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H.B. 155

             1     

ANNEXATION AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Marda Dillree

             5      This act modifies provisions of the Utah Municipal Code relating to municipal annexations.
             6      The act establishes an annexation procedure for counties of the second, third, fourth, fifth,
             7      and sixth classes that is different from that for counties of the first class. The act requires
             8      municipalities within counties of the second, third, fourth, fifth, and sixth classes to adopt
             9      an annexation policy plan before future annexations after a certain date may occur. The act
             10      eliminates the feasibility study requirement for annexations of areas in a county of the
             11      second, third, fourth, fifth, and sixth classes. The act allows an owner of public property to
             12      file an annexation petition. The act also makes technical changes.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      AMENDS:
             15          10-2-401, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             16          10-2-402, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             17          10-2-403, as last amended by Chapter 205, Laws of Utah 1999
             18          10-2-405, as last amended by Chapter 193, Laws of Utah 2000
             19          10-2-406, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             20          10-2-407, as last amended by Chapter 193, Laws of Utah 2000
             21          10-2-408, as last amended by Chapter 193, Laws of Utah 2000
             22          10-2-409, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             23          10-2-410, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             24          10-2-411, as last amended by Chapter 21, Laws of Utah 1999
             25          10-2-412, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             26          10-2-413, as last amended by Chapter 21, Laws of Utah 1999
             27          10-2-414, as last amended by Chapter 21, Laws of Utah 1999


             28          10-2-415, as last amended by Chapter 21, Laws of Utah 1999
             29          10-2-416, as last amended by Chapter 1, Laws of Utah 2000
             30          10-2-421, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             31          10-2-426, as enacted by Chapter 337, Laws of Utah 1998
             32      ENACTS:
             33          10-2-401.5, Utah Code Annotated 1953
             34          10-2-409.5, Utah Code Annotated 1953
             35      REPEALS:
             36          10-2-404, as last amended by Chapter 193, Laws of Utah 2000
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 10-2-401 is amended to read:
             39           10-2-401. Definitions -- Property owner provisions.
             40          (1) As used in this part:
             41          (a) "Affected entity" means:
             42          (i) a county in whose unincorporated area the area proposed for annexation is located;
             43          (ii) an independent special district under Title 17A, Chapter 2, Independent Special
             44      Districts, whose boundaries include any part of an area proposed for annexation;
             45          (iii) a school district whose boundaries include any part of an area proposed for
             46      annexation; and
             47          (iv) a municipality whose boundaries are within 1/2 mile of an area proposed for
             48      annexation.
             49          [(a)] (b) "Annexation petition" means a petition under Section 10-2-403 proposing the
             50      annexation to a municipality of a contiguous, unincorporated area that is contiguous to the
             51      municipality.
             52          [(b)] (c) "Commission" means a boundary commission established under Section 10-2-409
             53      for the county in which the property that is proposed for annexation is located.
             53a           h (d) "EXPANSION AREA" MEANS THE UNINCORPORATED AREA THAT IS IDENTIFIED IN AN
             53b      ANNEXATION POLICY PLAN UNDER SECTION 10-2-401.5 AS THE AREA THAT THE MUNICIPALITY
             53c      ANTICIPATES ANNEXING IN THE FUTURE. h
             54          [(c)] h [ (d) ] (e) h "Feasibility consultant" means a person or firm with expertise in the
             54a      processes and
             55      economics of local government.
             56          [(d)] h [ (e) ] (f) h "Municipal selection committee" means a committee in each county
             56a      composed
             57      of the mayor of each municipality within that county.
             58          [(e)] h [ (f) ] (g) h "Private," with respect to real property, means not owned by the United
             58a      States or


             59      any agency of the federal government, the state, a county, a municipality, a school district, a special
             60      district under Title 17A, Special Districts, or any other political subdivision or governmental entity
             61      of the state.
             62           h [ (g) ] (h) h "Specified county" means a county of the second, third, fourth, fifth, or sixth
             62a      class.
             63           h [ (h) ] (i) h "Urban development" means:
             64          (i) a housing development with more than 15 residential units and an average density
             65      greater than one residential unit per acre; or
             66          (ii) a commercial or industrial development for which cost projections exceed $750,000
             67      for all phases.
             68          (2) For purposes of this part:
             69          (a) the owner of real property shall be the record title owner according to the records of
             70      the county recorder on the date of the filing of the petition or protest; and
             71          (b) the value of private real property shall be determined according to the last assessment
             72      roll for county taxes before the filing of the petition or protest.
             73          (3) For purposes of each provision of this part that requires the owners of private real
             74      property covering a percentage or majority of the total private land area within an area to sign a
             75      petition or protest:
             76          (a) a parcel of real property may not be included in the calculation of the required
             77      percentage or majority unless the petition or protest is signed by:
             78          (i) except as provided in Subsection (3)(a)(ii), owners representing a majority ownership
             79      interest in that parcel; or
             80          (ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
             81      of owners of that parcel;
             82          (b) the signature of a person signing a petition or protest in a representative capacity on
             83      behalf of an owner is invalid unless:
             84          (i) the person's representative capacity and the name of the owner the person represents
             85      are indicated on the petition or protest with the person's signature; and
             86          (ii) the person provides documentation accompanying the petition or protest that
             87      substantiates the person's representative capacity; and
             88          (c) subject to Subsection (3)(b), a duly appointed personal representative may sign a
             89      petition or protest on behalf of a deceased owner.


             90          Section 2. Section 10-2-401.5 is enacted to read:
             91          10-2-401.5. Annexation policy plan.
             92          (1) After December 31, 2002, no municipality may annex an unincorporated area located
             93      within a specified county unless the municipality has adopted an annexation policy plan as
             94      provided in this section.
             95          (2) To adopt an annexation policy plan:
             96          (a) the planning commission shall:
             97          (i) prepare a proposed annexation policy plan that complies with Subsection (3);
             98          (ii) hold a public meeting to allow affected entities to examine the proposed annexation
             99      policy plan and to provide input on it;
             100          (iii) provide notice of the public meeting under Subsection (2)(a)(ii) to each affected entity
             101      at least 14 days before the meeting;
             102          (iv) accept and consider any additional written comments from affected entities until ten
             103      days after the public meeting under Subsection (2)(a)(ii);
             104          (v) before holding the public hearing required under Subsection (2)(a)(vi), make any
             105      modifications to the proposed annexation policy plan the planning commission considers
             106      appropriate, based on input provided at or within ten days after the public meeting under
             107      Subsection (2)(a)(ii);
             108          (vi) hold a public hearing on the proposed annexation policy plan;
             109          (vii) provide reasonable public notice, including notice to each affected entity, of the
             110      public hearing required under Subsection (2)(a)(vi) at least 14 days before the date of the hearing;
             111          (viii) make any modifications to the proposed annexation policy plan the planning
             112      commission considers appropriate, based on public input provided at the public hearing; and
             113          (ix) submit its recommended annexation policy plan to the municipal legislative body; and
             114          (b) the municipal legislative body shall:
             115          (i) hold a public hearing on the annexation policy plan recommended by the planning
             116      commission;
             117          (ii) provide reasonable notice, including notice to each affected entity, of the public
             118      hearing at least 14 days before the date of the hearing;
             119          (iii) after the public hearing under Subsection (2)(b)(ii), make any modifications to the
             120      recommended annexation policy plan that the legislative body considers appropriate; and


