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S.B. 23
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6 This act modifies provisions relating to Special Districts and Limited Purpose Local
7 Government Entities to rewrite and standardize annexation, withdrawal, and dissolution
8 provisions for specified special districts and for local districts. The act repeals inconsistent
9 and obsolete provisions and makes technical changes.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 17B-2-501, Utah Code Annotated 1953
13 17B-2-502, Utah Code Annotated 1953
14 17B-2-503, Utah Code Annotated 1953
15 17B-2-504, Utah Code Annotated 1953
16 17B-2-505, Utah Code Annotated 1953
17 17B-2-506, Utah Code Annotated 1953
18 17B-2-507, Utah Code Annotated 1953
19 17B-2-508, Utah Code Annotated 1953
20 17B-2-509, Utah Code Annotated 1953
21 17B-2-510, Utah Code Annotated 1953
22 17B-2-511, Utah Code Annotated 1953
23 17B-2-512, Utah Code Annotated 1953
24 17B-2-513, Utah Code Annotated 1953
25 17B-2-601, Utah Code Annotated 1953
26 17B-2-602, Utah Code Annotated 1953
27 17B-2-603, Utah Code Annotated 1953
28 17B-2-604, Utah Code Annotated 1953
29 17B-2-605, Utah Code Annotated 1953
30 17B-2-606, Utah Code Annotated 1953
31 17B-2-607, Utah Code Annotated 1953
32 17B-2-608, Utah Code Annotated 1953
33 17B-2-609, Utah Code Annotated 1953
34 17B-2-701, Utah Code Annotated 1953
35 17B-2-702, Utah Code Annotated 1953
36 17B-2-703, Utah Code Annotated 1953
37 17B-2-704, Utah Code Annotated 1953
38 17B-2-705, Utah Code Annotated 1953
39 17B-2-706, Utah Code Annotated 1953
40 17B-2-707, Utah Code Annotated 1953
41 17B-2-708, Utah Code Annotated 1953
42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 17B-2-501 is enacted to read:
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45 17B-2-501. Reserved.
46 This section is reserved.
47 Section 2. Section 17B-2-502 is enacted to read:
48 17B-2-502. Annexation of area outside local district -- Multiple areas -- No
49 requirement to be contiguous.
50 (1) An area outside the boundaries of a local district may be annexed to the local district
51 as provided in this part.
52 (2) The area proposed to be annexed:
53 (a) may consist of multiple noncontiguous areas; and
54 (b) need not be adjacent to the boundaries of the proposed annexing local district.
55 Section 3. Section 17B-2-503 is enacted to read:
56 17B-2-503. Annexation petition and resolution.
57 (1) The process to annex an area to a local district may be initiated by:
58 (a) a petition signed by the owners of private real property that:
59 (i) is located within the area proposed to be annexed;
60 (ii) covers at least 10% of the total private land area within the area proposed to be
61 annexed; and
62 (iii) is equal in value to at least 10% of the value of all private real property within the area
63 proposed to be annexed;
64 (b) (i) if the local district is located entirely within a single county:
65 (A) within or as close as practicable to the area proposed to be annexed; or
66 (B) at the office of the local district; or
67 (ii) if the local district is located within more than one county:
68 (A) within the county in which the area proposed to be annexed is located; and
69 (B) within or as close as practicable to the area proposed to be annexed;
70 (c) a petition signed by registered voters residing within the area proposed to be annexed
71 equal in number to at least 10% of the number of votes cast in the same area for the office of
72 governor at the last regular general election before the filing of the petition;
73 (d) a resolution adopted by the legislative body of each county whose unincorporated area
74 includes and each municipality whose boundaries include any of the area proposed to be annexed;
75 or
76 (e) if the area proposed to be annexed has been served by the proposed annexing local
77 district for at least 12 consecutive months immediately preceding adoption of the resolution, a
78 resolution adopted by the board of trustees of the local district that proposes to annex the area.
79 (2) Each petition and resolution under Subsection (1) shall:
80 (a) describe the area proposed to be annexed; and
81 (b) be accompanied by a map that shows the boundaries of the area proposed to be
82 annexed.
83 (3) The legislative body of each county and municipality that adopts a resolution under
84 Subsection (1)(c) shall, within five days of adopting the resolution, mail or deliver a copy of the
85 resolution to the board of trustees of the proposed annexing local district.
86 Section 4. Section 17B-2-504 is enacted to read:
87 17B-2-504. Petition requirements.
