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title-17b•Title 17B — Limited Purpose Local Government Entities - Special Districts
title-17bUtah Code tit. 17BCodeJan 1, 1900
As used in this title:
(1) "Appointing authority" means the person or body authorized to make an appointment to the board of trustees.
(2) "Basic special district":
(a) means a special district that is not a specialized special district; and
(b) includes an entity that was, under the law in effect before April 30, 2007, created and operated as a special district, as defined under the law in effect before April 30, 2007.
(3) "Bond" means:
(a) a written obligation to repay borrowed money, whether denominated a bond, note, warrant, certificate of indebtedness, or otherwise; and
(b) a lease agreement, installment purchase agreement, or other agreement that:
(i) includes an obligation by the district to pay money; and
(ii) the district's board of trustees, in the board's discretion, treats as a bond for purposes of Title 11, Chapter 14, Local Government Bonding Act, or Title 11, Chapter 27, Utah Refunding Bond Act.
(4) "Cemetery maintenance district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 1, Cemetery Maintenance District Act, including an entity that was created and operated as a cemetery maintenance district under the law in effect before April 30, 2007.
(5) "Drainage district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 2, Drainage District Act, including an entity that was created and operated as a drainage district under the law in effect before April 30, 2007.
(6) "Facility" or "facilities" includes any structure, building, system, land, water right, water, or other real or personal property required to provide a service that a special district is authorized to provide, including any related or appurtenant easement or right-of-way, improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
(7) "Fire protection district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 3, Fire Protection District Act, including an entity that was created and operated as a fire protection district under the law in effect before April 30, 2007.
(8) "General obligation bond":
(a) means a bond that is directly payable from and secured by ad valorem property taxes that are:
(i) levied:
(A) by the district that issues the bond; and
(B) on taxable property within the district; and
(ii) in excess of the ad valorem property taxes of the district for the current fiscal year; and
(b) does not include:
(i) a short-term bond;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
(9) "Improvement assurance" means a surety bond, letter of credit, cash, or other security:
(a) to guarantee the proper completion of an improvement;
(b) that is required before a special district may provide a service requested by a service applicant; and
(c) that is offered to a special district to induce the special district before construction of an improvement begins to:
(i) provide the requested service; or
(ii) commit to provide the requested service.
(10) "Improvement assurance warranty" means a promise that the materials and workmanship of an improvement:
(a) comply with standards adopted by a special district; and
(b) will not fail in any material respect within an agreed warranty period.
(11) "Improvement district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 4, Improvement District Act, including an entity that was created and operated as a county improvement district under the law in effect before April 30, 2007.
(12) "Infrastructure financing district" means a special district that operates under and is subject to the provisions of this chapter and Title 17D, Chapter 5, Infrastructure Financing District Act.
(13) "Irrigation district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 5, Irrigation District Act, including an entity that was created and operated as an irrigation district under the law in effect before April 30, 2007.
(14) "Metropolitan water district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 6, Metropolitan Water District Act, including an entity that was created and operated as a metropolitan water district under the law in effect before April 30, 2007.
(15) "Mosquito abatement district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 7, Mosquito Abatement District Act, including an entity that was created and operated as a mosquito abatement district under the law in effect before April 30, 2007.
(16) "Municipal" means of or relating to a municipality.
(17) "Municipality" means a city or town.
(18) "Municipal services district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District Act.
(19) "Person" means an individual, corporation, partnership, organization, association, trust, governmental agency, or other legal entity.
(20) "Political subdivision" means a county, city, town, special district under this title, special service district under Title 17D, Chapter 1, Special Service District Act, an entity created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal Cooperation Act, or any other governmental entity designated in statute as a political subdivision of the state.
(21) "Private," with respect to real property, means not owned by the United States or any agency of the federal government, the state, a county, or a political subdivision.
(22) "Public entity" means:
(a) the United States or an agency of the United States;
(b) the state or an agency of the state;
(c) a political subdivision of the state or an agency of a political subdivision of the state;
(d) another state or an agency of that state; or
(e) a political subdivision of another state or an agency of that political subdivision.
(23) "Public transit district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 8, Public Transit District Act, including an entity that was created and operated as a public transit district under the law in effect before April 30, 2007.
(24) "Revenue bond":
(a) means a bond payable from designated taxes or other revenues other than the special district's ad valorem property taxes; and
(b) does not include:
(i) an obligation constituting an indebtedness within the meaning of an applicable constitutional or statutory debt limit;
(ii) a tax and revenue anticipation bond; or
(iii) a special assessment bond.
(25) "Rules of order and procedure" means a set of rules that govern and prescribe in a public meeting:
(a) parliamentary order and procedure;
(b) ethical behavior; and
(c) civil discourse.
(26) "Service applicant" means a person who requests that a special district provide a service that the special district is authorized to provide.
(27) "Service area" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 9, Service Area Act, including an entity that was created and operated as a county service area or a regional service area under the law in effect before April 30, 2007.
(28) "Short-term bond" means a bond that is required to be repaid during the fiscal year in which the bond is issued.
(29) "Special assessment" means an assessment levied against property to pay all or a portion of the costs of making improvements that benefit the property.
(30) "Special assessment bond" means a bond payable from special assessments.
(31) "Special district" means a limited purpose local government entity, as described in Section 17B-1-103, that operates under, is subject to, and has the powers described in:
(a) this chapter; or
(b)
(i) this chapter; and
(ii)
(A) Chapter 2a, Part 1, Cemetery Maintenance District Act;
(B) Chapter 2a, Part 2, Drainage District Act;
(C) Chapter 2a, Part 3, Fire Protection District Act;
(D) Chapter 2a, Part 4, Improvement District Act;
(E) Chapter 2a, Part 5, Irrigation District Act;
(F) Chapter 2a, Part 6, Metropolitan Water District Act;
(G) Chapter 2a, Part 7, Mosquito Abatement District Act;
(H) Chapter 2a, Part 8, Public Transit District Act;
(I) Chapter 2a, Part 9, Service Area Act;
(J) Chapter 2a, Part 10, Water Conservancy District Act; or
(K) Chapter 2a, Part 11, Municipal Services District Act.
(32) "Specialized special district" means a special district that is a cemetery maintenance district, a drainage district, a fire protection district, an improvement district, an irrigation district, a metropolitan water district, a mosquito abatement district, a public transit district, a service area, a water conservancy district, or a municipal services district.
(33) "Taxable value" means the taxable value of property as computed from the most recent equalized assessment roll for county purposes.
(34) "Tax and revenue anticipation bond" means a bond:
(a) issued in anticipation of the collection of taxes or other revenues or a combination of taxes and other revenues; and
(b) that matures within the same fiscal year as the fiscal year in which the bond is issued.
(35) "Unincorporated" means not included within a municipality.
(36) "Water conservancy district" means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy District Act, including an entity that was created and operated as a water conservancy district under the law in effect before April 30, 2007.
(37) "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain, tunnel, power plant, and any facility, improvement, or property necessary or convenient for supplying or treating water for any beneficial use, and for otherwise accomplishing the purposes of a special district.
(1) A special district:
(a) is:
(i) a body corporate and politic with perpetual succession;
(ii) a quasi-municipal corporation;
(iii) a political subdivision of the state; and
(iv) separate and distinct from and independent of any other political subdivision of the state; and
(b) may sue and be sued.
(2) A special district may:
(a) acquire, by any lawful means, or lease any real property, personal property, or a groundwater right necessary or convenient to the full exercise of the district's powers;
(b) acquire, by any lawful means, any interest in real property, personal property, or a groundwater right necessary or convenient to the full exercise of the district's powers;
(c) subject to Subsection (8), transfer an interest in or dispose of any property or interest described in Subsections (2)(a) and (b);
(d) acquire or construct works, facilities, and improvements necessary or convenient to the full exercise of the district's powers, and operate, control, maintain, and use those works, facilities, and improvements;
(e) borrow money and incur indebtedness for any lawful district purpose;
(f) issue bonds, including refunding bonds:
(i) for any lawful district purpose; and
(ii) as provided in and subject to Part 11, Special District Bonds;
(g) levy and collect property taxes:
(i) for any lawful district purpose or expenditure, including to cover a deficit resulting from tax delinquencies in a preceding year; and
(ii) as provided in and subject to Part 10, Special District Property Tax Levy;
(h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent domain property necessary to the exercise of the district's powers;
(i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
(j)
(i) impose fees or other charges for commodities, services, or facilities provided by the district, to pay some or all of the district's costs of providing the commodities, services, and facilities, including the costs of:
(A) maintaining and operating the district;
(B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
(C) issuing bonds and paying debt service on district bonds; and
(D) providing a reserve established by the board of trustees; and
(ii) take action the board of trustees considers appropriate and adopt regulations to assure the collection of all fees and charges that the district imposes;
(k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's property to district facilities in order for the district to provide service to the property;
(l) enter into a contract that the special district board of trustees considers necessary, convenient, or desirable to carry out the district's purposes, including a contract:
(i) with the United States or any department or agency of the United States;
(ii) to indemnify and save harmless; or
(iii) to do any act to exercise district powers;
(m) purchase supplies, equipment, and materials;
(n) encumber district property upon terms and conditions that the board of trustees considers appropriate;
(o) exercise other powers and perform other functions that are provided by law;
(p) construct and maintain works and establish and maintain facilities, including works or facilities:
(i) across or along any public street or highway, subject to Subsection (3) and if the district:
(A) promptly restores the street or highway, as much as practicable, to its former state of usefulness; and
(B) does not use the street or highway in a manner that completely or unnecessarily impairs the usefulness of it;
(ii) in, upon, or over any vacant public lands that are or become the property of the state, including school and institutional trust lands, as defined in Section 53C-1-103, if the director of the School and Institutional Trust Lands Administration, acting under Sections 53C-1-102 and 53C-1-303, consents; or
(iii) across any stream of water or watercourse, subject to Section 73-3-29;
(q) perform any act or exercise any power reasonably necessary for the efficient operation of the special district in carrying out its purposes;
(r)
(i) except for a special district described in Subsection (2)(r)(ii), designate an assessment area and levy an assessment on land within the assessment area, as provided in Title 11, Chapter 42, Assessment Area Act; or
(ii) for a special district created to assess a groundwater right in a critical management area described in Subsection 17B-1-202(1), designate an assessment area and levy an assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right to facilitate a groundwater management plan;
(s) contract with another political subdivision of the state to allow the other political subdivision to use the district's surplus water or capacity or have an ownership interest in the district's works or facilities, upon the terms and for the consideration, whether monetary or nonmonetary consideration or no consideration, that the district's board of trustees considers to be in the best interests of the district and the public;
(t) upon the terms and for the consideration, whether monetary or nonmonetary consideration or no consideration, that the district's board of trustees considers to be in the best interests of the district and the public, agree:
(i)
(A) with another political subdivision of the state; or
(B) with a public or private owner of property on which the district has a right-of-way or adjacent to which the district owns fee title to property; and
(ii) to allow the use of property:
(A) owned by the district; or
(B) on which the district has a right-of-way; and
(u) if the special district receives, as determined by the special district board of trustees, adequate monetary or nonmonetary consideration in return:
(i) provide services or nonmonetary assistance to a nonprofit entity;
(ii) waive fees required to be paid by a nonprofit entity; or
(iii) provide monetary assistance to a nonprofit entity, whether from the special district's own funds or from funds the special district receives from the state or any other source.
(3) With respect to a special district's use of a street or highway, as provided in Subsection (2)(p)(i):
(a) the district shall comply with the reasonable rules and regulations of the governmental entity, whether state, county, or municipal, with jurisdiction over the street or highway, concerning:
(i) an excavation and the refilling of an excavation;
(ii) the relaying of pavement; and
(iii) the protection of the public during a construction period; and
(b) the governmental entity, whether state, county, or municipal, with jurisdiction over the street or highway:
(i) may not require the district to pay a license or permit fee or file a bond; and
(ii) may require the district to pay a reasonable inspection fee.
(4)
(a) A special district may:
(i) acquire, lease, or construct and operate electrical generation, transmission, and distribution facilities, if:
(A) the purpose of the facilities is to harness energy that results inherently from the district's operation of a project or facilities that the district is authorized to operate or from the district providing a service that the district is authorized to provide;
(B) the generation of electricity from the facilities is incidental to the primary operations of the district; and
(C) operation of the facilities will not hinder or interfere with the primary operations of the district; and
(ii)
(A) use electricity generated by the facilities described in Subsection (4)(a)(i); or
(B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric utility or municipality with an existing system for distributing electricity.
(b) A district may not act as a retail distributor or seller of electricity.
(c) Revenue that a district receives from the sale of electricity from electrical generation facilities the district owns or operates under this section may be used for any lawful district purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or constructing the facilities.
(5) A special district may adopt and, after adoption, alter a corporate seal.
(6)
(a) Each special district shall register and maintain the special district's registration as a limited purpose entity, in accordance with Section 67-1a-15.
(b) A special district that fails to comply with Subsection (6)(a) or Section 67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.
(7)
(a) As used in this Subsection (7), "knife" means a cutting instrument that includes a sharpened or pointed blade.
(b) The authority to regulate a knife is reserved to the state except where the Legislature specifically delegates responsibility to a special district.
(c) Unless specifically authorized by the Legislature by statute, a special district may not adopt or enforce a regulation or rule pertaining to a knife.
(8) A special district that disposes of or conveys real property shall comply with Title 11, Chapter 1, Part 2, Disposal of Public Property.
(1) For purposes of this title:
(a) the owner of real property shall be:
(i) except as provided in Subsection (1)(a)(ii), the fee title owner according to the records of the county recorder on the date of the filing of the request or petition; or
(ii) for a proposed annexation under Part 4, Annexation, the lessee of military land, as defined in Section 63H-1-102, if the area proposed for annexation includes military land that is within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act; and
(b) the value of private real property shall be determined according to the last assessment before the filing of the request or petition, as determined by:
(i) the county under Title 59, Chapter 2, Part 3, County Assessment, for property subject to assessment by the county;
(ii) the State Tax Commission under Title 59, Chapter 2, Part 2, Assessment of Property, for property subject to assessment by the State Tax Commission; or
(iii) the county, for all other property.
(2) For purposes of each provision of this title that requires the owners of private real property covering a percentage of the total private land area within the proposed special district to sign a request, petition, or protest:
(a) a parcel of real property may not be included in the calculation of the required percentage unless the request or petition is signed by:
(i) except as provided in Subsection (2)(a)(ii), owners representing a majority ownership interest in that parcel; or
(ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number of owners of that parcel;
(b) the signature of a person signing a request or petition in a representative capacity on behalf of an owner is invalid unless:
(i) the person's representative capacity and the name of the owner the person represents are indicated on the request or petition with the person's signature; and
(ii) the person provides documentation accompanying the request or petition that reasonably substantiates the person's representative capacity; and
(c) subject to Subsection (2)(b), a duly appointed personal representative may sign a request or petition on behalf of a deceased owner.
(1) For purposes of this title, an owner of a groundwater right, is on the date of the filing of a groundwater right owner petition or groundwater right owner request, the owner according to:
(a) a deed recorded with the county recorder in accordance with Section 73-1-10; or
(b) a water right of record filed in the state engineer's office in accordance with Section 73-1-10.
(2) For purposes of each provision of this title that requires the owners of groundwater rights covering a percentage of the total groundwater rights within the proposed special district to sign a request, petition, or protest:
(a) a groundwater right may not be included in the calculation of the required percentage unless the request or petition is signed by:
(i) except as provided in Subsection (2)(a)(ii), owners representing a majority ownership interest in that groundwater right; or
(ii) if the groundwater right is owned by joint tenants or tenants by the entirety, 50% of the number of owners of that groundwater right;
(b) the signature of a person signing a request or petition in a representative capacity on behalf of an owner is invalid unless:
(i) the person's representative capacity and the name of the owner the person represents are indicated on the request or petition with the person's signature; and
(ii) the person provides documentation accompanying the request or petition that reasonably substantiates the person's representative capacity; and
(c) subject to Subsection (2)(b), a duly appointed personal representative may sign a request or petition on behalf of the estate of a deceased owner.
(3) For an election by groundwater right owners described in this title, each owner of a groundwater right is entitled to cast one vote.
(1)
(a) The name of each special district created on or after May 1, 2000, shall comply with Section 17-60-103.
(b) The board of each special district affected by Section 17-60-103 shall ensure that after January 1, 2005, the special district name complies with the requirements of Section 17-60-103.
(2) The name of a special district created after April 30, 2007, may not include the name of a county or municipality.
(3) The name of a special district may include words descriptive of the type of service that the district provides.
(4) The name of an infrastructure financing district shall comply with Subsection 17B-1-208(1)(b)(ii).
(5)
(a) A special district board may change the name of that special district as provided in this Subsection (5).
(b) To initiate a name change, the special district board shall:
(i) hold a public hearing on the proposed name change;
(ii) adopt a resolution approving the name change; and
(iii) file with the lieutenant governor a notice of an impending name change, as defined in Section 67-1a-6.7, that meets the requirements of Subsection 67-1a-6.7(3).
(c) Upon the lieutenant governor's issuance of a certificate of name change under Section 67-1a-6.7, the special district board shall:
(i) if the special district is located within the boundary of a single county, submit to the recorder of that county:
(A) the original:
(I) notice of an impending name change; and
(II) certificate of name change; and
(B) a certified copy of the resolution approving the name change; or
(ii) if the special district is located within the boundaries of more than a single county:
(A) submit to the recorder of one of those counties:
(I) the original of the documents listed in Subsections (5)(c)(i)(A)(I) and (II); and
(II) a certified copy of the resolution approving the name change; and
(B) submit to the recorder of each other county:
(I) a certified copy of the documents listed in Subsections (5)(c)(i)(A)(I) and (II); and
(II) a certified copy of the resolution approving the name change.
(d)
(i) A name change under this Subsection (5) becomes effective upon the lieutenant governor's issuance of a certificate of name change under Section 67-1a-6.7.
(ii) Notwithstanding Subsection (5)(d)(i), the special district may not operate under the new name until the documents listed in Subsection (5)(c) are recorded in the office of the recorder of each county in which the special district is located.
(1) As used in this section:
(a)
(i) "Affected entity" means each county, municipality, special district under this title, special service district, school district, interlocal cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act, and specified public utility:
(A) whose services or facilities are likely to require expansion or significant modification because of an intended use of land; or
(B) that has filed with the special district a copy of the general or long-range plan of the county, municipality, special district, school district, interlocal cooperation entity, or specified public utility.
(ii) "Affected entity" does not include the special district that is required under this section to provide notice.
(b) "Specified public utility" means an electrical corporation, gas corporation, or telephone corporation, as those terms are defined in Section 54-2-1.
(2)
(a) If a special district under this title located in a county of the first or second class prepares a long-range plan regarding the special district's facilities proposed for the future or amends an already existing long-range plan, the special district shall, before preparing a long-range plan or amendments to an existing long-range plan, provide written notice, as provided in this section, of the special district's intent to prepare a long-range plan or to amend an existing long-range plan.
(b) Each notice under Subsection (2)(a) shall:
(i) indicate that the special district intends to prepare a long-range plan or to amend a long-range plan, as the case may be;
(ii) describe or provide a map of the geographic area that will be affected by the long-range plan or amendments to a long-range plan;
(iii) be:
(A) sent to each county in whose unincorporated area and each municipality in whose boundaries is located the land on which the proposed long-range plan or amendments to a long-range plan are expected to indicate that the proposed facilities will be located;
(B) sent to each affected entity;
(C) sent to the Utah Geospatial Resource Center created in Section 63A-16-505;
(D) sent to each association of governments, established pursuant to an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of which a county or municipality described in Subsection (2)(b)(iii)(A) is a member; and
(E) published for the special district, as a class A notice under Section 63G-30-102, for at least 14 days;
(iv) with respect to the notice to counties and municipalities described in Subsection (2)(b)(iii)(A) and affected entities, invite them to provide information for the special district to consider in the process of preparing, adopting, and implementing the long-range plan or amendments to a long-range plan concerning:
(A) impacts that the use of land proposed in the proposed long-range plan or amendments to a long-range plan may have on the county, municipality, or affected entity; and
(B) uses of land that the county, municipality, or affected entity is planning or considering that may conflict with the proposed long-range plan or amendments to a long-range plan; and
(v) include the address of an Internet website, if the special district has one, and the name and telephone number of an individual where more information can be obtained concerning the special district's proposed long-range plan or amendments to a long-range plan.
(3)
(a) Except as provided in Subsection (3)(d), each special district intending to acquire real property in a county of the first or second class for the purpose of expanding the special district's infrastructure or other facilities used for providing the services that the special district is authorized to provide shall provide written notice, as provided in this Subsection (3), of the special district's intent to acquire the property if the intended use of the property is contrary to:
(i) the anticipated use of the property under the county or municipality's general plan; or
(ii) the property's current zoning designation.
(b) Each notice under Subsection (3)(a) shall:
(i) indicate that the special district intends to acquire real property;
(ii) identify the real property; and
(iii) be sent to:
(A) each county in whose unincorporated area and each municipality in whose boundaries the property is located; and
(B) each affected entity.
(c) A notice under this Subsection (3) is a protected record as provided in Subsection 63G-2-305(8).
(d)
(i) The notice requirement of Subsection (3)(a) does not apply if the special district previously provided notice under Subsection (2) identifying the general location within the municipality or unincorporated part of the county where the property to be acquired is located.
(ii) If a special district is not required to comply with the notice requirement of Subsection (3)(a) because of application of Subsection (3)(d)(i), the special district shall provide the notice specified in Subsection (3)(a) as soon as practicable after the special district's acquisition of the real property.
If a special district records a lien upon real property or a groundwater right for an unpaid assessment by the owner and the owner then pays the assessment in full, including, subject to Section 17B-1-902.1, any interest and administrative costs, the special district recording the lien shall record the release of the lien.
(1) As used in this section, "design professional services" means the same as that term is defined in Section 63G-6a-103.
(2) The procurement of design professional services is governed by Title 63G, Chapter 6a, Part 15, Design Professional Services.
Each special district shall comply with Title 52, Chapter 3, Prohibiting Employment of Relatives.
(1)
(a) If a special district wishes to impose impact fees, the board of trustees of the special district shall:
(i) prepare a proposed impact fee resolution that meets the requirements of Title 11, Chapter 36a, Impact Fees Act;
(ii) make a copy of the impact fee resolution available to the public at least 10 days before the date of the public hearing and hold a public hearing on the proposed impact fee resolution; and
(iii) provide reasonable notice of the public hearing for the special district, as a class A notice under Section 63G-30-102, for at least 10 days before the date of the hearing.
(b) After the public hearing, the board of trustees may:
(i) adopt the impact fee resolution as proposed;
(ii) amend the impact fee resolution and adopt or reject it as amended; or
(iii) reject the resolution.
(2) The special district's board of trustees may enact a resolution establishing stricter notice requirements than those required by this section.
(3)
(a) Proof that notice required by this section was given is prima facie evidence that notice was properly given.
(b) If notice given under authority of this section is not challenged within 30 days from the date of the meeting for which the notice was given, the notice is considered adequate and proper.
(1) Each special district with an annual operating budget of $50,000 or more shall obtain liability insurance as considered appropriate by the special district board.
(2) Each special district with an annual operating budget of less than $50,000 is not required to obtain liability insurance, but liability insurance is encouraged, as considered appropriate by the special district board.
Unless otherwise specifically provided by statute, property taxes levied by a special district shall constitute a lien on the property on a parity with and collectible at the same time and in the same manner as general county taxes that are a lien on the property.
(1) Each special district created before April 30, 2007 under the law in effect at the time of the creation is declared to be validly and legally constituted.
(2) An entity created and operating under the law in effect before April 30, 2007 as a special district but not as a cemetery maintenance district, drainage district, fire protection district, improvement district, irrigation district, metropolitan water district, mosquito abatement district, public transit district, service area, or water conservancy district shall continue on and after April 30, 2007 as a special district subject to the provisions of this chapter but not subject to the provisions of Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(3) Nothing in this title may be construed to prohibit or limit a special district from providing on or after April 30, 2007 a service that it was authorized before that date to provide.
All property and assets of a special district are exempt from taxation and exempt from execution.
A court's invalidation of any provision of this title may not be considered to affect the validity of any other provision of this title.
(1) As used in this section:
(a) "Hookup fee" means a fee for the installation and inspection of any pipe, line, meter, or appurtenance to connect to a special district water, sewer, storm water, power, or other utility system.
(b) "Impact fee" has the same meaning as defined in Section 11-36a-102.
(c) "Specified public agency" means:
(i) the state;
(ii) a school district; or
(iii) a charter school.
(d) "State" includes any department, division, or agency of the state.
(2) A special district may not impose or collect a hookup fee that exceeds the reasonable cost of installing and inspecting the pipe, line, meter, or appurtenance to connect to the special district water, sewer, storm water, power, or other utility system.
(3)
(a) A specified public agency intending to develop its land shall submit a development plan and schedule to each special district from which the specified public agency anticipates the development will receive service:
(i) as early as practicable in the development process, but no later than the commencement of construction; and
(ii) with sufficient detail to enable the special district to assess:
(A) the demand for public facilities listed in Subsections 11-36a-102(17)(a), (b), (c), (d), (e), and (g) caused by the development;
(B) the amount of any hookup fees, or impact fees or substantive equivalent;
(C) any credit against an impact fee; and
(D) the potential for waiving an impact fee.
(b) The special district shall respond to a specified public agency's submission under Subsection (3)(a) with reasonable promptness in order to allow the specified public agency to consider information the special district provides under Subsection (3)(a)(ii) in the process of preparing the budget for the development.
(4) Upon a specified public agency's submission of a development plan and schedule as required in Subsection (3) that complies with the requirements of that subsection, the specified public agency vests in the special district's hookup fees and impact fees in effect on the date of submission.
(1)
(a) If a land use authority consults with or allows a special district to participate in any way in a land use authority's land use development review or approval process, the special district shall comply with Title 10, Chapter 20, Municipal Land Use, Development, and Management Act, or Title 17, Chapter 79, County Land Use, Development, and Management Act, as applicable to the land use authority.
(b) The compliance required under Subsection (1)(a) is not limited to the special district's participation in the land use authority's review or approval process.
(2)
(a) Before a special district begins providing a service to a service applicant, the service applicant shall provide the special district with an improvement assurance and an improvement assurance warranty.
(b) A special district that has not received an improvement assurance and an improvement assurance warranty from a service applicant may not begin providing service to the service applicant.
(1) A special district may impose an exaction on a service received by an applicant, including, subject to Subsection (2), an exaction for a water interest if:
(a) the special district establishes that a legitimate special district interest makes the exaction essential; and
(b) the exaction is roughly proportionate, both in nature and extent, to the impact of the proposed service on the special district.
(2)
(a)
(i) Subject to the requirements of this Subsection (2), a special district shall base an exaction for a water interest on the culinary water authority's established calculations of projected water interest requirements.
(ii) Except as described in Subsection (2)(a)(iii), a culinary water authority shall base an exaction for a culinary water interest on:
(A) consideration of the system-wide minimum sizing standards established for the culinary water authority by the Division of Drinking Water in accordance with Section 19-4-114; and
(B) the number of equivalent residential connections associated with the culinary water demand for each specific development proposed in the development's land use application, applying lower exactions for developments with lower equivalent residential connections as demonstrated by at least five years of usage data for like land uses within the special district.
(iii) A special district may impose an exaction for a culinary water interest that results in less water being exacted than would otherwise be exacted under Subsection (2)(a)(ii) if the special district, at the special district's sole discretion, determines there is good cause to do so.
(iv) A special district shall make public the methodology used to comply with Subsection (2)(a)(ii)(B). A service applicant may appeal to the special district's governing body an exaction calculation used by the special district under Subsection (2)(a)(ii). A service applicant may present data and other information that illustrates a need for an exaction recalculation and the special district's governing body shall respond with due process.
(v) If requested by a service applicant, the culinary authority shall provide the basis for the culinary water authority's calculations described in Subsection (2)(a)(i).
(b)
(i) A special district may not impose an exaction for a water interest if:
(A) the culinary water authority's existing available water interests exceed the water interests needed to meet the reasonable future water requirement of the public; or
(B) the special district or the special district's culinary water authority does not have a written plan in accordance with Subsection (2)(b)(ii).
(ii) Beginning on January 1, 2028, a special district shall determine the special district's water interests needed to meet the reasonable future water requirement of the public by completing a written plan described in Subsection 73-1-4(2)(f).
(3)
(a) If a special district plans to dispose of surplus real property that was acquired under this section and has been owned by the special district for less than 15 years, the special district shall offer to reconvey the surplus real property, without receiving additional consideration, first to a person who granted the real property to the special district.
(b) The person described in Subsection (3)(a) shall, within 90 days after the day on which a special district makes an offer under Subsection (3)(a), accept or reject the offer.
(c) If a person rejects an offer under Subsection (3)(b), the special district may sell the real property.
(1) A special district may not impose or collect:
(a) an application fee that exceeds the reasonable cost of processing the application; or
(b) an inspection or review fee that exceeds the reasonable cost of performing an inspection or review.
(2)
(a) Upon request by a service applicant who is charged a fee or an owner of residential property upon which a fee is imposed, a special district shall provide a statement of each itemized fee and calculation method for each fee.
(b) If an applicant who is charged a fee or an owner of residential property upon which a fee is imposed submits a request for a statement of each itemized fee no later than 30 days after the day on which the applicant or owner pays the fee, the special district shall, no later than 10 days after the day on which the request is received, provide or commit to provide within a specific time:
(i) for each fee, any studies, reports, or methods relied upon by the special district to create the calculation method described in Subsection (2)(a);
(ii) an accounting of each fee paid;
(iii) how each fee will be distributed by the special district; and
(iv) information on filing a fee appeal through the process described in Subsection (2)(c).
(c)
(i) A special district shall establish an impartial fee appeal process to determine whether a fee reflects only the reasonable estimated cost of delivering the service for which the fee was paid.
(ii) A party to a fee appeal described in Subsection (2)(c)(i) may petition for judicial review of the special district's final decision.
(d) The reasonable estimated cost of delivering a service by a special district that provides water services includes costs for water conservation, and a water conservation effort, as an element in determining the rate charged for a block unit of water as provided in Section 73-10-32.5.
(3) A special district may not impose on or collect from a public agency a fee associated with the public agency's development of the public agency's land other than:
(a) subject to Subsection (1), a hookup fee; or
(b) an impact fee, as defined in Section 11-36a-102 and subject to Section 11-36a-402, for a public facility listed in Subsection 11-36a-102(17)(a), (b), (c), (d), (e), or (g).
(4) This section does not apply to a fee or fee increase that is equal to the amount needed to pay a fee imposed on a special district under Sections 19-4-116 and 73-10g-607.
As used in this part:
(1) "Applicable area" means:
(a) for a county, the unincorporated area of the county that is included within the proposed special district; or
(b) for a municipality, the area of the municipality that is included within the proposed special district.
(2) "Governing body" means:
(a) for a county or municipality, the legislative body of the county or municipality; and
(b) for a special district, the board of trustees of the special district.
(3) "Groundwater right owner petition" means a petition under Subsection 17B-1-203(1)(c).
(4) "Groundwater right owner request" means a request under Section 17B-1-204 that is signed by owners of water rights as provided in Subsection 17B-1-204(2)(b)(ii).
(5) "Initiating special district" means a special district that adopts a resolution proposing the creation of a special district under Subsection 17B-1-203(1)(f).
(6) "Petition" means a petition under Subsection 17B-1-203(1)(a), (b), (c), or (d).
(7) "Property owner petition" means a petition under Subsection 17B-1-203(1)(a).
(8) "Property owner request" means a request under Section 17B-1-204 that is signed by owners of real property as provided in Subsection 17B-1-204(2)(b)(i).
(9) "Registered voter request" means a request under Section 17B-1-204 that is signed by registered voters as provided in Subsection 17B-1-204(2)(b)(iii).
(10) "Registered voter petition" means a petition under Subsection 17B-1-203(1)(b).
(11) "Request" means a request as described in Section 17B-1-204.
(12) "Responsible body" means the governing body of:
(a) the municipality in which the proposed special district is located, if the petition or resolution proposes the creation of a special district located entirely within a single municipality;
(b) the county in which the proposed special district is located, if the petition or resolution proposes the creation of a special district located entirely within a single county and all or part of the proposed special district is located within:
(i) the unincorporated part of the county; or
(ii) more than one municipality within the county;
(c) if the petition or resolution proposes the creation of a special district located within more than one county, the county whose boundaries include more of the area of the proposed special district than is included within the boundaries of any other county; or
(d) the initiating special district, if a resolution proposing the creation of a special district is adopted under Subsection 17B-1-203(1)(f).
(13) "Responsible clerk" means:
(a) except as provided in Subsection (13)(b), the clerk of the county or the clerk or recorder of the municipality whose legislative body is the responsible body; or
(b) for the proposed creation of an infrastructure financing district, the clerk of the county in which the majority of the acreage within the boundary of the proposed infrastructure financing district is located.
(1)
(a) A special district may be created as provided in this part to provide within its boundaries service consisting of:
(i) the operation of an airport;
(ii) the operation of a cemetery;
(iii) fire protection, paramedic, and emergency services, including consolidated 911 and emergency dispatch services;
(iv) garbage collection and disposal;
(v) health care, including health department or hospital service;
(vi) the operation of a library;
(vii) abatement or control of mosquitos and other insects;
(viii) the operation of parks or recreation facilities or services;
(ix) the operation of a sewage system;
(x) the operation of a propane system;
(xi) the construction and maintenance of a right-of-way, including:
(A) a curb;
(B) a gutter;
(C) a sidewalk;
(D) a street;
(E) a road;
(F) a water line;
(G) a sewage line;
(H) a storm drain;
(I) an electricity line;
(J) a communications line;
(K) a natural gas line; or
(L) street lighting;
(xii) transportation, including public transit and providing streets and roads;
(xiii) the operation of a system, or one or more components of a system, for the collection, storage, retention, control, conservation, treatment, supplying, distribution, or reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether the system is operated on a wholesale or retail level or both;
(xiv) in accordance with Subsection (1)(c), the acquisition or assessment of a groundwater right for the development and execution of a groundwater management plan in cooperation with and approved by the state engineer in accordance with Section 73-5-15;
(xv) law enforcement service;
(xvi) subject to Subsection (1)(b), the underground installation of an electric utility line or the conversion to underground of an existing electric utility line;
(xvii) the control or abatement of earth movement or a landslide;
(xviii) the operation of animal control services and facilities;
(xix) an energy efficiency upgrade, a clean energy system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act; or
(xx) the financing of infrastructure, as provided in Chapter 2a, Part 13, Infrastructure Financing Districts.
(b) Each special district that provides the service of the underground installation of an electric utility line or the conversion to underground of an existing electric utility line shall, in installing or converting the line, provide advance notice to and coordinate with the utility that owns the line.
(c) A groundwater management plan described in Subsection (1)(a)(xiv) may include the banking of groundwater rights by a special district in a critical management area as defined in Section 73-5-15 following the adoption of a groundwater management plan by the state engineer under Section 73-5-15.
(i) A special district may manage the groundwater rights it acquires under Subsection 17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater management plan described in this Subsection (1)(c).
(ii) A groundwater right held by a special district to satisfy the provisions of a groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4.
(iii)
(A) A special district may divest itself of a groundwater right subject to a determination that the groundwater right is not required to facilitate the groundwater management plan described in this Subsection (1)(c).
(B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section 73-1-4 beginning on the date of divestiture.
(iv) Upon a determination by the state engineer that an area is no longer a critical management area as defined in Section 73-5-15, a groundwater right held by the special district is subject to Section 73-1-4.
(v) A special district created in accordance with Subsection (1)(a)(xiv) to develop and execute a groundwater management plan may hold or acquire a right to surface waters that are naturally tributary to the groundwater basin subject to the groundwater management plan if the surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
(2) As used in this section:
(a) "Operation" means all activities involved in providing the indicated service including acquisition and ownership of property reasonably necessary to provide the indicated service and acquisition, construction, and maintenance of facilities and equipment reasonably necessary to provide the indicated service.
(b) "System" means the aggregate of interrelated components that combine together to provide the indicated service including, for a sewage system, collection and treatment.
(3)
(a) A special district may not be created to provide and may not after its creation provide more than four of the services listed in Subsection (1).
(b) Subsection (3)(a) may not be construed to prohibit a special district from providing more than four services if, before April 30, 2007, the special district was authorized to provide those services.
(4)
(a) Except as provided in Subsection (4)(b), a special district may not be created to provide and may not after its creation provide to an area the same service that may already be provided to that area by another political subdivision, unless the other political subdivision gives its written consent.
(b) For purposes of Subsection (4)(a), a special district does not provide the same service as another political subdivision if it operates a component of a system that is different from a component operated by another political subdivision but within the same:
(i) sewage system; or
(ii) water system.
(5)
(a) Except for a special district in the creation of which an election is not required under Subsection 17B-1-214(3)(d), the area of a special district may include all or part of the unincorporated area of one or more counties and all or part of one or more municipalities.
(b) The area of a special district need not be contiguous.
(6) For a special district created before May 5, 2008, the authority to provide fire protection service also includes the authority to provide:
(a) paramedic service; and
(b) emergency service, including hazardous materials response service.
(7) A special district created before May 11, 2010, authorized to provide the construction and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection (1)(a)(xi) on or after May 11, 2010.
(8) A special district created before May 10, 2011, authorized to provide culinary, irrigation, sewage, or storm water services may provide a service described in Subsection (1)(a)(xiii) on or after May 10, 2011.
(9) A special district may not be created under this chapter for two years after the date on which a special district is dissolved as provided in Section 17B-1-217 if the special district proposed for creation:
(a) provides the same or a substantially similar service as the dissolved special district; and
(b) is located in substantially the same area as the dissolved special district.
(10) An infrastructure financing district may not be created unless the estimated cost of the public infrastructure and improvements to be constructed within the boundary of the proposed infrastructure financing district exceeds $1,000,000, as certified under Subsection 17B-1-208(1)(c).
(11)
(a) Except as provided in Subsection (11)(b), the inclusion of an area within an infrastructure financing district does not affect whether the area may be included within another special district.
(b) An infrastructure financing district may not include an area included within another infrastructure financing district.
(1) The process to create a special district may be initiated by:
(a) unless the proposed special district is a special district to acquire or assess a groundwater right under Section 17B-1-202, and subject to Section 17B-1-204, a petition signed by the owners of private real property that:
(i) is located within the proposed special district;
(ii) covers at least 33% of the total private land area within the proposed special district as a whole and within each applicable area;
(iii) is equal in value to at least 25% of the value of all private real property within the proposed special district as a whole and within each applicable area; and
(iv) complies with the requirements of Subsection 17B-1-205(1) and Section 17B-1-208;
(b) subject to Section 17B-1-204, a petition that:
(i) is signed by registered voters residing within the proposed special district as a whole and within each applicable area, equal in number to at least 33% of the number of votes cast in the proposed special district as a whole and in each applicable area, respectively, for the office of governor at the last regular general election prior to the filing of the petition; and
(ii) complies with the requirements of Subsection 17B-1-205(1) and Section 17B-1-208;
(c) if the proposed special district is a special district to acquire or assess a groundwater right under Section 17B-1-202, and subject to Section 17B-1-204, a petition signed by the owners of groundwater rights that:
(i) are diverted within the proposed special district;
(ii) cover at least 33% of the total amount of groundwater diverted in accordance with groundwater rights within the proposed special district as a whole and within each applicable area; and
(iii) comply with the requirements of Subsection 17B-1-205(1) and Section 17B-1-208;
(d) for the creation of an infrastructure financing district, a petition signed by 100% of the owners of surface property within the applicable area;
(e) a resolution proposing the creation of a special district, adopted by the legislative body of each county whose unincorporated area, whether in whole or in part, includes and each municipality whose boundaries include any of the proposed special district; or
(f) a resolution proposing the creation of a special district, adopted by the board of trustees of an existing special district whose boundaries completely encompass the proposed special district, if:
(i) the proposed special district is being created to provide one or more components of the same service that the initiating special district is authorized to provide; and
(ii) the initiating special district is not providing to the area of the proposed special district any of the components that the proposed special district is being created to provide.
(2)
(a) Each resolution under Subsection (1)(e) or (f) shall:
(i) describe the area proposed to be included in the proposed special district;
(ii) be accompanied by a map that shows the boundaries of the proposed special district;
(iii) describe the service proposed to be provided by the proposed special district;
(iv) if the resolution proposes the creation of a specialized special district, specify the type of specialized special district proposed to be created;
(v) explain the anticipated method of paying the costs of providing the proposed service;
(vi) state the estimated average financial impact on a household within the proposed special district;
(vii) state the number of members that the board of trustees of the proposed special district will have, consistent with the requirements of Subsection 17B-1-302(8);
(viii) for a proposed basic special district:
(A) state whether the members of the board of trustees will be elected or appointed or whether some members will be elected and some appointed, as provided in Section 17B-1-1402;
(B) if one or more members will be elected, state the basis upon which each elected member will be elected; and
(C) if applicable, explain how the election or appointment of board members will transition from one method to another based on stated milestones or events, as provided in Section 17B-1-1402;
(ix) for a proposed improvement district whose remaining area members or county members, as those terms are defined in Section 17B-2a-404, are to be elected, state that those members will be elected; and
(x) for a proposed service area that is entirely within the unincorporated area of a single county, state whether the initial board of trustees will be:
(A) the county legislative body;
(B) appointed as provided in Section 17B-1-304; or
(C) elected as provided in Section 17B-1-306.
(b) Each county or municipal legislative body adopting a resolution under Subsection (1)(e) shall, on or before the first public hearing under Section 17B-1-210, mail or deliver a copy of the resolution to the responsible body if the county or municipal legislative body's resolution is one of multiple resolutions adopted by multiple county or municipal legislative bodies proposing the creation of the same special district.
(1) Except for a petition for the creation of an infrastructure financing district, a petition may not be filed until after:
(a) a request has been filed with:
(i) the clerk of each county in whose unincorporated area any part of the proposed special district is located; and
(ii) the clerk or recorder of each municipality in which any part of the proposed special district is located; and
(b) each county and municipality with which a request under Subsection (1)(a) is filed:
(i) has adopted a resolution under Subsection 17B-1-212(1) indicating whether it will provide the requested service; or
(ii) is considered to have declined to provide the requested service under Subsection 17B-1-212(2) or (3).
(2) Each request under Subsection (1)(a) shall:
(a) ask the county or municipality to provide the service proposed to be provided by the proposed special district within the applicable area; and
(b) be signed by:
(i) unless the request is a request to create a special district to acquire or assess a groundwater right under Section 17B-1-202, the owners of private real property that:
(A) is located within the proposed special district;
(B) covers at least 10% of the total private land area within the applicable area; and
(C) is equal in value to at least 7% of the value of all private real property within the applicable area;
(ii) if the request is a request to create a special district to acquire or assess a groundwater right under Section 17B-1-202, the owners of groundwater rights that:
(A) are diverted within the proposed special district; and
(B) cover at least 10% of the amount of groundwater diverted in accordance with groundwater rights within the applicable area; or
(iii) registered voters residing within the applicable area equal in number to at least 10% of the number of votes cast in the applicable area for the office of governor at the last general election prior to the filing of the request.
(3) For purposes of Subsections (1) and (2), an area proposed to be annexed to a municipality in a petition under Section 10-2-403 filed before and still pending at the time of filing of a petition shall be considered to be part of that municipality.
(1) Each petition and request shall:
(a) indicate the typed or printed name and current residence address of each property owner, groundwater right owner, or registered voter signing the petition;
(b)
(i) if it is a property owner request or petition, indicate the address of the property as to which the owner is signing the request or petition; or
(ii) if it is a groundwater right owner request or petition, indicate the location of the diversion of the groundwater as to which the owner is signing the groundwater right owner request or petition;
(c) describe the entire area of the proposed special district;
(d) be accompanied by a map showing the boundaries of the entire proposed special district;
(e) specify the service proposed to be provided by the proposed special district;
(f) if the petition or request proposes the creation of a specialized special district, specify the type of specialized special district proposed to be created;
(g) for a proposed basic special district:
(i) state whether the members of the board of trustees will be elected or appointed or whether some members will be elected and some appointed, as provided in Section 17B-1-1402;
(ii) if one or more members will be elected, state the basis upon which each elected member will be elected; and
(iii) if applicable, explain how the election or appointment of board members will transition from one method to another based on stated milestones or events, as provided in Section 17B-1-1402;
(h) for a proposed improvement district whose remaining area members or county members, as those terms are defined in Section 17B-2a-404, are to be elected, state that those members will be elected;
(i) for a proposed service area that is entirely within the unincorporated area of a single county, state whether the initial board of trustees will be:
(i) the county legislative body;
(ii) appointed as provided in Section 17B-1-304; or
(iii) elected as provided in Section 17B-1-306;
(j) designate up to five signers of the petition or request as sponsors, one of whom shall be designated as the contact sponsor, with the mailing address and telephone number of each;
(k) if the petition or request is a groundwater right owner petition or request proposing the creation of a special district to acquire a groundwater right under Section 17B-1-202, explain the anticipated method:
(i) of paying for the groundwater right acquisition; and
(ii) of addressing blowing dust created by the reduced use of water;
(l) if the petition or request is a groundwater right owner petition or request proposing the creation of a special district to assess a groundwater right under Section 17B-1-202, explain the anticipated method:
(i) of assessing the groundwater right and securing payment of the assessment; and
(ii) of addressing blowing dust created by the reduced use of water; and
(m) for a proposed infrastructure financing district:
(i) state whether the members of the board of trustees will be elected or appointed or whether some members will be elected and some appointed;
(ii) if one or more members will be elected, state the basis upon which each elected member will be elected;
(iii) explain how appointed board member positions will transition to elected board member positions based on stated milestones or events, as provided in Section 17B-2a-1303;
(iv) state whether divisions will be established within the boundary of the infrastructure financing district so that some or all board members represent a division rather than the district at large and, if so, describe the boundary of each division; and
(v) if applicable, be accompanied by the governing document prepared according to Section 17B-2a-1303.
(2) The first page of a petition described in this section shall include the following statement in at least the same size type as the majority of the other statements on the page:
"WARNING TO SIGNERS WITH PRIVATE VOTER REGISTRATION RECORDS
If you sign this petition, your voter identification number and the date you signed may be publicly disclosed. This disclosure may occur even if you are an at-risk voter with a voter registration record that has been classified as a private record."
(3)
(a) Subject to Subsection (3)(b), a signer of a request or petition may remove or, once removed, reinstate the signer's signature at any time before the filing of the request or petition by filing a written statement for removal or reinstatement with:
(i) in the case of a request:
(A) the clerk of the county or the clerk or recorder of the municipality in whose applicable area the signer's property is located, if the request is a property owner request;
(B) the clerk of the county or the clerk or recorder of the municipality in whose applicable area the signer's groundwater diversion point is located, if the request is a groundwater right owner request; or
(C) the clerk of the county or the clerk or recorder of the municipality in whose applicable area the signer resides, if the request is a registered voter request; or
(ii) in the case of a petition, the responsible clerk.
(b) The time for a signer of a petition for the creation of an infrastructure financing district to remove or reinstate the signer's signature is any time before the petition is certified under Section 17B-1-209.
(4)
(a) A clerk of the county who receives a timely, valid written statement for removal or reinstatement from a signer of a registered voter request or registered voter petition shall use the procedures described in Subsection 20A-1-1003(3) to determine whether to remove or reinstate the individual's signature.
(b) If a municipal clerk or recorder receives a timely, valid written statement for removal or reinstatement from a signer of a registered voter request or registered voter petition, the clerk of the municipality's county shall assist the municipal clerk or recorder with determining whether to remove or reinstate the individual's signature using the procedures described in Subsection 20A-1-1003(3).
(1) Within 30 days after the filing of a request, the clerk of each county and the clerk or recorder of each municipality with which a request was filed shall:
(a) with the assistance of other county or municipal officers from whom the clerk or recorder requests assistance, determine, for the clerk or recorder's respective county or municipality, whether the request complies with the requirements of Subsections 17B-1-204(2) and 17B-1-205(1); and
(b)
(i) if the clerk or recorder determines that the request complies with the requirements:
(A) certify the request and deliver it to the legislative body of the county or municipality, as the case may be; and
(B) mail or deliver written notification of the certification to the contact sponsor; or
(ii) if the clerk or recorder determines that the request fails to comply with any of the applicable requirements, reject the request and notify the contact sponsor in writing of the rejection and the reasons for the rejection.
(2) If the clerk or recorder fails to certify or reject a request within 30 days after its filing, the request shall be considered to be certified.
(3) Each county clerk or municipal clerk or recorder shall certify or reject requests in the order in which they are filed.
(4)
(a) If the county clerk or municipal clerk or recorder rejects a request under Subsection (1)(b)(ii), the request may be amended to correct the deficiencies for which it was rejected and then refiled.
(b) A valid signature on a request that was rejected under Subsection (1)(b)(ii) may be used toward fulfilling the applicable signature requirement of the request as amended under Subsection (4)(a).
(5) Each county clerk and municipal clerk or recorder shall act in good faith in making the determinations under this section.
A signature on a request may be used toward fulfilling the signature requirement of a petition:
(1) if the request notifies the signer in conspicuous language that the signature, unless withdrawn, would also be used for purposes of a petition to create a special district; and
(2) unless the signer files a written withdrawal of the signature before the petition is filed.
(1)
(a) Each petition shall:
(i) be filed with the responsible clerk;
(ii) separately group signatures by county and municipality, so that all signatures of the owners of real property located within or of registered voters residing within each county whose unincorporated area includes and each municipality whose boundaries include part of the proposed special district are grouped separately; and
(iii)
(A) state the number of members that the board of trustees of the proposed special district will have, consistent with the requirements of Subsection 17B-1-302(8); and
(B) for a petition proposing the creation of an infrastructure financing district, include the name and address of each of the proposed board members.
(b)
(i) A petition for the creation of an infrastructure financing district shall state the name of the proposed infrastructure financing district.
(ii) The name of an infrastructure financing district shall include the phrase "infrastructure financing district."
(c) A petition for the creation of an infrastructure financing district shall be accompanied by a written statement, signed by an engineer licensed under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act, certifying that the estimated cost of the public infrastructure and improvements to be constructed in the proposed infrastructure financing district exceeds $1,000,000.
(2)
(a) A petition may not propose the creation of a special district that includes an area located within the unincorporated part of a county or within a municipality if the legislative body of that county or municipality has adopted a resolution under Subsection 17B-1-212(1) indicating that the county or municipality will provide to that area the service proposed to be provided by the proposed special district.
(b) Subsection (2)(a) does not apply if the county or municipal legislative body is considered to have declined to provide the requested service under Subsection 17B-1-212(3).
(c) Subsection (2)(a) may not be construed to prevent the filing of a petition that proposes the creation of a special district whose area excludes that part of the unincorporated area of a county or that part of a municipality to which the county or municipality has indicated, in a resolution adopted under Section 17B-1-212, it will provide the requested service.
(3) A petition may not propose the creation of a special district whose area includes:
(a) some or all of an area described in a previously filed petition that, subject to Subsection 17B-1-202(4)(b):
(i) proposes the creation of a special district to provide the same service as proposed by the later filed petition; and
(ii) is still pending at the time the later petition is filed; or
(b) some or all of an area within a political subdivision that provides in that area the same service proposed to be provided by the proposed special district.
(4) A petition may not be filed more than 12 months after a county or municipal legislative body declines to provide the requested service under Subsection 17B-1-212(1) or is considered to have declined to provide the requested service under Subsection 17B-1-212(2) or (3).
(1) No later than five days after the day on which a petition is filed, the responsible clerk shall mail a copy of the petition to the clerk of each other county and the clerk or recorder of each municipality in which any part of the proposed special district is located.
(2)
(a) No later than 35 days after the day on which a petition is filed, the clerk of each county whose unincorporated area includes and the clerk or recorder of each municipality whose boundaries include part of the proposed special district shall:
(i) with the assistance of other county or municipal officers from whom the county clerk or municipal clerk or recorder requests assistance, determine, for the clerk or recorder's respective county or municipality, whether the petition complies with the requirements of Subsection 17B-1-203(1)(a), (b), (c), or (d), as the case may be, and Subsections 17B-1-208(2), (3), and (4); and
(ii) notify the responsible clerk in writing of the clerk or recorder's determination under Subsection (2)(a)(i).
(b) The responsible clerk may rely on the determinations of other county clerks or municipal clerks or recorders under Subsection (2)(a) in making the responsible clerk's determinations and certification or rejection under Subsection (3).
(3)
(a) Within 45 days after the filing of a petition, the responsible clerk shalldetermine whether the petition complies with Subsection 17B-1-203(1)(a), (b), (c), or (d), as the case may be, Subsection 17B-1-205(1), and Section 17B-1-208.
(b)
(i) If the responsible clerk determines that the petition complies with the applicable requirements, the responsible clerk shall, within the time specified in Subsection (3)(a):
(A) certify the petition as complying with all applicable requirements;
(B) deliver the certified petition as provided in Subsection (3)(b)(iii); and
(C) mail or deliver written notification of the certification and a copy of the certified petition to the contact sponsor.
(ii) For each petition described in Subsection (3)(d)(i), the responsible clerk shall, within the time specified in Subsection (3)(a), deliver a copy of the petition to the legislative body of each county whose unincorporated area includes and each municipality whose boundaries include any of the proposed basic special district, with a notice indicating that the clerk has determined that the petition complies with all applicable requirements.
(iii)
(A) Except as provided in Subsection (3)(b)(iii)(B), the responsible clerk shall deliver the certified petition to the responsible body.
(B) For a petition proposing the creation of an infrastructure financing district, the responsible clerk shall deliver the certified petition to the lieutenant governor.
(iv) If the responsible clerk certifies a petition proposing the creation of an infrastructure financing district, the responsible clerk shall, within the time specified in Subsection (3)(a), file with the lieutenant governor, in addition to the certified petition:
(A) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(c) If the responsible clerk determines that the petition fails to comply with any of the applicable requirements, the responsible clerk shall reject the petition and notify the contact sponsor in writing of the rejection and the reasons for the rejection.
(d)
(i) A petition for which an election is not required under Subsection 17B-1-214(3) and that proposes the creation of a basic special district that has within its boundaries fewer than one residential dwelling unit per 10 acres of land may not be certified without the approval, by resolution, of the legislative body of each county whose unincorporated area includes and each municipality whose boundaries include any of the proposed special district.
(ii) Before adopting a resolution giving its approval under Subsection (3)(d)(i), a county or municipal legislative body may hold one or more public hearings on the petition.
(iii) If a petition described in Subsection (3)(d)(i) is approved as provided in that subsection, the responsible clerk shall, within 10 days after its approval:
(A) certify the petition and deliver the certified petition to the responsible body; and
(B) mail or deliver written notification of the certification to the contact sponsor.
(4) Except for a petition described in Subsection (3)(d)(i), if the responsible clerk fails to certify or reject a petition within 45 days after the petition is filed, the petition is considered to be certified.
(5)
(a) If a petition for the creation of an infrastructure financing district is considered to be certified under Subsection (4) and the responsible clerk has failed to comply with the requirements of Subsection (3)(b)(iv), the petition sponsors may notify the lieutenant governor in writing that the petition is considered to be certified.
(b) The petition sponsors notification to the lieutenant governor under Subsection (5)(a) shall be accompanied by:
(i) the petition proposing the creation of an infrastructure financing district;
(ii) a statement indicating the date that the petition was filed and certifying that the responsible clerk failed to certify the petition within the time specified in Subsection (3)(a);
(iii) a copy of the engineer's written statement described in Subsection 17B-1-208(1)(c);
(iv) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(v) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(6) The responsible clerk shall certify or reject petitions in the order in which they are filed.
(7)
(a) If the responsible clerk rejects a petition under Subsection (3)(c), the petition may be amended to correct the deficiencies for which it was rejected and then refiled.
(b) A valid signature on a petition that was rejected under Subsection (3)(c) may be used toward fulfilling the applicable signature requirement of the petition as amended under Subsection (6)(a).
(c) If a petition is amended and refiled under Subsection (6)(a) after having been rejected by the responsible clerk under Subsection (3)(c), the amended petition shall be considered as newly filed, and its processing priority shall be determined by the date on which it is refiled.
(8) The responsible clerk and each county clerk and municipal clerk or recorder shall:
(a) act in good faith in making the determinations under this section; and
(b) with the assistance of the county clerk if necessary, and as applicable, use the procedures described in Section 20A-1-1002 to determine whether a signer is a registered voter.
(1) The legislative body of each county and municipality with which a request is filed or that adopts a resolution under Subsection 17B-1-203(1)(e) and the board of trustees of each special district that adopts a resolution under Subsection 17B-1-203(1)(f) shall hold a public hearing or a set of public hearings, sufficient in number and location to ensure that no substantial group of residents of the proposed special district need travel an unreasonable distance to attend a public hearing.
(2) Each public hearing under Subsection (1) shall be held:
(a) no later than 45 days after:
(i) for a public hearing on a request, certification of a request under Subsection 17B-1-206(1)(b)(i); or
(ii) for a public hearing on a resolution, adoption of a resolution under Subsection 17B-1-203(1)(e) or (f);
(b) within the proposed special district;
(c) except as provided in Subsections (6) and (7), within the applicable area; and
(d) for the purpose of:
(i) for a public hearing on a request, allowing public input on:
(A) whether the requested service is needed in the area of the proposed special district;
(B) whether the service should be provided by the county or municipality or the proposed special district; and
(C) all other matters relating to the request or the proposed special district; or
(ii) for a public hearing on a resolution, allowing the public to ask questions of and obtain further information from the governing body holding the hearing regarding the issues contained in or raised by the resolution.
(3) A quorum of each governing body holding a public hearing under this section shall be present throughout each hearing held by that governing body.
(4) Each hearing under this section shall be held on a weekday evening other than a holiday beginning no earlier than 6 p.m.
(5) At the beginning and end of each hearing concerning a resolution, the governing body shall announce the deadline for filing protests and generally explain the protest procedure and requirements.
(6) Two or more county or municipal legislative bodies may jointly hold a hearing or set of hearings required under this section if all the requirements of this section, other than the requirements of Subsection (2)(c), are met as to each hearing.
