11-42-106. Action to contest assessment or proceeding — Requirements — Exclusive remedy — Bonds and assessment incontestable.
(1)
A person who contests an assessment or any proceeding to designate an assessment area or levy an assessment may commence a civil action against the local entity to:
Terms Used In Utah Code 11-42-106
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under 2, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
payable in part or in whole from assessments levied in an assessment area, improvement revenues, and a guaranty fund or reserve fund. See Utah Code 11-42-102
Assessment resolution: means a resolution adopted by a local entity under Section 11-42-404 that levies an assessment on benefitted property within an assessment area. See Utah Code 11-42-102
Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
Designation ordinance: means an ordinance adopted by a local entity under Section 11-42-206 designating an assessment area. See Utah Code 11-42-102
Designation resolution: means a resolution adopted by a local entity under Section 11-42-206 designating an assessment area. See Utah Code 11-42-102
Development authority: means :
(a)
the Utah Inland Port Authority created in Section 11-58-201; or
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Local entity: means :
(a)
a county, city, town, special service district, or special district;
(b)
an interlocal entity as defined in Section 11-13-103;
(c)
the military installation development authority, created in Section 63H-1-201;
Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102
Refunding assessment bonds: means assessment bonds that a local entity issues under Section 11-42-607 to refund, in part or in whole, assessment bonds. See Utah Code 11-42-102
Service: means :
(a)
water, sewer, storm drainage, garbage collection, library, recreation, communications, or electric service;
(b)
economic promotion activities; or
(c)
any other service that a local entity is required or authorized to provide. See Utah Code 11-42-102
Summons: Another word for subpoena used by the criminal justice system.
set aside a proceeding to designate an assessment area; or
(b)
enjoin the levy or collection of an assessment.
(2)
(a)
Each action under Subsection (1) shall be commenced in the district court with jurisdiction in the county in which the assessment area is located.
(b)
(i)
Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may not be commenced against and a summons relating to the action may not be served on the local entity more than 60 days after the effective date of the:
(A)
designation resolution or designation ordinance, if the challenge is to the designation of an assessment area;
(B)
assessment resolution or ordinance, if the challenge is to an assessment; or
(C)
amended resolution or ordinance, if the challenge is to an amendment.
(ii)
The period for commencing an action and serving a summons under Subsection (2)(b)(i) is 30 days if the designation resolution, assessment resolution, or amended resolution was:
all owners of property within the assessment area or proposed assessment area consent in writing to the designation resolution, assessment resolution, or amended resolution.
(3)
(a)
An action under Subsection (1) is the exclusive remedy of a person who:
(i)
claims an error or irregularity in an assessment or in any proceeding to designate an assessment area or levy an assessment; or
(ii)
challenges a bondholder’s right to repayment.
(b)
A court may not hear any complaint under Subsection (1) that a person was authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under Section 11-42-204.
(c)
(i)
If a person has not brought a claim for which the person was previously authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim may not be brought later because of an amendment to the resolution or ordinance unless the claim arises from the amendment itself.
(ii)
In an action brought pursuant to Subsection (1), a person may not contest a previous decision, proceeding, or determination for which the service deadline described in Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or determination.
(4)
An assessment or a proceeding to designate an assessment area or to levy an assessment may not be declared invalid or set aside in part or in whole because of an error or irregularity that does not go to the equity or justice of the proceeding or the assessment meeting the requirements of Section 11-42-409.
(5)
After the expiration of the period referred to in Subsection (2)(b):
(a)
assessment bonds and refunding assessment bonds issued or to be issued with respect to an assessment area and assessments levied on property in the assessment area become at that time incontestable against all persons who have not commenced an action and served a summons as provided in this section; and
(b)
a suit to enjoin the issuance or payment of assessment bonds or refunding assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or question in any way the legality of assessment bonds, refunding assessment bonds, or an assessment may not be commenced, and a court may not inquire into those matters.
(6)
(a)
This section may not be interpreted to insulate a local entity from a claim of misuse of assessment funds after the expiration of the period described in Subsection (2)(b).
(b)
(i)
Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus is the sole form of relief available to a party challenging the misuse of assessment funds.
(ii)
The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal charges against or the prosecution of a party for the misuse of assessment funds.
Amended by Chapter 314, 2021 General Session Amended by Chapter 415, 2021 General Session
