Disposition of Public Property Modifications

Added an exception to the definition of 'dispose' to exclude exchanges of real property between political subdivisions where the values are reasonably equivalent.

Clarified that municipalities and counties must use their existing ordinances to define 'significant parcels' for disposal purposes, rather than strictly applying a $500,000 value threshold.

Added a specific exception allowing school districts to sell surplus property to eligible entities without complying with the new public disposal requirements.

Updated the bill's effective date from May 6, 2026, to May 6, 2026, and changed the session date from February 25 to February 27.

Counties and special districts are now required to follow the same public notice and public meeting procedures as municipalities when disposing of 'significant parcels' of real property.

The deadline for eligible entities (counties, cities, towns) to claim surplus school district land was changed from 'one year' to a strict '90 days' after receiving notice.

The law governing transportation reinvestment zones was updated to clarify that while the general section is exempt from property disposal rules, the specific provisions regarding the conveyance of real property still apply.

The definition of 'proposed disposition' for significant parcels was clarified to include joint ventures, ensuring broader oversight for complex real estate deals.

The effective date of the bill was moved from February 12, 2026, to February 25, 2026.

The definition of 'local governmental entity' was expanded to explicitly include special districts, special service districts, local building authorities, conservation districts, and public infrastructure districts, ensuring these entities are subject to the same disposal rules as cities and counties.

The requirement for a public meeting to approve the disposal of a 'significant parcel' (valued at $500,000 or more) was modified to allow approval via a public meeting without explicitly requiring a specific vote threshold, simplifying the approval process.

The deadline for eligible entities (like counties or cities) to purchase school district surplus property was extended from 90 days to one year, giving local governments more time to identify and acquire needed land before the school district can sell it publicly.

Several sections were renumbered and minor text formatting adjustments were made throughout the bill to conform with current legislative standards and correct citation references.

Added clear definitions for 'dispose,' 'significant parcel,' 'governing body,' and 'local governmental entity' to ensure consistent application across different types of local governments.

Modified the disposal process to require public notice on websites and physical signs for at least 45 days for significant parcels, along with a public meeting to approve the sale or lease.

Added requirements for counties to offer surplus property acquired through water exactions back to the original owner before selling it to the general public.

Added specific provisions allowing school districts to sell surplus property to eligible entities (like counties or cities) if those entities do not purchase it within 90 days of notice.

Modified the scope of entities subject to disposal rules to explicitly include special districts, housing authorities, and agencies, ensuring they follow the same public transparency standards as municipalities and counties.

Added technical corrections and conforming changes to various sections of the Utah Code to align with recent legislative updates and renumbered sections.

Added 'enter into a joint venture' and 'lease agreements with terms over 10 years' to the definition of disposing of public property.

Added a prohibition preventing municipalities and counties from defining a 'significant parcel' as having a value less than $500,000.

Clarified that counties must provide written notice to specific counties and municipalities before acquiring real property outside their own boundaries.

Added 'easements' and 'airport leases under 10 years' to the list of transactions that do not require compliance with the public disposal process.

Expanded the definition of 'dispose' to include entering into joint ventures and leases longer than 10 years, and clarified that short-term leases (10 years or less) and property exchanges are not considered disposal.

Established a $500,000 fair market value threshold for a 'significant parcel,' requiring a public meeting and specific notice for its disposal, while allowing local governments to define 'significant' via ordinance if it meets or exceeds this value.

Modified the disposal process for counties and municipalities to allow compliance with existing local ordinances if they provide adequate public notice, rather than strictly following the new state publication requirements.

Added special districts, agencies, and housing authorities to the list of entities required to comply with public property disposal statutes, with specific exemptions for certain agency activities.

Changed the timeline for school districts to sell surplus land to eligible entities; if an eligible entity fails to submit a resolution of intent within 90 days, the school district can immediately sell the property.

Repealed a criminal penalty for issuing false certificates regarding debt limits and updated the effective date of the bill to May 6, 2026.