HB 535 — Disposition of Public Property Modifications

(d)(d)(i) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality previously provided notice under Section 10-20-203 identifying the general location within the municipality or unincorporated part of the county where the property to be acquired is located.

Section 11-1-10111-1-101, which is renumbered from Section 11-1-1 is renumbered and amended to read:

Bonds, Warrants, and Property Disposal Part- 1.6 - Enrolled Copy H.B.

Bonds535 andPart Warrants1. [11-1-1] 11-1-101.

Bonds and Warrants [11-1-1] 11-1-101 .

Section 11-1-10211-1-102, which is renumbered from Section 11-1-2 is renumbered and amended to read:

[11-1-2] 11-1-102.11-1-102 .

{(1)Whenever Asa usedcounty inlegislative thisbody, section:}board {(a)of "Legislativecity body"commissioners, means:}city {(i)council, or board of education of any such county, city, or school district shall find or declare that any appropriation or expenditure for which a warrant or warrants are to be issued was or is for interest upon the bonded debt, for salaries, or for the current expenses of such county, city, or school district, such finding or declaration shall conclusively protect the county legislativeauditor, body;}city {(ii)auditor, aor municipalclerk legislativeof body;the board of education of any such county, city, or school district, as to such facts, in certifying any warrant or warrants therefor to be within the lawful debt limit of such county, city, or school district.

or} {(iii) a school district board.} {(b) "Local government entity" means:} {(i) a county;} {(ii) a municipality;

or} - 7 - HB0535 compared with HB0535S04 {(iii) {a school district.} {(2)} Whenever {[a county legislative body, board of city commissioners, city council, or board of education of any such county, city, or school district shall find or declare{]} a legislative body finds or declares} that any appropriation or expenditure for which a warrant {[or warrants are{]} is} to be issued was or is for interest upon the bonded debt, for salaries, or for the current expenses of {[such county, city, or school district, such{]} the local government entity, the legislative body's} finding or declaration shall conclusively protect {[the county auditor, city auditor, or clerk of the board of education of any such county, city, or school district, as to such facts, in certifying any warrant or warrants therefor to be within the lawful debt limit of such county, city, or school district{]} local government entity officers or employees who:} {(a) {act in accordance with the legislative body's finding or declaration;

and} {(b)} certify the warrant to be within the lawful debt limit of the local government entity}.

Section 11-1-10311-1-103, which is renumbered from Section 11-1-4 is renumbered and amended to read:

[11-1-4] 11-1-103.11-1-103 .

Section 11-1-10411-1-104, which is renumbered from Section 11-1-5 is renumbered and amended to read:

[11-1-5] 11-1-104.11-1-104 .

(1)(1)(a) (a) Whenever any county, municipality, school district or taxing unit within this state is authorized to issue and sell its bonds, they may be issued in serial form or in the form of term bonds and made payable in such manner and at such times, within legal limits, as such county, municipality, school district or taxing unit may determine.

(b) Principal and interest shall be made payable only at a duly incorporated bank or trust company- operating7 under- stateH.B. or national banking laws or principal and interest may be made payable at such a bank or trust company or at the office of the treasurer of the issuer, at the option of the holder;

-535 8Enrolled -Copy HB0535company comparedoperating withunder HB0535S04state provided,or national banking laws or principal and interest may be made payable at such alternativea placesbank ofor paymenttrust arecompany designatedor inat the bondsoffice byof the issuertreasurer atof the timeissuer, suchat bondsthe areoption issued.of the holder;

(2)provided, (a)such Allalternative paymentsplaces of fundspayment eitherare asdesignated principalin orthe interest on any bonds issued by any county, municipality, school district or other taxing unit within this state paid to anyone other than the ownerissuer ofat such bonds shall be regarded and held as trust funds, and the person,time firm or corporation so receiving the same shall be held as a trustee of such funds holding the same for the benefit of the owners and holders of such bonds until the same are fullyissued. paid over.

(2)(a) All payments of funds either as principal or interest on any bonds issued by any county, municipality, school district or other taxing unit within this state paid to anyone other than the owner of such bonds shall be regarded and held as trust funds, and the person, firm or corporation so receiving the same shall be held as a trustee of such funds holding the same for the benefit of the owners and holders of such bonds until the same are fully paid over.

