Enrolled Copy H.B. 13
1 INFRASTRUCTURE FINANCING DISTRICTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan Senate Sponsor: Kirk A. Cullimore
2
3 LONG TITLE
4 General Description:
5 This bill enacts and modifies provisions related to infrastructure financing districts.
6 Highlighted Provisions:
7 This bill:
8 ▸ authorizes the creation of a type of special district for the purpose of financing
9 infrastructure;
10 ▸ provides a process for the creation of an infrastructure financing district;
11 ▸ provides for the powers and governance of an infrastructure financing district;
12 ▸ authorizes an infrastructure financing district to impose an assessment on property
13 within the district and to issue assessment bonds to finance infrastructure within the district;
14 ▸ authorizes specified local entities to provide for a longer installment payment period for
15 assessments imposed in an assessment area;
16 ▸ provides for the district to have bonding authority, with limitations;
17 ▸ authorizes the district to levy a property tax;
18 ▸ requires a district to provide proof to a county or municipality that an assessment bond
19 has been paid in full on residential property before the county or
20 municipality may conduct a final inspection before issuing a certificate of occupancy;
21 ▸ provides for the annexation of an area to an infrastructure financing district, the
22 withdrawal of an area from a district, and for dissolution of a district;
23 ▸ authorizes sponsors of a petition to create an infrastructure financing district to create a
24 governing document with provisions that govern the district, including providing for board
25 membership and the transition from appointed board positions to elected board positions; and
26 ▸ makes technical and conforming changes.
27 Money Appropriated in this Bill:
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28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 AMENDS:
33 10-9a-509, as last amended by Laws of Utah 2023, Chapter 478
34 11-42-102, as last amended by Laws of Utah 2023, Chapter 16
35 11-42-106, as last amended by Laws of Utah 2021, Chapters 314, 415
36 11-42-201, as last amended by Laws of Utah 2021, Chapter 314
37 11-42-202, as last amended by Laws of Utah 2023, Chapter 435
38 11-42-411, as last amended by Laws of Utah 2021, Chapters 314, 415
39 17-27a-508, as last amended by Laws of Utah 2023, Chapter 478
40 17B-1-102, as last amended by Laws of Utah 2023, Chapter 15
41 17B-1-103, as last amended by Laws of Utah 2023, Chapter 15
42 17B-1-105, as last amended by Laws of Utah 2023, Chapter 15
43 17B-1-201, as last amended by Laws of Utah 2023, Chapter 15
44 17B-1-202, as last amended by Laws of Utah 2023, Chapter 15
45 17B-1-203, as last amended by Laws of Utah 2023, Chapter 15
46 17B-1-204, as last amended by Laws of Utah 2023, Chapter 15
47 17B-1-205, as last amended by Laws of Utah 2023, Chapters 15, 116
48 17B-1-208, as last amended by Laws of Utah 2023, Chapter 15
49 17B-1-209, as last amended by Laws of Utah 2023, Chapters 15, 116
50 17B-1-210, as last amended by Laws of Utah 2023, Chapter 15
51 17B-1-211, as last amended by Laws of Utah 2023, Chapters 15, 435
52 17B-1-213, as last amended by Laws of Utah 2023, Chapter 15
53 17B-1-214, as last amended by Laws of Utah 2023, Chapter 15
54 17B-1-215, as last amended by Laws of Utah 2023, Chapter 15
55 17B-1-216, as last amended by Laws of Utah 2023, Chapter 15
56 17B-1-302, as last amended by Laws of Utah 2023, Chapters 15, 100
57 17B-1-303, as last amended by Laws of Utah 2023, Chapter 15
58 17B-1-306.5, as last amended by Laws of Utah 2023, Chapter 15
59 17B-1-403, as last amended by Laws of Utah 2023, Chapter 15
60 17B-1-404, as last amended by Laws of Utah 2023, Chapter 15
61 17B-1-405, as last amended by Laws of Utah 2023, Chapter 15
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62 17B-1-406, as last amended by Laws of Utah 2023, Chapter 15
63 17B-1-407, as last amended by Laws of Utah 2023, Chapter 15
64 17B-1-408, as last amended by Laws of Utah 2023, Chapter 15
65 17B-1-409, as last amended by Laws of Utah 2023, Chapter 15
66 17B-1-411, as last amended by Laws of Utah 2023, Chapter 15
67 17B-1-413, as last amended by Laws of Utah 2023, Chapters 15, 435
68 17B-1-414, as last amended by Laws of Utah 2023, Chapter 15
69 17B-1-504, as last amended by Laws of Utah 2023, Chapter 15
70 17B-1-506, as last amended by Laws of Utah 2023, Chapters 15, 116