             121          (iv) adopt the recommended annexation policy plan, with or without modifications.
             122          (3) Each annexation policy plan shall include:
             123          (a) a map of the h [ unincorporated ] EXPANSION h area h [ that the municipality anticipates
             123a      annexing in the
             124      future
] h
, which may include territory located outside the county in which the municipality is
             124a      located;
             125          (b) a statement of the specific criteria that will guide the municipality's decision whether
             126      or not to grant future annexation petitions, addressing matters relevant to those criteria including:
             127          (i) the character of the community;
             128          (ii) the need for municipal services in developed and undeveloped unincorporated areas;
             129          (iii) the municipality's plans for extension of municipal services;
             130          (iv) how the services will be financed;
             131          (v) an estimate of the tax consequences to residents both currently within the municipal
             132      boundaries and in h [ areas that are anticipated to be annexed into the municipality ] THE EXPANSION
             132a      AREA h ; and
             133          (vi) the interests of all affected entities;
             134          (c) justification for excluding from the h EXPANSION h area h [ covered by the annexation
             134a      policy plan ] h any area
             135      containing urban development within 1/2 mile of the municipality's boundary; and
             136          (d) a statement addressing any comments made by affected entities at or within ten days
             137      after the public meeting under Subsection (2)(a)(ii).
             138          (4) In developing, considering, and adopting an annexation policy plan, the planning
             139      commission and municipal legislative body shall:
             140          (a) attempt to avoid gaps between or overlaps with the h [ annexation policy plans ]
             140a      EXPANSION AREAS h of other
             141      municipalities;
             142          (b) consider population growth projections for the municipality and adjoining areas for the
             143      next 20 years;
             144          (c) consider current and projected costs of infrastructure, urban services, and public
             145      facilities necessary:
             146          (i) to facilitate full development of the area within the municipality; and
             147          (ii) to expand the infrastructure, services, and facilities into the area being considered for
             148      inclusion in the h [ annexation policy plan ] EXPANSION AREA h ;
             149          (d) consider, in conjunction with the municipality's general plan, the need over the next
             150      20 years for additional land suitable for residential, commercial, and industrial development;
             151          (e) consider the reasons for including agricultural lands, forests, recreational areas, and


             152      wildlife management areas in the municipality; and
             153          (f) be guided by the principles set forth in Subsection 10-2-403 (5).
             153a           h (5) WITHIN 30 DAYS AFTER ADOPTING AN ANNEXATION POLICY PLAN, THE MUNICIPAL
             153b      LEGISLATIVE BODY SHALL SUBMIT A COPY OF THE PLAN TO THE LEGISLATIVE BODY OF EACH
             153c      COUNTY IN WHICH ANY OF THE MUNICIPALITY'S EXPANSION AREA IS LOCATED.
             154           [ (5) ] (6) h Nothing in this chapter may be construed to prohibit or restrict two or more
             155      municipalities in specified counties from negotiating and cooperating with respect to defining each
             156      municipality's h EXPANSION h area h [ proposed for future annexation ] h under an annexation
             156a      policy plan.
             157          Section 3. Section 10-2-402 is amended to read:
             158           10-2-402. Annexation -- Limitations.
             159          (1) (a) A contiguous, unincorporated area that is contiguous to a municipality may be
             160      annexed to the municipality as provided in this part.
             161          (b) An unincorporated area may not be annexed to a municipality unless:
             162          (i) it is a contiguous area;
             163          (ii) it is contiguous to the municipality; [and]
             164          (iii) except as provided in Subsection 10-2-418 (1)(b), annexation will not leave or create
             165      an unincorporated island or peninsula; and
             166          (iv) for an area located in a specified county h WITH RESPECT TO AN ANNEXATION THAT
             166a1      OCCURS AFTER DECEMBER 31, 2002 h , the area is within the h PROPOSED ANNEXING
             166a      MUNICIPALITY'S EXPANSION h area h [ defined by the ] .
             167      [ annexation policy plan of the proposed annexing municipality. ] h
             168          (2) Except as provided in Section 10-2-418 , a municipality may not annex an
             169      unincorporated area unless a petition under Section 10-2-403 is filed requesting annexation.
             169a           h (3) AN ANNEXATION UNDER THIS PART MAY NOT INCLUDE PART OF A PARCEL OF REAL
             169b      PROPERTY AND EXCLUDE PART OF THAT SAME PARCEL UNLESS THE OWNER OF THAT PARCEL
             169c      HAS SIGNED THE ANNEXATION PETITION UNDER SECTION 10-2-403.
             170           [ (3) ] (4) h A municipality may not annex an unincorporated area for the sole purpose of
             170a      acquiring
             171      municipal revenue or to retard the capacity of another municipality to annex the same or a related
             172      area unless the municipality has the ability and intent to benefit the annexed area by providing
             173      municipal services to the annexed area.
             174           h [ (4) A county legislative body may not approve urban development in the unincorporated
             175      portion of the county located, for a county of the first class, within 1/2 mile of a municipality or,
             176      for a specified county, within the area defined by a municipality's annexation policy plan, unless:
             177          (a) the owner of the property on which the urban development is proposed makes a good
             178      faith and diligent effort for at least six months to annex the property to the municipality;
             179          (b) legal or factual barriers prevent the annexation; and
             180          (c) at the end of the six-month period under Subsection (4)(a), the owner of the property
] h


             181      h [ notifies the county in writing of the legal or factual barriers that prevented annexation. ]
             181a           (5) THE LEGISLATIVE BODY OF A SPECIFIED COUNTY MAY NOT APPROVE URBAN
             181b      DEVELOPMENT WITHIN A MUNICIPALITY'S EXPANSION AREA UNLESS:
             181c          (a) THE COUNTY NOTIFIES THE MUNICIPALITY OF THE PROPOSED DEVELOPMENT;
             181d          (b)(i) THE MUNICIPALITY CONSENTS IN WRITING TO THE DEVELOPMENT; OR
             181e          (ii)(A) WITHIN 90 DAYS AFTER THE COUNTY'S NOTIFICATION OF THE PROPOSED
             181f      DEVELOPMENT, THE MUNICIPALITY SUBMITS TO THE COUNTY A WRITTEN OBJECTION TO THE
             181g      COUNTY'S APPROVAL OF THE PROPOSED DEVELOPMENT; AND
             181h          (B) THE COUNTY RESPONDS IN WRITING TO THE MUNICIPALITY'S OBJECTIONS.
             182           [ (5) ] (6) h (a) Except as provided in Subsection h [ (5) ] (6) h (b), no annexation petition
             182a      under this
             182a      part may


             183      be filed with a municipality located within a county of the first class on or after h [ July 1 ]
             183a      APRIL 30 h , 2001 until
             184      after July 1, 2002, and no municipality located in a county of the first class may accept an
             185      annexation petition under this part during that time.
             186          (b) Notwithstanding Subsection h [ (5) ] (6) h (a) and subject to Subsection h [ (5) ] (6) h (c),
             186a      an annexation
             187      petition may be filed with a municipality located within a county of the first class and a
             188      municipality located in a county of the first class may accept an annexation petition from July 1,
             189      2001 to July 1, 2002 if the petition:
             190          (i) contains the signatures of the owners of private real property that:
             191          (A) is located within the area proposed for annexation;
             192          (B) covers h [ 80% ] 2/3 h of the private land area within the area proposed for annexation; and
             193          (C) is equal in value to at least h [ 80% ] 2/3 h of the value of all private real property within
             193a      the area
             194      proposed for annexation; and
             195          (ii) otherwise complies with the requirements for an annexation petition under this part.
             196          (c) If a protest is filed under Section 10-2-407 to an annexation petition filed under
             197      Subsection h [ (5) ] (6) h (b), the annexation proceeding shall immediately be terminated.
             198          (d) Nothing in this Subsection h [ (5) ] (6) h may be construed to affect an annexation
             198a      proceeding
             199      initiated by a petition filed before h [ July 1 ] APRIL 30 h , 2001.
             200          Section 4. Section 10-2-403 is amended to read:
             201           10-2-403. Annexation petition -- Requirements.
             202          (1) Except as provided in Section 10-2-418 , the process to annex an unincorporated area
             203      to a municipality is initiated by a petition as provided in this section.
             204          (2) Each petition under Subsection (1) shall:
             205          (a) be filed with the city recorder or town clerk, as the case may be, of the proposed
             206      annexing municipality;
             207          (b) contain the signatures of:
             208          (i) the owners of private real property that:
             209          [(i)] (A) is located within the area proposed for annexation;
             210          [(ii) (A)] (B) (I) subject to Subsection (2)(b)[(ii)](i)(B)(II), covers a majority of the private
             211      land area within the area proposed for annexation; and
             212          [(B)] (II) covers 100% of the private land area within the area proposed for annexation,
             213      if the area is within an agriculture protection area created under Title 17, Chapter 41, Agriculture