88 (1) Each petition under Subsections 17B-2-503 (1)(a) and (b) shall:
89 (a) indicate the typed or printed name and current residence address of each property
90 owner or registered voter signing the petition;
91 (b) if it is a property owner petition, indicate the address of the property as to which the
92 owner is signing the request;
93 (c) designate up to three signers of the petition as sponsors, one of whom shall be
94 designated the contact sponsor, with the mailing address and telephone number of each; and
95 (d) be filed with the board of trustees of the proposed annexing local district.
96 (2) A signer of a petition may withdraw, or once withdrawn, reinstate the signer's signature
97 at any time before the public hearing under Section 17B-2-506 by submitting a written withdrawal
98 or reinstatement with the board of trustees of the proposed annexing local district.
99 Section 5. Section 17B-2-505 is enacted to read:
100 17B-2-505. Petition certification.
101 (1) Within 30 days after the filing of a petition under Subsection 17B-2-503 (1)(a) or (b),
102 the board of trustees of the proposed annexing local district shall:
103 (a) with the assistance of officers of the county in which the area proposed to be annexed
104 is located from whom the board requests assistance, determine whether the petition meets the
105 requirements of Subsection 17B-2-503 (1)(a) or (b), as the case may be, Subsection 17B-2-503 (2),
106 and Subsection 17B-2-504 (1); and
107 (b) (i) if the board determines that the petition complies with the requirements, certify the
108 petition and mail or deliver written notification of the certification to the contact sponsor; or
109 (ii) if the board determines that the petition fails to comply with any of the requirements,
110 reject the petition and mail or deliver written notification of the rejection and the reasons for the
111 rejection to the contact sponsor.
112 (2) (a) If the board rejects a petition under Subsection (1)(b)(ii), the petition may be
113 amended to correct the deficiencies for which it was rejected and then refiled.
114 (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
115 used toward fulfilling the applicable signature requirement of the petition as amended under
116 Subsection (2)(a).
117 (3) The board shall process an amended petition filed under Subsection (2)(a) in the same
118 manner as an original petition under Subsection (1).
119 Section 6. Section 17B-2-506 is enacted to read:
120 17B-2-506. Public hearing.
121 (1) Except as provided in Section 17B-3-509 , the board of trustees of each local district
122 that certifies a petition under Subsection 17B-2-505 (1)(b), receives a resolution adopted under
123 Subsection 17B-2-503 (1)(c), or adopts a resolution under Subsection 17B-2-503 (1)(d) shall hold
124 a public hearing on the proposed annexation.
125 (2) Each public hearing under Subsection (1) shall be held:
126 (a) no later than 45 days after:
127 (i) for a public hearing relating to a petition filed under Subsection 17B-2-503 (1)(a) or (b),
128 certification of the petition under Subsection 17B-2-505 (1)(b);
129 (ii) for a public hearing relating to a resolution adopted under Subsection 17B-2-503 (1)(c)
130 or (d), adoption of the resolution;
131 (b) within the area proposed to be annexed;
132 (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
133 (d) for the purpose of allowing:
134 (i) the public to ask questions and obtain further information about the proposed
135 annexation and issues raised by it; and
136 (ii) any interested person to address the board regarding the proposed annexation.
137 (3) A quorum of the board of trustees of the proposed annexing local district shall be
138 present throughout each public hearing held under this section.
139 Section 7. Section 17B-2-507 is enacted to read:
140 17B-2-507. Notice of public hearing.
141 (1) Before holding a public hearing required under Section 17B-2-506 , the board of
142 trustees of each proposed annexing local district shall:
143 (a) mail notice of the public hearing and the proposed annexation to:
144 (i) each registered voter residing within the area proposed to be annexed, as determined
145 by the voter registration list maintained by the county clerk as of a date selected by the board of
146 trustees that is at least 20 but not more than 60 days before the public hearing; and
147 (ii) each owner of private real property as shown upon the county assessment roll last
148 equalized as of the previous December 31; and
149 (b) post notice of the public hearing and the proposed annexation in at least four
150 conspicuous places within the area proposed to be annexed, no less than five and no more than 30
151 days before the public hearing.
152 (2) Each notice required under Subsection (1) shall:
153 (a) describe the area proposed to be annexed;
154 (b) identify the proposed annexing local district;
155 (c) state the date, time, and location of the public hearing; and
156 (d) explain that property owners and registered voters within the area proposed to be
157 annexed may protest the annexation by filing a written protest to the local district board of trustees
158 within 30 days after the public hearing.
159 Section 8. Section 17B-2-508 is enacted to read:
160 17B-2-508. Protests -- Election.
161 (1) Except as provided in Section 17B-2-509 , an owner of private real property located
162 within and a registered voter residing within an area proposed to be annexed may protest an
163 annexation by filing a written protest with the board of trustees of the proposed annexing local
164 district.
