ON MARCH 24, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 26, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, make the following revisions to present law: AUTHORITY TO CREATE INFRASTRUCTURE DEVELOPMENT DISTRICTS  Creates the "Real Estate Infrastructure Development Act of 2025," which provides independent authority for the establishment and governance of an infrastructure development district, and constitutes an alternative method of establishing and governing such a district.  Provides that the powers and authority granted by the amendment are in addition to all other powers and authority now residing with, or later granted to, municipalities, and all powers granted by this amendment are subject to the general control and jurisdiction of such municipalities.  Requires that in the event of conflict between this amendment and another law of this state, this amendment governs.  Authorizes the governing body of a host municipality to create, by resolution, one or more infrastructure development districts ("district") located in whole or part within the boundaries of such municipality.  Defines, for purposes of this amendment, a "host municipality" as the following:  For a district the boundaries of which are not located entirely within a single incorporated town or city that levies and directly administers the billing of ad valorem real property taxes, each county within which the boundaries of the district are located.  For districts the boundaries of which are located entirely within a single incorporated town or city that levies and directly administers the billing of ad valorem real property taxes, such town or city. PETITION PROCESS AND NOTICE  Authorizes a district to be initiated by a petition, including certain specified information, filed in the office of the clerk or other officers responsible for keeping the records of the governing body of each host municipality required to approve the establishment of such district, signed by the developer and the owners of each parcel of property proposed to be included in the district.  Authorizes a district to embrace two or more separate property areas.  Prohibits challenging the creation or existence of a district based on any projections of capital costs or other matters contained in the petition not being achieved.  Requires each governing body of a host municipality required to receive such a petition to order a public hearing be held between 30 and 45 days following the filing to determine whether the district will be established.  When a district must be approved by two or more host municipalities, authorizes the governing bodies to hold one or more joint public hearings.  Requires notice of such public hearing, outlining certain details, to be posted at least 14 days in advance of the meeting in a location where a member of the community may become aware of such notice as well as on a website maintained by the host municipality, if the host municipality has a website.  Requires such notice also be provided by mail to each real property owner within the proposed district at the address of each such owner as shown in the records of the county assessor or county trustee for providing tax notices. PUBLIC HEARING PROCEDURE  Authorizes persons whose property may be affected by such improvement to appear at the public hearing in person, by attorney, or by petition and protest against the creation of the district.  Requires the governing body to consider the objections and protests, if any, and may change the district boundaries or modify the proposal in such manner as may be deemed advisable by the governing body.  After all required readings and at the conclusion of the public hearing, requires each applicable governing body to adopt, adopt as amended, or reject the organization of the proposed infrastructure development district by the adoption or rejection of a resolution setting out the district.  Establishes that a person who fails to protest, or who filed a protest and withdrew it, is deemed to have waived any objection to the creation of the district, the making of the improvements, and the inclusion of the person's property in the district.  Requires a majority vote of the members of the governing body present and voting upon conclusion of the public hearing procedure for an infrastructure development district to be established by resolution.  If two or more host municipalities are required to approve the establishment of an infrastructure development district and the establishment resolutions adopted by the governing bodies of such municipalities vary in any material respect, prohibits the establishment resolutions from going into effect until one or more of the governing bodies adopts amendatory resolutions sufficient to cause the establishment resolutions to be consistent in all material respects. ESTABLISHMENT RESOLUTIONS  Requires the establishment resolution adopted by the governing body of the municipality to include certain identifying and financial information. BONDS, NOTES, AND OTHER OBLIGATIONS  Authorizes a host municipality to borrow money and issue bonds, notes, or other obligations to pay infrastructure costs identified in the establishment resolution, reimburse the developer for the prior payment of infrastructure costs, or refund or refinance such bonds, notes, or obligations.  Requires the maximum term of any bonds, notes, or other debt obligations issued to fund the costs of infrastructure, including any refinancing bonds, to not exceed 30 years from the first issuance of bonds, notes, or other debt obligations for the purpose of funding infrastructure.  Authorizes a host municipality to use the special assessment revenues, as outlined below, to pay the principal, premium, and interest on the bonds, notes, or other obligations.  Authorizes a host municipality to delegate its authority to issue revenue bonds to an industrial development corporation incorporated by the host municipality or another host municipality for the district, so long as certain procedures are followed and the assessments are held in trust by the host municipality for the benefit of the industrial development corporation when received.  Authorizes the host municipality to direct any property owner that is required to pay assessments to make the payments directly to an industrial development corporation or its assignee; however, if an industrial development corporation issues such bonds, then the assessments, and any interest collected on the assessments, constitute revenues, and the infrastructure financed thereby constitutes a project.  