             214      Protection Area; and
             215          [(iii)] (C) is equal in value to at least 1/3 of the value of all private real property within the
             216      area proposed for annexation; or
             217          (ii) if all the real property within the area proposed for annexation is h [ publicly ] h owned
             217a      h BY A PUBLIC ENTITY THAT IS NOT THE FEDERAL GOVERNMENT h , the
             218      h [ owners ] OWNER h of all the publicly owned real property;
             219          (c) be accompanied by an accurate h AND RECORDABLE h [plat or] map, prepared by a
             219a      licensed surveyor, of the
             220      area proposed for annexation; and
             221          (d) designate up to five of the signers of the petition as sponsors, one of whom shall be
             222      designated as the contact sponsor, and indicate the mailing address of each sponsor.
             223          (3) A petition under Subsection (1) may not propose the annexation of all or part of an area
             224      proposed for annexation to a municipality in a previously filed petition that has not been denied,
             225      rejected, or granted.
             226          (4) A petition under Subsection (1) proposing the annexation of an area located in a county
             227      of the first class may not propose the annexation of an area that includes some or all of an area
             228      proposed to be incorporated in a request for a feasibility study under Section 10-2-103 or a petition
             229      under Section 10-2-125 if:
             230          (a) the request or petition was filed before the filing of the annexation petition; and
             231          (b) the request, a petition under Section 10-2-109 based on that request, or a petition under
             232      Section 10-2-125 is still pending on the date the annexation petition is filed.
             233          (5) If practicable and feasible, the boundaries of an area proposed for annexation shall be
             234      drawn:
             235          (a) along the boundaries of existing special districts for sewer, water, and other services,
             236      along the boundaries of school districts whose boundaries follow city boundaries or school districts
             237      adjacent to school districts whose boundaries follow city boundaries, and along the boundaries of
             238      other taxing entities[:];
             239          [(a)] (b) to eliminate islands and peninsulas of territory that is not receiving municipal-type
             240      services;
             241          [(b)] (c) to facilitate the consolidation of overlapping functions of local government;
             242          [(c)] (d) to promote the efficient delivery of services; and
             243          [(d)] (e) to encourage the equitable distribution of community resources and obligations.
             244          (6) On the date of filing, the petition sponsors shall deliver or mail a copy of the petition


             245      to:
             246          (a) the clerk of the county in which the area proposed for annexation is located; and
             247          (b) the chair of the planning commission of each township in which any part of the area
             248      proposed for annexation is located.
             249          Section 5. Section 10-2-405 is amended to read:
             250           10-2-405. Acceptance or rejection of an annexation petition -- Modified petition.
             251          (1) (a) (i) (A) A municipal legislative body may:
             252          [(A)] (I) except as provided in Subsection (1)(b) and subject to Subsection (1)(a)(i)(B),
             253      deny a petition filed under Section 10-2-403 ; or
             254          [(B)] (II) accept the petition for further consideration under this part.
             255          (B) A municipal legislative body's failure to act to deny or accept a petition under
             256      Subsection (1)(a)(i)(A) within 14 days after the filing of the petition shall be considered to be an
             257      acceptance of the petition for further consideration under this part.
             258          (ii) If a municipal legislative body denies a petition under Subsection (1)(a)(i)(A), it shall,
             259      within five days of the denial, mail written notice of the denial to the contact sponsor, the clerk of
             260      the county in which the area proposed for annexation is located, and the chair of the planning
             261      commission of each township in which any part of the area proposed for annexation is located.
             262          (b) A municipal legislative body may not deny a petition filed under Section 10-2-403
             263      proposing to annex an area located in a county of the first class if:
             264          (i) the petition contains the signatures of the owners of private real property that:
             265          (A) is located within the area proposed for annexation;
             266          (B) covers a majority of the private land area within the area proposed for annexation; and
             267          (C) is equal in value to at least 1/2 of the value of all private real property within the area
             268      proposed for annexation;
             269          (ii) the population in the area proposed for annexation does not exceed [10%] 5% of the
             270      population of the proposed annexing municipality; [and]
             271          (iii) the property tax rate for municipal services in the area proposed to be annexed is
             272      higher than the property tax rate of the proposed annexing municipality; and
             273          (iv) all annexations by the proposed annexing municipality during the year that the petition
             274      was filed have not increased the municipality's population by more than 10%.
             275          (2) If the municipal legislative body accepts a petition under Subsection (1)(a)(i)[(B)] (A)


             276      or is considered to have accepted the petition under Subsection (1)(a)(i)(B), the city recorder or
             277      town clerk, as the case may be, shall, within 30 days of that acceptance:
             278          (a) with the assistance of the municipal attorney and of the clerk, surveyor, and recorder
             279      of the county in which the area proposed for annexation is located, determine whether the petition
             280      meets the requirements of Subsections 10-2-403 (2), (3), and (4); and
             281          (b) (i) if the city recorder or town clerk determines that the petition meets those
             282      requirements, certify the petition and mail or deliver written notification of the certification to the
             283      municipal legislative body, the contact sponsor, the county legislative body, and the chair of the
             284      planning commission of each township in which any part of the area proposed for annexation is
             285      located; or
             286          (ii) if the city recorder or town clerk determines that the petition fails to meet any of those
             287      requirements, reject the petition and mail or deliver written notification of the rejection and the
             288      reasons for the rejection to the municipal legislative body, the contact sponsor, the county
             289      legislative body, and the chair of the planning commission of each township in which any part of
             290      the area proposed for annexation is located.
             291          (3) (a) (i) If the city recorder or town clerk rejects a petition under Subsection (2)(b)(ii),
             292      the petition may be modified to correct the deficiencies for which it was rejected and then refiled
             293      with the city recorder or town clerk, as the case may be.
             294          (ii) A signature on an annexation petition filed under Section 10-2-403 may be used
             295      toward fulfilling the signature requirement of Subsection 10-2-403 (2)(b) for the petition as
             296      modified under Subsection (3)(a)(i).
             297          (b) If a petition is refiled under Subsection (3)(a) after having been rejected by the city
             298      recorder or town clerk under Subsection (2)(b)(ii), the refiled petition shall be treated as a newly
             299      filed petition under Subsection 10-2-403 (1).
             300          (4) Each county clerk, surveyor, and recorder shall cooperate with and assist a city recorder
             301      or town clerk in the determination under Subsection (2)(a).
             302          Section 6. Section 10-2-406 is amended to read:
             303           10-2-406. Notice of certification -- Publishing and providing notice of petition.
             304          (1) After receipt of the notice of certification from the city recorder or town clerk under
             305      Subsection 10-2-405 (2)(b)(i), the municipal legislative body shall:
             306          (a) (i) publish a notice at least once a week for three successive weeks, beginning no later