165 (2) Each protest under Subsection (1) shall be filed within 30 days after the date of the
166 public hearing under Section 17B-3-506 .
167 (3) (a) Except as provided in Section 17B-2-509 , an election shall be held on the proposed
168 annexation if timely protests are filed by:
169 (i) the owners of private real property that:
170 (A) is located within the area proposed to be annexed; and
171 (B) covers at least 10% of the total private land area within the area proposed to be
172 annexed; or
173 (ii) registered voters residing within the area proposed to be annexed equal in number to
174 at least 10% of the number of votes cast in the same area for the office of governor at the last
175 regular general election before the filing of the petition.
176 (b) If a majority of registered voters residing within the area proposed to be annexed and
177 voting on the proposal vote:
178 (i) in favor of annexation, the board may complete the annexation by adopting a resolution
179 annexing the area; or
180 (ii) against annexation, the annexation process is terminated and the area proposed to be
181 annexed may not be the subject of an annexation effort under this part for two years.
182 Section 9. Section 17B-2-509 is enacted to read:
183 17B-2-509. Hearing, notice, and protest provisions do not apply for certain petitions.
184 Sections 17B-2-506 , 17B-2-507 , and 17B-2-508 do not apply if the process to annex an
185 area to a local district was initiated by:
186 (1) a petition under Subsection 17B-2-503 (1)(a) that was signed by the owners of private
187 real property that cover at least 67% of the total private land area within the area proposed to be
188 annexed; or
189 (2) a petition under Subsection 17B-2-503 (1)(b) that was signed by registered voters equal
190 in number to at least 67% of the number of votes cast in the area proposed to be annexed for the
191 office of governor at the last regular general election before the filing of the petition.
192 Section 10. Section 17B-2-510 is enacted to read:
193 17B-2-510. Resolution approving or rejecting the annexation -- Notice of annexation
194 -- When annexation complete.
195 (1) The board of trustees of a proposed annexing local district may adopt a resolution
196 approving or rejecting the annexation after:
197 (a) expiration of the protest period under Subsection 17B-2-507 (2), if sufficient protests
198 are not filed to require an election under Subsection 17B-2-507 (3); or
199 (b) the election under Subsection 17B-2-507 (3), if sufficient protests are filed to require
200 an election.
201 (2) (a) Within ten days after adoption of a resolution under Subsection (1) approving an
202 annexation, the board shall file a written notice of annexation to the State Tax Commission, the
203 state auditor, and the assessor of the county in which the annexed area is located.
204 (b) Each notice under Subsection (2)(a) shall be accompanied by a map showing the
205 boundaries of the local district including the newly annexed area, prepared and certified by a
206 licensed surveyor.
207 (3) Upon the board filing the notices required under Subsection (2), the annexation shall
208 be complete.
209 Section 11. Section 17B-2-511 is enacted to read:
210 17B-2-511. Annexation through municipal expansion.
211 (1) An area outside the boundaries of a local district shall be annexed to the local district
212 if:
213 (a) the boundaries of the local district entirely encompass a municipality;
214 (b) the municipality annexes the area under Title 10, Chapter 2, Part 4, Annexation;
215 (c) except as provided in Subsection (2), no part of the area is within the boundaries of an
216 independent special district under Title 17A, Chapter 2, Independent Special Districts, or another
217 local district that provides the same service as the proposed annexing local district.
218 (2) (a) Notwithstanding Subsection (1)(c), an area outside the boundaries of a local district
219 and within the boundaries of an independent special district or another local district that provides
220 the same service as the proposed annexing local district may be annexed by the proposed annexing
221 local district if:
222 (i) the conditions under Subsections (1)(a) and (b) are present; and
223 (ii) the proposed annexing local district and the independent special district or other local
224 district follow the same procedure as is required for a boundary adjustment, including both district
225 boards adopting a resolution approving the annexation of the area to the proposed annexing local
226 district and the withdrawal of that area from the other district.
227 (b) Upon both boards adopting a resolution under Subsection (2)(a)(ii), the board of the
228 annexing local district shall comply with the requirements of Subsection 17B-2-510 (2).
229 (c) Subsection 17B-2-510 (3) applies to an annexation under this section.
230 Section 12. Section 17B-2-512 is enacted to read:
231 17B-2-512. Annexation through expansion of retail district.
232 (1) For purposes of this section:
233 (a) "Retail" means, with respect to a service provided by a local district or independent
234 special district, that the service is provided directly to the ultimate user.
