(1) As used in this section:
(a) "Governing body" means the governing body of the development authority that created a public infrastructure district.
(b) "Grandfathered public infrastructure district" means a public infrastructure district:
(i) created by the Point of the Mountain State Land Authority created in Section 11-59-201; and
(ii) that is not a specified public infrastructure district.
(c) "Specified public infrastructure district" means a public infrastructure district created by a development authority on or after May 6, 2026.
(2) Except as provided in Subsection (4), the governing document of a specified public infrastructure district shall require that a majority of the board members of the specified public infrastructure district be appointed by the governing body.
(3) Beginning May 6, 2026, a grandfathered public infrastructure district shall modify the public infrastructure district's governing document by no later than July 1, 2026, to ensure that at least 40% of the public infrastructure board's seats are appointed by the governing body.
(4) The governing document of a specified public infrastructure district may provide for a different board structure than described in Subsection (2) if:
(a) the governing body finds that a compelling reason exists to reduce the number of appointments made by the governing body;
(b) the board and the governing body both make a 2/3 vote to modify the governing document to reduce the number of appointments made by the governing body; and
(c) the governing body retains the ability to appoint a minimum of 40% of the board.
(5) A public infrastructure district created by a development authority that issues a bond may only issue additional bonds or create new debt:
(a) in accordance with the governing document approved by the governing body; or
(b) if a majority of the public infrastructure district's board members are appointed by the governing body.