Authorizes the host municipality to delegate to a public building authority the authority to issue the revenue bonds, in which case the municipality must enter into an agreement with the public building authority to promptly pay the authority the assessments collected, including any interest, so long as the assessments are held in trust by the host municipality for the benefit of the public building authority when received.  Authorizes the host municipality to direct a property owner that is required to pay an assessment to make the payment directly to a public building authority or its assignee.  If a public building authority issues such bonds, provides that the assessments, and any interest collected on the assessments, constitute revenues, and public facilities and related expenses described in this amendment, whether transferred to the public building authority on behalf of the host municipality, to the host municipality itself, or to another governmental entity or provider of public utilities constitutes a project.  Authorizes a host municipality, industrial development corporation, or public building authority, as the case may be, to refund or refinance any bonds or other obligations issued under this amendment, including refunding or refinancing any bonds or loan agreements secured by the full faith and credit of the municipality and revenues received from assessments with bonds or a loan agreement secured only by such revenues.  Upon any such refunding, authorizes the amount of assessment payments to be adjusted pursuant to policies approved by the host municipality, so long as the assessment rate does not exceed that set forth in the establishment resolution.  Authorizes a host municipality, industrial development corporation, or public building authority, as the case may be, to also make the proceeds of bonds issued pursuant to this amendment, except any bonds secured by the full faith and credit and taxing power of a municipality, available to a developer through one or more loan agreements, and to assign or pledge the host municipality's rights under the loan agreement to the holders of the bonds. SPECIAL ASSESSMENTS  Upon the filing of a petition and the subsequent adoption of an establishment resolution, authorizes each host municipality to levy special assessments against all properties located within that portion of the infrastructure development district lying within the boundaries of such host municipality.  When a portion of an infrastructure development district lies within the boundaries of more than one host municipality, authorizes only one of the host municipalities to levy special assessments in the area, and the identification of the host municipality responsible for levying assessments for the area must be identified in the establishing resolution.  Requires the proceeds of the special assessments to be applied to the cost of all infrastructure costs and expenses of making public improvements within the district, which may include (i) infrastructure costs, (ii) impact fees, (iii) necessary administration expenses, and (iv) the payment of the principal, premium, and interest on any bonds, notes, or other debt obligations, and the funding of necessary reserves for debt service, capitalized interest, and costs of issuance related to any such bonds, notes, or other debt obligations issued.  Requires any special assessment proceeds in excess of the amounts needed above to be applied to the defeasance or prepayment of any bonds, notes, or other obligations issued.  Requires special assessments to be levied on the basis and in the amount set forth in the establishment resolution.  Authorizes an establishment resolution to set aside up to 5% of special assessments for administrative expenses.  Requires the governing body to determine the total costs and expenses to be paid from the special assessments, and apportion such costs and expenses upon the various properties located within the district in accordance with the benefits conferred upon the various properties.  Requires special assessments to fairly reflect the benefit received by a lot or parcel.  In determining the benefits to each lot or parcel, authorizes the governing body to consider frontage, area, acreage, the proportion that the assessed value of each lot or parcel bears to the whole assessed value of all properties within the district, or a combination of such factors.  Provides that the fact that assessments may be spread uniformly over a large area within the district is not conclusive that such assessment was arbitrarily made.  Requires special assessments to be imposed and collected annually.  If special assessment revenue bonds are issued, requires the appraised value of the developed property to be at least twice the amount of the bond issue.  Prohibits a special assessment from being levied on government-owned property without the approval of the governing body of the applicable governmental entity. ASSESSMENT ROLLS  After all assessments have been determined, requires the host municipality to prepare an assessment roll that (i) shows the location of the property and the owner of the property as shown in the records of the assessor and the amount of the assessment, and (ii) discloses future annual payments.  Requires the assessment roll to be updated annually and whenever a parcel within the district is subdivided.  Authorizes the host municipality to include the projected cost of maintaining the assessment roll in the special assessment. ADMINISTRATION OF ASSESSMENTS  Authorizes the governing body of a host municipality to adopt policies and procedures that the governing body deems appropriate to administer assessments.  Authorizes the governing body of a host municipality to adopt policies and procedures that address the reapportionment of assessments upon the request of property owners, reallocation of assessments upon subdivision of property, credits against assessment payments based upon other available funds.  Requires the host municipality to provide for full disclosure of an assessment and may administer penalties for failure to conform to the adopted policies and procedures, as well as agreed-upon standards.  