All Roll Calls
Yes: 140 • No: 21
UtahS.B. 2412025 General SessionSenateWALLET
Limited Purpose Local Government Amendments
Sponsored By: Jerry W Stevenson (Republican)
Signed by Governor
Public BondsLand UseLocal DistrictsLimited Purpose Local Government EntitiesPolitical Subdivisions (Local Issues)Impact FeesPublic Infrastructure District
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 4 benefits, 2 costs, 9 mixed.
Property owners gain district board options
District governing documents can let owners recommend board appointees, with recommendation counts based on land ownership or value. Recommendations do not guarantee a seat. Documents can allow continued owner or agent appointments where no permanent residents are expected, or mostly nonresidential or non-primary homes are expected. Unless board appointments are already authorized, the creating entity has 45 days after a vacancy or resignation notice to appoint a replacement. After that, the board can appoint an eligible replacement; elected seats follow separate state election rules.
Some districts can create replacement districts
A basic special district can create a public infrastructure district within its boundaries through a narrowly limited pathway. It must have formed before April 15, 2011, and issued limited general obligation bonds in 2024. It must also have had no public infrastructure district within its boundaries on January 1, 2025. The new district receives its creator’s powers, and its land automatically leaves the original district. Its governing document must use the same board-election method as the original district.
Districts can finance more property improvements
Public infrastructure districts can finance more qualifying utilities, roads, buildings, facilities, and cleanup, including private projects that benefit the public. Private improvements under the general definition need express permission in the governing document or an agreement with the creating entity. Districts receiving tax-increment revenue must also ensure improvements are allowed uses of that money. Districts can buy completed or partly completed improvements and related design or consulting work at fair market value. Value must be reasonably set by the board, a creating entity when required, or a hired engineer or surveyor; districts financing qualifying system improvements can also seek impact-fee offsets, credits, or refunds.
Eligible districts can fund affordable homes
Eligible basic special districts can fund privately owned affordable single-family homes and townhomes. They can also fund public or private health care, recreation, community arts, and amphitheater facilities. A private grocery store qualifies only when no grocery store is located within the district. Districts can fund facilities used by government entities and transfer public-facility ownership to another political subdivision through a written agreement. The law sets no funding amounts or direct household payments.
District challenges face 30-day deadlines
Challenges to district creation, covered tax or fee actions, annexations, or withdrawals must be filed within 30 days of the relevant event. A summons must also be served within that period. Missing the deadline bars that person’s later challenge to the covered bonds, taxes, or fees. For assessment-area designations, assessments, or amendments involving public infrastructure districts, the deadline drops from 60 to 30 days when all affected owners consent in writing. Those challengers must also file and serve the summons on time.
Districts can charge administrative service fees
Public infrastructure districts can charge administrative service fees to cover improvement, property, or legal-enforcement costs. Boards must set fee schedules by ordinance or resolution; the law sets no fee amounts. Districts alone handle collection, enforcement, and foreclosure for their fees and assessments under the Assessment Area Act. That assigned responsibility no longer includes taxes.
District tax powers face approval safeguards
District property-tax levies are capped at $0.015 per dollar of taxable value, excluding general obligation bond principal and interest. Raising a governing document’s levy-rate limit requires all surface property owners’ consent, but no longer requires registered-voter consent. Public or private recipients need board approval to receive district property-tax revenue, except for county tax-collection expenses. Districts must record incorporation notices in every affected county within 30 days after the lieutenant governor issues the certificate. Recording controls the property-tax assessment effective date; until recording, districts cannot levy taxes or levy or collect fees, though districts and bonds remain valid.
Districts stay independent as boundaries change
Public infrastructure districts are independent public bodies that can continue indefinitely and sue or be sued. City annexations and shared city boundary changes do not change district boundaries. Petitions to add or remove district land require signatures from all surface property owners in the affected area. Registered-voter approval is no longer required. The district board and creating entity must approve, unless the governing document or creation resolution allows board-only approval.
Property owners control district creation
Creating a public infrastructure district requires signatures from all surface property owners, but no longer requires registered-voter signatures. Those owners can also shorten or waive the creation protest period without voter approval. Public entities, utilities, and owners’ associations need not consent when their interests are limited to easements, rights-of-way, or related improvements. Development authorities can create districts by resolution with written consent from all surface property owners, including as authority subsidiaries. For military land within a project area, the lessee counts as the owner.
District bond approvals can last longer
Limited tax bonds require either all surface owners’ consent plus majority voter consent, or approval by a majority voting in an election. The consent route requires mailed voter requests and a public notice posted for at least 30 days. Only responding voters count; no responses also satisfy voter consent. Approval lasts 10 years after the required board finding and notice, and later district boundary changes do not affect it. Without another vote or consent, districts can convert limited tax bonds to general obligation bonds when combined covered principal is at most 15% of securing taxable property’s fair market value, based on a qualifying appraisal or the county assessor’s latest value.