             307      than ten days after receipt of the notice of certification, in a newspaper of general circulation
             308      within:
             309          (A) the area proposed for annexation; and
             310          (B) the unincorporated area within 1/2 mile of the area proposed for annexation; or
             311          (ii) if there is no newspaper of general circulation within those areas, post written notices
             312      in conspicuous places within those areas that are most likely to give notice to residents within
             313      those areas; and
             314          (b) within 20 days of receipt of the notice of certification under Subsection
             315      10-2-405 (2)(b)(i), mail written notice to[:] each affected entity.
             316          [(i) the legislative body of the county in which the area proposed for annexation is
             317      located;]
             318          [(ii) the board of each special district under Title 17A, Chapter 2, Independent Special
             319      Districts, whose boundaries include part or all of the area proposed for annexation;]
             320          [(iii) the legislative body of each municipality whose boundaries are within 1/2 mile of
             321      the area proposed for annexation; and]
             322          [(iv) each school district whose boundaries include part or all of the area proposed for
             323      annexation.]
             324          (2) (a) The notice under Subsections (1)(a) and (b) shall:
             325          (i) state that a petition has been filed with the municipality proposing the annexation of
             326      an area to the municipality;
             327          (ii) state the date of the municipal legislative body's receipt of the notice of certification
             328      under Subsection 10-2-405 (2)(b)(i);
             329          (iii) describe the area proposed for annexation in the annexation petition;
             330          (iv) state that the complete annexation petition is available for inspection and copying at
             331      the office of the city recorder or town clerk;
             332          (v) state in conspicuous and plain terms that the municipality may grant the petition and
             333      annex the area described in the petition unless, within the time required under Subsection
             334      10-2-407 (2)(a)(i)(A) [or 10-2-407 (2)(e), as the case may be], a written protest to the annexation
             335      petition is filed with the commission and a copy of the protest delivered to the city recorder or
             336      town clerk of the proposed annexing municipality; and
             337          (vi) state the address of the commission or, if a commission has not yet been created in the


             338      county, the county clerk, where a protest to the annexation petition may be filed.
             339          (b) The statement required by Subsection (2)(a)(v) shall state the deadline for filing a
             340      written protest in terms of the actual date rather than by reference to the statutory citation.
             341          (c) In addition to the requirements under Subsection (2)(a), a notice under Subsection
             342      (1)(a) for a proposed annexation of an area within a county of the first class shall include a
             343      statement that a protest to the annexation petition may be filed with the commission by property
             344      owners if it contains the signatures of the owners of private real property that:
             345          (i) is located in the unincorporated area within 1/2 mile of the area proposed for
             346      annexation;
             347          (ii) covers at least 25% of the private land area located in the unincorporated area within
             348      1/2 mile of the area proposed for annexation; and
             349          (iii) is equal in value to at least 15% of all real property located in the unincorporated area
             350      within 1/2 mile of the area proposed for annexation.
             351          Section 7. Section 10-2-407 is amended to read:
             352           10-2-407. Protest to annexation petition -- Requirements -- Disposition if no protest
             353      -- Township planning commission recommendation.
             354          (1) (a) A protest to an annexation petition under Section 10-2-403 may be filed by:
             355          (i) the legislative body [of the county in which the area proposed for annexation is
             356      located;] or governing board of an affected entity; or
             357          [(ii) the board of a special district whose boundaries include part or all of the area
             358      proposed for annexation;]
             359          [(iii) the legislative body of a municipality whose boundaries are within 1/2 mile of the
             360      area proposed for annexation; or]
             361          [(iv)] (ii) for a proposed annexation of an area within a county of the first class, the owners
             362      of private real property that:
             363          (A) is located in the unincorporated area within 1/2 mile of the area proposed for
             364      annexation;
             365          (B) covers at least 25% of the private land area located in the unincorporated area within
             366      1/2 mile of the area proposed for annexation; and
             367          (C) is equal in value to at least 15% of all real property located in the unincorporated area
             368      within 1/2 mile of the area proposed for annexation.


             369          (b) (i) [(A) Except as provided in Subsection (1)(b)(i)(B), a township] A planning
             370      commission of a township located in a county of the first class may recommend to the legislative
             371      body of the county in which the township is located that the county legislative body file a protest
             372      against a proposed annexation under this part of an area located within the township.
             373          [(B) Subsection (1)(b)(i)(A) does not apply if the time for filing a protest under Subsection
             374      (2)(a)(i)(A) or (2)(e) expires before July 17, 1997.]
             375          (ii) (A) [Except as provided in Subsection (1)(b)(ii)(B), the] The township planning
             376      commission shall communicate each recommendation under Subsection (1)(b)(i) in writing to the
             377      county legislative body within 30 days of the city recorder or town clerk's certification of the
             378      annexation petition under Subsection 10-2-405 (2)(b)(i).
             379          [(B) Notwithstanding Subsection (1)(b)(ii)(A), if the city recorder or town clerk's
             380      certification under Subsection 10-2-405 (2)(b)(i) occurs before July 17, 1997, the township
             381      planning commission shall communicate its recommendation under Subsection (1)(b)(i) in writing
             382      to the county legislative body on or before August 16, 1997, but no later than the deadline for filing
             383      a protest under Subsection (2)(a)(i)(A) or (2)(e), excluding an extension under Subsection (2)(f).]
             384          [(C)] (B) At the time the recommendation is communicated to the county legislative body
             385      under Subsection (1)(b)(ii)(A), the township planning commission shall mail or deliver a copy of
             386      the recommendation to the legislative body of the proposed annexing municipality and to the
             387      contact sponsor.
             388          (2) (a) Each protest under Subsection (1)(a) shall:
             389          (i) be filed:
             390          (A) [except as provided in Subsections (2)(e) and (f),] no later than [60] 30 days after the
             391      municipal legislative body's receipt of the notice of certification under Subsection
             392      10-2-405 (2)(b)(i); and
             393          (B) (I) in a county that has already created a commission under Section 10-2-409 , with the
             394      commission; or
             395          (II) in a county that has not yet created a commission under Section 10-2-409 , with the
             396      clerk of the county in which the area proposed for annexation is located; and
             397          (ii) state each reason for the protest of the annexation petition and justification for the
             398      protest under the standards established in this chapter;
             399          (iii) contain other information that the commission by rule requires or that the party filing


             400      the protest considers pertinent; and
             401          (iv) the name and address of a contact person who is to receive notices sent by the
             402      commission with respect to the protest proceedings.
             403          (b) The party filing a protest under this section shall on the same date deliver or mail a
             404      copy of the protest to the city recorder or town clerk of the proposed annexing municipality.
             405          (c) Each clerk who receives a protest under Subsection (2)(a)(i)(B)(II) shall immediately
             406      notify the county legislative body of the protest and shall deliver the protest to the boundary
             407      commission within five days of its creation under Subsection 10-2-409 (1)(b).
             408          (d) Each protest of a proposed annexation of an area located in a county of the first class
             409      under Subsection (1)(a)[(iv)] (i)(D) shall, in addition to the requirements of Subsections (2)(a) and
             410      (b):
             411          (i) indicate the typed or printed name and current residence address of each owner signing
             412      the protest; and
             413          (ii) designate one of the signers of the protest as the contact person and state the mailing
             414      address of the contact person.
             415          [(e) Notwithstanding Subsection (2)(a)(i)(A) and except as provided in Subsection (2)(f),
             416      each protest under Subsection (1) shall be filed no later than 40 days after the municipal legislative
             417      body's receipt of the notice of certification under Subsection 10-2-405 (2)(b)(i) if the annexation
             418      petition proposes the annexation of an area that:]
             419          [(i) is undeveloped; and]
             420          [(ii) covers an area that is equivalent to less than 5% of the total land mass of all private
             421      real property within the municipality.]
             422          [(f) The deadline under Subsection (2)(a)(i)(A) or (2)(e) for the county legislative body
             423      to file a protest is extended by ten days if:]
             424          [(i) the city recorder or town clerk's certification of the annexation petition under
             425      Subsection 10-2-405 (2)(b)(i) occurs before July 17, 1997; and]
             426          [(ii) the time for filing a protest under Subsection (2)(a)(i)(A) or (2)(e) has not expired as
             427      of July 17, 1997.]
             428          (3) (a) (i) If a protest is filed under this section:
             429          (A) the municipal legislative body may, at its next regular meeting after expiration of the
             430      deadline under Subsection (2)(a)(i)(A) [or (e)] and, for a proposed annexation of an area located


