Local Land and Water Modifications

Added three new sections (1-3) amending Title 10, Chapter 2a to address municipal incorporation: a provision protecting feasibility requests filed before certain law changes take effect, a detailed process for filing modified feasibility requests with supplemental feasibility studies and landowner exclusion rights, and creation of a Municipal Incorporation Expendable Special Revenue Fund with a payback system where newly incorporated cities repay incorporation costs over up to five years.

The prohibition on legislative bodies acting as appeal authorities (Sections 10-20-1101 and 10-20-1107) was narrowed from applying to all municipalities to only cities described in Subsection 10-20-302(6)(a)(i) (first through fourth class, or fifth class with 5,000+ population in first through third class counties). A transition period allows the legislative body to continue as appeal authority for appeals filed on or before June 30, 2026.

Added Section 10-21-304 requiring specified municipalities (first through fourth class cities, or fifth class with 5,000+ population in first through third class counties) to adopt a land use regulation permitting detached accessory dwelling units on lots of 10,000 square feet or larger containing a single-family dwelling. The section limits what municipalities can require (no conditional use permit in primarily residential zones, max two parking spaces for ADUs 650+ sq ft, max one for smaller) and what they may require (setbacks, size limits, owner-occupancy, minimum 90-day rental terms).

Added Section 10-20-301 requiring each municipality to enact an ordinance establishing a planning commission that specifies member numbers and terms, appointment procedures, vacancy filling, removal procedures (including specific causes like using public funds for political purposes, ethics violations, or acting with intent to influence a pending land use decision), recusal requirements, and rules of order and procedure.

Added Section 10-20-507 requiring each municipality to incorporate a process for reviewing and approving new or unlisted business uses. The process must allow applicants to submit classification requests, provide criteria for determining alignment with existing uses, give the legislative body authority to approve or deny within a set timeframe, and prohibit requiring planning commission review of such applications.

Added Section 10-20-807 (amended) establishing detailed requirements for improvement completion assurances: municipalities must establish minimum two acceptable forms, place cash deposits in interest-bearing accounts with interest returned to the applicant, allow partial release as improvements are completed, and may not require assurance for private infrastructure, previously accepted improvements, or improvements an applicant elects to install at their own risk before plat recording.

Planning commission training requirements (Section 10-20-302) were expanded: the three hours of land use training was changed to 'a combination of land use and ethics topics' with two new required topics added: ex parte communication and conflict of interest. The one-hour general training was also expanded to include 'the role of the planning commission in administrative, legislative, and quasi-judicial functions.'

Section 10-20-501 website posting requirements were modified: municipalities that do not have a 'maintained and active website' (previously just 'a website') may provide for inspection at their place of business, and a new Subsection (5)(c) allows compliance by posting a link to a third-party website where regulations are posted, with a six-month deadline to submit new or modified regulations to that site.

Section 10-20-912 (exactions for water rights) changed the appeal mechanism from allowing a land use applicant to 'appeal to the municipality's legislative body an exaction calculation' to allowing them to 'submit a request to the municipality's legislative body to review an exaction calculation,' softening the language from a formal appeal to a review request.

Added Section 10-20-1105 (repealed and reenacted) establishing burden of proof in appeals: a land use applicant must prove the decision is arbitrary, capricious, illegal, or not supported by a preponderance of the evidence; an adversely affected party must prove the decision is arbitrary, capricious, illegal, or not supported by substantial evidence.

Section 10-20-1001 removed the phrase 'or as provided in the provisions of a development agreement' from Subsection (2)(a), which previously allowed municipalities to enforce ordinances by withholding permits based on development agreement terms. This removes development agreements as a basis for permit withholding under that subsection.

The requirement that a legislative body must adopt or reject a proposed land use regulation when the planning commission fails to make a timely recommendation (Section 10-20-502) was changed from a permissive 'may consider as negative recommendation' to a mandatory 'shall adopt or reject' beginning September 15, 2026, with reference to timelines in Subsection 10-20-905(2).

Section 10-20-902 changed the website application checklist requirement to take effect 'Beginning on October 1, 2026' and changed the exception from municipalities that 'do not have a website' to those that 'does have a maintained and active website' (appears to be a drafting error for 'does not have').

The definition of 'Property owner' in both municipal (10-20-102) and county (17-79-102) definitions was narrowed from 'a person that holds legal or equitable title or interest in real property' to 'a person that holds legal title in real property,' removing equitable title and interests.

Section 10-20-911 and 17-79-812 changed the reconveyance of surplus property acquired by exaction from 'without receiving additional consideration at no cost' back to simply 'without receiving additional consideration,' removing the redundant 'at no cost' language.

The House Sponsor was changed from Calvin Roberts to Jill Koford.

Municipalities must now adopt written plans by January 1, 2028, to determine reasonable future water requirements before imposing water exactions, and the state engineer must create rules for these plans.

Municipalities cannot deny building permits or certificates of occupancy if an applicant has posted an improvement completion assurance for required infrastructure or landscaping.

