17D-4 - Public Infrastructure District Act

Title 17D > 17D-4

Sections (15)

General Provisions

17D-4-101 - Title.

This chapter is known as the “Public Infrastructure District Act.”

17D-4-102 - Definitions.

As used in this chapter: 17D-4-102(1) “Board” means the board of trustees of a public infrastructure district. 17D-4-102(2) “Capital city” means a city of the first class that is the capital of the state that has a convention center within the boundary of the city. 17D-4-102(3) “Convention center” means a government facility:owned by the county in which the convention center is located;primarily used for hosting conventions, exhibitions, trade shows, or similar events; andis located within the boundaries of a city of the first class in a county of the first class. 17D-4-102(4) “Convention center public infrastructure district” means a public infrastructure district created to finance public infrastructure and improvements associated with and benefiting a convention center area and surrounding area, including the costs to finance any public or privately owned improvements, including:convention center-related improvements;arena improvements; anda convention revitalization project, as that term is defined in Section 63N-3-602. 17D-4-102(5) “Convention center public infrastructure district in a capital city” means a convention center public infrastructure district created to finance public infrastructure and improvements for a convention center in a capital city, including:the costs to finance any public improvements that serve the convention center;privately owned improvements if the improvements are an allowed use of funds under Section 63N-3-1403; anda convention center revitalization project, as that term is defined in Section 63N-3-602. 17D-4-102(6) “Creating entity” means the county, municipality, basic special district, or development authority that approves the creation of a public infrastructure district. 17D-4-102(7) “Development authority” means:the Utah Inland Port Authority created in Section 11-58-201;the Point of the Mountain State Land Authority created in Section 11-59-201;the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201; orthe military installation development authority created in Section 63H-1-201. 17D-4-102(8) “District applicant” means the person proposing the creation of a public infrastructure district. 17D-4-102(9) “Division” means a division of a public infrastructure district:that is relatively equal in number of eligible voters or potential eligible voters to all other divisions within the public infrastructure district, taking into account existing or potential developments which, when completed, would increase or decrease the population within the public infrastructure district; andwhich a member of the board represents. 17D-4-102(10) “Governing document” means the document governing a public infrastructure district to which the creating entity agrees before the creation of the public infrastructure district, as amended from time to time, and subject to the limitations of Title 17B, Chapter 1, Provisions Applicable to All Special Districts, and this chapter. 17D-4-102(11) “Limited tax bond” means a bond:that is directly payable from and secured by ad valorem property taxes that are levied:by a public infrastructure district that issues the bond; andon taxable property within the district;that is a general obligation of the public infrastructure district; andfor which the ad valorem property tax levy for repayment of the bond does not exceed the property tax levy rate limit established under Section 17D-4-303 for any fiscal year, except as provided in Subsection 17D-4-301(13).”Limited tax bond” does not include:a short-term bond;a tax and revenue anticipation bond; ora special assessment bond. 17D-4-102(12) “Municipal advisor” means a person that:advises a political subdivision on matters related to the issuance of bonds by governmental entities, including the pricing, sales, and marketing of bonds and the procuring of bond ratings, credit enhancement, and insurance with respect to bonds;is qualified to provide the advice described in Subsection (12)(a)(i);is not an officer or employee of the political subdivision receiving advice;has not been engaged to provide underwriting services in connection with a transaction in which the person will provide advice to the political subdivision; andhas experience doing business related to the issuance of bonds in the state.”Municipal advisor” may include:an individual who meets the description in Subsection (12)(a); ora firm of individuals who collectively meet the description in Subsection (12)(a). 17D-4-102(13) “Participation agreement” means an executed agreement between a local government entity and project participant, as those terms are defined in Section 63N-3-1401.”Participation agreement” includes an agreement under Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone. 17D-4-102(14) “Public infrastructure and improvements” means:infrastructure, utilities, improvements, facilities, buildings, or remediation that:benefit the public and are owned by a public entity or a public or private utility;benefit the public and are publicly maintained or operated by a public entity; orare privately owned and are expressly permitted to be acquired or financed by the public infrastructure district’s governing document or an agreement between the public infrastructure district and the public infrastructure district’s creating entity;publicly or privately owned roads, rights-of-way, trails, parking, or parking structures; andfor a convention center public infrastructure district, infrastructure, utilities, improvements, facilities, buildings, or remediation that:benefit the public and are owned by a public entity or a utility;benefit the public and are publicly maintained or operated by a public entity;are privately owned and provide a substantial benefit, as determined by the board of a convention center public infrastructure district, to:the development and operation of a convention center public infrastructure district; orthe residents or property owners within the boundaries of a convention center public infrastructure district or within the boundaries of a convention center reinvestment zone to which the convention center public infrastructure district is either within or adjacent; orif the infrastructure and improvements are outside of the boundaries of a convention center public infrastructure district, benefit a convention center public infrastructure district to which the convention center public infrastructure district project area is either within or adjacent.”Public infrastructure and improvements” also means:the same as that term is defined in Section 11-58-102, for a public infrastructure district created by the Utah Inland Port Authority created in Section 11-58-201;the same as that term is defined in Section 11-70-101, for a public infrastructure district created by the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201;the same as that term is defined in Section 63H-1-102, for a public infrastructure district created by the military installation development authority created in Section 63H-1-201; for any public infrastructure district created by a development authority, any infrastructure, utilities, improvements, facilities, buildings, or remediation that are privately owned and benefit the public; andfor a public infrastructure district to which tax increment revenue is pledged or distributed, any publicly or privately owned infrastructure, utilities, improvements, facilities, buildings, or remediation that is a permitted use of the tax increment revenue. 17D-4-102(15) “Tax increment revenue” means the difference between the tax revenue generated from or within a specific area and the revenue that would be generated if a base taxable value were used.”Tax increment revenue” includes any concept substantially the same as the definition in Subsection (15)(a), regardless of the name of the concept.