             431      in a county of the first class, except as provided in Subsection (3)(a)(iii), deny the annexation
             432      petition;
             432a           h (B) FOR A PROPOSED ANNEXATION OF AN AREA LOCATED WITHIN A COUNTY OF THE
             432b      FIRST CLASS, THE MUNICIPAL LEGISLATIVE BODY MAY GRANT THE ANNEXATION PETITION AS
             432c      PROVIDED IN SUBSECTION (3)(b)(i)(B); h or
             433           h [ (B) ] (C) h if the municipal legislative body does not deny the annexation petition under
             434      Subsection (3)(a)(i)(A) h OR GRANT THE PETITION UNDER SUBSECTION (3)(b)(i)(B) h , the
             434a      municipal legislative body may take no further action on the
             435      annexation petition until after receipt of the commission's notice of its decision on the protest
             436      under Section 10-2-416 .
             437          (ii) If a municipal legislative body denies an annexation petition under Subsection
             438      (3)(a)(i)(A), the municipal legislative body shall, within five days of the denial, send notice of the
             439      denial in writing to:
             440          (A) the contact sponsor of the annexation petition;
             441          (B) the commission;
             442          (C) each entity that filed a protest; and
             443          (D) if a protest was filed under Subsection (1)(a)[(iv)](ii) for a proposed annexation of an
             444      area located in a county of the first class, the contact person.
             445          (iii) A municipal legislative body may not deny an annexation petition proposing to annex
             446      an area located in a county of the first class if:
             447          (A) the petition contains the signatures of the owners of private real property that:
             448          (I) is located within the area proposed for annexation;
             449          (II) covers a majority of the private land area within the area proposed for annexation; and
             450          (III) is equal in value to at least 1/2 of the value of all private real property within the area
             451      proposed for annexation;
             452          (B) the population in the area proposed for annexation does not exceed [10%] 5% of the
             453      population of the proposed annexing municipality; [and]
             454          (C) the property tax rate for municipal services in the area proposed to be annexed is
             455      higher than the property tax rate of the proposed annexing municipality; and
             456          (D) all annexations by the proposed annexing municipality during the year that the petition
             457      was filed have not increased the municipality's population by more than 10%.
             458          (b) (i) h [ If no timely protest is filed under this section, the ] A h municipal legislative body
             458a      may,
             459      subject to Subsection (3)(b)(ii), grant h [ the ] AN ANNEXATION h petition and, by ordinance,


             459a      annex the area that is the
             460      subject of the annexation petition h IF:
             460a          (A) NO TIMELY PROTEST WAS FILED UNDER THIS SECTION; OR
             460b          (B)(I) THE AREA PROPOSED TO BE ANNEXED IS LOCATED IN A COUNTY OF THE FIRST
             460c      CLASS; AND
             460d          (II) h NOTWITHSTANDING ANY PROTESTS FILED UNDER THIS SECTION, h THE COUNTY
             460e      LEGISLATIVE BODY APPROVES THE ANNEXATION h .
             461          (ii) Before granting an annexation petition under Subsection (3)(b)(i), the municipal


             462      legislative body shall:
             463          (A) hold a public hearing; and
             464          (B) at least seven days before the public hearing under Subsection (3)(b)(ii)(A):
             465          (I) publish notice of the hearing in a newspaper of general circulation within the
             466      municipality and the area proposed for annexation; or
             467          (II) if there is no newspaper of general circulation in those areas, post written notices of
             468      the hearing in conspicuous places within those areas that are most likely to give notice to residents
             469      within those areas.
             470          Section 8. Section 10-2-408 is amended to read:
             471           10-2-408. Denial of or granting the annexation petition.
             472          (1) After receipt of the commission's decision on a protest under Subsection 10-2-416 (2),
             473      a municipal legislative body may:
             474          (a) except as provided in Subsection (2) for a proposed annexation of an area located in
             475      a county of the first class, deny the annexation petition; or
             476          (b) if the commission approves the annexation, grant the annexation petition and, by
             477      ordinance and consistent with the commission's decision, annex the area that is the subject of the
             478      annexation petition.
             479          (2) A municipal legislative body may not deny an annexation petition proposing to annex
             480      an area located in a county of the first class if:
             481          (a) the petition contains the signatures of the owners of private real property that:
             482          (i) is located within the area proposed for annexation;
             483          (ii) covers a majority of the private land area within the area proposed for annexation; and
             484          (iii) is equal in value to at least 1/2 of the value of all private real property within the area
             485      proposed for annexation;
             486          (b) the population in the area proposed for annexation does not exceed [10%] 5% of the
             487      population of the proposed annexing municipality; [and]
             488          (c) the property tax rate for municipal services in the area proposed to be annexed is higher
             489      than the property tax rate of the proposed annexing municipality; and
             490          (d) all annexations by the proposed annexing municipality during the year that the petition
             491      was filed have not increased the municipality's population by more than 10%.
             492          Section 9. Section 10-2-409 is amended to read:


             493           10-2-409. Boundary commission -- Creation -- Members.
             494          (1) The legislative body of each county:
             495          (a) may create a boundary commission on its own initiative at any time; and
             496          (b) shall create a boundary commission within 30 days of the filing of a protest under
             497      Section 10-2-407 .
             498          (2) [(a)] Each commission shall be composed of:
             499          [(i)] (a) in a county with two or more municipalities:
             500          [(A)] (i) two members who are elected county officers, appointed by:
             501          (A) (I) in a county of the first class operating under a form of government in which the
             502      executive and legislative functions are separated, the county executive with the advice and consent
             503      of the county legislative body; or
             504          (II) in a county of the first class operating under a form of government in which the
             505      executive and legislative functions of the governing body are not separated, the county legislative
             506      body; or
             507          (B) in a specified county, the county legislative body;
             508          [(B)] (ii) two members who are elected municipal officers from separate municipalities
             509      within the county, appointed by the municipal selection committee; and
             510          [(C)] (iii) three members who are residents of the county, none of whom is a county or
             511      municipal officer, appointed by the four other members [under Subsections (2)(a)(i)(A) and (B)]
             512      of the boundary commission; and
             513          [(ii)] (b) in a county with only one municipality:
             514          [(A)] (i) two members who are county elected officers, appointed by[:] the county
             515      legislative body;
             516          [(I) in a county operating under a form of government in which the executive and
             517      legislative functions are separated, the county executive with the advice and consent of the county
             518      legislative body; or]
             519          [(II) in a county operating under a form of government in which the executive and
             520      legislative functions of the governing body are not separated, the county legislative body;]
             521          [(B)] (ii) one member who is a municipal officer, appointed by the [municipal legislative]
             522      governing body of the municipality; and
             523          [(C)] (iii) two members who are residents of the county, neither of whom is a county or