(7) Notwithstanding Subsection (2)(c), a governing body may hold a public hearing or set of public hearings outside the applicable area if:
(a) there is no reasonable place to hold a public hearing within the applicable area; and
(b) the public hearing or set of public hearings is held as close to the applicable area as reasonably possible.
(1) Before holding a public hearing or set of public hearings under Section 17B-1-210, the legislative body of each county or municipality with which a request is filed or that adopts a resolution under Subsection 17B-1-203(1)(e) and the board of trustees of each special district that adopts a resolution under Subsection 17B-1-203(1)(f) shall publish notice for the proposed special district, as a class B notice under Section 63G-30-102, for at least two weeks before the day of the hearing or the day of the first of the set of hearings.
(2) Each notice required under Subsection (1) shall:
(a) if the hearing or set of hearings is concerning a resolution:
(i) contain the entire text or an accurate summary of the resolution; and
(ii) state the deadline for filing a protest against the creation of the proposed special district;
(b) clearly identify each governing body involved in the hearing or set of hearings;
(c) state the date, time, and place for the hearing or set of hearings and the purposes for the hearing or set of hearings; and
(d) describe or include a map of the entire proposed special district.
(3) County or municipal legislative bodies may jointly provide the notice required under this section if all the requirements of this section are met as to each notice.
(1)
(a) Within 60 days after the last hearing required under Section 17B-1-210 concerning a request, the legislative body of each county whose unincorporated area includes and the legislative body of each municipality whose boundaries include any part of the proposed special district shall adopt a resolution indicating whether the county or municipality will provide to the area of the proposed special district within its boundaries the service proposed to be provided by the proposed special district.
(b) If a county or municipality adopts a resolution indicating that the county or municipality will provide the service proposed to be provided by the proposed special district under Subsection (1)(a), the resolution shall include a reasonable timeline for the county or municipality to begin providing the service.
(2) If the legislative body of a county or municipality fails to adopt a resolution within the time provided under Subsection (1), the county or municipal legislative body shall be considered to have declined to provide the service requested and to have consented to the creation of the special district.
(3) If the county or municipality adopts a resolution under Subsection (1) indicating that it will provide the requested service but does not, within 120 days after the adoption of that resolution, take substantial measures to provide the requested service, the county or municipal legislative body shall be considered to have declined to provide the requested service.
(4) Each county or municipality that adopts a resolution under Subsection (1) indicating that it will provide the requested service:
(a) shall diligently proceed to take all measures necessary to provide the service; and
(b) if the county or municipality fails to timely provide the requested service, the county or municipality will be considered to have declined to provide the service and the creation of the special district may proceed accordingly.
(1) For purposes of this section, "adequate protests" means protests that are:
(a) filed with the county clerk, municipal clerk or recorder, or special district secretary or clerk, as the case may be, within 60 days after the last public hearing required under Section 17B-1-210; and
(b) signed by:
(i) the owners of private real property that:
(A) is located within the proposed special district;
(B) covers at least 25% of the total private land area within the applicable area; and
(C) is equal in value to at least 15% of the value of all private real property within the applicable area; or
(ii) registered voters residing within the applicable area equal in number to at least 25% of the number of votes cast in the applicable area for the office of president of the United States at the most recent election prior to the adoption of the resolution.
(2) An owner may withdraw a protest at any time before the expiration of the 60-day period described in Subsection (1)(a).
(3) If adequate protests are filed, the governing body that adopted a resolution under Subsection 17B-1-203(1)(e) or (f):
(a) may not:
(i) hold or participate in an election under Subsection 17B-1-214(1) with respect to the applicable area;
(ii) take any further action under the protested resolution to create a special district or include the applicable area in a special district; or
(iii) for a period of two years, adopt a resolution under Subsection 17B-1-203(1)(e) or (f) proposing the creation of a special district including substantially the same area as the applicable area and providing the same service as the proposed special district in the protested resolution; and
(b) shall, within five days after receiving adequate protests, mail or deliver written notification of the adequate protests to the responsible body.
(4) Subsection (3)(a) may not be construed to prevent an election from being held for a proposed special district whose boundaries do not include an applicable area that is the subject of adequate protests.
(5)
(a) If adequate protests are not filed with respect to a resolution proposing the creation of a special district for which an election is not required under Subsection 17B-1-214(3)(d), (e), (f), or (g), a resolution approving the creation of the special district shall be adopted by:
(i)
(A) the legislative body of a county whose unincorporated area is included within the proposed special district; and
(B) the legislative body of a municipality whose area is included within the proposed special district; or
(ii) the board of trustees of the initiating special district.
(b) Each resolution adopted under Subsection (5)(a) shall:
(i) describe the area included in the special district;
(ii) be accompanied by a map that shows the boundaries of the special district;
(iii) describe the service to be provided by the special district;
(iv) state the name of the special district; and
(v) provide a process for the appointment of the members of the initial board of trustees.
(1)
(a) Except as provided in Subsection (3) and in Subsection 17B-1-213(3)(a), an election on the question of whether the special district should be created shall be held by:
(i) if the proposed special district is located entirely within a single county, the responsible clerk; or
(ii) except as provided under Subsection (1)(b), if the proposed special district is located within more than one county, the clerk of each county in which part of the proposed special district is located, in cooperation with the responsible clerk.
(b) Notwithstanding Subsection (1)(a)(ii), if the proposed special district is located within more than one county and the only area of a county that is included within the proposed special district is located within a single municipality, the election for that area shall be held by the municipal clerk or recorder, in cooperation with the responsible clerk.
(2) Each election under Subsection (1) shall be held at the next special or regular general election date that is:
(a) for an election pursuant to a property owner or registered voter petition, more than 45 days after certification of the petition under Subsections 17B-1-209(3)(a), (b), and (c); or
(b) for an election pursuant to a resolution, more than 60 days after the latest hearing required under Section 17B-1-210.
(3) The election requirement of Subsection (1) does not apply to:
(a) a petition filed under Subsection 17B-1-203(1)(a) if it contains the signatures of the owners of private real property that:
(i) is located within the proposed special district;
(ii) covers at least 67% of the total private land area within the proposed special district as a whole and within each applicable area; and
(iii) is equal in value to at least 50% of the value of all private real property within the proposed special district as a whole and within each applicable area;
(b) a petition filed under Subsection 17B-1-203(1)(b) if it contains the signatures of registered voters residing within the proposed special district as a whole and within each applicable area, equal in number to at least 67% of the number of votes cast in the proposed special district as a whole and in each applicable area, respectively, for the office of governor at the last general election prior to the filing of the petition;
(c) a groundwater right owner petition filed under Subsection 17B-1-203(1)(c) if the petition contains the signatures of the owners of groundwater rights that:
(i) are diverted within the proposed special district; and
(ii) cover at least 67% of the total amount of groundwater diverted in accordance with groundwater rights within the proposed special district as a whole and within each applicable area;
(d) a resolution adopted under Subsection 17B-1-203(1)(e) on or after May 5, 2003, that proposes the creation of a special district to provide fire protection, paramedic, and emergency services or law enforcement service, if the proposed special district:
(i) includes the unincorporated area, whether in whole or in part, of one or more counties; or
(ii) consists of an area that:
(A) has a boundary that is the same as the boundary of the municipality whose legislative body adopts the resolution proposing the creation of the special district;
(B) previously received fire protection, paramedic, and emergency services or law enforcement service from another special district; and
(C) may be withdrawn from the other special district under Section 17B-1-505 without an election because the withdrawal is pursuant to an agreement under Subsection 17B-1-505(5)(a)(ii)(A) or (5)(b);
(e) a resolution adopted under Subsection 17B-1-203(1)(e) or (f) if the resolution proposes the creation of a special district that has no registered voters within its boundaries;
(f) a resolution adopted under Subsection 17B-1-203(1)(e) on or after May 11, 2010, that proposes the creation of a special district described in Subsection 17B-1-202(1)(a)(xiii);
(g) a resolution adopted under Section 17B-2a-1105 to create a municipal services district; or
(h) a petition for the creation of an infrastructure financing district.
(4)
(a) If the proposed special district is located in more than one county, the responsible clerk shall coordinate with the clerk of each other county and the clerk or recorder of each municipality involved in an election under Subsection (1) so that the election is held on the same date and in a consistent manner in each jurisdiction.
(b) The clerk of each county and the clerk or recorder of each municipality involved in an election under Subsection (1) shall cooperate with the responsible clerk in holding the election.
(c) Except as otherwise provided in this part, each election under Subsection (1) shall be governed by Title 20A, Election Code.
(1)
(a) Within the time specified in Subsection (1)(b) and except as provided in Section 17B-1-209 for a petition proposing the creation of an infrastructure financing district, the responsible body shall file with the lieutenant governor:
(i) if applicable, a copy of the petition certified, under Section 17B-1-209, as complying with all applicable requirements;
(ii) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(iii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(b) The responsible body shall file the documents listed in Subsection (1)(a) with the lieutenant governor within 10 days after:
(i) the canvass of an election under Section 17B-1-214, if a majority of those voting at the election within the proposed special district as a whole vote in favor of the creation of a special district;
(ii) certification of a petition as to which the election requirement of Subsection 17B-1-214(1) does not apply because of Subsection 17B-1-214(3)(a), (b), (c), or (h); or
(iii) adoption of a resolution, under Subsection 17B-1-213(5) approving the creation of a special district for which an election was not required under Subsection 17B-1-214(3)(d), (e), (f), or (g) by the legislative body of each county whose unincorporated area is included within and the legislative body of each municipality whose area is included within the proposed special district, or by the board of trustees of the initiating special district.
(2) Upon the lieutenant governor's issuance of a certificate of incorporation under Section 67-1a-6.5, the responsible body shall:
(a) if the special district is located within the boundary of a single county, submit to the recorder of that county:
(i) the original:
(A) notice of an impending boundary action;
(B) certificate of incorporation; and
(C) approved final local entity plat; and
(ii) if applicable, a certified copy of each resolution adopted under Subsection 17B-1-213(5); or
(b) if the special district is located within the boundaries of more than a single county:
(i) submit to the recorder of one of those counties:
(A) the original of the documents listed in Subsections (2)(a)(i)(A), (B), and (C); and
(B) if applicable, a certified copy of each resolution adopted under Subsection 17B-1-213(5); and
(ii) submit to the recorder of each other county:
(A) a certified copy of the documents listed in Subsection (2)(a)(i)(A), (B), and (C); and
(B) if applicable, a certified copy of each resolution adopted under Subsection 17B-1-213(5).
(3) The area of each special district consists of:
(a) if an election was held under Section 17B-1-214, the area of the new special district as approved at the election;
(b) if an election was not required because of Subsection 17B-1-214(3)(a), (b), (c),or (h), the area of the proposed special district as described in the petition; or
(c) if an election was not required because of Subsection 17B-1-214(3)(d), (e), (f), or (g), the area of the new special district as described in the resolution adopted under Subsection 17B-1-213(5).
(4)
(a) Upon the lieutenant governor's issuance of the certificate of incorporation under Section 67-1a-6.5, the special district is created and incorporated as:
(i) the type of specialized special district that was specified in the petition under Subsection 17B-1-203(1)(a), (b), (c), or (d) or resolution under Subsection 17B-1-203(1)(e) or (f), if the petition or resolution proposed the creation of a specialized special district; or
(ii) a basic special district, if the petition or resolution did not propose the creation of a specialized special district.
(b)
(i) The effective date of a special district's incorporation for purposes of assessing property within the special district is governed by Section 59-2-305.5.
(ii) Until the documents listed in Subsection (2) are recorded in the office of the recorder of each county in which the property is located, a newly incorporated special district may not:
(A) levy or collect a property tax on property within the special district;
(B) levy or collect an assessment on property within the special district;
(C) charge or collect a fee for service provided to property within the special district; or
(D) issue bonds.
(1)
(a) Except as provided in Subsection (2) and subject to Subsection (1)(b), each county whose unincorporated area includes and each municipality whose boundaries include some or all of the proposed special district shall bear their respective costs and expenses associated with the procedure under this part for creating a special district.
(b) Within a year after its creation, each special district shall reimburse the costs and expenses associated with the preparation, certification, and recording of the approved final local entity plat of the special district and accompanying documents under Section 17B-1-215.
(2)
(a) Subject to Subsection (2)(b), the sponsors of a petition for the creation of an infrastructure financing district shall bear the costs and expenses associated with the procedure under this part for creating the infrastructure financing district.
(b) An infrastructure financing district may reimburse petition sponsors the costs and expenses the petition sponsors paid under Subsection (2)(a).
(1) A special district that is not engaged in one or more of the following activities, services, or duties is subject to dissolution in accordance with Subsections (5) and (6):
(a) levying and collecting a tax;
(b) providing a commodity or service;
(c) collecting a fee or charging an assessment for a commodity, service, facility, or improvement provided by the special district;
(d) undertaking planning necessary for the provision of a commodity, service, facility, or improvement as reflected in a written study or report;
(e) acquiring or maintaining property or an easement necessary for a service, facility, or improvement to be provided by the special district in accordance with a general or master plan adopted by the district;
(f) constructing, installing, maintaining, owning, or operating infrastructure for the provision of a commodity, service, facility, or improvement; or
(g) legally incurring debt, contracting, or otherwise being obligated to provide a commodity, service, facility, or improvement within a reasonable period of time.
(2) For a special district created after May 14, 2013, the special district shall file with the state auditor a written certification:
(a) declaring that the district is engaged in an activity, service, or duty described in Subsection (1);
(b) identifying the activity in which the special district is engaged; and
(c) no later than five years after the date on which a special district is created as reflected in the certificate of incorporation issued by the lieutenant governor under Section 67-1a-6.5.
(3)
(a) The state auditor shall send a deficiency notice in accordance with Subsection (3)(c) if:
(i) a special district fails to deliver a certification in accordance with Subsection (2); or
(ii) the state auditor determines that, subject to Subsection (3)(b), a special district created after January 1, 2005, and before May 15, 2013, is not engaged in an activity, service, or duty required under Subsection (1) within five years after the date on which the special district is created as reflected in the certificate of incorporation issued by the lieutenant governor under Section 67-1a-6.5 or thereafter.
(b) The state auditor shall make a determination described in Subsection (3)(a)(ii) based on:
(i) the special district's failure to file a required annual financial report with the state auditor in accordance with Section 17B-1-639; or
(ii) subject to Subsection (7), other credible information related to Subsection (1).
(c)
(i) The state auditor shall send the deficiency notice to the special district and the Utah Association of Special Districts.
(ii) The deficiency notice shall state that the special district is required to file with the state auditor a written certification:
(A) declaring that the district was and continues to be engaged in an activity, service, or duty described in Subsection (1) prior to the date of the deficiency notice; and
(B) identifying the activity, service, or duty in which the special district is engaged.
(4) If within four months of receiving a deficiency notice, a special district fails to file a written certification with the state auditor in accordance with Subsection (2) or (3)(c)(ii), the state auditor shall, in writing:
(a) notify the lieutenant governor that the special district has failed to meet the requirements of this section and specify the reason for the district's failure; and
(b) request that the lieutenant governor dissolve the special district in accordance with Subsections (5) and (6).
(5) If the lieutenant governor receives a request to dissolve a special district from the state auditor in accordance with Subsection (4), the lieutenant governor shall:
(a) issue a certification of dissolution under Section 67-1a-6.5; and
(b) send a copy of the certification of dissolution to:
(i) the state auditor;
(ii) the State Tax Commission;
(iii) the recorder of the county in which the special district is located, or, if the special district is located in more than one county, the recorder of each county in which the special district is located;
(iv) the last known address of the special district; and
(v) the Utah Association of Special Districts.
(6) A special district identified in a certification of dissolution is dissolved:
(a) upon recordation of the certification by the county recorder; or
(b) if the special district is located within more than one county, upon recordation of the certification by the county recorder of the last county to record.
(7) Notwithstanding any other provision of law, a special district shall be conclusively presumed to have been lawfully created, existing, and active if for two years following the district's creation under Subsection 17B-1-215(4):
(a) the district has:
(i) levied and collected a tax; or
(ii) collected a fee, charge, or assessment for a commodity, service, facility, or improvement provided by the district; and
(b) no challenge has been filed in court to the existence or creation of the district.
Sections 17B-1-210, 17B-1-211, 17B-1-212 and, 17B-1-213 do not apply to the proposed creation of an infrastructure financing district.
(1)
(a) This section does not apply to a large public transit district created in accordance with Chapter 2a, Part 8, Public Transit District Act.
(b) Each special district shall be governed by a board of trustees that shall:
(i) manage and conduct the business and affairs of the district; and
(ii) determine all questions of district policy.
(c) All powers of a special district are exercised through the board of trustees.
(2) The board of trustees may:
(a) fix the location of the special district's principal place of business and the location of all offices and departments, if any;
(b) fix the times of meetings of the board of trustees;
(c) select and use an official district seal;
(d) subject to Subsections (3) and (4), employ employees and agents, or delegate to district officers power to employ employees and agents, for the operation of the special district and the special district's properties and prescribe or delegate to district officers the power to prescribe the duties, compensation, and terms and conditions of employment of those employees and agents;
(e) require crime insurance for district officers and employees charged with the handling of district funds in an amount set by the board;
(f) contract for or employ professionals to perform work or services for the special district that cannot satisfactorily be performed by the officers or employees of the district;
(g) through counsel, prosecute on behalf of or defend the special district in all court actions or other proceedings in which the district is a party or is otherwise involved;
(h) adopt bylaws for the orderly functioning of the board;
(i) adopt and enforce rules and regulations for the orderly operation of the special district or for carrying out the district's purposes;
(j) prescribe a system of civil service for district employees;
(k) on behalf of the special district, enter into contracts that the board considers to be for the benefit of the district;
(l) acquire, construct or cause to be constructed, operate, occupy, control, and use buildings, works, or other facilities for carrying out the purposes of the special district;
(m) on behalf of the special district, acquire, use, hold, manage, occupy, and possess property necessary to carry out the purposes of the district, dispose of property when the board considers it appropriate, and institute and maintain in the name of the district any action or proceeding to enforce, maintain, protect, or preserve rights or privileges associated with district property;
(n) delegate to a district officer the exercise of a district duty; and
(o) exercise all powers and perform all functions in the operation of the special district and the special district's properties as are ordinarily exercised by the governing body of a political subdivision of the state and as are necessary to accomplish the purposes of the district.
(3)
(a) As used in this Subsection (3), "interim vacancy period" means:
(i) if any member of the special district board is elected, the period of time that:
(A) begins on the day on which an election is held to elect a special district board member; and
(B) ends on the day on which the special district board member-elect begins the member's term; or
(ii) if any member of the special district board is appointed, the period of time that:
(A) begins on the day on which an appointing authority posts a notice of vacancy in accordance with Section 17B-1-304; and
(B) ends on the day on which the individual who is appointed by the special district board to fill the vacancy begins the individual's term.
(b)
(i) The special district may not hire during an interim vacancy period a manager, a chief executive officer, a chief administrative officer, an executive director, or a similar position to perform executive and administrative duties or functions.
(ii) Notwithstanding Subsection (3)(b)(i):
(A) the special district may hire an interim manager, a chief executive officer, a chief administrative officer, an executive director, or a similar position during an interim vacancy period; and
(B) the interim manager's, chief executive officer's, chief administrative officer's, or similar position's employment shall terminate once a new manager, chief executive officer, chief administrative officer, or similar position is hired by the new special district board after the interim vacancy period has ended.
(c) Subsection (3)(b) does not apply if:
(i) all the elected special district board members who held office on the day of the election for the special district board members, whose term of office was vacant for the election are re-elected to the special district board; and
(ii) all the appointed special district board members who were appointed whose term of appointment was expiring are re-appointed to the special district board.
(4) A special district board that hires an interim manager, a chief executive officer, a chief administrative officer, an executive director, or a similar position in accordance with this section may not enter into an employment contract that contains an automatic renewal provision with the interim manager, chief executive officer, chief administrative officer, executive director, or similar position.
(1) Except as provided in Section 17B-2a-905, each member of a special district board of trustees shall be:
(a) a registered voter at the location of the member's residence; and
(b) except as otherwise provided in Subsection (2), (3), or (4), a resident within:
(i) the boundaries of the special district; and
(ii) if applicable, the boundaries of the division of the special district from which the member is elected or appointed.
(2)
(a) As used in this Subsection (2):
(i) "Proportional number" means the number of members of a board of trustees that bears, as close as mathematically possible, the same proportion to all members of the board that the number of seasonally occupied homes bears to all residences within the district that receive service from the district.
(ii) "Seasonally occupied home" means a single-family residence:
(A) that is located within the special district;
(B) that receives service from the special district; and
(C) whose owner occupies the residence on a temporary or seasonal basis, rather than as the principal place of residence as defined in Section 20A-2-105.
(b) If over 50% of the residences within a special district that receive service from the special district are seasonally occupied homes, the requirement under Subsection (1)(b) is replaced, for a proportional number of members of the board of trustees, with the requirement that the member be an owner of land, or an agent or officer of the owner of land:
(i) that receives, or intends to receive, service from the district; and
(ii) that is located within the special district and, if applicable, the division from which the member is elected.
(3)
(a) Subsection (3)(b) applies to a board of trustees member in:
(i) a basic special district;
(ii) any other type of special district that is located solely within a county of the fourth, fifth, or sixth class, that has within the district's boundaries fewer than one residential dwelling unit per 10 acres of land; or
(iii) an infrastructure financing district.
(b) For a board of trustees member in a special district listed in Subsection (3)(a), the board of trustees may replace the requirement under Subsection (1)(b) with the requirement that the member be:
(i) a resident within the boundaries of the special district; or
(ii) an owner of land, or an agent or officer of the owner of land, that:
(A) is located within the special district ; and
(B) receives, or is expected to receive, service from the district.
(4) A board member of an infrastructure financing district is not required to be a resident within the boundary of the infrastructure financing district if:
(a) all owners of surface property within the district waive the residency requirement;
(b) the district boundary does not include any residents; or
(c)
(i) in the case of an appointed board position, no qualified individual timely files to be considered for appointment to the board; or
(ii) in the case of an elected board position, no qualified individual files a declaration of candidacy for the board position under Subsection 17B-1-306(5).
(5) A member of the board of trustees of a service area described in Subsection 17B-2a-905(2)(a) or (3)(a), who is an elected official of the county appointing the individual, is not subject to the requirements described in Subsection (1)(b) if the elected official was elected at large by the voters of the county.
(6) Notwithstanding Subsection (1)(b) and except as provided in Subsection (7), the county legislative body may appoint to the special district board one of the county legislative body's own members, regardless of whether the member resides within the boundaries described in Subsection (1)(b), if:
(a) the county legislative body satisfies the procedures to fill a vacancy described in:
(i) for the appointment of a new board member, Subsections 17B-1-304(2) and (3); or
(ii) for an appointment to fill a midterm vacancy, Subsection 20A-1-512(1)(a)(ii) or Subsection 20A-1-512(2);
(b) fewer qualified candidates timely file to be considered for appointment to the special district board than are necessary to fill the board;
(c) the county legislative body appoints each of the qualified candidates who timely filed to be considered for appointment to the board; and
(d) the county legislative body appoints a member of the body to the special district board, in accordance with Subsection 17B-1-304(6) or Subsection 20A-1-512(1)(c), who was:
(i) elected at large by the voters of the county;
(ii) elected from a division of the county that includes more than 50% of the geographic area of the special district; or
(iii) if the special district is divided into divisions under Section 17B-1-306.5, elected from a division of the county that includes more than 50% of the geographic area of the division of the special district in which there is a board vacancy.
(7) If it is necessary to reconstitute the board of trustees of a special district located solely within a county of the fourth, fifth, or sixth class because the term of a majority of the members of the board has expired without new trustees having been elected or appointed as required by law, even if sufficient qualified candidates timely file to be considered for a vacancy on the board, the county legislative body may appoint to the special district board no more than one of the county legislative body's own members who does not satisfy the requirements of Subsection (1).
(8)
(a) Except as otherwise provided by statute, the number of members of each board of trustees of a special district that has nine or fewer members shall have an odd number of members that is no fewer than three.
(b) If a board of trustees of a special district has more than nine members, the number of members may be odd or even.
(9) For a newly created special district, the number of members of the initial board of trustees shall be the number specified:
(a) for a special district whose creation was initiated by a petition under Subsection 17B-1-203(1)(a), (b), (c), or (d), in the petition; or
(b) for a special district whose creation was initiated by a resolution under Subsection 17B-1-203(1)(e) or (f), in the resolution.
(10)
(a) For an existing special district, the number of members of the board of trustees may be changed by a two-thirds vote of the board of trustees.
(b) No change in the number of members of a board of trustees under Subsection (10)(a) may:
(i) violate Subsection (8); or
(ii) serve to shorten the term of any member of the board.
(1)
(a) Except as provided in Subsections (1)(b), (c), (d), and (e), the term of each member of a board of trustees begins at noon on the January 1 following the member's election or appointment.
(b) The term of each member of the initial board of trustees of a newly created special district begins:
(i) upon appointment, for an appointed member; and
(ii) upon the member taking the oath of office after the canvass of the election at which the member is elected, for an elected member.
(c) The term of each water conservancy district board member whom the governor appoints in accordance with Subsection 17B-2a-1005(2)(c):
(i) begins on the later of the following:
(A) the date on which the Senate consents to the appointment; or
(B) the expiration date of the prior term; and
(ii) ends on the February 1 that is approximately four years after the date described in Subsection (1)(c)(i)(A) or (B).
(d) The term of a member of a board of trustees whom an appointing authority appoints in accordance with Subsection (5)(b) begins upon the member taking the oath of office.
(e) If the member of the board of trustees fails to assume or qualify for office on January 1 for any reason, the term begins on the date the member assumes or qualifies for office.
(2)
(a)
(i) Except as provided in Subsection (8), and subject to Subsections (2)(a)(ii) and (iii), the term of each member of a board of trustees is four years, except that:
(A) approximately half the members of the initial board of trustees of an infrastructure financing district, as designated in the governing document, shall serve a six-year term so that the term of approximately half the board members expires every two years; and
(B) for any other special district, approximately half the members of the initial board of trustees, chosen by lot, shall serve a two-year term so that the term of approximately half the board members expires every two years.
(ii) If the terms of members of the initial board of trustees of a newly created special district do not begin on January 1 because of application of Subsection (1)(b), the terms of those members shall be adjusted as necessary, subject to Subsection (2)(a)(iii), to result in the terms of their successors complying with:
(A) the requirement under Subsection (1)(a) for a term to begin on January 1 following a member's election or appointment; and
(B) the requirement under Subsection (2)(a)(i) that terms be four years.
(iii) If the term of a member of a board of trustees does not begin on January 1 because of the application of Subsection (1)(e), the term is shortened as necessary to result in the term complying with the requirement under Subsection (1)(a) that the successor member's term, regardless of whether the incumbent is the successor, begins at noon on January 1 following the successor member's election or appointment.
(iv) An adjustment under Subsection (2)(a)(ii) may not add more than a year to or subtract more than a year from a member's term.
(b) Each board of trustees member shall serve until a successor is duly elected or appointed and qualified, unless the member earlier is removed from office or resigns or otherwise leaves office.
(c) If a member of a board of trustees no longer meets the qualifications of Subsection 17B-1-302(1), (2), (3), (4), (5), (6), or (7), or if the member's term expires without a duly elected or appointed successor:
(i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
(ii) the member may continue to serve until a successor is duly elected or appointed and qualified.
(3)
(a)
(i) Before entering upon the duties of office, each member of a board of trustees shall take the oath of office specified in Utah Constitution, Article IV,
Section 10.
(ii) A judge, county clerk, notary public, or the special district clerk may administer an oath of office.
(b) The member of the board of trustees taking the oath of office shall file the oath of office with the clerk of the special district.
(c) The failure of a board of trustees member to take the oath under Subsection (3)(a) does not invalidate any official act of that member.
(4) A board of trustees member may serve any number of terms.
(5)
(a) Except as provided in Subsection (6), each midterm vacancy in a board of trustees position is filled in accordance with Section 20A-1-512.
(b) When the number of members of a board of trustees increases in accordance with Subsection 17B-1-302(10), the appointing authority may appoint an individual to fill a new board of trustees position in accordance with Section 17B-1-304 or 20A-1-512.
(6)
(a) As used in this Subsection (6):
(i) "Appointed official" means a person who:
(A) is appointed as a member of a special district board of trustees by a county or municipality that is entitled to appoint a member to the board; and
(B) holds an elected position with the appointing county or municipality.
(ii) "Appointing entity" means the county or municipality that appointed the appointed official to the board of trustees.
(b) The board of trustees shall declare a midterm vacancy for the board position held by an appointed official if:
(i) during the appointed official's term on the board of trustees, the appointed official ceases to hold the elected position with the appointing entity; and
(ii) the appointing entity submits a written request to the board to declare the vacancy.
(c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the appointing entity shall appoint another person to fill the remaining unexpired term on the board of trustees.
(7)
(a) A member of a board of trustees shall obtain crime insurance in relation to performance of the member's duties, in the amount set by the board of trustees.
(b) The special district:
(i) may assist the board of trustees in obtaining crime insurance as a group or for members individually; and
(ii) shall pay the cost of the premium for the insurance coverage required under this Subsection (7).
(8)
(a) In order to compensate for a change in the election year under Subsection 17B-1-306(14), the lieutenant governor may:
(i) extend the term of an elected district board member by one year; or
(ii) subject to Subsection 17B-1-306(14)(b)(iii), and in accordance with Subsection (2)(a), shorten the term of an elected district board member by one year, if necessary, to ensure that the term of approximately half of the board members expires every two years.
(b) When the number of members of a board of trustees increases in accordance with Subsection 17B-1-302(10), to ensure that the term of approximately half of the board members expires every two years in accordance with Subsection (2)(a):
(i) the board shall set shorter terms for approximately half of the new board members, chosen by lot; and
(ii) the initial term of a new board member position may be less than two or four years.
(9)
(a) A special district shall:
(i) post on the Utah Public Notice Website created in Section 63A-16-601 the name, phone number, and email address of each member of the special district's board of trustees;
(ii) update the information described in Subsection (9)(a)(i) when:
(A) the membership of the board of trustees changes; or
(B) a member of the board of trustees' phone number or email address changes; and
(iii) post any update required under Subsection (9)(a)(ii) within 30 days after the date on which the change requiring the update occurs.
(b) This Subsection (9) applies regardless of whether the county or municipal legislative body also serves as the board of trustees of the special district.
(1) The appointing authority may, by resolution, appoint persons to serve as members of a special district board by following the procedures established by this section.
(2)
(a) In any calendar year when appointment of a new special district board member is required, the appointing authority shall prepare a notice of vacancy that contains:
(i) the positions that are vacant that shall be filled by appointment;
(ii) the qualifications required to be appointed to those positions;
(iii) the procedures for appointment that the governing body will follow in making those appointments; and
(iv) the person to be contacted and any deadlines that a person shall meet who wishes to be considered for appointment to those positions.
(b) The appointing authority shall publish the notice of vacancy for the special district, as a class A notice under Section 63G-30-102, for at least one month before the deadline for accepting nominees for appointment.
(c) The appointing authority may bill the special district for the cost of preparing, printing, and publishing the notice.
(3)
(a) After the appointing authority is notified of a vacancy and has satisfied the requirements described in Subsection (2), the appointing authority shall select a person to fill the vacancy from the applicants who meet the qualifications established by law.
(b) The appointing authority shall:
(i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the appointment;
(ii) allow any interested persons to be heard; and
(iii) adopt a resolution appointing a person to the special district board.
(c) If no candidate for appointment to fill the vacancy receives a majority vote of the appointing authority, the appointing authority shall select the appointee from the two top candidates by lot.
(4) Persons appointed to serve as members of the special district board serve four-year terms, but may be removed for cause at any time after a hearing by two-thirds vote of the appointing body.
(5)
(a) At the end of each board member's term, the position is considered vacant, and, after following the appointment procedures established in this section, the appointing authority may either reappoint the incumbent board member or appoint a new member.
(b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a successor is elected or appointed and qualified in accordance with Subsection 17B-1-303(2)(b).
(6) Notwithstanding any other provision of this section, if the appointing authority appoints one of its own members and that member meets all applicable statutory board member qualifications, the appointing authority need not comply with Subsection (2) or (3).
(7)
(a) This section does not apply to the appointment of a member of a public infrastructure district board.
(b) Section 17D-4-202 governs the appointment process for a member of the board of a public infrastructure district.
(1) Except as provided in Subsection (12), each elected board member shall be selected as provided in this section.
(2)
(a) Each election of a special district board member shall be held:
(i) at the same time as the municipal general election or the regular general election, as applicable; and
(ii) at polling places designated by the special district board in consultation with the county clerk for each county in which the special district is located, which polling places shall coincide with municipal general election or regular general election polling places, as applicable, whenever feasible.
(b) The special district board, in consultation with the county clerk, may consolidate two or more polling places to enable voters from more than one district to vote at one consolidated polling place.
(c)
(i) Subject to Subsections (5)(g) and (h), the number of polling places under Subsection (2)(a)(ii) in an election of board members of an irrigation district shall be one polling place per division of the district, designated by the district board.
(ii) Each polling place designated by an irrigation district board under Subsection (2)(c)(i) shall coincide with a polling place designated by the county clerk under Subsection (2)(a)(ii).
(3) If the election is to be held at the same time as the municipal general election:
(a) the special district shall comply with Section 20A-5a-304 to provide notice regarding offices to be voted on at the upcoming election and the declaration of candidacy period; and
(b) the period to file a declaration of candidacy is the filing period described in Subsection 20A-9-203(3)(d).
(4) If the election is to be held at the same time as the regular general election:
(a) the special district shall comply with Section 20A-5a-203 to provide notice regarding offices to be voted on at the upcoming election and the declaration of candidacy period; and
(b) the period to file a declaration of candidacy:
(i) begins at 8 a.m. on the first business day in June; and
(ii)
(A) ends at 5 p.m. on the fourth business day after the day on which the filing period begins; or
(B) if the day described in Subsection (4)(b)(ii)(A) is a Friday, ends at 5 p.m. on the next business day after that Friday.
(5)
(a) Except as provided in Subsection (5)(b), to become a candidate for an elective special district board position, an individual shall file a declaration of candidacy in person with an official designated by the special district within the candidate filing period for the applicable election year in which the election for the special district board is held, as follows:
(i) for a special district with a four day standard work week of at least eight hours each day of the workweek, during the special district's standard office hours; or
(ii) for a special district other than a district described in Subsection (5)(a)(i):
(A) if the standard office hours provide at least three consecutive office hours each day during the candidate filing period that is not a holiday or weekend, during the special district's standard office hours; or
(B) if the standard office hours of a special district do not provide at least three consecutive office hours each day, a three-hour consecutive time period each day designated by the special district during the candidate filing period that is not a holiday or weekend.
(b) Subject to Subsection (5)(e), an individual may designate an agent to file a declaration of candidacy with the official designated by the special district if:
(i) the individual is located outside of the state during the entire filing period;
(ii) the designated agent appears in person before the official designated by the special district; and
(iii) the individual communicates with the official designated by the special district using an electronic device that allows the individual and official to see and hear each other.
(c)
(i) Before the filing officer may accept any declaration of candidacy from an individual, the filing officer shall:
(A) read to the individual the constitutional and statutory qualification requirements for the office that the individual is seeking; and
(B) require the individual to state whether the individual meets those requirements.
(ii) If the individual does not meet the qualification requirements for the office, the filing officer may not accept the individual's declaration of candidacy.
(iii) If it appears that the individual meets the requirements of candidacy, the filing officer shall accept the individual's declaration of candidacy.
(d) The declaration of candidacy shall be in substantially the following form:
"I, (print name) ____________, being first duly sworn, say that I reside at (Street) ____________, City of ____________, County of ______________, state of Utah, (Zip Code) , (Telephone Number, if any); that I meet the qualifications for the office of board of trustees member for _______________________ (state the name of the special district); that I am a candidate for that office to be voted upon at the next election; and that, if filing via a designated agent, I will be out of the state of Utah during the entire candidate filing period, and I hereby request that my name be printed upon the official ballot for that election.
(Signed) _________________________________________
Subscribed and sworn to (or affirmed) before me by ____________ on this ______ day of ____________, ____.
(Signed) ________________________
(Clerk or Notary Public)."
(e) An agent designated under Subsection (5)(b) may not sign the form described in Subsection (5)(d).
(f) Each individual wishing to become a valid write-in candidate for an elective special district board position is governed by Section 20A-9-601.
(g) If at least one individual does not file a declaration of candidacy as required by this section, an individual shall be appointed to fill that board position in accordance with the appointment provisions of Section 20A-1-512.
(h) If only one candidate files a declaration of candidacy and there is no write-in candidate who complies with Section 20A-9-601, the board, in accordance with Section 20A-1-206, may:
(i) consider the candidate to be elected to the position; and
(ii) cancel the election.
(6)
(a) A primary election may be held if:
(i) the election is authorized by the special district board; and
(ii) the number of candidates for a particular local board position or office exceeds twice the number of persons needed to fill that position or office.
(b) The primary election shall be conducted:
(i) on the same date as the municipal primary election or the regular primary election, as applicable; and
(ii) according to the procedures for primary elections provided under Title 20A, Election Code.
(7)
(a) Except as provided in Subsection (7)(c), within one business day after the deadline for filing a declaration of candidacy, the special district clerk shall certify the candidate names to the clerk of each county in which the special district is located.
(b)
(i) Except as provided in Subsection (7)(c) and in accordance with Sections 20A-6-109 and 20A-6-110, the clerk of each county in which the special district is located and the special district clerk shall coordinate placement of the name of each candidate for special district office in the nonpartisan section of the ballot with the appropriate election officer.
(ii) If consolidation of the special district election ballot with the municipal general election ballot or the regular general election ballot, as applicable, is not feasible, the special district board of trustees, in consultation with the county clerk, shall provide for a separate special district election ballot to be administered by poll workers at polling places designated under Subsection (2).
(c)
(i) Subsections (7)(a) and (b) do not apply to an election of a member of the board of an irrigation district established under Chapter 2a, Part 5, Irrigation District Act.
(ii) The board of an irrigation district shall:
(A) subject to Subsections (7)(c)(ii)(B) and (C), establish the form of the ballot for a board member election;
(B) ensure that the ballot is in a nonpartisan format; and
(C) ensure that the name of each candidate is placed on the ballot in accordance with Sections 20A-6-109 and 20A-6-110.
(8)
(a) Each voter at an election for a board of trustees member of a special district shall:
(i) be a registered voter within the district, except for an election of:
(A) an irrigation district board of trustees member; or
(B) a basic special district board of trustees member who is elected by property owners; and
(ii) meet the requirements to vote established by the district.
(b) Each voter may vote for as many candidates as there are offices to be filled.
(c) The candidates who receive the highest number of votes are elected.
(9) Except as otherwise provided by this section, the election of special district board members is governed by Title 20A, Election Code.
(10)
(a) Except as provided in Subsection 17B-1-303(8), a person elected to serve on a special district board shall serve a four-year term, beginning at noon on the January 1 after the person's election.
(b) A person elected shall be sworn in as soon as practical after January 1.
(11)
(a) Except as provided in Subsection (11)(b), each special district shall reimburse the county or municipality holding an election under this section for the costs of the election attributable to that special district.
(b) Each irrigation district shall bear the district's own costs of each election the district holds under this section.
(12) This section does not apply to an improvement district that provides electric or gas service.
(13) Except as provided in Subsection 20A-3a-605(1)(b), the provisions of Title 20A, Chapter 3a, Part 6, Early Voting, do not apply to an election under this section.
(14)
(a) As used in this Subsection (14), "board" means:
(i) a special district board; or
(ii) the administrative control board of a special service district that has elected members on the board.
(b) If a board desires to hold elections for membership on the board at a regular general election instead of a municipal general election , or at a municipal general election instead of a regular general election, the board may submit an application to the lieutenant governor that:
(i) requests permission to change the election year for membership on the board in a manner described in this Subsection (14)(b);
(ii) indicates that a change in the election year is beneficial, based on potential cost savings, a potential increase in voter turnout, or another material reason; and
(iii) if a change in the election year may result in shortening a board member's term of office, indicates that the members of the board unanimously support the lieutenant governor taking that action.
(c) Upon receipt of an application described in Subsection (14)(b), the lieutenant governor may approve the if:
(i) the lieutenant governor concludes that changing the election year is beneficial based on the criteria described in Subsection (14)(b)(ii); and
(ii) for an application that may result in shortening a board member's term of office, the application satisfies the unanimity requirement described in Subsection (14)(b)(iii).
(d) If the lieutenant governor approves a board's application described in this section:
(i) all future elections for membership on the board shall be held at the time of the general election specified in the application; and
(ii) the board may not hold elections at the time of an election other than the general election specified in the application, unless the board receives permission from the lieutenant governor to change the election under the same procedure, and by applying the same criteria, described in this Subsection (14).
(15)
(a) This Subsection (15) applies to a special district if:
(i) the special district's board members are elected by the owners of real property, as provided in Subsection 17B-1-1402(1)(b); and
(ii) the special district was created before January 1, 2020.
(b) The board of a special district described in Subsection (15)(a) may conduct an election:
(i) to fill a board member position that expires at the end of the term for that board member's position; and
(ii) notwithstanding Subsection 20A-1-512(1)(a)(i), to fill a vacancy in an unexpired term of a board member.
(c) An election under Subsection (15)(b) may be conducted as determined by the special district board, subject to Subsection (15)(d).
(d)
(i) The special district board shall provide to property owners eligible to vote at the special district election:
(A) notice of the election; and
(B) a form to nominate an eligible individual to be elected as a board member.
(ii)
(A) The special district board may establish a deadline for a property owner to submit a nomination form.
(B) A deadline under Subsection (15)(d)(ii)(A) may not be earlier than 15 days after the board provides the notice and nomination form under Subsection (15)(d)(i).
(iii)
(A) After the deadline for submitting nomination forms, the special district board shall provide a ballot to all property owners eligible to vote at the special district election.
(B) A special district board shall allow at least five days for ballots to be returned.
(iv) A special district board shall certify the results of an election under this Subsection (15) during an open meeting of the board.
(1) As used in this section, "filing officer" means the official designated by a special district board under Subsection 17B-1-306(5)(a) to receive a declaration of candidacy.
(2)
(a) A filing officer shall, for each person seeking to become a candidate for an elective special district board that is to be filled at the next general election, create, print, and provide the person with a copy of the conflict of interest disclosure statement described in Subsection (2)(b).
(b) A conflict of interest disclosure statement shall:
(i) be divided into sections representing each item of information described in Subsections 20A-11-1604(6)(a) through (n); and
(ii) immediately beneath each section, include a space for the candidate to provide a written response.
(3) Except as provided in Subsection (4), a candidate for an office described in Subsection (2)(a) shall complete the conflict of interest disclosure statement and submit the statement to the filing officer at the time the candidate files a declaration of candidacy.
(4) A candidate is not required to comply with Subsection (3) if the candidate:
(a) currently holds the office for which the candidate seeks reelection;
(b) already, that same year, filed a conflict of interest disclosure statement for the office described in Subsection (4)(a), in accordance with Section 67-16-16; and
(c) at the time the candidate files a declaration of candidacy, indicates, in writing, that the conflict of interest disclosure statement described in Subsection (4)(b) is updated and accurate as of the date of filing the declaration of candidacy.
(5) Except as provided in Subsection (4), a filing officer:
(a) may not accept a declaration of candidacy from a candidate for an office described in Subsection (2)(a) until the filing officer receives a complete conflict of interest disclosure statement from the candidate; and
(b) shall make a candidate's conflict of interest disclosure statement available for public inspection by posting an electronic copy of the statement on:
(i) the special district's website; or
(ii) if the special district does not have a website, the website of each county in which the special district is located.
(6) A filing officer shall ensure that a candidate's conflict of interest disclosure statement remains posted on the website described in Subsection (5)(b) until:
(a) the candidate resigns or is disqualified as a candidate; or
(b) the day after the day of the official canvass for the general election.
(7)
(a) A private party in interest may bring a civil action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to enforce the provisions of this section.
(b) In a civil action under Subsection (7)(a), the court may award costs and attorney fees to the prevailing party.
(1) Subject to Subsection (3), the board of trustees of a special district that has elected board members may, upon a vote of two-thirds of the members of the board, divide the special district, or the portion of the special district represented by elected board of trustees members, into divisions so that some or all of the elected members of the board of trustees may be elected by division rather than at large.
(2)
(a) As used in this Subsection (2):
(i) "Appointed board division" means the dividing of a special district with appointed board members, or the dividing of the portion of the special district represented by appointed board members, into divisions so that some or all of the appointed members of the board of trustees may be appointed by division rather than at large.
(ii) "Appointing body" means an appointing authority that is a body.
(iii) "Appointing individual" means an appointing authority that is an individual.
(b) Subject to Subsection (3), an appointing body may, by a vote of two-thirds of the members of the appointing body, approve an appointed board division.
(c)
(i) Subject to Subsection (3), the board of trustees of a special district with appointed members may recommend an appointed board division to the appointing individual.
(ii) After receiving a recommendation under Subsection (2)(c)(i), an appointing individual may approve an appointed board division.
(3) Before approving or recommending an appointed board division or before changing the boundaries of divisions already established, the board of trustees, under Subsection (1) or (2)(c)(i), or the appointing authority, under Subsection (2)(b), shall:
(a) prepare a proposal that describes the boundaries of the proposed divisions; and
(b) hold a public hearing at which any interested person may appear and speak for or against the proposal.
(4)
(a) The board of trustees under Subsection (1) or (2)(c)(i) or the appointing authority under Subsection (2)(b) shall review the division boundaries at least every 10 years.
(b) Except for changes in the divisions necessitated by annexations to or withdrawals from the special district, the boundaries of divisions established under Subsection (1) or (2) may not be changed more often than every five years.
(c) Changes to the boundaries of divisions already established under Subsection (1) or (2) are not subject to the two-thirds vote requirement of Subsection (1) or (2)(b).
(5)
(a) Notwithstanding Subsections (1) through (4), after the creation of an infrastructure financing district the board of trustees may divide the infrastructure financing district into divisions, as provided in the petition to create the infrastructure financing district under Subsection 17B-1-205(1)(m), so that some or all board members represent a division rather than the district at large.
(b) No more frequently than every four years, the board of an infrastructure financing district may modify division boundaries to ensure that each division has as nearly as possible the same number of registered voters.
(c) In dividing an infrastructure financing district into divisions or in modifying division boundaries, the board shall consider the anticipated future number of registered voters within divisions based on proposed development within the divisions.
(1)
(a) Except as provided in Subsection 17B-1-308(1)(e), a member of a board of trustees may receive compensation for service on the board, as determined by the board of trustees.
(b) As determined by the board of trustees, a member of the board of trustees may participate in a group insurance plan provided to employees of the special district on the same basis as employees of the special district.
(c) The amount that a special district pays employer-matching employment taxes, if a member of the board of trustees is treated as an employee for federal tax purposes, does not constitute compensation under this Subsection (1).
(2) Before a board of trustees may adopt a compensation increase for a member of the board of trustees, the board of trustees shall:
(a) hold a public hearing on the compensation increase; and
(b) publish notice of the time, place, and purpose of the public hearing:
(i) for at least seven days before the date of the hearing; and
(ii) as class A notice under Section 63G-30-102.
(3) A public hearing described in Subsection (2)(a):
(a) shall be held separately from any other public hearing of the board of trustees; and
(b) may be held the same day as another public hearing of the board of trustees, including immediately before or after the other public meeting of the board of trustees.
(4) In addition to the compensation provided under Subsection (1), the board of trustees may elect to allow a member to receive per diem and travel expenses for up to 12 meetings or activities per year in accordance with rules adopted by the board of trustees or Section 11-55-103.
(1) If a county or municipal legislative body also serves as the board of trustees of a special district:
(a) the board of trustees shall hold district meetings and keep district minutes, accounts, and other records separate from those of the county or municipality;
(b) subject to Subsection (2), the board of trustees may use, respectively, existing county or municipal facilities and personnel for district purposes;
(c) notwithstanding Subsections 17B-1-303(1) and (2), the term of office of each board of trustees member coincides with the member's term as a county or municipal legislative body member;
(d) each board of trustees member represents the district at large; and
(e) board members may not receive compensation for service as board members in addition to compensation the board members receive as members of a county or municipal legislative body.
(2) The county or municipal legislative body, as the case may be, shall charge the special district, and the special district shall pay to the county or municipality, a reasonable amount for:
(a) the county or municipal facilities that the district uses; and
(b) except for services that the county or municipal legislative body members render, the services that the county or municipality renders to the special district.
(1)
(a) The board of trustees shall elect from their number a chair and may elect other officers as the board considers appropriate.
(b) The offices of treasurer and clerk may not be held by the same person.
(2) Each officer serves at the pleasure of the board of trustees, but the board may designate a set term for officers.
(1)
(a)
(i) Except as provided in Subsection (1)(b), a majority of the board of trustees constitutes a quorum for the transaction of board business, and action by a majority of a quorum constitutes action of the board.
(ii) Except as otherwise required by law, an otherwise valid action of the board is not made invalid because of the method chosen by the board to take or memorialize the action.
(b)
(i) Subject to Subsection (1)(b)(ii), a board may adopt bylaws or other rules that require more than a majority to constitute a quorum or that require action by more than a majority of a quorum to constitute action by the board.
(ii) A board with five or more members may not adopt bylaws or rules that require a vote of more than two-thirds of the board to constitute board action except for a board action to dispose of real property owned by the special district.
(2) The board of trustees shall hold such regular and special meetings as the board determines at a location that the board determines.
(3)
(a) Each meeting of the board of trustees shall comply with Title 52, Chapter 4, Open and Public Meetings Act.
(b) Subject to Subsection (3)(c), a board of trustees shall:
(i) adopt rules of order and procedure to govern a public meeting of the board of trustees;
(ii) conduct a public meeting in accordance with the rules of order and procedure described in Subsection (3)(b)(i); and
(iii) make the rules of order and procedure described in Subsection (3)(b)(i) available to the public:
(A) at each meeting of the board of trustees; and
(B) on the special district's public website, if available.
(c) Subsection (3)(b) does not affect the board of trustees' duty to comply with Title 52, Chapter 4, Open and Public Meetings Act.
(1) No elected or appointed member of the board of trustees of a special district may, while serving on the board, be employed by the district, whether as an employee or under a contract.
(2) No person employed by a special district, whether as an employee or under a contract, may serve on the board of that special district.
(3) A special district is not in violation of a prohibition described in Subsection (1) or (2) if the special district:
(a) treats a member of a board of trustees as an employee for income tax purposes; and
(b) complies with the compensation limits of Section 17B-1-307 for purposes of that member.
(4) This section does not apply to a special district if:
(a) fewer than 3,000 people in the state live within 40 miles of the special district's boundaries or primary place of employment, measured over all weather public roads; and
(b) with respect to the employment of a board of trustees member under Subsection (1):
(i) the job opening has had reasonable public notice; and
(ii) the person employed is the best qualified candidate for the position.
(5) This section does not apply to a transit commission of a large public transit district as described in Chapter 2a, Part 8, Public Transit District Act.
(1)
(a) Each member of a board of trustees of a special district shall, within one year after taking office, complete the training described in Subsection (2).
(b) For the purposes of Subsection (1)(a), a member of a board of trustees of a special district takes office each time the member is elected or appointed to a new term, including an appointment to fill a midterm vacancy in accordance with Subsection 17B-1-303(5) or (6).
(2) In conjunction with the Utah Association of Special Districts, the state auditor shall:
(a) develop a training curriculum for the members of special district boards;
(b) with the assistance of other state offices and departments the state auditor considers appropriate and at times and locations established by the state auditor, carry out the training of members of special district boards; and
(c) ensure that any training required under this Subsection (2) complies with Title 63G, Chapter 22, State Training and Certification Requirements.
(3)
(a) A special district board of trustees may compensate each member of the board for each day of training described in Subsection (2) that the member completes, in accordance with Section 11-55-103.
(b) The compensation authorized under Subsection (3)(a) is in addition to all other amounts of compensation and expense reimbursement authorized under this chapter.
(c) A board of trustees may not pay compensation under Subsection (3)(a) to any board member more than once per year.
(4) The state auditor shall issue a certificate of completion to each board member that completes the training described in Subsection (2).
(1) After the board of trustees of a special district adopts a resolution or takes other action on behalf of the district, the board may provide for the publication of a notice of the resolution or other action.
(2) Each notice under Subsection (1) shall:
(a) include, as the case may be:
(i) the language of the resolution or a summary of the resolution; or
(ii) a description of the action taken by the board;
(b) state that:
(i) any person in interest may file an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to contest the regularity, formality, or legality of the resolution or action within 30 days after the date of publication; and
(ii) if the resolution or action is not contested by filing an action in a court within the 30-day period, no one may contest the regularity, formality, or legality of the resolution or action after the expiration of the 30-day period; and
(c) be published for the special district, as a class A notice under Section 63G-30-102, for at least 30 days.
(3) For a period of 30 days after the date of the publication, any person in interest may contest the regularity, formality, or legality of the resolution or other action by filing an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration.
(4) After the expiration of the 30-day period under Subsection (3), no one may contest the regularity, formality, or legality of the resolution or action for any cause.
The board of trustees of a special district may:
(1) compel the attendance of its own members at its meetings; and
(2) provide penalties it considers necessary for the failure to attend.
As used in this part:
(1) "Applicable area" means:
(a) for a county, the unincorporated area of the county that is included within the area proposed for annexation; or
(b) for a municipality, the area of the municipality that is included within the area proposed for annexation.
(2) "Retail" means, with respect to a service provided by a municipality or special district, that the service is provided directly to the ultimate user.
(3) "Wholesale" means, with respect to a service provided by a special district, that the service is not provided directly to the ultimate user but is provided to a retail provider.
(1) An area outside the boundaries of a special district may be annexed to the special district, as provided in this part, in order to provide to the area a service that the special district provides.
(2) The area proposed to be annexed:
(a) may consist of one or more noncontiguous areas; and
(b) need not be adjacent to the boundaries of the proposed annexing special district.
(3) With respect to a special district in the creation of which an election was not required under Subsection 17B-1-214(3)(d):
(a) an unincorporated area of a county may not be annexed to the special district unless, after annexation, at least a majority of the unincorporated area of the county will be included in the special district; and
(b) the annexation of any part of an area within a municipality shall include all of the area within the municipality.
(4) A special district may not annex an area located within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, without the authority's approval.
(1) Except as provided in Sections 17B-1-415, 17B-1-416, and 17B-1-417, the process to annex an area to a special district may be initiated by a petition, as provided in Subsection (2), or a resolution, as provided in Subsection (3).
(2)
(a) For a district whose board of trustees is elected by electors based on the acre-feet of water allotted to the land owned by the elector and subject to Subsection (4), the process to annex an area to the special district is initiated by a petition signed by the owners of all of the acre-feet of water allotted to the land proposed for annexation.
(b) For an infrastructure financing district, the process to annex an area to the infrastructure financing district is initiated by a petition signed by 100% of the owners of all surface property within the area proposed for annexation that is within the designated expansion area, as defined in Section 17D-5-101.
(c) For all other districts, the process to annex an area to the special district may be initiated by a petition signed by:
(i) the owners of private real property that:
(A) is located within the area proposed to be annexed;
(B) covers at least 10% of the total private land area within the entire area proposed to be annexed and within each applicable area; and
(C) is equal in assessed value to at least 10% of the assessed value of all private real property within the entire area proposed to be annexed and within each applicable area;
(ii) the owner of all the publicly owned real property, if all the real property within the area proposed for annexation is owned by a public entity other than the federal government; or
(iii) registered voters residing within the entire area proposed to be annexed and within each applicable area equal in number to at least 10% of the number of votes cast within the entire area proposed to be annexed and within each applicable area, respectively, for the office of governor at the last regular general election before the filing of the petition.
(3) The process to annex an area to a special district may be initiated by:
(a) a resolution adopted by the legislative body of each county whose unincorporated area includes and each municipality whose boundaries include any of the area proposed to be annexed; or
(b) a resolution adopted by the board of trustees of the proposed annexing special district if, for at least 12 consecutive months immediately preceding adoption of the resolution, the special district has provided:
(i) retail service to the area; or
(ii) a wholesale service to a provider of the same service that has provided that service on a retail basis to the area.
(4) If an association representing all acre-feet of water allotted to the land that is proposed to be annexed to a special district signs a petition under Subsection (2)(a), pursuant to a proper exercise of authority as provided in the bylaws or other rules governing the association, the petition shall be considered to have been signed by the owners of all of the acre-feet of water allotted to the land proposed for annexation, even though less than all of the owners within the association consented to the association signing the petition.
(5) Each petition under Subsection (2) and resolution under Subsection (3) shall:
(a) describe the area proposed to be annexed; and
(b) be accompanied by a map of the boundaries of the area proposed to be annexed.
(6) The legislative body of each county and municipality that adopts a resolution under Subsection (3) shall, within five days after adopting the resolution, mail or deliver a copy of the resolution to the board of trustees of the proposed annexing special district.
(1) Each petition under Subsection 17B-1-403(2) shall:
(a) indicate the typed or printed name and current residence address of each person signing the petition;
(b) separately group signatures by county and municipality, so that all signatures of the owners of real property located within or of registered voters residing within each county whose unincorporated area includes and each municipality whose boundaries include part of the area proposed for annexation are grouped separately;
(c) if it is a petition under Subsection 17B-1-403(2)(a) or (2)(c)(i) or (ii), indicate the address of the property as to which the owner is signing the petition;
(d) designate up to three signers of the petition as sponsors, one of whom shall be designated the contact sponsor, with the mailing address and telephone number of each;
(e) be filed with the board of trustees of the proposed annexing special district; and
(f) for a petition under Subsection 17B-1-403(2)(a), state the proposed method of supplying water to the area proposed to be annexed.
(2) By submitting a written withdrawal or reinstatement with the board of trustees of the proposed annexing special district, a signer of a petition may withdraw, or once withdrawn, reinstate the signer's signature at any time:
(a)
(i) before the public hearing under Section 17B-1-409 is held; or
(ii) if a hearing is not held because of Subsection 17B-1-413(1) or because no hearing is requested under Subsection 17B-1-413(2)(a)(ii)(B), until 20 days after the special district provides notice under Subsection 17B-1-413(2)(a)(i); or
(b) for an infrastructure financing district, before the board of trustees adopts a resolution approving the annexation.