235 (b) "Wholesale" means, with respect to a service provided by a local district or
236 independent special district, that the service is not provided directly to the ultimate user but is
237 provided to a retail provider.
238 (2) An area outside the boundaries of a local district providing a wholesale service shall
239 be annexed to the local district if:
240 (a) the area is annexed by an independent special district or another local district that:
241 (i) acquires the wholesale service from the local district and provides it as a retail service;
242 and
243 (ii) is, before the annexation, located entirely within the boundaries of the local district;
244 and
245 (b) except as provided in Subsection (3), no part of the area is within the boundaries of an
246 independent special district under Title 17A, Chapter 2, Independent Special Districts, or another
247 local district that provides the same wholesale service as the proposed annexing local district.
248 (3) (a) Notwithstanding Subsection (2)(b), an area outside the boundaries of a local district
249 providing a wholesale service and located partly or entirely within the boundaries of an
250 independent special district or another local district that provides the same wholesale service may
251 be annexed to the local district if:
252 (i) the conditions under Subsection (2)(a) are present; and
253 (ii) the proposed annexing local district and the independent special district or other local
254 district follow the same procedure as is required for a boundary adjustment, including both district
255 boards adopting a resolution approving the annexation of the area to the proposed annexing local
256 district and the withdrawal of that area from the other district.
257 (b) Upon both boards adopting a resolution under Subsection (3)(a)(ii), the board of the
258 annexing local district shall comply with the requirements of Subsection 17B-2-510 (2).
259 (c) Subsection 17B-2-510 (3) applies to an annexation under this section.
260 Section 13. Section 17B-2-513 is enacted to read:
261 17B-2-513. Boundary adjustment -- Notice and hearing -- Protest -- Resolution
262 adjusting boundaries -- Notice of the adjustment.
263 (1) As used in this section, "affected area" means the area located within the boundaries
264 of one local district that will leave that local district and be included within the boundaries of
265 another local district because of the boundary adjustment.
266 (2) The boards of trustees of two or more local districts having common boundaries and
267 providing the same service may adjust their common boundaries as provided in this section.
268 (3) (a) The board of trustees of each local district intending to adjust a boundary that is
269 common with another local district shall:
270 (i) adopt a resolution indicating the board's intent to adjust a common boundary;
271 (ii) hold a public hearing on the proposed boundary adjustment no less than 60 days after
272 the adoption of the resolution under Subsection (3)(a)(i); and
273 (iii) (A) publish notice once a week for two successive weeks in a newspaper of general
274 circulation within the local district; or
275 (B) if there is no newspaper of general circulation within the local district, post notice in
276 at least four conspicuous places within the local district.
277 (b) The notice required under Subsection (3)(a)(iii) shall:
278 (i) state that the board of trustees of the local district has adopted a resolution indicating
279 the board's intent to adjust a boundary that the local district has in common with another local
280 district that provides the same service as the local district;
281 (ii) describe the affected area;
282 (iii) state the date, time, and location of the public hearing required under Subsection
283 (3)(a)(ii); and
284 (iv) state in conspicuous and plain terms that the board will adjust the boundaries unless,
285 at or before the public hearing under Subsection (3)(a)(ii), written protests to the adjustment are
286 filed with the board by:
287 (A) the owners of private real property that:
288 (I) is located within the affected area; and
289 (II) covers at least 25% of the total private land area within the affected area; or
290 (B) registered voters residing within the affected area equal in number to at least 25% of
291 the votes cast in the affected area for the office of governor at the last regular general election
292 before the filing of the protests.
293 (c) The first publication of the notice required under Subsection (3)(a)(iii)(A) shall be
294 within 14 days after the board's adoption of a resolution under Subsection (3)(a)(i).
295 (4) After the public hearing required under Subsection (3)(a)(ii), the board of trustees may
296 adopt a resolution adjusting the common boundary unless, at or before the public hearing, written
297 protests to the boundary adjustment have been filed with the board by:
298 (a) the owners of private real property that:
299 (i) is located within the affected area; and
300 (ii) covers at least 25% of the total private land area within the affected area; or
301 (b) registered voters residing within the affected area equal in number to at least 25% of
302 the votes cast in the affected area for the office of governor at the last regular general election
303 before the filing of the protests.
304 (5) A resolution adopted under Subsection (4) does not take effect until the board of each
305 local district whose boundaries are being adjusted has adopted a resolution under Subsection (4).
306 (6) (a) Within ten days after adoption of a resolution under Subsection (4), the board shall
307 file a written notice of the boundary adjustment to the State Tax Commission, the state auditor,
308 and the clerk and assessor of the county in which the affected area is located.