             524      municipal officer, appointed by the other three members [under Subsections (2)(a)(ii)(A) and (B)]
             525      of the boundary commission.
             526          [(b) For purposes of Subsection (2)(a)(i)(B), a majority of the municipal selection
             527      committee constitutes a quorum, and action of the municipal selection committee requires a
             528      majority vote of a quorum.]
             529          (3) At the expiration of the term of each member appointed under this section, the
             530      member's successor shall be appointed by the same body that appointed the member whose term
             531      is expiring, as provided in this section.
             532          [(4) Each boundary commission created before May 5, 1997, under Chapter 25, Laws of
             533      Utah 1979, shall continue in existence and thereafter be governed by the provisions of this part.]
             534          Section 10. Section 10-2-409.5 is enacted to read:
             535          10-2-409.5. Municipal selection committee.
             536          (1) In each county in which there are two or more municipalities there shall be a municipal
             537      selection committee consisting of the mayor of each municipality.
             538          (2) A majority of the members of the municipal selection committee constitutes a quorum.
             539          (3) The municipal selection committee shall appoint each municipal member of the county
             540      boundary commission under Subsection 10-2-409 (2)(a)(iii) and fill each vacancy in that position
             541      as it occurs.
             542          Section 11. Section 10-2-410 is amended to read:
             543           10-2-410. Boundary commission member terms -- Staggered terms -- Chair --
             544      Quorum -- Vacancy.
             545          (1) Except as provided in Subsection (2), the term of each member of a boundary
             546      commission is four years and begins and expires the first Monday in January of the applicable year.
             547          (2) Notwithstanding Subsection (1), the terms of the first members of a commission shall
             548      be staggered by lot so that:
             549          (a) on a seven-member commission, the term of one member is approximately one year,
             550      the term of two members is approximately two years, the term of two members is approximately
             551      three years, and the term of two members is approximately four years; and
             552          (b) on a five-member commission, the term of two members is approximately two years
             553      and the term of the other three members is approximately four years.
             554          (3) (a) The members of each boundary commission shall elect as chair a person from their


             555      number whose term on the boundary commission does not expire for at least two years.
             556          (b) The term of a boundary commission chair is two years.
             557          (4) A majority of the commission constitutes a quorum, and commission action requires
             558      a majority vote of [a quorum] the commission.
             559          (5) Each vacancy on a commission of a member or an alternate member shall be filled for
             560      the remaining unexpired term of the vacating member by the body that appointed the vacating
             561      member under Section 10-2-409 .
             562          Section 12. Section 10-2-411 is amended to read:
             563           10-2-411. Disqualification of commission member -- Alternate member.
             564          (1) A member of the boundary commission is disqualified with respect to a protest before
             565      the commission if that member owns property:
             566          (a) for a proposed annexation of an area located within a county of the first class:
             567          (i) within the area proposed for annexation in a petition that is the subject of the protest;
             568      or
             569          [(b)] (ii) that is in the unincorporated area within 1/2 mile of the area proposed for
             570      annexation in a petition that is the subject of a protest under Subsection 10-2-407 (1)(a)[(iv)] (i)(D);
             571      or
             572          (b) for a proposed annexation of an area located in a specified county, within the area
             573      proposed for annexation.
             574          (2) If a member is disqualified under Subsection (1), the body that appointed the
             575      disqualified member shall appoint an alternate member to serve on the commission for purposes
             576      of the protest as to which the member is disqualified.
             577          Section 13. Section 10-2-412 is amended to read:
             578           10-2-412. Boundary commission authority -- Expenses -- Records.
             579          (1) The boundary commission for each county shall hear and decide, according to the
             580      provisions of this part, each protest filed under Section 10-2-407 , with respect to an area that is
             581      located within that county.
             582          (2) A boundary commission may:
             583          (a) adopt and enforce rules of procedure for the orderly and fair conduct of its proceedings;
             584          (b) authorize a member of the commission to administer oaths if necessary in the
             585      performance of the commission's duties;


             586          (c) employ staff personnel and professional or consulting services reasonably necessary
             587      to enable the commission to carry out its duties; and
             588          (d) incur reasonable and necessary expenses to enable the commission to carry out its
             589      duties.
             590          (3) The legislative body of each county shall, with respect to the boundary commission in
             591      that county:
             592          (a) furnish the commission necessary quarters, equipment, and supplies;
             593          (b) pay necessary operating expenses incurred by the commission; and
             594          (c) reimburse the reasonable and necessary expenses incurred by each member appointed
             595      under Subsection 10-2-409 (2)(a)[(i)(C)](iii) or [(ii)(C)] (b)(iii), unless otherwise provided by
             596      interlocal agreement.
             597          (4) Each county or municipal legislative body shall reimburse the reasonable and necessary
             598      expenses incurred by a commission member who is an elected county or municipal officer,
             599      respectively.
             600          (5) Records, information, and other relevant materials necessary to enable the commission
             601      to carry out its duties shall, upon request by the commission, be furnished to the boundary
             602      commission by the personnel, employees, and officers of:
             603          (a) for a proposed annexation of an area located in a county of the first class:
             604          (i) each county and special district whose boundaries include an area that is the subject of
             605      a protest under the commission's consideration; and
             606          [(b)] (ii) each municipality whose boundaries may be affected by action of the boundary
             607      commission; or
             608          (b) for a proposed annexation of an area located in a specified county, each affected entity:
             609          (i) whose boundaries include any part of the area proposed for annexation; or
             610          (ii) that may be affected by action of the boundary commission.
             611          Section 14. Section 10-2-413 is amended to read:
             612           10-2-413. Feasibility consultant -- Feasibility study -- Modifications to feasibility
             613      study.
             614          (1) (a) [Unless] For a proposed annexation of an area located in a county of the first class,
             615      unless a proposed annexing municipality denies an annexation petition under Subsection
             616      10-2-407 (3)(a)(i)(A) h OR GRANTS AN ANNEXATION PETITION UNDER SUBSECTION
             616a      10-2-407(3)(b)(i)(B) h and except as provided in Subsection (1)(b), the commission shall choose and


             617      engage a feasibility consultant within 45 days of:
             618          (i) the commission's receipt of a protest under Section 10-2-407 , if the commission had
             619      been created before the filing of the protest; or
             620          (ii) the commission's creation, if the commission is created after the filing of a protest.
             621          (b) Notwithstanding Subsection (1)(a), the commission may not require a feasibility study
             622      with respect to a [proposed] petition that proposes the annexation of an area that [meets the criteria
             623      of Subsection 10-2-407 (2)(e)]:
             624          (i) is undeveloped; and
             625          (ii) covers an area that is equivalent to less than 5% of the total land mass of all private real
             626      property within the municipality.
             627          (2) The commission shall require the feasibility consultant to:
             628          (a) complete a feasibility study on the proposed annexation and submit written results of
             629      the study to the commission no later than 75 days after the feasibility consultant is engaged to
             630      conduct the study;
             631          (b) submit with the full written results of the feasibility study a summary of the results no
             632      longer than a page in length; and
             633          (c) attend the public hearing under Subsection 10-2-415 (1) and present the feasibility study
             634      results and respond to questions at that hearing.
             635          (3) (a) Subject to Subsection (4), the feasibility study shall consider:
             636          (i) the population and population density within the area proposed for annexation, the
             637      surrounding unincorporated area, and, if a protest was filed by a municipality with boundaries
             638      within 1/2 mile of the area proposed for annexation, that municipality;
             639          (ii) the geography, geology, and topography of and natural boundaries within the area
             640      proposed for annexation, the surrounding unincorporated area, and, if a protest was filed by a
             641      municipality with boundaries within 1/2 mile of the area proposed for annexation, that
             642      municipality;
             643          (iii) whether the proposed annexation eliminates, leaves, or creates an unincorporated
             644      island or peninsula;
             645          (iv) whether the proposed annexation will hinder or prevent a future and more logical and
             646      beneficial annexation or a future logical and beneficial incorporation;
             647          (v) the fiscal impact of the proposed annexation on the remaining unincorporated area,