(1) Within 30 days after the filing of a petition under Subsection 17B-1-403(2) or within the time that the special district and each petition sponsor designate by written agreement, the board of trustees of the proposed annexing special district shall:
(a) with the assistance of officers of the county in which the area proposed to be annexed is located from whom the board requests assistance, determine whether the petition meets the requirements of Subsection 17B-1-403(2)(a), (b), or (c), as the case may be, Subsection 17B-1-403(5), and Subsection 17B-1-404(1); and
(b)
(i) if the board determines that the petition complies with the requirements, certify the petition and mail or deliver written notification of the certification to the contact sponsor; or
(ii) if the board determines that the petition fails to comply with any of the requirements, reject the petition and mail or deliver written notification of the rejection and the reasons for the rejection to the contact sponsor.
(2)
(a) If the board rejects a petition under Subsection (1)(b)(ii), the petition may be amended to correct the deficiencies for which it was rejected and then refiled.
(b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be used toward fulfilling the applicable signature requirement of the petition as amended under Subsection (2)(a).
(3) The board shall process an amended petition filed under Subsection (2)(a) in the same manner as an original petition under Subsection (1).
Sections 17B-1-406, 17B-1-407, 17B-1-408, 17B-1-409, 17B-1-410, 17B-1-411, 17B-1-412, and 17B-1-413 do not apply to a proposed annexation to an infrastructure financing district.
(1) Except as provided in Subsection (2), within 10 days after certifying a petition under Subsection 17B-1-405(1)(b) the board of trustees of the proposed annexing special district shall mail or deliver a written notice of the proposed annexation, with a copy of the certification and a copy of the petition, to the legislative body of each:
(a) county in whose unincorporated area any part of the area proposed for annexation is located; and
(b) municipality in which any part of the area proposed for annexation is located.
(2) The board is not required to send a notice under Subsection (1) to:
(a) a county or municipality that does not provide the service proposed to be provided by the special district; or
(b) a county or municipality whose legislative body has adopted an ordinance or resolution waiving the notice requirement as to:
(i) the proposed annexing special district; or
(ii) the service that the proposed annexing special district provides.
(3) For purposes of this section, an area proposed to be annexed to a municipality in a petition under Section 10-2-403 filed before and still pending at the time of the filing of a petition under Subsection 17B-1-403(2)(a) or (c) and an area included within a municipality's annexation policy plan under Section 10-2-401.5 shall be considered to be part of that municipality.
(1)
(a) If the legislative body of a county or municipality whose applicable area is proposed to be annexed to a special district in a petition under Subsection 17B-1-403(2)(a) or (c) intends to consider having the county or municipality, respectively, provide to the applicable area the service that the proposed annexing special district provides, the legislative body shall, within 30 days after receiving the notice under Subsection 17B-1-406(1), mail or deliver a written notice to the board of trustees of the proposed annexing special district indicating that intent.
(b)
(i) A notice of intent under Subsection (1)(a) suspends the special district's annexation proceeding as to the applicable area of the county or municipality that submits the notice of intent until the county or municipality:
(A) adopts a resolution under Subsection 17B-1-408(1) declining to provide the service proposed to be provided by the proposed annexing special district; or
(B) is considered under Subsection 17B-1-408(2) or (3) to have declined to provide the service.
(ii) The suspension of an annexation proceeding under Subsection (1)(b)(i) as to an applicable area does not prevent the special district from continuing to pursue the annexation proceeding with respect to other applicable areas for which no notice of intent was submitted.
(c) If a legislative body does not mail or deliver a notice of intent within the time required under Subsection (1)(a), the legislative body shall be considered to have declined to provide the service.
(2) Each legislative body that mails or delivers a notice under Subsection (1)(a) shall hold a public hearing or a set of public hearings, sufficient in number and location to ensure that no substantial group of residents of the area proposed for annexation need travel an unreasonable distance to attend a public hearing.
(3) Each public hearing under Subsection (2) shall be held:
(a) no later than 45 days after the legislative body sends notice under Subsection (1);
(b) except as provided in Subsections (6) and (7), within the applicable area; and
(c) for the purpose of allowing public input on:
(i) whether the service is needed in the area proposed for annexation;
(ii) whether the service should be provided by the county or municipality or the proposed annexing special district; and
(iii) all other matters relating to the issue of providing the service or the proposed annexation.
(4) A quorum of the legislative body of each county or municipal legislative body holding a public hearing under this section shall be present throughout each hearing held by that county or municipal legislative body.
(5) Each hearing under this section shall be held on a weekday evening other than a holiday beginning no earlier than 6 p.m.
(6) Two or more county or municipal legislative bodies may jointly hold a hearing or set of hearings required under this section if all the requirements of this section, other than the requirements of Subsection (3)(b), are met as to each hearing.
(7) Notwithstanding Subsection (3)(b), a county or municipal legislative body may hold a public hearing or set of public hearings outside the applicable area if:
(a) there is no reasonable place to hold a public hearing within the applicable area; and
(b) the public hearing or set of public hearings is held as close to the applicable area as reasonably possible.
(8) Before holding a public hearing or set of public hearings under this section, the legislative body of each county or municipality that receives a request for service shall provide notice of the hearing or set of hearings as provided in Section 17B-1-211.
(1) Within 30 days after the last hearing required under Section 17B-1-407 is held, the legislative body of each county and municipality that sent a notice of intent under Subsection 17B-1-407(1) shall adopt a resolution indicating whether the county or municipality will provide to the area proposed for annexation within its boundaries the service proposed to be provided by the proposed annexing special district.
(2) If the county or municipal legislative body fails to adopt a resolution within the time provided under Subsection (1), the county or municipality shall be considered to have declined to provide the service.
(3) If a county or municipal legislative body adopts a resolution under Subsection (1) indicating that the county or municipality will provide the service but the county or municipality does not, within 120 days after the adoption of that resolution, take substantial measures to provide the service, the county or municipality shall be considered to have declined to provide the service.
(4) Each county or municipality whose legislative body adopts a resolution under Subsection (1) indicating that the county or municipality will provide the service shall diligently proceed to take all measures necessary to provide the service.
(5) If a county or municipal legislative body adopts a resolution under Subsection (1) indicating that the county or municipality will provide the service and the county or municipality takes substantial measures within the time provided in Subsection (3) to provide the service, the special district's annexation proceeding as to the applicable area of that county or municipality is terminated and that applicable area is considered deleted from the area proposed to be annexed in a petition under Subsection 17B-1-403(2)(a) or (c).
(1) Except as provided in Sections 17B-1-413 and 17B-1-415, the board of trustees of each special district that certifies a petition that was filed under Subsection 17B-1-403(2)(c), receives a resolution adopted under Subsection 17B-1-403(3)(a), or adopts a resolution under Subsection 17B-1-403(3)(b) shall hold a public hearing on the proposed annexation and provide notice of the hearing as provided in Section 17B-1-410.
(2) Each public hearing under Subsection (1) shall be held:
(a) within 45 days after:
(i) if no notice to a county or municipal legislative body is required under Section 17B-1-406, petition certification under Section 17B-1-405; or
(ii) if notice is required under Section 17B-1-406, but no notice of intent is submitted by the deadline:
(A) expiration of the deadline under Subsection 17B-1-407(1) to submit a notice of intent; or
(B) termination of a suspension of the annexation proceeding under Subsection 17B-1-407(1)(b);
(b)
(i) for a special district located entirely within a single county:
(A) within or as close as practicable to the area proposed to be annexed; or
(B) at the special district office; or
(ii) for a special district located in more than one county:
(A)
(I) within the county in which the area proposed to be annexed is located; and
(II) within or as close as practicable to the area proposed to be annexed; or
(B) if the special district office is reasonably accessible to all residents within the area proposed to be annexed, at the special district office;
(c) on a weekday evening other than a holiday beginning no earlier than 6 p.m.; and
(d) for the purpose of allowing:
(i) the public to ask questions and obtain further information about the proposed annexation and issues raised by it; and
(ii) any interested person to address the board regarding the proposed annexation.
(3) A quorum of the board of trustees of the proposed annexing special district shall be present throughout each public hearing held under this section.
(4)
(a) After holding a public hearing under this section or, if no hearing is held because of application of Subsection 17B-1-413(2)(a)(ii), after expiration of the time under Subsection 17B-1-413(2)(a)(ii)(B) for requesting a hearing, the board of trustees may by resolution deny the annexation and terminate the annexation procedure if:
(i) for a proposed annexation initiated by a petition under Subsection 17B-1-403(2)(a) or (c), the board determines that:
(A) it is not feasible for the special district to provide service to the area proposed to be annexed; or
(B) annexing the area proposed to be annexed would be inequitable to the owners of real property or residents already within the special district; or
(ii) for a proposed annexation initiated by resolution under Subsection 17B-1-403(3)(a) or (b), the board determines not to pursue annexation.
(b) In each resolution adopted under Subsection (4)(a), the board shall set forth its reasons for denying the annexation.
(1) Before holding a public hearing required under Section 17B-1-409, the board of trustees of each proposed annexing special district shall:
(a) mail notice of the public hearing and the proposed annexation to:
(i) if the special district is funded predominantly by revenues from a property tax, each owner of private real property located within the area proposed to be annexed, as shown upon the county assessment roll last equalized as of the previous December 31; or
(ii) if the special district is not funded predominantly by revenues from a property tax, each registered voter residing within the area proposed to be annexed, as determined by the voter registration list maintained by the county clerk as of a date selected by the board of trustees that is at least 20 but not more than 60 days before the public hearing; and
(b) post notice of the public hearing and the proposed annexation in at least four conspicuous places within the area proposed to be annexed, no less than 10 and no more than 30 days before the public hearing.
(2) Each notice required under Subsection (1) shall:
(a) describe the area proposed to be annexed;
(b) identify the proposed annexing special district;
(c) state the date, time, and location of the public hearing;
(d) provide a special district telephone number where additional information about the proposed annexation may be obtained;
(e) specify the estimated financial impact, in terms of taxes and fees, upon the typical resident and upon the typical property owner within the area proposed to be annexed if the proposed annexation is completed; and
(f) except for a proposed annexation under a petition that meets the requirements of Subsection 17B-1-413(1), explain that property owners and registered voters within the area proposed to be annexed may protest the annexation by filing a written protest with the special district board of trustees within 30 days after the public hearing.
(1)
(a) Subject to Subsections (2), (3), (4), and (5), a board of trustees may, within 30 days after the public hearing under Section 17B-1-409, or, if no public hearing is held, within 30 days after the board provides notice under Subsection 17B-1-413(2)(a)(i), modify the area proposed for annexation to include land not previously included in that area or to exclude land from that area if the modification enhances the feasibility of the proposed annexation.
(b) A modification under Subsection (1)(a) may consist of the exclusion of all the land within an applicable area if:
(i) the entire area proposed to be annexed consists of more than that applicable area;
(ii) sufficient protests under Section 17B-1-412 are filed with respect to that applicable area that an election would have been required under Subsection 17B-1-412(3) if that applicable area were the entire area proposed to be annexed; and
(iii) the other requirements of Subsection (1)(a) are met.
(2) A board of trustees may not add property under Subsection (1) to the area proposed for annexation without the consent of the owner of that property.
(3) Except as provided in Subsection (1)(b), a modification under Subsection (1) may not avoid the requirement for an election under Subsection 17B-1-412(3) if, before the modification, the election was required because of protests filed under Section 17B-1-412.
(4) If the annexation is proposed by a petition under Subsection 17B-1-403(2)(c), a modification may not be made unless the requirements of Subsection 17B-1-403(2)(c) are met after the modification as to the area proposed to be annexed.
(5) If the petition meets the requirements of Subsection 17B-1-413(1) before a modification under this section but fails to meet those requirements after modification:
(a) the special district board shall give notice as provided in Section 17B-1-410 and hold a public hearing as provided in Section 17B-1-409 on the proposed annexation; and
(b) the petition shall be considered in all respects as one that does not meet the requirements of Subsection 17B-1-413(1).
(1)
(a) An owner of private real property located within or a registered voter residing within an area proposed to be annexed may protest an annexation by filing a written protest with the board of trustees of the proposed annexing special district, except:
(i) as provided in Section 17B-1-413;
(ii) for an annexation under Section 17B-1-415; and
(iii) for an annexation proposed by a special district that receives sales and use tax funds from the counties, cities, and towns within the special district that impose a sales and use tax under Section 59-12-2213.
(b) A protest of a boundary adjustment is not governed by this section but is governed by Section 17B-1-417.
(2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of the public hearing under Section 17B-1-409.
(3)
(a) Except as provided in Subsection (4), the special district shall hold an election on the proposed annexation if:
(i) timely protests are filed by:
(A) the owners of private real property that:
(I) is located within the area proposed to be annexed;
(II) covers at least 10% of the total private land area within the entire area proposed to be annexed and within each applicable area; and
(III) is equal in assessed value to at least 10% of the assessed value of all private real property within the entire area proposed to be annexed and within each applicable area; or
(B) registered voters residing within the entire area proposed to be annexed and within each applicable area equal in number to at least 10% of the number of votes cast within the entire area proposed for annexation and within each applicable area, respectively, for the office of governor at the last regular general election before the filing of the petition; or
(ii) the proposed annexing special district is one that receives sales and use tax funds from the counties, cities, and towns within the special district that impose a sales and use tax under Section 59-12-2213.
(b)
(i) At each election held under Subsection (3)(a)(ii), the ballot question shall be phrased to indicate that a voter's casting a vote for or against the annexation includes also a vote for or against the imposition of the sales and use tax as provided in Section 59-12-2213.
(ii) Except as otherwise provided in this part, each election under Subsection (3)(a) shall be governed by Title 20A, Election Code.
(c) If a majority of registered voters residing within the area proposed to be annexed and voting on the proposal vote:
(i) in favor of annexation, the board of trustees shall, subject to Subsections 17B-1-414(1)(b), (2), and (3), complete the annexation by adopting a resolution approving annexation of the area; or
(ii) against annexation, the annexation process is terminated, the board may not adopt a resolution approving annexation of the area, and the area proposed to be annexed may not for two years be the subject of an effort under this part to annex to the same special district.
(4) If sufficient protests are filed under this section to require an election for a proposed annexation to which the protest provisions of this section are applicable, a board of trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and terminating the annexation process without holding an election.
(1) Section 17B-1-412 does not apply, and, except as provided in Subsection (2)(a), Sections 17B-1-409 and 17B-1-410 do not apply:
(a) if the process to annex an area to a special district was initiated by:
(i) a petition under Subsection 17B-1-403(2)(a);
(ii) a petition under Subsection 17B-1-403(2)(c)(i) or (ii) that was signed by the owners of private real property that:
(A) is located within the area proposed to be annexed;
(B) covers at least 75% of the total private land area within the entire area proposed to be annexed and within each applicable area; and
(C) is equal in assessed value to at least 75% of the assessed value of all private real property within the entire area proposed to be annexed and within each applicable area; or
(iii) a petition under Subsection 17B-1-403(2)(c)(iii) that was signed by registered voters residing within the entire area proposed to be annexed and within each applicable area equal in number to at least 75% of the number of votes cast within the entire area proposed to be annexed and within each applicable area, respectively, for the office of governor at the last regular general election before the filing of the petition;
(b) to an annexation under Section 17B-1-415; or
(c) to a boundary adjustment under Section 17B-1-417.
(2)
(a) If a petition that meets the requirements of Subsection (1)(a) is certified under Section 17B-1-405, the special district board:
(i) shall provide notice of the proposed annexation as provided in Subsection (2)(b); and
(ii)
(A) may, in the board's discretion, hold a public hearing as provided in Section 17B-1-409 after giving notice of the public hearing as provided in Subsection (2)(b); and
(B) shall, after giving notice of the public hearing as provided in Subsection (2)(b), hold a public hearing as provided in Section 17B-1-409 if a written request to do so is submitted, within 20 days after the special district provides notice under Subsection (2)(a)(i), to the special district board by an owner of property that is located within or a registered voter residing within the area proposed to be annexed who did not sign the annexation petition.
(b) The notice required under Subsections (2)(a)(i) and (ii) shall:
(i) be given:
(A)
(I) for a notice under Subsection (2)(a)(i), within 30 days after petition certification; or
(II) for a notice of a public hearing under Subsection (2)(a)(ii), at least 10 but not more than 30 days before the public hearing; and
(B) by providing notice, as a class A notice under Section 63G-30-102, for the area proposed to be annexed, through the day of the public hearing; and
(ii) contain a brief explanation of the proposed annexation and include the name of the special district, the service provided by the special district, a description or map of the area proposed to be annexed, a special district telephone number where additional information about the proposed annexation may be obtained, and, for a notice under Subsection (2)(a)(i), an explanation of the right of a property owner or registered voter to request a public hearing as provided in Subsection (2)(a)(ii)(B).
(c) A notice under Subsection (2)(a)(i) may be combined with the notice that is required for a public hearing under Subsection (2)(a)(ii)(A).
(1)
(a) Subject to Subsection (1)(b), the special district board shall adopt a resolution approving the annexation of the area proposed to be annexed or rejecting the proposed annexation within 90 days after:
(i) expiration of the protest period under Subsection 17B-1-412(2), if sufficient protests to require an election are not filed;
(ii) for a petition that meets the requirements of Subsection 17B-1-413(1):
(A) a public hearing under Section 17B-1-409 is held, if the board chooses or is required to hold a public hearing under Subsection 17B-1-413(2)(a)(ii); or
(B) expiration of the time for submitting a request for public hearing under Subsection 17B-1-413(2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public hearing; or
(iii) for a proposed annexation to an infrastructure financing district, the board's certification of the annexation petition under Section 17B-1-405.
(b) If the special district has entered into an agreement with the United States that requires the consent of the United States for an annexation of territory to the district, a resolution approving annexation under this part may not be adopted until the written consent of the United States is obtained and filed with the board of trustees.
(2)
(a)
(i) Within the time specified under Subsection (2)(a)(ii), the board shall file with the lieutenant governor:
(A) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3) and, if applicable, Subsection (2)(b); and
(B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(ii) The board shall file the documents listed in Subsection (2)(a)(i) with the lieutenant governor:
(A) within 30 days after adoption of a resolution under Subsection (1), Subsection 17B-1-412(3)(c)(i), or Section 17B-1-415; and
(B) as soon as practicable after receiving the notice under Subsection 10-2-425(3) of a municipal annexation that causes an automatic annexation to a special district under Section 17B-1-416.
(b) For an automatic annexation to a special district under Section 17B-1-416, the notice of an impending boundary action required under Subsection (2)(a) shall state that an area outside the boundaries of the special district is being automatically annexed to the special district under Section 17B-1-416 because of a municipal annexation under Title 10, Chapter 2, Part 8, Annexation, or a boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments.
(c) Upon the lieutenant governor's issuance of a certificate of annexation under Section 67-1a-6.5, the board shall:
(i) if the annexed area is located within the boundary of a single county, submit to the recorder of that county:
(A) the original:
(I) notice of an impending boundary action;
(II) certificate of annexation; and
(III) approved final local entity plat; and
(B) a certified copy of the annexation resolution; or
(ii) if the annexed area is located within the boundaries of more than a single county:
(A) submit to the recorder of one of those counties:
(I) the original of the documents listed in Subsections (2)(c)(i)(A)(I), (II), and (III); and
(II) a certified copy of the annexation resolution; and
(B) submit to the recorder of each other county:
(I) a certified copy of the documents listed in Subsection (2)(c)(i)(A)(I), (II), and (III); and
(II) a certified copy of the annexation resolution.
(3)
(a) As used in this Subsection (3), "fire district annexation" means an annexation under this part of an area located in a county of the first class to a special district:
(i) created to provide fire protection, paramedic, and emergency services; and
(ii) in the creation of which an election was not required because of Subsection 17B-1-214(3)(d).
(b) An annexation under this part is complete and becomes effective:
(i)
(A) on July 1 for a fire district annexation, if the lieutenant governor issues the certificate of annexation under Section 67-1a-6.5 from January 1 through June 30; or
(B) on January 1 for a fire district annexation, if the lieutenant governor issues the certificate of annexation under Section 67-1a-6.5 from July 1 through December 31; or
(ii) upon the lieutenant governor's issuance of the certificate of annexation under Section 67-1a-6.5, for any other annexation.
(c)
(i) The effective date of a special district annexation for purposes of assessing property within the annexed area is governed by Section 59-2-305.5.
(ii) Until the documents listed in Subsection (2)(c) are recorded in the office of the recorder of each county in which the property is located, a special district may not:
(A) levy or collect a property tax on property within the annexed area;
(B) levy or collect an assessment on property within the annexed area; or
(C) charge or collect a fee for service provided to property within the annexed area.
(iii) Subsection (3)(c)(ii)(C):
(A) may not be construed to limit a special district's ability before annexation to charge and collect a fee for service provided to property that is outside the special district's boundary; and
(B) does not apply until 60 days after the effective date, under Subsection (3)(b), of the special district's annexation, with respect to a fee that the special district was charging for service provided to property within the annexed area immediately before the area was annexed to the special district.
(1)
(a) A special district that provides a wholesale service may adopt a resolution approving the annexation of an area outside the special district's boundaries if:
(i) the area is annexed by or otherwise added to, or is added to the retail service area of, a municipality or another special district that:
(A) acquires the wholesale service from the special district and provides it as a retail service;
(B) is, before the annexation or other addition, located at least partly within the special district; and
(C) after the annexation or other addition will provide to the annexed or added area the same retail service that the special district provides as a wholesale service to the municipality or other special district; and
(ii) except as provided in Subsection (2), no part of the area is within the boundaries of another special district that provides the same wholesale service as the proposed annexing special district.
(b) For purposes of this section:
(i) a special district providing public transportation service shall be considered to be providing a wholesale service; and
(ii) a municipality included within the boundaries of the special district providing public transportation service shall be considered to be acquiring that wholesale service from the special district and providing it as a retail service and to be providing that retail service after the annexation or other addition to the annexed or added area, even though the municipality does not in fact provide that service.
(2) Notwithstanding Subsection (1)(a)(ii), an area outside the boundaries of a special district providing a wholesale service and located partly or entirely within the boundaries of another special district that provides the same wholesale service may be annexed to the special district if:
(a) the conditions under Subsection (1)(a)(i) are present; and
(b) the proposed annexing special district and the other special district follow the same procedure as is required for a boundary adjustment under Section 17B-1-417, including both district boards adopting a resolution approving the annexation of the area to the proposed annexing special district and the withdrawal of that area from the other district.
(3) A special district that provides transportation services may adopt a resolution approving the annexation of the area outside of the special district's boundaries if:
(a) the area is within a county that has levied a sales and use tax under Section 59-12-2216; and
(b) the county legislative body has adopted a resolution approving the annexation of the areas outside of the special district.
(4) Upon the adoption of an annexation resolution under this section, the board of the annexing special district shall comply with the requirements of Subsection 17B-1-414(2), and the lieutenant governor shall issue a certificate of annexation and send a copy of notice as provided in Section 67-1a-6.5.
(5) Subsections 17B-1-414(2) and (3) apply to an annexation under this section.
(1) An area outside the boundaries of a special district that is annexed to a municipality under Title 10, Chapter 2, Part 8, Annexation, or added to a municipality by a boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments, is automatically annexed to the special district if:
(a) the special district provides:
(i) fire protection, paramedic, and emergency services; or
(ii) law enforcement service;
(b) the special district is located in a county of the first class, but not otherwise, an election for the creation of the special district was not required because of Subsection 17B-1-214(3)(d); and
(c) before the municipal annexation or boundary adjustment, the entire municipality that is annexing the area or adding the area by boundary adjustment was included within the special district.
(2) The effective date of an annexation under this section is governed by Subsection 17B-1-414(3)(b).
(1) As used in this section, "affected area" means the area located within the boundaries of one special district that will be removed from that special district and included within the boundaries of another special district because of a boundary adjustment under this section.
(2) The boards of trustees of two or more special districts having a common boundary and providing the same service on the same wholesale or retail basis may adjust their common boundary as provided in this section.
(3)
(a) The board of trustees of each special district intending to adjust a boundary that is common with another special district shall:
(i) adopt a resolution indicating the board's intent to adjust a common boundary;
(ii) hold a public hearing on the proposed boundary adjustment no less than 60 days after the adoption of the resolution under Subsection (3)(a)(i); and
(iii) provide notice for the affected area, as a class B notice under Section 63G-30-102, for at least two weeks before the day of the public hearing.
(b) The notice required under Subsection (3)(a)(iii) shall:
(i) state that the board of trustees of the special district has adopted a resolution indicating the board's intent to adjust a boundary that the special district has in common with another special district that provides the same service as the special district;
(ii) describe the affected area;
(iii) state the date, time, and location of the public hearing required under Subsection (3)(a)(ii);
(iv) provide a special district telephone number where additional information about the proposed boundary adjustment may be obtained;
(v) explain the financial and service impacts of the boundary adjustment on property owners or residents within the affected area; and
(vi) state in conspicuous and plain terms that the board of trustees may approve the adjustment of the boundaries unless, at or before the public hearing under Subsection (3)(a)(ii), written protests to the adjustment are filed with the board by:
(A) the owners of private real property that:
(I) is located within the affected area;
(II) covers at least 50% of the total private land area within the affected area; and
(III) is equal in assessed value to at least 50% of the assessed value of all private real property within the affected area; or
(B) registered voters residing within the affected area equal in number to at least 50% of the votes cast in the affected area for the office of governor at the last regular general election before the filing of the protests.
(c) The boards of trustees of the special districts whose boundaries are being adjusted may jointly:
(i) provide the notice required under Subsection (3)(a)(iii); and
(ii) hold the public hearing required under Subsection (3)(a)(ii).
(d) Subsections (3)(a)(ii) and (iii), (3)(b), and (3)(c) do not apply if signed, written consents to the boundary adjustment have been filed with the board from:
(i) the owners of 100% of the private real property located within the affected area; and
(ii) registered voters residing within the affected area equal in number to at least the number of votes cast in the affected area for the office of governor at the last regular general election.
(4) After the public hearing required under Subsection (3)(a)(ii) or if a hearing is not required under Subsection (3)(d), the board of trustees may adopt a resolution approving the adjustment of the common boundary unless, at or before the public hearing, written protests to the boundary adjustment have been filed with the board by:
(a) the owners of private real property that:
(i) is located within the affected area;
(ii) covers at least 50% of the total private land area within the affected area; and
(iii) is equal in assessed value to at least 50% of the assessed value of all private real property within the affected area; or
(b) registered voters residing within the affected area equal in number to at least 50% of the votes cast in the affected area for the office of governor at the last regular general election before the filing of the protests.
(5) A resolution adopted under Subsection (4) does not take effect until the board of each special district whose boundaries are being adjusted has adopted a resolution under Subsection (4).
(6) The board of the special district whose boundaries are being adjusted to include the affected area shall:
(a) within 30 days after the resolutions take effect under Subsection (5), file with the lieutenant governor:
(i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and
(b) upon the lieutenant governor's issuance of a certificate of boundary adjustment under Section 67-1a-6.5:
(i) if the affected area is located within the boundary of a single county, submit to the recorder of that county:
(A) the original:
(I) notice of an impending boundary action;
(II) certificate of boundary adjustment; and
(III) approved final local entity plat; and
(B) a certified copy of each resolution adopted under Subsection (4); or
(ii) if the affected area is located within the boundaries of more than a single county:
(A) submit to the recorder of one of those counties:
(I) the original of the documents listed in Subsections (6)(b)(i)(A)(I), (II), and (III); and
(II) a certified copy of each resolution adopted under Subsection (4); and
(B) submit to the recorder of each other county:
(I) a certified copy of the documents listed in Subsections (6)(b)(i)(A)(I), (II), and (III); and
(II) a certified copy of each resolution adopted under Subsection (4).
(7)
(a) Upon the lieutenant governor's issuance of a certificate of boundary adjustment under Section 67-1a-6.5, the affected area is annexed to the special district whose boundaries are being adjusted to include the affected area, and the affected area is withdrawn from the special district whose boundaries are being adjusted to exclude the affected area.
(b)
(i) The effective date of a boundary adjustment under this section for purposes of assessing property within the affected area is governed by Section 59-2-305.5.
(ii) Until the documents listed in Subsection (6)(b) are recorded in the office of the recorder of the county in which the property is located, a special district in whose boundary an affected area is included because of a boundary adjustment under this section may not:
(A) levy or collect a property tax on property within the affected area;
(B) levy or collect an assessment on property within the affected area; or
(C) charge or collect a fee for service provided to property within the affected area.
(iii) Subsection (7)(b)(ii)(C):
(A) may not be construed to limit a special district's ability before a boundary adjustment to charge and collect a fee for service provided to property that is outside the special district's boundary; and
(B) does not apply until 60 days after the effective date, under Subsection (7)(a), of the special district's boundary adjustment, with respect to a fee that the special district was charging for service provided to property within the area affected by the boundary adjustment immediately before the boundary adjustment.
When an annexation under Section 17B-1-414 or 17B-1-415 or a boundary adjustment under Section 17B-1-417 is complete, the annexed area or the area affected by the boundary adjustment shall be subject to user fees imposed by and property, sales, and other taxes levied by or for the benefit of the special district.
As used in this part, "receiving entity" means the entity that will, after the withdrawal of an area from a special district, provide to the withdrawn area the service that the special district previously provided to the area.
(1)
(a) An area within the boundaries of a special district may be withdrawn from the special district only as provided in this part or, if applicable, as provided in Chapter 2a, Part 11, Municipal Services District Act.
(b) Except as provided in Subsections (2) and (3), the inclusion of an area of a special district within a municipality because of a municipal incorporation under Title 10, Chapter 2a, Municipal Incorporation, a municipal annexation under Title 10, Chapter 2, Part 8, Annexation, or a boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments, does not affect the requirements under this part for the process of withdrawing that area from the special district.
(2)
(a) An area within the boundaries of a special district is automatically withdrawn from the special district by the annexation of the area to a municipality under Title 10, Chapter 2, Part 8, Annexation, or the adding of the area to a municipality by boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments, if:
(i) the special district provides:
(A) fire protection, paramedic, and emergency services; or
(B) law enforcement service;
(ii) an election for the creation of the special district was not required because of Subsection 17B-1-214(3)(d) or (g); and
(iii) before annexation or boundary adjustment, the boundaries of the special district do not include any of the annexing municipality.
(b) The effective date of a withdrawal under this Subsection (2) is governed by Subsection 17B-1-512(2)(b).
(3)
(a) Except as provided in Subsection (3)(c) or (d), an area within the boundaries of a special district located in a county of the first class is automatically withdrawn from the special district by the incorporation of a municipality whose boundaries include the area if:
(i) the special district provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services;
(ii) an election for the creation of the special district was not required because of Subsection 17B-1-214(3)(g); and
(iii) the legislative body of the newly incorporated municipality:
(A) adopts a resolution no later than 180 days after the effective date of incorporation approving the withdrawal that includes the legal description of the area to be withdrawn; and
(B) delivers a copy of the resolution to the board of trustees of the special district.
(b) The effective date of a withdrawal under this Subsection (3) is governed by Subsection 17B-1-512(2)(a).
(c) Section 17B-1-505 governs the withdrawal of an area within a county of the first class if:
(i) the special district from which the area is withdrawn provides:
(A) fire protection, paramedic, and emergency services;
(B) law enforcement service; or
(C) municipal services, as defined in Section 17B-2a-1102;
(ii) an election for the creation of the special district was not required under Subsection 17B-1-214(3)(d) or (g); and
(iii) for a special district that provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services, the 180-day period described in Subsection (3)(a)(iii)(A) is expired.
(d) An area may not be withdrawn from a special district that provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services, if the area is within a converted municipality, as defined in Section 10-1-201.5.
(1) A municipality and a special district whose boundaries adjoin or overlap may adjust the boundary of the special district to include more or less of the municipality, including the expansion area identified in the annexation policy plan adopted by the municipality under Section 10-2-803, in the special district by following the same procedural requirements as set forth in Section 17B-1-417 for boundary adjustments between adjoining special districts.
(2)
(a) Notwithstanding any other provision of this title, a municipality annexing all or part of an unincorporated island or peninsula under Title 10, Chapter 2, Classification, Boundaries, Consolidation, and Dissolution of Municipalities, that overlaps a municipal services district organized under Chapter 2a, Part 11, Municipal Services District Act, may petition to withdraw the area from the municipal services district in accordance with this Subsection (2).
(b) For a valid withdrawal described in Subsection (2)(a):
(i) the annexation petition under Section 10-2-806 or a separate consent, signed by owners of at least 60% of the total private land area, shall state that the signers request the area to be withdrawn from the municipal services district; and
(ii) the legislative body of the municipality shall adopt a resolution, which may be the resolution adopted in accordance with Subsection 10-2-812(3)(a), stating the municipal legislative body's intent to withdraw the area from the municipal services district.
(c) The board of trustees of the municipal services district shall consider the municipality's petition to withdraw the area from the municipal services district within 90 days after the day on which the municipal services district receives the petition.
(d) The board of trustees of the municipal services district:
(i) may hold a public hearing in accordance with the notice and public hearing provisions of Section 17B-1-508;
(ii) shall consider information that includes any factual data presented by the municipality and any owner of private real property who signed a petition or other form of consent described in Subsection (2)(b)(i); and
(iii) identify in writing the information upon which the board of trustees relies in approving or rejecting the withdrawal.
(e) The board of trustees of the municipal services district shall approve the withdrawal, effective upon the annexation of the area into the municipality or, if the municipality has already annexed the area, as soon as possible in the reasonable course of events, if the board of trustees makes a finding that:
(i)
(A) the loss of revenue to the municipal services district due to a withdrawal of the area will be offset by savings associated with no longer providing municipal-type services to the area; or
(B) if the loss of revenue will not be offset by savings resulting from no longer providing municipal-type services to the area, the municipality agreeing to terms and conditions, which may include terms and conditions described in Subsection 17B-1-510(5), can mitigate or eliminate the loss of revenue;
(ii) the annexation petition under Section 10-2-806, or a separate petition meeting the same signature requirements, states that the signers request the area to be withdrawn from the municipal services district; or
(iii) the following have consented in writing to the withdrawal:
(A) owners of more than 60% of the total private land area; or
(B) owners of private land equal in assessed value to more than 60% of the assessed value of all private real property within the area proposed for withdrawal have consented in writing to the withdrawal.
(f) If the board of trustees of the municipal services district does not make any of the findings described in Subsection (2)(e), the board of trustees may approve or reject the withdrawal based upon information upon which the board of trustees relies and that the board of trustees identifies in writing.
(g)
(i) If a municipality annexes an island or a part of an island before May 14, 2019, the legislative body of the municipality may initiate the withdrawal of the area from the municipal services district by adopting a resolution that:
(A) requests that the area be withdrawn from the municipal services district; and
(B) a final local entity plat accompanies, identifying the area proposed to be withdrawn from the municipal services district.
(ii)
(A) Upon receipt of the resolution and except as provided in Subsection (2)(g)(ii)(B), the board of trustees of the municipal services district shall approve the withdrawal.
(B) The board of trustees of the municipal services district may reject the withdrawal if the rejection is based upon a good faith finding that lost revenues due to the withdrawal will exceed expected cost savings resulting from no longer serving the area.
(h)
(i) Based upon a finding described in Subsection (e) or (f):
(A) the board of trustees of the municipal services district shall adopt a resolution approving the withdrawal; and
(B) the chair of the board shall sign a notice of impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3).
(ii) The annexing municipality shall deliver the following to the lieutenant governor:
(A) the resolution and notice of impending boundary action described in Subsection (2)(g)(i);
(B) a copy of an approved final local entity plat as defined in Section 67-1a-6.5; and
(C) any other documentation required by law.
(i)
(i) Once the lieutenant governor has issued an applicable certificate as defined in Section 67-1a-6.5, the municipality shall deliver the certificate, the resolution and notice of impending boundary action described in Subsection (2)(h)(i), the final local entity plat as defined in Section 67-1a-6.5, and any other document required by law, to the recorder of the county in which the area is located.
(ii) After the municipality makes the delivery described in Subsection (2)(i)(i), the area, for all purposes, is no longer part of the municipal services district.
(j) The annexing municipality and the municipal services district may enter into an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, stating:
(i) the municipality's and the district's duties and responsibilities in conducting a withdrawal under this Subsection (2); and
(ii) any other matter respecting an unincorporated island that the municipality surrounds on all sides.
(3) After a boundary adjustment under Subsection (1) or a withdrawal under Subsection (2) is complete:
(a) the special district shall, without interruption, provide the same service to any area added to the special district as provided to other areas within the special district; and
(b) the municipality shall, without interruption, provide the same service that the special district previously provided to any area withdrawn from the special district.
(4) No area within a municipality may be added to the area of a special district under this section if the area is part of a special district that provides the same wholesale or retail service as the first special district.
(1) Except as provided in Section 17B-1-505, the process to withdraw an area from a special district may be initiated:
(a) for a special district funded predominantly by revenues from property taxes or service charges other than those based upon acre-feet of water:
(i) by a petition signed by the owners of private real property that:
(A) is located within the area proposed to be withdrawn;
(B) covers at least 51% of the total private land within the area proposed to be withdrawn; and
(C) is equal in taxable value to at least 51% of the taxable value of all private real property within the area proposed to be withdrawn;
(ii) by a petition signed by registered voters residing within the area proposed to be withdrawn equal in number to at least 67% of the number of votes cast in the same area for the office of governor at the last regular general election before the filing of the petition;
(iii) by a resolution adopted by the board of trustees of the special district in which the area proposed to be withdrawn is located, which:
(A) states the reasons for withdrawal; and
(B) is accompanied by a general description of the area proposed to be withdrawn; or
(iv) by a resolution to file a petition with the special district to withdraw from the special district all or a specified portion of the area within a municipality or county, adopted by the governing body of a municipality that has within municipal boundaries an area located within the boundaries of a special district, or by the governing body of a county that has within county boundaries an area located within the boundaries of a special district that is located in more than one county, which petition of the governing body shall be filed with the board of trustees only if a written request to petition the board of trustees to withdraw an area from the special district has been filed with the governing body of the municipality, or county, and the request has been signed by registered voters residing within the boundaries of the area proposed for withdrawal equal in number to at least 51% of the number of votes cast in the same area for the office of governor at the last regular general election before the filing of the petition;
(b) for a special district whose board of trustees is elected by electors based on the acre-feet of water allotted to the land owned by the elector:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the owners of at least 67% of the acre-feet of water allotted to the land proposed to be withdrawn;
(c) for a special district funded predominantly by revenues other than property taxes, service charges, or assessments based upon an allotment of acre-feet of water:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the registered voters residing within the entire area proposed to be withdrawn, which area shall be comprised of an entire unincorporated area within the special district or an entire municipality within a special district, or a combination thereof, equal in number to at least 67% of the number of votes cast within the entire area proposed to be withdrawn for the office of governor at the last regular general election before the filing of the petition; or
(d) for an infrastructure financing district, by a petition signed by 100% of the owners of all surface property within the area proposed to be withdrawn.
(2)
(a) Before soliciting any signatures on a petition under Subsection (1), the sponsors of the petition shall:
(i) notify the special district board with which the petition is intended to be filed that the sponsors will be soliciting signatures for a petition; and
(ii) mail a copy of the petition to the special district board.
(b) Subsection (2)(a) does not apply to a petition to withdraw an area from an infrastructure financing district.
(1) As used in this section:
(a) "County" means all of the unincorporated land in a county of the first class, as classified under Section 17-60-104, that is entirely within the boundary of a first responder district.
(b) "Eligible area" means:
(i) all of the unincorporated land in a county of the first class, as classified under Section 17-60-104, that is entirely within the boundary of a first responder district; or
(ii) all of a municipality that is entirely within the boundary of a qualified district.
(c) "First responder district" means a special district, other than a municipal services district, that provides:
(i) fire protection, paramedic, and emergency services; or
(ii) law enforcement service.
(d) "Legislative body" means:
(i) for an eligible area that is wholly within a municipality, the municipal legislative body; and
(ii) for an eligible area that is all of the unincorporated land in a county, the county legislative body.
(e) "Municipal services district" means a municipal services district formed under Chapter 2a, Part 11, Municipal Services District Act.
(f) "Qualified district" means:
(i) a first responder district; or
(ii) a municipal services district.
(2) This section provides the sole method of withdrawal of:
(a) a municipality that is entirely within the boundary of a first responder district from the first responder district;
(b) a municipality that is entirely within the boundary of a municipal services district from the municipal services district; and
(c) a county from a first responder district.
(3)
(a) The process to withdraw a municipality from a first responder district or municipal services district, or a county from a first responder district, may be initiated by a resolution adopted by a legislative body, subject to Subsection (3)(b).
(b) The legislative body of a municipality that is within a municipal services district may not adopt a resolution under Subsection (3)(a) to withdraw from the municipal services district unless the municipality has conducted a feasibility study in accordance with Section 17B-2a-1110.
(c) Within 10 days after adopting a resolution under Subsection (3)(a), the legislative body shall submit to the board of trustees of the qualified district written notice of the adoption of the resolution, accompanied by a copy of the resolution.
(4) If a resolution is adopted under Subsection (3)(a) by the legislative body of a municipality within a municipal services district, the municipal legislative body shall hold an election at the next municipal general election that is more than 180 days after adoption of the resolution on the question of whether the municipality should withdraw from the municipal services district.
(5)
(a) A municipality or county shall be withdrawn from a first responder district if:
(i) the legislative body governing the municipality or county adopts a resolution initiating the withdrawal under Subsection (3)(a); and
(ii)
(A) the legislative body of the municipality or county and the first responder district agree in writing to the withdrawal; or
(B) except as provided in Subsection (5)(b) and subject to Subsection (6), the voters residing in the eligible area approve the withdrawal at an election held for that purpose.
(b) An election under Subsection (5)(a)(ii)(B) is not required if, after a feasibility study is conducted under Section 17B-1-505.5 and a public hearing is held under Subsection 17B-1-505.5(14), the legislative body governing the eligible area and first responder district agree in writing to the withdrawal.
(6) An election under Subsection (5)(a)(ii)(B) may not be held unless:
(a) a feasibility study is conducted under Section 17B-1-505.5; and
(b)
(i) the feasibility study concludes that the withdrawal is functionally and financially feasible for the eligible area and the first responder district; or
(ii)
(A) the feasibility study concludes that the withdrawal would be functionally and financially feasible for the eligible area and the first responder district if conditions specified in the feasibility study are met; and
(B) the legislative body of the eligible area adopts a resolution irrevocably committing the eligible area to satisfying the conditions specified in the feasibility study, if the withdrawal is approved by the voters.
(7) If a majority of those voting on the question of withdrawal at an election held under Subsection (4) or (5)(a)(ii)(B) vote in favor of withdrawal, the eligible area shall be withdrawn from the qualified district.
(8)
(a) Within 10 days after the canvass of an election at which a withdrawal under this section is submitted to voters, the legislative body shall send written notice to the board of the qualified district from which the eligible area is proposed to withdraw.
(b) Each notice under Subsection (8)(a) shall:
(i) state the results of the withdrawal election; and
(ii) if the withdrawal was approved by voters, be accompanied by a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(9) The effective date of a withdrawal under this section is governed by Section 17B-1-512.
(1) As used in this section:
(a) "Eligible area" means the same as that term is defined in Section 17B-1-505.
(b) "Feasibility consultant" means a person with expertise in:
(i) the processes and economics of local government; and
(ii) the economics of providing fire protection, paramedic, and emergency services or law enforcement service.
(c) "Feasibility study" means a study to determine the functional and financial feasibility of a municipality's withdrawal from a first responder special district.
(d) "First responder district" means the same as that term is defined in Section 17B-1-505.
(e) "Withdrawing entity" means:
(i) a municipality whose legislative body has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of the municipality's withdrawal from a first responder district; or
(ii) a county whose legislative body has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of withdrawing all unincorporated areas of the county from a first responder district.
(2) This section applies and a feasibility study shall be conducted, as provided in this section, if:
(a) the legislative body of a withdrawing entity has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of the withdrawal from a first responder district;
(b) the withdrawing entity and first responder district have not agreed in writing to the withdrawal; and
(c) a feasibility study is a condition under Subsection 17B-1-505(6)(a) for an election to be held approving the withdrawal.
(3)
(a) As provided in this Subsection (3), the withdrawing entity and first responder district shall choose and engage a feasibility consultant to conduct a feasibility study.
(b) The withdrawing entity and first responder district shall jointly choose and engage a feasibility consultant according to applicable county, municipal, or special district procurement procedures.
(c)
(i) If the withdrawing entity and first responder district cannot agree on and have not engaged a feasibility consultant under Subsection (3)(b) within 45 days after the legislative body of the withdrawing entity submits written notice to the first responder district under Subsection 17B-1-505(3)(c), the withdrawing entity and first responder district shall, as provided in this Subsection (3)(c), choose a feasibility consultant from a list of at least eight feasibility consultants provided by the Utah Association of Certified Public Accountants.
(ii) A list of feasibility consultants under Subsection (3)(c)(i) may not include a feasibility consultant that has had a contract to provide services to the withdrawing entity or first responder district at any time during the two-year period immediately preceding the date the list is provided under Subsection (3)(c)(i).
(iii)
(A) Beginning with the first responder district, the first responder district and withdrawing entity shall alternately eliminate one feasibility consultant each from the list of feasibility consultants until one feasibility consultant remains.
(B) Within five days after receiving the list of consultants from the Utah Association of Certified Public Accountants, the first responder district shall make the first elimination of a feasibility consultant from the list and notify the withdrawing entity in writing of the elimination.
(C) After the first elimination of a feasibility consultant from the list, the withdrawing entity and first responder district shall each, within three days after receiving the written notification of the preceding elimination, notify the other in writing of the elimination of a feasibility consultant from the list.
(d) If a withdrawing entity and first responder district do not engage a feasibility consultant under Subsection (3)(b), the withdrawing entity and first responder district shall engage the feasibility consultant that has not been eliminated from the list at the completion of the process described in Subsection (3)(c).
(4) A feasibility consultant that conducts a feasibility study under this section shall be independent of and unaffiliated with the withdrawing entity and first responder district.
(5) In conducting a feasibility study under this section, the feasibility consultant shall consider:
(a) population and population density within the eligible area;
(b) current and five-year projections of demographics and economic base in the withdrawing entity, including household size and income, commercial and industrial development, and public facilities;
(c) projected growth in the withdrawing entity during the next five years;
(d) subject to Subsection (6)(a), the present and five-year projections of the cost, including overhead, of providing the same service in the withdrawing entity as is provided by the first responder district, including:
(i) the estimated cost if the first responder district continues to provide service; and
(ii) the estimated cost if the withdrawing entity provides service;
(e) subject to Subsection (6)(a), the present and five-year projections of the cost, including overhead, of the first responder district providing service with:
(i) the eligible area included in the first responder district's service area; and
(ii) the withdrawing entity excluded from the first responder district's service area;
(f) a projection of any new taxes per household that may be levied within the withdrawing entity within five years after the withdrawal;
(g) the fiscal impact that the withdrawing entity's withdrawal has on other municipalities and unincorporated areas served by the first responder district, including any rate increase that may become necessary to maintain required coverage ratios for the first responder district's debt;
(h) the physical and other assets that will be required by the withdrawing entity to provide, without interruption or diminution of service, the same service that is being provided by the first responder district;
(i) the physical and other assets that will no longer be required by the first responder district to continue to provide the current level of service to the remainder of the first responder district, excluding the withdrawing entity, and could be transferred to the withdrawing entity;
(j) subject to Subsection (6)(b), a fair and equitable allocation of the first responder district's assets between the first responder district and the withdrawing entity, effective upon the withdrawal of the withdrawing entity from the first responder district;
(k) a fair and equitable allocation of the debts, liabilities, and obligations of the first responder district and any local building authority of the first responder district, between the withdrawing entity and the remaining first responder district, taking into consideration:
(i) any requirement to maintain the excludability of interest from the income of the holder of the debt, liability, or obligation for federal income tax purposes; and
(ii) any first responder district assets that have been purchased with the proceeds of bonds issued by the first responder district that the first responder district will retain and any of those assets that will be transferred to the withdrawing entity;
(l) the number and classification of first responder district employees who will no longer be required to serve the remaining portions of the first responder district after the withdrawing entity withdraws from the first responder district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing entity does not employ the employees;
(m) maintaining as a base, for a period of three years after withdrawal, the existing schedule of pay and benefits for first responder district employees who are transferred to the employment of the withdrawing entity; and
(n) any other factor that the feasibility consultant considers relevant to the question of the withdrawing entity's withdrawal from the first responder district.
(6)
(a) For purposes of Subsections (5)(d) and (e):
(i) the feasibility consultant shall assume a level and quality of service to be provided in the future to the withdrawing entity that fairly and reasonably approximates the level and quality of service that the first responder district provides to the withdrawing entity at the time of the feasibility study;
(ii) in determining the present value cost of a service that the first responder district provides, the feasibility consultant shall consider:
(A) the cost to the withdrawing entity of providing the service for the first five years after the withdrawal; and
(B) the first responder district's present and five-year projected cost of providing the same service within the withdrawing entity; and
(iii) the feasibility consultant shall consider inflation and anticipated growth in calculating the cost of providing service.
(b) The feasibility consultant may not consider an allocation of first responder district assets or a transfer of first responder district employees to the extent that the allocation or transfer would impair the first responder district's ability to continue to provide the current level of service to the remainder of the first responder district without the withdrawing entity, unless the first responder district consents to the allocation or transfer.
(7) A feasibility consultant may retain an architect, engineer, or other professional, as the feasibility consultant considers prudent and as provided in the agreement with the withdrawing entity and first responder district, to assist the feasibility consultant to conduct a feasibility study.
(8) The withdrawing entity and first responder district shall require the feasibility consultant to:
(a) complete the feasibility study within a time established by the withdrawing entity and first responder district;
(b) prepare and submit a written report communicating the results of the feasibility study, including a one-page summary of the results; and
(c) attend all public hearings relating to the feasibility study under Subsection (14).
(9) A written report of the results of a feasibility study under this section shall:
(a) contain a recommendation concerning whether a withdrawing entity's withdrawal from a first responder district is functionally and financially feasible for both the first responder district and the withdrawing entity; and
(b) include any conditions the feasibility consultant determines need to be satisfied in order to make the withdrawal functionally and financially feasible, including:
(i) first responder district assets and liabilities to be allocated to the withdrawing entity; and
(ii)
(A) first responder district employees to become employees of the withdrawing entity; and
(B) sick leave, vacation, and other accrued benefits and obligations relating to the first responder district employees that the withdrawing entity needs to assume.
(10) The withdrawing entity and first responder district shall equally share the feasibility consultant's fees and costs, as specified in the agreement between the withdrawing entity and first responder district and the feasibility consultant.
(11)
(a) Upon completion of the feasibility study and preparation of a written report, the feasibility consultant shall deliver a copy of the report to the withdrawing entity and first responder district.
(b)
(i) A withdrawing entity or first responder district that disagrees with any aspect of a feasibility study report may, within 20 business days after receiving a copy of the report under Subsection (11)(a), submit to the feasibility consultant a written objection detailing the disagreement.
(ii)
(A) A withdrawing entity that submits a written objection under Subsection (11)(b)(i) shall simultaneously deliver a copy of the objection to the first responder district.
(B) A first responder district that submits a written objection under Subsection (11)(b)(i) shall simultaneously deliver a copy of the objection to the withdrawing entity.
(iii) A withdrawing entity or first responder district may, within 10 business days after receiving an objection under Subsection (11)(b)(ii), submit to the feasibility consultant a written response to the objection.
(iv)
(A) A withdrawing entity that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the first responder district.
(B) A first responder district that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the withdrawing entity.
(v) If an objection is filed under Subsection (11)(b)(i), the feasibility consultant shall, within 20 business days after the expiration of the deadline under Subsection (11)(b)(iii) for submitting a response to an objection:
(A) modify the feasibility study report or explain in writing why the feasibility consultant is not modifying the feasibility study report; and
(B) deliver the modified feasibility study report or written explanation to the withdrawing entity and first responder special district.
(12) Within seven days after the expiration of the deadline under Subsection (11)(b)(i) for submitting an objection or, if an objection is submitted, within seven days after receiving a modified feasibility study report or written explanation under Subsection (11)(b)(v), but at least 30 days before a public hearing under Subsection (14), the withdrawing entity shall:
(a) make a copy of the report available to the public at the primary office of the withdrawing entity; and
(b) if the withdrawing entity has a website, post a copy of the report on the entity's website.
(13) A feasibility study report or, if a feasibility study report is modified under Subsection (11), a modified feasibility study report may not be challenged unless the basis of the challenge is that the report results from collusion or fraud.
(14)
(a) Following the expiration of the deadline under Subsection (11)(b)(i) for submitting an objection, or, if an objection is submitted under Subsection (11)(b)(i), following the withdrawing entity's receipt of the modified feasibility study report or written explanation under Subsection (11)(b)(v), the legislative body of the withdrawing entity shall, at the legislative body's next regular meeting, schedule at least one public hearing to be held:
(i) within the following 60 days; and
(ii) for the purpose of allowing:
(A) the feasibility consultant to present the results of the feasibility study; and
(B) the public to become informed about the feasibility study results, to ask the feasibility consultant questions about the feasibility study, and to express the public's views about the proposed withdrawal.
(b) At a public hearing under Subsection (14)(a), the legislative body of the withdrawing entity shall:
(i) provide a copy of the feasibility study for public review; and
(ii) allow the public to:
(A) ask the feasibility consultant questions about the feasibility study; and
(B) express the public's views about the withdrawing entity's proposed withdrawal from the first responder district.
(15)
(a) The clerk or recorder of the withdrawing entity shall publish notice of a hearing under Subsection (14) for the withdrawing entity, as a class A notice under Section 63G-30-102, for three consecutive weeks immediately before the public hearing.
(b) A notice under Subsection (15)(a) shall state:
(i) the date, time, and location of the public hearing; and
(ii) that a copy of the feasibility study report may be obtained, free of charge, at the office of the withdrawing entity or on the withdrawing entity's website.
(16) Unless the withdrawing entity and first responder district agree otherwise, conditions that a feasibility study report indicates are necessary to be met for a withdrawal to be functionally and financially feasible for the withdrawing entity and first responder district are binding on the withdrawing entity and first responder district if the withdrawal occurs.
(1) As used in this section:
(a) "Feasibility consultant" means a person with expertise in:
(i) the processes and economics of local government; and
(ii) the economics of providing municipal services to an area, including garbage service.
(b) "Feasibility study" means a study to determine the functional and financial feasibility of withdrawing an area from a garbage disposal district.
(c)
(i) "Garbage disposal district" means a special or local district that was created to provide garbage collection and disposal to counties or municipalities.
(ii) "Garbage disposal district" includes special districts reorganized from a local district, as described in Section 17D-1-604.
(d)
(i) "Incur a financial obligation" means an action that increases the annual budget of a district beyond what would be expected after taking population growth or inflation into account.
(ii) "Incur a financial obligation" does not mean the continuation of day-to-day district operations, including:
(A) the payment of salaries and benefits;
(B) implementing previously budgeted cost-of-living wage increases;
(C) hiring a new employee to fulfill the duties of an individual who leaves employment with the district; or
(D) purchasing necessary supplies under the same general terms and at the same general rate the organization historically purchased the supplies.
(e) "Resolution to withdraw" means a resolution adopted by the legislative body of a withdrawing entity describing the area within the withdrawing entity that shall be removed from the boundaries of a garbage disposal district.
(f) "Withdrawing entity" means:
(i) a county of the first class, as classified under Section 17-60-104, that initiates the process to withdraw the unincorporated areas of the county from the garbage disposal district as described in this section; or
(ii) a municipality located in a county of the first class, as classified under Section 17-60-104, that initiates the process to withdraw the municipality from the garbage disposal district as described in this section.
(2)
(a) In addition to procedures described in Section 17B-1-504, the process to withdraw an area from a garbage disposal district may be initiated by a county or municipal legislative body adopting a notice of intent to withdraw as described in this section.
(b) The notice in Subsection (2)(a) shall include:
(i) a statement that the county or municipality intends to withdraw from the garbage disposal district;
(ii) a description or map of the area proposed to be withdrawn; and
(iii) notice that the county or municipality intends to conduct a feasibility study in accordance with this section if the withdrawing entity and garbage disposal district do not agree to the withdrawal as described in Subsection (3).
(c) Within 10 days after adopting the notice in Subsection (2)(a), the legislative body shall submit a copy of the notice to the garbage disposal district's board of trustees.
(d) Upon receiving the notice described in Subsection (2)(c), the garbage disposal district may not incur debt, issue bonds, or otherwise incur a financial obligation until the earlier of:
(i) the day on which:
(A) the initiated withdrawal is finalized; or
(B) the legislative body rescinds the notice of intent to withdraw as described in Subsection (8); or
(ii) one year from the day on which the garbage disposal district receives the notice described in Subsection (2)(c).
(3) A feasibility study under this section is not required if, within 30 days of the day on which the garbage disposal district receives notice under Subsection (2)(c), the withdrawing entity and the garbage disposal district:
(a) agree in writing to the withdrawal; and
(b) enter into a written agreement establishing the terms of the withdrawal.
(4)
(a) The withdrawing entity shall select a feasibility consultant in accordance with applicable county or municipal procurement procedures.
(b) Upon retaining a feasibility consultant, the legislative body shall require the feasibility consultant to:
(i) complete the feasibility study and written report:
(A) as described in Subsection (5); and
(B) within 90 days; and
(ii) attend any public hearing the legislative body holds as described in Subsection (6).
(5)
(a) The feasibility study shall consider:
(i) the physical and other assets that will be required by the withdrawing entity to provide, without interruption or diminution of service, the same service that is being provided by the garbage disposal district;
(ii) the physical and other assets that will no longer be required by the garbage disposal district to continue to provide the current level of service to the remainder of the garbage disposal district, excluding the withdrawing entity, and could be transferred to the withdrawing entity;
(iii) a fair and equitable allocation of the garbage disposal district's assets between the garbage disposal district and the withdrawing entity, effective upon the withdrawal of the withdrawing entity from the garbage disposal district;
(iv) a fair and equitable allocation of the debts, liabilities, and obligations of the garbage disposal district and any local building authority of the garbage disposal district, between the withdrawing entity and the remaining garbage disposal district, taking into consideration:
(A) any requirement to maintain the excludability of interest from the income of the holder of the debt, liability, or obligation for federal income tax purposes; and
(B) any garbage disposal district assets that have been purchased with the proceeds of bonds issued by the garbage disposal district that the garbage disposal district will retain and any assets that will be transferred to the withdrawing entity;
(v) the number and classification of garbage disposal district employees who will no longer be required to serve the remaining portions of the garbage disposal district after the withdrawing entity withdraws from the garbage disposal district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing entity does not employ the employees; and
(vi) any other factor that the feasibility consultant considers relevant to the question of the withdrawing entity's withdrawal from the garbage disposal district.