Section 611-1-201 is enacted to read:

11-1-201.Part 2.

Disposal of Public Property 11-1-201 .

2.As used in this part:

Disposal(1)(a) of"Dispose" Publicmeans Propertyto: As used in this part:

(1)(i) (1){(a)} "Dispose" means to sell, convey, donate, or otherwise permanently change the ownership of real property.property;

(b)(ii) "Dispose"enter doesinto nota includejoint anventure exchangethat ofgives a parcelprivate ofentity realthe propertyright forto anotheruse, parcelpossess, ofor occupy real propertyproperty; described in Subsection 11-1-205(2).

or (iii) give a private entity the right to use, possess, or occupy real property under a lease agreement with an initial term of more than 10 years.

(b) "Dispose" does not include:

(i) an exchange of a parcel of real property for another parcel of real property described in Subsection 11-1-205(2);

(ii) the creation, transfer, or use of an easement, unless the easement has a fair market value of more than 50% of the fair market value of the affected real property;

or (iii) giving a private entity the right to use, possess, or occupy real property under a lease agreement with an initial term of 10 years or less.

(c)- for8 a- specialEnrolled district,Copy specialH.B. service district, local building authority, conservation district, or public infrastructure district, the board of trustees;

535 (c) for a special district, special service district, local building authority, conservation district, or public infrastructure district, the board of trustees;

- 9 - HB0535 compared with HB0535S04 (d) a special district created under Title 17B, Limited Purpose Local Government Entities - Special Districts;

{(6) } {(a) {"Significant parcel" means real property that has an estimated fair market value of $500,000 or more.} } {(b) {"Significant parcel" also means the same as that term is defined in a relevant local governmental entity ordinance or resolution, as described in Subsection 11-1-202(2).} } Section 7.

Section 711-1-202 is enacted to read:

11-1-202.11-1-202 .

{Initiating disposal of public property -- } Determination of a significant parcelparcel. {-- Determination of fair market value} .

(a) {subject to Subsection (2), } determine if the public property constitutes a significant parcel;

(2) {NotwithstandingSubject theto definitionSubsection of(4) }in In making a determination on whether public property constitutes a significant parcelparcel: {in Section 11-1-201} :

(a) a municipality {may } shall apply the municipality's ordinance{,ordinance as } described in Subsection 10-8-2(4){,10-8-2(4); when determining whether a public property constitutes a significant parcel} ;

(b) a county {may } shall apply the county's ordinance{,ordinance as } described in Subsection 17-78-103(4){,17-78-103(4); when determining whether a public property constitutes a significant parcel} ;and (c) if a local governmental entity not described in Subsection (2)(a) or (b) has an ordinance or resolution defining "significant parcel," the local governmental entity {may } shall apply that definition , if the - 10 - HB0535 compared with HB0535S04 definition {recognizes a value of at least $500,000;

and}and is(c) reasonablyif similara tolocal thegovernmental definitionentity not described in Subsection (3).(2)(a) or (b) has an ordinance or resolution defining "significant parcel," the local governmental entity - 9 - H.B.

{(d)535 {ifEnrolled theCopy Schoolshall andapply Institutionalthat Trustdefinition, Landsif Administration, complying with this part in accordance with Section 53C-4-101, makes a rule defining significant parcel, the Schooldefinition andis Institutionalreasonably Trustsimilar Landsto Administration may apply the ruledefinition when determining whether a public property constitutes a significant parcel.} } (3) If a local governmental entity does not define significant parcel in aSubsection local(3). ordinance or resolution, "significant parcel" means real property that has an estimated fair market value of $500,000 or more.

(3) If a local governmental entity does not define significant parcel in a local ordinance or resolution, "significant parcel" means real property that has an estimated fair market value of $500,000 or more.

(4) A municipality or county may not establish by ordinance or resolution a definition of significant parcel that would result in real property with an estimated fair market value of $500,000 or more not qualifying as a significant parcel under the ordinance or resolution.

Section 811-1-203 is enacted to read:

11-1-203.11-1-203 .

Publication requirements--requirements -- Political subdivisions retain discretion.

(i) the public property is available for sale;sale, lease, or joint venture;

and (ii) offers on the public property may be made to the local governmental entity;

(2) A local governmental entity may offer the public property that is available for salesale, lease, or joint venture on one or more real estate offering websites.

