with the manual ballot, the voter will be
559     unable to vote in that election because there will be no polling place for the election; and
560          (vii) (A) a copy of the proposition information pamphlet relating to the referendum if a
561     proposition information pamphlet relating to the referendum was published under Section
562     20A-7-401.5; or
563          (B) a website address where an individual may view a copy of the proposition
564     information pamphlet described in Subsection (2)(b)(vii)(A).
565          (3) An election officer who administers an election under this section shall:
566          (a) (i) obtain, in person, the signatures of each voter within that voting precinct before
567     the election; or
568          (ii) obtain the signature of each voter within the voting precinct from the county clerk;
569     and
570          (b) maintain the signatures on file in the election officer's office.
571          (4) (a) Upon receiving a returned manual ballot under this section, the election officer
572     shall compare the signature on each return envelope with the voter's signature that is
573     maintained on file and verify that the signatures are the same.
574          (b) If the election officer questions the authenticity of the signature on the return
575     envelope, the election officer shall immediately contact the voter to verify the signature.
576          (c) If there is not a signature on the return envelope or if the election officer determines
577     that the signature on the return envelope does not match the voter's signature that is maintained
578     on file, the election officer shall:
579          (i) disqualify the ballot; and
580          (ii) notify the voter of the disqualification and the reason for the disqualification.
581          Section 8. Section 20A-7-613 is amended to read:
582          20A-7-613. Property tax referendum petition.
583          (1) As used in this section, "certified tax rate" means the same as that term is defined in

584     Section 59-2-924.
585          (2) Except as provided in this section, the requirements of this part apply to a
586     referendum petition challenging a taxing entity's legislative body's vote:
587          (a) to impose a tax rate that exceeds the certified tax rate[.]; or
588          (b) to impose or modify a transportation utility fee under Section 10-6-134.5.
589          (3) Notwithstanding Subsection 20A-7-105(5)(a)(iv), the sponsors or an agent of the
590     sponsors shall deliver a signed and verified referendum packet to the county clerk of the county
591     in which the packet was circulated before 5 p.m. no later than the earlier of:
592          (a) 30 days after the day on which the first individual signs the packet; or
593          (b) 40 days after the day on which the local clerk complies with Subsection
594     20A-7-604(3).
595          (4) Notwithstanding Subsections 20A-7-105(6)(a) and (9), the county clerk shall take
596     the actions required in Subsections 20A-7-105(6)(a) and (9) within 10 working days after the
597     day on which the county clerk receives the signed and verified referendum packet as described
598     in Subsection (3).
599          (5) The local clerk shall take the actions required by Section 20A-7-607 within two
600     working days after:
601          (a) in relation to the manual referendum process, the day on which the local clerk
602     receives the referendum packets from the county clerk; or
603          (b) in relation to the electronic referendum process, the deadline described in
604     Subsection 20A-7-616(2).
605          (6) Notwithstanding Subsection 20A-7-608(2), the local attorney shall prepare the
606     ballot title within two working days after the day on which the referendum petition is declared
607     sufficient for submission to a vote of the people.
608          (7) Notwithstanding Subsection 20A-7-609(2)(c), a referendum that qualifies for the
609     ballot under this section shall appear on the ballot for the earlier of the next regular general
610     election or the next municipal general election unless a special election is called.
611          (8) The election officer shall mail manual ballots on a referendum under this section
612     the later of:
613          (a) the time provided in Section 20A-3a-202 or 20A-16-403; or
614          (b) the time that ballots are prepared for mailing under this section.

615          (9) Section 20A-7-402 does not apply to a referendum described in this section.
616          (10) (a) If a majority of voters does not vote against imposing the tax at a rate
617     calculated to generate the increased revenue budgeted, adopted, and approved by the taxing
618     entity's legislative body:
619          (i) the certified tax rate for the fiscal year during which the referendum petition is filed
620     is its most recent certified tax rate; and
621          (ii) the proposed increased revenues for purposes of establishing the certified tax rate
622     for the fiscal year after the fiscal year described in Subsection (10)(a)(i) are the proposed
623     increased revenues budgeted, adopted, and approved by the taxing entity's legislative body
624     before the filing of the referendum petition.
625          (b) If a majority of voters votes against imposing a tax at the rate established by the
626     vote of the taxing entity's legislative body, the certified tax rate for the taxing entity is the
627     taxing entity's most recent certified tax rate.
628          (c) If the tax rate is set in accordance with Subsection (10)(a)(ii), a taxing entity is not
629     required to comply with the notice and public hearing requirements of Section 59-2-919 if the
630     taxing entity complies with those notice and public hearing requirements before the referendum
631     petition is filed.
632          (11) The ballot title shall, at a minimum, include in substantially this form the
633     following: "Shall the [name of the taxing entity] be authorized to levy a tax rate in the amount
634     sufficient to generate an increased property tax revenue of [amount] for fiscal year [year] as
635     budgeted, adopted, and approved by the [name of the taxing entity].".
636          (12) A taxing entity shall pay the county the costs incurred by the county that are
637     directly related to meeting the requirements of this section and that the county would not have
638     incurred but for compliance with this section.
639          (13) (a) An election officer shall include on a ballot a referendum that has not yet
640     qualified for placement on the ballot, if:
641          (i) sponsors file an application for a referendum described in this section;
642          (ii) the ballot will be used for the election for which the sponsors are attempting to
643     qualify the referendum; and
644          (iii) the deadline for qualifying the referendum for placement on the ballot occurs after
645     the day on which the ballot will be printed.

646          (b) If an election officer includes on a ballot a referendum described in Subsection
647     (13)(a), the ballot title shall comply with Subsection (11).
648          (c) If an election officer includes on a ballot a referendum described in Subsection
649     (13)(a) that does not qualify for placement on the ballot, the election officer shall inform the
650     voters by any practicable method that the referendum has not qualified for the ballot and that
651     votes cast in relation to the referendum will not be counted.
652          Section 9. Effective date.
653          This bill takes effect on May 1, 2024.