(b) A written report of the results of a feasibility study shall:
(i) contain a recommendation concerning whether a withdrawing entity's withdrawal from a garbage disposal district is functionally and financially feasible for the withdrawing entity;
(ii) include any conditions the feasibility consultant determines need to be satisfied in order to make the withdrawal functionally and financially feasible, including the garbage disposal district assets and liabilities to be allocated to the withdrawing entity;
(iii) include a one-page summary of the feasibility study, the recommendation described in Subsection (5)(b)(i), and any conditions described in Subsection (5)(b)(ii) in terms that the average member of the public can understand; and
(iv) be sent to:
(A) the board of trustees of the garbage disposal district; and
(B) the legislative body that adopted the notice of intent to withdraw under Subsection (2).
(6)
(a) If upon receipt of the written report described in Subsection (5)(b), the withdrawing entity determines that the results of the feasibility study are favorable and any identified conditions are acceptable to the withdrawing entity, the legislative body shall hold at least one public hearing:
(i) within 60 days of the day on which the written report is sent to the board of trustees and the legislative body, as described in Subsection (5)(b); and
(ii) for the purpose of allowing:
(A) the feasibility consultant to present the results of the feasibility study; and
(B) the public to become informed about the feasibility study results, pose questions to the feasibility consultant, and make public comment.
(b) At a public hearing described in this Subsection (6), the legislative body shall:
(i) provide a copy of the feasibility study for public review;
(ii) ensure that the presentation includes a description of any conditions the feasibility consultant identifies as necessary to make the withdrawal functional and financially feasible, as described in Subsection (5)(b); and
(iii) allow members of the public and representatives from the garbage disposal district's board of trustees to make public comment about the proposed withdrawal.
(7)
(a) The county or municipality shall publish notice of the public hearing required under Subsection (6), and any additional public hearing in which the issue of withdrawal or the feasibility study results are discussed, for the county or municipality:
(i) as a class A notice under Section 63G-30-102; and
(ii) for at least two weeks before the day of the public hearing.
(b) The notice described in Subsection (7)(a) shall:
(i) be sent to the garbage disposal district's board of trustees;
(ii) include the summary described in Subsection (5)(b)(iii); and
(iii) indicate that a full copy of the feasibility study is available for inspection and copying at the office of the county clerk or municipal clerk or recorder.
(8) The withdrawing entity's legislative body shall notify the garbage disposal district's board of trustees that the legislative body is rescinding the notice of intent to withdraw:
(a) if, upon receipt of the written report described in Subsection (5)(b), the withdrawing entity determines the results of the feasibility study are not favorable to the withdrawing entity or that any identified conditions are not acceptable to the withdrawing entity;
(b) if, after a public hearing described in Subsection (6), the legislative body fails to or elects not to adopt a resolution to withdraw as described in Subsection (9); or
(c) if the legislative body determines, for whatever reason and at any time before the legislative body adopts a resolution to withdraw as described in Subsection (9), that withdrawal is no longer in the best interest of the county or municipality.
(9)
(a) The withdrawing entity's legislative body may adopt a resolution to withdraw at a public meeting:
(i) after a public hearing described in Subsection (6); and
(ii) no later than 60 days after the day on which the last public hearing described in Subsection (6) is held.
(b) A resolution to withdraw shall establish the terms of the withdrawal, including the withdrawing entity's agreement to comply with any conditions included in the feasibility study report.
(c) Upon adopting a resolution to withdraw, the legislative body shall notify the garbage disposal district's board of trustees of the resolution to withdraw.
(10) The withdrawal of a county or municipality from a garbage disposal district as described in Subsection (9) does not require the approval of the garbage disposal district's board of trustees.
(11)
(a) Within 10 days of the day on which a withdrawing entity and garbage disposal district enter into an agreement to withdraw under Subsection (3) or a legislative body adopts a resolution to withdraw under Subsection (9), the withdrawing entity shall file with the lieutenant governor a copy of:
(i) the notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(ii) an approved final local entity plat, as defined in Section 67-1a-6.5.
(b) Upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5, the withdrawing entity shall submit to the county recorder the original:
(i) notice of impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3);
(ii) approved final local entity plat, as defined in Section 67-1a-6.5; and
(iii) certificate of withdrawal.
(12) A withdrawal under this section is effective the day on which the lieutenant governor issues a certificate of withdrawal under Section 67-1a-6.5.
(1) Each petition under Section 17B-1-504 shall:
(a) indicate the typed or printed name and current address of each owner of acre-feet of water, property owner, registered voter, or authorized representative of the governing body signing the petition;
(b) separately group signatures by municipality and, in the case of unincorporated areas, by county;
(c) if it is a petition signed by the owners of land, the assessment of which is based on acre-feet of water, indicate the address of the property and the property tax identification parcel number of the property as to which the owner is signing the request;
(d) designate up to three signers of the petition as sponsors, or in the case of a petition filed under Subsection 17B-1-504(1)(a)(iv), designate a governmental representative as a sponsor, and in each case, designate one sponsor as the contact sponsor with the mailing address and telephone number of each;
(e) state the reasons for withdrawal;
(f) when the petition is filed with the special district board of trustees, be accompanied by a map generally depicting the boundaries of the area proposed to be withdrawn and a legal description of the area proposed to be withdrawn; and
(g) include the following statement on the first page of the petition in at least the same size type as the majority of the other statements on the page:
"WARNING TO SIGNERS WITH PRIVATE VOTER REGISTRATION RECORDS
If you sign this petition, your voter identification number and the date you signed may be publicly disclosed. This disclosure may occur even if you are an at-risk voter with a voter registration record that has been classified as a private record."
(2)
(a) The special district may prepare an itemized list of expenses, other than attorney expenses, that will necessarily be incurred by the special district in the withdrawal proceeding. The itemized list of expenses may be submitted to the contact sponsor. If the list of expenses is submitted to the contact sponsor within 21 days after receipt of the petition, the contact sponsor on behalf of the petitioners shall be required to pay the expenses to the special district within 90 days of receipt. Until funds to cover the expenses are delivered to the special district, the district will have no obligation to proceed with the withdrawal and the time limits on the district stated in this part will be tolled. If the expenses are not paid within the 90 days, or within 90 days from the conclusion of any arbitration under Subsection (2)(b), the petition requesting the withdrawal shall be considered to have been withdrawn.
(b) If there is no agreement between the board of trustees of the special district and the contact sponsor on the amount of expenses that will necessarily be incurred by the special district in the withdrawal proceeding, either the board of trustees or the contact sponsor may submit the matter to binding arbitration in accordance with Title 78B, Chapter 6, Part 2, Alternative Dispute Resolution Act, provided that, if the parties cannot agree upon an arbitrator and the rules and procedures that will control the arbitration, either party may pursue arbitration under Title 78B, Chapter 11, Utah Uniform Arbitration Act.
(3)
(a) A signer of a petition may remove or, once removed, reinstate the signer's signature at any time before the public hearing under Section 17B-1-508 by submitting a written statement requesting removal or reinstatement with the board of trustees of the special district in which the area proposed to be withdrawn is located.
(b) A statement described in Subsection (3)(a) shall comply with the requirements described in Subsection 20A-1-1003(2).
(c) As applicable and using the procedures described in Subsection 20A-1-1003(3), the county clerk shall assist the board of trustees to determine whether to remove or reinstate a registered voter's signature after the voter submits a timely, valid statement described in Subsection (3)(a).
(4) If it reasonably appears that, if the withdrawal which is the subject of a petition filed under Subsection 17B-1-504(1)(a)(i) or (ii) is granted, it will be necessary for a municipality to provide to the withdrawn area the service previously supplied by the special district, the board of trustees of the special district may, within 21 days after receiving the petition, notify the contact sponsor in writing that, before it will be considered by the board of trustees, the petition shall be presented to and approved by the governing body of the municipality as provided in Subsection 17B-1-504(1)(a)(iv) before it will be considered by the special district board of trustees. If the notice is timely given to the contact sponsor, the petition shall be considered to have been withdrawn until the municipality files a petition with the special district under Subsection 17B-1-504(1)(a)(iv).
(5)
(a) After receiving the notice required by Subsection 17B-1-504(2), unless specifically allowed by law, a public entity may not make expenditures from public funds to support or oppose the gathering of signatures on a petition for withdrawal.
(b) Nothing in this section prohibits a public entity from providing factual information and analysis regarding a withdrawal petition to the public, so long as the information grants equal access to both the opponents and proponents of the petition for withdrawal.
(c) Nothing in this section prohibits a public official from speaking, campaigning, contributing personal money, or otherwise exercising the public official's constitutional rights.
(6) Subsections (2), (3), (4), and (5) do not apply to a petition seeking the withdrawal of an area from an infrastructure financing district.
(1) Within 30 days after the filing of a petition under Sections 17B-1-504 and 17B-1-506, the board of trustees of the special district in which the area proposed to be withdrawn is located shall:
(a)
(i) as necessary and with the assistance of the county clerk of the county in which the area proposed to be withdrawn is located, use the procedures described in Section 20A-1-1002 to determine whether a signer is a registered voter; and
(ii) with the assistance of officers of the county in which the area proposed to be withdrawn is located, determine whether the petition meets the requirements of Sections 17B-1-504 and 17B-1-506; and
(b)
(i) if the petition complies with the requirements set forth in Sections 17B-1-504 and 17B-1-506, certify the petition and mail or deliver written notification of the certification to the contact sponsor; or
(ii) if the petition fails to comply with any of the requirements set forth in Sections 17B-1-504 and 17B-1-506, reject the petition as insufficient and mail or deliver written notification of the rejection and the reasons for the rejection to the contact sponsor.
(2)
(a) If the board rejects the petition under Subsection (1)(b)(ii), the petition may be amended to correct the deficiencies for which it was rejected and then refiled within 60 days after notice of the rejection.
(b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be used toward fulfilling the applicable signature requirement for an amended petition refiled under Subsection (2)(a).
(3) The board of trustees shall process an amended petition refiled under Subsection (2)(a) in the same manner as an original petition under Subsection (1). If an amended petition is rejected for failure to comply with the requirements of Sections 17B-1-504 and 17B-1-506, the board of trustees shall issue a final rejection of the petition for insufficiency and mail or deliver written notice of the final rejection to the contact sponsor.
(4)
(a) A signer of a petition for which there has been a final rejection under Subsection (3) for insufficiency may seek judicial review of the board of trustees' final decision to reject the petition as insufficient.
(b) Judicial review under Subsection (4)(a) shall be initiated by filing an action in state district court in the county in which a majority of the area proposed to be withdrawn is located.
(c) The court in which an action is filed under this Subsection (4) may not overturn the board of trustees' decision to reject the petition unless the court finds that:
(i) the board of trustees' decision was arbitrary or capricious; or
(ii) the petition materially complies with the requirements set forth in Sections 17B-1-504 and 17B-1-506.
(d) The court may award costs and expenses of an action under this section, including reasonable attorney fees, to the prevailing party.
(1) A public hearing on the proposed withdrawal shall be held by the board of trustees of a special district that:
(a) certifies a petition under Subsection 17B-1-507(1)(b)(i) unless the petition was signed by all of the owners of private land within the area proposed to be withdrawn or all of the registered voters residing within the area proposed to be withdrawn; or
(b) adopts a resolution under Subsection 17B-1-504(1)(a)(iii) unless another special district provides to the area proposed to be withdrawn the same retail or wholesale service as provided by the special district that adopted the resolution.
(2) The public hearing required by Subsection (1) for a petition certified by the board of trustees of a special district under Subsection 17B-1-507(1)(b)(i), other than a petition filed in accordance with Subsection 17B-1-504(1)(a)(iv), may be held as an agenda item of a meeting of the board of trustees of the special district without complying with the requirements of Subsection (3)(b), (3)(c), or Section 17B-1-509.
(3) Except as provided in Subsection (2), the public hearing required by Subsection (1) shall be held:
(a) no later than 90 days after:
(i) certification of the petition under Subsection 17B-1-507(1)(b)(i); or
(ii) adoption of a resolution under Subsection 17B-1-504(1)(a)(iii);
(b)
(i) for a special district located entirely within a single county:
(A) within or as close as practicable to the area proposed to be withdrawn; or
(B) at the special district office; or
(ii) for a special district located in more than one county:
(A)
(I) within the county in which the area proposed to be withdrawn is located; and
(II) within or as close as practicable to the area proposed to be withdrawn; or
(B) if the special district office is reasonably accessible to all residents within the area proposed to be annexed, at the special district office;
(c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
(d) for the purpose of allowing:
(i) the public to ask questions and obtain further information about the proposed withdrawal and issues raised by it; and
(ii) any interested person to address the board of trustees concerning the proposed withdrawal.
(4) A quorum of the board of trustees of the special district shall be present throughout the public hearing provided for under this section.
(5) A public hearing under this section may be postponed or continued to a new time, date, and place without further notice by a resolution of the board of trustees adopted at the public hearing held at the time, date, and place specified in the published notice; provided, however, that the public hearing may not be postponed or continued to a date later than 15 days after the 90-day period under Subsection (3).
(1) Unless it is held as an agenda item of a meeting of the board of trustees of a special district as allowed by Subsection 17B-1-508(2), before holding a public hearing under Section 17B-1-508, the board of trustees of the special district shall:
(a) mail notice of the public hearing and of the proposed withdrawal to:
(i) if the special district is funded predominantly by revenues from a property tax, each owner of private real property located within the area proposed to be withdrawn, as shown upon the county assessment roll last equalized as of the previous December 31;
(ii) if the special district is funded by fees based upon an allotment of acre-feet of water, each owner of private real property with an allotment of water located within the area proposed to be withdrawn, as shown upon the district's records; or
(iii) if the special district is not funded predominantly by revenues from a property tax or fees based upon an allotment of acre-feet of water, each registered voter residing within the area proposed to be withdrawn, as determined by the voter registration list maintained by the county clerk as of a date selected by the board of trustees that is at least 20 but not more than 60 days before the public hearing; and
(b) post notice of the public hearing and of the proposed withdrawal in at least four conspicuous places within the area proposed to be withdrawn, no less than five nor more than 30 days before the public hearing.
(2) Each notice required under Subsection (1) shall:
(a) describe the area proposed to be withdrawn;
(b) identify the special district in which the area proposed to be withdrawn is located;
(c) state the date, time, and location of the public hearing;
(d) state that the petition or resolution may be examined during specified times and at a specified place in the special district; and
(e) state that any person interested in presenting comments or other information for or against the petition or resolution may:
(i) prior to the hearing, submit relevant comments and other information in writing to the board of trustees at a specified address in the special district; or
(ii) at the hearing, present relevant comments and other information in writing and may also present comments and information orally.
(1)
(a) No later than 90 days after the public hearing under Section 17B-1-508, or, if no hearing is held, within 90 days after the filing of a petition under Section 17B-1-504, the board of trustees of the special district in which the area proposed to be withdrawn is located shall adopt a resolution:
(i) approving the withdrawal of some or all of the area from the special district; or
(ii) rejecting the withdrawal.
(b) Each resolution approving a withdrawal shall:
(i) include a legal description of the area proposed to be withdrawn;
(ii) state the effective date of the withdrawal; and
(iii) set forth the terms and conditions under Subsection (5), if any, of the withdrawal.
(c) Each resolution rejecting a withdrawal shall include a detailed explanation of the board of trustees' reasons for the rejection.
(2) Unless denial of the petition is required under Subsection (3), the board of trustees shall adopt a resolution approving the withdrawal of some or all of the area from the special district if the board of trustees determines that:
(a) the area to be withdrawn does not and will not require the service that the special district provides;
(b) the special district will not be able to provide service to the area to be withdrawn for the reasonably foreseeable future; or
(c) the area to be withdrawn has obtained the same service that is provided by the special district or a commitment to provide the same service that is provided by the special district from another source.
(3) The board of trustees shall adopt a resolution denying the withdrawal if it determines that the proposed withdrawal would:
(a) result in a breach or default by the special district under:
(i) any of its notes, bonds, or other debt or revenue obligations;
(ii) any of its agreements with entities which have insured, guaranteed, or otherwise credit-enhanced any debt or revenue obligations of the special district; or
(iii) any of its agreements with the United States or any agency of the United States; provided, however, that, if the special district has entered into an agreement with the United States that requires the consent of the United States for a withdrawal of territory from the district, a withdrawal under this part may occur if the written consent of the United States is obtained and filed with the board of trustees;
(b) adversely affect the ability of the special district to make any payments or perform any other material obligations under:
(i) any of its agreements with the United States or any agency of the United States;
(ii) any of its notes, bonds, or other debt or revenue obligations; or
(iii) any of its agreements with entities which have insured, guaranteed, or otherwise credit-enhanced any debt or revenue obligations of the special district;
(c) result in the reduction or withdrawal of any rating on an outstanding note, bond, or other debt or revenue obligation of the special district;
(d) create an island or peninsula of nondistrict territory within the special district or of district territory within nondistrict territory that has a material adverse affect on the special district's ability to provide service or materially increases the cost of providing service to the remainder of the special district;
(e) materially impair the operations of the remaining special district; or
(f) require the special district to materially increase the fees it charges or property taxes or other taxes it levies in order to provide to the remainder of the district the same level and quality of service that was provided before the withdrawal.
(4) In determining whether the withdrawal would have any of the results described in Subsection (3), the board of trustees may consider the cumulative impact that multiple withdrawals over a specified period of time would have on the special district.
(5)
(a) Despite the presence of one or more of the conditions listed in Subsection (3), the board of trustees may approve a resolution withdrawing an area from the special district imposing terms or conditions that mitigate or eliminate the conditions listed in Subsection (3), including:
(i) a requirement that the owners of property located within the area proposed to be withdrawn or residents within that area pay their proportionate share of any outstanding district bond or other obligation as determined pursuant to Subsection (5)(b);
(ii) a requirement that the owners of property located within the area proposed to be withdrawn or residents within that area make one or more payments in lieu of taxes, fees, or assessments;
(iii) a requirement that the board of trustees and the receiving entity agree to reasonable payment and other terms in accordance with Subsections (5)(f) through (g) regarding the transfer to the receiving entity of district assets that the district used before withdrawal to provide service to the withdrawn area but no longer needs because of the withdrawal; provided that, if those district assets are allocated in accordance with Subsections (5)(f) through (g), the district shall immediately transfer to the receiving entity on the effective date of the withdrawal, all title to and possession of district assets allocated to the receiving entity; or
(iv) any other reasonable requirement considered to be necessary by the board of trustees.
(b) Other than as provided for in Subsection 17B-1-511(2), and except as provided in Subsection (5)(e), in determining the proportionate share of outstanding bonded indebtedness or other obligations under Subsection (5)(a)(i) and for purposes of determining the allocation and transfer of district assets under Subsection (5)(a)(iii), the board of trustees and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition shall:
(i) engage engineering and accounting consultants chosen by the procedure provided in Subsection (5)(d); provided however, that if the withdrawn area is not receiving service, an engineering consultant need not be engaged; and
(ii) require the engineering and accounting consultants engaged under Subsection (5)(b)(i) to communicate in writing to the board of trustees and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition the information required by Subsections (5)(f) through (h).
(c) For purposes of this Subsection (5):
(i) "accounting consultant" means a certified public accountant or a firm of certified public accountants with the expertise necessary to make the determinations required under Subsection (5)(h); and
(ii) "engineering consultant" means a person or firm that has the expertise in the engineering aspects of the type of system by which the withdrawn area is receiving service that is necessary to make the determination required under Subsections (5)(f) and (g).
(d)
(i) Unless the board of trustees and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition agree on an engineering consultant and an accounting consultant, each consultant shall be chosen from a list of consultants provided by the Consulting Engineers Council of Utah and the Utah Association of Certified Public Accountants, respectively, as provided in this Subsection (5)(d).
(ii) A list under Subsection (5)(d)(i) may not include a consultant who has had a contract for services with the district or the receiving entity during the two-year period immediately before the list is provided to the special district.
(iii) Within 20 days of receiving the lists described in Subsection (5)(d)(i), the board of trustees shall eliminate the name of one engineering consultant from the list of engineering consultants and the name of one accounting consultant from the list of accounting consultants and shall notify the receiving entity, or in cases where there is no receiving entity, the sponsors of the petition in writing of the eliminations.
(iv) Within three days of receiving notification under Subsection (5)(d), the receiving entity, or in cases where there is no receiving entity, the sponsors of the petition shall eliminate another name of an engineering consultant from the list of engineering consultants and another name of an accounting consultant from the list of accounting consultants and shall notify the board of trustees in writing of the eliminations.
(v) The board of trustees and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition shall continue to alternate between them, each eliminating the name of one engineering consultant from the list of engineering consultants and the name of one accounting consultant from the list of accounting consultants and providing written notification of the eliminations within three days of receiving notification of the previous notification, until the name of only one engineering consultant remains on the list of engineering consultants and the name of only one accounting consultant remains on the list of accounting consultants.
(e) The requirement under Subsection (5)(b) to engage engineering and accounting consultants does not apply if the board of trustees and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition agree on the allocations that are the engineering consultant's responsibility under Subsection (5)(f) or the determinations that are the accounting consultant's responsibility under Subsection (5)(h); provided however, that if engineering and accounting consultants are engaged, the district and the receiving entity, or in cases where there is no receiving entity, the district and the sponsors of the petition shall equally share the cost of the engineering and accounting consultants.
(f)
(i) The engineering consultant shall allocate the district assets between the district and the receiving entity as provided in this Subsection (5)(f).
(ii) The engineering consultant shall allocate:
(A) to the district those assets reasonably needed by the district to provide to the area of the district remaining after withdrawal the kind, level, and quality of service that was provided before withdrawal; and
(B) to the receiving entity those assets reasonably needed by the receiving entity to provide to the withdrawn area the kind and quality of service that was provided before withdrawal.
(iii) If the engineering consultant determines that both the special district and the receiving entity reasonably need a district asset to provide to their respective areas the kind and quality of service provided before withdrawal, the engineering consultant shall:
(A) allocate the asset between the special district and the receiving entity according to their relative needs, if the asset is reasonably susceptible of division; or
(B) allocate the asset to the special district, if the asset is not reasonably susceptible of division.
(g) All district assets remaining after application of Subsection (5)(f) shall be allocated to the special district.
(h)
(i) The accounting consultant shall determine the withdrawn area's proportionate share of any redemption premium and the principal of and interest on:
(A) the special district's revenue bonds that were outstanding at the time the petition was filed;
(B) the special district's general obligation bonds that were outstanding at the time the petition was filed; and
(C) the special district's general obligation bonds that:
(I) were outstanding at the time the petition was filed; and
(II) are treated as revenue bonds under Subsection (5)(i); and
(D) the district's bonds that were issued prior to the date the petition was filed to refund the district's revenue bonds, general obligation bonds, or general obligation bonds treated as revenue bonds.
(ii) For purposes of Subsection (5)(h)(i), the withdrawn area's proportionate share of redemption premium, principal, and interest shall be the amount that bears the same relationship to the total redemption premium, principal, and interest for the entire district that the average annual gross revenues from the withdrawn area during the three most recent complete fiscal years before the filing of the petition bears to the average annual gross revenues from the entire district for the same period.
(i) For purposes of Subsection (5)(h)(i), a district general obligation bond shall be treated as a revenue bond if:
(i) the bond is outstanding on the date the petition was filed; and
(ii) the principal of and interest on the bond, as of the date the petition was filed, had been paid entirely from special district revenues and not from a levy of ad valorem tax.
(j)
(i) Before the board of trustees of the special district files a resolution approving a withdrawal, the receiving entity, or in cases where there is no receiving entity, the sponsors of the petition shall irrevocably deposit government obligations, as defined in Subsection 11-27-2(6), into an escrow trust fund the principal of and interest on which are sufficient to provide for the timely payment of the amount determined by the accounting consultant under Subsection (5)(h) or in an amount mutually agreeable to the board of trustees of the special district and the receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the petition. Notwithstanding Subsection 17B-1-512(1), the board of trustees may not be required to file a resolution approving a withdrawal until the requirements for establishing and funding an escrow trust fund in this Subsection (5)(j)(i) have been met; provided that, if the escrow trust fund has not been established and funded within 180 days after the board of trustees passes a resolution approving a withdrawal, the resolution approving the withdrawal shall be void.
(ii) Concurrently with the creation of the escrow, the receiving entity, or in cases where there is no receiving entity, the sponsors of the petition shall provide to the board of trustees of the special district:
(A) a written opinion of an attorney experienced in the tax-exempt status of municipal bonds stating that the establishment and use of the escrow to pay the proportionate share of the district's outstanding revenue bonds and general obligation bonds that are treated as revenue bonds will not adversely affect the tax-exempt status of the bonds; and
(B) a written opinion of an independent certified public accountant verifying that the principal of and interest on the deposited government obligations are sufficient to provide for the payment of the withdrawn area's proportionate share of the bonds as provided in Subsection (5)(h).
(iii) The receiving entity, or in cases where there is no receiving entity, the sponsors of the petition shall bear all expenses of the escrow and the redemption of the bonds.
(iv) The receiving entity may issue bonds under Title 11, Chapter 14, Local Government Bonding Act, and Title 11, Chapter 27, Utah Refunding Bond Act, to fund the escrow.
(6) A requirement imposed by the board of trustees as a condition to withdrawal under Subsection (5) shall, in addition to being expressed in the resolution, be reduced to a duly authorized and executed written agreement between the parties to the withdrawal.
(7) An area that is the subject of a withdrawal petition under Section 17B-1-504 that results in a board of trustees resolution denying the proposed withdrawal may not be the subject of another withdrawal petition under Section 17B-1-504 for two years after the date of the board of trustees resolution denying the withdrawal.
(1) Other than as provided in Subsection (2), and unless an escrow trust fund is established and funded pursuant to Subsection 17B-1-510(5)(j), property within the withdrawn area shall continue after withdrawal to be taxable by the special district:
(a) for the purpose of paying the withdrawn area's just proportion of the special district's general obligation bonds or lease obligations payable from property taxes with respect to lease revenue bonds issued by a local building authority on behalf of the special district, other than those bonds treated as revenue bonds under Subsection 17B-1-510(5)(i), until the bonded indebtedness has been satisfied; and
(b) to the extent and for the years necessary to generate sufficient revenue that, when combined with the revenues from the district remaining after withdrawal, is sufficient to provide for the payment of principal and interest on the district's general obligation bonds that are treated as revenue bonds under Subsection 17B-1-510(5)(i).
(2) For a special district funded predominately by revenues other than property taxes, service charges, or assessments based upon an allotment of acre-feet of water, property within the withdrawn area shall continue to be taxable by the special district for purposes of paying the withdrawn area's proportionate share of bonded indebtedness or judgments against the special district incurred before:
(a) the date the petition was filed; or
(b) the date the garbage disposal district's board of trustees received the notice of intent to withdraw under Section 17B-1-505.7.
(3) An area withdrawn from an infrastructure financing district remains subject to any taxes, fees, and assessments imposed by the infrastructure financing district until obligations allocable to the withdrawn area are paid.
(4) Except as provided in Subsections (1), (2), and (3), upon withdrawal, the withdrawing area is relieved of all other taxes, assessments, and charges levied by the district, including taxes and charges for the payment of revenue bonds and maintenance and operation cost of the special district.
(1)
(a) Within the time specified in Subsection (1)(b), the board of trustees shall file with the lieutenant governor:
(i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
(b) The board of trustees shall file the documents listed in Subsection (1)(a):
(i) within 10 days after adopting a resolution approving a withdrawal under Section 17B-1-510;
(ii) on or before January 31 of the year following:
(A) the board of trustees' receipt of a notice or copy described in Subsection (1)(c)(i), if the board of trustees receives the notice or copy on or after July 1 and before January 1; or
(B) the board of trustees entering into an agreement described in Subsection (1)(c)(ii), if the agreement is executed by both parties on or after July 1 and before January 1; and
(iii) on or before the July 31 following:
(A) the board of trustees' receipt of a notice or copy described in Subsection (1)(c)(i), if the board of trustees receives the notice or copy on or after January 1 and before June 30; or
(B) the board of trustees entering into an agreement described in Subsection (1)(c)(ii), if the agreement is executed by both parties on or after January 1 and before June 30.
(c) The board of trustees shall comply with the requirements described in Subsection (1)(b)(ii) or (iii) after:
(i) receiving:
(A) a notice under Subsection 10-2-813(2) of an automatic withdrawal under Subsection 17B-1-502(2);
(B) a copy of the municipal legislative body's resolution approving an automatic withdrawal under Subsection 17B-1-502(3)(a); or
(C) a notice of a withdrawal of a municipality from a special district under Section 17B-1-502; or
(ii) entering into an agreement with a municipality or county under Subsection 17B-1-505(5)(a)(ii)(A) or (5)(b).
(d) Upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5, the board shall:
(i) if the withdrawn area is located within the boundary of a single county, submit to the recorder of that county:
(A) the original:
(I) notice of an impending boundary action;
(II) certificate of withdrawal; and
(III) approved final local entity plat; and
(B) if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b); or
(ii) if the withdrawn area is located within the boundaries of more than a single county, submit:
(A) the original of the documents listed in Subsections (1)(d)(i)(A)(I), (II), and (III) and, if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b) to one of those counties; and
(B) a certified copy of the documents listed in Subsections (1)(d)(i)(A)(I), (II), and (III) and a certified copy of the resolution or notice referred to in Subsection (1)(b) to each other county.
(2) A withdrawal shall be effective, subject to the conditions of the withdrawal resolution, if applicable, upon the lieutenant governor's issuance of the certificate of withdrawal under Section 67-1a-6.5, for:
(a) a withdrawal under Section 17B-1-510;
(b) an automatic withdrawal under Subsection 17B-1-502(3); or
(c) the withdrawal of an eligible area from a district under Section 17B-1-505.
(3)
(a) The special district may provide for the publication of any resolution approving or denying the withdrawal of an area:
(i) in a newspaper of general circulation in the area proposed for withdrawal; and
(ii) as required in Section 45-1-101.
(b) In lieu of publishing the entire resolution, the special district may publish a notice of withdrawal or denial of withdrawal, containing:
(i) the name of the special district;
(ii) a description of the area proposed for withdrawal;
(iii) a brief explanation of the grounds on which the board of trustees determined to approve or deny the withdrawal; and
(iv) the times and place where a copy of the resolution may be examined, which shall be at the place of business of the special district, identified in the notice, during regular business hours of the special district as described in the notice and for a period of at least 30 days after the publication of the notice.
(4) Any sponsor of the petition or receiving entity may contest the board's decision to deny a withdrawal of an area from the special district by submitting a request, within 60 days after the resolution is adopted under Section 17B-1-510, to the board of trustees, suggesting terms or conditions to mitigate or eliminate the conditions upon which the board of trustees based the board's decision to deny the withdrawal.
(5) Within 60 days after the request under Subsection (4) is submitted to the board of trustees, the board may consider the suggestions for mitigation and adopt a resolution approving or denying the request in the same manner as provided in Section 17B-1-510 with respect to the original resolution denying the withdrawal and file a notice of the action as provided in Subsection (1).
(6)
(a) Any person in interest may seek judicial review of:
(i) the board of trustees' decision to withdraw an area from the special district;
(ii) the terms and conditions of a withdrawal approved under Section 17B-1-510 or Subsection (5); or
(iii) the board's decision to deny a withdrawal.
(b) Judicial review under this Subsection (6) shall be initiated by filing an action in the district court in the county in which a majority of the area proposed to be withdrawn is located:
(i) if the resolution approving or denying the withdrawal is published under Subsection (3), within 60 days after the publication or after the board of trustees' denial of the request under Subsection (5);
(ii) if the resolution is not published pursuant to Subsection (3), within 60 days after the resolution approving or denying the withdrawal is adopted; or
(iii) if a request is submitted to the board of trustees of a special district under Subsection (4), and the board adopts a resolution under Subsection (5), within 60 days after the board adopts a resolution under Subsection (5) unless the resolution is published under Subsection (3), in which event the action shall be filed within 60 days after the publication.
(c) A court in which an action is filed under this Subsection (6) may not overturn, in whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:
(i) the court finds the board of trustees' decision to be arbitrary or capricious; or
(ii) the court finds that the board materially failed to follow the procedures set forth in this part.
(d) A court may award costs and expenses of an action under this section, including reasonable attorney fees, to the prevailing party.
(7) After the applicable contest period under Subsection (4) or (6), no person may contest the board of trustees' approval or denial of withdrawal for any cause.
(1) Except as provided in Subsection (4), on the effective date of withdrawal of an area from a special district, any trustee residing in the withdrawn area shall cease to be a member of the board of trustees of the special district.
(2) Except as provided in Subsection (4), if the special district has been divided into divisions for the purpose of electing or appointing trustees and the area withdrawn from a district constitutes all or substantially all of the area in a division of the special district that is represented by a member of the board of trustees, on the effective date of the withdrawal, the trustee representing the division shall cease to be a member of the board of trustees of the special district.
(3) In the event of a vacancy on the board of trustees as a result of an area being withdrawn from the special district:
(a) the board of trustees shall reduce the number of trustees of the special district as provided by law; or
(b) the trustee vacancy shall be filled as provided by law.
(4) Subsections (1) and (2) apply only to a trustee who is required by law to be a resident of the special district or of a particular division within the special district.
As used in this part:
(1) "Appropriation" means an allocation of money by the board of trustees for a specific purpose.
(2) "Budget" means a plan of financial operations for a fiscal year which embodies estimates of proposed expenditures for given purposes and the proposed means of financing them, and may refer to the budget of a particular fund for which a budget is required by law or it may refer collectively to the budgets for all such funds.
(3) "Budget officer" means the person appointed by the special district board of trustees to prepare the budget for the district.
(4) "Budget year" means the fiscal year for which a budget is prepared.
(5) "Calendar year entity" means a special district whose fiscal year begins January 1 and ends December 31 of each calendar year as described in Section 17B-1-602.
(6) "Current year" means the fiscal year in which a budget is prepared and adopted, which is the fiscal year next preceding the budget year.
(7) "Deficit" has the meaning given under generally accepted accounting principles as reflected in the Uniform Accounting Manual for Special Districts.
(8) "Estimated revenue" means the amount of revenue estimated to be received from all sources during the budget year in each fund for which a budget is being prepared.
(9) "Financial officer" means the official under Section 17B-1-642.
(10) "Fiscal year" means the annual period for accounting for fiscal operations in each district.
(11) "Fiscal year entity" means a special district whose fiscal year begins July 1 of each year and ends on June 30 of the following year as described in Section 17B-1-602.
(12) "Fund" has the meaning given under generally accepted accounting principles as reflected in the Uniform Accounting Manual for Special Districts.
(13) "Fund balance" has the meaning given under generally accepted accounting principles as reflected in the Uniform Accounting Manual for Special Districts.
(14) "General fund" is as defined by the Governmental Accounting Standards Board as reflected in the Uniform Accounting Manual for All Local Governments prepared by the Office of the Utah State Auditor.
(15) "Governmental funds" means the general fund, special revenue fund, debt service fund, and capital projects fund of a special district.
(16) "Interfund loan" means a loan of cash from one fund to another, subject to future repayment.
(17) "Last completed fiscal year" means the fiscal year next preceding the current fiscal year.
(18) "Proprietary funds" means enterprise funds and the internal service funds of a special district.
(19) "Public funds" means any money or payment collected or received by an officer or employee of a special district acting in an official capacity and includes money or payment to the officer or employee for services or goods provided by the district, or the officer or employee while acting within the scope of employment or duty.
(20) "Retained earnings" has the meaning given under generally accepted accounting principles as reflected in the Uniform Accounting Manual for Special Districts.
(21) "Special district general fund" means the general fund used by a special district.
(22) "Special fund" means any special district fund other than the special district's general fund.
The fiscal year of each special district shall be, as determined by the board of trustees:
(1) the calendar year; or
(2) the period from July 1 to the following June 30.
The accounting records of each special district shall be established and maintained, and financial statements prepared from those records, in conformance with generally accepted accounting principles promulgated from time to time by authoritative bodies in the United States.
Each district shall maintain, according to its own accounting needs, some or all of the funds and account groups in its system of accounts, as prescribed in the Uniform Accounting Manual for Special Districts.
(1) The budget officer of each special district shall prepare for each budget year a budget for each of the following funds:
(a) the General Fund;
(b) special revenue funds;
(c) debt service funds;
(d) capital projects funds;
(e) proprietary funds, in accordance with Section 17B-1-629;
(f) if the special district has a local fund, as defined in Section 53-2a-602, the local fund; and
(g) any other fund or funds for which a budget is required by the uniform system of budgeting, accounting, and reporting.
(2)
(a) Major capital improvements financed by general obligation bonds, capital grants, or interfund transfers shall use a capital projects fund budget unless the improvements financed are to be used for proprietary type activities.
(b) The special district shall prepare a separate budget for the term of the projects as well as the annual budget required under Subsection (1).
(1) The budget for each fund under Section 17B-1-605 shall provide a financial plan for the budget year.
(2) Each budget shall specify in tabular form:
(a) estimates of all anticipated revenues, classified by the account titles prescribed in the Uniform Accounting Manual for Special Districts; and
(b) all appropriations for expenditures, classified by the account titles prescribed in the Uniform Accounting Manual for Special Districts.
(3) The total of the anticipated revenues shall equal the total of appropriated expenditures.
(1) On or before the first regularly scheduled meeting of the board of trustees in November for a calendar year entity and May for a fiscal year entity, the budget officer of each special district shall prepare for the ensuing year, in a format prescribed by the state auditor, and file with the board of trustees a tentative budget for each fund for which a budget is required.
(2)
(a) Each tentative budget under Subsection (1) shall provide in tabular form:
(i) actual revenues and expenditures for the last completed fiscal year;
(ii) estimated total revenues and expenditures for the current fiscal year; and
(iii) the budget officer's estimates of revenues and expenditures for the budget year.
(b) The budget officer shall estimate the amount of revenue available to serve the needs of each fund, estimate the portion to be derived from all sources other than general property taxes, and estimate the portion that shall be derived from general property taxes.
(3) The tentative budget, when filed by the budget officer with the board of trustees, shall contain the estimates of expenditures together with specific work programs and any other supporting data required by this part or requested by the board.
(4) The board of trustees shall review, consider, and tentatively adopt the tentative budget in any regular meeting or special meeting called for that purpose and may amend or revise the tentative budget in any manner that the board considers advisable prior to public hearings, but no appropriation required for debt retirement and interest or reduction of any existing deficits under Section 17B-1-613, or otherwise required by law, may be reduced below the minimums so required.
(5) When a new district is created, the board of trustees shall:
(a) prepare a budget covering the period from the date of incorporation to the end of the fiscal year;
(b) substantially comply with all other provisions of this part with respect to notices and hearings; and
(c) pass the budget as soon after incorporation as feasible.
(1) The tentative budget adopted by the board of trustees and all supporting schedules and data are public records.
(2) At least seven days before adopting a final budget in a public meeting, the special district shall:
(a) make the tentative budget available for public inspection at the special district's principal place of business during regular business hours;
(b) except to the extent provided in Subsection (3), publish the tentative budget, as a class A notice under Section 63G-30-102, for at least seven days.
(3) The notice described in this section is exempt from the physical posting requirement described in Subsection 63G-30-102(1)(c).
(1) At the meeting at which the tentative budget is adopted, the board of trustees shall:
(a) establish the time and place of a public hearing to consider its adoption; and
(b) except as provided in Subsection (6) or (7), order that notice of the hearing be published for the district, as a class A notice under Section 63G-30-102, for at least seven days before the day of the hearing.
(2) If the budget hearing is held in conjunction with a tax increase hearing, the notice required in Subsection (1)(b):
(a) may be combined with the notice required under Section 59-2-919; and
(b) shall be published in accordance with the advertisement provisions of Section 59-2-919.
(3) If the budget hearing is to be held in conjunction with a fee increase hearing, the notice required in Subsection (1)(b):
(a) may be combined with the notice required under Section 17B-1-643; and
(b) shall be published or mailed in accordance with the notice provisions of Section 17B-1-643.
(4) Proof that notice was given in accordance with Subsection (1)(b), (2), (3), or (6) is prima facie evidence that notice was properly given.
(5) If a notice required under Subsection (1)(b), (2), (3), or (6) is not challenged within 30 days after the day on which the hearing is held, the notice is adequate and proper.
(6) A board of trustees of a special district with an annual operating budget of less than $250,000 may satisfy the notice requirements in Subsection (1)(b) by:
(a) mailing a written notice, postage prepaid, to each voter in the special district; and
(b) posting the notice in three public places within the district.
(7) The notice described in this section is exempt from the physical posting requirement described in Subsection 63G-30-102(1)(c).
At the time and place advertised, or at any time or any place to which the public hearing may be adjourned, the board of trustees shall:
(1) hold a public hearing on the budgets tentatively adopted; and
(2) give all interested persons in attendance an opportunity to be heard on the estimates of revenues and expenditures or any item in the tentative budget of any fund.
After the conclusion of the public hearing, the board of trustees:
(1) may:
(a) continue to review the tentative budget;
(b) insert any new items; or
(c) increase or decrease items of expenditure that were the proper subject of consideration at the public hearing;
(2) may not decrease the amount appropriated for debt retirement and interest or reduction of any existing deficits, as provided by Section 17B-1-613; and
(3) shall increase or decrease the total anticipated revenue to equal the net change in proposed expenditures in the budget of each fund.
(1)
(a) A special district may accumulate retained earnings or fund balances, as appropriate, in any fund.
(b) For the general fund only, a special district may only use an accumulated fund balance to:
(i) provide working capital to finance expenditures from the beginning of the budget year until general property taxes or other applicable revenues are collected, subject to Subsection (1)(c);
(ii) provide a resource to meet emergency expenditures under Section 17B-1-623; and
(iii) cover a pending year-end excess of expenditures over revenues from an unavoidable shortfall in revenues, subject to Subsection (1)(d).
(c) Subsection (1)(b)(i) does not authorize a special district to appropriate a fund balance for budgeting purposes, except as provided in Subsection (4).
(d) Subsection (1)(b)(iii) does not authorize a special district to appropriate a fund balance to avoid an operating deficit during a budget year except:
(i) as provided under Subsection (4); or
(ii) for emergency purposes under Section 17B-1-623.
(2)
(a) Except as provided in Subsection (2)(b), the accumulation of a fund balance in the general fund may not exceed the most recently adopted general fund budget, plus 100% of the current year's property tax.
(b) Notwithstanding Subsection (2)(a), a special district may accumulate in the general fund mineral lease revenue that the special district receives from the United States under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq., through a distribution under:
(i) Title 63N, Chapter 22, Part 5, Community Impact Fund; or
(ii) Title 59, Chapter 21, Mineral Lease Funds.
(3) If the fund balance at the close of any fiscal year exceeds the amount permitted under Subsection (2), the district shall appropriate the excess in accordance with Section 17B-1-613.
(4) A special district may utilize any fund balance in excess of 5% of the total revenues of the general fund for budget purposes.
(5)
(a) Within a capital projects fund, the board of trustees may, in any budget year, appropriate from estimated revenue or fund balance to a reserve for capital projects for the purpose of financing future specific capital projects, including new construction, capital repairs, replacement, and maintenance, under a formal long-range capital plan that the board of trustees adopts.
(b) A special district may allow a reserve amount under Subsection (5)(a) to accumulate from year to year until the accumulated total is sufficient to permit economical expenditure for the specified purposes.
(c) A special district may disburse from a reserve account under Subsection (5)(a) only by a budget appropriation that the special district adopts in accordance with this part.
(d) A special district shall ensure that the expenditures from the appropriation budget accounts described in this Subsection (5) conform to all requirements of this part relating to execution and control of budgets.
(1) The board of trustees of a special district may not make any appropriation in the final budget of any fund in excess of the estimated expendable revenue for the budget year of the fund.
(2) If there is a deficit fund balance in a fund at the close of the last completed fiscal year, the board of trustees of a special district shall include an item of appropriation for the deficit in the current budget of the fund equal to:
(a) at least 5% of the total revenue of the fund in the last completed fiscal year; or
(b) if the deficit is equal to less than 5% of the total revenue of the fund in the last completed fiscal year, the entire amount of the deficit.
(3) The provisions of this section do not require a special district to add revenue to a fund that is used for debt service of a limited obligation, unless the revenue is pledged toward the limited obligation.
(1) The board of trustees of each special district shall by resolution adopt a budget for the ensuing fiscal year for each fund for which a budget is required under this part prior to the beginning of the fiscal year, except as provided in Sections 59-2-919 through 59-2-923.
(2) The special district's budget officer shall certify a copy of the final budget for each fund and file it with the state auditor within 30 days after adoption.
(1) Upon final adoption, each budget shall be in effect for the budget year, subject to amendment as provided in this part.
(2) A certified copy of the adopted budgets shall be filed in the special district office and shall be available to the public during regular business hours.
From the effective date of the budget or of any amendment enacted prior to the date on which property taxes are levied, the amount stated as the amount of estimated revenue from property taxes shall constitute the basis for determining the property tax levy to be set by the board of trustees for the corresponding tax year, subject to the applicable limitations imposed by law.
(1) The budget officer of each special district shall require all expenditures within each fund to conform with the fund budget.
(2) No appropriation may be encumbered and no expenditure may be made against any fund appropriation unless there is sufficient unencumbered balance in the fund's appropriation, except in cases of emergency as provided in Section 17B-1-623.
All purchases or encumbrances by a special district shall be made or incurred according to the purchasing procedures established for each district by the district's rulemaking authority, as that term is defined in Section 63G-6a-103, and only on an order or approval of the person or persons duly authorized.
(1) A special district may not make or incur expenditures or encumbrances in excess of total appropriations in the budget as adopted or as subsequently amended.
(2) An obligation contracted by any officer in excess of total appropriations in the budget is not enforceable against the district.
(3) No check or warrant to cover a claim against an appropriation may be drawn until the claim has been processed as provided by this part.
(1) The board of trustees of each special district shall establish policies for the transfer of any unencumbered or unexpended appropriation balance or portion of the balance from one account in a fund to another account within the same fund, subject to Subsection (2).
(2) An appropriation for debt retirement and interest, reduction of deficit, or other appropriation required by law or covenant may not be reduced below the minimums required.
(1) The board of trustees of a special district may, at any time during the budget year, review the individual budgets of the governmental funds for the purpose of determining if the total of any of them should be increased.
(2) If the board of trustees decides that the budget total of one or more of these funds should be increased, it shall follow the procedures established in Sections 17B-1-609 and 17B-1-610 for holding a public hearing.
(1) After holding the hearing referred to in Section 17B-1-621, the board of trustees may, by resolution, amend the budgets of the funds proposed to be increased, so as to make all or part of the increases, both estimated revenues and appropriations, which were the proper subject of consideration at the hearing.
(2) The board of trustees may not adopt an amendment to the current year budgets of any of the funds established in Section 17B-1-605 after the last day of the fiscal year.
The board of trustees of a special district may, by resolution, amend a budget and authorize an expenditure of money that results in a deficit in the district's general fund balance if:
(1) the board determines that:
(a) an emergency exists; and
(b) the expenditure is reasonably necessary to meet the emergency; and
(2) the expenditure is used to meet the emergency.
All unexpended or unencumbered appropriations, except capital projects fund appropriations, lapse at the end of the budget year to the respective fund balance.
If the necessity for maintaining any special fund of a district ceases to exist and a balance remains in the fund, the board of trustees shall authorize the transfer of the balance to the fund balance in the general fund of the district, subject to the following:
(1) Any balance remaining in a special assessment fund and not required in its guaranty fund shall be treated in the manner provided in Sections 11-42-413 and 11-42-701.
(2) Any balance remaining in a capital projects fund shall be transferred to the appropriate debt service fund or other fund as the bond covenants may require and otherwise to the fund balance account in the general fund.
(3) If any balance held in a trust fund for a specific purpose, other than a cemetery perpetual care trust fund, is to be transferred because its original purpose or restriction has ceased to exist, a public hearing shall be held in the manner provided in Sections 17B-1-609 and 17B-1-610. The published notice shall invite those persons who contributed to the fund to appear at the hearing. If the board of trustees determines the fund balance amounts are refundable to the original contributors, a 30-day period following the hearing shall be allowed for persons having an interest in the fund to file with the board of trustees a verified claim only for the amount of each claimant's contributions. Any claim not so filed shall be barred. Any balance remaining, after refunds to eligible contributors, shall be transferred to the fund balance account in the general fund of the district.
(4) If the board of trustees decides, in conformity with applicable laws, that the need for continuing maintenance of its cemetery perpetual care trust fund no longer exists, it may transfer the balance in the fund to the capital projects fund for expenditure for land, buildings, and major improvements to be used exclusively for cemetery purposes.
(1) Subject to this section, restrictions imposed by bond covenants, restrictions in Section 53-2a-605, or other controlling regulations, the board of trustees of a special district may authorize an interfund loan from one fund to another.
(2) An interfund loan under Subsection (1) shall be in writing and specify the terms and conditions of the loan, including the:
(a) effective date of the loan;
(b) name of the fund loaning the money;
(c) name of the fund receiving the money;
(d) amount of the loan;
(e) subject to Subsection (3), term of and repayment schedule for the loan;
(f) subject to Subsection (4), interest rate of the loan;
(g) method of calculating interest applicable to the loan;
(h) procedures for:
(i) applying interest to the loan; and
(ii) paying interest on the loan; and
(i) other terms and conditions the board of trustees determines applicable.
(3) The term and repayment schedule specified under Subsection (2)(e) may not exceed 10 years.
(4)
(a) In determining the interest rate of the loan specified under Subsection (2)(f), the board of trustees shall apply an interest rate that reflects the rate of potential gain had the funds been deposited or invested in a comparable investment.
(b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under Subsection (2)(f):
(i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less than the rate offered by the Public Treasurers' Investment Fund as defined in Section 51-7-3; or
(ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be less than the greater of the rate offered by:
(A) the Public Treasurers' Investment Fund as defined in Section 51-7-3; or
(B) a United States Treasury note of a comparable term.
(5)
(a) For an interfund loan under Subsection (1), the board of trustees shall:
(i) hold a public hearing;
(ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the proposed terms and conditions of the interfund loan under Subsection (2);
(iii) provide notice of the public hearing in the same manner as required under Section 17B-1-609 as if the hearing were a budget hearing; and
(iv) authorize the interfund loan by resolution in a public meeting.
(b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the interfund loan is included in an original budget or in a subsequent budget amendment previously approved by the board of trustees for the current fiscal year.
(6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan is:
(a) a loan from the special district general fund to any other fund of the special district; or
(b) a short-term advance from the special district's cash and investment pool to individual funds that are repaid by the end of the fiscal year.
(1) The board of trustees of each special district authorized to levy a property tax, at a regular meeting or special meeting called for that purpose, shall, by resolution, set the real and personal property tax rate for various district purposes by the date set under Section 59-2-912, but the rate may be set at an appropriate later date in accordance with Sections 59-2-919 through 59-2-923.
(2) In its computation of the total levy, the board of trustees shall determine the requirements of each fund for which property taxes are to be levied and shall specify in its resolution adopting the tax rate the amount apportioned to each fund.
(3) The proceeds of the levy apportioned for general fund purposes shall be credited as revenue in the general fund.
(4) The proceeds of the levy apportioned for special fund purposes shall be credited to the appropriate accounts in the applicable special funds.
(5) The combined levies for each district for all purposes in any year, excluding the retirement of general obligation bonds and the payment of any interest on the bonds, and any taxes expressly authorized by law to be levied in addition, may not exceed the limit enumerated by the laws governing each district.
The district clerk, as appointed under Section 17B-1-631, shall certify the resolution setting the levy to the county auditor, or auditors if the district is located in more than one county, in accordance with Section 59-2-912, or in the case of a tax rate increase in excess of the certified rate, in accordance with Section 59-2-920.
(1)
(a) As used in this section, "operating and capital budget" means a plan of financial operation for a proprietary or other required special fund, embodying estimates of operating resources and expenses and other outlays for a fiscal year.
(b) Except as otherwise expressly provided, the reference to "budget" or "budgets" and the procedures and controls relating to them in other sections of this part do not apply or refer to the "operating and capital budgets" provided for in this section.
(2) On or before the time the board of trustees adopts budgets for the governmental funds under Section 17B-1-605, it shall adopt for the ensuing year an operating and capital budget for each proprietary fund and shall adopt the type of budget for other special funds which is required by the Uniform Accounting Manual for Special Districts.
(3) Operating and capital budgets shall be adopted and administered in the following manner:
(a)
(i) On or before the first regularly scheduled meeting of the board of trustees, in November for calendar year entities and May for fiscal year entities, the budget officer shall prepare for the ensuing fiscal year, and file with the board of trustees, a tentative operating and capital budget for each proprietary fund and for other required special funds, together with specific work programs and any other supporting data required by the board.
(ii) If, within any proprietary fund, allocations or transfers that are not reasonable allocations of costs between funds are included in a tentative budget, a written notice of the date, time, place, and purpose of the hearing shall be mailed to utility fund customers at least seven days before the hearing.
(iii) The purpose portion of the notice required under Subsection (3)(a)(ii) shall identify:
(A) the enterprise utility fund from which money is being transferred;
(B) the amount being transferred; and
(C) the fund to which the money is being transferred.
(b)
(i) The board of trustees shall review and consider the tentative budgets at any regular meeting or special meeting called for that purpose.
(ii) The board of trustees may make any changes in the tentative budgets that it considers advisable.
(c) Budgets for proprietary or other required special funds shall comply with the public hearing requirements established in Sections 17B-1-609 and 17B-1-610.
(d)
(i) The board of trustees shall adopt an operating and capital budget for each proprietary fund for the ensuing fiscal year before the beginning of each fiscal year, except as provided in Sections 59-2-919 through 59-2-923.
(ii) A copy of the budget as finally adopted for each proprietary fund shall be certified by the budget officer and filed by the officer in the district office and shall be available to the public during regular business hours.
(iii) A copy of the budget shall also be filed with the state auditor within 30 days after adoption.
(e)
(i) Upon final adoption, the operating and capital budget is in effect for the budget year, subject to later amendment.
(ii) During the budget year, the board of trustees may, in any regular meeting or special meeting called for that purpose, review any one or more of the operating and capital budgets for the purpose of determining if the total of any of them should be increased.
(iii) If the board of trustees decides that the budget total of one or more of these proprietary funds should be increased, the board shall follow the procedures established in Section 17B-1-630.
(f) Expenditures from operating and capital budgets shall conform to the requirements relating to budgets specified in Sections 17B-1-617 through 17B-1-620.
The total budget appropriation of any fund described in Section 17B-1-629 may be increased by resolution of the board of trustees at any regular meeting, or special meeting called for that purpose, if written notice of the time, place, and purpose of the meeting has been mailed or delivered to all members of the board of trustees at least five days prior to the meeting. The notice may be waived in writing or orally during attendance at the meeting by any member of the board of trustees.
(1) The board of trustees of each special district shall appoint a district clerk.
(2) If required, the clerk may be chosen from among the members of the board of trustees, except the chair.
(3) The district clerk or other appointed person shall attend the meetings and keep a record of the proceedings of the board of trustees.
The district clerk or other designated person not performing treasurer duties shall maintain the financial records for each fund of the special district and all related subsidiary records, including a list of the outstanding bonds, their purpose, amount, terms, date, and place payable.
(1)
(a) The board of trustees of each special district shall appoint a district treasurer.
(b)
(i) If required, the treasurer may be chosen from among the members of the board of trustees, except that the board chair may not be district treasurer.
(ii) The district clerk may not also be the district treasurer.
(2) The district treasurer is custodian of all money, bonds, or other securities of the district.
(3) The district treasurer shall:
(a) determine the cash requirements of the district and provide for the deposit and investment of all money by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act;
(b) receive all public funds and money payable to the district within three business days after collection, including all taxes, licenses, fines, and intergovernmental revenue;
(c) keep an accurate detailed account of all money received under Subsection (3)(b) in the manner provided in this part and as directed by the district's board of trustees by resolution; and
(d) collect all special taxes and assessments as provided by law and ordinance.
The district treasurer shall give or cause to be given to every person paying money to the district treasury, a receipt or other evidence of payment, specifying, as appropriate, the date of payment and upon which account paid and shall file the duplicate of the receipt.
(1) The district clerk or other designated person not performing treasurer duties shall prepare the necessary checks or make the necessary arrangements for direct deposit, wire transfer, or other electronic payment mechanism after having determined that:
(a) the claim was authorized by:
(i) the board of trustees; or
(ii) the special district financial officer, if the financial officer is not the clerk, in accordance with Section 17B-1-642;
(b) the claim does not overexpend the appropriate departmental budget established by the board of trustees; and
(c) the expenditure was approved in advance by the board of trustees or its designee.
(2)
(a)
(i) The treasurer or any other person appointed by the board of trustees shall sign all checks or review and authorize all direct deposits, wire transfers, or other electronic payments.
(ii) The person maintaining the financial records may not sign any single signature check or unilaterally authorize any direct deposit, wire transfer, or other electronic payment.
(b) In a special district with an expenditure budget of less than $50,000 per year, a member of the board of trustees shall also sign all checks and review and authorize all direct deposits, wire transfers, or other electronic payments.
(c) Before affixing a signature or other authorization, the treasurer or other designated person shall determine that a sufficient amount is on deposit in the appropriate bank account of the district to honor the check.
All money received by the treasurer on any special assessment shall be applied to the payment of the improvement for which the assessment was made. The money shall be used for the payment of interest and principal on bonds or other indebtedness issued in settlement, and may not be used for any other purpose except as provided in Section 17B-1-625.
The treasurer shall promptly deposit all district funds in the appropriate bank accounts of the district. It shall be unlawful for any person to commingle district funds with the person's own money. If it appears that the treasurer or any other officer is making a profit out of public money, or is using the same for any purpose not authorized by law, the treasurer or officer shall be suspended from office.