17D-4-103 - Provisions applicable to public infrastructure districts.

17D-4-103(1) A public infrastructure district:is a body corporate and politic with perpetual succession;is a quasi-municipal corporation;is a political subdivision of the state;is separate and distinct from, and independent of, any other public entity or political subdivision of the state; andmay sue and be sued. 17D-4-103(2) Each public infrastructure district is governed by and has the powers stated in:this chapter; andTitle 17B, Chapter 1, Provisions Applicable to All Special Districts. 17D-4-103(3) This chapter applies only to a public infrastructure district. 17D-4-103(4) Except as modified or exempted by this chapter, a public infrastructure district is: to the same extent as if the public infrastructure district were a special district, subject to the provisions in:Title 17B, Chapter 1, Provisions Applicable to All Special Districts; andTitle 20A, Election Code; andsubject to the provisions in Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act. 17D-4-103(5) If there is a conflict between a provision in Title 17B, Chapter 1, Provisions Applicable to All Special Districts, and a provision in this chapter, the provision in this chapter supersedes the conflicting provision in Title 17B, Chapter 1, Provisions Applicable to All Special Districts. 17D-4-103(6) The annexation of an unincorporated area by a municipality or the adjustment of a boundary shared by more than one municipality does not affect the boundaries of a public infrastructure district.

17D-4-104 - Conditions where property owner consent is not required.

17D-4-104(1) an easement; 17D-4-104(2) a right-of-way; or 17D-4-104(3) a public improvement, utility improvement, or related improvement.

Creation, Governance, and Powers of a Public Infrastructure District

17D-4-201 - Creation — Annexation or withdrawal of property.

17D-4-201(1) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions Applicable to All Special Districts, a public infrastructure district may not be created unless a petition is filed with the creating entity that contains the signatures of 100% of surface property owners within the applicable area consenting to the creation of the public infrastructure district.As used in this Subsection (1)(b):“Military land” means the same as that term is defined in Section 63H-1-102.”Project area” means the same as that term is defined in Section 63H-1-102.Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and any other provision of this chapter, a development authority may adopt a resolution creating a public infrastructure district if all owners of surface property proposed to be included within the public infrastructure district consent in writing to the creation of the public infrastructure district.For purposes of Subsection (1)(b)(ii), if the surface property proposed to be included within the public infrastructure district includes military land that is within a project area, the owner of the military land within the project area is the lessee of the military land.A public infrastructure district created under Subsection (1)(b)(ii) may be created as a subsidiary of the development authority that adopts the resolution creating the public infrastructure district. 17D-4-201(2) The following do not apply to the creation of a public infrastructure district:Section 17B-1-203;Section 17B-1-204;Subsection 17B-1-208(2);Section 17B-1-212; orSection 17B-1-214.The protest period described in Section 17B-1-213 may be waived in whole or in part with the consent of 100% of the surface property owners within the applicable area approving the creation of the public infrastructure district.If the protest period is waived under Subsection (2)(b), a resolution approving the creation of the public infrastructure district may be adopted in accordance with Subsection 17B-1-213(5).A petition meeting the requirements of Subsection (1) may be certified under Section 17B-1-209.Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30 days of the day on which a resolution creating a public infrastructure district is adopted. 17D-4-201(3) Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the boundaries of a public infrastructure district may be annexed into the public infrastructure district if the following requirements are met:adoption of resolutions of the board and the creating entity, each approving of the annexation; oradoption of a resolution of the board to annex the area, provided that the governing document or creation resolution for the public infrastructure district authorizes the board to annex an area outside of the boundaries of the public infrastructure district without future consent of the creating entity; anda petition is filed with the public infrastructure district that contains the signatures of 100% of surface property owners within the area proposed to be annexed, demonstrating the surface property owners’ consent to the annexation into the public infrastructure district. 17D-4-201(4) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be withdrawn from a public infrastructure district if the following requirements are met:adoption of resolutions of the board and the creating entity, each approving of the withdrawal; oradoption of a resolution of the board to withdraw the property, provided that the governing document or creation resolution for the public infrastructure district authorizes the board to withdraw property from the public infrastructure district without further consent from the creating entity; anda petition is filed with the public infrastructure district that contains the signatures of 100% of surface property owners within the area proposed to be withdrawn, demonstrating that the surface property owners consent to the withdrawal from the public infrastructure district.If any bonds that the public infrastructure district issues are allocable to the area to be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains subject to any taxes, fees, or assessments that the public infrastructure district imposes until the bonds or any associated refunding bonds are paid.Upon meeting the requirements of Subsection (3) or (4)(a), the board shall:within 30 days of the day on which a resolution is adopted or a petition is filed under Subsection (3) or (4)(a), file with the lieutenant governor:a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); anda copy of an approved final local entity plat, as defined in Section 67-1a-6.5; andcomply with the requirements of Section 17B-1-512, except:Subsections 17B-1-512(1)(b) and (c) do not apply; andthe time periods described in this section govern. 17D-4-201(5) A creating entity may impose limitations on the powers of a public infrastructure district through the governing document. 17D-4-201(6) A public infrastructure district is separate and distinct from the creating entity.Except as provided in Subsection (6)(b)(ii), any financial burden of a public infrastructure district:is borne solely by the public infrastructure district; andis not borne by the creating entity, by the state, or by any municipality, county, or other political subdivision.Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing document may require:the district applicant to bear the initial costs of the public infrastructure district; andthe public infrastructure district to reimburse the district applicant for the initial costs the creating entity bears.Nothing in this Subsection (6) precludes a public infrastructure district from qualifying directly for an impact fee offset, credit, or refund under Title 11, Chapter 36a, Impact Fees Act, regarding any qualifying system improvements financed by the public infrastructure district.Any liability, judgment, or claim against a public infrastructure district:is the sole responsibility of the public infrastructure district; anddoes not constitute a liability, judgment, or claim against the creating entity, the state, or any municipality, county, or other political subdivision.The public infrastructure district solely bears the responsibility of any collection, enforcement, or foreclosure proceeding with regard to any fee or assessment the public infrastructure district imposes.The creating entity does not bear the responsibility described in Subsection (6)(d)(i)(A).A public infrastructure district, and not the creating entity, shall undertake the enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in accordance with Title 11, Chapter 42, Assessment Area Act. 17D-4-201(7) A creating entity may establish criteria in determining whether to approve or disapprove of the creation of a public infrastructure district, including:historical performance of the district applicant;compliance with the creating entity’s master plan;credit worthiness of the district applicant;plan of finance of the public infrastructure district; andproposed development within the public infrastructure district. 17D-4-201(8) The creation of a public infrastructure district is subject to the sole discretion of the creating entity responsible for approving or rejecting the creation of the public infrastructure district.The proposed creating entity bears no liability for rejecting the proposed creation of a public infrastructure district.