(a) the public property is available for sale;sale, lease, or joint venture;

and (b) offers on the public property may be made to the local governmental entity.

(4) Nothing in this part diminishes a local governmental entity's discretion to determine the terms and conditions of thea final disposition of public property in accordance with the local governmental entity's relevant adopted ordinances or policies and other applicable law.

- 11 - HB0535 compared with HB0535S04 Section 9.

Section 911-1-204 is enacted to read:

11-1-204.11-1-204 .

(1)(1)(a) (1){(a)} For a significant parcel, the local governmental entity may approve disposal after:

(a){(i)}- complying10 with- anyEnrolled statutoryCopy provisionsH.B. outside this part that govern the local governmental entity and the local governmental entity's public property;

and535 (b){(ii)}(i) exceptcomplying aswith providedany instatutory Subsectionprovisions (2),outside thethis governingpart bodythat approvesgovern the disposallocal bygovernmental majorityentity voteand inthe alocal governmental entity's public meeting.property;

(2){(b)}and In(ii) {theexcept }as aprovided public meetingdescribed in Subsection (1)(a)(ii),(2), the governing body shallapproves disclose the detailsdisposal ofby themajority proposedvote offer,in including:a public meeting.

(a){(i)}(b) ifIn a sale,public meeting described in Subsection (1)(a)(ii), the proposedgoverning purchaserbody andshall disclose the details of the proposed price;offer, including:

and(i) (b){(ii)} if a leasesale, or a joint venture, the termsproposed ofpurchaser the offer and the proposed conveyee.price;

and (ii) if a lease or a joint venture, the terms of the offer and the proposed conveyee.

Section 1011-1-205 is enacted to read:

11-1-205.11-1-205 .

(1) The requirements of this part do not apply to:

(1){(a)}(a) a school district selling surplus property to an eligible entity, or to a county or municipality reselling surplus property to a school district, in accordance with Title 53G, Chapter 4, Part 9, Surplus School District Land;

(2){(b)}(b) a local governmental entity offering public property back to the party the local governmental entity received the public property from, if required to do so by another provision of law;

{or}(c) (3){(c)} a local governmental entity conveying public property to another local governmental entity{.}entity; ;

(d) easements;the sale of a cemetery plot;

or (e) the abandonment or vacation of a leasepublic atstreet anin airportaccordance forwith athe termrequirements of lessSection than10-20-208, 1017-79-208, years.or 72-5-105.

(2)(2)(a) - 12 - HB0535 compared with HB0535S04 (a) A political subdivision that exchanges real property for another parcel of real property is not required to comply with the provisions of this part if:

(i) both parties to the exchange are political subdivisions, both political subdivisions make- a11 finding- thatH.B. the exchanged parcels are of reasonably equivalent value;

535 Enrolled Copy make a finding that the exchanged parcels are of reasonably equivalent value;

11-13-227.11-13-227 .

(4)(4)(a) (a) Each public agency that is party to an agreement under this section shall annually publish a report including a statement of the increased tax revenue and the expenditures made in accordance with the agreement.

- 13 - HB0535 compared with HB0535S04 (5) If any surplus revenue remains in a tax revenue account created as part of a transportation reinvestment zone agreement, the parties may use the surplus for other purposes as determined by agreement of the parties.

(6)(6)(a) (a) An action taken under this section{section that does not result in a conveyance of real property from a local governmental entity, as defined in Section 11-1-201,} is not subject to:

(i)- Section12 10-8-2,- exceptEnrolled theCopy provisionsH.B. governing a municipality conveying real property do apply;

535 (i) Section 10-8-2, except the provisions governing a municipality conveying real property do apply;

17-60-202.17-60-202 .

(1)(1)(a) (a) Except as provided in Subsection (1)(b), a county may:

(b) A county or a governmental instrumentality of a county may not perform an action described in Subsection (1)(a)(i) or provide a service, exercise a power, or perform a function described in Subsection (1)(a)(ii) in another county or a municipality within the other county without first entering into an agreement under Title 11, Chapter 13, Interlocal Cooperation Act, or other contract - 14 - HB0535 compared with HB0535S04 with the other county to perform the action, provide the service, exercise the power, or perform the function.