The district clerk or other delegated person shall prepare and present to the board of trustees detailed quarterly financial reports showing the financial position and operations of the district for that quarter and the year to date status.
(1) Within 180 days after the close of each fiscal year, the district shall prepare an annual financial report in conformity with generally accepted accounting principles as prescribed in the Uniform Accounting Manual for Special Districts.
(2) The requirement under Subsection (1) to prepare an annual financial report may be satisfied by presentation of the audit report furnished by the auditor.
(3) Copies of the annual financial report or the audit report furnished by the auditor shall be filed with the state auditor and shall be filed as a public document in the district office.
(1) An audit of each special district is required to be performed in conformity with Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act.
(2) The board of trustees shall appoint an auditor for the purpose of complying with the requirements of this section and with Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act.
(1) Subject to Subsection (2), a special district may expand the uniform accounting, budgeting, and reporting procedure prescribed in the Uniform Accounting Manual for Special Districts prepared by the state auditor under Subsection 67-3-1(16), to better serve the needs of the district.
(2) A special district may not deviate from or alter the basic prescribed classification systems for the identity of funds and accounts set forth in the Uniform Accounting Manual for Special Districts.
(1) The board of trustees of each special district shall approve all expenditures of the district except as otherwise provided in this section.
(2) The board of trustees may authorize the district manager or other official approved by the board to act as the financial officer for the purpose of approving:
(a) payroll checks, if the checks are prepared in accordance with a schedule approved by the board; and
(b) routine expenditures, such as utility bills, payroll-related expenses, supplies, and materials.
(3) Notwithstanding Subsection (2), the board of trustees shall, at least quarterly, review all expenditures authorized by the financial officer.
(4) The board of trustees shall set a maximum sum over which all purchases may not be made without the board's approval.
(1)
(a) Before imposing a new fee or increasing an existing fee for a service provided by a special district, each special district board of trustees shall first hold a public hearing at which:
(i) the special district shall demonstrate its need to impose or increase the fee; and
(ii) any interested person may speak for or against the proposal to impose a fee or to increase an existing fee.
(b) Each public hearing under Subsection (1)(a) shall be held in the evening beginning no earlier than 6 p.m.
(c) A public hearing required under this Subsection (1) may be combined with a public hearing on a tentative budget required under Section 17B-1-610.
(d) Except to the extent that this section imposes more stringent notice requirements, the special district board shall comply with Title 52, Chapter 4, Open and Public Meetings Act, in holding the public hearing under Subsection (1)(a).
(2)
(a) Each special district board shall give notice of a hearing under Subsection (1) as provided in Subsections (2)(b) and (c) or Subsection (2)(d).
(b) The special district board shall publish the notice described in Subsection (2)(a) for the special district, as a class A notice under Section 63G-30-102, for at least seven days.
(c) The notice described in Subsection (2)(b) shall state that the special district board intends to impose or increase a fee for a service provided by the special district and will hold a public hearing on a certain day, time, and place fixed in the notice, which shall be not less than seven days after the day the notice is first posted as provided in Subsection (2)(b) for the purpose of hearing comments regarding the proposed imposition or increase of a fee and to explain the reasons for the proposed imposition or increase.
(d)
(i) In lieu of providing notice under Subsection (2)(b), the special district board of trustees may give the notice required under Subsection (2)(a) by mailing the notice to those within the district who:
(A) will be charged the fee for a district service, if the fee is being imposed for the first time; or
(B) are being charged a fee, if the fee is proposed to be increased.
(ii) Each notice under Subsection (2)(d)(i) shall comply with Subsection (2)(c).
(iii) A notice under Subsection (2)(d)(i) may accompany a district bill for an existing fee.
(e) If the hearing required under this section is combined with the public hearing required under Section 17B-1-610, the notice required under this Subsection (2):
(i) may be combined with the notice required under Section 17B-1-609; and
(ii) shall be posted or mailed in accordance with the notice provisions of this section.
(f) Proof that notice was given as provided in Subsection (2)(b) or (d) is prima facie evidence that notice was properly given.
(g) If no challenge is made to the notice given of a hearing required by Subsection (1) within 30 days after the date of the hearing, the notice is considered adequate and proper.
(h) After holding a public hearing under Subsection (1), a special district board may:
(i) impose the new fee or increase the existing fee as proposed;
(ii) adjust the amount of the proposed new fee or the increase of the existing fee and then impose the new fee or increase the existing fee as adjusted; or
(iii) decline to impose the new fee or increase the existing fee.
(i) This section applies to each new fee imposed and each increase of an existing fee that occurs on or after July 1, 1998.
(j)
(i) This section does not apply to an impact fee.
(ii) The imposition or increase of an impact fee is governed by Title 11, Chapter 36a, Impact Fees Act.
(3) This section does not apply to a fee or fee increase that is equal to the amount needed to pay a fee imposed on a special district under Sections 19-4-116 and 73-10g-607.
(1) As used in this section:
(a) "Electronic payment" means the payment of money to a special district by electronic means, including by means of a credit card, charge card, debit card, prepaid or stored value card or similar device, or automatic clearinghouse transaction.
(b) "Electronic payment fee" means an amount of money to defray the discount fee, processing fee, or other fee charged by a credit card company or processing agent to process an electronic payment.
(c) "Processing agent" means a bank, transaction clearinghouse, or other third party that charges a fee to process an electronic payment.
(2) A special district may accept an electronic payment for the payment of funds which the special district could have received through another payment method.
(3) A special district that accepts an electronic payment may charge an electronic payment fee.
(1) A special district may create a fee structure under this title that permits:
(a) a home owner or residential tenant to file for a fee credit for a fee charged by the special district, if the credit is based on:
(i) the home owner's annual income; or
(ii) the residential tenant's annual income; or
(b) an owner of federally subsidized housing to file for a credit for a fee charged by the special district.
(2) If a special district permits a person to file for a fee credit under Subsection (1)(a), the special district shall make the credit available to:
(a) a home owner; and
(b) a residential tenant.
As used in this part:
(1) "Audit reports" means the reports of any independent audit of the district performed by:
(a) an independent auditor as required by Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act;
(b) the state auditor; or
(c) the legislative auditor.
(2) "Board" means the special district board of trustees.
(3) "Budget" means a plan of financial operations for a fiscal year that includes:
(a) estimates of proposed expenditures for given purposes and the proposed means of financing them;
(b) the source and amount of estimated revenue for the district for the fiscal year;
(c) fund balance in each fund at the beginning of the fiscal year and the projected fund balance for each fund at the end of the fiscal year; and
(d) capital projects or budgets for proposed construction or improvement to capital facilities within the district.
(4) "Constituent entity" means any county, city, or town that levies property taxes within the boundaries of the district.
(5)
(a) "Customer agencies" means those governmental entities, except school districts, institutions of higher education, and federal government agencies that purchase or obtain services from the special district.
(b) "Customer agencies" for purposes of state agencies means the state auditor.
(1)
(a) Within 30 days after it is approved by the board, and at least 30 days before the board adopts a final budget, the board of each special district with an annual budget of $50,000 or more shall send a copy of its tentative budget and notice of the time and place for its budget hearing to:
(i) each of its constituent entities that has in writing requested a copy; and
(ii) to each of its customer agencies that has in writing requested a copy.
(b) The special district shall include with the tentative budget a signature sheet that includes:
(i) language that the constituent entity or customer agency received the tentative budget and has no objection to it; and
(ii) a place for the chairperson or other designee of the constituent entity or customer agency to sign.
(2) Each constituent entity and each customer agency that receives the tentative budget shall review the tentative budget submitted by the district and either:
(a) sign the signature sheet and return it to the district; or
(b) attend the budget hearing or other meeting scheduled by the district to discuss the objections to the proposed budget.
(3)
(a) If any constituent entity or customer agency that received the tentative budget has not returned the signature sheet to the special district within 15 calendar days after the tentative budget was mailed, the special district shall send a written notice of the budget hearing to each constituent entity or customer agency that did not return a signature sheet and invite them to attend that hearing.
(b) If requested to do so by any constituent entity or customer agency, the special district shall schedule a meeting to discuss the budget with the constituent entities and customer agencies.
(c) At the budget hearing, the special district board shall:
(i) explain its budget and answer any questions about it;
(ii) specifically address any questions or objections raised by the constituent entity, customer agency, or those attending the meeting; and
(iii) seek to resolve the objections.
(4) Nothing in this part prevents a special district board from approving or implementing a budget over any or all constituent entity's or customer agency's protests, objections, or failure to respond.
(1)
(a) Except as provided in Subsection (1)(b), within 30 days after it is presented to the board, the board of each special district with an annual budget of $50,000 or more shall send a copy of any audit report to:
(i) each of its constituent entities that has in writing requested a copy; and
(ii) each of its customer agencies that has in writing requested a copy.
(b) Within 30 days after it is presented to the board, the board of a large public transit district as defined in Section 17B-2a-802 shall send a copy of its annual audit report to:
(i) each of its constituent entities; and
(ii) each of its customer agencies that has in writing requested a copy.
(2) Each constituent entity and each customer agency that received the audit report shall review the audit report submitted by the district and, if necessary, request a meeting with the district board to discuss the audit report.
(3) At the meeting, the special district board shall:
(a) answer any questions about the audit report; and
(b) discuss their plans to implement suggestions made by the auditor.
(1) A merit system of personnel administration for the special districts of the state, their departments, offices, and agencies, except as otherwise specifically provided, is established.
(2) This part does not apply to a special district with annual revenues less than $50,000.
Each special district that has full or part-time employees shall annually review its personnel policies to ensure that they conform to the requirements of state and federal law.
A special district may establish a personnel system administered in a manner that will provide for the effective implementation of merit principles that provide for:
(1) recruiting, selecting, and advancing employees on the basis of their relative ability, knowledge, and skills, including open consideration of qualified applicants for initial appointment;
(2) providing equitable and adequate compensation;
(3) training employees as needed to assure high-quality performance;
(4) retaining employees on the basis of the adequacy of their performance, and separation of employees whose inadequate performance cannot be corrected;
(5) fair treatment of applicants and employees in all aspects of personnel administration without regard to race, color, religion, sex, national origin, political affiliation, age, or disability, and with proper regard for their privacy and constitutional rights as citizens;
(6) providing information to employees regarding their political rights and prohibited practices under the Hatch Political Activities Act, 5 U.S.C. Sec. 1501 through 1508 et seq.; and
(7) providing a formal procedure for processing the appeals and grievances of employees without discrimination, coercion, restraint, or reprisal.
Each special district shall comply with the requirements of Section 34-32-1.1.
(1) As used in this section:
(a) "Governing body" means the same as that term is defined in Section 17B-1-201.
(b) "Human resource management duties" means the exercise of human resource management functions and responsibilities, including:
(i) complying with federal and state employment law;
(ii) administering compensation and benefits; and
(iii) ensuring employee safety.
(c) "Human resource management training" means a program designed to instruct an individual on the performance of human resource management duties.
(2) If a special district has full or part-time employees, the governing body shall:
(a) adopt human resource management policies;
(b) assign human resource management duties to one of the district's employees or another person; and
(c) ensure that the employee or person assigned under Subsection (2)(b) receives human resource management training.
(1) If a special district provides more than one commodity, service, or facility, the district may bill for the fees and charges for all commodities, services, and facilities in a single bill.
(2) Regardless of the number of commodities, services, or facilities furnished by a special district, the special district may suspend furnishing any commodity, service, or facility to a customer if the customer fails to pay all fees and charges when due.
(3)
(a) Notwithstanding Subsection (2) and except as provided in Subsection (3)(b), a special district may not suspend furnishing any commodity, service, or facility to a customer if discontinuance of the service is requested by a private third party, including an individual, a private business, or a nonprofit organization, that is not the customer.
(b)
(i) An owner of land or the owner's agent may request that service be temporarily discontinued for maintenance-related activities.
(ii) An owner of land or the owner's agent may not request temporary discontinuance of service under Subsection (3)(b)(i) if the request is for the purpose of debt collection, eviction, or any other unlawful purpose.
(4) A special district and a county, with the approval or consent of the county treasurer, may enter into an agreement for the county treasurer to bill and collect assessments on behalf of the special district.
(1)
(a) A special district may hold a lien on a customer's property for past due fees for commodities, services, or facilities that the district has provided to the customer's property by certifying, subject to Subsection (3), to the treasurer of the county in which the customer's property is located the amount of past due fees, including, subject to Section 17B-1-902.1, applicable interest and administrative costs.
(b)
(i) Upon certification under Subsection (1)(a), the past due fees, and if applicable, interest and administrative costs, become a political subdivision lien that is a nonrecurring tax notice charge, as those terms are defined in Section 11-60-102, on the customer's property to which the commodities, services, or facilities were provided in accordance with Title 11, Chapter 60, Political Subdivision Lien Authority.
(ii) A lien described in this Subsection (1) has the same priority as, but is separate and distinct from, a property tax lien.
(2)
(a) If a special district certifies past due fees under Subsection (1)(a), the treasurer of the county shall provide a notice, in accordance with this Subsection (2), to the owner of the property for which the special district has incurred the past due fees.
(b) In providing the notice required in Subsection (2)(a), the treasurer of the county shall:
(i) include the amount of past due fees that a special district has certified on or before July 15 of the current year;
(ii) provide contact information, including a phone number, for the property owner to contact the special district to obtain more information regarding the amount described in Subsection (2)(b)(i); and
(iii) notify the property owner that:
(A) if the amount described in Subsection (2)(b)(i) is not paid in full by September 15 of the current year, any unpaid amount will be included on the property tax notice required by Section 59-2-1317; and
(B) the failure to pay the amount described in Subsection (2)(b)(i) has resulted in a lien on the property in accordance with Subsection (1)(b).
(c) The treasurer of the county shall provide the notice required by this Subsection (2) to a property owner on or before August 1.
(3)
(a) If a special district certifies an unpaid amount in accordance with Subsection (1)(a), the county treasurer shall include the unpaid amount on a property tax notice issued in accordance with Section 59-2-1317.
(b) If an unpaid fee, administrative cost, or interest is included on a property tax notice in accordance with Subsection (3)(a), the county treasurer shall on the property tax notice:
(i) clearly state that the unpaid fee, administrative cost, or interest is for a service provided by the special district; and
(ii) itemize the unpaid fee, administrative cost, or interest separate from any other tax, fee, interest, or penalty that is included on the property tax notice in accordance with Section 59-2-1317.
(4) A lien under Subsection (1) is not valid if the special district makes certification under Subsection (1)(a) after the filing for record of a document conveying title of the customer's property to a new owner.
(5) Nothing in this section may be construed to:
(a) waive or release the customer's obligation to pay fees that the district has imposed;
(b) preclude the certification of a lien under Subsection (1) with respect to past due fees for commodities, services, or facilities provided after the date that title to the property is transferred to a new owner; or
(c) nullify or terminate a valid lien.
(6) After all amounts owing under a lien established as provided in this section have been paid, the special district shall file for record in the county recorder's office a release of the lien.
(1)
(a) A special district may charge interest on a past due fee or past due charge.
(b) If a special district charges interest as described in Subsection (1)(b), the special district shall calculate the interest rate for a calendar year:
(i) based on the federal short-term rate determined by the secretary of the treasury under Section 6621, Internal Revenue Code, in effect for the preceding fourth calendar quarter; and
(ii) as simple interest at the rate of eighteen percentage points above the federal short-term rate.
(c) If a special district charges interest on a past due fee collected by the special district, regardless of whether the fee is certified, the special district may charge the interest monthly but may not compound the interest more frequently than annually.
(2)
(a) A special district may charge and collect only one of the following:
(i) a one-time penalty charge not to exceed 8% for a past-due fee; or
(ii) an administrative cost for some or all of the following:
(A) the collection cost of a past due fee or charge;
(B) reasonable attorney fees actually incurred for collection and foreclosure costs, if applicable; and
(C) any other cost.
(b) A special district may not charge interest on an administrative cost.
(1) A special district that owns or controls a system for furnishing water or providing sewer service or both may:
(a) before furnishing water or providing sewer service to a property, require the property owner or an authorized agent to submit a written application, signed by the owner or an authorized agent, agreeing to pay for all water furnished or sewer service provided to the property, whether occupied by the owner or by a tenant or other occupant, according to the rules and regulations adopted by the special district; and
(b) if a customer fails to pay for water furnished or sewer service provided to the customer's property, discontinue furnishing water or providing sewer service to the property until all amounts for water furnished or sewer service provided are paid, subject to Subsection (2).
(2) Unless a valid lien has been established as provided in Section 17B-1-902, has not been satisfied, and has not been terminated by a sale as provided in Section 17B-1-902, a special district may not:
(a) use a customer's failure to pay for water furnished or sewer service provided to the customer's property as a basis for not furnishing water or providing sewer service to the property after ownership of the property is transferred to a subsequent owner; or
(b) require an owner to pay for water that was furnished or sewer service that was provided to the property before the owner's ownership.
(1) As used in this section:
(a) "Collection costs" means an amount, not to exceed $20, to reimburse a special district for expenses associated with its efforts to collect past due service fees from a customer.
(b) "Customer" means the owner of real property to which a special district has provided a service for which the special district charges a service fee.
(c) "Damages" means an amount equal to the greater of:
(i) $100; and
(ii) triple the past due service fees.
(d) "Default date" means the date on which payment for service fees becomes past due.
(e) "Past due service fees" means service fees that on or after the default date have not been paid.
(f) "Prelitigation damages" means an amount that is equal to the greater of:
(i) $50; and
(ii) triple the past due service fees.
(g) "Service fee" means an amount charged by a special district to a customer for a service, including furnishing water, providing sewer service, and providing garbage collection service, that the district provides to the customer's property.
(2) A customer is liable to a special district for past due service fees and collection costs if:
(a) the customer has not paid service fees before the default date;
(b) the special district mails the customer notice as provided in Subsection (4); and
(c) the past due service fees remain unpaid 15 days after the special district has mailed notice.
(3) If a customer has not paid the special district the past due service fees and collection costs within 30 days after the special district mails notice, the special district may make an offer to the customer that the special district will forego filing a civil action under Subsection (5) if the customer pays the special district an amount that:
(a) consists of the past due service fees, collection costs, prelitigation damages, and, if the special district retains an attorney to recover the past due service fees, a reasonable attorney fee not to exceed $50; and
(b) if the customer's property is residential, may not exceed $100.
(4)
(a) Each notice under Subsection (2)(b) shall:
(i) be in writing;
(ii) be mailed to the customer by the United States mail, postage prepaid;
(iii) notify the customer that:
(A) if the past due service fees are not paid within 15 days after the day on which the special district mailed notice, the customer is liable for the past due service fees and collection costs; and
(B) the special district may file civil action if the customer does not pay to the special district the past due service fees and collection costs within 30 calendar days from the day on which the special district mailed notice; and
(iv) be in substantially the following form:
Date:_____________________________________
To: ______________________________________
Service address: ____________________________
Account or invoice number(s): _________________
Date(s) of service: ___________________________
Amount past due: ____________________________
You are hereby notified that water or sewer service fees (or both) owed by you are in default. In accordance with Section 17B-1-902, Utah Code Annotated, if you do not pay the past due amount within 15 days from the day on which this notice was mailed to you, you are liable for the past due amount together with collection costs of $20.
You are further notified that if you do not pay the past due amount and the $20 collection costs within 30 calendar days from the day on which this notice was mailed to you, an appropriate civil legal action may be filed against you for the past due amount, interest, court costs, attorney fees, and damages in an amount equal to the greater of $100 or triple the past due amounts, but the combined total of all these amounts may not exceed $200 if your property is residential.
(Signed) _______________________________________
Name of special district _____________________________
Address of special district ___________________________
Telephone number of special district ___________________
(b) Written notice under this section is conclusively presumed to have been given if the notice is:
(i) properly deposited in the United States mail, postage prepaid, by certified or registered mail, return receipt requested; and
(ii) addressed to the customer at the customer's:
(A) address as it appears in the records of the special district; or
(B) last-known address.
(5)
(a) A special district may file a civil action against the customer if the customer fails to pay the past due service fees and collection costs within 30 calendar days from the date on which the special district mailed notice under Subsection (2)(b).
(b)
(i) In a civil action under this Subsection (5), a customer is liable to the special district for an amount that:
(A) consists of past due service fees, collection costs, interest, court costs, a reasonable attorney fee, and damages; and
(B) if the customer's property is residential, may not exceed $200.
(ii) Notwithstanding Subsection (5)(b)(i), a court may, upon a finding of good cause, waive interest, court costs, the attorney fee, and damages, or any combination of them.
(c) If a special district files a civil action under this Subsection (5) before 31 calendar days after the day on which the special district mailed notice under Subsection (2)(b), a customer may not be held liable for an amount in excess of past due service fees.
(d) A special district may not file a civil action under this Subsection (5) unless the customer has failed to pay the past due service fees and collection costs within 30 days from the day on which the special district mailed notice under Subsection (2)(b).
(6)
(a) All amounts charged or collected as prelitigation damages or as damages shall be paid to and be the property of the special district that furnished water or provided sewer service and may not be retained by a person who is not that special district.
(b) A special district may not contract for a person to retain any amounts charged or collected as prelitigation damages or as damages.
(7) This section may not be construed to limit a special district from obtaining relief to which it may be entitled under other applicable statute or cause of action.
A person authorized by a special district that provides a service from a water system or sewer system may enter upon a premise furnished with or provided that water service or sewer service to:
(1) examine an apparatus related to or used by the water system or sewer system;
(2) examine the amount of water used or wastewater discharged by the water system or sewer system and the manner of use or discharge; or
(3) make a necessary shutoff for vacancy, delinquency, or a violation of a special district rule or regulation relating to the water service or sewer service.
If a special district runs a surplus product or surplus capacity of a service that the special district is authorized to provide under Section 17B-1-202, the special district may sell or deliver the product or service to others beyond the special district boundaries.
(1) Each special district that levies and collects property taxes shall levy and collect the taxes according to the provisions of Title 59, Chapter 2, Property Tax Act.
(2) As used in this section:
(a) "Appointed board of trustees" means a board of trustees of a special district that includes a member who is appointed to the board of trustees in accordance with Section 17B-1-304, Subsection 17B-1-303(5), Subsection 17B-1-306(5)(g), or any of the applicable provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(b) "Elected board of trustees" means a board of trustees of a special district that consists entirely of members who are elected to the board of trustees in accordance with Subsection (4), Section 17B-1-306, or any of the applicable provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(3)
(a) For a taxable year beginning on or after January 1, 2018, a special district may not levy or collect property tax revenue that exceeds the certified tax rate unless:
(i) to the extent that the revenue from the property tax was pledged before January 1, 2018, the special district pledges the property tax revenue to pay for bonds or other obligations of the special district; or
(ii) the proposed tax or increase in the property tax rate has been approved by:
(A) an elected board of trustees;
(B) subject to Subsection (3)(b), an appointed board of trustees;
(C) a majority of the registered voters within the special district who vote in an election held for that purpose on a date specified in Section 20A-1-204;
(D) the legislative body of the appointing authority; or
(E) the legislative body of:
(I) a majority of the municipalities partially or completely included within the boundary of the specified special district; or
(II) the county in which the specified special district is located, if the county has some or all of the county's unincorporated area included within the boundary of the specified special district.
(b) For a special district with an appointed board of trustees, each appointed member of the board of trustees shall comply with the trustee reporting requirements described in Section 17B-1-1003 before the special district may impose a property tax levy that exceeds the certified tax rate.
(4)
(a) Notwithstanding provisions to the contrary in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts, and subject to Subsection (4)(b), members of the board of trustees of a special district shall be elected, if:
(i) two-thirds of all members of the board of trustees of the special district vote in favor of changing to an elected board of trustees; and
(ii) the legislative body of each municipality or county that appoints a member to the board of trustees adopts a resolution approving the change to an elected board of trustees.
(b) A change to an elected board of trustees under Subsection (4)(a) may not shorten the term of any member of the board of trustees serving at the time of the change.
(5) Subsections (2), (3), and (4) do not apply to:
(a) Title 17B, Chapter 2a, Part 6, Metropolitan Water District Act;
(b) Title 17B, Chapter 2a, Part 10, Water Conservancy District Act; or
(c) a special district in which:
(i) the board of trustees consists solely of:
(A) land owners or the land owners' agents; or
(B) as described in Subsection 17B-1-302(3), (5), (6), or (7), land owners or the land owners' agents or officers; and
(ii) there are no residents within the special district at the time a property tax is levied.
(6) An infrastructure financing district may not pledge or otherwise use any property tax revenue for the payment of bonds.
(1) The rate at which a special district levies a property tax for district operation and maintenance expenses on the taxable value of taxable property within the district may not exceed:
(a) .0008, for a basic special district;
(b) .0004, for a cemetery maintenance district;
(c) .0004, for a drainage district;
(d) .0008, for a fire protection district;
(e) .0008, for an improvement district;
(f) .0005, for a metropolitan water district;
(g) .0004, for a mosquito abatement district;
(h) .0004, for a public transit district;
(i)
(i) .0023, for a service area that:
(A) is located in a county of the first or second class; and
(B)
(I) provides fire protection, paramedic, and emergency services; or
(II) subject to Subsection (3), provides law enforcement services; or
(ii) .0014, for each other service area;
(j) the rates provided in Section 17B-2a-1006, for a water conservancy district;
(k) .0008 for a municipal services district; or
(l) .0004 for an infrastructure financing district.
(2) Property taxes levied by a special district are excluded from the limit applicable to that district under Subsection (1) if the taxes are:
(a) levied under Section 17B-1-1103 by a special district, other than a water conservancy district, to pay principal of and interest on general obligation bonds issued by the district;
(b) levied to pay debt and interest owed to the United States; or
(c) levied to pay assessments or other amounts due to a water users association or other public cooperative or private entity from which the district procures water.
(3) A service area described in Subsection (1)(i)(i)(B)(II) may not collect a tax described in Subsection (1)(i)(i) if a municipality or a county having a right to appoint a member to the board of trustees of the service area under Subsection 17B-2a-905(2) assesses on or after November 30 in the year in which the tax is first collected and each subsequent year that the tax is collected:
(a) a generally assessed fee imposed under Section 17B-1-643 for law enforcement services; or
(b) any other generally assessed fee for law enforcement services.
(1) As used in this section:
(a) "Appointed board of trustees" means a board of trustees of a special district that includes a member who is appointed to the board of trustees in accordance with Section 17B-1-304, Subsection 17B-1-303(5), Subsection 17B-1-306(5)(g), or any of the applicable provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(b)
(i) "Bond issuance" means an issuance of a general obligation bond without an approving election under Section 17B-1-1102.
(ii) "Bond issuance" does not include the issuance of a general obligation bond to refund a general obligation bond that was previously approved by an election.
(c) "Legislative entity" means:
(i) the member's appointing authority, if the appointing authority is a legislative body; or
(ii) the member's nominating entity, if the appointing authority is not a legislative body.
(d)
(i) "Member" means an individual who is appointed to a board of trustees for a special district in accordance with Section 17B-1-304, Subsection 17B-1-303(5), Subsection 17B-1-306(5)(g), or any of the applicable provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(ii) "Member" includes a member of the board of trustees who holds an elected position with a municipality, county, or another special district that is partially or completely included within the boundaries of the special district.
(e) "Nominating entity" means the legislative body that submits nominees for appointment to the board of trustees to an appointing authority.
(f)
(i) "Property tax increase" means a property tax levy that exceeds the certified tax rate for the taxable year.
(ii) "Property tax increase" does not include a property tax levy for a general obligation bond authorized in accordance with an election under Section 17B-1-1102.
(2)
(a) If a special district board of trustees adopts a tentative budget that includes a property tax increase or bond issuance, each member shall report to the member's legislative entity on the property tax increase or bond issuance.
(b)
(i) The special district shall request that each of the legislative entities that appoint or nominate a member to the special district's board of trustees hear the report required by Subsection (2)(a) at a public meeting of each legislative entity.
(ii) The request to make a report may be made by:
(A) the member appointed or nominated by the legislative entity; or
(B) another member of the board of trustees.
(c) The member appointed or nominated by the legislative entity shall make the report required by Subsection (2)(a) at a public meeting that:
(i) complies with Title 52, Chapter 4, Open and Public Meetings Act;
(ii) includes the report as a separate agenda item; and
(iii) is held within 40 days after the day on which the legislative entity receives a request to hear the report.
(d)
(i) If the legislative entity does not have a scheduled meeting within 40 days after the day on which the legislative entity receives a request to hear the report required by Subsection (2)(a), the legislative entity shall schedule a meeting for that purpose.
(ii) If the legislative entity fails to hear the report at a public meeting that meets the criteria described in Subsection (2)(c), the trustee reporting requirements under this section shall be considered satisfied.
(3)
(a) A report on a contemplated property tax increase or bond issuance at a legislative entity's public meeting under Subsection (2)(c) shall include:
(i) a statement that the special district intends to levy a property tax at a rate that exceeds the certified tax rate for the taxable year;
(ii) the dollar amount of and purpose for additional ad valorem tax revenue that would be generated by the proposed increase in the certified tax rate;
(iii) the approximate percentage increase in ad valorem tax revenue for the special district based on the proposed property tax increase; and
(iv) any other information requested by the legislative entity.
(b) A report on a bond issuance at a legislative entity's public meeting under Subsection (2)(c) shall include an explanation, as applicable, of:
(i) the property tax impact, if any, of the bond issuance;
(ii) the expected debt service related to the bond issuance;
(iii) the purpose, remaining principal balance, and maturity date of any outstanding bonds of the issuer;
(iv) the funds other than property taxes available to pay debt service related to the bond issuance;
(v) the schedule of proposed expenditures of bond proceeds;
(vi) property values;
(vii) any additional considerations that the appointed board of trustees determines may be useful to explain the impact to citizens resulting from the bond issuance; and
(viii) any other information requested by the legislative entity.
(c) At a meeting under Subsection (2)(c), the legislative entity shall:
(i) allow time during the meeting for comment from the legislative entity and members of the public on the property tax increase or bond issuance; and
(ii) express the legislative entity's sentiment regarding the contemplated property tax increase.
(4)
(a) If more than one member is appointed to the board of trustees by the same legislative entity, a majority of the members appointed or nominated by the legislative entity shall be present to provide the report required by Subsection (2) and described in Subsection (3).
(b) The chair of the board of trustees shall appoint another member of the board of trustees to provide the report described in Subsection (3) to the legislative entity if:
(i) the member appointed or nominated by the legislative entity is unable or unwilling to provide the report at a public meeting that meets the requirements of Subsection (3)(a); and
(ii) the absence of the member appointed or nominated by the legislative entity results in:
(A) no member who was appointed or nominated by the legislative entity being present to provide the report; or
(B) an inability to comply with Subsection (4)(a).
(5) A special district board of trustees may approve a property tax increase only after the conditions of this section have been satisfied or considered satisfied for each member of the board of trustees.
Subject to the provisions of this part:
(1) each special district that issues bonds shall:
(a) issue them as provided in, as applicable:
(i) Title 11, Chapter 14, Local Government Bonding Act; or
(ii) Title 11, Chapter 42, Assessment Area Act; and
(b) receive the benefits of Title 11, Chapter 30, Utah Bond Validation Act; and
(2) each special district that issues refunding bonds shall issue them as provided in Title 11, Chapter 27, Utah Refunding Bond Act.
(1) Except as provided in Subsections (3) and (7), if a district intends to issue general obligation bonds, the district shall first obtain the approval of district voters for issuance of the bonds at an election held for that purpose as provided in Title 11, Chapter 14, Local Government Bonding Act.
(2) General obligation bonds shall be secured by a pledge of the full faith and credit of the district, subject to, for a water conservancy district, the property tax levy limits of Section 17B-2a-1006.
(3) A district may issue refunding general obligation bonds, as provided in Title 11, Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
(4)
(a) A special district may not issue general obligation bonds if the issuance of the bonds will cause the outstanding principal amount of all of the district's general obligation bonds to exceed the amount that results from multiplying the fair market value of the taxable property within the district, as determined under Subsection 11-14-301(3)(b), by a number that is:
(i) .05, for a basic special district, except as provided in Subsection (7);
(ii) .004, for a cemetery maintenance district;
(iii) .002, for a drainage district;
(iv) .004, for a fire protection district;
(v) .024, for an improvement district;
(vi) .1, for an irrigation district;
(vii) .1, for a metropolitan water district;
(viii) .0004, for a mosquito abatement district;
(ix) .03, for a public transit district;
(x) .12, for a service area; or
(xi) .05 for a municipal services district.
(b) Bonds or other obligations of a special district that are not general obligation bonds are not included in the limit stated in Subsection (4)(a).
(5) A district may not be considered to be a municipal corporation for purposes of the debt limitation of the Utah Constitution, Article XIV, Section 4.
(6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13, Interlocal Cooperation Act, may not be considered to be bonds of a special district that participates in the agreement creating the administrative or legal entity.
(7)
(a) As used in this Subsection (7), "property owner district" means a special district whose board members are elected by property owners, as provided in Subsection 17B-1-1402(1)(b).
(b) A property owner district may issue a general obligation bond with the consent of:
(i) the owners of all property within the district; and
(ii) all registered voters, if any, within the boundary of the district.
(c) A property owner district may use proceeds from a bond issued under this Subsection (7) to fund:
(i) the acquisition and construction of a system or improvement authorized in:
(A) the district's creation resolution; or
(B) Part 14, Basic Special District; and
(ii) a connection outside the boundary of the district between systems or improvements within the boundary of the district.
(d)
(i) The consent under Subsection (7)(b) is sufficient for any requirement necessary for the issuance of a general obligation bond.
(ii) Beginning on the effective date of this bill, once consent is obtained under Subsection (7)(b), the consent is valid for a period of 10 years.
(e) A general obligation bond issued under this Subsection (7):
(i) shall mature no later than 40 years after the date of issuance; and
(ii) is not subject to the limit under Subsection (4)(a)(i).
(f)
(i) A property owner district may not issue a general obligation bond under this Subsection (7) if the issuance will cause the outstanding principal amount of all the district's general obligation bonds to exceed one-half of the market value of all real property within the district.
(ii) Market value under Subsection (7)(f)(i) shall:
(A) be based on the value that the real property will have after all improvements financed by the general obligation bonds are constructed; and
(B) be determined by appraisal by an appraiser who is a member of the Appraisal Institute.
(g) With respect to a general obligation bond issued under this Subsection (7), the board of a property owner district may approve or, by resolution, delegate to one or more officers of the district, the authority to:
(i) approve the final interest rate, price, principal amount, maturity, redemption features, and other terms of the bond;
(ii) approve and execute a document relating to the issuance of the bond; and
(iii) approve a contract, including a contract with a property owner within the district, related to the acquisition and construction of an improvement, facility, or property to be financed with proceeds from the bond.
(h)
(i) A person may commence a lawsuit or other proceeding to contest the legality of the issuance of a general obligation bond issued under this Subsection (7) or any provision relating to the security or payment of the bond if the lawsuit or other proceeding is commenced within 30 days after the publication of:
(A) the resolution authorizing the issuance of the general obligation bond; or
(B) a notice of the bond issuance containing substantially the items required under Subsection 11-14-316(2).
(ii) Following the period described in Subsection (7)(h)(i), no person may bring a lawsuit or other proceeding to contest for any reason the regularity, formality, or legality of a general obligation bond issued under this Subsection (7).
(i) A property owner district that charges and collects an impact fee or other fee on real property may pledge all or a portion of the revenue collected from the impact fee or other fee toward payment of a general obligation bond issued under this Subsection (7).
(j) If a property owner fails to pay a property tax that the property owner district imposes in connection with a general obligation bond issued under this Subsection (7), the district may impose a property tax penalty at an annual rate of .07, in addition to any other penalty allowed by law.
(1)
(a) If a district has issued general obligation bonds, or expects to have debt service payments due on general obligation bonds during the current year, the district's board of trustees may make an annual levy of ad valorem property taxes in order to:
(i) pay the principal of and interest on the general obligation bonds;
(ii) establish a sinking fund for defaults and future debt service on the general obligation bonds; and
(iii) establish a reserve to secure payment of the general obligation bonds.
(b) A levy under Subsection (1)(a) is:
(i) for a water conservancy district, subject to the limit stated in Section 17B-2a-1006; and
(ii) for each other special district, without limitation as to rate or amount.
(2)
(a) Each district that levies a tax under Subsection (1) shall:
(i) levy the tax as a separate and special levy for the specific purposes stated in Subsection (1); and
(ii) apply the proceeds from the levy solely for the purpose of paying the principal of and interest on the general obligation bonds, even though the proceeds may be used to establish or replenish a sinking fund under Subsection (1)(a)(ii) or a reserve under Subsection (1)(a)(iii).
(b) A levy under Subsection (2)(a) is not subject to a priority in favor of a district obligation in existence at the time the bonds were issued.
Bonds may be payable from and secured by the pledge of all or any specified part of:
(1) the revenues to be derived by the special district from providing its services and from the operation of its facilities and other properties;
(2) sales and use taxes, property taxes, and other taxes;
(3) federal, state, or local grants;
(4) in the case of special assessment bonds, the special assessments pledged to repay the special assessment bonds; and
(5) other money legally available to the district.
(1) A special district intending to issue revenue bonds may, but is not required to, submit to district voters for their approval the issuance of the revenue bonds at an election held for that purpose as provided in Title 11, Chapter 14, Local Government Bonding Act.
(2) Each special district that has issued revenue bonds shall impose rates and charges for the services or commodities it provides fully sufficient, along with other sources of district revenues, to carry out all undertakings of the district with respect to its revenue bonds.
(3) A special district that issues revenue bonds may:
(a) agree to pay operation and maintenance expenses of the district from the proceeds of the ad valorem taxes authorized in Subsection 17B-1-103(2)(g); and
(b) for the benefit of bondholders, enter into covenants that:
(i) are permitted by Title 11, Chapter 14, Local Government Bonding Act; and
(ii) provide for other pertinent matters that the board of trustees considers proper to assure the marketability of the bonds.
The board of trustees shall fix the rate or rates for services or commodities provided by the district that will, in conjunction with the proceeds of any maintenance and operation tax and other district revenues:
(1) pay the district's operating expenses;
(2) provide for repairs and depreciation of works owned or operated by the district;
(3) pay the interest on any bonds issued by the district; and
(4) provide, as much as practicable, a sinking or other fund to pay the principal of the bonds as they become due.
All bonds issued or contracts entered into by a special district before April 30, 2007 are ratified, validated, and confirmed and declared to be valid and legally binding obligations of the district in accordance with their terms.
As used in this part:
(1) "Eligible function" means:
(a) a power conferred on a special district under this title;
(b) a tax or assessment levied by a special district;
(c) an act or proceeding that a special district:
(i) has taken; or
(ii) contemplates taking; or
(d) a district contract, whether already executed or to be executed in the future, including a contract for the acquisition, construction, maintenance, or operation of works for the district.
(2) "Validation order" means a court order adjudicating the validity of an eligible function.
(3) "Validation petition" means a petition requesting a validation order.
(4) "Validation proceedings" means judicial proceedings occurring in district court pursuant to a validation petition.
(1) The board of trustees of a special district may at any time file a validation petition.
(2) Each validation petition shall:
(a) describe the eligible function for which a validation order is sought;
(b) set forth:
(i) the facts upon which the validity of the eligible function is founded; and
(ii) any other information or allegations necessary to a determination of the validation petition;
(c) be verified by the chair of the board of trustees; and
(d) be filed in the district court of the county in which the district's principal office is located.
(3) A special district may amend or supplement a validation petition:
(a) at any time before the hearing under Section 17B-1-1203; or
(b) after the hearing under Section 17B-1-1203, with permission of the court.
(1) Upon the filing of a validation petition, the district court shall enter an order setting a date, time, and place for a hearing on the validation petition.
(2) A hearing under Subsection (1) may not be held less than 21 days after the filing of the validation petition.
(1) Upon the entry of an order under Section 17B-1-1203 setting a hearing on a validation petition, the special district that filed the petition shall publish notice, as a class A notice under Section 63G-30-102, for at least 21 days before the date of the hearing.
(2) Each notice under Subsection (1) shall:
(a) state the date, time, and place of the hearing on the validation petition;
(b) include a general description of the contents of the validation petition; and
(c) if applicable, state the location where a complete copy of a contract that is the subject of the validation petition may be examined.
(3) If a district amends or supplements a validation petition under Subsection 17B-1-1202(3) after publishing and posting notice as required under Subsection (1), the district is not required to publish or post notice again unless required by the court.
(1) An owner of property within the district or a person interested in a contract or proposed contract that is the subject of a validation petition may appear and answer or otherwise plead in response to the validation petition:
(a) at any time before the hearing under Section 17B-1-1203; or
(b) within any additional period of time that the district court allows.
(2) If a person fails to appear and answer or otherwise plead in the time allowed under Subsection (1):
(a) the allegations of the validation petition shall be considered admitted by that person; and
(b) that person may not participate in the validation proceedings.
(1) At each validation petition hearing, the court shall determine all matters and issues affecting the questions raised by the validation petition.
(2) The district court shall:
(a) advance each matter pertaining to validation proceedings as a matter of immediate public interest and concern; and
(b) hear each matter pertaining to validation proceedings at the earliest practicable moment.
(3) The district court shall disregard each error, irregularity, or omission that does not affect the substantial rights of the parties.
(4) Except as otherwise specified in this part, the Utah Rules of Civil Procedure shall govern validation proceedings in matters of pleading and practice before the district court.
(1) After the hearing under Section 17B-1-1203 on a validation petition, the district court shall:
(a) make and enter written findings of fact and conclusions of law; and
(b) render a judgment as warranted.
(2) A district court may apportion costs among the parties as the court determines appropriate.
(3) A district court judgment adjudicating matters raised by a validation petition:
(a) is binding and conclusive as to the special district and all other parties to the validation proceedings; and
(b) constitutes a permanent injunction against any action or proceeding to contest any matter adjudicated in the validation proceedings.
(4)
(a) Each appeal of a final judgment in validation proceedings shall be filed with the Supreme Court.
(b) An appeal of a final judgment in validation proceedings may be filed only by a party to the validation proceedings.
(c) The appellate court hearing an appeal under this section shall expedite the hearing of the appeal.
For purposes of this part:
(1) "Active" means, with respect to a special district, that the district is not inactive.
(2) "Administrative body" means:
(a) if the special district proposed to be dissolved has a duly constituted board of trustees in sufficient numbers to form a quorum, the board of trustees; or
(b) except as provided in Subsection (2)(a):
(i) for a special district located entirely within a single municipality, the legislative body of that municipality;
(ii) for a special district located in multiple municipalities within the same county or at least partly within the unincorporated area of a county, the legislative body of that county; or
(iii) for a special district located within multiple counties, the legislative body of the county whose boundaries include more of the special district than is included within the boundaries of any other county.
(3) "Clerk" means:
(a) the board of trustees if the board is also the administrative body under Subsection (2)(a);
(b) the clerk or recorder of the municipality whose legislative body is the administrative body under Subsection (2)(b)(i); or
(c) the clerk of the county whose legislative body is the administrative body under Subsection (2)(b)(ii) or (iii).
(4) "Inactive" means, with respect to a special district, that during the preceding three years the district has not:
(a) provided any service or otherwise operated;
(b) received property taxes or user or other fees; and
(c) expended any funds.
(5) "Registered voter petition" means petition under Subsection 17B-1-1303(1)(a)(ii)(B) or 17B-1-1303(2)(c)(ii).
(1) A special district may be dissolved as provided in this part.
(2) No later than 180 days after the payment of all debt of an infrastructure financing district, the board of trustees of the infrastructure financing district shall adopt a resolution to dissolve the infrastructure financing district.
The process to dissolve a special district may be initiated by:
(1) for an inactive special district:
(a)
(i) for a special district whose board of trustees is elected by electors based on the acre-feet of water allotted to the land owned by the elector, a petition signed by the owners of 25% of the acre-feet of water allotted to the land within the special district; or
(ii) for all other districts:
(A) a petition signed by the owners of private real property that:
(I) is located within the special district proposed to be dissolved;
(II) covers at least 25% of the private land area within the special district; and
(III) is equal in assessed value to at least 25% of the assessed value of all private real property within the special district; or
(B) a petition signed by registered voters residing within the special district proposed to be dissolved equal in number to at least 25% of the number of votes cast in the district for the office of governor at the last regular general election before the filing of the petition; or
(b) a resolution adopted by the administrative body;
(2) for an active special district, a petition signed by:
(a) for a special district whose board of trustees is elected by electors based on the acre-feet of water allotted to the land owned by the elector, the owners of 33% of the acre-feet of water allotted to the land within the special district;
(b) for a special district created to acquire or assess a groundwater right for the development and execution of a groundwater management plan in coordination with the state engineer in accordance with Section 73-5-15, the owners of groundwater rights that:
(i) are diverted within the district; and
(ii) cover at least 33% of the total amount of groundwater diverted in accordance with the groundwater rights within the district as a whole; or
(c) for all other districts:
(i) the owners of private real property that:
(A) is located within the special district proposed to be dissolved;
(B) covers at least 33% of the private land area within the special district; and
(C) is equal in assessed value to at least 25% of the assessed value of all private real property within the special district; or
(ii) 33% of registered voters residing within the special district proposed to be dissolved; or
(3) for an infrastructure financing district, a resolution adopted by the board of trustees.
(1) Each petition under Subsection 17B-1-1303(1)(a) or (2) shall:
(a) indicate the typed or printed name and current residence address of each owner of acre-feet of water, property owner, or registered voter signing the petition;
(b) if it is a petition signed by the owners of acre-feet of water or property owners, indicate the address of the property as to which the owner is signing;
(c) designate up to three signers of the petition as sponsors, one of whom shall be designated the contact sponsor, with the mailing address and telephone number of each; and
(d) be filed with the clerk.
(2) A signer of a petition to dissolve a special district may withdraw, or, once withdrawn, reinstate the signer's signature at any time until 30 days after the public hearing under Section 17B-1-1306.
(3) The first page of a petition described in this section shall include the following statement in at least the same size type as the majority of the other statements on the page:
"WARNING TO SIGNERS WITH PRIVATE VOTER REGISTRATION RECORDS
If you sign this petition, your voter identification number and the date you signed may be publicly disclosed. This disclosure may occur even if you are an at-risk voter with a voter registration record that has been classified as a private record."
(1) Within 30 days after the filing of a petition under Subsection 17B-1-1303(1)(a) or (2), the clerk shall:
(a) with the assistance of officers of the county in which the special district is located from whom the clerk requests assistance, determine whether the petition meets the requirements of Section 17B-1-1303 and Subsection 17B-1-1304(1); and
(b)
(i) if the clerk determines that the petition complies with the requirements, certify the petition and mail or deliver written notification of the certification to the contact sponsor; or
(ii) if the clerk determines that the petition fails to comply with any of the requirements, reject the petition and mail or deliver written notification of the rejection and the reasons for the rejection to the contact sponsor.
(2) For a registered voter petition, the county clerk shall determine or shall assist a board of trustees or municipal clerk or recorder with determining whether a signer is a registered voter using the procedures described in Section 20A-1-1002.
(3)
(a) If the clerk rejects a petition under Subsection (1)(b)(ii), the petition may be amended to correct the deficiencies for which it was rejected and then refiled.
(b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be used toward fulfilling the applicable signature requirement of the petition as amended under Subsection (3)(a).
(4) The clerk shall process an amended petition filed under Subsection (3)(a) in the same manner as an original petition under Subsection (1).
(5)
(a) A signer of a petition may remove or, once removed, reinstate the signer's signature at any time before the public hearing under Section 17B-1-1306 by submitting a written statement requesting removal or reinstatement with the clerk.
(b) For a registered voter petition:
(i) a statement described in Subsection (5)(a) shall comply with the requirements described in Subsection 20A-1-1003(2); and
(ii) the county clerk shall determine or shall assist a board of trustees or municipal clerk or recorder with determining whether to remove or reinstate the signer's signature using the procedures described in Subsection 20A-1-1003(3).
(1) For each petition certified under Section 17B-1-1305 and each resolution that an administrative body adopts under Subsection 17B-1-1303(1)(b), the administrative body shall hold a public hearing on the proposed dissolution.
(2) The administrative body shall hold a public hearing under Subsection (1):
(a) no later than 45 days after certification of the petition under Section 17B-1-1305 or adoption of a resolution under Subsection 17B-1-1303(1)(b), as the case may be;
(b) within the special district proposed to be dissolved;
(c) on a weekday evening other than a holiday beginning no earlier than 6 p.m.; and
(d) for the purpose of allowing:
(i) the administrative body to explain the process the administrative body will follow to study and prepare the proposed dissolution;
(ii) the public to ask questions and obtain further information about the proposed dissolution and issues raised by it; and
(iii) any interested person to address the administrative body concerning the proposed dissolution.
(3) A quorum of the administrative body shall be present throughout each public hearing under this section.
(1) Before holding a public hearing required under Section 17B-1-1306, the administrative body shall publish notice of the public hearing and of the proposed dissolution for the special district proposed to be dissolved, as a class B notice under Section 63G-30-102, for 30 days before the day of the public hearing.
(2) Each notice required under Subsection (1) shall:
(a) identify the special district proposed to be dissolved and the service it was created to provide; and
(b) state the date, time, and location of the public hearing.
(1)
(a) Within 180 days after the day on which the administrative body holds the public hearing described in Section 17B-1-1306, the administrative body shall hold a second public hearing to:
(i) publicly explain the result of the study and preparation described in Subsection 17B-1-1306(2)(d)(i);
(ii) describe whether the proposed dissolution meets each criterion described in Subsection (2); and
(iii) adopt a resolution in accordance with Subsection (1)(b) or (c).
(b) Subject to Subsection (2), after a proposed dissolution petition has been certified under Section 17B-1-1305, the administrative body shall adopt a resolution:
(i) certifying that the proposed dissolution satisfies the criteria described in Subsection (2); and
(ii)
(A) for an inactive special district, approving the dissolution of the special district; or
(B) for an active special district, initiating the dissolution election described in Section 17B-1-1309.
(c) Subject to Subsection (2), for a proposed dissolution of an inactive district that an administrative body initiates by adopting a resolution under Subsection 17B-1-1303(1)(b), the administrative body may adopt a resolution:
(i) certifying that the proposed dissolution satisfies the criteria described in Subsection (2); and
(ii) approving the dissolution of the inactive special district.
(2) The administrative body may not adopt a resolution under Subsection (1) unless:
(a) any outstanding debt of the special district is:
(i) satisfied and discharged in connection with the dissolution; or
(ii) assumed by another governmental entity with the consent of all the holders of that debt and all the holders of other debts of the special district;
(b) for a special district that has provided service during the preceding three years or undertaken planning or other activity preparatory to providing service:
(i) another entity has committed to:
(A) provide the same service to the area being served or proposed to be served by the special district; and
(B) purchase, at fair market value, the assets of the special district that are required to provide the service; and
(ii) all who are to receive the service have consented to the service being provided by the other entity; and
(c) all outstanding contracts to which the special district is a party are resolved through mutual termination or the assignment of the special district's rights, duties, privileges, and responsibilities to another entity with the consent of the other parties to the contract.
(1) When an administrative body adopts a resolution to initiate a dissolution election under Subsection 17B-1-1308(1)(b)(ii), an election shall be held on the question of whether the special district should be dissolved by:
(a) if the special district proposed to be dissolved is located entirely within a single county, the special district clerk, in cooperation with the county clerk; or
(b) if the special district proposed to be dissolved is located within more than one county, in cooperation with the special district clerk:
(i) the clerk of each county where part of the special district is located in more than one municipality or in an unincorporated area within the same county;
(ii) the clerk or recorder of each municipality where part of the special district is not located in another municipality or in an unincorporated area within the same county; and
(iii) the clerk of each county where part of the special district is located only in an unincorporated area within the county.
(2) Each election under Subsection (1) shall be held at the next special or regular general election that is more than 60 days after the day on which the administrative body adopts a resolution in accordance with Section 17B-1-1308.
(3)
(a) If the special district proposed to be dissolved is located in more than one county, the special district clerk shall coordinate with the officials described in Subsection (1)(b) to ensure that the election is held on the same date and in a consistent manner in each jurisdiction.
(b) The clerk of each county and the clerk or recorder of each municipality involved in an election under Subsection (1) shall cooperate with the special district clerk in holding the election.
(4) If the special district proposed to be dissolved is an irrigation district under Title 17B, Chapter 2a, Part 5, Irrigation District Act:
(a) the electors shall consist of the landowners whose land has allotments of water through the district; and
(b) each elector may cast one vote for each acre-foot or fraction of an acre-foot of water allotted to the land the elector owns within the district.
(5) If the special district proposed to be dissolved is a district created to acquire or assess a groundwater right for the development and execution of a groundwater management plan in accordance with Section 73-5-15:
(a) the electors shall consist of the owners of groundwater rights within the district; and
(b) each elector may cast one vote for each acre-foot or fraction of an acre-foot of groundwater that is within the district and reflected in the elector's water right.
(6) If the special district proposed to be dissolved is a basic special district, except for a district described in Subsection (5), and if the area of the basic special district contains less than one residential unit per 50 acres of land at the time of the filing of a petition described in Subsection 17B-1-1303(2):
(a) the electors shall consist of the owners of privately owned real property within a basic special district under Title 17B, Chapter 1, Part 14, Basic Special District; and
(b) each elector may cast one vote for each acre or fraction of an acre of land that the elector owns within the district.
(7) Except as otherwise provided in this part, Title 20A, Election Code, governs each election under Subsection (1).
(1)
(a) Within the time specified in Subsection (1)(b), an administrative body shall file with the lieutenant governor a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3).
(b) The administrative body shall file a notice of an impending boundary action under Subsection (1)(a) within 30 days after the day on which, as applicable:
(i) the administrative body adopts a resolution approving the dissolution of an inactive special district;
(ii) a majority of the voters within an active special district approve the dissolution of the special district in an election described in Subsection 17B-1-1309(2); or
(iii) for an infrastructure financing district, the administrative body adopts a resolution to dissolve the infrastructure financing district.
(2) Upon the lieutenant governor's issuance of a certificate of dissolution under Section 67-1a-6.5, the administrative body shall:
(a) if the special district was located within the boundary of a single county, submit to the recorder of that county:
(i) the original:
(A) notice of an impending boundary action; and
(B) certificate of dissolution; and
(ii) a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1); or
(b) if the special district was located within the boundaries of more than a single county:
(i) submit to the recorder of one of those counties:
(A) the original notice of an impending boundary action and certificate of dissolution; and
(B) if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1); and
(ii) submit to the recorder of each other county:
(A) a certified copy of the notice of an impending boundary action and certificate of dissolution; and
(B) if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1).
(3) Upon the lieutenant governor's issuance of the certificate of dissolution under Section 67-1a-6.5, the special district is dissolved.
(4)
(a) After the dissolution of a special district under this part, the administrative body shall use any assets of the special district remaining after paying all debts and other obligations of the special district to pay costs associated with the dissolution process.
(b) If the administrative body is not the board of trustees of the dissolved special district, the administrative body shall pay any costs of the dissolution process remaining after exhausting the remaining assets of the special district as described in Subsection (4)(a).
(c) If the administrative body is the board of trustees of the dissolved special district, each entity that has committed to provide a service that the dissolved special district previously provided, as described in Subsection 17B-1-1308(2)(b), shall pay, in the same proportion that the services the entity commits to provide bear to all of the services the special district provided, any costs of the dissolution process remaining after exhausting the remaining assets of the dissolved special district described in Subsection (4)(a).
(5) The administrative body shall distribute any assets of the special district that remain after the payment of debts, obligations, and costs under Subsection (4) in the following order of priority:
(a) if there is a readily identifiable connection between the remaining assets and a financial burden borne by the real property owners in the dissolved special district, proportionately to those real property owners;
(b) if there is a readily identifiable connection between the remaining assets and a financial burden borne by the recipients of a service that the dissolved special district provided, proportionately to those recipients; and
(c) subject to Subsection (6), to each entity that has committed to provide a service that the dissolved special district previously provided, as described in Subsection 17B-1-1308(2)(b)(i), in the same proportion that the services the entity commits to provide bear to all of the services the special district provided.
(6) An entity that receives cash reserves of the dissolved special district under Subsection (5)(a)(iii) may not use the cash reserves:
(a) in any way other than for the purpose the special district originally intended; or
(b) in any area other than within the area that the dissolved special district previously served.
A basic special district:
(1) operates under, is subject to, and has the powers set forth in this chapter; and
(2) is not subject to Chapter 2a, Provisions Applicable to Different Types of Special Districts.
(1) As specified in a petition under Subsection 17B-1-203(1)(a) or (b) or a resolution under Subsection 17B-1-203(1)(e) or (f), and except as provided in Subsection (2), the members of a board of trustees of a basic special district may be:
(a)
(i) elected by registered voters; or
(ii) appointed by the responsible body, as defined in Section 17B-1-201; or
(b) if the area of the special district contains less than one residential dwelling unit per 50 acres of land at the time the resolution is adopted or the petition is filed, elected by the owners of real property within the special district based on:
(i) the amount of acreage owned by property owners;
(ii) the assessed value of property owned by property owners; or
(iii) water rights:
(A) relating to the real property within the special district;
(B) that the real property owner:
(I) owns; or
(II) has transferred to the special district.
(2) As specified in a groundwater right owner petition under Subsection 17B-1-203(1)(c) or a resolution under Subsection 17B-1-203(1)(e) or (f), the members of a board of trustees of a basic special district created to manage groundwater rights the district acquires or assesses under Section 17B-1-202 shall be:
(a) subject to Section 17B-1-104.5, elected by the owners of groundwater rights that are diverted within the special district;
(b) appointed by the responsible body, as defined in Section 17B-1-201; or
(c) elected or appointed as provided in Subsection (3).
(3) A petition under Subsection 17B-1-203(1)(a) or (b) and a resolution under Subsection 17B-1-203(1)(e) or (f) may provide for a transition from one or more methods of election or appointment under Subsection (1) or (2) to one or more other methods of election or appointment based upon milestones or events that the petition or resolution identifies.
A person may not create a basic special district on or after May 12, 2020.
(1)
(a) As used in this section, "eligible basic special district" means a basic special district:
(i) created before April 15, 2011;
(ii) that issued limited general obligation bonds in 2024; and
(iii) for which there was not one or more public infrastructure districts within the boundaries of the basic special district as of January 1, 2025.