71 17B-1-511, as last amended by Laws of Utah 2023, Chapter 15
72 17B-1-1001, as last amended by Laws of Utah 2023, Chapter 15
73 17B-1-1002, as last amended by Laws of Utah 2023, Chapter 15
74 17B-1-1302, as last amended by Laws of Utah 2023, Chapter 15
75 17B-1-1303, as last amended by Laws of Utah 2023, Chapter 15
76 17B-1-1310, as last amended by Laws of Utah 2023, Chapter 15
77 17B-1-1402, as last amended by Laws of Utah 2023, Chapter 15
78 17B-2a-404, as last amended by Laws of Utah 2018, Chapter 112
79 17B-2a-405, as last amended by Laws of Utah 2017, Chapter 112
80 17B-2a-407, as enacted by Laws of Utah 2023, Chapter 15 and further amended by Revisor
81 Instructions, Laws of Utah 2023, Chapter 16
82 17B-2a-604, as last amended by Laws of Utah 2018, Chapter 112
83 17B-2a-704, as last amended by Laws of Utah 2019, Chapter 40
84 17B-2a-905, as last amended by Laws of Utah 2019, Chapter 108
85 20A-1-512, as last amended by Laws of Utah 2023, Chapters 15, 435
86 52-4-207, as last amended by Laws of Utah 2023, Chapter 100
87 67-1a-6.5, as last amended by Laws of Utah 2023, Chapter 16
88 ENACTS:
89 17B-1-219, Utah Code Annotated 1953
90 17B-1-405.5, Utah Code Annotated 1953
91 17B-2a-1301, Utah Code Annotated 1953
92 17B-2a-1302, Utah Code Annotated 1953
93 17B-2a-1303, Utah Code Annotated 1953
94 17B-2a-1304, Utah Code Annotated 1953
95 17B-2a-1305, Utah Code Annotated 1953
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96 17B-2a-1306, Utah Code Annotated 1953
97 17B-2a-1307, Utah Code Annotated 1953
98
99 Be it enacted by the Legislature of the state of Utah:
100 Section 1. Section 10-9a-509 is amended to read:
101 10-9a-509 . Applicant's entitlement to land use application approval --
102 Municipality's requirements and limitations -- Vesting upon submission of development
103 plan and schedule.
104 (1) (a) (i) An applicant who has submitted a complete land use application as
105 described in Subsection (1)(c), including the payment of all application fees, is
106 entitled to substantive review of the application under the land use regulations:
107 (A) in effect on the date that the application is complete; and
108 (B) applicable to the application or to the information shown on the application.
109 (ii) An applicant is entitled to approval of a land use application if the application
110 conforms to the requirements of the applicable land use regulations, land use
111 decisions, and development standards in effect when the applicant submits a
112 complete application and pays application fees, unless:
113 (A) the land use authority, on the record, formally finds that a compelling,
114 countervailing public interest would be jeopardized by approving the
115 application and specifies the compelling, countervailing public interest in
116 writing; or
117 (B) in the manner provided by local ordinance and before the applicant submits
118 the application, the municipality formally initiates proceedings to amend the
119 municipality's land use regulations in a manner that would prohibit approval of
120 the application as submitted.
121 (b) The municipality shall process an application without regard to proceedings the
122 municipality initiated to amend the municipality's ordinances as described in
123 Subsection (1)(a)(ii)(B) if:
124 (i) 180 days have passed since the municipality initiated the proceedings; and
125 (ii) (A) the proceedings have not resulted in an enactment that prohibits approval
126 of the application as submitted; or
127 (B) during the 12 months prior to the municipality processing the application, or
128 multiple applications of the same type, are impaired or prohibited under the
129 terms of a temporary land use regulation adopted under Section 10-9a-504.
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130 (c) A land use application is considered submitted and complete when the applicant
131 provides the application in a form that complies with the requirements of applicable
132 ordinances and pays all applicable fees.
133 (d) A subsequent incorporation of a municipality or a petition that proposes the
134 incorporation of a municipality does not affect a land use application approved by a
135 county in accordance with Section 17-27a-508.
136 (e) The continuing validity of an approval of a land use application is conditioned upon
137 the applicant proceeding after approval to implement the approval with reasonable
138 diligence.