(b)(b)(i) (i) subject to Subsection (4), acquire real property by tax sale, purchase, lease, contract, or gift;

(c)(c)(i) (i) subject to Subsections (3)(a) and (b), acquire real property by condemnation, as provided in Title 78B, Chapter 6, Part 5, Eminent Domain;

and (ii)- hold13 the- realH.B. property acquired under Subsection (2)(c)(i) as necessary and proper for county purposes;

535 Enrolled Copy (ii) hold the real property acquired under Subsection (2)(c)(i) as necessary and proper for county purposes;

(3)(3)(a) (a) For purposes of Subsection (2)(c), water rights that are not appurtenant to land do not constitute real property that may be acquired by the county through condemnation.

- 15 - HB0535 compared with HB0535S04 (i) the anticipated use of the property under the general plan of the county in whose unincorporated area or the municipality in whose boundaries the property is located;

(5)(5)(a) (a) Each notice under Subsection (4) shall:

(6) The notice requirement of Subsection (4) does not apply if the county previously provided- notice14 under- SectionEnrolled 17-79-203Copy identifyingH.B. the general location within the municipality or unincorporated part of the county where the property to be acquired is located.

535 provided notice under Section 17-79-203 identifying the general location within the municipality or unincorporated part of the county where the property to be acquired is located.

17-78-103.17-78-103 .

-(4)(a) 16 - HB0535 compared with HB0535S04 (4) (a) Before a county may dispose of a significant parcel of real property, the county shall:

(5)(5)(a) (a) A county may dispose of a significant parcel of real property in exchange for less than the present fair market value of the significant parcel of real property if the adjusted present value of the significant parcel of real property is equal to or greater than the present fair market value of the significant parcel of real property.

(b) Subsection (5)(a) does not affect a county's authority to dispose of a significant parcel of real property in a manner different from Subsection (5)(a) and in accordance- with15 applicable- law.H.B.

535 Enrolled Copy accordance with applicable law.

-17-79-812 17. - HB0535 compared with HB0535S04 17-79-812.

(3)(3)(a)(i) (a) (i) Subject to the requirements of this Subsection (3), a county or, if applicable, the county's culinary water authority shall base any exaction for a water interest on the culinary water authority's established calculations of projected water interest- requirements.16 - Enrolled Copy H.B.

535 interest requirements.

(iii) A county or culinary water authority may impose an exaction for a culinary water interest that results in less water being exacted than would otherwise be exacted under Subsection (3)(a)(3)(a)(ii) (ii) if the county or culinary water authority, at the county's or culinary water authority's sole discretion, determines there is good cause to do so.

A land - 18 - HB0535 compared with HB0535S04 use applicant may present data and other information that illustrates a need for an exaction recalculation and the county's governing body shall respond with due process.

(4)(4)(a) (a) If a county plans to dispose of surplus real property under Section 17-78-103 that was acquired under this section and has been owned by the county for less than 15 years, the county shall first offer to reconvey the property, without receiving additional consideration, to the person who granted the property to the county.

(b) A person to whom a county offers to reconvey property under Subsection (4)(a) has 90- days17 to- acceptH.B. or reject the county's offer.

535 Enrolled Copy 90 days to accept or reject the county's offer.

(5)(5)(a) (a) A county may not, as part of an infrastructure improvement, require the installation of pavement on a residential roadway at a width in excess of 32 feet.

- 19 - HB0535 compared with HB0535S04 (v) to address traffic flow constraints for service to or abutting higher density developments or uses that generate higher traffic volumes, including community centers, schools, and other similar uses;

(d)(d)(i) (i) A land use applicant may appeal a municipal requirement for pavement in excess of 32 feet on a residential roadway.

(ii) A land use applicant that has appealed a municipal specification for a residential roadway- pavement18 width- inEnrolled excessCopy ofH.B. 32 feet may request that the county assemble a panel of qualified experts to serve as the appeal authority for purposes of determining the technical aspects of the appeal.

(iii)535 Unlessroadway otherwisepavement agreedwidth byin theexcess applicantof and32 thefeet county,may request that the county assemble a panel describedof inqualified Subsectionexperts (5)(d)to (ii)serve shallas consistthe appeal authority for purposes of determining the followingtechnical threeaspects experts:of the appeal.