(2)
(a) Subject to Subsection (3), an eligible basic special district may create a public infrastructure district, in accordance with Title 17D, Chapter 4, Public Infrastructure District Act, for any area located within the boundaries of the eligible basic special district.
(b) An eligible basic special district that creates a public infrastructure district is the creating entity for purposes of Title 17D, Chapter 4, Public Infrastructure District Act, and shall receive any petitions required to be submitted to a creating entity.
(3) When a public infrastructure district is created pursuant to this section:
(a) the public infrastructure district shall have the same powers as the eligible basic special district that is the public infrastructure district's creating entity; and
(b) upon creation of the public infrastructure district, the area within the public infrastructure district shall automatically be withdrawn from the eligible basic special district and shall no longer be part of the eligible basic special district.
(4) In addition to the requirements of Section 17D-4-202, an eligible basic special district shall ensure that the governing document for a public infrastructure district created under this section provides for the election of the initial and future boards of the public infrastructure district using the same method as the election of the board of the eligible basic special district.
(5) In addition to the other powers described in this part, an eligible basic special district may:
(a) fund, in whole or in part, the acquisition and construction of a public facility for use by one or more government entities;
(b) transfer the eligible basic special district's ownership interest in a public facility to another political subdivision pursuant to a written agreement between the eligible basic special district and the receiving political subdivision; and
(c) fund, in whole or in part, the acquisition or construction of:
(i) privately owned affordable housing, consisting of single-family dwellings or townhomes;
(ii) facilities for health care, recreation, community arts, or an amphitheater, whether those facilities are publicly or privately owned; and
(iii) a privately owned grocery store, if there is not a grocery store located within the eligible basic special district's boundary.
(1) As used in this section:
(a) "Eligible basic special district" means a basic special district:
(i) created before April 15, 2011; and
(ii) that issued limited general obligation bonds in 2024.
(b) "Qualified development zone" means the same as that term is defined in Subsection 59-12-205(7)(a)(ii)(E).
(2) An eligible basic special district may receive revenue from the tax imposed under Section 59-12-205.
(3) An eligible basic special district that receives revenue as described in Subsection (2) shall use the revenue:
(a) for any purpose the basic special district is authorized to perform under this chapter; and
(b)
(i) in a manner approved by the municipality where the qualified development zone is located; or
(ii) in a manner approved by a county, if the qualified development zone is located in an unincorporated area of the county.
(1) Each cemetery maintenance district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to cemetery maintenance districts.
(3) A cemetery maintenance district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(5) A cemetery maintenance district shall comply with the applicable provisions of Title 8, Cemeteries.
A cemetery maintenance district may not be created in a city of the first or second class.
A cemetery maintenance district may issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district.
In addition to the powers and duties of a board of trustees under Chapter 1, Part 3, Board of Trustees, each cemetery maintenance district board of trustees shall beautify, improve, and maintain each cemetery within the district.
(1) If the area of a cemetery maintenance district is included entirely within the boundaries of a single municipality, each member of its board of trustees shall be appointed and each vacancy on the board of trustees shall be filled by a person appointed by the legislative body of that municipality, as provided in Section 17B-1-304.
(2) For each other cemetery maintenance district, each member of its board of trustees shall be appointed and each vacancy on the board of trustees shall be filled by a person appointed by the legislative body of the county in which the district is located, as provided in Section 17B-1-304.
Each parcel of property within a cemetery maintenance district shall be:
(1) benefitted by the creation of the district and by improvements made by the district, ratably with all other parcels of property within the district in proportion to the parcel's taxable value; and
(2) assessed equally in proportion to its taxable value for the purpose of cemetery improvement and maintenance.
This part is known as the "Drainage District Act."
As used in this part:
(1) "Ditch" includes a drain or natural or constructed watercourse, whether open, covered, or tiled, and whether inside or outside the drainage district.
(2) "Drainage" includes the reclamation, protection, or betterment of land by leading, carrying, withholding, or pumping excess water from land through canals, ditches, pipes, or other means.
(1) Each drainage district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to drainage districts.
(3) A drainage district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
No new drainage district may be created.
In addition to the powers conferred on a drainage district under Section 17B-1-103, a drainage district may:
(1) enter upon land for the purpose of examining the land or making a survey;
(2) locate a necessary drainage canal with any necessary branches on land that the district's board of trustees considers best;
(3) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(4) after the payment or tender of compensation allowed, go upon land to construct proposed works, and thereafter enter upon that land to maintain or repair the works;
(5) appropriate water for useful and beneficial purposes;
(6) regulate and control, for the benefit of landholders within the district, all water developed, appropriated, or owned by the district;
(7) appropriate, use, purchase, develop, sell, and convey water and water rights in the same manner and for the same use and purposes as a private person;
(8) widen, straighten, deepen, enlarge, or remove any obstruction or rubbish from any watercourse, whether inside or outside the district; and
(9) if necessary, straighten a watercourse by cutting a new channel upon land not already containing the watercourse, subject to the landowner receiving compensation for the land occupied by the new channel and for any damages, as provided under the law of eminent domain.
(1) Subject to Subsection (2), each member of the board of trustees of a drainage district shall be appointed by the legislative body of the county in which the district is located.
(2) If a drainage district is located in more than one county, a county legislative body may not appoint more than two members.
If a drainage district board of trustees determines that a public highway, road, street, or railroad right-of-way is or will be benefitted by district drainage canals or other works that have been or will be constructed:
(1) the district shall assess benefits and taxes against the public highway, road, street, or railroad right-of-way in the same manner as if the highway, road, street, or railroad right-of-way were in private ownership;
(2) the district may treat the highway, road, street, or railroad right-of-way the same as it would treat private land; and
(3) the state or local entity having control of the public highway, road, or street or the owner of the railroad right-of-way shall pay the applicable taxes assessed against the land, whether or not it owns the fee simple title to the land covered by the highway, road, street, or railroad right-of-way.
(1)
(a) A drainage district may construct each necessary bridge and culvert across or under a public highway, road, street, or railroad right-of-way to enable the district to construct and maintain a canal, drain, or ditch necessary as part of the drainage system of the district.
(b) Before a drainage district constructs a bridge or culvert across or under a railroad right-of-way, the district shall first give notice to the railway authority empowered to build or construct bridges and culverts.
(2)
(a) A railway authority may, within 30 days after the notice under Subsection (1)(b) and at its own expense, build the bridge or culvert according to its own plans.
(b) Each railway authority that builds a bridge or culvert as provided in Subsection (2)(a) shall construct the bridge or culvert:
(i) so as not to interfere with the free and unobstructed flow of water passing through the canal or drain; and
(ii) at points that are indicated by a competent drainage engineer.
(1) Subject to Subsection (2), a drainage district may treat state land the same as private land with respect to the drainage of land for agricultural purposes.
(2) A drainage district may not affect school or institutional trust land under this part or Chapter 1, Provisions Applicable to All Special Districts, without the consent of the director of the School and Institutional Trust Lands Administration acting in accordance with Sections 53C-1-102 and 53C-1-303.
(3) The state and each person holding unpatented state land under entries or contracts of purchase from the state have all the rights, privileges, and benefits under this part and Chapter 1, Provisions Applicable to All Special Districts, that a private owner of that land would have.
(1) When entering upon land for the purpose of constructing, maintaining, or repairing works, a drainage district may not do more damage than the necessity of the occasion requires.
(2)
(a) A person who willfully prevents or prohibits an agent of a drainage district from entering upon land when the district is authorized to enter the land is guilty of a class C misdemeanor.
(b)
(i) Each person found guilty under Subsection (2)(a) shall be fined a sum not to exceed $25 per day for each day the person prevented or prohibited the district from entering upon land.
(ii) Each fine under Subsection (2)(b)(i) shall be paid to the district.
(1) A person who wrongfully and purposely fills, cuts, injures, destroys, or impairs the usefulness of a drain, ditch, or other work of a drainage district is guilty of a class C misdemeanor.
(2) Each person who negligently, wrongfully, or purposely fills, cuts, injures, destroys, or impairs the usefulness of a drain, ditch, levee, or other work of a drainage district or obstructs or fills any natural stream or outlet used by a drainage district, whether inside or outside the district, shall be liable to the district for all resulting damages.
This part is known as the "Fire Protection District Act."
No new fire protection district may be created.
(1) Each fire protection district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to fire protection districts.
(3) A fire protection district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
In addition to the powers conferred on a fire protection district under Section 17B-1-103, a fire protection district may issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district.
(1) Except as provided in Subsection (2), the board of trustees of a fire protection district may be appointed or elected, as provided in the documents establishing the district.
(2) If the area of a fire protection district consists of all the area of a single county excluding the area of all first and second class cities in the county, the legislative body of that county shall constitute the board of trustees of the fire protection district.
(3) The composition and method of appointing or electing board of trustees members of each fire protection district existing on April 30, 2007 are validated, ratified, and confirmed.
Each office of a fire protection district board of trustees and each principal place of business of a fire protection district shall be within:
(1) the district; or
(2) the county in which the district is located and as near as possible to the district.
This part is known as the "Improvement District Act."
(1) Each improvement district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to improvement districts.
(3) An improvement district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(1) In addition to the powers conferred on an improvement district under Section 17B-1-103, an improvement district may:
(a) acquire through construction, purchase, gift, or condemnation, or any combination of these methods, and operate all or any part of a system for:
(i) the supply, treatment, and distribution of water;
(ii) the collection, treatment, and disposition of sewage;
(iii) the collection, retention, and disposition of storm and flood waters;
(iv) the generation, distribution, and sale of electricity, subject to Section 17B-2a-406; and
(v) the transmission of natural or manufactured gas if:
(A) the system is connected to a gas plant, as defined in Section 54-2-1, of a gas corporation, as defined in Section 54-2-1, that is regulated under Section 54-4-1;
(B) the system is to be used to facilitate gas utility service within the district; and
(C) the gas utility service was not available within the district before the acquisition of the system;
(b) issue bonds in accordance with Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the improvement district;
(c) appropriate or acquire water or water rights inside or outside the improvement district's boundaries;
(d) sell water or other services to consumers residing outside the improvement district's boundaries;
(e) enter into a contract with a gas corporation that is regulated under Section 54-4-1 to:
(i) provide for the operation or maintenance of all or part of a system for the transmission of natural or manufactured gas; or
(ii) lease or sell all or a portion of a system described in Subsection (1)(e)(i) to a gas corporation;
(f) enter into a contract with a person for:
(i) the purchase or sale of water or electricity;
(ii) the use of any facility owned by the person; or
(iii) the purpose of handling the person's industrial and commercial waste and sewage;
(g) require pretreatment of industrial and commercial waste and sewage; and
(h) impose a penalty or surcharge against a public entity or other person with which the improvement district has entered into a contract for the construction, acquisition, or operation of all or a part of a system for the collection, treatment, and disposal of sewage, if the public entity or other person fails to comply with the provisions of the contract.
(2) The new gas utility service under Subsection (1)(a)(v)(B) shall be provided by a gas corporation regulated under Section 54-4-1 and not by the district.
(3) An improvement district may not begin to provide sewer service to an area where sewer service is already provided by an existing sewage collection system operated by a municipality or other political subdivision unless the municipality or other political subdivision gives its written consent.
(4) An improvement district authorized to operate all or any part of a system for the collection, treatment, or disposition of sewage may acquire, construct, or operate a resource recovery project in accordance with Section 19-6-508.
(1) As used in this section:
(a) "County district" means an improvement district that does not include within its boundaries any territory of a municipality.
(b) "County member" means a member of a board of trustees of a county district.
(c) "Electric district" means an improvement district that was created for the purpose of providing electric service.
(d) "Included municipality" means a municipality whose boundaries are entirely contained within but do not coincide with the boundaries of an improvement district.
(e) "Municipal district" means an improvement district whose boundaries coincide with the boundaries of a single municipality.
(f) "Populous regular district" means a regular district with a population exceeding 250,000.
(g) "Qualified municipality" means a municipality:
(i) whose boundary includes an area that is within a populous regular district and an area that is outside the populous regular district;
(ii) a portion of which receives one or more services from a populous regular district; and
(iii) whose population receiving service from the populous regular district is greater than the population of an included municipality within the populous regular district.
(h) "Regular district" means an improvement district that is not a county district, electric district, or municipal district.
(i) "Remaining area" means the area of a regular district that:
(i) is outside the boundaries of an included municipality or qualified municipality; and
(ii) includes the area of an included municipality or qualified municipality whose legislative body elects, under Subsection (5)(a)(ii), not to appoint a member to the board of trustees of the regular district.
(j) "Remaining area member" means a member of a board of trustees of a regular district who is appointed, or, if applicable, elected to represent the remaining area of the district.
(2) The legislative body of the municipality included within a municipal district may:
(a) elect, at the time of the creation of the district, to be the board of trustees of the district; and
(b) adopt at any time a resolution providing for:
(i) the election of board of trustees members, as provided in Section 17B-1-306; or
(ii) the appointment of board of trustees members, as provided in Section 17B-1-304.
(3)
(a) The legislative body of a county whose unincorporated area is partly or completely within a county district may:
(i) elect, at the time of the creation of the district, to be the board of trustees of the district, even though a member of the legislative body of the county may not meet the requirements of Subsection 17B-1-302(1);
(ii) adopt at any time a resolution providing for:
(A) the election of board of trustees members, as provided in Section 17B-1-306; or
(B) except as provided in Subsection (4), the appointment of board of trustees members, as provided in Section 17B-1-304; and
(iii) if the conditions of Subsection (3)(b) are met, appoint a member of the legislative body of the county to the board of trustees, except that the legislative body of the county may not appoint more than three members of the legislative body of the county to the board of trustees.
(b) A legislative body of a county whose unincorporated area is partly or completely within a county district may take an action under Subsection (3)(a)(iii) if:
(i) more than 35% of the residences within a county district that receive service from the district are seasonally occupied homes, as defined in Subsection 17B-1-302(2)(a)(ii);
(ii) the board of trustees are appointed by the legislative body of the county; and
(iii) there are at least two appointed board members who meet the requirements of Subsections 17B-1-302(1), (2), (3), (5), (6), and (7), except that a member of the legislative body of the county need not satisfy the requirements of Subsections 17B-1-302(1), (2), and (3).
(4) Subject to Subsection (6)(d), the legislative body of a county may not adopt a resolution providing for the appointment of board of trustees members as provided in Subsection (3)(a)(ii)(B) at any time after the county district is governed by an elected board of trustees unless:
(a) the elected board has ceased to function;
(b) the terms of all of the elected board members have expired without the board having called an election; or
(c) the elected board of trustees unanimously adopts a resolution approving the change from an elected to an appointed board.
(5)
(a)
(i) Except as provided in Subsection (5)(a)(ii), the legislative body of each included municipality and, if applicable, the legislative body of each qualified municipality shall each appoint one member to the board of trustees of a regular district.
(ii) The legislative body of an included municipality and the legislative body of a qualified municipality may elect not to appoint a member to the board under Subsection (5)(a)(i).
(b) Except as provided in Subsection (6), the legislative body of each county whose boundaries include a remaining area shall appoint all other members to the board of trustees of a regular district.
(6) Notwithstanding Subsection (3), each remaining area member of a regular district and each county member of a county district shall be elected, as provided in Section 17B-1-306, if:
(a) the petition or resolution initiating the creation of the district provides for remaining area or county members to be elected;
(b) the district holds an election to approve the district's issuance of bonds;
(c) for a regular district, an included municipality elects, under Subsection (5)(a)(ii), not to appoint a member to the board of trustees; or
(d)
(i) at least 90 days before the municipal general election or regular general election, as applicable, a petition is filed with the district's board of trustees requesting remaining area members or county members, as the case may be, to be elected; and
(ii) the petition is signed by registered voters within the remaining area or county district, as the case may be, equal in number to at least 10% of the number of registered voters within the remaining area or county district, respectively, who voted in the last gubernatorial election.
(7) Subject to Section 17B-1-302, the number of members of a board of trustees of a regular district shall be:
(a) the number of included municipalities within the district plus the number of qualified municipalities partially within the district, if:
(i) the number of included municipalities and qualified municipalities is greater than nine or is an odd number that is not greater than nine; and
(ii) the district does not include a remaining area;
(b) the number of included municipalities and qualified municipalities plus one, if the number of included municipalities within the district plus the number of qualified municipalities partially within the district is an even number that is less than nine; and
(c) the number of included municipalities and qualified municipalities plus two, if:
(i) the number of included municipalities and qualified municipalities is an odd number that is less than nine; and
(ii) the district includes a remaining area.
(8)
(a) Except as provided in Subsection (8)(b), each remaining area member of the board of trustees of a regular district shall reside within the remaining area.
(b) Notwithstanding Subsection (8)(a) and subject to Subsection (8)(c), each remaining area member shall be chosen from the district at large if:
(i) the population of the remaining area is less than 5% of the total district population; or
(ii)
(A) the population of the remaining area is less than 50% of the total district population; and
(B) the majority of the members of the board of trustees are remaining area members.
(c) Application of Subsection (8)(b) may not prematurely shorten the term of any remaining area member serving the remaining area member's elected or appointed term on May 11, 2010.
(9) If the election of remaining area or county members of the board of trustees is required because of a bond election, as provided in Subsection (6)(b):
(a) a person may file a declaration of candidacy if:
(i) the person resides within:
(A) the remaining area, for a regular district; or
(B) the county district, for a county district; and
(ii) otherwise qualifies as a candidate;
(b) the board of trustees shall, if required, provide a ballot separate from the bond election ballot, containing the names of candidates and blanks in which a voter may write additional names; and
(c) the election shall otherwise be governed by Title 20A, Election Code.
(10)
(a)
(i) This Subsection (10) applies to the board of trustees members of an electric district.
(ii) Subsections (2) through (9) do not apply to an electric district.
(b) The legislative body of the county in which an electric district is located may appoint the initial board of trustees of the electric district as provided in Section 17B-1-304.
(c) After the initial board of trustees is appointed as provided in Subsection (10)(b), each member of the board of trustees of an electric district shall be elected by persons using electricity from and within the district.
(d) Each member of the board of trustees of an electric district shall be a user of electricity from the district and, if applicable, the division of the district from which elected.
(e) The board of trustees of an electric district may be elected from geographic divisions within the district.
(f) A municipality within an electric district is not entitled to automatic representation on the board of trustees.
(1) As used in this section:
(a) "Jurisdictional boundaries" means:
(i) for a qualified county, the boundaries that include:
(A) the area of the unincorporated part of the county that is included within a sewer improvement district; and
(B) the area of each nonappointing municipality that is included within the sewer improvement district; and
(ii) for a qualified municipality, the boundaries that include the area of the municipality that is included within a sewer improvement district.
(b) "Nonappointing municipality" means a municipality that:
(i) is partly included within a sewer improvement district; and
(ii) is not a qualified municipality.
(c) "Qualified county" means a county:
(i) some or all of whose unincorporated area is included within a sewer improvement district; or
(ii) which includes within its boundaries a nonappointing municipality.
(d) "Qualified county member" means a member of a board of trustees of a sewer improvement district appointed under Subsection (3)(a)(ii).
(e) "Qualified municipality" means a municipality that is partly or entirely included within a sewer improvement district that includes:
(i) all of the municipality that is capable of receiving sewage treatment service from the sewer improvement district; and
(ii) more than half of:
(A) the municipality's land area; or
(B) the assessed value of all private real property within the municipality.
(f) "Qualified municipality member" means a member of a board of trustees of a sewer improvement district appointed under Subsection (3)(a)(i).
(g) "Sewer improvement district" means an improvement district that:
(i) provides sewage collection, treatment, and disposal service; and
(ii) made an election before 1954 under Laws of Utah 1953, Chapter 29, to enable it to continue to appoint its board of trustees members as provided in this section.
(2)
(a) Notwithstanding Section 17B-2a-404, the board of trustees members of a sewer improvement district shall be appointed as provided in this section.
(b) The board of trustees of a sewer improvement district may revoke the election under Subsection (1)(d) and become subject to the provisions of Section 17B-2a-404 only by the unanimous vote of all members of the sewer improvement district's board of trustees at a time when there is no vacancy on the board.
(3)
(a) The board of trustees of each sewer improvement district shall consist of:
(i) at least one person but not more than three persons appointed by the mayor of each qualified municipality, with the consent of the legislative body of that municipality; and
(ii) at least one person but not more than three persons appointed by:
(A) the county executive, with the consent of the county legislative body, for a qualified county operating under a county executive-council form of county government; or
(B) the county legislative body, for each other qualified county.
(b) Each qualified county member appointed under Subsection (3)(a)(ii) shall represent the area within the jurisdictional boundaries of the qualified county.
(4) Notwithstanding Subsection 17B-1-302(8), the number of board of trustees members of a sewer improvement district shall be the number that results from application of Subsection (3)(a).
(5) Except as provided in this section, an appointment to the board of trustees of a sewer improvement district is governed by Section 17B-1-304.
(6) A quorum of a board of trustees of a sewer improvement district consists of members representing more than 50% of the total number of qualified county and qualified municipality votes under Subsection (7).
(7)
(a) Subject to Subsection (7)(b), each qualified county and each qualified municipality is entitled to one vote on the board of trustees of a sewer improvement district for each $10,000,000, or fractional part larger than 1/2 of that amount, of assessed valuation of private real property taxable for district purposes within the respective jurisdictional boundaries, as shown by the assessment records of the county and evidenced by a certificate of the county auditor.
(b) Notwithstanding Subsection (7)(a), each qualified county and each qualified municipality shall have at least one vote.
(8) If a qualified county or qualified municipality appoints more than one board member, all the votes to which the qualified county or qualified municipality is entitled under Subsection (7) for an item of board business shall collectively be cast by a majority of the qualified county members or qualified municipal members, respectively, present at a meeting of the board of trustees.
(1) As used in this section:
(a) "Commission" means the Public Service Commission of Utah established in Section 54-1-1.
(b) "Electric corporation" has the same meaning as "electrical corporation" defined in Section 54-2-1.
(c) "Electric improvement district" means an improvement district that provides electric service as authorized under Subsection 17B-2a-403(1)(a)(iv).
(d) "Stranded asset" means an asset that:
(i) an electric corporation owns and operates;
(ii) is designed to serve an area that is:
(A) within the electric corporation's certificated service area before the area is removed from the certificated service area by commission order as provided in Subsection (3)(b)(i)(B)(II); and
(B) within the boundary of an electric improvement district; and
(iii) will not be useful to or used by the electric corporation after removal of the area from the electric corporation's certificated service area.
(2) An electric improvement district is a public utility and subject to the jurisdiction of the commission.
(3)
(a) Except as provided in Subsection (3)(b), an electric improvement district:
(i) may include only an area where:
(A) no retail electricity has been provided to commercial, industrial, residential, and other users of electricity from an investor-owned utility within any part of an area certificated by the commission or an area adjacent to that area, municipal agency, or electric cooperative within the five years immediately preceding September 1, 1985; and
(B) electric service is provided to at least one user of electricity within the electric service district as of September 1, 1985; and
(ii) shall have filed an application for certification and received approval by the commission by September 1, 1986.
(b)
(i) An electric improvement district created after May 11, 2009 may provide electric service within the boundary of the improvement district if:
(A) no part of the boundary of the electric improvement district is closer than 40 miles to an existing service line of an electric corporation;
(B)
(I) no part of the area within the boundary of the electric improvement district is within the certificated service area of an electric corporation; or
(II) the area within the boundary of the electric improvement district that is also within the certificated service area of an electric corporation is removed from the electric corporation's certificated service area by commission order in a proceeding initiated by a petition filed by and at the discretion of the electric corporation; and
(C) before January 1, 2010, the electric improvement district receives a certificate of public convenience and necessity from the commission authorizing the electric improvement district to provide electric service to the area within the boundary of the electric improvement district.
(ii) An electric improvement district that provides electric service as provided in Subsection (3)(b)(i) shall pay an electric corporation an amount equal to the fair market value of each stranded asset of the electric corporation.
(4) Nothing in this part may be construed to give the commission jurisdiction over:
(a) an improvement district, other than an electric improvement district;
(b) a municipality; or
(c) an association of municipalities organized under Title 11, Chapter 13, Interlocal Cooperation Act.
(5) Before an electric improvement district serves any customer, the electric improvement district shall obtain a certificate of public convenience and necessity from the commission.
(6)
(a) Section 54-7-12 does not apply to rate changes of an electric improvement district if:
(i) the district is organized for the purpose of distributing electricity to customers within the boundary of the district on a not-for-profit basis;
(ii) the schedule of new rates or other change that results in new rates has been approved by the board of trustees of the district;
(iii) prior to the implementation of any rate increases, the district first holds a public meeting for all its customers to whom mailed notice of the meeting is sent at least 10 days prior to the meeting; and
(iv) the district has filed the schedule of new rates or other change with the commission.
(b) The commission shall make the district's schedule of new rates or other change available for public inspection.
(1) As used in this section:
(a) "Applicable certificate" means the same as that term is defined in Subsection 67-1a-6.5(1)(a).
(b)
(i) "Non-functioning improvement district" means an improvement district:
(A) for which the lieutenant governor issues an applicable certificate on or after July 1, 2022, but before October 15, 2023;
(B) for which the legislative body of a county elected to be the board of trustees of the district under Subsection 17B-2a-404(3)(a); and
(C)
(I) for which the responsible body has not, within 100 days after the day on which the lieutenant governor issued the applicable certificate, complied with the recording requirements described in Subsection 17B-1-215(2); or
(II) whose board of trustees has not, within 100 days after the day on which the lieutenant governor issued the applicable certificate, held a meeting as the board of trustees of the improvement district, that was noticed and held in accordance with the requirements of Title 52, Chapter 4, Open and Public Meetings Act.
(ii) "Non-functioning improvement district" does not include an improvement district that has emerged from non-functioning status under Subsection (6)(c)(ii).
(2)
(a) The board of trustees of a non-functioning improvement district may not, after the 100-day period described in Subsection (1)(b)(i)(C)(I), take any action as the board of trustees or on behalf of the non-functioning improvement district.
(b) Any action taken in violation of Subsection (2)(a) is void.
(3)
(a) An owner of land located within the boundaries of a non-functioning improvement district may file with the lieutenant governor a request to replace the board of trustees with a new board of trustees.
(b) A new board of trustees described in Subsection (3)(a) shall comprise three individuals who are:
(i) owners of land located within the boundaries of the improvement district; or
(ii) agents of owners of land located within the boundaries of the improvement district.
(4) A request described in Subsection (3) shall include:
(a) the name and mailing address of the land owner who files the request;
(b) the name of the improvement district;
(c) a copy of the applicable certificate for the improvement district;
(d) written consent to the request from each owner of land located within the boundaries of the improvement district; and
(e) the names and mailing addresses of three individuals who will serve as the board of trustees of the improvement district until a new board of trustees is organized under Subsection (9).
(5) Within 14 days after the day on which the lieutenant governor receives a request described in Subsections (3) and (4), the lieutenant governor shall:
(a) determine whether:
(i) the district is a non-functioning improvement district;
(ii) the request complies with Subsection (4); and
(b) if the lieutenant governor determines that the requirements described in Subsection (5)(a) are met, grant the request by issuing a certificate of replacement described in Subsection (6).
(6) A certificate of replacement shall:
(a) state the name of the improvement district;
(b) reference the applicable certificate for the improvement district;
(c) declare that, upon issuance of the certificate:
(i) the existing board of trustees for the improvement district is dissolved and replaced by an interim board of trustees consisting of the three individuals described in Subsection (4)(e); and
(ii) the improvement district is removed from nonfunctioning status and is, beginning at that point in time, a functioning improvement district.
(7) The interim board of trustees described in Subsection (6)(c)(i) shall record, in the recorder's office for a county in which all or a portion of the improvement district exists:
(a) the original of the certificate of replacement; and
(b) the original or a copy of:
(i) the items described in Subsections 17B-1-215(2)(a)(i)(A), (B), and (C); and
(ii) if applicable, a copy of each resolution adopted under Subsection 17B-1-213(5).
(8) Until a new board of trustees is organized under Subsection (9):
(a) the interim board of trustees has the full authority of a board of trustees of an improvement district; and
(b) a majority of the owners of land in the improvement district:
(i) may appoint an individual described in Subsection (3)(b) to fill a vacancy on the interim board of trustees; and
(ii) shall file written notification of the appointment of an individual described in Subsection (8)(b)(i) with the lieutenant governor.
(9) Within 90 days after the day on which at least 20 persons own land within the improvement district, the interim board of trustees described in Subsection (6)(c)(i) shall dissolve and be replaced by a board of trustees described in Subsections 17B-1-302(1) through (3), except that:
(a) the board of trustees shall comprise three members, appointed by the lieutenant governor, who are owners of property in the district, agents of an owner of property in the district, or residents of the district;
(b) Subsections 17B-1-302(6) through (10) and Section 17B-2a-404 do not apply to the improvement district; and
(c) a member of the legislative body of the county may not serve as a member of the board of trustees.
This part is known as the "Irrigation District Act."
(1) Each irrigation district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to irrigation districts.
(3) An irrigation district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(1) In addition to the powers conferred on an irrigation district under Section 17B-1-103, an irrigation district may:
(a) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(b) purchase stock of an irrigation, canal, or reservoir company;
(c) enter upon any land in the district to make a survey and to locate and construct a canal and any necessary lateral;
(d) convey water rights or other district property to the United States as partial or full consideration under a contract with the United States;
(e) pursuant to a contract with the United States, lease or rent water to private land, an entryman, or a municipality in the neighborhood of the district;
(f) if authorized under a contract with the United States, collect money on behalf of the United States in connection with a federal reclamation project and assume the incident duties and liabilities;
(g) acquire water from inside or outside the state;
(h) subject to Subsection (2), lease, rent, or sell water not needed by the owners of land within the district:
(i) to a municipality, corporation, association, or individual inside or outside the district;
(ii) for irrigation or any other beneficial use; and
(iii) at a price and on terms that the board considers appropriate; and
(i) repair a break in a reservoir or canal or remedy any other district disaster.
(2)
(a) The term of a lease or rental agreement under Subsection (1)(h) may not exceed five years.
(b) A vested or prescriptive right to the use of water may not attach to the land because of a lease or rental of water under Subsection (1)(h).
(3) Notwithstanding Subsection 17B-1-103(2)(g), an irrigation district may not levy a property tax.
(1)
(a) One board of trustees member shall be elected from each division established as provided in Section 17B-2a-505.
(b) Each landowner within an irrigation district may vote for one board of trustees member for the division in which the landowner's land is located.
(c) Each landowner is entitled to cast one vote for each acre-foot or fraction of an acre-foot of water allotted to the land owned by the landowner.
(2)
(a) If an irrigation district is appointed fiscal agent of the United States or is authorized by the United States to collect money on behalf of the United States with respect to a federal project:
(i) each member of the district's board of trustees shall:
(A) execute an official bond in the amount required by the Secretary of the Interior, conditioned upon the faithful discharge of the trustee's duties; and
(B) file the official bond in the office of the clerk of the county in which the district is located; and
(ii) the irrigation district shall execute an additional bond for the district's faithful discharge of its duties as fiscal or other agent of the United States.
(b) The United States or any person injured by the failure of a member of the board of trustees or of the district to perform fully, promptly, and completely a duty may sue upon the official bond.
(1) The board of trustees of each irrigation district shall divide the district into divisions, each as nearly equal in size to the others as practicable.
(2) The number of divisions shall be equal to the number of board of trustees members.
(3) At least 30 days before an election of board of trustees members, the board shall redivide the district into divisions if, since the last time the board divided the district into divisions:
(a) the district has annexed land under Chapter 1, Part 4, Annexation;
(b) land has been withdrawn from the district under Chapter 1, Part 5, Withdrawal; or
(c) the number of board of trustees members has been changed.
(1) An irrigation district may:
(a) divide the district into units and apply different use charges to the different units; and
(b) base use charges upon the amount of water or electricity the district provides, the area of the land served, or any other reasonable basis, as determined by the board of trustees.
(2) If an irrigation district imposes a use charge based on the size of the land served or the amount of water allotted to the land:
(a) the assessor of the county in which the land is located shall assist the irrigation district in ascertaining the identity of a parcel served by the district;
(b) the district shall notify the treasurer of the county in which the land is located of the charge to be imposed for each parcel of land served by the district; and
(c) the treasurer of the county in which the land is located:
(i) shall:
(A) provide each landowner a notice of use charges as part of the annual tax notice required in Section 59-2-1317 as an additional charge separate from ad valorem taxes;
(B) collect, receive, and provide an accounting for all money belonging to the district from use charges;
(C) remit to the irrigation district, by the tenth day of each month, the funds previously collected by the county as use charges on the district's behalf; and
(D) collect any unpaid use charges in accordance with Title 59, Chapter 2, Part 13, Collection of Taxes; and
(ii) may receive and account for use charges separately from taxes upon real estate for county purposes.
(3)
(a) A use charge described in Subsection (2)(b) is a political subdivision lien, as that term is defined in Section 11-60-102, on the land served, as provided in Subsection 17B-1-902(1), except that the certification described in Subsection 17B-1-902(1)(a) is not required if the district makes the notification to the county treasurer required in Subsection (2)(b).
(b) A lien described in Subsection (3)(a) shall remain in force until the use charge is paid.
(c) The county treasurer shall release a lien described in Subsection (3)(a) upon receipt of full payment of the use charge.
(4) A use charge may not be calculated on the basis of property value and does not constitute an ad valorem property tax or other tax.
Each irrigation district has a right-of-way on land that is or becomes the property of the state to locate, construct, and maintain district works.
(1) State land that is not under a contract of sale may be included in an irrigation district upon petition by the state entity responsible for the administration of the land.
(2) State land included in an irrigation district may not be:
(a) assessed by the district; or
(b) the subject of use charges imposed by the district.
(3) The entity responsible for the administration of the state land to be included in an irrigation district and the state engineer shall make a thorough examination of the benefits to accrue to the land by its inclusion in the district and by the acquisition of water rights for the land.
(4)
(a) The entity responsible for the administration of the state land to be included in an irrigation district may enter into a contract with the district, specifying the land benefitted and the amount of benefit, as determined under Subsection (3).
(b) Each contract under Subsection (4)(a) shall provide that the entity responsible for the administration of the state land shall make annual payments to the district, to be applied to the cost of constructing the district's irrigation works, until the full amount of the benefit is paid.
(c) The entity responsible for the administration of state land included in an irrigation district may, at its option, pay the full amount of the contract at any time.
Nothing in this part may be construed to prohibit the state engineer, upon petition by an irrigation district board of trustees, from increasing the maximum allotment of water for one or more tracts of land within the district if the state engineer determines that the land cannot be beneficially irrigated with the currently allotted water.
(1) Each irrigation district board of trustees shall establish equitable rules for the distribution and use of water among the owners of land in the district.
(2) The board of trustees of an irrigation district that establishes rules under Subsection (1) shall, as soon as the rules are adopted, print them in convenient form for distribution in the district.
If an irrigation district acquires the right to use water under a contract with the United States, the district shall distribute and apportion water according to the contract and federal law, rules, and regulations.
(1) An irrigation district may direct a county treasurer to remove parcels of land from the district's billing if:
(a) the land is publicly dedicated to a street, highway, or road; or
(b) the use of the land has so permanently changed as to prevent the beneficial use of water on it.
(2) Each county treasurer shall comply with the direction of an irrigation district under Subsection (1).
(1) Upon the written application of the owner of land that has no water allotment or an insufficient water allotment, an irrigation district board of trustees may temporarily permit water to be applied to the land and charge the owner for that water.
(2) Subsection (1) may not be construed to affect an irrigation district's permanent water allotments.
With the consent of the irrigation district board of trustees, a landowner in the district may assign the right to some or all of the water apportioned to the landowner's land for any one year to another bona fide landowner in the district for use in the district, if all charges for the water have been paid.
If an irrigation district's water supply is not sufficient to supply all the needs within the district, the board of trustees may distribute water as the board considers best for all concerned, subject to distribution and apportionment requirements of a district contract with the United States and applicable federal law, rule, and regulation.
Nothing in this part may be construed to authorize any person to divert the water of a river, creek, stream, canal, or reservoir to the detriment of anyone having a prior right to the water, unless compensation is previously determined and paid according to the laws of eminent domain.
This part is known as the "Metropolitan Water District Act."
(1) Each metropolitan water district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to metropolitan water districts.
(3) A metropolitan water district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
In addition to the powers conferred on a metropolitan water district under Section 17B-1-103, a metropolitan water district may:
(1) acquire or lease any real or personal property or acquire any interest in real or personal property, as provided in Subsections 17B-1-103(2)(a) and (b), whether inside or outside the district or inside or outside the state;
(2) encumber real or personal property or an interest in real or personal property that the district owns;
(3) acquire or construct works, facilities, and improvements, as provided in Subsection 17B-1-103(2)(d), whether inside or outside the district or inside or outside the state;
(4) acquire water, works, water rights, and sources of water necessary or convenient to the full exercise of the district's powers, whether the water, works, water rights, or sources of water are inside or outside the district or inside or outside the state, and encumber, transfer an interest in, or dispose of water, works, water rights, and sources of water;
(5) develop, store, and transport water;
(6) provide, sell, lease, and deliver water inside or outside the district for any lawful beneficial use;
(7) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district; and
(8) subscribe for, purchase, lease, or otherwise acquire stock in a canal company, irrigation company, water company, or water users association, for the purpose of acquiring the right to use water or water infrastructure.
(1) Members of the board of trustees of a metropolitan water district shall be:
(a) elected in accordance with:
(i) the petition or resolution that initiated the process of creating the metropolitan water district; and
(ii) Section 17B-1-306;
(b) appointed in accordance with Subsection (2); or
(c) elected under Subsection (3)(a).
(2)
(a) This Subsection (2) shall apply to an appointed board of trustees of a metropolitan water district.
(b) If a district contains the area of a single municipality:
(i) the legislative body of that municipality shall appoint each member of the board of trustees; and
(ii) one member shall be the officer with responsibility over the municipality's water supply and distribution system, if the system is municipally owned.
(c) If a district contains some or all of the retail water service area of more than one municipality:
(i) the legislative body of each municipality shall appoint the number of members for that municipality as determined under Subsection (2)(c)(ii);
(ii) subject to Subsection (2)(c)(iii), the number of members appointed by each municipality shall be determined:
(A) by agreement between the metropolitan water district and the municipalities, subject to Subsection 17B-1-302(8); or
(B) as provided in Chapter 1, Part 3, Board of Trustees; and
(iii) at least one member shall be appointed by each municipality.
(d) Each trustee shall be appointed without regard to partisan political affiliations from among citizens of the highest integrity, attainment, competence, and standing in the community.
(3)
(a) Members of the board of trustees of a metropolitan water district shall be elected in accordance with Section 17B-1-306, if, subject to Subsection (3)(b):
(i) three-fourths of all members of the board of trustees of the metropolitan water district vote in favor of changing to an elected board; and
(ii) the legislative body of each municipality that appoints a member to the board of trustees adopts a resolution approving the change to an elected board.
(b) A change to an elected board of trustees under Subsection (3)(a) may not shorten the term of any member of the board of trustees serving at the time of the change.
(4) A member of the board of trustees of a metropolitan water district shall be:
(a) a registered voter;
(b) a property taxpayer; and
(c) a resident of:
(i) the metropolitan water district; and
(ii) the retail water service area of the municipality that:
(A) elects the member; or
(B) the member is appointed to represent.
(5)
(a) Except as provided in Subsection (7), a member shall immediately forfeit the member's seat on the board of trustees if the member becomes elected or appointed to office in or becomes an employee of the municipality whose legislative body appointed the member under Subsection (2).
(b) The position of the member described in Subsection (5)(a) is vacant until filled as provided in Section 17B-1-304.
(6) Except as provided in Subsection (7), the term of office of each member of the board of trustees is as provided in Section 17B-1-303.
(7) Subsections (4), (5)(a), and (6) do not apply to a member who is a member under Subsection (2)(b)(ii).
(1) Each city whose area is within a metropolitan water district and that provides water on a retail level within the district has a preferential right to purchase from the district a portion of the water served by the district.
(2) Except as otherwise provided by contract between a metropolitan water district and the city, the percentage of the total district water supply that a city has a preferential right to purchase under Subsection (1) is the same percentage as the total amount of taxes levied by the district against property within the city's retail water service area is of the total of all taxes levied by the district against all property within the district.
(3)
(a) Nothing in this section may be construed to limit the ability of a metropolitan water district to establish preferential rights by contract with a city that has preferential rights under this section.
(b) Each agreement described in Subsection (3)(a) entered into before April 30, 2007 is ratified, validated, and confirmed.
(1)
(a) The board of trustees may fix the rates, charges, and assessments, from time to time, at which the district:
(i) sells water; or
(ii) charges for the treatment or transportation of water or for the dedication of water supplies or water treatment or conveyance capacities.
(b) The rates, charges, and assessments may be established by agreement between the district and the municipalities serviced by the district.
(2) Rates fixed under Subsection (1)(a) shall be equitable, although not necessarily equal or uniform, for like classes of service throughout the district.
(3) Each agreement described in Subsection (1)(b) entered into before April 30, 2007 that otherwise complies with the law is ratified, validated, and confirmed.
(1) A metropolitan water district may:
(a) contract with one or more corporations, public or private, for the purpose of:
(i) financing acquisitions, constructions, or operations of the district; or
(ii) carrying out any of the district's powers;
(b) in a contract under Subsection (1)(a), obligate itself severally or jointly with the other corporation or corporations; and
(c) secure, guarantee, or become surety for the payment of an indebtedness or the performance of a contract or other obligation incurred or entered into by a corporation whose shares of stock the district has acquired.
(2) A contract under Subsection (1)(a) may:
(a) provide for:
(i) contributions to be made by each contracting party;
(ii) the division and apportionment of:
(A) the expenses of acquisitions and operations; and
(B) the contractual benefits, services, and products; and
(iii) an agency to make acquisitions and carry on operations under the contract; and
(b) contain covenants and agreements as necessary or convenient to accomplish the purposes of the contract.
(1) As used in this section, "elected official" means a metropolitan water district board of trustee member who is elected to the board of trustees by metropolitan water district voters at an election held for that purpose.
(2) The board of trustees of a metropolitan water district may not collect property tax revenue in a tax year beginning on or after January 1, 2015, that would exceed the certified tax rate under Section 59-2-924 unless:
(a) the members of the board of trustees are all elected officials; or
(b) the proposed tax levy has previously been approved by:
(i) a majority of the metropolitan water district voters who vote in an election held for that purpose on a date specified in Section 20A-1-204; or
(ii) the legislative body of each municipality that appoints a member to the board of trustees under Section 17B-2a-604.
This part is known as the "Mosquito Abatement District Act."
(1) Each mosquito abatement district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to mosquito abatement districts.
(3) A mosquito abatement district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
In addition to the powers conferred on a mosquito abatement district under Section 17B-1-103, a mosquito abatement district may:
(1) take all necessary and proper steps for the extermination of mosquitos, flies, crickets, grasshoppers, and other insects:
(a) within the district; or
(b) outside the district, if lands inside the district are benefitted;
(2) abate as nuisances all stagnant pools of water and other breeding places for mosquitos, flies, crickets, grasshoppers, or other insects anywhere inside or outside the state from which mosquitos migrate into the district;
(3) enter upon territory referred to in Subsections (1) and (2) in order to inspect and examine the territory and to remove from the territory, without notice, stagnant water or other breeding places for mosquitos, flies, crickets, grasshoppers, or other insects;
(4) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(5) make a contract to indemnify or compensate an owner of land or other property for injury or damage that the exercise of district powers necessarily causes or arising out of the use, taking, or damage of property for a district purpose; and
(6) in addition to the accumulated fund balance allowed under Section 17B-1-612, establish a reserve fund, not to exceed the greater of 25% of the district's annual operating budget or $50,000, to pay for extraordinary abatement measures, including a vector-borne public health emergency.
(1)
(a) Notwithstanding Subsection 17B-1-302(8):
(i) the board of trustees of a mosquito abatement district consists of no less than five members appointed in accordance with this section; and
(ii) subject to Subsection (1)(b), the legislative body of each municipality that is entirely or partly included within a mosquito abatement district shall appoint one member to the board of trustees.
(b) If 75% or more of the area of a mosquito abatement district is within the boundaries of a single municipality:
(i) the board of trustees consists of five members; and
(ii) the legislative body of that municipality shall appoint all five members of the board.
(2) Except as provided in Subsection (1), the legislative body of each county in which a mosquito abatement district is located shall appoint at least one member but no more than three members to the district's board of trustees as follows:
(a) the county may appoint one member if:
(i)
(A) some or all of the county's unincorporated area is included within the boundaries of the mosquito abatement district; and
(B) Subsection (2)(b) does not apply; or
(ii)
(A) the number of municipalities that are entirely or partly included within the district is an even number less than nine; and
(B) Subsection (1)(b) does not apply; or
(b) subject to Subsection (3), the county may appoint up to and including three members if:
(i) more than 25% of the population of the mosquito abatement district resides outside the boundaries of all municipalities that may appoint members to the board of trustees; and
(ii) a municipality appoints at least four members of the board of trustees.
(3) A county may not appoint a member in accordance with Subsection (2)(b) who resides within a municipality that may appoint a member to the board of trustees.
(4) If the number of board members appointed by application of Subsections (1) and (2)(a) is an even number less than nine, the legislative body of the county in which the district is located shall appoint an additional member.
(5) Notwithstanding Subsection (2), and subject to Subsection (1)(b):
(a) if the mosquito abatement district is located entirely within one county and, in accordance with this section, only one municipality may appoint a member of the board of trustees, the county legislative body shall appoint at least four members to the district's board of trustees; and
(b) if the mosquito abatement district is located entirely within one county and no municipality may appoint a member of the board of trustees, the county legislative body shall appoint all of the members of the board.
(6) Each board of trustees member is appointed in accordance with Section 17B-1-304.
(7) The applicable appointing authority shall fill each vacancy on a mosquito abatement district board of trustees in accordance with Section 17B-1-304, or if the vacancy is a midterm vacancy, in accordance with Section 20A-1-512.
(1) If a mosquito abatement district board of trustees determines that the funds required during the next ensuing fiscal year will exceed the maximum amount that the district is authorized to levy under Subsection 17B-1-103(2)(g), the board of trustees may call an election on a date specified in Section 20A-1-204 and submit to district voters the question of whether the district should be authorized to impose an additional tax to raise the necessary additional funds.
(2) The board shall provide notice of the election for the district, as a class A notice under Section 63G-30-102, for at least four weeks before the day of the election.
(3) No particular form of ballot is required, and no informalities in conducting the election may invalidate the election, if it is otherwise fairly conducted.
(4) At the election each ballot shall contain the words, "Shall the district be authorized to impose an additional tax to raise the additional sum of $____?"
(5) The board of trustees shall canvass the votes cast at the election, and, if a majority of the votes cast are in favor of the imposition of the tax, the district is authorized to impose an additional levy to raise the additional amount of money required.
(1) As used in this section:
(a) "Rural real property" means the same as that term is defined in Section 17B-2a-1107.
(b) "Social media platform" means a form of electronic communication that is available for public access.
(c) "Ultra-low volume treatment" or "ULV treatment" means a method of pesticide application that provides the minimum volume of liquid insecticide formulation per unit area for the efficient control of mosquitos.
(2)
(a) Beginning January 1, 2021, except as provided in Subsection (2)(b), a mosquito abatement district shall provide public notice as soon as practicable before commencing a ULV treatment in a county of the first or second class.
(b) Subsection (2)(a) does not apply to a ULV treatment on rural real property.
(c) A mosquito abatement district may provide public notice under Subsection (2)(a) before commencing a ULV treatment in a county of the third through sixth class.
(3) The public notice required under Subsection (2)(a) shall include the ULV treatment:
(a) date;
(b) time; and
(c) place.
(4)
(a) A mosquito abatement district shall establish and maintain a:
(i) website; or
(ii) social media platform.
(b) A mosquito abatement district satisfies the public notice requirement under Subsection (2)(a) by posting the public notice on the mosquito abatement district's website or social media platform.
This part is known as the "Public Transit District Act."
As used in this part:
(1) "Affordable housing" means housing occupied or reserved for occupancy by households that meet certain gross household income requirements based on the area median income for households of the same size.
(a) "Affordable housing" may include housing occupied or reserved for occupancy by households that meet specific area median income targets or ranges of area median income targets.
(b) "Affordable housing" does not include housing occupied or reserved for occupancy by households with gross household incomes that are more than 60% of the area median income for households of the same size.
(2) "Appointing entity" means the person, county, unincorporated area of a county, or municipality appointing a member to a public transit district board of trustees or transit commission.
(3)
(a) "Chief executive officer" means a person appointed by the board of trustees of a small public transit district to serve as chief executive officer.
(b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and responsibilities assigned to the general manager but prescribed by the board of trustees to be fulfilled by the chief executive officer.
(4) "Confidential employee" means a person who, in the regular course of the person's duties:
(a) assists in and acts in a confidential capacity in relation to other persons who formulate, determine, and effectuate management policies regarding labor relations; or
(b) has authorized access to information relating to effectuating or reviewing the employer's collective bargaining policies.
(5) "Council of governments" means a decision-making body in each county composed of membership including the county governing body and the mayors of each municipality in the county.
(6) "Department" means the Department of Transportation created in Section 72-1-201.
(7) "Executive director" means a person appointed by the governor as described in Section 17B-2a-811.1 to serve as executive director of a large public transit district.
(8) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
(9) "Fixed guideway capital development" means the same as that term is defined in Section 72-1-102.
(10)
(a) "General manager" means a person appointed by the board of trustees of a small public transit district to serve as general manager.
(b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public transit district.
(11) "Large public transit district" means a public transit district that provides public transit to an area that includes:
(a) more than 65% of the population of the state based on:
(i) the estimate of the Utah Population Committee created in Section 63C-20-103; or
(ii) if the Utah Population Committee estimate is not available for each county, municipality, and unincorporated area that comprise the district, the most recent official census or census estimate of the United States Bureau of the Census; and
(b) two or more counties.
(12)
(a) "Locally elected public official" means a person who holds an elected position with a county or municipality.
(b) "Locally elected public official" does not include a person who holds an elected position if the elected position is not with a county or municipality.
(13) "Managerial employee" means a person who is:
(a) engaged in executive and management functions; and
(b) charged with the responsibility of directing, overseeing, or implementing the effectuation of management policies and practices.
(14) "Metropolitan planning organization" means the same as that term is defined in Section 72-1-208.5.
(15) "Multicounty district" means a public transit district located in more than one county.
(16) "Operator" means a public entity or other person engaged in the transportation of passengers for hire.
(17)
(a) "Public transit" means regular, continuing, shared-ride, surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income.
(b) "Public transit" does not include transportation services provided by:
(i) chartered bus;
(ii) sightseeing bus;
(iii) taxi;
(iv) school bus service;
(v) courtesy shuttle service for patrons of one or more specific establishments; or
(vi) intra-terminal or intra-facility shuttle services.
(18) "Public transit district" means a special district that provides public transit services.
(19) "Public transit innovation grant" means the same as that term is defined in Section 72-2-401.
(20) "Small public transit district" means any public transit district that is not a large public transit district.
(21) "Station area plan" means a plan developed and adopted by a municipality in accordance with Section 63N-23-104.
(22)
(a) "Supervisor" means a person who has authority, in the interest of the employer, to:
(i) hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees; or
(ii) adjust another employee's grievance or recommend action to adjust another employee's grievance.
(b) "Supervisor" does not include a person whose exercise of the authority described in Subsection (22)(a):
(i) is of a merely routine or clerical nature; and
(ii) does not require the person to use independent judgment.
(23) "Transit facility" means a transit vehicle, transit station, depot, passenger loading or unloading zone, parking lot, or other facility:
(a) leased by or operated by or on behalf of a public transit district; and
(b) related to the public transit services provided by the district, including:
(i) railway or other right-of-way;
(ii) railway line; and
(iii) a reasonable area immediately adjacent to a designated stop on a route traveled by a transit vehicle.
(24) "Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle operated as public transportation by a public transit district.
(25) "Transit-oriented development" means a mixed use residential or commercial area that is designed to maximize access to public transit and includes the development of land owned by a large public transit district.
(26) "Transit-supportive development" means a mixed use residential or commercial area that is designed to maximize access to public transit and does not include the development of land owned by a large public transit district.
(1)
(a) Each public transit district is governed by and has the powers stated in:
(i) this part; and
(ii) except as provided in Subsection (1)(b), Chapter 1, Provisions Applicable to All Special Districts.
(b)
(i) Except for Sections 17B-1-301, 17B-1-311, and 17B-1-313, the following provisions do not apply to public transit districts:
(A) Chapter 1, Part 3, Board of Trustees; and
(B) Section 17B-2a-905.
(ii) A public transit district is not subject to Chapter 1, Part 6, Fiscal Procedures for Special Districts.
(2) This part applies only to public transit districts.
(3) A public transit district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(5) The provisions of Subsection 53-3-202(3)(b) do not apply to a motor vehicle owned in whole or in part by a public transit district.
(1) In addition to the powers conferred on a public transit district under Section 17B-1-103, a public transit district may:
(a) provide a public transit system for the transportation of passengers and their incidental baggage;
(b) notwithstanding Subsection 17B-1-103(2)(g) and subject to Section 17B-2a-817, levy and collect property taxes only for the purpose of paying:
(i) principal and interest of bonded indebtedness of the public transit district; or
(ii) a final judgment against the public transit district if:
(A) the amount of the judgment exceeds the amount of any collectable insurance or indemnity policy; and
(B) the district is required by a final court order to levy a tax to pay the judgment;
(c) insure against:
(i) loss of revenues from damage to or destruction of some or all of a public transit system from any cause;
(ii) public liability;
(iii) property damage; or
(iv) any other type of event, act, or omission;
(d) subject to Section 72-1-203 pertaining to fixed guideway capital development within a large public transit district, acquire, contract for, lease, construct, own, operate, control, or use:
(i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal, parking lot, or any other facility necessary or convenient for public transit service; or
(ii) any structure necessary for access by persons and vehicles;
(e)
(i) hire, lease, or contract for the supplying or management of a facility, operation, equipment, service, employee, or management staff of an operator; and
(ii) provide for a sublease or subcontract by the operator upon terms that are in the public interest;
(f) operate feeder bus lines and other feeder or ridesharing services as necessary;
(g) accept a grant, contribution, or loan, directly through the sale of securities or equipment trust certificates or otherwise, from the United States, or from a department, instrumentality, or agency of the United States;
(h) study and plan transit facilities in accordance with any legislation passed by Congress;
(i) cooperate with and enter into an agreement with the state or an agency of the state or otherwise contract to finance to establish transit facilities and equipment or to study or plan transit facilities;
(j) subject to Subsection 17B-2a-811.1(8), issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(k) from bond proceeds or any other available funds, reimburse the state or an agency of the state for an advance or contribution from the state or state agency;
(l) do anything necessary to avail itself of any aid, assistance, or cooperation available under federal law, including complying with labor standards and making arrangements for employees required by the United States or a department, instrumentality, or agency of the United States;
(m) sell or lease property;
(n) except as provided in Subsection (2)(b), assist in or operate transit-oriented or transit-supportive developments;
(o) subject to Subsections (2) and (3), establish, finance, participate as a limited partner or member in a development with limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or operate transit facilities, equipment, and, in accordance with Subsection (3), transit-oriented developments or transit-supportive developments; and
(p) subject to the restrictions and requirements in Subsections (2) and (3), assist in a transit-oriented development or a transit-supportive development in connection with project area development as defined in Section 17C-1-102 by:
(i) investing in a project as a limited partner or a member, with limited liabilities; or
(ii) subordinating an ownership interest in real property owned by the public transit district.
(2)
(a) A public transit district may only assist in the development of areas under Subsection (1)(p) that have been approved by the board of trustees or transit commission, and in the manners described in Subsection (1)(p).
(b) A public transit district may not invest in a transit-oriented development or transit-supportive development as a limited partner or other limited liability entity under the provisions of Subsection (1)(p)(i), unless the partners, developer, or other investor in the entity, makes an equity contribution equal to no less than 25% of the appraised value of the property to be contributed by the public transit district.
(c)
(i) For transit-oriented development projects, a public transit district shall adopt transit-oriented development policies and guidelines that include provisions on affordable housing.
(ii) For transit-supportive development projects, a public transit district shall work with the metropolitan planning organization and city and county governments where the project is located to collaboratively seek to create joint plans for the areas within one-half mile of transit stations, including plans for affordable housing.
(d) A current board member of a public transit district or a transit commissioner to which the board member or transit commissioner is appointed may not have any interest in the transactions engaged in by the public transit district in accordance with Subsection (1)(p)(i) or (ii), except as may be required by the board member's or transit commissioner's fiduciary duty as a board member or transit commissioner.
(3) For any transit-oriented development or transit-supportive development authorized in this section, the public transit district shall:
(a) perform a cost-benefit analysis of the monetary investment and expenditures of the development, including effect on:
(i) service and ridership;
(ii) regional plans made by the metropolitan planning agency;
(iii) the local economy;
(iv) the environment and air quality;
(v) affordable housing; and
(vi) integration with other modes of transportation;
(b) provide evidence to the public of a quantifiable positive return on investment, including improvements to public transit service; and
(c) coordinate with the Department of Transportation in accordance with Section 72-1-203 pertaining to fixed guideway capital development and associated parking facilities within a station area plan for a transit oriented development within a large public transit district.
(4) For any fixed guideway capital development project with oversight by the Department of Transportation as described in Section 72-1-203, a large public transit district shall coordinate with the Department of Transportation in all aspects of the project, including planning, project development, outreach, programming, environmental studies and impact statements, impacts on public transit operations, and construction.
(5) A public transit district may participate in a transit-oriented development only if:
(a) for a transit-oriented development involving a municipality:
(i) the relevant municipality has developed and adopted a station area plan; and
(ii) the municipality is in compliance with Sections 10-21-201 and 10-21-202 regarding the inclusion of moderate income housing in the general plan and the required reporting requirements; or
(b) for a transit-oriented development involving property in an unincorporated area of a county, the county is in compliance with Sections 17-79-403 and 17-80-202 regarding inclusion of moderate income housing in the general plan and required reporting requirements.
(6) A public transit district may be funded from any combination of federal, state, local, or private funds.
(7) A public transit district may not acquire property by eminent domain.