17D-4-202 - Public infrastructure district board — Governing document.

17D-4-202(1) The legislative body or board of the creating entity shall appoint the initial members of the board of a public infrastructure district, in accordance with the governing document.A governing document approved by the legislative body or board of the creating entity may provide for the board of a public infrastructure district to, upon a vacancy on the board, appoint an individual to the board so long as the individual meets the requirements to serve on a public infrastructure district board described in this section.For public infrastructure districts not described in Subsection (1)(b), and except as provided in Subsection (1)(d):if there is a vacancy on the board of a public infrastructure district, or a board member provides notice to the legislative body or board of the creating entity of the board member’s intention to resign from the board, the legislative body or board of the creating entity shall appoint a replacement board member within 45 days from the day on which the vacancy first occurs or the board member provides notice of the board member’s intent to resign; andif a legislative body or board of the creating entity fails to fill a vacancy on the board within the time period described in Subsection (1)(c)(i), the board of the public infrastructure district may appoint an individual who is eligible to serve on the board according to the requirements of this section to fill the board vacancy.If a public infrastructure district board position has transitioned from appointment to election, as described in Subsection (4), and an elected board position becomes vacant, the provisions of Section 20A-1-512 apply to fill the vacancy. 17D-4-202(2) Unless otherwise limited in the governing document and except as provided in Subsection (2)(b), the initial term of each member of the board is four years.Notwithstanding Subsection (2)(a), approximately half of the members of the initial board shall serve a six-year term so that, after the expiration of the initial term, the term of approximately half the board members expires every two years.A board may elect that a majority of the board serve an initial term of six years.After the initial term, the term of each member of the board is four years.A member of the board who is appointed shall continue to serve on the board of the public infrastructure district until a replacement board member is appointed. 17D-4-202(3) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to be a resident within the boundaries of the public infrastructure district if:all of the surface property owners consent to the waiver of the residency requirement;there are no residents within the boundaries of the public infrastructure district;no qualified candidate timely files to be considered for appointment to the board; orno qualified individual files a declaration of candidacy for a board position in accordance with Subsection 17B-1-306(5).Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member elected for a division or board position that has transitioned from an appointed to an elected board member in accordance with this section.An individual who is not a resident within the boundaries of the public infrastructure district may not serve as a board member unless the individual is:an owner of land or an agent or officer of the owner of land within the boundaries of the public infrastructure district; anda registered voter at the individual’s primary residence.If the creating entity determines that a public infrastructure district is not anticipated to have permanent residents within the public infrastructure district’s boundaries, or is anticipated to be primarily composed of non-residential property or non-primary residential property, a governing document may allow the creating entity to continue to appoint a property owner, or the agent of a property owner, to the public infrastructure district board.A governing document may allow for a property owner to recommend a property owner or a property owner’s agent for appointment to the public infrastructure district board in numbers proportional to the property owner’s ownership of land, or value of land, within a public infrastructure district. 17D-4-202(4) A governing document may provide for a transition from legislative body appointment under Subsection (1) to a method of election by registered voters based upon milestones or events that the governing document identifies, including a milestone for each division or individual board position providing that when the milestone is reached:for a division, the registered voters of the division elect a member of the board in place of an appointed member at the next municipal general election for the board position; orfor an at large board position established in the governing document, the registered voters of the public infrastructure district elect a member of the board in place of an appointed member at the next municipal general election for the board position.Regardless of whether a board member is elected under Subsection (4)(a), the position of each remaining board member shall continue to be appointed under Subsection (1) until the member’s respective division or board position surpasses the density milestone described in the governing document. 17D-4-202(5) Subject to Subsection (5)(c), the board may, in the board’s discretion but no more frequently than every four years, reestablish the boundaries of each division so that each division that has reached a milestone specified in the governing document, as described in Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.In reestablishing division boundaries under Subsection (5)(a), the board shall consider existing or potential developments within the divisions that, when completed, would increase or decrease the number of eligible voters within the division.The governing document may prohibit the board from reestablishing, without the consent of the creating entity, the division boundaries as described in Subsection (5)(a). 17D-4-202(6) A public infrastructure district may not compensate a board member for the member’s service on the board under Section 17B-1-307 unless the board member is a resident within the boundaries of the public infrastructure district. 17D-4-202(7) A governing document shall:include a boundary description and a map of the public infrastructure district;state the number of board members;describe any divisions of the public infrastructure district;establish any applicable property tax levy rate limit for the public infrastructure district;establish any applicable limitation on the principal amount of indebtedness for the public infrastructure district; andinclude other information that the public infrastructure district or the creating entity determines to be necessary or advisable. 