(iii) Unless otherwise agreed by the applicant and the county, the panel described in Subsection (5)(d)(ii) shall consist of the following three experts:

- 20 - HB0535 compared with HB0535S04 (vi) The decision of the panel is a final decision, subject to a petition for review under Subsection (5)(d)(5)(d)(vii). (vii).

17B-1-103.17B-1-103 .

(b) acquire, by any lawful means, any interest in real property, personal property, or a groundwater- right19 necessary- orH.B. convenient to the full exercise of the district's powers;

535 Enrolled Copy groundwater right necessary or convenient to the full exercise of the district's powers;

- 21 - HB0535 compared with HB0535S04 (h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent domain property necessary to the exercise of the district's powers;

(j)(j)(i) (i) impose fees or other charges for commodities, services, or facilities provided by the district, to pay some or all of the district's costs of providing the commodities, services, and facilities, including the costs of:

(n)- encumber20 district- propertyEnrolled uponCopy termsH.B. and conditions that the board of trustees considers appropriate;

535 (n) encumber district property upon terms and conditions that the board of trustees considers appropriate;

- 22 - HB0535 compared with HB0535S04 (ii) in, upon, or over any vacant public lands that are or become the property of the state, including school and institutional trust lands, as defined in Section 53C-1-103, if the director of the School and Institutional Trust Lands Administration, acting under Sections 53C-1-102 and 53C-1-303, consents;

(r)(r)(i) (i) except for a special district described in Subsection (2)(r)(ii), designate an assessment area and levy an assessment on land within the assessment area, as provided in Title 11, Chapter 42, Assessment Area Act;

(i)- (A)21 with- anotherH.B. political subdivision of the state;

535 Enrolled Copy (i)(A) with another political subdivision of the state;

and - 23 - HB0535 compared with HB0535S04 (u) if the special district receives, as determined by the special district board of trustees, adequate monetary or nonmonetary consideration in return:

(4)(4)(a) (a) A special district may:

and (C)- operation22 of- theEnrolled facilitiesCopy willH.B. not hinder or interfere with the primary operations of the district;

and535 (ii)(C) (A)operation useof electricitythe generatedfacilities bywill not hinder or interfere with the facilitiesprimary describedoperations inof Subsectionthe (4)(a)(i);district;

and (ii)(A) use electricity generated by the facilities described in Subsection (4)(a)(i);

- 24 - HB0535 compared with HB0535S04 (c) Revenue that a district receives from the sale of electricity from electrical generation facilities [it] the district owns or operates under this section may be used for any lawful district purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or constructing the facilities.

(6)(6)(a) (a) Each special district shall register and maintain the special district's registration as a limited purpose entity, in accordance with Section 67-1a-15.

(7)(7)(a) (a) As used in this Subsection (7), "knife" means a cutting instrument that includes a sharpened or pointed blade.

17C-1-202.17C-1-202 .

(d) hold, sell, convey, grant, gift, or otherwise dispose of any interest in real or personal property, subject to the requirements of Title 11, Chapter 1, Part 2, Disposal of Public Property;- 23 - H.B.

535 Enrolled Copy Property;

- 25 - HB0535 compared with HB0535S04 (g) provide for project area development as provided in this title;

(5)(5)(a) (a) An agency may, subject to Subsection (5)(c), enter into a participation agreement with a person to govern the development the person will undertake within a project area.

(b)- A24 participation- agreementEnrolled underCopy SubsectionH.B. (5)(a) shall include a description of:

535 (b) A participation agreement under Subsection (5)(a) shall include a description of:

- 26 - HB0535 compared with HB0535S04 (ii) the amount of project area funds the agency agrees to pay to the person to facilitate the development;

(c)(c)(i) (i) A participation agreement under Subsection (5)(a) is subject to board approval by resolution of the board.

(d)(d)(i) (i) Beginning on May 7, 2025, any participation agreement under this Subsection (5) shall include a provision authorizing the agency, directly or through the county in which the agency operates, to use funding that would otherwise be provided to the participant to pay a participant's delinquent property tax or privilege tax or resolve a political subdivision lien against the participant, as described in Subsection 17C-1-409(6).

35A-8-407.35A-8-407 .

