Utah Lawmakers Consider Repeal of Law Allowing New Towns on Undeveloped Land
Utah House Speaker Mike Schultz has expressed openness to repealing or substantially changing a 2024 state law that allows qualifying landowners to establish preliminary municipalities on certain undeveloped, unincorporated land.
In an interview with Utah News Dispatch published October 12, 2026, Schultz, a Republican representing Hooper, said lawmakers should consider a full repeal of Senate Bill 258 (SB 258) during the 2027 legislative session, which begins in January.
“There should be a broader discussion, and I think, you know, a full repeal should be part of the conversation,” Schultz told Utah News Dispatch.
His comments come amid growing criticism from Wasatch County officials, who have called on state lawmakers to reconsider the law and its implications for local planning and development.
No repeal has been enacted, and the law remains in effect unless and until it is changed through the legislative process.
What SB 258 Allows
Passed during Utah’s 2024 legislative session, SB 258 amended the state’s municipal incorporation laws to create a pilot program for establishing a “preliminary municipality.”
Under the law, a qualifying area may be considered for preliminary municipal status if it meets specific requirements. Among other conditions, the proposed area must be contiguous, located outside certain restricted areas, owned by no more than three consenting parties, and at least 50% undeveloped when the application is filed.
The process includes a feasibility review and other statutory requirements. A preliminary municipality can exercise certain municipal powers and may eventually transition into an incorporated town if the relevant requirements are met.
The program was designed to provide a pathway for developing qualifying land toward eventual municipal incorporation.
Why Wasatch County Officials Want Changes
Wasatch County leaders have raised concerns about how the law could affect local planning authority, infrastructure, housing development, and accountability.
In a resolution approved in September 2026, the county called for the repeal of SB 258. County officials argued that the law could allow large development projects to move forward without meeting the same infrastructure, housing, oversight, and accountability standards they believe apply to other Utah communities.
The debate has gained attention in the Heber Valley, where development proposals have prompted questions about growth, local governance, and the responsibilities that accompany new communities.
These criticisms reflect the county’s position on the law. The potential consequences of any repeal or amendment will depend on the specific legislative changes ultimately adopted.
Governor Cox Leaves Room for Changes
Governor Spencer Cox has also indicated openness to reviewing options related to the law.
In a statement provided to Utah News Dispatch, Cox emphasized the state’s commitment to housing affordability and said Utah should explore available options to help residents afford to live and raise families in the state.
His statement did not explicitly endorse a full repeal. Instead, it left room for further discussion about potential changes.
Schultz said lawmakers would consider whether the law should be substantially modified or repealed entirely as they weigh concerns about local planning authority and the state’s broader housing goals.
What This Could Mean for Property Owners and Developers
Any legislative changes to SB 258 could affect how qualifying land in unincorporated areas is developed and how new communities are established.
For landowners and developers, changes could alter the process for seeking preliminary municipal status, depending on the final legislation. Homeowners and residents in areas experiencing rapid growth may also be affected by future decisions concerning infrastructure, services, local governance, and development standards.
However, the direction and extent of any changes remain uncertain. Until lawmakers enact new legislation, SB 258 continues to govern the preliminary municipality process.
People considering land purchases or development projects should review the current law and consult the relevant county planning department or a qualified land-use professional before making decisions based on potential legislative changes.
What Happens Next?
Utah lawmakers are expected to discuss SB 258 during the legislative session beginning in January 2027. A full repeal is one option raised by Schultz, but amendments or other changes may also be considered.
For updates, readers can follow Utah News Dispatch’s legislative coverage, review bill information through the Utah Legislature, and monitor announcements from Wasatch County and other relevant local authorities.