17D-4-202(8) Except as provided in Subsection (8)(b), the board and the governing body of the creating entity may amend a governing document by each adopting a resolution that approves the amended governing document.Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy rate limitation requires the consent of 100% of surface property owners within the boundaries of the public infrastructure district. 17D-4-202(9) A board member is not in violation of Section 67-16-9 if the board member:discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8 and files the disclosure with the creating entity:before any appointment or election; andupon any significant change in the business relationship; andconducts the affairs of the public infrastructure district in accordance with this title and any parameters described in the governing document. 17D-4-202(10) Notwithstanding any other provision of this section, the governing document governs the number, appointment, and terms of board members of a public infrastructure district created by the development authority.

17D-4-202.1 - Convention center public infrastructure — District board — Petition and process requirements — Governing document.

17D-4-202.1(1) As used is this section:“City” means a municipality of the first class located in a county of the first class in which a convention center is located.”County” means a county in which a convention center is located.”Lessee” means a lessee of property within the proposed convention center public infrastructure district that leases the property from the city or county for a term of at least 10 years.”Petitioner” means:a surface property owner, a property owner, or lessee of property within a proposed convention center public infrastructure district’s boundaries that initiates the formation of a convention center public infrastructure district; ora surface property owner under this chapter, and Title 17B, Chapter 1, Provisions Applicable to All Special Districts, in relation to a convention center public infrastructure district.”Petitioner” does not include a city, county, or other public entity. 17D-4-202.1(2) A convention center public infrastructure district shall be created in a city upon the submission of a petition in accordance with this part and shall have all the powers of a public infrastructure district under this chapter. 17D-4-202.1(3) A convention center public infrastructure district may only be created within a city in which a convention center is located. 17D-4-202.1(4) The petition described in Subsection (2) shall:include the governing document; andfor a petition to a city which has previously authorized revitalization taxes described in Section 63N-3-1403, include as part of the governing document approval and authorization of an interlocal agreement pledging and securing the revitalization taxes for debt of the proposed convention center public infrastructure district. 17D-4-202.1(5) The process for creating a convention center public infrastructure district or a convention center public infrastructure district in a capital city shall be initiated by the submission of a petition and a governing document to the city, except that:the city recorder shall certify the petition within 14 days from the day the petitioner submits the petition to the city recorder;if the city recorder fails to certify the petition within the time described in Subsection (5)(a)(i), the petition shall be considered certified; andwithin 30 days from the day that the petitioner submits the petition to the city recorder, or if the city and the petitioner have come to an agreement as described in Subsection (5)(b), the city shall adopt a resolution to approve:the governing document the petitioner submitted with the petition; andthe creation of a convention center public infrastructure district or a convention center public infrastructure district in a capital city.Notwithstanding Subsection (5)(a), the city and petitioner may negotiate the finalized terms of the petition, including the terms of an interlocal agreement, within a time period agreed upon by the city and petitioner. 17D-4-202.1(6) The boundaries of a convention center public infrastructure district shall be limited to an area within a one-half-mile radius of a convention center.If a parcel is intersected by the radius described in Subsection (6)(a), the entire parcel may be included in the district. 17D-4-202.1(7) A convention center public infrastructure district shall be subject to the following provisions regarding taxation and financing:a convention center public infrastructure district may levy an administrative tax of up to 0.0005 per dollar of taxable value on taxable property within the district; andthe administrative tax shall be used exclusively for administrative expenses and may not be used for capital costs or debt payment. 17D-4-202.1(8) A convention center public infrastructure district shall be governed by the governing document submitted and approved as described in this section. 17D-4-202.1(9) The convention center public infrastructure board shall consist of five members as follows:three members shall be representatives of the petitioner and selected by the petitioner;one member may be a representative of the city and selected by the mayor of the city; andone member may be a representative of the county and selected by the mayor of the county. 17D-4-202.1(10) If a city or county mayor chooses not to select a member of the board as described in Subsection (9)(b) or (c), elects in writing to permanently abdicate the board seat, or chooses to vacate a member at any time, the petitioner shall select a member for the replacement who shall not be a representative of the city or county in which the convention center is located. 17D-4-202.1(11) A convention center public infrastructure district shall enter into an interlocal agreement with the relevant county that provides that, for any revenue that is transferred to the convention center public infrastructure district from a convention center reinvestment zone created pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the mayor of the county shall have approval authority for the expenditure of any revenue related to a convention center revitalization project, as that term is defined in Section 63N-3-602.The approval authority described in Subsection (11)(a) does not include approval authority over:any bonds or debt or related terms issued by the convention center public infrastructure district; orrevenue subject to a participation agreement entered into pursuant to Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone.