- 2725 - HB0535H.B. compared with HB0535S04 (e) within its area of operation, prepare, carry out, and operate projects and provide for the acquisition, construction, reconstruction, rehabilitation, improvement, extension, alteration or repair of any project;

535 Enrolled Copy (e) within its area of operation, prepare, carry out, and operate projects and provide for the acquisition, construction, reconstruction, rehabilitation, improvement, extension, alteration or repair of any project;

(g)(g)(i) (i) make the results of studies and analyses available to the public and the building, housing, and supply industries;

- 28 - HB0535 compared with HB0535S04 (n) sell, lease, exchange, transfer, assign, pledge, or dispose of real or personal property or- any26 interest- inEnrolled it;Copy H.B.

535 or any interest in it;

and - 2927 - HB0535H.B. compared with HB0535S04 (z) exercise all or any part or combination of the powers granted under this part.

(3)535 (a)Enrolled IfCopy there(z) areexercise twoall or moreany housingpart authorities established within a county of the first or secondcombination class, then those housing authorities shall create a uniform online application for the housing choice voucher program with links to each of the housingpowers authoritiesgranted withinunder thethis county.part.

(3)(a) If there are two or more housing authorities established within a county of the first or second class, then those housing authorities shall create a uniform online application for the housing choice voucher program with links to each of the housing authorities within the county.

(4)(4)(a) (a) No provision of law with respect to the acquisition, operation, or disposition of property by other public bodies is applicable to an authority unless the Legislature specifically states that it is.

{Section 18.

Section 53C-4-101 is amended to read:

} 53C-4-101.

Criteria for sale, lease, exchange, or other disposition of trust lands.

(1) (a) The director shall establish criteria by rule for the sale, exchange, lease, or other disposition or conveyance of trust lands, including procedures for determining fair market value of those lands.

(b) (i) Nothing in this title or in the administration's rules and procedures shall be considered to require the director or the administration to execute any transaction for the disposition of trust lands on terms that the director determines by a written finding to be unfavorable to the beneficiaries.

(ii) The director shall send a copy of the written finding to each board member for review and comment.

(c) Before the administration sells or conveys trust lands, the administration shall comply with the provisions of Title 11, Chapter 1, Part 2, Disposal of Public Property:

(i) the same as if the administration were a local governmental entity, as that term is defined in Section 11-1-201, except the requirement to publish an announcement, as described in Section 11-1-203, does not apply and Subsection 53C-4-102(3) applies;

and (ii) to the extent that the requirements in Title 11, Chapter 1, Part 2, Disposal of Public Property, are not expressly contradicted by another provision in this title.

- 30 - HB0535 compared with HB0535S04 (2) The governor, with the consent of the board, may participate in efforts and initiatives related to school and institutional trust lands inholdings.

53G-4-902.53G-4-902 .

(2)(2)(a) (a) Upon declaring land to be surplus property, each school district shall give written notice to each eligible entity in which the surplus property is located.

(4)(4)(a) (a) The legislative body of each eligible entity desiring to purchase surplus property under this section shall:

(b) If an eligible entity fails to comply with either of the requirements under Subsection (4)(a)- within28 the- applicableEnrolled timeCopy period,H.B. the eligible entity forfeits the right to purchase the surplus property.

(5)535 (a)(4)(a) Anwithin eligiblethe entityapplicable maytime waiveperiod, the eligible entity'sentity forfeits the right to purchase surplus property under this part by submitting a written waiver to the schoolsurplus district.property.

(5)(a) An eligible entity may waive the eligible entity's right to purchase surplus property under this part by submitting a written waiver to the school district.

- 31 - HB0535 compared with HB0535S04 (a) a county, city, or town hall;

(7) If no eligible entity {purchases, or enters into an agreement with } delivers a copy of a resolution to the school district {to purchase, the surplus property } as described in Subsection (4)(a)(i) within {one year } 90 days of the day on which the school district notifies eligible entities under Subsection (2), the school district may sell surplus property in accordance with Title 11, Chapter 1, Part 2, Disposal of Public Property.

[(7)] (8)(8)(a) (a) A school district that sells surplus property under this part may use proceeds from the sale only for bond debt reduction or school district capital facilities.

This Bill Repeals:

Effective date.

3-3-26 4:12 PM - 3229 -