1. (1)

   1. (a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the provisions regarding creation of a special district in Title 17B, Chapter 1, Provisions Applicable to All Special Districts, a public infrastructure district may not be created unless a petition is filed with the creating entity that contains the signatures of 100% of surface property owners within the applicable area consenting to the creation of the public infrastructure district.

   2. (b)

      1. (i) As used in this Subsection (1)(b):

         1. (A) "Military land" means the same as that term is defined in Section 63H-1-102.
         2. (B) "Project area" means the same as that term is defined in Section 63H-1-102.
      2. (ii) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Special District, and any other provision of this chapter, a development authority may adopt a resolution creating a public infrastructure district if all owners of surface property proposed to be included within the public infrastructure district consent in writing to the creation of the public infrastructure district.
      3. (iii) For purposes of Subsection (1)(b)(ii), if the surface property proposed to be included within the public infrastructure district includes military land that is within a project area, the owner of the military land within the project area is the lessee of the military land.
      4. (iv) A public infrastructure district created under Subsection (1)(b)(ii) may be created as a subsidiary of the development authority that adopts the resolution creating the public infrastructure district.

2. (2)

   1. (a) The following do not apply to the creation of a public infrastructure district:

      1. (i) Section 17B-1-203;
      2. (ii) Section 17B-1-204;
      3. (iii) Subsection 17B-1-208(2);
      4. (iv) Section 17B-1-212; or
      5. (v) Section 17B-1-214.
   2. (b) The protest period described in Section 17B-1-213 may be waived in whole or in part with the consent of 100% of the surface property owners within the applicable area approving the creation of the public infrastructure district.
   3. (c) If the protest period is waived under Subsection (2)(b), a resolution approving the creation of the public infrastructure district may be adopted in accordance with Subsection 17B-1-213(5).
   4. (d) A petition meeting the requirements of Subsection (1) may be certified under Section 17B-1-209.
   5. (e) Notwithstanding Subsection 17B-1-215(1)(b), the district applicant shall file the items required by Subsection 17B-1-215(1)(a) with the lieutenant governor within 30 days of the day on which a resolution creating a public infrastructure district is adopted.

3. (3) Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the boundaries of a public infrastructure district may be annexed into the public infrastructure district if the following requirements are met:

   1. (a) the board adopts a resolution approving the annexation;
   2. (b) the governing document or resolution creating the public infrastructure district authorizes the public infrastructure district to annex the proposed annexation area;
   3. (c) a petition is filed with the public infrastructure district that contains the signatures of 100% of surface property owners within the proposed annexation area, demonstrating the surface property owners' consent to the annexation into the public infrastructure district; and

   4. (d) if the creating entity is a county or municipality and the proposed annexation area is outside the boundaries of the creating entity:

      1. (i) for an area that is unincorporated, the legislative body of the county where the area is located adopts a resolution approving the annexation; or
      2. (ii) for an area that is within the boundaries of a municipality, the legislative body of the municipality where the area is located adopts a resolution approving the annexation.

4. (4)

   1. (a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be withdrawn from a public infrastructure district if the following requirements are met:

      1. (i) adoption of a resolution of the board approving of the withdrawal; and
      2. (ii) a petition is filed with the public infrastructure district that contains the signatures of 100% of surface property owners within the area proposed to be withdrawn, demonstrating that the surface property owners consent to the withdrawal from the public infrastructure district.
   2. (b) If any bonds that the public infrastructure district issues are allocable to the area to be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains subject to any taxes, fees, or assessments that the public infrastructure district imposes until the bonds or any associated refunding bonds are paid.

   3. (c) Upon meeting the requirements of Subsection (3) or (4)(a), the board shall:

      1. (i) within 30 days of the day on which a resolution is adopted or a petition is filed under Subsection (3) or (4)(a), file with the lieutenant governor:

         1. (A) a copy of a notice of impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
         2. (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and

      2. (ii) comply with the requirements of Section 17B-1-512, except:

         1. (A) Subsections 17B-1-512(1)(b) and (c) do not apply; and
         2. (B) the time periods described in this section govern.
5. (5) A creating entity may impose limitations on the powers of a public infrastructure district through the governing document.

6. (6)

   1. (a) A public infrastructure district is separate and distinct from the creating entity.

   2. (b)

      1. (i) Except as provided in Subsection (6)(b)(ii), any financial burden, including the cost of accounting, audit reporting, and budget preparation, of a public infrastructure district:

         1. (A) is borne solely by the public infrastructure district; and
         2. (B) is not borne by the creating entity, by the state, or by any municipality, county, or other political subdivision.

      2. (ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing document may require:

         1. (A) the district applicant to bear the initial costs of the public infrastructure district; and
         2. (B) the public infrastructure district to reimburse the district applicant for the initial costs the creating entity bears.
      3. (iii) Nothing in this Subsection (6) precludes a public infrastructure district from qualifying directly for an impact fee offset, credit, or refund under Title 11, Chapter 36a, Impact Fees Act, regarding any qualifying system improvements financed by the public infrastructure district.

   3. (c) Any legal responsibility, liability, judgment, or claim against a public infrastructure district:

      1. (i) is the sole responsibility of the public infrastructure district; and
      2. (ii) does not constitute a liability, judgment, or claim against the creating entity, the state, or any municipality, county, or other political subdivision.

   4. (d)

      1. (i)

         1. (A) The public infrastructure district solely bears the responsibility of any collection, enforcement, or foreclosure proceeding with regard to any fee or assessment the public infrastructure district imposes.
         2. (B) The creating entity does not bear the responsibility described in Subsection (6)(d)(i)(A).
      2. (ii) A public infrastructure district, and not the creating entity, shall undertake the enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in accordance with Title 11, Chapter 42, Assessment Area Act.

7. (7) A creating entity may establish criteria in determining whether to approve or disapprove of the creation of a public infrastructure district, including:

   1. (a) historical performance of the district applicant;
   2. (b) compliance with the creating entity's master plan;
   3. (c) credit worthiness of the district applicant;
   4. (d) plan of finance of the public infrastructure district; and
   5. (e) proposed development within the public infrastructure district.

8. (8)

   1. (a) The creation of a public infrastructure district is subject to the sole discretion of the creating entity responsible for approving or rejecting the creation of the public infrastructure district.
   2. (b) The proposed creating entity bears no liability for rejecting the proposed creation of a public infrastructure district.

Amended by Chapter 373, 2026 General Session