17D-4-203 - Public infrastructure district powers.

17D-4-203(1) A public infrastructure district has all of the authority conferred upon a special district under Section 17B-1-103. 17D-4-203(2) A public infrastructure district may:issue negotiable bonds to pay:all or part of the costs of acquiring, acquiring an interest in, improving, or extending any of the improvements, facilities, or property allowed under Section 11-14-103;capital costs of improvements in an energy assessment area, as defined in Section 11-42a-102, and other related costs, against the funds that the public infrastructure district will receive because of an assessment in an energy assessment area;public improvements related to the provision of housing;capital costs related to public transportation;for a public infrastructure district that is within or adjacent to a housing and transit reinvestment zone described in Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, any and all costs to finance any public or privately owned improvements, which, in the discretion of the board of the public infrastructure district, promote the objectives described in Section 63N-3-603.1;the cost of acquiring or financing public infrastructure and improvements;for a public infrastructure district that is a subsidiary of or created by the Utah Inland Port Authority, the costs associated with a remediation project, as defined in Section 11-58-102;for a convention center public infrastructure district that is within or adjacent to a convention center reinvestment zone as defined in Section 63N-3-602, any or all of the costs to finance any public or privately owned improvements, including convention center-related improvements and arena improvements, which, in the discretion of the board of a convention center public infrastructure district, promote the objectives of the convention center reinvestment zone, as described in Section 63N-3-603.1;for a convention center public infrastructure district, the costs of financing a convention revitalization project, as the term is defined in Section 63N-3-602;for a convention center public infrastructure district in a capital city that is within or adjacent to a convention center reinvestment zone in a capital city, as defined in Section 63N-3-602, any or all of the costs to financing any publicly owned improvements, including the cost of financing a convention center revitalization project in a capital city, as defined in Section 63N-3-602, convention center-related improvements, and publicly or privately owned improvements that directly serve the convention center, which, in the discretion of the board of the convention center public infrastructure district in a capital city, promote the objectives of the convention center reinvestment zone in a capital city, as described in Section 63N-3-603.1; andfor a convention center public infrastructure district in a capital city that is within a capital city revitalization zone project area, as defined in Section 63N-3-1401, any allowed uses of funds or revenue provided for under Section 59-12-402.5, including eligible expenses consistent with the terms of the participation agreement, except that a convention center public infrastructure district in a capital city may not issue negotiable bonds serviced by the revitalization tax under Section 59-12-402.5 for privately owned improvements for more than the maximum dollar amount described in the participation agreement.enter into an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal Cooperation Act, without the consent of the creating entity;notwithstanding any other provision in code, acquire completed or partially completed improvements, including related design and consulting services and related work product, for fair market value as reasonably determined by:the board;the creating entity, if required in the governing document; ora surveyor or engineer that a public infrastructure district employs or engages to perform the necessary engineering services for and to supervise the construction or installation of the improvements;contract with the creating entity for the creating entity to provide administrative services on behalf of the public infrastructure district, when agreed to by both parties, in order to achieve cost savings and economic efficiencies, at the discretion of the creating entity; for a public infrastructure district created by a development authority, or for a public infrastructure district created by a municipality and located in an urban renewal project area that includes some or all of an inactive industrial site:operate and maintain public infrastructure and improvements the district acquires or finances; anduse fees, assessments, or taxes to pay for the operation and maintenance of those public infrastructure and improvements; andissue bonds under Title 11, Chapter 42, Assessment Area Act; andfor a public infrastructure district that is a subsidiary of or created by the Utah Inland Port Authority, pay for costs associated with a remediation project, as defined in Section 11-58-102, of the Utah Inland Port Authority. 17D-4-203(3) A public infrastructure district created by the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, may:pay for the cost of the development and construction of a qualified stadium, as defined in Section 11-70-101; andpay for the cost of public infrastructure and improvements.

