(1) (a) The legislative body or board of the creating entity shall: (i) approve the governing document for the public infrastructure district through resolution; and (ii) this part. (b) A governing document: (i) shall include the names of the initial members of the board; (ii) shall provide that, upon the lieutenant governor issuing a certificate of incorporation for the public infrastructure district, members of the board may be appointed in accordance with the terms of the governing document and this section; and (iii) may provide for the board of a public infrastructure district to, upon a vacancy on the board and subject to Subsection (4), appoint an individual to the board so long as the individual meets the requirements to serve on a public infrastructure district board described in this section. (c) If a public infrastructure district board position has transitioned from appointment to election, as described in Subsection (4), and an elected board position becomes vacant, the vacant board position shall be filled through the remainder of the term in the method provided in the governing document. (2) (a) Unless otherwise limited in the governing document and except as provided in Subsection (2) (b), the initial term of each member of the board is four years. (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial board shall serve a six-year term so that, after the expiration of the initial term, the term of approximately half the board members expires every two years. (c) A board may elect that a majority of the board serve an initial term of six years. (d) After the initial term, the term of each member of the board is four years. (e) A member of the board who is appointed shall continue to serve on the board of the public infrastructure district until a replacement board member is appointed. (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required to be a resident within the boundaries of the public infrastructure district if: (i) all of the surface property owners consent to the waiver of the residency requirement in the petition requesting the creation of the public infrastructure district; (ii) there are no residents within the boundaries of the public infrastructure district; (iii) no qualified candidate timely files to be considered for appointment to the board; or (iv) no qualified individual files a declaration of candidacy for a board position in accordance with Subsection 17B-1-306(5). (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member elected for a division or board position that has transitioned from an appointed to an elected board member in accordance with this section. (c) An individual who is not a resident within the boundaries of the public infrastructure district may not serve as a board member unless the individual is: (i) an owner of land or an agent or officer of the owner of land within the boundaries of the public infrastructure district; and (ii) a registered voter at the individual's primary residence. (d) If a public infrastructure district is not anticipated to have permanent residents within the public infrastructure district's boundaries, or is anticipated to be primarily composed of non-residential property or non-primary residential property, a governing document may allow the board to appoint a property owner, or the agent of a property owner, to the public infrastructure district board. (e) A governing document may allow for a property owner to recommend a property owner or a property owner's agent for appointment to the public infrastructure district board in numbers proportional to the property owner's ownership of land, or value of land, within a public infrastructure district. (4) (a) A governing document may provide for a transition from appointment under Subsection (1) to a method of election by registered voters based upon milestones or events that the governing document identifies, including a milestone for each division or individual board position providing that when the milestone is reached: (i) for a division, the registered voters of the division elect a member of the board in place of an appointed member at the next municipal general election for the board position; or (ii) for an at large board position established in the governing document, the registered voters of the public infrastructure district elect a member of the board in place of an appointed member at the next municipal general election for the board position. (b) Regardless of whether a board member is elected under Subsection (4)(a), the position of each remaining board member shall continue to be appointed under Subsection (1) until the member's respective division or board position surpasses the density milestone described in the governing document. (5) (a) For a public infrastructure district that has transitioned to a method of election as described in Subsection (4), the board may, in the board's discretion but no more frequently than every four years, reestablish the boundaries of each division so that each division that has reached a milestone specified in the governing document, as described in Subsection (4)(a), has, as nearly as possible, the same number of eligible voters. (b) In reestablishing division boundaries under Subsection (5)(a), the board shall consider existing or potential developments within the divisions that, when completed, would increase or decrease the number of eligible voters within the division. (6) A public infrastructure district may not compensate a board member for the member's service on the board under Section 17B-1-307 unless the board member is a resident within the boundaries of the public infrastructure district. (7) A governing document shall: (a) include a boundary description and a map of the public infrastructure district; (b) state the number of board members; (c) describe any divisions of the public infrastructure district; (d) establish any applicable property tax levy rate limit for the public infrastructure district; (e) establish any applicable limitation on the principal amount of indebtedness for the public infrastructure district; (f) describe the public infrastructure and improvements, facilities, or properties that the public infrastructure district is created to construct, repair, or otherwise complete, as described in Section 17D-4-203; and (g) include other information that the public infrastructure district or the creating entity determines to be necessary or advisable. (8) (a) Except as provided in Subsection (8)(b), the board and the governing body of the creating entity may amend a governing document by each adopting a resolution that approves the amended governing document. (b) Notwithstanding Subsection (8)(a), any amendment to increase a property tax levy rate limitation requires the consent of 100% of surface property owners within the boundaries of the public infrastructure district. (9) A board member is not in violation of Section 67-16-9 if the board member: (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8 and files the disclosure with the creating entity: (i) before any appointment or election; and (ii) upon any significant change in the business relationship; and (b) conducts the affairs of the public infrastructure district in accordance with this title and any parameters described in the governing document. (10) Notwithstanding any other provision of this section, the governing document and Section 17D-4-202.2, unless inconsistent with existing contractual obligations, govern the number, appointment, eligibility for appointment, and terms of board members of a public infrastructure district created by the development authority.
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