17D-4-201. Creation — Annexation or withdrawal of property.
(1)
Terms Used In Utah Code 17D-4-201
Board: means the board of trustees of a public infrastructure district. See Utah Code 17D-4-102
Creating entity: means the county, municipality, or development authority that approves the creation of a public infrastructure district. See Utah Code 17D-4-102
Development authority: means :
(a)
the Utah Inland Port Authority created in Section 11-58-201;
(b)
the Point of the Mountain State Land Authority created in Section 11-59-201; or
District applicant: means the person proposing the creation of a public infrastructure district. See Utah Code 17D-4-102
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
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. See Utah Code 17D-4-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
if there are any registered voters within the applicable area, a petition is filed with the creating entity that contains the signatures of 100% of registered voters within the applicable area approving the creation of the public infrastructure district; and
(ii)
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.
(b)
(i)
As used in this Subsection (1)(b):
(A)
“Military Land” means the same as that term is defined in Section 63H-1-102.
(B)
“Project area” means the same as that term is defined in Section 63H-1-102.
(ii)
Notwithstanding 2, 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.
(iii)
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.
(iv)
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.
(2)
(a)
The following do not apply to the creation of a public infrastructure district:
The protest period described in Section 17B-1-213 may be waived in whole or in part with the consent of:
(i)
100% of registered voters within the applicable area approving the creation of the public infrastructure district; and
(ii)
100% of the surface property owners within the applicable area approving the creation of the public infrastructure district.
(c)
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).
(d)
A petition meeting the requirements of Subsection (1):
shall be filed with the lieutenant governor in accordance with Subsection 17B-1-215(1)(b)(iii).
(3)
(a)
Notwithstanding 4, 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:
(i)
(A)
adoption of resolutions of the board and the creating entity, each approving of the annexation; or
(B)
adoption 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;
(ii)
if there are any registered voters within the area proposed to be annexed, a petition is filed with the creating entity that contains the signatures of 100% of registered voters within the area, demonstrating that the registered voters approve of the annexation into the public infrastructure district; and
(iii)
a petition is filed with the creating entity 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.
(b)
Within 30 days of meeting the requirements of Subsection (3)(a), the board shall file with the lieutenant governor:
(i)
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); and
(ii)
a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(4)
(a)
Notwithstanding 5, property may be withdrawn from a public infrastructure district if the following requirements are met:
(i)
(A)
adoption of resolutions of the board and the creating entity, each approving of the withdrawal; or
(B)
adoption 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;
(ii)
if there are any registered voters within the area proposed to be withdrawn, a petition is filed with the creating entity that contains the signatures of 100% of registered voters within the area, demonstrating that the registered voters approve of the withdrawal from the public infrastructure district; and
(iii)
a petition is filed with the creating entity 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.
(b)
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.
(c)
Upon meeting the requirements of Subsections (4)(a) and (b), the board shall comply with the requirements of Section 17B-1-512.
(5)
A creating entity may impose limitations on the powers of a public infrastructure district through the governing document.
(6)
(a)
A public infrastructure district is separate and distinct from the creating entity.
(b)
(i)
Except as provided in Subsection (6)(b)(ii), any financial burden of a public infrastructure district:
(A)
is borne solely by the public infrastructure district; and
(B)
is not borne by the creating entity, by the state, or by any municipality, county, or other political subdivision.
(ii)
Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing document may require:
(A)
the district applicant to bear the initial costs of the public infrastructure district; and
(B)
the public infrastructure district to reimburse the district applicant for the initial costs the creating entity bears.
(c)
Any liability, judgment, or claim against a public infrastructure district:
(i)
is the sole responsibility of the public infrastructure district; and
(ii)
does not constitute a liability, judgment, or claim against the creating entity, the state, or any municipality, county, or other political subdivision.
(d)
(i)
(A)
The public infrastructure district solely bears the responsibility of any collection, enforcement, or foreclosure proceeding with regard to any tax, fee, or assessment the public infrastructure district imposes.
(B)
The creating entity does not bear the responsibility described in Subsection (6)(d)(i)(A).
A creating entity may establish criteria in determining whether to approve or disapprove of the creation of a public infrastructure district, including:
(a)
historical performance of the district applicant;
(b)
compliance with the creating entity’s master plan;
(c)
credit worthiness of the district applicant;
(d)
plan of finance of the public infrastructure district; and
(e)
proposed development within the public infrastructure district.
(8)
(a)
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.
(b)
The proposed creating entity bears no liability for rejecting the proposed creation of a public infrastructure district.
Amended by Chapter 12, 2023 General Session Amended by Chapter 15, 2023 General Session Amended by Chapter 259, 2023 General Session