17D-4-204 - Relation to other local entities.

17D-4-204(1) Notwithstanding the creation of a public infrastructure district, the creating entity and any other public entity, as applicable, retains all of the entity’s authority over all zoning, planning, design specifications and approvals, and permitting within the public infrastructure district. 17D-4-204(2) The inclusion of property within the boundaries of a public infrastructure district does not preclude the inclusion of the property within any other special district. 17D-4-204(3) All infrastructure that is connected to another public entity’s system:belongs to that public entity, regardless of inclusion within the boundaries of a public infrastructure district, unless the public infrastructure district and the public entity otherwise agree; andshall comply with the design, inspection requirements, and other standards of the public entity.A public infrastructure district shall convey or transfer the infrastructure described in Subsection (3)(a) free of liens or financial encumbrances to the public entity at no cost to the public entity. 17D-4-204(4) No public entity or private person shall receive funds from any portion of a public infrastructure district’s property tax revenue without a resolution of the public infrastructure district’s board authorizing the public entity or private person to receive the funds.Subsection (4)(a) does not apply to the county’s expenses related to collecting property tax in accordance with Title 59, Chapter 2, Part 12, Property Tax Act.Subsection (4)(a) applies notwithstanding any provision in:Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act;Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act;a statute governing a development authority created under Utah Constitution, Article XI; ora provision of code related to the collection, distribution, or sharing of tax increment revenue, incremental property tax increases, or actions related to the collection, distribution, or sharing of tax increment revenue or incremental property tax increases.

17D-4-205 - Transparency.

A public infrastructure district shall file annual reports with the creating entity regarding the public infrastructure district’s actions as provided in the governing document.

Bond Issuance, Fee Collection, and Property Tax Levy Authority for a Public Infrastructure District

17D-4-301 - Public infrastructure district bonds.