District bonds gain exceptions and reviews
Limited tax bonds normally have a $500,000 minimum denomination, with added increments of at least $1,000. That minimum does not apply to bonds initially bought exclusively by qualified institutional buyers or given an investment-grade rating. Before issuing limited tax or assessment bonds, districts must hire a municipal advisor. The advisor must certify qualifications and that the bond structure and interest rate are reasonable at issuance. Districts created by development authorities are exempt from the advisor requirement.
Districts expand commercial clean energy financing
Public infrastructure districts can use the state’s commercial clean energy financing program and must follow its rules. They can create assessment areas for commercial or industrial owners who voluntarily agree to assessments for eligible improvements. Improvements include energy efficiency, clean energy, storage, and electric-vehicle charging. Assessment liens have priority similar to property-tax liens and can be assigned to third-party lenders. Local entities can also assess federal or public-agency property when its government owner consents in writing.
Districts gain broader borrowing and collateral
Public infrastructure districts can use more debt tools, including commercial clean energy bonds, for legally authorized purposes. District-funded improvements and facilities can now secure bonds. Bonds can mature no later than 40 years after issuance. Districts can receive revenue to cover bond-payment shortfalls for an unlimited time unless governing or bond documents set a limit. Maximum bond terms face State Finance Review Commission review, and districts must report closings to it and the Executive Appropriations Committee within 60 days.
Property-owner districts gain flexible bond funding
For the covered property-owner district bond authority, consent from all property owners and all registered voters remains valid for 10 years. Bond money can fund systems or improvements allowed under the Basic Special District law, beyond creation-resolution projects. Boards can approve final bond terms and project contracts or delegate approval by resolution to district officers. Contracts can include agreements with property owners inside the district. Districts can pledge impact fees or other real-property fee revenue to repay these bonds, without this law setting or raising those fees.
Districts gain cleanup and upkeep powers
Development-authority-created districts can operate and maintain infrastructure they acquire or finance. Municipal districts can do so in urban renewal areas that include all or part of an inactive industrial site. These districts can pay upkeep costs through fees, assessments, or taxes; the law sets no household amounts. Districts created by or subsidiary to the Utah Inland Port Authority can issue bonds and pay costs for qualifying authority cleanup projects.
Sponsors & Cosponsors
Sponsor
Jerry W Stevenson
Republican • Senate
Cosponsors
Paul A. Cutler
Republican • House
Roll Call Votes
Senate vote • 3/5/2025
Senate/ concurs with House amendment
Yes: 25 • No: 2
House vote • 3/4/2025
House/ passed 3rd reading
Yes: 58 • No: 14
House vote • 3/4/2025
House/ substituted
Yes: 0 • No: 0
House vote • 2/28/2025
House Comm - Favorable Recommendation
Yes: 7 • No: 0
Senate vote • 2/24/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/24/2025
Senate/ passed 3rd reading
Yes: 22 • No: 4
Senate vote • 2/24/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/21/2025
Senate/ passed 2nd reading
Yes: 24 • No: 1
Senate vote • 2/21/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/21/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/12/2025
Senate Comm - Favorable Recommendation
Yes: 4 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/25/2025Senate/ to Governor
3/13/2025SenateSenate/ received enrolled bill from Printing
3/13/2025SenateSenate/ enrolled bill to Printing
3/7/2025SenateEnrolled Bill Returned to House or Senate
3/7/2025Draft of Enrolled Bill Prepared
3/5/2025Bill Received from Senate for Enrolling
3/5/2025Senate/ signed by President/ sent for enrolling
3/5/2025SenateSenate/ received from House
3/5/2025SenateHouse/ to Senate
3/5/2025HouseHouse/ signed by Speaker/ returned to Senate
3/5/2025HouseHouse/ received from Senate
3/5/2025HouseSenate/ to House
3/5/2025SenateSenate/ concurs with House amendment
3/5/2025SenateSenate/ placed on Concurrence Calendar
3/5/2025SenateSenate/ received from House
3/5/2025SenateHouse/ to Senate
3/4/2025HouseHouse/ passed 3rd reading
3/4/2025HouseHouse/ substituted
3/4/2025HouseHouse/ 3rd reading
3/4/2025HouseHouse/ 2nd reading
3/4/2025HouseHouse/ Rules to 3rd Reading Calendar
3/4/2025HouseHouse/ return to Rules due to fiscal impact
2/28/2025HouseHouse/ committee report favorable
2/28/2025HouseHouse Comm - Favorable Recommendation
2/28/2025House
Bill Text
Enrolled
3/7/2025
Substitute #2
3/3/2025
Substitute #1
2/28/2025
Introduced
2/6/2025