1. (1)

   1. (a) There is created an expendable special revenue fund known as the "Municipal Incorporation Expendable Special Revenue Fund."

   2. (b) The fund shall consist of:

      1. (i) appropriations from the Legislature;
      2. (ii) payments that feasibility request sponsors make to the lieutenant governor under Subsections 10-2a-205(1)(b) and 10-2a-206(1)(f); and
      3. (iii) fees the lieutenant governor collects and remits to the fund under this section.
   3. (c) The lieutenant governor shall deposit all money collected under this section into the fund.

2. (2)

   1. (a) The lieutenant governor shall establish a fee in accordance with Section 63J-1-504 for a cost incurred by the lieutenant governor or the county for an incorporation proceeding, including:

      1. (i) a request certification;
      2. (ii) a petition certification;
      3. (iii) publication of notices;
      4. (iv) public hearings;
      5. (v) all other incorporation activities occurring after the elections; and
      6. (vi) any other cost incurred by the lieutenant governor or county in relation to an incorporation proceeding.
   2. (b) A cost under Subsection (2)(a) does not include a cost incurred by a county for holding an election under Section 10-2a-210.
3. (3) Subject to Subsections 10-2a-205(1)(b) and 10-2a-206(2)(h), the lieutenant governor shall pay for a cost described in Subsection (2)(a) using funds from the Municipal Incorporation Expendable Special Revenue Fund.

4. (4)

   1. (a) A newly incorporated municipality shall:

      1. (i) pay to the lieutenant governor each fee established under Subsection (2) for each cost described in Subsection (2)(a) incurred by the lieutenant governor or the county;
      2. (ii) pay the county for a cost described in Subsection (2)(b); and

      3. (iii) reimburse feasibility request sponsors the cost the feasibility request sponsors paid for:

         1. (A) a feasibility study under Section 10-2a-205; and
         2. (B) any supplemental feasibility study under Section 10-2a-206.
   2. (b) The lieutenant governor shall execute a payback agreement with each new municipality for the new municipality to pay the fees described in Subsection (4)(a) over a period that, except as provided in Subsection (4)(c), may not exceed five years.
   3. (c) If necessary, the lieutenant governor may extend a fee payment deadline beyond the deadline described in Subsection (4)(b) by amending the payback agreement described in Subsection (4)(b).
   4. (d) The lieutenant governor shall deposit each fee the lieutenant governor collects under Subsection (4)(a)(i) into the Municipal Incorporation Expendable Special Revenue Fund.
5. (5) If the lieutenant governor expends funds from the Municipal Incorporation Expendable Special Revenue Fund that are not repaid to the lieutenant governor under Subsection (4)(a)(i) because an area did not incorporate as a municipality, the Legislature shall appropriate money to the fund in an amount equal to the funds that are not repaid.

Amended by Chapter 166, 2026 General Session