17D-4-301(1) Subject to Subsection (1)(b), a public infrastructure district may issue negotiable bonds or other debt instruments for the purposes described in Section 17D-4-203, as provided in, as applicable:Title 11, Chapter 14, Local Government Bonding Act;Title 11, Chapter 27, Utah Refunding Bond Act;Title 11, Chapter 42, Assessment Area Act; Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; andthis section.A public infrastructure district created by a bonding political subdivision, as defined in Section 63C-25-101, may not issue bonds under this part unless the board first:adopts a parameters resolution for the bonds that sets forth:the maximum:amount of bonds;term; andinterest rate; andthe expected security for the bonds; andsubmits the parameters resolution for review and recommendation to the State Finance Review Commission created in Section 63C-25-201. 17D-4-301(2) A public infrastructure district bond shall mature within 40 years of the date of issuance. 17D-4-301(3) A public infrastructure district may issue a limited tax bond, in the same manner as a general obligation bond:with the consent of 100% of surface property owners within the boundaries of the public infrastructure district; andwith the consent of a majority of the registered voters, if any, within the boundaries of the proposed public infrastructure district as of the day on which the board finds that the consent of a majority of registered voters has been obtained; orupon approval of a majority of the registered voters within the boundaries of the public infrastructure district voting in an election held for that purpose under Title 11, Chapter 14, Local Government Bonding Act.A limited tax bond described in Subsection (3)(a):is not subject to the limitation on a general obligation bond described in Subsection 17B-1-1102(4); andis subject to a limitation, if any, on the principal amount of indebtedness as described in the governing document.Unless limited tax bonds are initially purchased exclusively by one or more qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, or an investment grade rating is obtained for the limited tax bonds by one or more nationally recognized rating agencies, the public infrastructure district may only issue limited tax bonds in denominations of not less than $500,000,andinintegralmultiplesabove$500,000 of not less than $1,000 each.Without any further election or consent of property owners or registered voters, a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to a general obligation bond if the principal amount of the related limited tax bond together with the principal amount of other related outstanding general obligation bonds of the public infrastructure district does not exceed 15% of the fair market value of taxable property in the public infrastructure district securing the general obligation bonds, determined by:an appraisal from an appraiser who is a member of the Appraisal Institute that is addressed to the public infrastructure district or a financial institution; orthe most recent market value of the property from the assessor of the county in which the property is located.The consent to the issuance of a limited tax bond described in Subsection (3)(a) is sufficient to meet any statutory or constitutional election requirement necessary for the issuance of the limited tax bond and any general obligation bond to be issued in place of the limited tax bond upon meeting the requirements of this Subsection (3)(d).A public infrastructure district that levies a property tax for payment of debt service on a limited tax bond issued under this section is not required to comply with the notice and hearing requirements of Section 59-2-919 unless the rate exceeds the rate established in:Section 17D-4-303, except as provided in Subsection (13);the governing document; orthe documents relating to the issuance of the limited tax bond. 17D-4-301(4) For a public infrastructure district seeking the consent described in Subsection (3)(a)(i)(B), a public infrastructure district may:post a class A notice under Section 63G-30-102 for at least 30 days; andmail a request for consent to each registered voter within the boundaries of the public infrastructure district according to voter registration records.The request for consent described in Subsection (4)(a)(ii) shall include:the purpose for the issuance of the bonds;the maximum principal amount of the bonds to be issued;the maximum tax rate proposed to be pledged for the repayment of the bonds;the words “For the issuance of bonds” and “Against the issuance of bonds,” with appropriate boxes in which the voter may indicate the voter’s choice; anda return address and phone number where additional information may be obtained from the public infrastructure district.Any registered voter who does not return the request for consent within 30 days of the day they are mailed to the voter is considered:non-participatory in the request for consent; andshall not be included in a calculation to determine the percentage of registered voters who consent to the issuance of bonds.If a majority of the registered voters who return the request for consent under this Subsection (4) indicate “For the issuance of bonds,” or if no registered voters return the request for consent within the time frame described in Subsection (4)(c), the requirement described in Subsection (3)(a)(i)(B) is met.Nothing in this Subsection (4):prevents a public infrastructure district from obtaining the consent of registered voters for the issuance of a bond through another method; orshall be interpreted to affect or otherwise interfere with any consents of registered voters obtained before the effective date of this bill. 17D-4-301(5) Nothing in this section shall be interpreted to:prevent a public infrastructure district from withdrawing property from the public infrastructure district’s boundaries where the property owners or registered voters associated with that property do not consent to the issuance of bonds or vote against the issuance of bonds; orrequire a public infrastructure district to withdraw property from the public infrastructure district’s boundaries where the property owners or registered voters associated with that property do not consent to the issuance of bonds or vote against the issuance of bonds. 17D-4-301(6) Beginning on the effective date of this bill, once consent or approval is obtained under Subsection (3)(a), the consent or approval is valid for a period of 10 years from the day on which the board:adopts a resolution or ordinance finding that the consent or approval is obtained; andpublishes a notice of the resolution or ordinance described in Subsection (6)(a)(i) as a class A notice under Section 63G-30-102 for at least 30 days.The tolling provisions of Section 11-14-301 apply during the 10-year period described in Subsection (6)(a).After a public infrastructure district obtains consent or approval under Subsection (3)(a), the public infrastructure district does not require any additional consent to or approval of the issuance of bonds, and the subsequent annexation of property to, or withdrawal of property from, the public infrastructure district does not impact:the validity of already obtained consent or approval;the 10-year period described in Subsection (6)(a); orany bond issued, or to be issued, pursuant to the consent or approval that was obtained under Subsection (3)(a).Subsection (6)(a) does not invalidate or alter any consent or approval, or finding of consent or approval, that occurred before the effective date of this bill. 17D-4-301(7) Except as provided in Subsection (7)(b), there is no limitation on the duration of revenues that a public infrastructure district may receive to cover any shortfall in the payment of principal of and interest on a bond that the public infrastructure district issues.A public infrastructure governing document or bond documents may limit the duration of time described in Subsection (7)(a). 17D-4-301(8) Section 11-42-106 governs any action to challenge an assessment imposed by a public infrastructure district or any proceeding to designate an assessment area conducted by a public infrastructure district. 17D-4-301(9) A public infrastructure district is not a municipal corporation for purposes of the debt limitation of Utah Constitution, Article XIV, Section 4. 17D-4-301(10) Notwithstanding any other provision, the board may directly or by resolution delegate to one or more officers of the public infrastructure district the authority to:in accordance and within the parameters set forth in a resolution adopted in accordance with Section 11-14-302, approve the final interest rate, price, principal amount, maturity, redemption features, and other terms of the bond;approve and execute any document or contract relating to the issuance of a bond; andapprove any contract related to the acquisition and construction of the improvements, facilities, or property to be financed with a bond. 17D-4-301(11) Subject to Subsection (11)(b), before a public infrastructure district may issue a limited tax bond or assessment bond, the public infrastructure district shall engage a municipal advisor who, in connection with the issuance of bonds, shall deliver a certificate stating that:the municipal advisor qualifies to serve as a municipal advisor, as defined in Section 17D-4-102, including the basis for the municipal advisor’s qualifications;the structure of the limited tax bond or assessment bond the public infrastructure district is about to issue is a reasonable structure, as of the date of the issuance of the limited tax bond or assessment bond, as applicable; andthe interest rate of the limited tax bond or assessment bond the public infrastructure district is about to offer is a reasonable market rate, as of the date of the issuance of the limited tax bond or assessment bond, as applicable.The provisions of this Subsection (11) do not apply to a public infrastructure district created by a development authority. 17D-4-301(12) Any person may contest the legality of the issuance of a public infrastructure district bond or any provisions for the security and payment of the bond for a period of 30 days after:posting the resolution authorizing the bond as a class A notice under Section 63G-30-102; orposting a notice of bond containing substantially the items required under Subsection 11-14-316(2) as a class A notice under Section 63G-30-102.After the 30-day period described in Subsection (12)(a), no person may bring a lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any reason. 17D-4-301(13) In the event of any statutory change in the methodology of assessment or collection of property taxes in a manner that reduces the amounts which are devoted or pledged to the repayment of limited tax bonds, a public infrastructure district may charge a rate sufficient to receive the amount of property taxes or assessment the public infrastructure district would have received before the statutory change in order to pay the debt service on outstanding limited tax bonds.The rate increase described in Subsection (13)(a) may exceed the limit described in Section 17D-4-303.The public infrastructure district may charge the rate increase described in Subsection (13)(a) until the bonds, including any associated refunding bonds, or other securities, together with applicable interest, are fully met and discharged. 17D-4-301(14) No later than 60 days after the closing of any bonds by a public infrastructure district created by a bonding political subdivision, as defined in Section 63C-25-101, the public infrastructure district shall report the bond issuance, including the amount of the bonds, terms, interest rate, and security, to:the Executive Appropriations Committee; andthe State Finance Review Commission created in Section 63C-25-201.