139 (f) A municipality may not impose on an applicant who has submitted a complete
140 application a requirement that is not expressed in:
141 (i) this chapter;
142 (ii) a municipal ordinance in effect on the date that the applicant submits a complete
143 application, subject to Subsection 10-9a-509(1)(a)(ii); or
144 (iii) a municipal specification for public improvements applicable to a subdivision or
145 development that is in effect on the date that the applicant submits an application.
146 (g) A municipality may not impose on a holder of an issued land use permit or a final,
147 unexpired subdivision plat a requirement that is not expressed:
148 (i) in a land use permit;
149 (ii) on the subdivision plat;
150 (iii) in a document on which the land use permit or subdivision plat is based;
151 (iv) in the written record evidencing approval of the land use permit or subdivision
152 plat;
153 (v) in this chapter;
154 (vi) in a municipal ordinance; or
155 (vii) in a municipal specification for residential roadways in effect at the time a
156 residential subdivision was approved.
157 (h) Except as provided in Subsection (1)(i) or (j), a municipality may not withhold
158 issuance of a certificate of occupancy or acceptance of subdivision improvements
159 because of an applicant's failure to comply with a requirement that is not expressed:
160 (i) in the building permit or subdivision plat, documents on which the building permit
161 or subdivision plat is based, or the written record evidencing approval of the land
162 use permit or subdivision plat; or
163 (ii) in this chapter or the municipality's ordinances.
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164 (i) A municipality may not unreasonably withhold issuance of a certificate of occupancy
165 where an applicant has met all requirements essential for the public health, public
166 safety, and general welfare of the occupants, in accordance with this chapter, unless:
167 (i) the applicant and the municipality have agreed in a written document to the
168 withholding of a certificate of occupancy; or
169 (ii) the applicant has not provided a financial assurance for required and uncompleted
170 public landscaping improvements or infrastructure improvements in accordance
171 with an applicable ordinance that the legislative body adopts under this chapter.
172 (j) A municipality may not conduct a final inspection required before issuing a
173 certificate of occupancy for a residential unit that is within the boundary of an
174 infrastructure financing district, as defined in Section 17B-1-102, until the applicant
175 for the certificate of occupancy provides adequate proof to the municipality that any
176 lien on the unit arising from the infrastructure financing district's assessment against
177 the unit under Title 11, Chapter 42, Assessment Area Act, has been released after
178 payment in full of the infrastructure financing district's assessment against that unit.
179 (2) A municipality is bound by the terms and standards of applicable land use regulations
180 and shall comply with mandatory provisions of those regulations.
181 (3) A municipality may not, as a condition of land use application approval, require a
182 person filing a land use application to obtain documentation regarding a school district's
183 willingness, capacity, or ability to serve the development proposed in the land use
184 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
187 subsection, the specified public agency vests in the municipality's applicable land use
188 maps, zoning map, hookup fees, impact fees, other applicable development fees, and
189 land use regulations in effect 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
192 use 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:
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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
205 represent at least 40% of the frontage, area, taxable value, fair market value, lots,
206 number of connections, or equivalent residential units of the property proposed to be
207 assessed, according to the same assessment method by which the assessment is
208 proposed to be levied, after eliminating:
209 (i) protests relating to:
210 (A) property that has been deleted from a proposed assessment area; or
211 (B) an improvement that has been deleted from the proposed improvements to be
212 provided to property within the proposed assessment area; and
213 (ii) protests that have been withdrawn under Subsection 11-42-203(3).
214 (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
215 written protests under Section 11-42-203 that represent at least 70% of the frontage,
216 area, taxable value, fair market value, lots, number of connections, or equivalent
217 residential units of the property proposed to be assessed, according to the same
218 assessment method by which the assessment is proposed to be levied, after
219 eliminating adequate protests under Subsection (1)(a).
220 (2) "Assessment area" means an area, or, if more than one area is designated, the aggregate
221 of all areas within a local entity's jurisdictional boundaries that is designated by a local
222 entity under Part 2, Designating an Assessment Area, for the purpose of financing the
223 costs of improvements, operation and maintenance, or economic promotion activities
224 that benefit property within the area.
225 (3) "Assessment bonds" means bonds that are:
226 (a) issued under Section 11-42-605; and
227 (b) payable in part or in whole from assessments levied in an assessment area,
228 improvement revenues, and a guaranty fund or reserve fund.
229