UtahH.B. 4292026 General SessionHouseWALLET

Special Districts Amendments

Sponsored By: Candice B. Pierucci (Republican)

Signed by Governor

CountiesPublic BondsInterlocal CooperationLocal DistrictsMunicipalitiesLimited Purpose Local Government EntitiesPolitical Subdivisions (Local Issues)Special Service DistrictsCounty and Municipal FinanceInterlocal AgreementsInterlocal EntitiesUnincorporated Areas

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 2 costs, 3 mixed.

Property owners still pay district debt

Beginning May 6, 2026, property leaving a qualifying district remains taxable for its share of earlier bonded debt or judgments. This applies to districts funded mostly by sources other than property taxes, service charges, or water-allotment assessments. Generally, the debt or judgment must predate the petition filing date. For garbage districts, it must predate the board's receipt of the withdrawal notice. Leaving the district does not erase this tax liability.

Residents wait longer for withdrawal votes

Beginning May 6, 2026, municipal services district withdrawal votes use the next municipal general election more than 180 days after the resolution. The previous rule required more than 60 days. This extends the required wait before residents can vote.

Garbage districts face temporary debt limits

Beginning May 6, 2026, a garbage district receiving a withdrawal notice cannot take on debt, issue bonds, or make other financial commitments. The limit ends when withdrawal is final, the notice is rescinded, or one year passes—whichever happens first. Continuing the specified day-to-day operations does not count as a new financial obligation.

Local governments can leave garbage districts

Beginning May 6, 2026, first-class counties can start withdrawing unincorporated areas from garbage districts; municipalities in those counties can also withdraw. They give notice of intent, and district board approval is not required. A written agreement within 30 days after the district receives notice avoids a feasibility study; otherwise, a study and public process apply. After required hearings, the local government can adopt a withdrawal resolution within 60 days of the last hearing, accepting favorable study results and conditions. These withdrawals, and the law's covered regular, automatic, and eligible-area withdrawals, take effect when Utah's lieutenant governor issues a certificate, subject to resolution conditions.

Local governments get district withdrawal rules

Beginning May 6, 2026, this process is the sole withdrawal route for municipalities entirely within first responder or municipal services districts. A first-class county can also start withdrawal by resolution for all its unincorporated land entirely within a first responder district. First responder withdrawal requires a written agreement or voter approval; an election requires a study finding withdrawal workable, including any needed commitments. Without an agreement, both sides jointly choose an independent consultant and split study costs equally; studies assess service costs, household taxes, assets, debts, and employee impacts. Municipal services withdrawals require a study before the resolution, and first responder study conditions bind both parties after withdrawal unless they agree otherwise.

Sponsors & Cosponsors

Sponsor

  • Candice B. Pierucci

    Republican • House

Cosponsors

  • Daniel McCay

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 218 • No: 4

Senate vote • 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

House vote • 3/5/2026

House/ concurs with Senate amendment

Yes: 73 • No: 0

Senate vote • 3/5/2026

Senate/ passed 3rd reading

Yes: 26 • No: 3

Senate vote • 3/5/2026

Senate/ substituted

Yes: 0 • No: 0

House vote • 3/5/2026

House/ uncircled

Yes: 0 • No: 0

House vote • 3/5/2026

House/ circled

Yes: 0 • No: 0

Senate vote • 2/27/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 2/26/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 2/26/2026

Senate/ passed 2nd reading

Yes: 24 • No: 0

Senate vote • 2/26/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 2/23/2026

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 2/17/2026

House/ passed 3rd reading

Yes: 68 • No: 0

House vote • 2/6/2026

House Comm - Favorable Recommendation

Yes: 10 • No: 1

House vote • 2/6/2026

House Comm - Substitute Recommendation

Yes: 11 • No: 0

Actions Timeline

  1. Governor Signed

    3/23/2026
  2. House/ to Governor

    3/16/2026House
  3. House/ received enrolled bill from Printing

    3/16/2026House
  4. House/ enrolled bill to Printing

    3/12/2026House
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/10/2026
  7. Bill Received from House for Enrolling

    3/10/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/6/2026House
  9. House/ received from Senate

    3/6/2026House
  10. Senate/ to House

    3/6/2026Senate
  11. Senate/ signed by President/ returned to House

    3/6/2026Senate
  12. Senate/ received from House

    3/6/2026Senate
  13. House/ to Senate

    3/5/2026House
  14. House/ concurs with Senate amendment

    3/5/2026House
  15. House/ uncircled

    3/5/2026House
  16. House/ circled

    3/5/2026House
  17. House/ placed on Concurrence Calendar

    3/5/2026House
  18. House/ received from Senate

    3/5/2026House
  19. Senate/ to House with amendments

    3/5/2026Senate
  20. Senate/ passed 3rd reading

    3/5/2026Senate
  21. Senate/ substituted

    3/5/2026Senate
  22. Senate/ uncircled

    3/5/2026Senate
  23. Senate/ circled

    2/27/2026Senate
  24. Senate/ 3rd reading

    2/27/2026Senate
  25. Senate/ passed 2nd reading

    2/26/2026Senate

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #2

    3/3/2026

  • Substitute #1

    2/5/2026

  • Introduced

    1/30/2026

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