17D-4-302 - Fees.

17D-4-302(1) In addition to any fees authorized by Title 17B, Chapter 1, Provisions Applicable to All Special Districts, a public infrastructure district may charge a fee for an administrative service that the public infrastructure district provides, to pay some or all of the public infrastructure district’s:costs of acquiring, improving, or extending improvements, facilities, or property; orcosts associated with the enforcement of a legal remedy. 17D-4-302(2) The board of a public infrastructure district shall establish fees by a fee schedule in ordinance or resolution.

17D-4-303 - Limits on public infrastructure district property tax levy — Notice requirements.

17D-4-303(1) The property tax levy of a public infrastructure district, for all purposes, including payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value of taxable property in the district. 17D-4-303(2) The limitation described in Subsection (1) does not apply to the levy by the public infrastructure district to pay principal of and interest on a general obligation bond that the public infrastructure district issues. 17D-4-303(3) Within 30 days after the day on which the lieutenant governor issues a certificate of incorporation for the public infrastructure district under Section 67-1a-6.5, the board shall record a notice with the recorder of the county in which property within the public infrastructure district is located.The notice described in Subsection (3)(a) shall:contain a description of the boundaries of the public infrastructure district;state that a copy of the governing document is on file at the office of the creating entity;state that the public infrastructure district may finance and repay infrastructure and other improvements through the levy of a property tax; andstate the maximum rate that the public infrastructure district may levy.The effective date of the public infrastructure district for purposes of assessing property tax is the day on which the notice is recorded in the office of the recorder of each county in which the public infrastructure district is located, as described in Section 59-2-305.5. 17D-4-303(4) If the board fails to record a notice as described in Subsection (3):the public infrastructure district is still created as of the day the lieutenant governor issues a certificate of incorporation for the public infrastructure district;any bonds issued by the public infrastructure district are still valid; andthe public infrastructure district may not levy a tax or levy or collect a fee until the board records the notice described in Subsection (3).

17D-4-304 - Property tax penalty for nonpayment.

In the event of nonpayment of any tax, fee, or charge that a public infrastructure district imposes, the public infrastructure district may impose a property tax penalty at an annual rate of .07, in addition to any other lawful penalty for nonpayment of property tax.

17D-4-305 - Action to contest tax, fee, or proceeding — Requirements — Exclusive remedy — Bonds, taxes, and fees incontestable.

17D-4-305(1) A person who contests a tax or fee imposed by a public infrastructure district or any proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring a civil action against the public infrastructure district or the creating entity to:set aside the proceeding; orenjoin the levy, imposition, or collection of a tax or fee. 17D-4-305(2) The person bringing an action described in Subsection (1):notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, shall bring the action in the county in which the public infrastructure district is located if the person brings the action in the district court; andmay not bring the action against or serve a summons relating to the action on the public infrastructure district more than 30 days after the day on which:the creation of the public infrastructure district is effective, if the challenge is to the creation of the public infrastructure district;the board of the public infrastructure district adopts a resolution or ordinance establishing a tax or fee, if the challenge is to a tax or fee; orthe board of the public infrastructure district adopts a resolution or ordinance annexing property to, or withdrawing property from, the public infrastructure district, if the challenge is to an annexation or withdrawal. 17D-4-305(3) An action under Subsection (1) is the exclusive remedy of a person who:claims an error or irregularity in a tax or fee or in any proceeding to create a public infrastructure district, levy a tax, or impose a fee; orchallenges a bondholder’s right to repayment. 17D-4-305(4) After the expiration of the 30-day period described in Subsection (2)(b):a bond issued or to be issued with respect to a public infrastructure district and any tax levied or fee imposed becomes incontestable against any person who has not brought an action and served a summons in accordance with this section;a person may not bring a suit to:enjoin the issuance or payment of a bond or the levy, imposition, collection, or enforcement of a tax or fee; orattack or question in any way the legality of a bond, tax, or fee; anda court may not inquire into the matters described in Subsection (4)(b). 17D-4-305(5) This section does not insulate a public infrastructure district from a claim of misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus is the sole form of relief available to a party challenging the misuse of funds.The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal charges against or the prosecution of a party for the misuse of funds. 17D-4-305(6) If there is a conflict between a provision in Section 17D-4-301 and a provision in this section, the provision in Section 17D-4-301 supersedes the conflicting provision in this section.