New requirements were added for regulating structure height in commercial lodging and for allowing detached accessory dwelling units in specified zones.

Planning commissions must make timely recommendations on land use regulations, or the legislative body may treat the failure as a negative recommendation and act without waiting.

Legislative bodies are prohibited from acting as appeal authorities for land use decisions starting July 1, 2026, to ensure quasi-judicial impartiality.

Several terms were updated or clarified, including 'land use regulation' to exclude certain decisions and 'improvement completion assurance' to specify acceptable security types.

A new expendable special revenue fund was created to manage fees collected from municipal incorporation proceedings, with a payback mechanism for newly incorporated cities.

Requires counties, municipalities, and special districts to adopt a written plan by January 1, 2028, to determine reasonable future water requirements before imposing water exactions.

Prohibits legislative bodies from acting as appeal authorities for land use decisions, effective July 1, 2026, to ensure impartiality in the appeals process.

Mandates that planning commission members complete annual training on land use and ethics topics, with new members unable to vote until training is completed.

Allows specified municipalities to permit detached accessory dwelling units as a permitted use on lots of 11,000 square feet or larger, with specific restrictions on size, parking, and utility access.

Clarifies definitions for terms like 'land use regulation,' 'development agreement,' and 'improvement completion assurance' to ensure consistent application across counties and municipalities.

Sets specific deadlines for various processes, including a 90-day limit for filing modified feasibility requests for municipal incorporation and a 30-day window for challenging land use decisions in court.

Restricts a municipality's ability to deny building permits or certificates of occupancy for failure to complete non-essential infrastructure improvements if an improvement completion assurance has been posted.

Planning commissions must now hold public hearings before recommending land use regulations, and legislative bodies must make decisions if the commission fails to act in a timely manner.

New rules require municipalities to allow detached accessory dwelling units on larger lots as a permitted use, with specific limits on size and parking.

The definition of 'open house' was expanded to include model homes, preventing municipalities from regulating them differently than standard residential properties.

Clarified definitions for terms such as 'land use applicant,' 'affected entity,' and 'development agreement' to ensure consistent application across jurisdictions.

Municipalities are restricted in their ability to deny building permits or certificates of occupancy if an applicant has not completed certain infrastructure improvements, unless those improvements are essential for safety.

New deadlines were established for various administrative actions, including a ban on legislative bodies acting as appeal authorities for certain cities starting July 1, 2026.

Fees collected for municipal incorporation proceedings must now be deposited into a new special revenue fund, with provisions for repayment if incorporation fails.

Modified the process for filing modified feasibility requests for municipal incorporation, including new deadlines for supplemental studies and requirements for notifying landowners of added areas.

Clarified that legislative bodies cannot regulate model homes or open houses differently than standard residential properties.

Established mandatory annual training hours for planning commission members and set a deadline prohibiting legislative bodies from acting as appeal authorities in certain cities.

Required municipalities to complete subdivision application reviews within specific business day limits based on population size.

Adjusted exaction rules for water rights to require calculations based on equivalent residential connections and allowed municipalities to reduce exactions if good cause exists.

Added a new requirement for municipalities to allow detached accessory dwelling units as permitted uses on lots of 10,000 square feet or larger.

Updated definitions to include new terms such as 'detached accessory dwelling unit' and clarified existing terms like 'land use application' and 'improvement completion assurance'.

Set specific effective dates for various provisions, including a ban on legislative bodies acting as appeal authorities starting July 1, 2026.

Requires planning commission members to complete specific annual training hours on land use and ethics topics.

Prohibits a municipal or county legislative body from acting as an appeal authority for land use decisions starting July 1, 2026, unless specific grandfather conditions are met.

Mandates that specified municipalities allow detached accessory dwelling units as a permitted use on lots of 10,000 square feet or larger.

Clarifies that municipalities cannot deny building permits or certificates of occupancy if an applicant has posted an improvement completion assurance for required infrastructure.

Requires municipalities to make decisions on land use regulations if the planning commission fails to provide a timely recommendation.

Adds new definitions for terms such as 'development agreement,' 'improvement completion assurance,' and 'improvement warranty.'

Establishes a special revenue fund to cover costs associated with municipal incorporation proceedings and fee structures.

Sets specific deadlines for filing modified feasibility requests and for legislative bodies to act on land use applications.

Planning commission members in larger cities must now complete annual training on land use and ethics topics, and new members cannot vote until trained.

Legislative bodies are prohibited from acting as appeal authorities for land use decisions starting July 1, 2026, requiring independent boards to handle appeals.

Rules for water exactions were updated to allow municipalities to use lower exaction rates based on historical usage data if they determine there is good cause.

New definitions were added for 'detached accessory dwelling unit' and 'home ownership promotion zone' to support housing and transit development policies.

Limits were placed on when municipalities can withhold building permits, specifically regarding infrastructure improvements and private landscaping plans.

Deadlines for municipal decisions on land use regulations were clarified to require action if a planning commission fails to make a timely recommendation.

Several code sections were renumbered and updated to reflect changes made in previous legislative sessions.