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Utah law currently allows landowners to form a "preliminary municipality" — a transitional legal step toward creating a new town — by filing a feasibility request with the state; this bill would close that process to new applicants after February 1, 2026, while still allowing anyone who filed a feasibility request by that date to continue moving forward under existing rules. For those in-progress preliminary municipalities, the bill would add new requirements: the initial landowners must agree in writing to fully compensate the county for any damage their development causes to county property or infrastructure before the area can transition into a town, the preliminary municipality must continue honoring any development agreement the landowners had with the county before filing, and it could not modify or end those agreement terms without county approval. The final petition to transition into a town would also need to certify that all such damages have been assessed and paid in full, and landowners would have to agree to accept liability for any related damage discovered after the transition. These changes would apply retroactively back to February 1, 2026.