             648      other municipalities, special districts, school districts, and other governmental entities;
             649          (vi) current and five-year projections of demographics and economic base in the area
             650      proposed for annexation and surrounding unincorporated area, including household size and
             651      income, commercial and industrial development, and public facilities;
             652          (vii) projected growth in the area proposed for annexation and the surrounding
             653      unincorporated area during the next five years;
             654          (viii) the present and five-year projections of the cost of governmental services in the area
             655      proposed for annexation;
             656          (ix) the present and five-year projected revenue to the proposed annexing municipality
             657      from the area proposed for annexation;
             658          (x) the projected impact the annexation will have over the following five years on the
             659      amount of taxes that property owners within the area proposed for annexation, the proposed
             660      annexing municipality, and the remaining unincorporated county will pay;
             661          (xi) past expansion in terms of population and construction in the area proposed for
             662      annexation and the surrounding unincorporated area;
             663          (xii) the extension during the past ten years of the boundaries of each other municipality
             664      near the area proposed for annexation, the willingness of the other municipality to annex the area
             665      proposed for annexation, and the probability that another municipality would annex some or all
             666      of the area proposed for annexation during the next five years if the annexation did not occur;
             667          (xiii) the history, culture, and social aspects of the area proposed for annexation and
             668      surrounding area;
             669          (xiv) the method of providing and the entity that has provided municipal-type services in
             670      the past to the area proposed for incorporation and the feasibility of municipal-type services being
             671      provided by the proposed annexing municipality; and
             672          (xv) the effect on each school district whose boundaries include part or all of the area
             673      proposed for annexation or the proposed annexing municipality.
             674          (b) For purposes of Subsection (3)(a)(ix), the feasibility consultant shall assume ad
             675      valorem property tax rates on residential property within the area proposed for annexation at the
             676      same level that residential property within the proposed annexing municipality would be without
             677      the annexation.
             678          (c) For purposes of Subsection (3)(a)(viii), the feasibility consultant shall assume that the


             679      level and quality of governmental services that will be provided to the area proposed for
             680      annexation in the future is essentially comparable to the level and quality of governmental services
             681      being provided within the proposed annexing municipality at the time of the feasibility study.
             682          (4) (a) Except as provided in Subsection (4)(b), the commission may modify the depth of
             683      study of and detail given to the items listed in Subsection (3)(a) by the feasibility consultant in
             684      conducting the feasibility study depending upon:
             685          (i) the size of the area proposed for annexation;
             686          (ii) the size of the proposed annexing municipality;
             687          (iii) the extent to which the area proposed for annexation is developed;
             688          (iv) the degree to which the area proposed for annexation is expected to develop and the
             689      type of development expected; and
             690          (v) the number and type of protests filed against the proposed annexation.
             691          (b) Notwithstanding Subsection (4)(a), the commission may not modify the requirement
             692      that the feasibility consultant provide a full and complete analysis of the items listed in Subsections
             693      (3)(a)(viii), (ix), and (xv).
             694          (5) If the results of the feasibility study do not meet the requirements of Subsection
             695      10-2-416 (3), the feasibility consultant may, as part of the feasibility study, make recommendations
             696      as to how the boundaries of the area proposed for annexation may be altered so that the
             697      requirements of Subsection 10-2-416 (3) may be met.
             698          (6) (a) Except as provided in Subsection (6)(b), the feasibility consultant fees and expenses
             699      shall be shared equally by the proposed annexing municipality and each entity or group under
             700      Subsection 10-2-407 (1) that files a protest.
             701          (b) (i) Except as provided in Subsection (6)(b)(ii), if a protest is filed by property owners
             702      under Subsection 10-2-407 (1)(a)[(iv)](ii), the county in which the area proposed for annexation
             703      shall pay the owners' share of the feasibility consultant's fees and expenses.
             704          (ii) Notwithstanding Subsection (6)(b)(i), if both the county and the property owners file
             705      a protest, the county and the proposed annexing municipality shall equally share the property
             706      owners' share of the feasibility consultant's fees and expenses.
             707          Section 15. Section 10-2-414 is amended to read:
             708           10-2-414. Modified annexation petition -- Supplemental feasibility study.
             709          (1) (a) (i) If the results of the feasibility study with respect to a proposed annexation of an


             710      area located in a county of the first class do not meet the requirements of Subsection 10-2-416 (3),
             711      the sponsors of the annexation petition may, within 45 days of the feasibility consultant's
             712      submission of the results of the study, file with the city recorder or town clerk of the proposed
             713      annexing municipality a modified annexation petition altering the boundaries of the proposed
             714      annexation.
             715          (ii) On the date of filing a modified annexation petition under Subsection (1)(a)(i), the
             716      sponsors of the annexation petition shall deliver or mail a copy of the modified annexation petition
             717      to the clerk of the county in which the area proposed for annexation is located.
             718          (b) Each modified annexation petition under Subsection (1)(a) shall comply with the
             719      requirements of Subsections 10-2-403 (2), (3), and (4).
             720          (2) (a) Within 20 days of the city recorder or town clerk's receipt of the modified
             721      annexation petition, the city recorder or town clerk, as the case may be, shall follow the same
             722      procedure for the modified annexation petition as provided under Subsections 10-2-405 (2) and
             723      (3)(a) for an original annexation petition.
             724          (b) If the city recorder or town clerk certifies the modified annexation petition under
             725      Subsection 10-2-405 (2)(b)(i), the city recorder or town clerk, as the case may be, shall send written
             726      notice of the certification to:
             727          (i) the commission;
             728          (ii) each entity that filed a protest to the annexation petition; and
             729          (iii) if a protest was filed under Subsection 10-2-407 (1)(a)[(iv)](ii), the contact person.
             730          (c) (i) If the modified annexation petition proposes the annexation of an area that includes
             731      part or all of a special district or school district that was not included in the area proposed for
             732      annexation in the original petition, the city recorder or town clerk, as the case may be, shall also
             733      send notice of the certification of the modified annexation petition to the board of the special
             734      district or school district.
             735          (ii) If the area proposed for annexation in the modified annexation petition is within 1/2
             736      mile of the boundaries of a municipality whose boundaries were not within 1/2 mile of the area
             737      proposed for annexation in the original annexation petition, the city recorder or town clerk, as the
             738      case may be, shall also send notice of the certification of the modified annexation petition to the
             739      legislative body of that municipality.
             740          (3) Within ten days of the commission's receipt of the notice under Subsection (2)(b), the