(1) A public transit district may not exercise control over a transit facility or public transit service or system owned or operated inside or outside the district by a governmental entity unless, upon mutually agreeable terms, the governmental entity consents.
(2)
(a) A public transit district may not establish, directly or indirectly, a public transit service or system, or acquire a facility necessary or incidental to a public transit service or system, in a manner or form that diverts, lessens, or competes for the patronage or revenue of a preexisting system of a publicly or privately owned public carrier furnishing like service, unless the district obtains the consent of the publicly or privately owned carrier.
(b) A public transit district's maintenance and operation of an existing system that the district acquires from a publicly or privately owned public carrier may not be considered to be the establishment of a public transit service or system under this Subsection (2).
(c) A public transit district's introduction, maintenance, or operation of a system may not be considered to be the establishment of a public transit service or system under this Subsection (2) if the service or system is introduced, maintained, or operated by the public transit district:
(i) as part of a program of projects approved by the Federal Transit Administration;
(ii) in cooperation with the state or a political subdivision of the state, pursuant to an interlocal agreement; or
(iii) in accordance with Title 72, Chapter 12, Travel Reduction Act.
(1) The state or an agency of the state may:
(a) make public contributions to a public transit district as in the judgment of the Legislature or governing board of the agency are necessary or proper;
(b) authorize a public transit district to perform, or aid and assist a public transit district in performing, an activity that the state or agency is authorized by law to perform; or
(c) perform any action that the state agency is authorized by law to perform for the benefit of a public transit district.
(2)
(a) A county or municipality involved in the establishment and operation of a public transit district may provide funds necessary for the operation and maintenance of the district.
(b) A county's use of property tax funds to establish and operate a public transit district within any part of the county is a county purpose under Section 17-63-702.
(3)
(a) To allocate resources and funds for development and operation of a public transit district, whether received under this section or from other sources, and subject to Section 72-1-203 pertaining to fixed guideway capital development within a large public transit district, a public transit district may:
(i) give priority to public transit services that feed rail fixed guideway services; and
(ii) allocate funds according to population distribution within the public transit district.
(b) The comptroller of a public transit district shall report the criteria and data supporting the allocation of resources and funds in the statement required in Section 17B-2a-812.
(1)
(a) For a small public transit district, the board of trustees shall consist of members appointed by the legislative bodies of each municipality, county, or unincorporated area within any county.
(b) The legislative bodies of each municipality, county, or unincorporated area within any county shall establish a governing ordinance for the small public transit district, which shall include:
(i) the method for apportioning representation on the board of trustees among the relevant municipalities, counties, or unincorporated areas of any counties within the boundary of the small public transit district;
(ii) subject to Subsection (1)(c), the number of members of the board of trustees;
(iii) the method for reapportionment of representation on the board of trustees based on changes in the boundary of the small public transit district; and
(iv) other aspects of appointment and apportionment of membership of the board of trustees as necessary.
(c) A board of trustees of a small public transit district may have membership of not less than five and not more than nine members.
(d) The board of trustees of a public transit district under this section may include a member that is a commissioner on the Transportation Commission created in Section 72-1-301 and appointed as provided in Subsection (8), who shall serve as a nonvoting, ex officio member.
(2) Upon the completion of an annexation to a public transit district under Chapter 1, Part 4, Annexation, membership on the board of trustees of the small public transit district shall reapportion membership as described in the governing ordinance enacted pursuant to Subsection (1)(b).
(3)
(a) Vacancies for members shall be filled by the official appointing the member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy within 90 days.
(b) If the appointing official under Subsection (1) does not fill the vacancy within 90 days, the board of trustees of the small public transit district shall fill the vacancy.
(4)
(a) Each voting member may cast one vote on all questions, orders, resolutions, and ordinances coming before the board of trustees.
(b) A majority of all voting members of the board of trustees are a quorum for the transaction of business.
(c) The affirmative vote of a majority of all voting members present at any meeting at which a quorum was initially present shall be necessary and, except as otherwise provided, is sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
(5) Each public transit district shall pay to each member per diem and travel expenses for meetings actually attended, in accordance with Section 11-55-103.
(6)
(a) Members of the initial board of trustees shall convene at the time and place fixed by the chief executive officer of the entity initiating the proceedings.
(b) The board of trustees shall elect from its voting membership a chair, vice chair, and secretary.
(c) The members elected under Subsection (6)(b) shall serve for a period of two years or until their successors shall be elected and qualified.
(d) A locally elected public official is not eligible to serve as the chair, vice chair, or secretary of the board of trustees.
(7)
(a) Except as otherwise authorized under Subsection (7)(b), at the time of a member's appointment or during a member's tenure in office, a member may not hold any employment, except as an independent contractor or locally elected public official, with a county or municipality within the district.
(b) A member appointed by a county or municipality may hold employment with the county or municipality if the employment is disclosed in writing and the public transit district board of trustees ratifies the appointment.
(8) The Transportation Commission created in Section 72-1-301 may appoint a commissioner of the Transportation Commission to serve on the board of trustees of a small public transit district as a nonvoting, ex officio member.
(9)
(a)
(i) Each member of the board of trustees of a public transit district is subject to recall at any time by the legislative body of the county or municipality from which the member is appointed.
(ii) Each recall of a board of trustees member shall be made in the same manner as the original appointment.
(iii) The legislative body recalling a board of trustees member shall provide written notice to the member being recalled.
(b) Upon providing written notice to the board of trustees, a member of the board may resign from the board of trustees.
(c) If a board member is recalled or resigns under this Subsection (9), the vacancy shall be filled as provided in Subsection (3).
(1)
(a) A large public transit district shall have a transit commission.
(b) For a large public transit district created as provided in this part on or before January 1, 2026, the structure and membership of the board of trustees may remain and serve as constituted as of January 1, 2026, until June 30, 2026.
(c) Beginning on July 1, 2026, a large public transit district shall be governed by a transit commission as provided in this section.
(d) A large public transit district shall provide severance pay and benefits through December 31, 2026, to each member of the board of trustees in place on June 30, 2026.
(2)
(a) A large public transit district shall be governed by a transit commission consisting of members appointed as follows:
(i) two members appointed by the speaker of the House of Representatives, in consultation with public transit stakeholders from within the public transit district;
(ii) two members appointed by the president of the Senate, in consultation with public transit stakeholders from within the public transit district; and
(iii) three members appointed by the governor from nominations described in Subsection (2)(b).
(b)
(i)
(A) The councils of governments of Davis County and Weber County shall each nominate to the governor one or more candidates for transit commissioner.
(B) The Box Elder County legislative body and the chief executives of each municipality within the boundary of the large public transit district in Box Elder County, may jointly nominate one or more candidates for transit commissioner.
(C) The governor shall appoint, with advice and consent of the Senate, one candidate nominated as described in Subsection (2)(b)(i)(A) or (2)(b)(i)(B).
(ii)
(A) The council of governments of Utah County shall nominate to the governor one or more candidates for transit commissioner.
(B) The Tooele County legislative body and the chief executives of each municipality within the boundary of the large public transit district in Tooele County, may jointly nominate one or more candidates for transit commissioner.
(C) The governor shall appoint, with advice and consent of the Senate, one candidate nominated as described in Subsection (2)(b)(ii)(A) or (2)(b)(ii)(B).
(iii)
(A) The council of governments of Salt Lake County shall nominate to the governor one or more candidates for transit commissioner.
(B) The governor shall appoint, with advice and consent of the Senate, one candidate nominated as described in Subsection (2)(b)(iii)(A).
(iv) The nominations described in Subsections (2)(b)(i) through (iii) shall be made to the governor:
(A) for the initial terms beginning on July 1, 2026, on or before May 1, 2026; and
(B) for nominations after the initial nominations described in Subsection (2)(b)(iv)(A), within 30 days after the day on which notice is given by the executive director to the nominating entity of an upcoming vacancy on the transit commission.
(v)
(A) If a nominating body described in this Subsection (2)(b) fails to nominate an individual on or before the deadlines described in Subsection (2)(b)(iv), the governor may, with advice and consent of the Senate, appoint the transit commissioner.
(B) If the governor does not wish to appoint one or more candidates nominated as described in this Subsection (2)(b), the governor may request additional nominations.
(c) Beginning on July 1, 2026, and until June 30, 2027, the executive director of the department shall serve as a nonvoting, ex officio member of the transit commission.
(3)
(a) Except as provided in Subsections (3)(b) and (3)(c), each transit commissioner of a large public transit district shall serve for a term of four years.
(b) Each transit commissioner serves at the pleasure of the individual in the office that appointed the transit commissioner.
(c)
(i) A transit commissioner may serve an unlimited number of terms.
(ii) For members of the transit commission whose appointments begin on July 1, 2026, the transit commissioners shall serve an initial term as follows:
(A) the speaker of the House of Representatives shall designate one appointee as serving an initial term for three years, and one appointee as serving an initial term of four years;
(B) the president of the Senate shall designate one appointee as serving an initial term for three years, and one appointee as serving an initial term of four years; and
(C) the governor shall designate two appointees as serving an initial term for two years, and one appointee as serving an initial term of five years.
(d) Each transit commissioner:
(i) serves and represents the whole of the large public transit district; and
(ii) does not represent a specific geographic portion of the large public transit district.
(4)
(a) If a vacancy occurs, the nomination and appointment procedures to replace the individual shall occur in the same manner described in Subsection (2) as for the transit commissioner creating the vacancy.
(b) If a vacancy occurs on the transit commission of a large public transit district and the vacated seat is a transit commissioner nominated as described in Subsection (2)(b), the nominating body described in Subsection (2)(b) relevant for the vacancy shall nominate individuals for appointment by the governor as described in this section within 60 days after the date on which the vacancy occurs.
(c) If the respective nominating body described in Subsection (2)(b) does not nominate to fill the vacancy within 60 days, the governor shall, with the advice and consent of the Senate, appoint an individual to fill the vacancy.
(d) A replacement transit commissioner shall serve for the remainder of the unexpired term, but may serve an unlimited number of terms as provided in Subsection (3)(c)(i).
(5)
(a) The nominating and appointing individuals described in this section shall ensure that each individual nominated or appointed to the transit commission of a large public transit district has extensive experience in one or more of the following areas:
(i) public transit and mobility;
(ii) public finance and budgeting;
(iii) community development and engagement;
(iv) law, public policy, or public administration; or
(v) business management.
(b) An individual who holds an elected office is ineligible for nomination, appointment, or service on the transit commission.
(6) A member may not receive compensation or benefits for the member's service, but may receive per diem and local travel expenses in accordance with:
(a) Section 63A-3-106;
(b) Section 63A-3-107; and
(c) rules made by the Division of Finance in accordance with Sections 63A-3-106 and 63A-3-107.
(7) Any four members of the transit commission constitute a quorum.
(8)
(a) The governor shall designate one transit commissioner as chair.
(b) The transit commission may select one member as vice chair to act in the chair's absence.
(9) Each transit commissioner shall qualify by taking the constitutional oath of office.
(10) Each transit commissioner is subject to the conflict of interest provisions described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
(11) For the purposes of Section 63J-1-504, the transit commission is not considered an agency.
(1) The powers and duties of a board of trustees of a small public transit district stated in this section are in addition to the powers and duties stated in Section 17B-1-301.
(2) The board of trustees of each small public transit district shall:
(a) appoint and fix the salary of a general manager, a chief executive officer, or both, as provided in Section 17B-2a-811;
(b) determine the transit facilities that the district should acquire or construct;
(c) supervise and regulate each transit facility that the district owns and operates, including:
(i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals, and charges; and
(ii) making and enforcing rules, regulations, contracts, practices, and schedules for or in connection with a transit facility that the district owns or controls;
(d) control the investment of all funds assigned to the district for investment, including funds:
(i) held as part of a district's retirement system; and
(ii) invested in accordance with the participating employees' designation or direction pursuant to an employee deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code;
(e) invest all funds according to the procedures and requirements of Title 51, Chapter 7, State Money Management Act;
(f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's services from the interest earnings of the investment fund for which the custodian is appointed;
(g)
(i) cause an annual audit of all district books and accounts to be made by an independent certified public accountant;
(ii) as soon as practicable after the close of each fiscal year, submit to the chief administrative officer and legislative body of each county and municipality with territory within the district a financial report showing:
(A) the result of district operations during the preceding fiscal year; and
(B) the district's financial status on the final day of the fiscal year; and
(iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon request in a quantity that the board considers appropriate;
(h) report at least annually to the Transportation Commission created in Section 72-1-301 the district's short-term and strategic long-range transit plans, including the transit portions of applicable regional transportation plans adopted by a metropolitan planning organization established under 23 U.S.C. Sec. 134;
(i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits that the board of trustees determines to be the most critical to the success of the organization;
(j) hear audit reports for audits conducted in accordance with Subsection (2)(i); and
(k) provide to the Transportation and Infrastructure Appropriations Subcommittee an annual financial report in conformity with generally accepted accounting principles.
(3) A board of trustees of a public transit district may:
(a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that are:
(i) not repugnant to the United States Constitution, the Utah Constitution, or the provisions of this part; and
(ii) necessary for:
(A) the government and management of the affairs of the district;
(B) the execution of district powers; and
(C) carrying into effect the provisions of this part;
(b) provide by resolution, under terms and conditions the board considers fit, for the payment of demands against the district without prior specific approval by the board, if the payment is:
(i) for a purpose for which the expenditure has been previously approved by the board;
(ii) in an amount no greater than the amount authorized; and
(iii) approved by the general manager or other officer or deputy as the board prescribes;
(c)
(i) hold public hearings and subpoena witnesses; and
(ii) appoint district officers to conduct a hearing and require the officers to make findings and conclusions and report them to the board; and
(d) appoint a custodian for the funds and securities under its control, subject to Subsection (2)(f).
(4) A member of the board of trustees of a public transit district or a hearing officer designated by the board may administer oaths and affirmations in a district investigation or proceeding.
(5)
(a) The vote of the board of trustees on each ordinance shall be by roll call vote with each affirmative and negative vote recorded.
(b)
(i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or order by voice vote.
(ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if a member of the board so demands.
(c)
(i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public transit district may not adopt an ordinance unless it is:
(A) introduced at least a day before the board of trustees adopts it; or
(B) mailed by registered mail, postage prepaid, to each member of the board of trustees at least five days before the day upon which the ordinance is presented for adoption.
(ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous vote of all board members present at a meeting at which at least 3/4 of all board members are present.
(d) Each ordinance adopted by a public transit district's board of trustees shall take effect upon adoption, unless the ordinance provides otherwise.
(1) The powers and duties of the transit commission of a large public transit district stated in this section replace any powers and duties stated in Section 17B-1-301.
(2)
(a) The transit commission of each large public transit district shall, at least monthly, hold public meetings and receive public comment.
(b) The transit commission may conduct public meetings described in Subsection (2)(a) at various locations throughout the public transit district.
(3) The transit commission shall perform the following duties, which shall occur in a public meeting described in Subsection (2):
(a) approve an annual budget, which shall emphasize fiscal responsibility, increasing ridership, and maintaining a state of good repair;
(b) approve any interlocal agreement with a local jurisdiction;
(c) approve a strategic long-range transit plan for development and operations proposed by the executive director in accordance with Subsection 17B-2a-811.1(5)(b);
(d) vote on adoption of transit commission ordinances and bylaws; and
(e) review and recommend a proposal from the executive director for the issuance of a bond.
(4) The transit commission shall:
(a) in consultation with local stakeholders, work to establish and enhance transit infrastructure to provide cohesive and efficient public transit services throughout the service area of the large public transit district;
(b) cause an annual audit of all public transit district books and accounts to be made by an independent certified public accountant;
(c)
(i) as soon as practicable after the close of each fiscal year, submit to each county, municipality, council of governments, and metropolitan planning organization within the public transit district, and make available upon request, a financial report showing:
(A) the result of the transit district operations during the preceding fiscal year;
(B) an accounting of the expenditures of all local sales and use tax revenues generated under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
(C) the transit district's financial status on the final day of the fiscal year; and
(D) the transit district's progress and efforts to improve the transit district's fiscal outlook relative to the previous fiscal year; and
(ii) supply copies of the report under Subsection (4)(c)(i) to the general public upon request;
(d)
(i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits that the transit commission determines to be the most critical to the success of the organization;
(ii) if requested by the executive director, direct the internal auditor appointed under Section 17B-2a-810 to conduct an audit of an internal issue of the large public transit district; and
(iii) hear audit reports for audits conducted in accordance with this Subsection (4)(d);
(e) at least annually, engage with the safety and security team of the large public transit district to ensure coordination with local municipalities and counties;
(f) at least annually, engage with the relevant metropolitan planning organizations and other stakeholders;
(g) at least annually, for the commissioners nominated by the councils of government, engage with the councils of government about community and local needs, investments, and services;
(h) engage with elected officials or staff from municipalities and counties within the large public transit district; and
(i) consult with local officials and stakeholders:
(i) to review routes, service changes, and service improvements; and
(ii) regarding the approvals described in Subsections (3)(a) through (c).
(5) A transit commission of a large public transit district may:
(a) approve and pass ordinances, resolutions, and orders that are:
(i) not repugnant to the United States Constitution, the Utah Constitution, or the provisions of this part; and
(ii) necessary for:
(A) the governance of the affairs of the district; and
(B) carrying into effect the provisions of this part;
(b) provide by resolution, under terms and conditions the transit commission considers fit, for the payment of demands against the district without prior specific approval by the transit commission, if the payment is:
(i) for a purpose for which the expenditure has been previously approved by the transit commission;
(ii) in an amount no greater than the amount authorized; and
(iii) approved by the executive director or other officer or deputy as the transit commission prescribes; or
(c) appoint a custodian for the funds and securities under large public transit district control.
(6) A transit commissioner or a hearing officer designated by the transit commission may administer oaths and affirmations in a public transit district investigation or proceeding.
(7)
(a) The vote of the transit commission on each ordinance or resolution shall be by roll call vote with each affirmative and negative vote recorded.
(b) The transit commission may not adopt an ordinance unless the ordinance is introduced at least 48 hours before the transit commission adopts the ordinance.
(c) Each ordinance adopted by the transit commission shall take effect upon adoption, unless the ordinance provides otherwise.
(1) The board of trustees or transit commission of each public transit district shall submit to each constituent entity, as defined in Section 17B-1-701:
(a) a copy of the board or transit commission agenda and a notice of the location and time of the board or transit commission meeting within the same time frame provided to members of the board before the meeting; and
(b) a copy of the minutes of board meetings within five working days following approval of the minutes.
(2) The board may submit notices, agendas, and minutes by electronic mail if agreed to by the constituent entity as defined under Section 17B-1-701.
(1)
(a) The officers of a public transit district shall consist of:
(i) the members of the board of trustees or transit commission;
(ii) for a small public transit district, a chair and vice chair, appointed by the board of trustees, subject to Subsection (1)(c);
(iii) a secretary, appointed by the board of trustees or transit commission;
(iv)
(A) for a small public transit district, a general manager, appointed by the board of trustees as provided in Section 17B-2a-811, whose duties may be allocated by the board of trustees, at the board of trustees' discretion, to a chief executive officer, or both; or
(B) for a large public transit district, an executive director appointed by the governor as provided in Section 17B-2a-811.1;
(v) for a small public transit district, a chief executive officer appointed by the board of trustees, as provided in Section 17B-2a-811;
(vi) for a small public transit district, a general counsel, appointed by the board of trustees, subject to Subsection (1)(d);
(vii) a treasurer, appointed as provided in Section 17B-1-633, except that the treasurer of a large public transit district shall be appointed by the executive director;
(viii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(e), except that the comptroller of a large public transit district shall be appointed by the executive director;
(ix) for a large public transit district, an internal auditor, appointed by the executive director, subject to Subsection (1)(f); and
(x) other officers, assistants, and deputies that the board of trustees or transit commission considers necessary.
(b) The board of trustees of a small public transit district may, at its discretion, appoint a president, who shall also be considered an officer of a public transit district.
(c) The district chair and vice chair of a small public transit district shall be members of the board of trustees.
(d) The person appointed as general counsel for a small public transit district shall:
(i) be admitted to practice law in the state; and
(ii) have been actively engaged in the practice of law for at least seven years next preceding the appointment.
(e) The person appointed as comptroller shall have been actively engaged in the practice of accounting for at least seven years next preceding the appointment.
(f) The person appointed as internal auditor shall be a licensed certified internal auditor or certified public accountant with at least five years experience in the auditing or public accounting profession, or the equivalent, before appointment.
(2)
(a) For a small public transit district, the district's general manager or chief executive officer, as the board prescribes, or for a large public transit district, the executive director, shall appoint all officers and employees not specified in Subsection (1).
(b) Each officer and employee appointed by the district's general manager or chief executive officer of a small public transit district, or the executive director of a large public transit district, serves at the pleasure of the appointing general manager, chief executive officer, or executive director.
(3) For a small public transit district, the board of trustees shall by ordinance or resolution fix the compensation of all district officers and employees, except as otherwise provided in this part.
(4)
(a) Each officer appointed by the board of trustees or transit commission, or by the district's general manager, chief executive officer, or executive director shall take the oath of office specified in Utah Constitution, Article IV, Section 10.
(b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district secretary no later than 15 days after the commencement of the officer's term of office.
(1) In accordance with Title 67, Chapter 5, Attorney General, the Utah attorney general shall serve as legal counsel for a large public transit district.
(2) Sections 67-5-6 through 67-5-13 apply to representation of a large public transit district by the Utah attorney general.
(3) A large public transit district may sue, and it may be sued only on written contracts made by it or under its authority.
(4) In all matters requiring legal advice in the performance of the attorney general's duties and in the prosecution or defense of any action growing out of the performance of the attorney general's duties, the attorney general is the legal adviser of a large public transit district and shall perform any and all legal services required by the large public transit district.
(5) The attorney general shall aid in any investigation, hearing, or trial under the provisions of this part and institute and prosecute actions or proceedings for the enforcement of the provisions of the Constitution and statutes of this state or any rule or ordinance of the large public transit district affecting and related to public transit, persons, and property.
(1)
(a) The board of trustees of a small public transit district shall appoint a person as a general manager.
(b) The board of trustees of a small public transit district may, at its discretion, appoint a person as a chief executive officer.
(c) The board of trustees of a small public transit district shall allocate the responsibilities defined in Subsection (2) between the general manager and the chief executive officer, if the board of trustees appoints a chief executive officer.
(d) The chief executive officer shall have the same rights allocated to the general manager under Subsections (3) and (4).
(e) The appointment of a general manager, chief executive officer, or both, shall be by the affirmative vote of a majority of all members of the board of trustees.
(f) The board's appointment of a person as general manager, chief executive officer, or both, shall be based on the person's qualifications, with special reference to the person's actual experience in or knowledge of accepted practices with respect to the duties of the office.
(g) A person appointed as general manager or chief executive officer of a small public transit district is not required to be a resident of the state at the time of appointment.
(2) A general manager or chief executive officer of a small public transit district shall have the following responsibilities as allocated by the board of trustees:
(a) be a full-time officer and devote full time to the district's business;
(b) ensure that all district ordinances are enforced;
(c) prepare and submit to the board of trustees, as soon as practical but not less than 45 days after the end of each fiscal year, a complete report on the district's finances and administrative activities for the preceding year;
(d) keep the board of trustees advised as to the district's needs;
(e) prepare or cause to be prepared all plans and specifications for the construction of district works;
(f) cause to be installed and maintained a system of auditing and accounting that completely shows the district's financial condition at all times; and
(g) attend meetings of the board of trustees.
(3) A general manager of a small public transit district:
(a) serves at the pleasure of the board of trustees;
(b) holds office for an indefinite term;
(c) may be removed by the board of trustees upon the adoption of a resolution by the affirmative vote of a majority of all members of the board, subject to Subsection (5);
(d) has full charge of:
(i) the acquisition, construction, maintenance, and operation of district facilities; and
(ii) the administration of the district's business affairs;
(e) is entitled to participate in the deliberations of the board of trustees as to any matter before the board; and
(f) may not vote at a meeting of the board of trustees.
(4) The board of trustees may not reduce the general manager's salary below the amount fixed at the time of original appointment unless:
(a) the board adopts a resolution by a vote of a majority of all members; and
(b) if the general manager demands in writing, the board gives the general manager the opportunity to be publicly heard at a meeting of the board before the final vote on the resolution reducing the general manager's salary.
(5)
(a) Before adopting a resolution providing for a general manager's removal as provided in Subsection (3)(c), the board shall, if the manager makes a written demand:
(i) give the general manager a written statement of the reasons alleged for the general manager's removal; and
(ii) allow the general manager to be publicly heard at a meeting of the board of trustees.
(b) Notwithstanding Subsection (5)(a), the board of trustees of a public transit district may suspend a general manager from office pending and during a hearing under Subsection (5)(a)(ii).
(6) The action of a board of trustees suspending or removing a general manager or reducing the general manager's salary is final.
(1)
(a) The governor, with the advice and consent of the Senate, shall appoint an executive director for a large public transit district.
(b) The executive director of a large public transit district in place as of January 1, 2026, shall remain in place until:
(i) reappointed as described in Subsection (1)(a); or
(ii) replaced as described in Subsection (1)(a).
(2)
(a) Except as provided in Subsection (2)(b), the salary of the executive director shall be set as described in Section 67-22-2.
(b) For an executive director in place as of January 1, 2026, the salary and other terms of the executive director's employment contract in place as of January 31, 2026, shall remain in force until the expiration of the contract.
(c) After the expiration of the executive director's employment contract as described in Subsection (2)(b), the executive director is eligible to receive the same benefits as other executive employees of the large public transit district.
(3) The executive director manages and directs the operations of the large public transit district, with the primary and overarching mission to:
(a) provide efficient and cost effective public transit services;
(b) increase ridership;
(c) maintain a state of good repair; and
(d) reduce debt and maintain fiscal responsibility.
(4) The executive director:
(a) serves as a full-time officer and devotes full time to the district's business;
(b) serves at the pleasure of the governor;
(c) holds office for an indefinite term;
(d) ensures that all district ordinances are enforced;
(e) advises the transit commission regarding the needs of the district;
(f) ensures district compliance with state and federal requirements;
(g) attends meetings of the transit commission; and
(h) supervises and has supervisory authority over all employees of the large public transit district.
(5) The executive director shall:
(a)
(i) as described in Subsection (6), create and present the budget of the large public transit district to the transit commission for approval; and
(ii) provide notice of the proposed budget hearing and a copy of the proposed budget to the counties and municipalities within the large public transit district no later than 30 days before the hearing;
(b)
(i) at least as frequently as every four years, in consultation with the transit commission and relevant metropolitan planning organizations, develop a strategic long-range transit plan for the district that aligns with relevant transportation and public transit plans on time horizons of five, 10, and 20 years;
(ii) provide the proposed strategic long-range transit plan described in Subsection (5)(b)(i) to councils of government, counties, municipalities, and other relevant stakeholders for review and input; and
(iii) after considering input received under Subsection (5)(b)(ii), present the proposed strategic long-range transit plan described in Subsection (5)(b)(i) to the transit commission for approval;
(c)
(i) propose for transit commission approval any ordinances or bylaws with effect outside the transit district organization; and
(ii) develop and implement internal transit district policies;
(d) in consultation with the transit commission, create and annually report the public transit district's long-term financial plan to the State Finance Review Commission created in Section 63C-25-201;
(e)
(i) at least as frequently as every five years, perform a cost-effectiveness and cost-benefit study for each mode of public transit; and
(ii) develop goals for the large public transit district to achieve an effective balance of cost-effective and cost-beneficial services;
(f) subject to Section 72-1-203, in consultation with the transit commission, prepare plans and specifications for the construction of district works;
(g) cause to be installed and maintained a system of auditing and accounting that shows the district's financial condition at all times;
(h) notwithstanding Subsections 17B-1-301(2)(l) and (m), have charge of:
(i) the acquisition, construction, maintenance, and operation of public transit facilities; and
(ii) the administration of the public transit district's business affairs;
(i) approve contracts and overall property acquisitions and dispositions for transit-oriented development;
(j) create and pursue funding opportunities for transit capital and service initiatives to meet anticipated growth within the public transit district and in accordance with the strategic long-range transit plan;
(k) regulate each transit facility that the public transit district owns and operates, including:
(i) fix rates, rentals, charges and any classifications of rates, rentals, and charges;
(ii) fix fares; and
(iii) propose rules and approve contracts, practices, and schedules for or in connection with a transit facility that the district owns or controls;
(l) oversee the investment of all funds assigned to the district for investment, including funds:
(i) held as part of a district's retirement system; and
(ii) invested in accordance with the participating employees' designation or direction in accordance with an employee deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code;
(m) if a custodian is appointed under Subsection 17B-2a-808.1(5)(c), pay the fees for the custodian's services from the interest earnings of the investment fund for which the custodian is appointed;
(n) ensure that the policies established by the public transit district meet state and federal regulatory requirements and federal grantee eligibility;
(o) coordinate with political subdivisions within the large public transit district and the department to coordinate public transit services provided by the large public transit district with pilot services related to public transit innovation grants; and
(p) require crime insurance for district officers and employees charged with the handling of district funds in an amount set by the commission.
(6)
(a) The executive director shall prepare and submit to the transit commission an annual operating budget no later than 60 days before the beginning of each fiscal year.
(b) The budget shall include:
(i) estimated revenues from all sources;
(ii) proposed expenditures for all programs, operations, and administrative functions, including:
(A) personnel and overhead costs;
(B) new construction and improvement projects;
(C) operation costs;
(D) maintenance and state of good repair of the public transit system; and
(E) capital expenditures, including vehicle purchases;
(iii) an explanation of significant changes from the budget of the prior fiscal year; and
(iv) other information as requested by the transit commission.
(c)
(i) The transit commission shall review the proposed budget and may conduct hearings and request such additional information as the transit commission considers necessary.
(ii) The budget becomes effective only upon approval by the transit commission.
(iii) If the budget is not approved before the beginning of the fiscal year, the executive director shall operate under the previous year's budget until a new budget is approved.
(d)
(i) The executive director may not make or authorize expenditures that result in a material deviation from the approved budget without prior approval of the transit commission.
(ii) For purposes of this Subsection (6), a "material deviation" means:
(A) a single expenditure or group of related expenditures exceeding 10% of any major expense budget line item;
(B) a reallocation of funds between major budget categories exceeding 15% of the affected expense category; or
(C) an expenditure that would cause total organizational spending to exceed the approved budget by more than 5%.
(iii) The executive director shall request a budget amendment in writing to the transit commission with:
(A) an explanation of the necessity for the deviation; and
(B) the deviation's anticipated impact on the transit district's operations and financial position.
(iv) The executive director may approve minor adjustments within budget categories that do not constitute material deviations, if total expenditures do not exceed the approved budget.
(e)
(i) The budget shall include a comprehensive ten-year budget projection and financial forecast.
(ii) The ten-year budget projection and financial forecast shall include:
(A) projected revenues by source, including farebox revenue, sales tax receipts, federal grants, state contributions, contributions from local governments, and other operating income;
(B) projected operating and capital expenditures, including personnel costs, fleet maintenance and replacement, fuel and energy costs, facilities maintenance, and debt service;
(C) anticipated ridership trends and service level assumptions;
(D) financial forecast balance sheets showing projected assets, liabilities, and fund balances;
(E) projected status of indebtedness and bond payoffs;
(F) material assumptions, including inflation rates, wage adjustments, fuel price projections, and anticipated changes in federal or state funding; and
(G) identified risks to financial sustainability and proposed mitigation strategies.
(f) The executive director shall provide quarterly financial reports to the transit commission comparing actual revenues and expenditures to the approved budget and explaining any variances.
(7)
(a) The executive director shall present to the transit commission in a public meeting a proposed contract for reduced-fare, ticket-as-fare, or other fare event contracts.
(b) The executive director shall provide information about:
(i) the benefits of the reduced-fare, ticket-as-fare, or other fare event proposal; and
(ii) the impacts of the reduced-fare, ticket-as-fare, or other fare event proposal on the budget of the transit district.
(c) A contract for reduced-fare, ticket-as-fare, or other fare event is subject to approval by the transit commission.
(8)
(a) The executive director may propose the issuance of a bond.
(b) A bond proposed by the executive director may not be issued unless:
(i) the bond is reviewed and recommended by the transit commission; and
(ii) approved by the State Finance Review Commission created in Section 63C-25-201.
(9) The executive director shall annually prepare and provide to the transit commission and the Transportation Interim Committee:
(a) a report regarding fare contracts and transit pass programs, including:
(i) information about institutional contracts as well as reduced-fare, ticket-as-fare, or other fare event contracts;
(ii) contribution levels from both the large public transit district and each relevant institution or party;
(iii) projected and observed benefits and costs and return on investment of the proposed contract, including increased ridership, traffic congestion reduction, operational and customer safety, and net financial gain of the large public transit district; and
(iv) other relevant data used to determine that the contract is in the public's transportation interest;
(b) a report of the public transit district's efforts to engage in public-private partnerships for public transit services; and
(c) a financial report in conformity with generally accepted accounting principles.
(10) The executive director shall annually report the public transit district's progress and expenditures related to state resources to the Executive Appropriations Committee and the Transportation and Infrastructure Appropriations Subcommittee.
(11)
(a) At least every two years, the executive director shall provide a report to the transit commission and provide an accounting of:
(i) the amount of revenue from local option sales and use taxes under this part that was collected within each respective county, city, or town and allocated to the large public transit district as provided in this part;
(ii) how much revenue described in Subsection (11)(a)(i) was allocated to provide public transit services utilized by residents of each county, city, and town;
(iii) how the revenue described in Subsection (11)(a)(i) was spent to provide public transit services utilized by residents of each respective county, city, and town; and
(iv) the ridership of all transit services.
(b) After providing the report described in Subsection (11)(a), the executive director shall provide the report to each county, city, and town within the boundary of the large public transit district.
(c) To provide the report described in this Subsection (11), the executive director may coordinate with the Department of Transportation to report on relevant public transit capital development projects administered by the Department of Transportation.
(12) The executive director shall report at least annually to the Transportation Commission created in Section 72-1-301, including:
(a) the district's short-term and strategic long-range transit plans, including the portions of applicable regional transportation plans adopted by a metropolitan planning organization established under 23 U.S.C. Sec. 134; and
(b) any fixed guideway capital development projects that the executive director would like the Transportation Commission to consider.
(13) The executive director or the executive director's designee shall engage:
(a) with elected officials or staff from the relevant metropolitan planning organizations, councils of government, counties, and municipalities within the large public transit district; and
(b) at least annually with elected officials or staff from any county or municipality that provides direct financial contributions for transit district operations, including expanded service or other similar proposals.
The comptroller of each public transit district shall, as soon as possible after the close of each fiscal year:
(1) prepare a statement of revenues and expenditures for the fiscal year just ended, in the detail that the board of trustees or transit commission prescribes; and
(2) transmit a copy of the statement to the chief executive officer of:
(a) each municipality within the district; and
(b) each county with unincorporated area within the district.
(1) As used in this section:
(a)
(i) "Employee" means an individual employed by an employer.
(ii) "Employee" does not include a person employed as a supervisor, managerial employee, or confidential employee.
(b) "Employer" means a person that employs an employee.
(2) The rights, benefits, and other employee protective conditions and remedies of Section 13(c) of the Urban Mass Transportation Act of 1964, 49 U.S.C. Sec. 5333(b), as determined by the Secretary of Labor, apply to a public transit district's establishment and operation of a public transit service or system.
(3)
(a) Employees of a public transit system established and operated by a public transit district have the right to:
(i) self-organization;
(ii) form, join, or assist labor organizations; and
(iii) bargain collectively through representatives of their own choosing.
(b) Employees of a public transit district and labor organizations may not join in a strike against the public transit system operated by the public transit district.
(c) Each public transit district shall:
(i) recognize and bargain exclusively with any labor organization representing a majority of the district's employees in an appropriate unit with respect to wages, salaries, hours, working conditions, and welfare, pension, and retirement provisions; and
(ii) upon reaching agreement with the labor organization, enter into and execute a written contract incorporating the agreement.
(4) If a public transit district acquires an existing public transit system:
(a) all employees of the acquired system who are necessary for the operation of the acquired system, except executive and administrative officers and employees, shall be:
(i) transferred to and appointed employees of the acquiring public transit district; and
(ii) given sick leave, seniority, vacation, and pension or retirement credits in accordance with the acquired system's records;
(b) members and beneficiaries of a pension or retirement plan or other program of benefits that the acquired system has established shall continue to have rights, privileges, benefits, obligations, and status with respect to that established plan or program; and
(c) the public transit district may establish, amend, or modify, by agreement with employees or their authorized representatives, the terms, conditions, and provisions of a pension or retirement plan or of an amendment or modification of a pension or retirement plan.
(5) A pension administrator for a retirement plan sponsored by a public transit district or a person designated by the administrator shall maintain retirement records in accordance with Subsection 49-11-618(2).
Each trustee, officer, and employee of a public transit district is subject to the provisions of Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
(1) The board of trustees of a small public transit district, or the executive director of a large public transit district, shall fix rates and charges for service provided by the district by a two-thirds vote of all board members.
(2) Rates and charges shall:
(a) be reasonable; and
(b) to the extent practicable:
(i) result in enough revenue to make the public transit system self supporting; and
(ii) be sufficient to:
(A) pay for district operating expenses;
(B) provide for repairs, maintenance, and depreciation of works and property that the district owns or operates;
(C) provide for the purchase, lease, or acquisition of property and equipment;
(D) pay the interest and principal of bonds that the district issues; and
(E) pay for contracts, agreements, leases, and other legal liabilities that the district incurs.
(3)
(a) In accordance with Section 63G-2-302, the following personal information received by the district from a customer through any debit, credit, or electronic fare payment process is a private record under Title 63G, Chapter 2, Government Records Access and Management Act:
(i) travel data, including:
(A) the identity of the purchasing individual or entity;
(B) travel dates, times, or frequency of use; and
(C) locations of use;
(ii) service type or vehicle identification used by the customer;
(iii) the unique transit pass identifier assigned to the customer; or
(iv) customer account information, including the cardholder's name, the credit or debit card number, the card issuer identification, or any other related information.
(b) Private records described in this Subsection (3) that are received by a public transit district may only be disclosed in accordance with Section 63G-2-202.
(1)
(a) The legislative body of a county or municipality with territory within a public transit district may, on behalf of a person who is a resident of the county or municipality, respectively, and who is a user of a public transit system operated by the public transit district, file a request for a hearing before the public transit district's board of trustees or transit commission as to:
(i) the reasonableness of a rate or charge fixed by the board of trustees or transit commission; or
(ii) a proposal for fixing the location of district facilities.
(b) Each request under Subsection (1)(a) shall:
(i) be in writing;
(ii) be filed with the board of trustees or transit commission of the public transit district; and
(iii) state the subject matter on which a hearing is requested.
(2)
(a) At least 15 but not more than 60 days after a request under Subsection (1)(a) is filed, the public transit district's board of trustees or transit commission shall hold a hearing on, as the case may be:
(i) the reasonableness of a rate or charge fixed by the board of trustees or transit commission; or
(ii) a proposal for fixing the location of district facilities.
(b) The public transit district board of trustees or transit commission shall provide notice of the hearing by:
(i) mailing, postage prepaid, a notice to:
(A) the county or municipality requesting the hearing; and
(B) the legislative body of each other county and municipality with territory within the public transit district; and
(ii) once publishing a notice.
(3) At each hearing under Subsection (2)(a):
(a) the legislative body of a county or municipality may intervene, be heard, and introduce evidence if the county or municipality:
(i) is eligible to file a request for hearing under Subsection (1); and
(ii) did not file a request for hearing;
(b) the public transit district, the county or municipality that filed the request for hearing, and an intervening county or municipality under Subsection (3)(a) may:
(i) call and examine witnesses;
(ii) introduce exhibits;
(iii) cross-examine opposing witnesses on any matter relevant to the issues, even though the matter was not covered in direct examination; and
(iv) rebut evidence introduced by others;
(c) evidence shall be taken on oath or affirmation;
(d) technical rules of evidence need not be followed, regardless of the existence of a common law or statutory rule that makes improper the admission of evidence over objection in a civil action;
(e) hearsay evidence is admissible in order to supplement or explain direct evidence, but is not sufficient in itself to support a finding unless it would be admissible over objection in a civil action; and
(f) the public transit district board of trustees or transit commission shall appoint a reporter to take a complete record of all proceedings and testimony before the board or transit commission.
(4)
(a) Within 60 days after the conclusion of a hearing under Subsection (2)(a), the public transit district board of trustees or transit commission shall render its decision in writing, together with written findings of fact.
(b) The board of trustees or transit commission shall mail by certified mail, postage prepaid, a copy of the decision and findings to:
(i) the county or municipality that filed a request under Subsection (1); and
(ii) each county and municipality that intervened under Subsection (3)(a).
(5) In any action to review a decision of a public transit district board of trustees or transit commission under this section, the record on review shall consist of:
(a) the written request for hearing, the transcript of the testimony at the hearing, and all exhibits introduced at the hearing; or
(b) if the parties stipulate in writing:
(i) the evidence specified in the stipulation; and
(ii) the written stipulation itself.
Notwithstanding the provisions of Section 17B-1-1001 and in addition to a property tax under Section 17B-1-1103 to pay general obligation bonds of the district, a public transit district may levy a property tax, as provided in and subject to Chapter 1, Part 10, Special District Property Tax Levy, if:
(1) the district first submits the proposal to levy the property tax to voters within the district; and
(2) a majority of voters within the district voting on the proposal vote in favor of the tax at an election held for that purpose on a date specified in Section 20A-1-204.
(1) A public transit district shall comply with the applicable provisions of Title 63G, Chapter 6a, Utah Procurement Code.
(2) If construction of a district facility or work exceeds $750,000, the construction shall be let as provided in:
(a) Title 63G, Chapter 6a, Utah Procurement Code; and
(b) Section 17B-2a-818.5.
(3)
(a) In addition to the requirements of Title 63G, Chapter 6a, Utah Procurement Code, before beginning a procurement process for a passenger railcar or 10 or more passenger buses for a zero emissions project, a large public transit district shall complete a request for information in accordance with Section 63G-6a-409 to compare the costs for different types of available zero emissions propulsion systems for the passenger railcar or passenger buses.
(b) In performing the cost comparison described in Subsection (3)(a), the large public transit district shall consider:
(i) the purchase price;
(ii) the fuel cost per mile per gallon equivalent;
(iii) the service and maintenance costs over a 15-year period;
(iv) the estimated lifespan;
(v) passenger capacity; and
(vi) supply chain risks and costs.
(1) As used in this section:
(a) "Aggregate" means the sum of all contracts, change orders, and modifications related to a single project.
(b) "Change order" means the same as that term is defined in Section 63G-6a-103.
(c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or "operative" who:
(i) works at least 30 hours per calendar week; and
(ii) meets employer eligibility waiting requirements for health care insurance, which may not exceed the first day of the calendar month following 60 days after the day on which the individual is hired.
(d) "Health benefit plan" means:
(i) the same as that term is defined in Section 31A-1-301; or
(ii) an employee welfare benefit plan:
(A) established under the Employee Retirement Income Security Act of 1974, 29 U.S.C. Sec. 1001 et seq.;
(B) for an employer with 100 or more employees; and
(C) in which the employer establishes a self-funded or partially self-funded group health plan to provide medical care for the employer's employees and dependents of the employees.
(e) "Qualified health coverage" means the same as that term is defined in Section 26B-3-909.
(f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
(g) "Third party administrator" or "administrator" means the same as that term is defined in Section 31A-1-301.
(2) Except as provided in Subsection (3), the requirements of this section apply to:
(a) a contractor of a design or construction contract entered into by the public transit district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than $2,000,000; and
(b) a subcontractor of a contractor of a design or construction contract entered into by the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
(3) The requirements of this section do not apply to a contractor or subcontractor described in Subsection (2) if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract is a sole source contract; or
(c) the contract is an emergency procurement.
(4) A person that intentionally uses change orders, contract modifications, or multiple contracts to circumvent the requirements of this section is guilty of an infraction.
(5)
(a) A contractor subject to the requirements of this section shall demonstrate to the public transit district that the contractor has and will maintain an offer of qualified health coverage for the contractor's employees and the employee's dependents during the duration of the contract by submitting to the public transit district a written statement that:
(i) the contractor offers qualified health coverage that complies with Section 26B-3-909;
(ii) is from:
(A) an actuary selected by the contractor or the contractor's insurer;
(B) an underwriter who is responsible for developing the employer group's premium rates; or
(C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or underwriter selected by a third party administrator; and
(iii) was created within one year before the day on which the statement is submitted.
(b)
(i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii) shall provide the actuary or underwriter selected by an administrator, as described in Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's contribution to the health benefit plan and the actuarial value of the health benefit plan meet the requirements of qualified health coverage.
(ii) A contractor may not make a change to the contractor's contribution to the health benefit plan, unless the contractor provides notice to:
(A) the actuary or underwriter selected by an administrator as described in Subsection (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in Subsection (5)(a) in compliance with this section; and
(B) the public transit district.
(c) A contractor that is subject to the requirements of this section shall:
(i) place a requirement in each of the contractor's subcontracts that a subcontractor that is subject to the requirements of this section shall obtain and maintain an offer of qualified health coverage for the subcontractor's employees and the employees' dependents during the duration of the subcontract; and
(ii) obtain from a subcontractor that is subject to the requirements of this section a written statement that:
(A) the subcontractor offers qualified health coverage that complies with Section 26B-3-909;
(B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an underwriter who is responsible for developing the employer group's premium rates, or if the subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or underwriter selected by an administrator; and
(C) was created within one year before the day on which the contractor obtains the statement.
(d)
(i)
(A) A contractor that fails to maintain an offer of qualified health coverage as described in Subsection (5)(a) during the duration of the contract is subject to penalties in accordance with an ordinance adopted by the public transit district under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to obtain and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
(ii)
(A) A subcontractor that fails to obtain and maintain an offer of qualified health coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to penalties in accordance with an ordinance adopted by the public transit district under Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to maintain an offer of qualified health coverage described in Subsection (5)(a).
(6) The public transit district shall adopt ordinances:
(a) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 19-1-206;
(ii) the Department of Natural Resources in accordance with Section 79-2-404;
(iii) the Division of Facilities Construction and Management in accordance with Section 63A-5b-607;
(iv) the State Capitol Preservation Board in accordance with Section 63O-2-403; and
(v) the Department of Transportation in accordance with Section 72-6-107.5; and
(b) that establish:
(i) the requirements and procedures a contractor and a subcontractor shall follow to demonstrate compliance with this section, including:
(A) that a contractor or subcontractor's compliance with this section is subject to an audit by the public transit district or the Office of the Legislative Auditor General;
(B) that a contractor that is subject to the requirements of this section shall obtain a written statement described in Subsection (5)(a); and
(C) that a subcontractor that is subject to the requirements of this section shall obtain a written statement described in Subsection (5)(c)(ii);
(ii) the penalties that may be imposed if a contractor or subcontractor intentionally violates the provisions of this section, which may include:
(A) a three-month suspension of the contractor or subcontractor from entering into future contracts with the public transit district upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future contracts with the public transit district upon the second violation;
(C) an action for debarment of the contractor or subcontractor in accordance with Section 63G-6a-904 upon the third or subsequent violation; and
(D) monetary penalties which may not exceed 50% of the amount necessary to purchase qualified health coverage for employees and dependents of employees of the contractor or subcontractor who were not offered qualified health coverage during the duration of the contract; and
(iii) a website on which the district shall post the commercially equivalent benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by the Department of Health and Human Services, in accordance with Subsection 26B-3-909(2).
(7)
(a)
(i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor or subcontractor who intentionally violates the provisions of this section is liable to the employee for health care costs that would have been covered by qualified health coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection (7)(a)(i) if:
(A) the employer relied in good faith on a written statement described in Subsection (5)(a) or (5)(c)(ii); or
(B) a department or division determines that compliance with this section is not required under the provisions of Subsection (3).
(b) An employee has a private right of action only against the employee's employer to enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the Medicaid Growth Reduction and Budget Stabilization Account created in Section 63J-1-315.
(9) The failure of a contractor or subcontractor to provide qualified health coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror, or contractor under:
(i) Section 63G-6a-1602; or
(ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design or construction.
(10) An administrator, including an administrator's actuary or underwriter, who provides a written statement under Subsection (5)(a) or (c) regarding the qualified health coverage of a contractor or subcontractor who provides a health benefit plan described in Subsection (1)(d)(ii):
(a) subject to Subsection (10)(b), is not liable for an error in the written statement, unless the administrator commits gross negligence in preparing the written statement;
(b) is not liable for any error in the written statement if the administrator relied in good faith on information from the contractor or subcontractor; and
(c) may require as a condition of providing the written statement that a contractor or subcontractor hold the administrator harmless for an action arising under this section.
(1) Each public transit district is subject to department regulations relating to safety appliances and procedures.
(2)
(a) Each installation by a public transit district in a state highway or freeway is subject to the approval of the department.
(b) There is a presumption that the use of a street, road, highway, or other public place by a public transit district for any of the purposes permitted in this part constitutes no greater burden on an adjoining property than the use existing on July 9, 1969.
(c) If a street, road, or highway, excluding a state highway or freeway, or a pipeline, sewer, water main, storm drain, pole, or communication wire is required to be relocated, replaced, or altered in order for a public transit district to construct or operate its system or to preserve and maintain an already constructed district facility:
(i) the public or private owner of the facility required to be relocated, replaced, or altered shall relocate, replace, or alter the facility with reasonable promptness; and
(ii) the public transit district shall, by prior agreement, reimburse the owner for the reasonable cost incurred in the relocation, replacement, or alteration.
(d)
(i) A public transit district may enter into an agreement with a county or municipality to:
(A) close a street or road over which the county or municipality has jurisdiction at or near the point of its interception with a district facility; or
(B) carry the street or road over or under or to a connection with a district facility.
(ii) A public transit district may do all work on a street or road under Subsection (2)(d)(i) as is necessary.
(iii) A street or road may not be closed, directly or indirectly, by the construction of a district facility unless the closure is:
(A) pursuant to agreement under Subsection (2)(d)(i); or
(B) temporarily necessary during the construction of a district facility.
(3) Each public transit district is subject to the laws and regulations of the state and each applicable municipality relating to traffic and operation of vehicles upon streets and highways.
The state, a county, or a municipality may, by eminent domain under Title 78B, Chapter 6, Part 5, Eminent Domain, acquire within its boundaries a private property interest, including fee simple, easement, air right, right-of-way, or other interest, necessary for the establishment or operation of a public transit district.
The board of trustees or transit commission of a multicounty district may adopt an ordinance governing parking of vehicles at a transit facility, including the imposition of a fine or civil penalty for a violation of the ordinance.
(1) The board of trustees or transit commission of a multicounty district may employ law enforcement officers or contract with other law enforcement agencies to provide law enforcement services for the district.
(2) A law enforcement officer employed or provided by contract under Subsection (1) is a law enforcement officer under Section 53-13-103 and shall be subject to the provisions of that section.
(1) As used in this section, "bureau" means a recreational, tourist, or convention advisory board, council, committee, body, or bureau that substantially conforms to the requirements of Section 17-78-706.
(2)
(a) A public transit district may lease its buses to private certified public carriers or operate transit services requested by a public entity if a bureau certifies that privately owned carriers furnishing like services or operating like equipment within the area served by the bureau:
(i) have declined to provide the service; or
(ii) do not have the equipment necessary to provide the service.
(b) A public transit district may lease the public transit district's buses or operate services as authorized under Subsection (2)(a) outside of the area served by the district.
(3) If part or all of the transportation services are paid for by public funds, a public transit district may:
(a) provide school bus services for transportation of pupils and supervisory personnel between homes and school and other related school activities within the area served by the district; or
(b) provide the transportation of passengers covered by a program within the district for people who are elderly or who have a disability.
(4) Notwithstanding the provisions in Subsection (3), a municipality or county is not prohibited from providing the transportation services identified in Subsection (3).
(1) Except as provided in Subsection (3), title to property acquired on behalf of a public transit district under this part immediately and by operation of law vests in the public transit district.
(2) Property described in Subsection (1) is dedicated and set apart for the purposes set forth in this part.
(3) Any property purchased or acquired by the Department of Transportation for public transit purposes:
(a) does not vest in the public transit district; and
(b) remains under the ownership of the Department of Transportation.
(4) The Department of Transportation may sell, donate, exchange, or otherwise convey in fee simple property described in Subsection (3) to a public transit district if:
(a)
(i) the property is adjacent or ancillary to property the public transit district utilizes for the operation of a fixed guideway; and
(ii) the Department of Transportation determines that the conveyance of the property to the public transit district provides a benefit to the state;
(b) the conveyance is necessary to fulfilling federal grant or other funding requirements; or
(c) the conveyance is made in accordance with an administrative rule enacted pursuant to Section 72-5-117.
(5) If the Department of Transportation purchases one or more transit vehicles for public transit purposes, the Department of Transportation may sell, donate, exchange, or otherwise convey the transit vehicles to a public transit district if:
(a) the Department of Transportation determines that the conveyance of the transit vehicles to the public transit district provides a benefit to the state; or
(b) the conveyance is necessary to fulfill federal grant or other funding requirements.
(1) A public transit district may require an individual described in Subsection (2) to:
(a) submit a fingerprint card in a form acceptable to the public transit district; and
(b) consent to a fingerprint background check by:
(i) the Utah Bureau of Criminal Identification; and
(ii) the Federal Bureau of Investigation.
(2) A person shall comply with the requirements of Subsection (1) if the person:
(a) is applying for or continuing employment with the public transit district:
(i) working in a safety-sensitive position or other position that may affect:
(A) the safety or well-being of patrons of the public transit district; or
(B) the safety or security of the transit buildings, stations, platforms, railways, bus systems, and transit vehicles;
(ii) handling personally identifiable information, financial information, or other sensitive information including personal health information;
(iii) working in security-sensitive areas; or
(iv) handling security-sensitive information, including information system technologies; or
(b) is seeking access to designated security-sensitive areas.
(3) A public transit district may use the information obtained in accordance with this section only for one or more of the following purposes:
(a) to determine whether or not an individual is convicted of:
(i) a felony under federal or state law within the last 10 years;
(ii) a violation within the last 10 years of a federal law, state law, or local ordinance concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic beverage;
(iii) a crime involving moral turpitude; or
(iv) two or more convictions within the last 10 years for a violation of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug;
(b) to determine whether or not an individual has accurately disclosed the person's criminal history on an application or document filed with the public transit district;
(c) to approve or deny an application for employment with the public transit district; or
(d) to take disciplinary action against an employee of the public transit district, including possible termination of employment.
(4) A person is not eligible for employment with a public transit district in a capacity described in Subsection (2) if the person has been convicted of any of the offenses described in Subsection (3).
(1)
(a) The executive director of a large public transit district shall create and employ an office of constituent services.
(b) The duties of the office of constituent services described in Subsection (1)(a) shall include:
(i) establishing a central call number to hear and respond to complaints, requests, comments, concerns, and other communications from customers and citizens within the district;
(ii) keeping a log of the complaints, comments, concerns, and other communications from customers and citizens within the district; and
(iii) reporting complaints, comments, concerns, and other communications to management.
(2)
(a) A large public transit district shall create and employ an office of coordinated mobility.
(b) The duties of the office of coordinated mobility shall include:
(i) establishing a central call number to facilitate human services transportation;
(ii) coordinating all human services transportation needs within the public transit district;
(iii) receiving requests and other communications regarding human services transportation;
(iv) receiving requests and other communications regarding vans, buses, and other vehicles available for use from the public transit district to maximize the utility of and investment in those vehicles; and
(v) supporting local efforts and applications for additional funding.
(1) If a public transit district provides public transit services in an area that is adjacent to or overlaps with an area in which public transit services are also provided by another public transit provider, including a public-private partnership entity, the public transit district and the public transit provider entity shall ensure that:
(a) any public transit facilities of one provider connect with the public transit facilities of the other provider;
(b) the schedules of all relevant public transit providers are coordinated as one public transit system; and
(c)
(i) if both public transit providers collect a fare directly from public transit passengers, an integrated and uniform fare system is implemented across the coordinated public transit system; and
(ii) the revenue generated from the uniform fare system is equitably divided among the public transit providers according to service provided and mileage covered.
(2) A public transit district and a public transit provider, including a public-private partnership entity, may negotiate the ability of one public transit provider to operate on the transit facilities of the other public transit provider.
(3)
(a) The Department of Transportation shall oversee the negotiation, integration, and coordination described in Subsection (1).
(b) For the negotiation, integration, or coordination between a public transit district and a public-private partnership, the oversight described in Subsection (3)(a) applies only to fixed-route bus or rail services.
(1) A public transit district shall coordinate public transit services provided by the public transit district with pilot services related to public transit innovation grants.
(2) After receiving the reports described in Section 72-2-404, the public transit district shall consider integrating awarded public transit innovation grant operations that meet the public transit district's service planning standards.
This part is known as the "Service Area Act."
(1) Each service area is governed by and has the powers stated in:
(a) this part; and
(b) except as provided in Subsection (5), Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to service areas.
(3) A service area is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(5)
(a) Except as provided in Subsection (5)(b), on or after December 31, 2012, a service area may not charge or collect a fee under Section 17B-1-643 for:
(i) law enforcement services;
(ii) fire protection services;
(iii) 911 ambulance or paramedic services as defined in Section 53-2d-101 that are provided under a contract in accordance with Section 53-2d-505.2; or
(iv) emergency services.
(b) Subsection (5)(a) does not apply to:
(i) a fee charged or collected on an individual basis rather than a general basis;
(ii) a non-911 service as defined in Section 53-2d-101 that is provided under a contract in accordance with Section 53-2d-505.2;
(iii) an impact fee charged or collected for a public safety facility as defined in Section 11-36a-102; or
(iv) a service area that includes within the boundary of the service area a county of the fifth or sixth class.
(1) In addition to the powers conferred on a service area under Section 17B-1-103, a service area:
(a) may issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(b) that, until April 30, 2007, was a regional service area, may provide park, recreation, or parkway services, or any combination of those services; and
(c) may, with the consent of the county in which the service area is located, provide planning and zoning service.
