SB 241: Limited Purpose Local Government Amendments - Utah

Substitute #2 → Enrolled · 7 edits · Mar 26, 2025

MODERATE

This bill modifies Utah's special district laws to expand the powers of 'public infrastructure districts,' allowing them to issue bonds more easily, fund affordable housing and grocery stores, and operate independently from their creating entities. It also updates the rules for 'property owner districts' to allow them to pledge revenue from impact fees toward bond payments and clarifies definitions for clean energy and electric vehicle infrastructure.

Scope change

The bill expands the scope of 'public infrastructure districts' to include specific funding powers for affordable housing and grocery stores, and clarifies that these districts are legally separate from the counties or municipalities that create them.

FISCAL

Authorizes 'basic special districts' to create public infrastructure districts to fund affordable housing, healthcare facilities, and privately owned grocery stores.

Allows 'property owner districts' to pledge revenue collected from impact fees toward the payment of general obligation bonds.

REQUIREMENT

Reduces the time limit for contesting the creation of a public infrastructure district from 60 days to 30 days.

Requires public infrastructure districts to engage a 'municipal advisor' to certify that bond structures and interest rates are reasonable before issuance.

ENFORCEMENT

Establishes a new requirement that no public entity or private person may receive funds from a public infrastructure district's property tax revenue without a specific board resolution authorizing it.

DEFINITION

Updates definitions for 'clean energy system' and 'electric vehicle charging infrastructure' to include specific technologies like battery storage and solar thermal systems.

ELIGIBILITY

Allows public infrastructure districts to issue limited tax bonds without a separate voter election if 100% of surface property owners consent.

Introduced → Substitute #1 · 5 edits

MODERATE

The bill was amended to add the School and Institutional Trust Lands Administration as an authorized creator of public infrastructure districts and to prohibit assessments against government-owned land unless consent is obtained. Additionally, the eligibility for basic special districts to create public infrastructure districts was narrowed to only those created before 2011 that issued bonds in 2024, and a new section was added to allow property owner districts to pledge impact fee revenue toward bond payments.

Scope change

The bill's scope expanded to include the School and Institutional Trust Lands Administration as a potential creator of public infrastructure districts, while the scope for basic special districts was restricted based on specific historical criteria.

SCOPE

Added the School and Institutional Trust Lands Administration as an entity authorized to create public infrastructure districts.

ELIGIBILITY

Restricted the ability of basic special districts to create public infrastructure districts to only those districts created before April 15, 2011, that issued limited general obligation bonds in 2024.

FISCAL

Authorized property owner special districts to pledge all or a portion of revenue collected from impact fees or other fees toward the payment of general obligation bonds.

REQUIREMENT

Added a new prohibition preventing local entities from levying assessments against property owned by the federal government or public agencies without their written consent.

TIMELINE

Updated effective dates for various sections to be contingent upon the governor's approval rather than a fixed calendar date.

Substitute #1 → Substitute #2 · 8 edits

MODERATE

This bill modifies Utah's special district laws to expand their powers, particularly around public infrastructure districts, bond issuance, and funding sources. It allows basic special districts to create public infrastructure districts and fund affordable housing projects, while also clarifying consent requirements and bond issuance processes. The changes aim to streamline district operations and provide more flexibility for infrastructure development.

Scope change

The bill expands the scope of special districts by authorizing basic special districts to create public infrastructure districts and adding new funding mechanisms, while also clarifying existing provisions for public infrastructure districts.

SCOPE

Authorizes basic special districts to create public infrastructure districts within their boundaries

FISCAL

Allows property owner special districts to pledge revenue from impact fees toward general obligation bond payments

Permits basic special districts to fund affordable housing projects and certain facility acquisitions

REQUIREMENT

Reduces consent requirements for public infrastructure districts in certain cases, such as when ownership is limited to easements or rights-of-way

Changes bond issuance processes to allow consent validity for 10 years and simplifies voter approval procedures

ENFORCEMENT

Establishes 30-day deadlines for challenging public infrastructure district actions, after which decisions become incontestable

DEFINITION

Adds new definitions for terms like 'public infrastructure and improvements' and 'municipal advisor'

TIMELINE

Sets special effective date of May 7, 2025, unless approved by two-thirds vote for immediate effect

Limited Purpose Local Government Amendments

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