309 (b) Each notice under Subsection (6)(a) shall be accompanied by a map showing the
310 boundaries of the local district after the boundary adjustment, prepared and certified by a licensed
311 surveyor.
312 (7) Upon the filing of the notices required under Subsection (6) by the board of each local
313 district whose boundaries are being adjusted, the boundary adjustment shall be complete.
314 Section 14. Section 17B-2-601 is enacted to read:
315
316 17B-2-601. Withdrawal of area from local district.
317 An area within the boundaries of a local district may be withdrawn from the local district
318 as provided in this part.
319 Section 15. Section 17B-2-602 is enacted to read:
320 17B-2-602. Initiation of withdrawal process.
321 (1) The process to withdraw an area from a local district may be initiated by:
322 (a) a petition signed by the owners of private real property that:
323 (i) is located within the area proposed to be withdrawn; and
324 (ii) covers at least 25% of the total private land area within the area proposed to be
325 withdrawn;
326 (b) a petition signed by registered voters residing within the area proposed to be withdrawn
327 equal in number to at least 25% of the number of votes cast in the same area for the office of
328 governor at the last regular general election before the filing of the petition; or
329 (c) a resolution adopted by the board of trustees of the local district in which the area
330 proposed to be withdrawn is located.
331 (2) Each petition and resolution under Subsection (1) shall:
332 (a) describe the area proposed to be withdrawn; and
333 (b) be accompanied by a map that shows the boundaries of the area proposed to be
334 withdrawn.
335 Section 16. Section 17B-2-603 is enacted to read:
336 17B-2-603. Withdrawal petition requirements.
337 (1) Each petition under Subsections 17B-2-602 (1)(a) and (b) shall:
338 (a) indicate the typed or printed name and current residence address of each property
339 owner or registered voter signing the petition;
340 (b) if it is a property owner petition, indicate the address of the property as to which the
341 owner is signing the request;
342 (c) designate up to three signers of the petition as sponsors, one of whom shall be
343 designated the contact sponsor, with the mailing address and telephone number of each; and
344 (d) be filed with the board of trustees of the local district in which the area proposed to be
345 withdrawn is located.
346 (2) A signer of a petition may withdraw, or, once withdrawn, reinstate the signer's
347 signature at any time before the filing of the petition by submitting a written withdrawal or
348 reinstatement with the board of trustees of the local district in which the area proposed to be
349 withdrawn is located.
350 Section 17. Section 17B-2-604 is enacted to read:
351 17B-2-604. Withdrawal petition certification -- Amended petition.
352 (1) Within 30 days after the filing of a petition under Subsection 17B-2-602 (1)(a) or (b),
353 the board of trustees of the local district in which the area proposed to be withdrawn is located
354 shall:
355 (a) with the assistance of officers of the county in which the area proposed to be withdrawn
356 is located from whom the board requests assistance, determine whether the petition meets the
357 requirements of Subsection 17B-2-603 (1)(a) or (b), as the case may be, Subsection 17B-2-603 (2),
358 and Subsection 17B-2-604 (1); and
359 (b) (i) if the board determines that the petition complies with the requirements, certify the
360 petition and mail or deliver written notification of the certification to the contact sponsor; or
361 (ii) if the board determines that the petition fails to comply with any of the requirements,
362 reject the petition and mail or deliver written notification of the rejection and the reasons for the
363 rejection to the contact sponsor.
364 (2) (a) If the board rejects a petition under Subsection (1)(b)(i), the petition may be
365 amended to correct the deficiencies for which it was rejected and then refiled.
366 (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
367 used toward fulfilling the applicable signature requirement of the petition as amended under
368 Subsection (2)(a).
369 (3) The board shall process an amended petition filed under Subsection (2)(a) in the same
370 manner as an original petition under Subsection (1).
371 Section 18. Section 17B-2-605 is enacted to read:
372 17B-2-605. Public hearing -- Quorum of board required to be present.
373 (1) The board of trustees of each local district that certifies a petition under Subsection
374 17B-2-604 (1)(b) or adopts a resolution under Subsection 17B-2-602 (1)(c) shall hold a public
375 hearing on the proposed withdrawal.
376 (2) Each public hearing under Subsection (1) shall be held:
377 (a) no later than 45 days after certification of the petition under Subsection
378 17B-2-604 (1)(b) or adoption of a resolution under Subsection 17B-2-602 (1)(c), as the case may
379 be;
380 (b) within the area proposed to be withdrawn or, if it is not practicable to hold a public
381 hearing in that area, then within the local district at a location as close to the area proposed to be
382 withdrawn as practicable;
383 (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
384 (d) for the purpose of allowing:
385 (i) the public to ask questions and obtain further information about the proposed
386 withdrawal and issues raised by it; and
387 (ii) any interested person to address the board of trustees concerning the proposed
388 withdrawal.