(2) A service area that provides law enforcement service may not levy a property tax or increase its certified tax rate, as defined in Section 59-2-924, without the prior approval of:
(a)
(i) the legislative body of each municipality that is partly or entirely within the boundary of the service area; and
(ii) the legislative body of the county with an unincorporated area within the boundary of the service area; or
(b)
(i) a majority of the legislative bodies of all municipalities that are partly or entirely within the boundary of the service area; and
(ii) two-thirds of the legislative body of the county with an unincorporated area within the boundary of the service area.
(1) Each regional service area, created and operating under the law in effect before April 30, 2007, becomes on that date a service area, governed by and subject to Chapter 1, Provisions Applicable to All Special Districts, and this part.
(2) The change of an entity from a regional service area to a service area under Subsection (1) does not affect:
(a) the entity's basic structure and operations or its nature as a body corporate and politic and a political subdivision of the state;
(b) the ability of the entity to provide the service that the entity:
(i) was authorized to provide before the change; and
(ii) provided before the change;
(c) the validity of the actions taken, bonds issued, or contracts or other obligations entered into by the entity before the change;
(d) the ability of the entity to continue to impose and collect taxes, fees, and other charges for the service it provides;
(e) the makeup of the board of trustees;
(f) the entity's ownership of property acquired before the change; or
(g) any other powers, rights, or obligations that the entity had before the change, except as modified by this part.
(1)
(a) Except as provided in Subsection (2), (3), or (4):
(i) the initial board of trustees of a service area located entirely within the unincorporated area of a single county may, as stated in the petition or resolution that initiated the process of creating the service area:
(A) consist of the county legislative body;
(B) be appointed, as provided in Section 17B-1-304; or
(C) be elected, as provided in Section 17B-1-306;
(ii) if the board of trustees of a service area consists of the county legislative body, the board may adopt a resolution providing for future board members to be appointed, as provided in Section 17B-1-304, or elected, as provided in Section 17B-1-306; and
(iii) members of the board of trustees of a service area shall be elected, as provided in Section 17B-1-306, if:
(A) the service area is not entirely within the unincorporated area of a single county;
(B) a petition is filed with the board of trustees requesting that board members be elected, and the petition is signed by registered voters within the service area equal in number to at least 10% of the number of registered voters within the service area who voted at the last gubernatorial election; or
(C) an election is held to authorize the service area's issuance of bonds.
(b) If members of the board of trustees of a service area are required to be elected under Subsection (1)(a)(iii)(C) because of a bond election:
(i) board members shall be elected in conjunction with the bond election;
(ii) the board of trustees shall:
(A) establish a process to enable potential candidates to file a declaration of candidacy sufficiently in advance of the election; and
(B) provide a ballot for the election of board members separate from the bond ballot; and
(iii) except as provided in this Subsection (1)(b), the election shall be held as provided in Section 17B-1-306.
(2)
(a) This Subsection (2) applies to a service area created on or after May 5, 2003, if:
(i) the service area was created to provide:
(A) fire protection, paramedic, and emergency services; or
(B) law enforcement service;
(ii) in the creation of the service area, an election was not required under Subsection 17B-1-214(3)(d); and
(iii) the service area is not a service area described in Subsection (3).
(b)
(i) Each county with unincorporated area that is included within a service area described in Subsection (2)(a), whether in conjunction with the creation of the service area or by later annexation, shall appoint up to three members to the board of trustees.
(ii) Each municipality with an area that is included within a service area described in Subsection (2)(a), whether in conjunction with the creation of the service area or by later service area annexation or municipal incorporation or annexation, shall appoint one member to the board of trustees, unless the area of the municipality is withdrawn from the service area.
(iii) Each member that a county or municipality appoints under Subsection (2)(b)(i) or (ii) shall be an elected official of the appointing county or municipality, respectively.
(c) Notwithstanding Subsection 17B-1-302(8), the number of members of a board of trustees of a service area described in Subsection (2)(a) shall be the number resulting from application of Subsection (2)(b).
(3)
(a) This Subsection (3) applies to a service area created on or after May 14, 2013, if:
(i) the service area was created to provide fire protection, paramedic, and emergency services;
(ii) in the creation of the service area, an election was not required under Subsection 17B-1-214(3)(d); and
(iii) each municipality with an area that is included within the service area or county with unincorporated area, whether in whole or in part, that is included within a service area is a party to an agreement:
(A) entered into in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, with all the other municipalities or counties with an area that is included in the service area;
(B) to provide the services described in Subsection (3)(a)(i); and
(C) at the time a resolution proposing the creation of the service area is adopted by each applicable municipal or county legislative body in accordance with Subsection 17B-1-203(1)(e).
(b)
(i) Each county with unincorporated area, whether in whole or in part, that is included within a service area described in Subsection (3)(a), whether in conjunction with the creation of the service area or by later annexation, shall appoint one member to the board of trustees.
(ii) Each municipality with an area that is included within a service area described in Subsection (3)(a), whether in conjunction with the creation of the service area or by later annexation, shall appoint one member to the board of trustees.
(iii) Each member that a county or municipality appoints under Subsection (3)(b)(i) or (ii) shall be an elected official of the appointing county or municipality, respectively.
(iv) A vote by a member of the board of trustees may be weighted or proportional.
(c) Notwithstanding Subsection 17B-1-302(8), the number of members of a board of trustees of a service area described in Subsection (3)(a) is the number resulting from the application of Subsection (3)(b).
(4)
(a) This Subsection (4) applies to a service area if:
(i) the service area provides a service to a municipality in accordance with an agreement between the service area and the municipality in accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
(ii) the municipality is not included within the service area's boundary;
(iii) the governing body of the municipality petitions the service area to request authority to appoint one member of the board of trustees of the service area; and
(iv) the service area board of trustees approves the petition.
(b) The governing body of a municipality described in Subsection (4)(a) may appoint a member of a service area board of trustees as follows:
(i) the governing body shall make the appointment in accordance with:
(A) Section 17B-1-304; or
(B) to fill a mid-term vacancy, Subsection 20A-1-512(1);
(ii) the governing body may not appoint an individual who is not a registered voter residing within the municipality;
(iii) the district boundary requirement in Subsection 17B-1-302(1) does not apply to the governing body's appointee;
(iv) the governing body and the service area board of trustees may not shorten the term of office of any member of the board due to the governing body's appointment;
(v) notwithstanding Subsection 17B-1-302(8), the number of members of the board of trustees of a service area described in Subsection (4)(a) may be odd or even; and
(vi) if the number of members of a service area board of trustees is odd before the governing body's appointment, the member that the governing body appoints may replace a member whose term is expiring or who otherwise leaves a vacancy on the board or, if no expiring term or vacancy exists:
(A) the number of board members may temporarily be even, including the member that the governing body appoints, until an expiring term or vacancy exists that restores the board membership to an odd number; and
(B) no appointing authority may fill the expiring term or vacancy that restores the board membership to an odd number.
(c)
(i) The service area board of trustees may rescind the approval described in Subsection (4)(a) at any time.
(ii) If the service area board of trustees rescinds the approval described in Subsection (4)(a) during the term of a board member that the governing body appointed, the appointee shall remain on the board for the remainder of the appointee's term.
A service area may begin to provide within the boundaries of the service area a service that it had not previously provided by using the procedures set forth in Chapter 1, Part 2, Creation of Special District, for the creation of a service area as though a new service area were being created to provide that service.
This part is known as the "Water Conservancy District Act."
(1) It is the policy of the state to:
(a) provide for the conservation and development of the water and land resources of the state;
(b) provide for the greatest beneficial use of water within the state;
(c) control and make use of all unappropriated waters in the state and to apply those waters to direct and supplemental beneficial uses including domestic, manufacturing, irrigation, and power;
(d) obtain from water in the state the highest duty for domestic uses and irrigation of lands in the state within the terms of applicable interstate compacts and other law;
(e) cooperate with the United States and its agencies under federal reclamation or other laws and to construct, finance, operate, and maintain works in the state; and
(f) promote the greater prosperity and general welfare of the people of the state by encouraging the organization of water conservancy districts.
(2) The creation and operation of water conservancy districts are a public use to help accomplish the policy stated in Subsection (1) and will:
(a) be essentially for the benefit and advantage of the people of the state;
(b) indirectly benefit all industries of the state;
(c) indirectly benefit the state by increasing the value of taxable property in the state;
(d) directly benefit municipalities by providing adequate supplies of water for domestic use;
(e) directly benefit lands to be irrigated or drained;
(f) directly benefit lands now under irrigation by stabilizing the flow of water in streams and by increasing flow and return flow of water to those streams; and
(g) promote the comfort, safety, and welfare of the people of the state.
(1) Each water conservancy district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(2) This part applies only to water conservancy districts.
(3) A water conservancy district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provision in this part governs.
(1) In addition to the powers conferred on a water conservancy district under Section 17B-1-103, a water conservancy district may:
(a) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;
(b) acquire or lease any real or personal property or acquire any interest in real or personal property, as provided in Subsections 17B-1-103(2)(a) and (b), whether inside or outside the district;
(c) acquire or construct works, facilities, or improvements, as provided in Subsection 17B-1-103(2)(d), whether inside or outside the district;
(d) acquire water, works, water rights, and sources of water necessary or convenient to the full exercise of the district's powers, whether the water, works, water rights, or sources of water are inside or outside the district, and encumber, sell, lease, transfer an interest in, or dispose of water, works, water rights, and sources of water;
(e) fix rates and terms for the sale, lease, or other disposal of water;
(f) acquire rights to the use of water from works constructed or operated by the district or constructed or operated pursuant to a contract to which the district is a party, and sell rights to the use of water from those works;
(g) levy assessments against lands within the district to which water is allotted on the basis of:
(i) a uniform district-wide value per acre foot of irrigation water; or
(ii) a uniform unit-wide value per acre foot of irrigation water, if the board divides the district into units and fixes a different value per acre foot of water in the respective units;
(h) fix rates for the sale, lease, or other disposal of water, other than irrigation water, at rates that are equitable, though not necessarily equal or uniform, for like classes of service;
(i) adopt and modify plans and specifications for the works for which the district was organized;
(j) investigate and promote water conservation and development;
(k) appropriate and otherwise acquire water and water rights inside or outside the state;
(l) develop, store, treat, and transport water;
(m) acquire stock in canal companies, water companies, and water users associations;
(n) acquire, construct, operate, or maintain works for the irrigation of land;
(o) subject to Subsection (2), sell water and water services to individual customers and charge sufficient rates for the water and water services supplied;
(p) own property for district purposes within the boundaries of a municipality; and
(q) coordinate water resource planning among public entities.
(2)
(a) A water conservancy district and another political subdivision of the state may contract with each other, and a water conservancy district may contract with one or more public entities and private persons, for:
(i) the joint operation or use of works owned by any party to the contract; or
(ii) the sale, purchase, lease, exchange, or loan of water, water rights, works, or related services.
(b) An agreement under Subsection (2)(a) may provide for the joint use of works owned by one of the contracting parties if the agreement provides for reasonable compensation.
(c) A statutory requirement that a district supply water to its own residents on a priority basis does not apply to a contract under Subsection (2)(a).
(d) An agreement under Subsection (2)(a) may include terms that the parties determine, including:
(i) a term of years specified by the contract;
(ii) a requirement that the purchasing party make specified payments, without regard to actual taking or use;
(iii) a requirement that the purchasing party pay user charges, charges for the availability of water or water facilities, or other charges for capital costs, debt service, operating and maintenance costs, and the maintenance of reasonable reserves, whether or not the related water, water rights, or facilities are acquired, completed, operable, or operating, and notwithstanding the suspension, interruption, interference, reduction, or curtailment of water or services for any reason;
(iv) provisions for one or more parties to acquire an undivided ownership interest in, or a contractual right to the capacity, output, or services of, joint water facilities, and establishing:
(A) the methods for financing the costs of acquisition, construction, and operation of the joint facilities;
(B) the method for allocating the costs of acquisition, construction, and operation of the facilities among the parties consistent with their respective interests in or rights to the facilities;
(C) a management committee comprised of representatives of the parties, which may be responsible for the acquisition, construction, and operation of the facilities as the parties determine; and
(D) the remedies upon a default by any party in the performance of its obligations under the contract, which may include a provision obligating or enabling the other parties to succeed to all or a portion of the ownership interest or contractual rights and obligations of the defaulting party; and
(v) provisions that a purchasing party make payments from:
(A) general or other funds of the purchasing party;
(B) the proceeds of assessments levied under this part;
(C) the proceeds of impact fees imposed by any party under Title 11, Chapter 36a, Impact Fees Act;
(D) revenues from the operation of the water system of a party receiving water or services under the contract;
(E) proceeds of any revenue-sharing arrangement between the parties, including amounts payable as a percentage of revenues or net revenues of the water system of a party receiving water or services under the contract; and
(F) any combination of the sources of payment listed in Subsections (2)(d)(v)(A) through (E).
(3)
(a) A water conservancy district may enter into a contract with another state or a political subdivision of another state for the joint construction, operation, or ownership of a water facility.
(b) Water from any source in the state may be appropriated and used for beneficial purposes within another state only as provided in Title 73, Chapter 3a, Water Exports.
(4)
(a) Except as provided in Subsection (4)(b), a water conservancy district may not sell water to a customer located within a municipality for domestic or culinary use without the consent of the municipality.
(b) Subsection (4)(a) does not apply if:
(i) the property of a customer to whom a water conservancy district sells water was, at the time the district began selling water to the customer, within an unincorporated area of a county; and
(ii) after the district begins selling water to the customer, the property becomes part of a municipality through municipal incorporation or annexation.
(5) A water conservancy district may not carry or transport water in transmountain diversion if title to the water was acquired by a municipality by eminent domain.
(6) A water conservancy district may not be required to obtain a franchise for the acquisition, ownership, operation, or maintenance of property.
(7) A water conservancy district may not acquire by eminent domain title to or beneficial use of vested water rights for transmountain diversion.
(1) Members of the board of trustees for a water conservancy district shall be:
(a) elected in accordance with:
(i) the petition or resolution that initiated the process of creating the water conservancy district; and
(ii) Section 17B-1-306;
(b) appointed in accordance with Subsection (2); or
(c) elected under Subsection (4)(a).
(2)
(a) If the members of the board of trustees are appointed, within 45 days after the day on which a water conservancy district is created as provided in Section 17B-1-215, the board of trustees shall be appointed as provided in this Subsection (2).
(b) For a district located entirely within the boundaries of a single county, the county legislative body of that county shall appoint each trustee.
(c)
(i) For a district located in more than a single county, the governor, with the advice and consent of the Senate, shall appoint each trustee from nominees submitted as provided in this Subsection (2)(c).
(ii)
(A) Except as provided in Subsection (2)(c)(ii)(B), in a division composed solely of municipalities, the legislative body of each municipality within the division shall submit two nominees per trustee.
(B) The legislative body of a municipality may submit fewer than two nominees per trustee if the legislative body certifies in writing to the governor that the legislative body is unable, after reasonably diligent effort, to identify two nominees who are willing and qualified to serve as trustee.
(iii)
(A) Except as provided in Subsection (2)(c)(iii)(B), in all other divisions, the county legislative body of the county in which the division is located shall submit three nominees per trustee.
(B) The county legislative body may submit fewer than three nominees per trustee if the county legislative body certifies in writing to the governor that the county legislative body is unable, after reasonably diligent effort, to identify three nominees who are willing and qualified to serve as trustee.
(iv) If a trustee represents a division located in more than one county, the county legislative bodies of those counties shall collectively compile the list of three nominees.
(v) For purposes of this Subsection (2)(c), a municipality that is located in more than one county shall be considered to be located in only the county in which more of the municipal area is located than in any other county.
(d) In districts where substantial water is allocated for irrigated agriculture, one trustee appointed in that district shall be a person who owns irrigation rights and uses those rights as part of that person's livelihood.
(3)
(a) The board shall give written notice of the upcoming vacancy in an appointed trustee's term and the date when the trustee's term expires to the county legislative body in single county districts and to the nominating entities and the governor in all other districts:
(i) if the upcoming vacancy is in a single county district, at least 90 days before the expiration of the trustee's term; and
(ii) for all other districts, on or before October 1 before the expiration of the appointed trustee's term.
(b)
(i) Upon receipt of the notice of the expiration of an appointed trustee's term or notice of a vacancy in the office of an appointed trustee, the county or municipal legislative body, as the case may be, shall nominate candidates to fill the unexpired term of office pursuant to Subsection (2).
(ii) If a trustee is to be appointed by the governor and the entity charged with nominating candidates has not submitted the list of nominees within 90 days after service of the notice, the governor shall, with the advice and consent of the Senate, make the appointment from qualified candidates without consultation with the county or municipal legislative body.
(iii) If the governor fails to appoint, the incumbent shall continue to serve until a successor is appointed and qualified.
(iv) Appointment by the governor vests in the appointee, upon qualification, the authority to discharge the duties of trustee, subject only to the advice and consent of the Senate.
(c) Each trustee shall hold office during the term for which appointed and until a successor is duly appointed and has qualified.
(4)
(a) Members of the board of trustees of a water conservancy district shall be elected, if, subject to Subsection (4)(b):
(i) two-thirds of all members of the board of trustees of the water conservancy district vote in favor of changing to an elected board; and
(ii) the legislative body of each municipality or county that appoints a member to the board of trustees adopts a resolution approving the change to an elected board.
(b) A change to an elected board of trustees under Subsection (4)(a) may not shorten the term of any member of the board of trustees serving at the time of the change.
(5) The board of trustees of a water conservancy district shall consist of:
(a) except as provided in Subsection (5)(b), not more than 11 persons who are residents of the district; or
(b) if the district consists of five or more counties, not more than 21 persons who are residents of the district.
(6) If an elected trustee's office is vacated, the vacated office shall be filled in accordance with Section 17B-1-303.
(7) Each trustee shall obtain crime insurance at the expense of the district, conditioned for the faithful performance of duties as a trustee.
(8)
(a) The board of trustees of a water conservancy district may:
(i) make and enforce all reasonable rules and regulations for the management, control, delivery, use, and distribution of water;
(ii) withhold the delivery of water with respect to which there is a default or delinquency of payment;
(iii) provide for and declare a forfeiture of the right to the use of water upon the default or failure to comply with an order, contract, or agreement for the purchase, lease, or use of water, and resell, lease, or otherwise dispose of water with respect to which a forfeiture has been declared;
(iv) allocate and reallocate the use of water to lands within the district;
(v) provide for and grant the right, upon terms, to transfer water from lands to which water has been allocated to other lands within the district;
(vi) create a lien, as provided in this part, upon land to which the use of water is transferred;
(vii) discharge a lien from land to which a lien has attached; and
(viii) subject to Subsection (8)(b), enter into a written contract for the sale, lease, or other disposition of the use of water.
(b)
(i) A contract under Subsection (8)(a)(viii) may provide for the use of water perpetually or for a specified term.
(ii)
(A) If a contract under Subsection (8)(a)(viii) makes water available to the purchasing party without regard to actual taking or use, the board may require that the purchasing party give security for the payment to be made under the contract, unless the contract requires the purchasing party to pay for certain specified annual minimums.
(B) The security requirement under Subsection (8)(b)(ii)(A) in a contract with a public entity may be met by including in the contract a provision for the public entity's levy of a special assessment to make annual payments to the district.
(1) Except as provided in Subsection (2), and subject to Subsection (3) and Section 17B-2a-1009, the property tax levy of a water conservancy district for all purposes may not exceed:
(a) .0001 per dollar of taxable value of taxable property in the district, before the earliest of:
(i) the planning or design of works;
(ii) the acquisition of the site or right-of-way on which the works will be constructed; or
(iii) the commencement of construction of the works; and
(b) .0002 per dollar of taxable value of taxable property in the district, after the earliest of the events listed in Subsection (1)(a).
(2) Subject to Subsection (3) and Section 17B-2a-1009:
(a) in a district that contains land located within the Lower Colorado River Basin, the levy after the earliest of the events listed in Subsection (1)(a) may be increased to a maximum of .001 per dollar of taxable value of taxable property in the district; and
(b) in a district to be served under a contract, water appropriation, water allotment, or otherwise by water apportioned by the Colorado River Compact to the Upper Basin, the levy after the earliest of the events listed in Subsection (1)(a) may be increased to a maximum of .0004 per dollar of taxable value of taxable property.
(3) A water conservancy district may impose an additional property tax levy, not to exceed .0001 per dollar of taxable value of taxable property in the district, if the additional levy is necessary to provide adequate funds to pay maturing bonds or other debts of the district.
(1) As used in this section:
(a) "Assessed land" means:
(i) for a contract assessment under a water contract with a private water user, the land owned by the private water user that receives the beneficial use of water under the water contract; or
(ii) for a contract assessment under a water contract with a public water user, the land within the boundaries of the public water user that is within the boundaries of the water conservancy district and that receives the beneficial use of water under the water contract.
(b) "Contract assessment" means an assessment levied as provided in this section by a water conservancy district on assessed land.
(c) "Governing body" means:
(i) for a county, city, or town, the legislative body of the county, city, or town;
(ii) for a special district, the board of trustees of the special district;
(iii) for a special service district:
(A) the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or
(B) the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301; and
(iv) for any other political subdivision of the state, the person or body with authority to govern the affairs of the political subdivision.
(d) "Petitioner" means a private petitioner or a public petitioner.
(e) "Private petitioner" means an owner of land within a water conservancy district who submits a petition to a water conservancy district under Subsection (3) to enter into a water contract with the district.
(f) "Private water user" means an owner of land within a water conservancy district who enters into a water contract with the district.
(g) "Public petitioner" means a political subdivision of the state:
(i) whose territory is partly or entirely within the boundaries of a water conservancy district; and
(ii) that submits a petition to a water conservancy district under Subsection (3) to enter into a water contract with the district.
(h) "Public water user" means a political subdivision of the state:
(i) whose territory is partly or entirely within the boundaries of a water conservancy district; and
(ii) that enters into a water contract with the district.
(i) "Water contract" means a contract between a water conservancy district and a private water user or a public water user under which the water user purchases, leases, or otherwise acquires the beneficial use of water from the water conservancy district for the benefit of:
(i) land owned by the private water user; or
(ii) land within the public water user's boundaries that is also within the boundaries of the water conservancy district.
(j) "Water user" means a private water user or a public water user.
(2) A water conservancy district may levy a contract assessment as provided in this section.
(3)
(a) The governing body of a public petitioner may authorize its chief executive officer to submit a written petition on behalf of the public petitioner to a water conservancy district requesting to enter into a water contract.
(b) A private petitioner may submit a written petition to a water conservancy district requesting to enter into a water contract.
(c) Each petition under this Subsection (3) shall include:
(i) the petitioner's name;
(ii) the quantity of water the petitioner desires to purchase or otherwise acquire;
(iii) a description of the land upon which the water will be used;
(iv) the price to be paid for the water;
(v) the amount of any service, turnout, connection, distribution system, or other charge to be paid;
(vi) whether payment will be made in cash or annual installments;
(vii) a provision requiring the contract assessment to become a lien on the land for which the water is petitioned and is to be allotted; and
(viii) an agreement that the petitioner is bound by the provisions of this part and the rules and regulations of the water conservancy district board of trustees.
(4)
(a) If the board of a water conservancy district desires to consider a petition submitted by a petitioner under Subsection (3), the board shall:
(i) provide notice of the petition and of the hearing required under Subsection (4)(a)(ii) for the water conservancy district, as a class A notice under Section 63G-30-102, for at least two successive weeks immediately before the date of the hearing; and
(ii) hold a public hearing on the petition.
(b) Each notice under Subsection (4)(a)(i) shall:
(i) state that a petition has been filed and that the district is considering levying a contract assessment; and
(ii) give the date, time, and place of the hearing required under Subsection (4)(a)(ii).
(c)
(i) At each hearing required under Subsection (4)(a)(ii), the board of trustees of the water conservancy district shall:
(A) allow any interested person to appear and explain why the petition should not be granted; and
(B) consider each written objection to the granting of the petition that the board receives before or at the hearing.
(ii) The board of trustees may adjourn and reconvene the hearing as the board considers appropriate.
(d)
(i) Any interested person may file with the board of the water conservancy district, at or before the hearing under Subsection (4)(a)(ii), a written objection to the district's granting a petition.
(ii) Each person who fails to submit a written objection within the time provided under Subsection (4)(d)(i) is considered to have consented to the district's granting the petition and levying a contract assessment.
(5) After holding a public hearing as required under Subsection (4)(a)(ii), the board of trustees of a water conservancy district may:
(a) deny the petition; or
(b) grant the petition, if the board considers granting the petition to be in the best interests of the district.
(6) The board of a water conservancy district that grants a petition under this section may:
(a) make an allotment of water for the benefit of assessed land;
(b) authorize any necessary construction to provide for the use of water upon the terms and conditions stated in the water contract;
(c) divide the district into units and fix a different rate for water purchased or otherwise acquired and for other charges within each unit, if the rates and charges are equitable, although not equal and uniform, for similar classes of services throughout the district; and
(d) levy a contract assessment on assessed land.
(7)
(a) The board of trustees of each water conservancy district that levies a contract assessment under this section shall:
(i) cause a certified copy of the resolution, ordinance, or order levying the assessment to be recorded in the office of the recorder of each county in which assessed land is located; and
(ii) on or before July 1 of each year after levying the contract assessment, certify to the auditor of each county in which assessed land is located the amount of the contract assessment.
(b) Upon the recording of the resolution, ordinance, or order, in accordance with Subsection (7)(a)(i):
(i) the contract assessment associated with allotting water to the assessed land under the water contract becomes a political subdivision lien, as that term is defined in Section 11-60-102, on the assessed land, in accordance with Title 11, Chapter 60, Political Subdivision Lien Authority, as of the effective date of the resolution, ordinance, or order; and
(ii)
(A) the board of trustees of the water conservancy district shall certify the amount of the assessment to the county treasurer; and
(B) the county treasurer shall include the certified amount on the property tax notice required by Section 59-2-1317 for that year.
(c)
(i) Each county in which assessed land is located shall collect the contract assessment in the same manner as taxes levied by the county.
(ii) If the amount of a contract assessment levied under this section is not paid in full in a given year:
(A) by September 15, the governing body of the water conservancy district that levies the contract assessment shall certify any unpaid amount to the treasurer of the county in which the property is located; and
(B) the county treasurer shall include the certified amount on the property tax notice required by Section 59-2-1317 for that year.
(8)
(a) The board of trustees of each water conservancy district that levies a contract assessment under this section shall:
(i) hold a public hearing, before August 8 of each year in which a contract assessment is levied, to hear and consider objections filed under Subsection (8)(b); and
(ii) publish a notice:
(A) for the water conservancy district, as a class A notice under Section 63G-30-102, for at least the two consecutive weeks before the day of the public hearing; and
(B) that contains a general description of the assessed land, the amount of the contract assessment, and the time and place of the public hearing under Subsection (8)(a)(i).
(b) An owner of assessed land within the water conservancy district who believes that the contract assessment on the owner's land is excessive, erroneous, or illegal may, before the hearing under Subsection (8)(a)(i), file with the board of trustees a verified, written objection to the assessment, stating the grounds for the objection.
(c)
(i) At each hearing under Subsection (8)(a)(i), the board of trustees shall hear and consider the evidence and arguments supporting each objection.
(ii) After hearing and considering the evidence and arguments supporting an objection, the board of trustees:
(A) shall enter a written order, stating its decision; and
(B) may modify the assessment.
(d)
(i) An owner of assessed land may file a petition in district court seeking review of a board of trustees' order under Subsection (8)(c)(ii)(A).
(ii) Each petition under Subsection (8)(d)(i) shall:
(A) be filed within 30 days after the board enters its written order;
(B) state specifically the part of the board's order for which review is sought; and
(C) be accompanied by a bond with good and sufficient security in an amount not exceeding $200, as determined by the court clerk.
(iii) If more than one owner of assessed land seeks review, the court may, upon a showing that the reviews may be consolidated without injury to anyone's interests, consolidate the reviews and hear them together.
(iv) The court shall act as quickly as possible after a petition is filed.
(v) A court may not disturb a board of trustees' order unless the court finds that the contract assessment on the petitioner's assessed land is manifestly disproportionate to assessments imposed upon other land in the district.
(e) If no petition under Subsection (8)(d) is timely filed, the contract assessment is conclusively considered to have been made in proportion to the benefits conferred on the land in the district.
(9) Each resolution, ordinance, or order under which a water conservancy district levied a Class B, Class C, or Class D assessment before April 30, 2007, under the law in effect at the time of the levy is validated, ratified, and confirmed, and a water conservancy district may continue to levy the assessment according to the terms of the resolution, ordinance, or order.
(10) A contract assessment is not a levy of an ad valorem property tax and is not subject to the limits stated in Section 17B-2a-1006.
Each water conservancy subdistrict, created and operating under the law in effect before April 30, 2007 and existing on April 30, 2007, shall, on that date, become a water conservancy district.
(1) As used in this section:
(a) "Appointed board of trustees" means a board of trustees of a water conservancy district that includes a member who is appointed to the board of trustees in accordance with this part.
(b) "Elected board of trustees" means a board of trustees of a water conservancy district that consists entirely of members who are elected to the board of trustees in accordance with this part.
(2)
(a) For a taxable year beginning on or after January 1, 2018, a water conservancy district may not collect property tax revenue that would exceed the certified tax rate under Section 59-2-924 unless the proposed tax levy has been previously approved by:
(i) an elected board of trustees;
(ii) subject to Subsection (2)(b), an appointed board of trustees;
(iii) a majority of the water conservancy district voters who vote in an election held for that purpose on a date specified in Section 20A-1-204; or
(iv) for a district described in Subsection 17B-2a-1005(2)(b), the appointing authority.
(b) For a water conservancy district with an appointed board of trustees, each appointed member of the board of trustees shall comply with the trustee reporting requirements described in Section 17B-1-1003 before the water conservancy district may impose a property tax levy that exceeds the certified tax rate.
(1) As used in this section:
(a) "Capital asset" means one of the following that is:
(i) a significant investment or an essential component necessary to provide a service, including:
(A) a facility;
(B) infrastructure, whether above or below ground level;
(C) equipment; or
(D) a communications network; and
(ii) owned by a qualified water conservancy district.
(b) "Policy" means the capital asset assessment, maintenance, and replacement policy required under Subsection (2).
(c) "Qualified capital asset" means a capital asset that is:
(i) identified in a policy in accordance with Subsection (2)(b); and
(ii) inventoried, assessed, funded, or otherwise subject to a qualified water conservancy's policy in accordance with this section.
(d) "Qualified water conservancy district" means a water conservancy district with an annual operating budget greater than $5,000,000.
(2)
(a) Each qualified water conservancy district shall adopt a policy for the assessment, maintenance, and replacement of capital assets that are qualified capital assets.
(b) The policy shall adopt language that defines in general or specific terms which capital assets are qualified capital assets.
(3) The policy shall require the qualified water conservancy district to:
(a) complete an inventory of each qualified capital asset, including for each qualified capital asset:
(i) an engineering description;
(ii) location;
(iii) physical dimensions and condition;
(iv) documentation of the qualified capital asset's standard features;
(v) warranties;
(vi) maintenance history;
(vii) replacement costs;
(viii) market value;
(ix) original useful life; and
(x) remaining useful life; and
(b) assess the physical condition of the qualified capital asset in accordance with a method established under Subsection (4)(a)(i) at least every five years.
(4)
(a) The policy shall establish:
(i) a method to assess the physical condition of each qualified capital asset;
(ii) performance and condition standards for each qualified capital asset;
(iii) a program for monitoring and reporting the qualified water conservancy district's application of and compliance with the policy, including a comparison of each qualified capital asset's current status and targeted standards for that qualified capital asset as set forth in the policy;
(iv) a process for the qualified water conservancy district to evaluate existing qualified capital assets for efficiency and expected service delivery; and
(v) objective criteria for the qualified water conservancy district to prioritize maintenance or replacement of qualified capital assets.
(b) A performance and condition standard described in Subsection (4)(a)(ii) may be:
(i) a mandated safety standard;
(ii) a standard condition of receiving federal, state, or local funding; or
(iii) an applicable engineering or other professional standard.
(5) As part of the policy, the qualified water conservancy district shall adopt financial guidelines to dedicate revenue to a priority qualified capital asset identified under Subsection (4)(a)(v) in accordance with a multiyear qualified capital plan described in Subsection (6)(a).
(6)
(a) Each qualified water conservancy district shall adopt a multiyear qualified capital asset plan.
(b) Each qualified water conservancy district shall:
(i) include criteria and guidelines in the policy for allocating sufficient funds in a multiyear qualified capital asset plan and in the qualified water conservancy district's annual operating budget for assessing, maintaining, repairing, and replacing qualified capital assets;
(ii) establish an ongoing source of funds in the multiyear qualified capital asset plan and each annual operating budget for repair and replacement costs of qualified capital assets in accordance with the policy; and
(iii) establish a repair and replacement reserve for capital projects in its capital projects fund and allocate from the repair and replacement reserve subject to Subsection 17B-1-612(5).
(c) The board of trustees of a qualified water conservancy district shall adopt an annual operating budget that includes ongoing funding described in Subsection (6)(b)(ii).
(7)
(a) A qualified water conservancy district shall submit a report of the qualified water conservancy district's qualified capital asset facilities to the director of the Division of Water Resources, established in Section 73-10-18, no later than December 31, 2017, and no less than every five years thereafter.
(b) The qualified capital asset facilities report required under Subsection (7)(a) shall:
(i) describe the proposed replacement time frame for each qualified capital asset;
(ii) account for each funding source for the qualified capital asset and include any restrictions a funding source may impose on the use or disposal of qualified capital assets;
(iii) account for any change in a qualified capital asset's value since the last qualified capital asset facilities report submitted by the qualified water conservancy district; and
(iv) provide a statement of actual expenditures and performance data for each qualified capital asset compared to budgeted expenditures.
This part is known as the "Municipal Services District Act."
As used in this part, "municipal services" means one or more of the services identified in Section 17-63-101, 17-78-501, or 17B-1-202.
(1)
(a) Except as provided in Subsection (1)(b) and Section 17B-2a-1110, a municipal services district may be created only in unincorporated areas in a county of the first class.
(b) Subject to Subsection (1)(c), after the initial creation of a municipal services district, an area may be annexed into the municipal services district in accordance with Chapter 1, Part 4, Annexation, whether that area is unincorporated or incorporated.
(c) An area annexed under Subsection (1)(b) may not be located outside of the originating county of the first class.
(2) Each municipal services district is governed by the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(3) This part applies only to a municipal services district.
(4) A municipal services district is not subject to the provisions of any other part of this chapter.
(5) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provisions in this part govern.
(1) In addition to the powers conferred on a municipal services district under Section 17B-1-103, a municipal services district may:
(a) notwithstanding Subsection 17B-1-202(3), provide no more than six municipal services;
(b) assist a municipality or a county located within a municipal services district by providing staffing and administrative services, including:
(i) human resources staffing and services;
(ii) finance and budgeting staffing and services;
(iii) information technology staffing and services; and
(iv) treasurer, recorder or clerk, surveyor, engineer, or auditor services; and
(c) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district.
(2) A municipal services district that includes a converted municipality, as defined in Section 10-1-201.5, shall, upon request by the converted municipality, collect on behalf of the converted municipality all fines, fees, charges, levies, and other payments imposed by the converted municipality.
(1) Notwithstanding any other provision of law, the process to create a municipal services district is initiated by a resolution proposing the creation of the municipal services district, adopted by the legislative body of the county whose unincorporated area includes any of the proposed municipal services district.
(2) The resolution described in Subsection (1) shall comply, as applicable, with the provisions of Subsection 17B-1-203(2)(a).
(3) The legislative body shall comply with the requirements of Sections 17B-1-210 through 17B-1-212.
(1) Notwithstanding any other provision of law regarding the membership of a special district board of trustees, the initial board of trustees of a municipal services district shall consist of the county legislative body.
(2)
(a) If, after the initial creation of a municipal services district, an area within the district is incorporated as a municipality as defined in Section 10-1-104 and the area is not withdrawn from the district in accordance with Section 17B-1-502 or 17B-1-505, or an area within the municipality is annexed into the municipal services district in accordance with Section 17B-2a-1103, the district's board of trustees shall be as follows:
(i) subject to Subsection (2)(b), a member of that municipality's governing body;
(ii) one member of the county council of the county in which the municipal services district is located; and
(iii) the total number of board members is not required to be an odd number.
(b) A member described in Subsection (2)(a)(i) shall be designated by the municipal legislative body.
(c) A municipal or county legislative body may appoint a member of the municipality's or the county's legislative body to act as an alternate member of the municipal services district board of trustees, to serve in place of the regular board member selected pursuant to Subsection (2)(a) or (b) during any period of time when the regular board member is absent, unable, or refuses to act as a member of the municipal services district board of trustees, provided that:
(i) the municipal or county legislative body adopts a resolution to make the appointment;
(ii) the alternate member meets all applicable statutory requirements to serve on the board of trustees;
(iii) the alternate member takes the oath of office and is covered by crime insurance as provided in Section 17B-1-303; and
(iv) the term of the alternate member will be identical to that of the board member described in Subsection (2)(a) who is appointed by the municipality's or the county's legislative body.
(d) Should a member of the board of trustees who is appointed pursuant to Subsection (2)(a) or (b) and the alternate board member selected as provided in Subsection (2)(c) both be present at a meeting or other official event of the municipal services district, the alternate board member may not act as a member of the board of trustees during the meeting or event.
(e) An alternate board member designated as provided in Subsection (2)(c) may not chair a meeting of the board of trustees unless only alternate board members are present at the anchor location.
(f) Compensation under Section 17B-1-307 may equitably be apportioned between a regular board member and an alternate board member.
(3)
(a) As used in this Subsection (3):
(i) "District participant" means:
(A) the county that created a municipal services district under Section 17B-2a-1105; or
(B) a municipality that is part of the municipal services district.
(ii) "Proportionate amount" means, for each district participant, the amount that is attributable to the district participant in proportion to the total amount attributable to all district participants.
(iii) "Trigger date" means the earliest of:
(A) the effective date of an annexation of an unincorporated island, as defined in Section 10-2-814, that occurs under Title 10, Chapter 2, Part 8, Annexation, excluding an automatic annexation under Section 10-2-814;
(B) the effective date of an incorporation of a community council area, as defined in Section 10-2a-102; and
(C) the effective date of an automatic annexation under Section 10-2-814.
(b) For a board of trustees described in Subsection (2), each board member's vote is weighted:
(i) until the trigger date, using the proportion of the municipal services district population that resides:
(A) for each member described in Subsection (2)(a)(i), within that member's municipality; and
(B) for the member described in Subsection (2)(a)(ii), within the unincorporated county; and
(ii) beginning the trigger date:
(A) 60% according to the proportionate amount of the combined total of sales tax revenue and revenue for B and C roads under Section 72-2-108;
(B) 30% according to the proportionate amount of weighted mileage, as defined in Section 72-2-108; and
(C) 10% according to the proportionate amount of population.
(4) The board may adopt a resolution providing for future board members to be appointed, as provided in Section 17B-1-304, or elected, as provided in Section 17B-1-306.
(5) Notwithstanding Subsections 17B-1-309(1) or 17B-1-310(1), the board of trustees may adopt a resolution to determine the internal governance of the board.
(6) The municipal services district and the county may enter into an agreement for the provision of legal services to the municipal services district.
(1) As used in this section, "rural real property" means an area:
(a) zoned primarily for manufacturing, commercial, or agricultural purposes; and
(b) that does not include residential units with a density greater than one unit per acre.
(2) Unless an owner gives written consent, rural real property may not be included in a municipal services district if the rural real property:
(a) consists of 1,500 or more contiguous acres of rural real property consisting of one or more tax parcels;
(b) is not contiguous to but is used in connection with rural real property that consists of 1,500 acres or more contiguous acres of real property consisting of one or more tax parcels;
(c) is owned, managed, or controlled by a person, company, or association, including a parent, subsidiary, or affiliate related to the owner of 1,500 or more contiguous acres of rural real property consisting of one or more tax parcels; or
(d) is located in whole or in part in one of the following as defined in Section 17-41-101:
(i) an agricultural protection area;
(ii) a mining protection area; or
(iii) an industrial protection area.
(3)
(a) Subject to Subsection (3)(b), an owner of rural real property may withdraw consent to inclusion in a municipal services district at any time.
(b) An owner may withdraw consent by submitting a written and signed request to the municipal services district board of trustees that:
(i) identifies and describes the rural real property to be withdrawn; and
(ii) requests that the rural real property be withdrawn.
(c)
(i) No later than 30 days after the day on which the municipal services district board of trustees receives a request that complies with Subsection (3)(b), the board shall adopt a resolution withdrawing the rural real property as identified and described in the request.
(ii) The rural real property is withdrawn from and no longer in the jurisdiction of the municipal services district upon adoption of the resolution.
(1)
(a) A municipality located in whole or in part within a municipal services district shall remit to the municipal services district:
(i) an amount equal to the amount the municipality receives under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
(ii) an amount equal to the amount of transportation funds the municipality receives under Section 72-2-108.
(b) The municipality shall remit to the municipal services district the amounts required in Subsection (1)(a) within 30 days after the day on which the municipality receives the funds identified in Subsections (1)(a)(i) and (1)(a)(ii).
(2) For purposes of Subsection (1)(a)(i), the amount of local sales tax a municipality is required to remit to a municipal services district is an amount:
(a) determined after subtracting amounts required under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act, to be deducted from the amount a municipality would otherwise receive under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
(b) representative of only those taxes collected in the area of the municipality that is also located within the municipal services district.
(3) For purposes of Subsection (1)(a)(ii), the amount of transportation funds a municipality is required to remit to a municipal services district is an amount equal to the amount of class B and class C road miles in that part of the municipality located within the municipal services district divided by the total class B and class C road miles in the municipality.
(4) If the municipal legislative body of a municipality located in whole or in part within a municipal services district adopts and delivers a resolution to withdraw in accordance with Subsection 17B-1-502(3)(a)(iii), the municipality shall only remit to the municipal services district the amounts described in Subsection (1) that relate to the period that the municipality is in the municipal services district, regardless of when the municipality receives those amounts.
(1) A county or, subject to Section 17B-2a-1108, a municipality involved in the establishment or operation of a municipal services district may fund the operation and maintenance of the district through the sharing of sales tax and other revenue for district purposes.
(2) A municipal services district may use sales tax or other revenue that the district receives from a county or a municipality under Subsection (1) to fund expenses and activities of a county or municipality that is part of the district.
(1)
(a) A municipality may withdraw from a municipal services district in accordance with Section 17B-1-502 or 17B-1-505, as applicable, and the requirements of this section.
(b) If a municipality engages a feasibility consultant to conduct a feasibility study under Subsection (2)(a), the 180 days described in Subsection 17B-1-502(3)(a)(iii)(A) is tolled from the day that the municipality engages the feasibility consultant to the day on which the municipality holds the final public hearing under Subsection (5).
(2)
(a) If a municipality decides to withdraw from a municipal services district, the municipal legislative body shall, before adopting a resolution under Section 17B-1-502 or 17B-1-505, as applicable, engage a feasibility consultant to conduct a feasibility study.
(b) The feasibility consultant shall be chosen:
(i) by the municipal legislative body; and
(ii) in accordance with applicable municipal procurement procedures.
(3) The municipal legislative body shall require the feasibility consultant to:
(a) complete the feasibility study and submit the written results to the municipal legislative body before the council adopts a resolution under Section 17B-1-502;
(b) submit with the full written results of the feasibility study a summary of the results no longer than one page in length; and
(c) attend the public hearings under Subsection (5).
(4)
(a) The feasibility study shall consider:
(i) population and population density within the withdrawing municipality;
(ii) current and five-year projections of demographics and economic base in the withdrawing municipality, including household size and income, commercial and industrial development, and public facilities;
(iii) projected growth in the withdrawing municipality during the next five years;
(iv) subject to Subsection (4)(b), the present and five-year projections of the cost, including overhead, of municipal services in the withdrawing municipality;
(v) assuming the same tax categories and tax rates as currently imposed by the municipal services district and all other current service providers, the present and five-year projected revenue for the withdrawing municipality;
(vi) a projection of any new taxes per household that may be levied within the withdrawing municipality within five years of the withdrawal; and
(vii) the fiscal impact on other municipalities serviced by the municipal services district.
(b)
(i) For purposes of Subsection (4)(a)(iv), the feasibility consultant shall assume a level and quality of municipal services to be provided to the withdrawing municipality in the future that fairly and reasonably approximates the level and quality of municipal services being provided to the withdrawing municipality at the time of the feasibility study.
(ii) In determining the present cost of a municipal service, the feasibility consultant shall consider:
(A) the amount it would cost the withdrawing municipality to provide municipal services for the first five years after withdrawing; and
(B) the municipal services district's present and five-year projected cost of providing municipal services.
(iii) The costs calculated under Subsection (4)(a)(iv) shall take into account inflation and anticipated growth.
(5) If the results of the feasibility study meet the requirements of Subsection (4), the municipal legislative body shall, at its next regular meeting after receipt of the results of the feasibility study, schedule at least one public hearing to be held:
(a) within the following 60 days; and
(b) for the purpose of allowing:
(i) the feasibility consultant to present the results of the study; and
(ii) the public to become informed about the feasibility study results, including the requirement that if the municipality withdraws from the municipal services district, the municipality must comply with Subsection (9), and to ask questions about those results of the feasibility consultant.
(6) At a public hearing described in Subsection (5), the municipal legislative body shall:
(a) provide a copy of the feasibility study for public review; and
(b) allow the public to express its views about the proposed withdrawal from the municipal services district.
(7)
(a) The municipal clerk or recorder shall publish notice of the public hearings required under Subsection (5) for the municipality, as a class A notice under Section 63G-30-102, for at least three weeks before the day of the first hearing described in Subsection (5).
(b) The notice under Subsection (7)(a) shall include the feasibility study summary and shall indicate that a full copy of the study is available for inspection and copying at the office of the municipal clerk or recorder.
(8) At a public meeting held after the public hearing required under Subsection (5), the municipal legislative body may adopt a resolution under Section 17B-1-502 or 17B-1-505, as applicable, if the municipality is in compliance with the other requirements of that section.
(9) The municipality shall pay revenues in excess of 5% to the municipal services district for 10 years beginning on the next fiscal year immediately following the municipal legislative body adoption of a resolution or an ordinance to withdraw under Section 17B-1-502 or 17B-1-505 if the results of the feasibility study show that the average annual amount of revenue under Subsection (4)(a)(v) exceed the average annual amount of cost under Subsection (4)(a)(iv) by more than 5%.
If a municipality after the 180-day period described in Subsection 17B-1-502(3)(a)(iii)(A) changes form of government in accordance with Title 10, Chapter 3b, Part 6, Changing to Another Form of Municipal Government, the municipality under the new form of government may withdraw from a municipal services district only in accordance with the provisions of Section 17B-1-505.
The board of trustees shall provide a copy of an accounting report, as defined in Section 51-2a-102, to each political subdivision that is provided municipal services by the municipal services district that is filed with the state auditor on behalf of the municipal services district in accordance with Section 51-2a-203.
(1) "Board" means the board of trustees of the Utah Energy Infrastructure Service District.
(2) "Commission" means the State Finance Review Commission created in Section 63C-25-201.
(3) "Council" means the Utah Energy Council created under Section 79-6-1101.
(4) "District" means the Utah Energy Infrastructure Service District created under Section 17B-2a-1403.
(5) "Electrical Energy Development Investment Fund" means the fund created under Section 79-6-1105.
(6) "Electrical energy development zone" means the same as that term is defined in Section 79-6-102.
(7) "Energy infrastructure facility" means any real or personal property, including land, structures, equipment, water rights, transmission lines, generation assets, storage facilities, and associated improvements, used or useful for the generation, transmission, storage, or delivery of energy, including electricity and natural gas.
(8) "Enterprise fund" means the Energy Infrastructure Enterprise Fund created under Section 17B-2a-1408.
(9) "Operating contract" means a contract between the district and an operator for the management, operation, and maintenance of an energy infrastructure facility owned by the district.
(10) "Operator" means an entity that enters into an operating contract with the district.
(11) "Power purchase agreement" means a contract for the sale of electricity or other energy produced by or transmitted through an energy infrastructure facility controlled or owned by the district.
(12) "Project entity" means the same as that term is defined in Section 11-13-103.
(13) "Project entity asset" means the same as that term is defined in Section 11-13-318.
(14) "Retired project entity asset" means a project entity asset that has been removed from active service before May 6, 2026, by a project entity that the project entity has no intent to return to service.
(15) "Retired project entity asset area" means the land upon which a retired project entity asset is located, together with adjacent land necessary for the operation of that asset.
(16) "Service area" means a geographic area designated by the board under Section 17B-2a-1405 within which the district owns or proposes to facilitate the acquisition or construction of an energy infrastructure facility.
(1) The district is governed by and has the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts, except as otherwise provided in this part.
(2) This part applies only to the district.
(3) The district is not subject to the provisions of any other part of this chapter.
(4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provisions in this part govern.
(5) If there is a conflict between a provision of this part and a provision of Title 10, Utah Municipal Code, or Title 54, Public Utilities, Title 10, Utah Municipal Code, or Title 54, Public Utilities, as applicable, shall govern.
(1) The council may create the Utah Energy Infrastructure Service District by adopting a resolution that:
(a) declares the council's intent to create the district;
(b) describes the service area, including the geographic boundaries of the area within which the district will operate; and
(c) identifies the type of energy infrastructure facility proposed or located within the service area.
(2) No later than 30 days after adopting a resolution under Subsection (1), the council shall file with the lieutenant governor:
(a) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Section 67-1a-6.5; and
(b) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5, depicting the service area boundary.
(3) The district is created and exists as a legal entity upon the lieutenant governor's issuance of a certificate of incorporation under Section 67-1a-6.5.
(4) Upon creation, the district:
(a) is a body politic and corporate with perpetual succession;
(b) is a political subdivision of the state;
(c) is separate and distinct from the state and from any other political subdivision of the state; and
(d) may sue and be sued.
(5) The debts, obligations, and liabilities of the district:
(a) are the debts, obligations, and liabilities of the district alone; and
(b) are not the debts, obligations, or liabilities of the state or any other political subdivision of the state.
(6) Notwithstanding Chapter 1, Part 2, Creation of a Special District, the district:
(a) may only be created as provided in this section; and
(b) is not subject to the petition and creation requirements of Sections 17B-1-203 through 17B-1-214.
(7) Following the issuance of a certificate of incorporation under Subsection (3), the board shall annually register the district with the lieutenant governor in accordance with Section 67-1a-15.
(1) Notwithstanding Chapter 1, Part 3, Board of Trustees, the board of trustees of the district consists of the members of the council appointed under Section 79-6-1102.
(2)
(a) A person serves as a member of the board by virtue of that person's appointment to the council.
(b) Service on the board is concurrent with and coterminous with service on the council.
(3) The co-chairs of the council serve as co-chairs of the board.
(4) A vacancy on the board is filled in the same manner as a vacancy on the council under Section 79-6-1102.
(5) The board shall adopt bylaws governing the conduct of board meetings, quorum requirements, and other procedural matters consistent with this part and Chapter 1, Provisions Applicable to All Special Districts.
(6)
(a) When acting in the capacity of a board member, a council member's fiduciary obligation runs to the district.
(b) Nothing in this section limits a council member's obligations to the council when acting in the capacity of a council member.
(1) The district's service area consists of:
(a) the service area established under Section 17B-2a-1403; and
(b) a retired project entity asset area.
(2) The district may own and operate energy infrastructure facilities only within a designated service area.
(3) Once the service area is established, the district may not:
(a) annex any new land into the service area; or
(b) establish a new service area.
(1) Notwithstanding Subsection 17B-1-103(4) and Section 17B-1-202, and in addition to the powers conferred on a special district under Section 17B-1-103, the district may:
(a) acquire by purchase, construction, gift, or any combination of these methods, and own, operate, maintain, improve, and dispose of energy infrastructure facilities within a designated service area;
(b) enter into operating contracts with operators for the management, operation, and maintenance of district-owned energy infrastructure facilities in accordance with Section 17B-2a-1409;
(c) enter into power purchase agreements for the sale of electricity or other energy produced by or transmitted through district-owned facilities;
(d) issue revenue bonds in accordance with Section 17B-2a-1407 and Chapter 1, Part 11, Special District Bonds;
(e) enter into contracts, agreements, and other instruments necessary or convenient to carry out the purposes of the district;
(f) acquire water rights, air rights, and other real and personal property rights necessary or convenient to the ownership or operation of energy infrastructure facilities within the service area;
(g) accept grants, gifts, loans, and other financial assistance from federal, state, and local governmental entities;
(h) employ staff and engage financial advisors, engineers, and other professional services necessary to carry out the purposes of the district;
(i) impose fees and charges for services provided by the district in accordance with Chapter 1, Part 9, Collection of Service Fees and Charges;
(j) impose penalties on an operator for non-compliance with the terms of an operating contract, as specified in the operating contract; and
(k) do all other things necessary or convenient to carry out the purposes of this part.
(2) Before constructing or operating an energy infrastructure facility within the boundaries of a city or town, the district shall obtain the consent of the local authorities who have control of any street or highway proposed to be occupied by the facility, in accordance with Utah Constitution, Article XI, Section 9.
(3)
(a) The district is not an electric service provider and may not sell, distribute, or deliver electricity directly to retail customers.
(b) Neither the district nor the board may provide electric service within the certificated service territory of any entity that has been authorized to provide retail electric service in that territory pursuant to:
(i) a certificate of public convenience and necessity issued by the Public Service Commission under Title 54, Public Utilities;
(ii) a franchise, ordinance, or other authorization granted under Title 10, Utah Municipal Code; or
(iii) any other provision of state law authorizing an entity to provide retail electric service within a defined geographic area.
(c) Nothing in this part shall be construed to limit, diminish, or otherwise affect the certificated service territory of an entity that has been authorized to provide retail electric service in the state.
(1) The district may issue revenue bonds to finance the acquisition, construction, improvement, or equipping of energy infrastructure facilities within a designated service area.
(2)
(a) Revenue bonds issued under this section:
(i) are limited obligations of the district payable solely from revenues deposited into the enterprise fund described in Section 17B-2a-1408;
(ii) do not constitute a general obligation or liability of, or a charge against the general credit or taxing power of, the state or any political subdivision of the state;
(iii) are not subject to the debt limitations of Utah Constitution, Article XIV; and
(iv) shall state on the face of each bond the limitation described in Subsection (2)(a)(ii).
(b) Notwithstanding the requirements in Subsection (2)(a)(iv), the failure to state on the face on the bond the limitation described in (2)(a)(ii) does not have any impact on the limited obligation described in this section.
(3)
(a) The commission shall review and may approve a bond before the district may issue a bond.
(b) The commission may not approve issuance of a bond described in Subsection (3)(a) unless the execution and terms of the bond comply with state law.
(c) If, after review, the commission approves a bond described in Subsection (3)(a), the district:
(i) may not change before issuing the bond the terms of the bond that were reviewed by the commission if the change is outside the approved parameters and intended purposes; and
(ii) is under no obligation to issue the bond.
(d) A member of the commission who approves a bond under Subsection (3)(a) is not personally liable on the bond.
(e) The approval of a bond under Subsection (3)(a):
(i) is not an obligation of the state; and
(ii) is not an act that:
(A) lends the state's credit; or
(B) constitutes indebtedness within the meaning of any constitutional or statutory debt limitation.
(4) The district may pledge to the payment of revenue bonds any legally available revenues of the district.
(5) The district may establish reserve funds, debt service funds, and other funds as required by bond indentures or trust agreements securing revenue bonds issued under this section.
(6) The district may issue refunding bonds to refund outstanding revenue bonds issued under this section.
(7) Notwithstanding Chapter 1, Part 11, Special District Bonds, the district may not issue general obligation bonds.
(1) In addition to the requirements of Chapter 1, Part 6, Fiscal Procedures for Special Districts, the board shall establish and maintain an enterprise fund known as the Energy Infrastructure Enterprise Fund.
(2) The following shall be deposited into the enterprise fund:
(a) proceeds of revenue bonds issued under Section 17B-2a-1407, pending application to authorized purposes including a bond project fund to ensure the appropriate use of such proceeds;
(b) payments received by the district under operating contracts;
(c) payments received by the district under power purchase agreements; and
(d) any other revenues received by or pledged to the district.
(3) Revenues in the enterprise fund shall be used solely for the purposes of the district and applied in the order prescribed by the district and in compliance with any bond contract approved by the district.
(1) The district may enter into operating contracts with operators for the management, operation, and maintenance of district-owned energy infrastructure facilities within the service area described in Section 17B-2a-1405.
(2) An operating contract shall:
(a) require the operator to manage, operate, and maintain the facility in accordance with applicable law and prudent industry standards;
(b) specify the payments the operator shall make to the district, which shall be structured to cover, at minimum, the district's debt service obligations and operating costs attributable to the facility;
(c) specify the term of the contract, which may not exceed 40 years;
(d) provide that upon expiration or termination of the contract full operational control of the facility returns to the district free of any claim of the operator; and
(e) specify the conditions under which the contract may be terminated or renewed.
(3) An operating contract entered into under this section:
(a) is a service agreement; and
(b) does not convey a leasehold interest, ownership interest, or any other property interest in the facility to the operator.
(4) The district shall require each operator to maintain:
(a) adequate insurance coverage as determined by the board; and
(b) where appropriate, performance bonds or other financial security acceptable to the board to protect the district's interests under the operating contract.
(5) The board shall structure each operating contract to ensure that each operating contract complies with applicable federal tax law governing qualified management contracts as may be required by a federally tax-exempt revenue bond.
(1) All property and assets of the district are exempt from taxation as provided in Section 17B-1-116.
(2) An operator using district-owned facilities is subject to the privilege tax imposed under Title 59, Chapter 4, Privilege Tax.
(3) The district may levy a privilege tax within the service area for district operations and maintenance expenses at a rate not to exceed 0.0023.
(4) Notwithstanding this section, nothing prohibits the district from agreeing to a payment in lieu of taxes in the board's sole discretion.
(1) The board may adopt a dissolution resolution if:
(a) the district has ceased operations in the service area; and
(b) the district has no outstanding debt or other obligations.
(2) The Legislature may dissolve the district by joint resolution.
(3) Upon dissolution of the district:
(a) all outstanding revenue bonds shall be defeased or retired in accordance with their terms before dissolution is effective; and
(b) all remaining assets of the district shall be transferred to the state.
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