Action to contest assessment or proceeding -- Requirements -- Exclusive remedy -- Bonds and assessment incontestable.

Checkout our iOS App for a better way to browser and research.



  • (1)
    • (a) A person may commence a civil action against a local entity to contest an assessment, a proceeding to designate an energy assessment area, or a proceeding to levy an assessment.
    • (b) The remedies available in a civil action described in Subsection (1)(a) are:
      • (i) setting aside the proceeding to designate an energy assessment area; or
      • (ii) enjoining the levy or collection of an assessment.
  • (2)
    • (a) A person bringing an action under Subsection (1) shall bring the action in the district court with jurisdiction in the county in which the energy assessment area is located.
    • (b) A person may not begin the action against or serve a summons relating to the action on the local entity more than 30 days after the earlier of:
      • (i) the date of publication or posting of the notice of the adoption of a parameters resolution that the local entity adopts in accordance with Section 11-42a-201;
      • (ii) the effective date of the energy assessment resolution or ordinance; or
      • (iii) the written agreement between a local entity and a third-party lender, described in Section 11-42a-302.
  • (3) An action under Subsection (1) is the exclusive remedy of a person:
    • (a) claiming an error or irregularity in an assessment, a proceeding to designate an energy assessment area, or a proceeding to levy an assessment; or
    • (b) challenging a bondholder's or third-party lender's right to repayment.
  • (4) A court may not set aside, in part or in whole or declare invalid an assessment, a proceeding to designate an energy assessment area, or a proceeding to levy an assessment because of an error or irregularity that does not relate to the equity or justice of the assessment or proceeding.
  • (5) Except as provided in Subsection (6), after the expiration of the 30-day period described in Subsection (2)(b):
    • (a) the following become incontestable against any person that has not commenced an action and served a summons as provided in this section:
      • (i) the written agreement entered into or to be entered into under Section 11-42a-302;
      • (ii) the energy assessment bonds and refunding assessment bonds:
        • (A) that a local entity has issued or intends to issue; or
        • (B) with respect to the creation of an energy assessment area; and
      • (iii) assessments levied on property in the energy assessment area; and
    • (b) a court may not inquire into and a person may not bring a suit to enjoin or challenge:
      • (i) the issuance or payment of an energy assessment bond or a refunding assessment bond;
      • (ii) the payment under the written agreement between a local entity and a third-party lender described in Section 11-42a-302;
      • (iii) the levy, collection, or enforcement of an assessment;
      • (iv) the legality of an energy assessment bond, a refunding assessment bond, or a written agreement between a local entity and a third-party lender described in Section 11-42a-302; or
      • (v) an assessment.
  • (6)
    • (a) A person may bring a claim of misuse of assessment funds through a mandamus action regardless of the expiration of the 30-day period described in Subsection (2)(b).
    • (b) This section does not prohibit the filing of criminal charges against or the prosecution of a party for the misuse of assessment funds.




Download our app to see the most-to-date content.