389 (3) A quorum of the board of trustees of the local district in which the area proposed to
390 be withdrawn shall be present throughout each public hearing under this section.
391 Section 19. Section 17B-2-606 is enacted to read:
392 17B-2-606. Notice of hearing and withdrawal.
393 (1) Before holding a public hearing required under Section 17B-2-605 , the board of
394 trustees of each local district in which the area proposed to be withdrawn is located shall:
395 (a) publish notice of the public hearing and of the proposed withdrawal in a newspaper of
396 general circulation within the area proposed to be withdrawn; and
397 (b) post notice of the public hearing and of the proposed withdrawal in at least four
398 conspicuous places within the area proposed to be withdrawn, no less than five and no more than
399 30 days before the public hearing.
400 (2) Each notice required under Subsection (1) shall:
401 (a) describe the area proposed to be withdrawn;
402 (b) identify the local district in which the area proposed to be withdrawn is located; and
403 (c) state the date, time, and location of the public hearing.
404 Section 20. Section 17B-2-607 is enacted to read:
405 17B-2-607. Resolution approving or rejecting withdrawal -- Terms and conditions.
406 (1) (a) After the public hearing required under Subsection 17B-2-605 (1), the board of
407 trustees of the local district in which the area proposed to be withdrawn is located may adopt a
408 resolution:
409 (i) subject to Subsection (1)(b), rejecting the proposed withdrawal; or
410 (ii) subject to Subsection (2), approving the withdrawal of some or all of the area from the
411 local district.
412 (b) Each resolution rejecting a withdrawal shall include an explanation of the board's
413 reasons for the rejection.
414 (2) A board of trustees may not adopt a resolution withdrawing an area from the local
415 district unless the board determines that:
416 (a) (i) the area to be withdrawn does not and will not require the service that the local
417 district provides;
418 (ii) the local district will be unable to provide service to the area to be withdrawn for the
419 reasonably foreseeable future; or
420 (iii) the area to be withdrawn has obtained or may reasonably obtain from another source
421 the same service that is provided by the local district; and
422 (b) the withdrawal would not:
423 (i) result in a breach or default by the local district or adversely affect the ability of the
424 local district to make payments or perform any other material obligation under:
425 (A) an agreement with the United States or an agency of the United States;
426 (B) a note, bond, or other debt or obligation of the local district; or
427 (C) an agreement between the local district and an entity that has ensured, guaranteed, or
428 otherwise credit-enhanced a debt or revenue obligation of the local district;
429 (ii) create an island or peninsula of nondistrict territory within the local district that
430 adversely affects the local district's ability to provide service or significantly increases the cost of
431 providing service to the remainder of the local district;
432 (iii) jeopardize the viability of the remaining local district; and
433 (iv) require the local district to increase significantly the fees or property taxes it charges
434 in order to provide to the remainder of the district the same level of service provided before the
435 withdrawal.
436 (3) A resolution under Subsection (1)(b) may impose reasonable terms and conditions to
437 be met before withdrawal may occur including:
438 (a) a requirement that the owners of property located within the area proposed to be
439 withdrawn pay their proportionate share of outstanding district bonds by:
440 (i) making one or more payments in lieu of the taxes or assessments that would have been
441 imposed without the withdrawal; or
442 (ii) continuing to subject the property within the area proposed to be withdrawn to property
443 tax until the bonds are paid;
444 (b) a requirement that property within the area proposed to be withdrawn continue to be
445 subject to property tax by the local district to the extent and in those years necessary to prevent a
446 default on revenue bonds issued by the local district;
447 (c) the receipt of a firm commitment by a county, municipality, special district, or another
448 local district to provide to the area proposed to be withdrawn the service provided by the local
449 district; and
450 (d) a requirement that the local district and the entity that takes over providing service to
451 the withdrawn area reasonably agree to payment and other terms regarding the transfer to the other
452 entity of district facilities and improvements that the local district used before withdrawal to
453 provide service to the withdrawn area but no longer needs because of the withdrawal.
454 (4) If a resolution under Subsection (1)(b) imposes conditions under Subsection (3)(d):
455 (a) any issues upon which the local district and other entity are unable to reach agreement
456 shall be submitted to binding arbitration; and
457 (b) payments by the other entity to the local district for district facilities and improvements
458 shall be applied to pay any outstanding district bonds whose proceeds were used to construct the
459 facilities or improvements.