             741      commission shall engage the feasibility consultant that conducted the feasibility study to
             742      supplement the feasibility study to take into account the information in the modified annexation
             743      petition that was not included in the original annexation petition.
             744          (4) The commission shall require the feasibility consultant to complete the supplemental
             745      feasibility study and to submit written results of the supplemental study to the commission no later
             746      than 30 days after the feasibility consultant is engaged to conduct the supplemental feasibility
             747      study.
             748          Section 16. Section 10-2-415 is amended to read:
             749           10-2-415. Public hearing -- Notice.
             750          (1) (a) (i) If the results of the feasibility study or supplemental feasibility study meet the
             751      requirements of Subsection 10-2-416 (3) with respect to a proposed annexation of an area located
             752      in a county of the first class, the commission shall hold a public hearing within 30 days of receipt
             753      of the feasibility study or supplemental feasibility study results.
             754          [(2)] (ii) At the hearing under Subsection (1)(a)(i), the commission shall:
             755          [(a)] (A) require the feasibility consultant to present the results of the feasibility study and,
             756      if applicable, the supplemental feasibility study;
             757          [(b)] (B) allow those present to ask questions of the feasibility consultant regarding the
             758      study results; and
             759          [(c)] (C) allow those present to speak to the issue of annexation.
             760          [(3) (a)] (iii) (A) The commission shall:
             761          [(i)] (I) publish notice of [the] each hearing under Subsection (1)(a)(i) at least once a week
             762      for two successive weeks in a newspaper of general circulation within the area proposed for
             763      annexation, the surrounding 1/2 mile of unincorporated area, and the proposed annexing
             764      municipality; and
             765          [(ii)] (II) send written notice of the hearing to the municipal legislative body of the
             766      proposed annexing municipality, the contact sponsor on the annexation petition, each entity that
             767      filed a protest, and, if a protest was filed under Subsection 10-2-407 (1)(a)[(iv)](ii), the contact
             768      person.
             769          [(b)] (B) If there is no newspaper of general circulation within the areas described in
             770      Subsection [(3)(a)(i)] (1)(a)(iii)(A)(I), the commission shall give the notice required under that
             771      subsection by posting notices, at least seven days before the hearing, in conspicuous places within


             772      those areas that are most likely to give notice of the hearing to the residents of those areas.
             773          [(c)] (C) The notices under Subsections [(3)(a) and (b)] (1)(a)(iii)(A) and (B) shall include
             774      the feasibility study summary under Subsection 10-2-413 (2)(b) and shall indicate that a full copy
             775      of the study is available for inspection and copying at the office of the commission.
             776          (b) (i) Within 30 days after time under Subsection 10-2-407 (2) for filing a protest has
             777      expired with respect to a proposed annexation of an area located in a specified county, the
             778      boundary commission shall hold a hearing on all protests that were filed with respect to the
             779      proposed annexation.
             780          (ii) (A) At least 14 days before the date of each hearing under Subsection (1)(b)(i), the
             781      commission chair shall cause notice of the hearing to be published in a newspaper of general
             782      circulation within the area proposed for annexation.
             783          (B) Each notice under Subsection (1)(b)(ii)(A) shall:
             784          (I) state the date, time, and place of the hearing;
             785          (II) briefly summarize the nature of the protest; and
             786          (III) state that a copy of the protest is on file at the commission's office.
             787          (iii) The commission may continue a hearing under Subsection (1)(b)(i) from time to time,
             788      but no continued hearing may be held later than 60 days after the original hearing date.
             789          (iv) In considering protests, the commission shall consider whether the proposed
             790      annexation:
             791          (A) h [ is substantially in compliance ] COMPLIES h with the requirements of h [ Subsection
             791a      10-2-403 (5)
] SECTIONS 10-2-402 AND 10-2-403 h
and
             792      the annexation policy plan of the proposed annexing municipality;
             793          (B) conflicts with the annexation policy plan of another municipality; and
             794          (C) if the proposed annexation includes urban development, will have an adverse tax
             795      consequence on the remaining unincorporated area of the county.
             796          [(4)] (2) (a) The commission shall record [the] each hearing under this section by
             797      electronic means.
             798          (b) A transcription of the recording under Subsection [(4)] (2)(a), the feasibility study, if
             799      applicable, information received at the hearing, and the written decision of the commission shall
             800      constitute the record of the hearing.
             801          Section 17. Section 10-2-416 is amended to read:
             802           10-2-416. Commission decision -- Written decision.


             803          (1) Subject to Subsection (3), after the public hearing under Subsection 10-2-415 (1) the
             804      boundary commission may:
             805          (a) approve the proposed annexation, either with or without conditions;
             806          (b) make minor modifications to the proposed annexation and approve it, either with or
             807      without conditions; or
             808          (c) disapprove the proposed annexation.
             809          (2) The commission shall issue a written decision on the proposed annexation within
             809a      h [ 20 ] 30 h
             810      days [of] after the conclusion of the hearing under [Subsection 10-2-415 (1)] Section 10-2-415 and
             811      shall send a copy of the decision to:
             812          (a) the legislative body of the county in which the area proposed for annexation is located;
             813          (b) the legislative body of the proposed annexing municipality;
             814          (c) the contact person on the annexation petition;
             815          (d) the contact person of each entity that filed a protest; and
             816          (e) if a protest was filed under Subsection 10-2-407 (1)(a)[(iv)](ii) with respect to a
             817      proposed annexation of an area located in a county of the first class, the contact person designated
             818      in the protest.
             819          (3) [The] Except for an annexation for which a feasibility study may not be required under
             820      Subsection 10-2-413 (1)(b), the commission may not approve a proposed annexation of an area
             821      located within a county of the first class unless the results of the feasibility study under Section
             822      10-2-413 show that the average annual amount under Subsection 10-2-413 (3)(a)(ix) does not
             823      exceed the average annual amount under Subsection 10-2-413 (3)(a)(viii) by more than 5%.
             824          Section 18. Section 10-2-421 is amended to read:
             825           10-2-421. Electric utility service in annexed area.
             826          (1) If the electric consumers of the area being annexed are receiving electric utility services
             827      from sources other than the annexing municipality, the municipality may not, without the consent
             828      of the electric utility, furnish its electric utility services to the electric consumers until the
             829      municipality has reimbursed the electric utility company [which] that previously provided the
             830      services for the [fair market] value of those facilities dedicated to provide service to the annexed
             831      area.
             832          (2) If the annexing municipality and the electric utility cannot agree on the [fair market]
             833      value, [it shall be determined by] the state court having jurisdiction shall determine the h FAIR
             833a      MARKET h value h [ that ] OF THOSE FACILITIES, AND h


             834      the municipality shall reimburse h THE FAIR MARKET VALUE AMOUNT, AS DETERMINED BY THE
             834a      COURT, h to the electric utility company h [ , which shall be the fair market ] .
             835      [ value of the facilities dedicated to provide service to the annexed area. ] h
             836          Section 19. Section 10-2-426 is amended to read:
             837           10-2-426. Division of municipal-type services revenues.
             838          (1) The legislative body of [the] each county of the first class in which an area proposed
             839      for annexation under this part is located shall, until the date of annexation, continue:
             840          (a) to levy and collect ad valorem property tax and other revenues from or pertaining to
             841      the area; and
             842          (b) except as otherwise agreed by the county legislative body and the municipal legislative
             843      body, to provide the same services to the area proposed for annexation as the county provided
             844      before the commencement of the annexation proceedings.
             845          (2) (a) The legislative body of [the] each county of the first class in which an area proposed
             846      for annexation is located shall, after annexation, share pro rata with the annexing municipality the
             847      taxes and service charges or fees levied and collected by the county under Section 17-34-3 during
             848      the year of the annexation if and to the extent that the annexing municipality provides, by itself or
             849      by contract, the same services for which the county levied and collected the taxes and service
             850      charges or fees.
             851          (b) The pro rata allocation of taxes under Subsection (2)(a) shall be based on the date of
             852      annexation, and the pro rata allocation of service charges and fees shall be based on the proportion
             853      of services related to the service charges and fees that remain to be rendered after annexation.
             854          Section 20. Repealer.
             855          This act repeals:
             856          Section 10-2-404, Certain annexation petitions invalid -- Certain petitions considered
             857      filed on May 5, 1997 -- Signatures on invalid petitions -- Special requirements for certain
             858      petitions.




Legislative Review Note
    as of 2-12-01 2:58 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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