UtahH.B. 5352026 General SessionHouse

Disposition of Public Property Modifications

Sponsored By: R. Neil Walter (Republican)

Signed by Governor

CountiesCommunity Reinvestment AgenciesConveyancesEducationK-12 EducationMunicipalitiesLimited Purpose Local Government EntitiesPolitical Subdivisions (Local Issues)Special Service DistrictsIndependent EntitiesReal PropertySchool Districts

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 5 benefits, 0 costs, 4 mixed.

Former owners get first return offer

A county must first offer certain surplus land back to the person who originally transferred it. This applies to land obtained through an exaction—a required property transfer—and held for less than 15 years. The original grantor has 90 days to accept the return offer. If the grantor declines, a later sale must follow the state’s public-property disposal rules.

Two public property misdemeanors are repealed

Beginning May 6, 2026, the law repeals two public-property misdemeanor provisions. A false certificate is no longer a Class A misdemeanor under Section 11-1-3. Violating the public-property disposal act is no longer a misdemeanor under Section 11-1-6. The repeal removes these specific offenses, not penalties under other laws.

More notice before public property sales

Covered local governments must give notice before selling, donating, or making qualifying joint ventures involving public land. Leases with an initial term over 10 years also count. Without an applicable local definition, parcels worth at least $500,000 are significant; municipal and county definitions cannot exclude them. Significant parcels require online notice for at least 45 consecutive days, a sign, and an announcement at a public meeting. Municipalities and counties must also give at least 14 days’ notice before allowing public comment. Counties must define significant parcels and reasonable notice by ordinance. Smaller parcels require a sign. Significant deals generally need a majority vote at a public meeting, with disclosure of the buyer and price or lease/joint-venture recipient and terms. A local ordinance or resolution can skip that vote or meeting after compliance with the notice requirements, with public disclosure before or reasonably soon afterward.

Public agencies must follow property rules

County property purchases, ownership, sales, leases, and other transfers must serve the public interest and follow applicable law. Special districts must follow the state’s public-property disposal rules when selling or transferring real property. Redevelopment agencies’ transfers of real or personal property are also subject to those rules. Housing authorities must follow them, except authorities described in Utah Code Section 35A-8-403.

School land sales follow response deadline

Beginning May 6, 2026, school districts can sell surplus property after eligible entities have a 90-day response period. No eligible entity can have delivered a resolution declaring its intent to buy within 90 days after notice. The sale must follow the state’s public-property disposal rules.

Cities can help nonprofits within cap

Municipalities can give nonprofits services or other noncash help, or waive fees, without receiving anything in return. They must hold a public hearing first. Total assistance and waived fees under this authority cannot exceed 1% of the municipality’s budget each fiscal year.

Some public property deals skip procedures

General disposal procedures do not cover government-to-government transfers, cemetery plots, or legally required offers to return property to former owners. Specified surplus school-property deals and street closures are also exempt, but must follow their separate laws. Property exchanges are exempt when the required value findings are made. Both government parties must find exchanged parcels reasonably equal in value; a government trading with another party must find roughly equal market values. Estimated market values within 10% of one another are presumed reasonably equal.

Transportation zones skip some local rules

Actions under the transportation reinvestment zone law are exempt from specified municipal and county land-use and property requirements. This simplifies local procedures but removes those requirements for covered actions. Municipal and county rules governing transfers of real property still apply.

Counties gain flexibility with property safeguards

Counties can dispose of significant parcels below current market value only when adjusted present value at least equals current market value. They may use the average of two appraisals from different, independent, licensed or certified appraisers to establish market value. Counties may ask buyers or lessees to prove an offer is real, show ability to pay, or support expected county benefits. Counties do not have to consider unsolicited offers. Such offers cannot be used in valuation unless accepted professional appraisal standards allow it.

Sponsors & Cosponsors

Sponsor

  • R. Neil Walter

    Republican • House

Cosponsors

  • Daniel McCay

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 178 • No: 1

Senate vote • 3/6/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 3/6/2026

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote • 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 23 • No: 0

House vote • 3/6/2026

House/ concurs with Senate amendment

Yes: 61 • No: 1

Senate vote • 3/6/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 3/3/2026

Senate Comm - Substitute Recommendation

Yes: 4 • No: 0

Senate vote • 3/3/2026

Senate Comm - Favorable Recommendation

Yes: 4 • No: 0

House vote • 2/27/2026

House/ substituted

Yes: 0 • No: 0

House vote • 2/27/2026

House/ passed 3rd reading

Yes: 68 • No: 0

House vote • 2/25/2026

House Comm - Favorable Recommendation

Yes: 9 • No: 0

House vote • 2/25/2026

House Comm - Substitute Recommendation

Yes: 9 • No: 0

Actions Timeline

  1. Governor Signed

    3/19/2026
  2. House/ to Governor

    3/17/2026House
  3. House/ received enrolled bill from Printing

    3/17/2026House
  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

    3/11/2026
  7. Bill Received from House for Enrolling

    3/11/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/11/2026House
  9. House/ received from Senate

    3/11/2026House
  10. Senate/ to House

    3/10/2026Senate
  11. Senate/ signed by President/ returned to House

    3/10/2026Senate
  12. Senate/ received from House

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

    3/6/2026House
  14. House/ concurs with Senate amendment

    3/6/2026House
  15. House/ placed on Concurrence Calendar

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

    3/6/2026House
  17. Senate/ to House with amendments

    3/6/2026Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/6/2026Senate
  19. Senate/ floor amendment

    3/6/2026Senate
  20. Senate/ uncircled

    3/6/2026Senate
  21. Senate/ circled

    3/6/2026Senate
  22. Senate/ 2nd & 3rd readings/ suspension

    3/6/2026Senate
  23. Senate/ Rules to 2nd Reading Calendar

    3/6/2026Senate
  24. Senate/ 2nd Reading Calendar to Rules

    3/4/2026Senate
  25. Senate/ placed on 2nd Reading Calendar

    3/4/2026Senate

Bill Text

  • Enrolled

    3/12/2026

  • Amended 3/6/2026 23:03:158

    3/6/2026

  • Substitute #4

    3/3/2026

  • Substitute #3

    2/27/2026

  • Substitute #2

    2/25/2026

  • Substitute #1

    2/12/2026

  • Introduced

    2/10/2026

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