460 (5) If the board of trustees has not adopted a resolution under Subsection (1) within 90
461 days after certification of a petition under Subsection 17B-2-604 (1)(b) or adoption of a resolution
462 under Subsection 17B-2-602 (1)(c), the board shall be considered to have rejected the withdrawal.
463 Section 21. Section 17B-2-608 is enacted to read:
464 17B-2-608. Notice of withdrawal -- Effective date of withdrawal.
465 (1) Within ten days after adopting a resolution under Subsection 17B-2-607 (1)(a)(ii)
466 approving a withdrawal, the board of trustees shall file a written notice of the withdrawal to the
467 State Tax Commission, the state auditor, and the clerk and assessor of the county in which the
468 withdrawn area is located.
469 (2) Each notice under Subsection (1) shall be accompanied by a map showing the
470 boundaries of the local district after withdrawal, prepared and certified by a licensed surveyor.
471 (3) Upon the board filing the notices required under Subsection (1), the withdrawal shall
472 be complete.
473 Section 22. Section 17B-2-609 is enacted to read:
474 17B-2-609. Judicial review.
475 (1) Any affected person may seek judicial review of an approval or rejection of a
476 withdrawal under this part by filing an action in the district court of the county in which a majority
477 of the area proposed to be withdrawn is located.
478 (2) Each action under Subsection (1) shall be filed within 30 days after:
479 (a) the board's adoption of a resolution under Subsection 17B-2-607 (1); or
480 (b) if the board fails to adopt a resolution under Subsection 17B-2-607 (1), the date the
481 board is considered to have rejected the withdrawal under Subsection 17B-2-607 (5).
482 (3) A court in which an action under Subsection (1) is filed may overturn, in whole or in
483 part, the board of trustees decision approving or rejecting the withdrawal if the court finds the
484 board's decision to be arbitrary or capricious.
485 Section 23. Section 17B-2-701 is enacted to read:
486
487 17B-2-701. Definitions.
488 For purposes of this part:
489 (1) "Active" means, with respect to a local district, that the district is not inactive.
490 (2) "Administrative body" means:
491 (a) if the local district proposed to be dissolved has a duly constituted board of trustees in
492 sufficient numbers to form a quorum, the board of trustees; or
493 (b) except as provided in Subsection (2)(a):
494 (i) for a local district located entirely within a single municipality, the legislative body of
495 that municipality;
496 (ii) for a local district located in multiple municipalities within the same county or at least
497 partly within the unincorporated area of a county, the legislative body of that county; or
498 (iii) for a local district located within multiple counties, the legislative body of the county
499 whose boundaries include more of the local district than is included within the boundaries of any
500 other county.
501 (3) "Clerk" means:
502 (a) the board of trustees if the board is also the administrative body under Subsection
503 (2)(a);
504 (b) the clerk or recorder of the municipality whose legislative body is the administrative
505 body under Subsection (2)(a)(i); or
506 (c) the clerk of the county whose legislative body is the administrative body under
507 Subsection (2)(a)(ii) or (iii).
508 (4) "Inactive" means, with respect to a local district, that during the preceding three years
509 the district has not:
510 (a) provided any service or otherwise operated;
511 (b) received property taxes or user or other fees; and
512 (c) expended any funds.
513 Section 24. Section 17B-2-702 is enacted to read:
514 17B-2-702. Dissolution of local district.
515 A local district may be dissolved as provided in this part.
516 Section 25. Section 17B-2-703 is enacted to read:
517 17B-2-703. Initiation of dissolution process.
518 The process to dissolve a local district may be initiated by:
519 (1) for an inactive local district:
520 (a) a petition signed by the owners of private real property that:
521 (i) is located within the local district proposed to be dissolved; and
522 (ii) covers at least 25% of the private land area within the local district;
523 (b) a petition signed by registered voters residing within the local district proposed to be
524 dissolved equal in number to at least 25% of the number of votes cast in the district for the office
525 of governor at the last regular general election before the filing of the petition; or
526 (c) a resolution adopted by the administrative body; and
527 (2) for an active local district, a petition signed by the owners of 100% of the private real
528 property located within the local district proposed to be dissolved.
529 Section 26. Section 17B-2-704 is enacted to read:
530 17B-2-704. Petition requirements.
531 (1) Each petition under Subsection 17B-2-703 (1)(a), (b), or (2) shall:
532 (a) indicate the typed or printed name and current residence address of each property
533 owner or registered voter signing the petition;
534 (b) if it is a property owner petition, indicate the address of the property as to which the
535 owner is signing;
536 (c) designate up to three signers of the petition as sponsors, one of whom shall be
537 designated the contact sponsor, with the mailing address and telephone number of each; and
538 (d) be filed with the clerk.