Authorizes a host municipality to levy a maximum assessment based upon the estimated costs of the infrastructure and other permitted costs being assessed, and, in such case, the amount of the assessment must be reduced by the host municipality once the actual costs are established by the host municipality.  Authorizes the host municipality to provide that such assessments may become effective at different periods of time to take into account when the costs being assessed will be incurred.  Authorizes the governing body of the host municipality to provide that assessments must only be effective upon any issuance of bonds, notes, or other obligations imposed or incurred under this amendment.  As long as a district remains in existence, requires the host municipality to maintain a record of the general description of the boundaries of such district and the rate of assessment for properties within such district.  Requires such record to be made publicly available in substantially the same manner as ad valorem property tax rates.  Authorizes the host municipality to contract with outside professional administrators, and such costs may be included in the assessments. PREPAYMENT OF ASSESSMENTS  Authorizes any assessment to be voluntarily prepaid by the owner of the land assessed.  When a prepayment is made, requires the amount prepaid to be applied first to the interest until the first following date on which principal may be paid under the bond, and then to the principal.  Alternatively, authorizes a municipality to require the prepayment to be applied first to accrued interest, and then to the difference between interest that will accrue from the date of prepayment until the net principal payment of the bonds, and the rate of interest at which the principal is paid may be invested to earn interest from the date of prepayment until the principal payment date, with any remaining balance to be applied to the principal. LIENS  Provides that an assessment, any interest accruing on the assessment, and the costs of collection of the assessment constitutes a lien on and against the property upon which the assessment is levied as of the effective date of the resolution levying the assessment, which is superior to a lien of any trust deed, mortgage, mechanic's or material supplier's lien, or other encumbrance, except a lien of the state, county, or municipality for taxes.  Prohibits amounts collected by the host municipality from being allocated to the payment of a special assessment by an owner in the district until all taxes, penalties, and interest relating to real property taxes imposed by any governmental entity with the power of taxation have been paid in full.  Authorizes the host municipality to allocate any payment received from an owner that is designated to pay special assessments to the payment of taxes, penalties, and interest until such amounts are paid in full.  Otherwise, requires a host municipality to collect and enforce special assessments in a district in the same manner as the collection and enforcement of real property taxes. DELINQUENT ASSESSMENTS  If any assessment is or becomes delinquent and the property subject to the delinquency has been or is to be sold to the host municipality for the delinquency, requires that redemption of such property is permitted upon payment not later than one year after the date of sale.  Provides that redemption includes the full amount due, plus interest, any taxes paid by the host municipality, and accrued costs and redemption fees as may be prescribed by resolution of the host municipality, unless, in the judgment of the governing body of the municipality, the interest of the host municipality is served by accepting a lesser sum in settlement for the delinquency. INTEREST AND PENALTIES  In case of failure to pay an assessment or installment on or before the date prescribed by the governing body for such payment, requires that both interest of 1% per month and a penalty of 1% per month of the amount of such assessment or installment to be added to the assessment. NO OPERATING AUTHORITY  Does not authorize the developer or an owner to operate infrastructure, and the governmental or private entities authorized to provide any utility service to an area in a district retain the right to provide such service after the creation of a district.  Authorizes a development agreement between a developer and the host municipality to require the dedication or transfer of all infrastructure by the developer or owner to the appropriate governmental or private entity that provides the applicable service, and each such governmental or private entity is authorized to be a party to the development agreement.  Requires all infrastructure to be constructed in a district in compliance with all applicable laws of the applicable governmental entity. JOINT ACTION AMONGST HOST MUNICIPALITIES  In the case of a district that has two or more host municipalities, authorizes the host municipalities to enter into agreements between or among the host municipalities, and take collective or cooperative action, as may be required or appropriate to effectuate this amendment. DISSOLUTION OF DISTRICTS  Requires each district to be dissolved by the governing bodies of the host municipality, no later than 30 years from the date the district is established, or if earlier, immediately upon either:  Written petition filed by the owners of either 75% of the assessed value of the property in the district, based on the most recent certified city property tax rolls, or 50% of the owners of record within the district.  The payment and discharge of all outstanding bonds, notes, or other obligations payable solely from the special assessment revenues levied on the property within the district, as long as dissolution does not occur prior to the payment in full and discharge of such debt obligations. AUDITS  Provides that all books of accounts and financial records of the district are subject to annual audit by the comptroller of the treasury or the comptroller's designee.  Requires the host municipality to pay for the cost of the audit.  Requires the comptroller of the treasury to ensure that audits are prepared in accordance with generally accepted governmental auditing standards and determine if the audits meet minimum audit standards prescribed by the comptroller of the treasury.  Requires all audits to be completed as soon as practicable after the end of the fiscal year of the host municipality.  Requires on