539 (2) A signer of a petition to dissolve a local district may withdraw, or, once withdrawn,
540 reinstate the signer's signature at any time until 30 days after the public hearing under Section
541 17B-2-706 .
542 Section 27. Section 17B-2-705 is enacted to read:
543 17B-2-705. Petition certification.
544 (1) Within 30 days after the filing of a petition under Subsection 17B-2-703 (1)(a), (b), or
545 (2), the clerk shall:
546 (a) with the assistance of officers of the county in which the local district is located from
547 whom the clerk requests assistance, determine whether the petition meets the requirements of
548 Subsection 17B-2-704 (1); and
549 (b) (i) if the clerk determines that the petition complies with the requirements, certify the
550 petition and mail or deliver written notification of the certification to the contact sponsor; or
551 (ii) if the clerk determines that the petition fails to comply with any of the requirements,
552 reject the petition and mail or deliver written notification of the rejection and the reasons for the
553 rejection to the contact sponsor.
554 (2) (a) If the clerk rejects a petition under Subsection (1)(b)(ii), the petition may be
555 amended to correct the deficiencies for which it was rejected and then refiled.
556 (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
557 used toward fulfilling the applicable signature requirement of the petition as amended under
558 Subsection (2)(a).
559 (3) The clerk shall process an amended petition filed under Subsection (2)(a) in the same
560 manner as an original petition under Subsection (1).
561 Section 28. Section 17B-2-706 is enacted to read:
562 17B-2-706. Public hearing.
563 (1) For each petition certified under Section 17B-2-705 and each resolution adopted under
564 Subsection 17B-2-703 (1)(c), the administrative body shall hold a public hearing on the proposed
565 dissolution.
566 (2) Each public hearing under Subsection (1) shall be held:
567 (a) no later than 45 days after certification of the petition under Section 17B-2-705 or
568 adoption of a resolution under Subsection 17B-2-703 (1)(c), as the case may be;
569 (b) within the local district proposed to be dissolved;
570 (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
571 (d) for the purpose of allowing:
572 (i) the public to ask questions and obtain further information about the proposed
573 dissolution and issues raised by it; and
574 (ii) any interested person to address the administrative body concerning the proposed
575 dissolution.
576 (3) A quorum of the administrative body shall be present throughout each public hearing
577 under this section.
578 Section 29. Section 17B-2-707 is enacted to read:
579 17B-2-707. Notice of public hearing and of dissolution.
580 (1) Before holding a public hearing required under Section 17B-2-706 , the administrative
581 body shall:
582 (a) publish notice of the public hearing and of the proposed dissolution in a newspaper of
583 general circulation within the local district proposed to be dissolved; and
584 (b) post notice of the public hearing and of the proposed dissolution in at least four
585 conspicuous places within the local district proposed to be dissolved, no less than five and no more
586 than 30 days before the public hearing.
587 (2) Each notice required under Subsection (1) shall:
588 (a) identify the local district proposed to be dissolved and the service it was created to
589 provide; and
590 (b) state the date, time, and location of the public hearing.
591 Section 30. Section 17B-2-708 is enacted to read:
592 17B-2-708. Dissolution resolution -- Limitations on dissolution.
593 (1) After the public hearing required under Section 17B-2-706 and subject to Subsection
594 (2), the administrative body may adopt a resolution dissolving the local district.
595 (2) A resolution under Subsection (1) may not be adopted unless:
596 (a) any outstanding debt of the local district is:
597 (i) satisfied and discharged in connection with the dissolution; or
598 (ii) assumed by another governmental entity with the consent of all the holders of that debt
599 and all the holders of other debts of the local district;
600 (b) for a local district that has provided service during the preceding three years or
601 undertaken planning or other activity preparatory to providing service:
602 (i) another entity has committed to provide the same service to the area being served or
603 proposed to be served by the local district; and
604 (ii) all who are to receive the service have consented to the service being provided by the
605 other entity;
606 (c) adequate provision is made to ensure that any remaining assets of the local district
607 benefit property owners or others who have through taxes, fees, or assessments paid for the assets;
608 and
609 (d) all outstanding contracts to which the local district is a party are resolved through
610 mutual termination or the assignment of the district's rights, duties, privileges, and responsibilities
611 to another entity with the consent of the other parties to the contract.
Legislative Review Note
as of 11-16-00 9:56 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
Committee Note
The Political Subdivisions Interim Committee recommended this bill.
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